USA Statutes : oregon
Title : TITLE 28 PUBLIC FINANCIAL ADMINISTRATION
Chapter : Chapter 295 Depositories of Public Funds and Securities
As used in ORS
295.005 to 295.165, unless the context requires otherwise:
(1) “Certificate of participation” or “certificate” means a
nonnegotiable document issued by a pool manager to a public official.
(2) “Custodian bank” or “custodian” means the following
institutions designated by the depository bank for its own account:
(a) The Federal Reserve Bank designated to serve this state, or any
branch of that bank;
(b) The Federal Home Loan Bank designated to serve this state, or
any branch of that bank;
(c) Any insured institution or trust company, as those terms are
defined in ORS 706.008, that is authorized to accept deposits or transact
trust business in this state and that complies with ORS 295.008; and
(d) The fiscal agency of the State of Oregon, duly appointed and
acting as such agency pursuant to ORS 288.010 to 288.110.
(3) “Custodian’s receipt” or “receipt” means a document issued by a
custodian bank to a pool manager describing the securities deposited with
it by a depository bank to secure public fund deposits.
(4) “Depository bank” or “depository” means an insured institution
or trust company, as those terms are defined in ORS 706.008, a credit
union, as defined in ORS 723.006, the shares and deposits of which are
insured by the National Credit Union Share Insurance Fund, or a federal
credit union, if the institution, trust company or credit union:
(a) Maintains a head office or a branch in this state in the
capacity of an insured institution, trust company, credit union or
federal credit union; and
(b) In the case of an insured institution or trust company,
complies with ORS 295.008.
(5) “Pool manager” means:
(a) The State Treasurer;
(b) Any insured institution or trust company, as those terms are
defined in ORS 706.008, a credit union, as defined in ORS 723.006, the
shares and deposits of which are insured by the National Credit Union
Share Insurance Fund, or a federal credit union, if the institution,
trust company or credit union:
(A) Is authorized to accept deposits or transact trust business in
this state; and
(B) In the case of an insured institution or trust company,
complies with ORS 295.008;
(c) The Federal Reserve Bank designated to serve this state, or any
branch of that bank; or
(d) The Federal Home Loan Bank designated to serve this state, or
any branch of that bank.
(6) “Public funds” or “funds” means funds under the control or in
the custody of a public official by virtue of office.
(7) “Security” or “securities” means:
(a) Obligations of the United States, including those of its
agencies and instrumentalities;
(b) Obligations of the International Bank for Reconstruction and
Development;
(c) Bonds of any state of the United States:
(A) That are rated in one of the four highest grades by a
recognized investment service organization that has been engaged
regularly and continuously for a period of not less than 10 years in
rating state and municipal bonds; or
(B) Having once been so rated are ruled to be eligible securities
for the purposes of ORS 295.005 to 295.165, notwithstanding the loss of
such rating;
(d) Bonds of any county, city, school district, port district or
other public body in the United States payable from ad valorem taxes
levied generally on substantially all property within the issuing body
and that meet the rating requirement or are ruled to be eligible
securities as provided in paragraph (c) of this subsection;
(e) Bonds of any county, city, school district, port district or
other public body issued pursuant to the Constitution or statutes of the
State of Oregon or the charter or ordinances of any county or city within
the State of Oregon, if the issuing body has not been in default with
respect to the payment of principal or interest on any of its bonds
within the preceding 10 years or during the period of its existence if
that is less than 10 years;
(f) Bond anticipation notes issued, sold or assumed by an authority
under ORS 441.560;
(g) One-family to four-family housing mortgage loan notes related
to property situated in the State of Oregon, which are owned by a
depository bank, no payment on which is more than 90 days past due, and
which are eligible collateral for loans from the Federal Reserve Bank of
San Francisco under section 10(b) of the Federal Reserve Act and
regulations thereunder;
(h) Bonds, notes, letters of credit or other securities or evidence
of indebtedness constituting the direct and general obligation of a
federal home loan bank or Federal Reserve bank;
(i) Debt obligations of domestic corporations that are rated in one
of the three highest grades by a recognized investment service
organization that has been engaged regularly and continuously for a
period of not less than 10 years in rating corporate debt obligations;
(j) Collateralized mortgage obligations and real estate mortgage
investment conduits that are rated in one of the two highest grades by a
recognized investment service organization that has been engaged
regularly and continuously for a period of not less than 10 years in
rating corporate debt obligations; and
(k) One-family to four-family housing mortgages that have been
secured by means of a guarantee as to full repayment of principal and
interest by an agency of the United States Government, including the
Government National Mortgage Association, the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation.
(8) “Public official” means each officer or employee of this state
or any agency, political subdivision or public or municipal corporation
thereof who by law is made the custodian of or has control of any public
funds.
(9) “Value” means the current market value of securities. [1967
c.451 §1; 1973 c.157 §4; 1973 c.288 §2; 1973 c.378 §1; 1973 c.797 §426;
1975 c.515 §8; 1981 c.440 §2; 1983 c.104 §3; 1983 c.456 §4; 1985 c.439
§1; 1985 c.565 §51; 1987 c.524 §1; 1989 c.536 §1; 1991 c.352 §6; 1993
c.74 §1; 1993 c.229 §23; 1993 c.318 §12; 1997 c.631 §447; 1999 c.311 §1;
1999 c.412 §3; 2003 c.195 §17; 2003 c.405 §2; 2005 c.443 §§32,32a](1)(a) An insured institution or trust company described in
ORS 295.005 (2)(c) may not be a custodian bank under ORS 295.005 to
295.165, unless it certifies in writing to the State Treasurer that it
will furnish the reports required under ORS 714.075 to the Director of
the Department of Consumer and Business Services.
(b) With the approval of the State Treasurer, a depository bank may
be a custodian bank with respect to its own securities.
(2) An insured institution or trust company described in ORS
295.005 (4) may not be a depository bank under ORS 295.005 to 295.165,
unless it:
(a) Certifies in writing to the State Treasurer that it will
furnish the reports required under ORS 714.075 to the Director of the
Department of Consumer and Business Services; and
(b) Except as provided in subsection (3) of this section, enters
into a written agreement with the State Treasurer and a custodian that
pledges the securities deposited by the insured institution or trust
company with the custodian as collateral for deposits of public funds
held by the insured institution or trust company. The agreement must be
approved by the board of directors or loan committee of the insured
institution or trust company and shall be continuously maintained as a
written record of the insured institution or trust company.
(3) An insured institution or trust company described in ORS
295.005 (4) may be a depository bank under ORS 295.005 to 295.165 without
entering into the agreement described in subsection (2) of this section
if the insured institution or trust company does not hold any funds on
deposit for a public official that exceed the limits specified in ORS
295.025 for that type of depository. The provisions of ORS 295.015,
295.018, 295.035, 295.045, 295.055, 295.065, 295.105 and 295.185 do not
apply to an insured institution or trust company that is a depository
bank under this subsection.
(4) An insured institution or trust company may not be a pool
manager with respect to securities that it deposits with its custodians
as collateral for the security of public fund deposits, and an insured
institution or trust company may not be a pool manager unless it
certifies in writing to the State Treasurer that it will furnish the
reports required under ORS 714.075 to the Director of the Department of
Consumer and Business Services. [2005 c.112 §3] (1) The
following public funds are not subject to the provisions of ORS 295.005
to 295.165:
(a) Funds that are deposited for the purpose of paying principal,
interest or premium, if any, on bonds, like borrowings and related costs
or securing a borrowing related to an agreement for exchange of interest
rates entered into under ORS 287.025.
(b) Funds that are invested in authorized investments under
provisions of law other than ORS 295.005 to 295.165. Funds invested under
ORS 293.701 to 293.820 are invested in authorized investments for
purposes of this subsection from the time the funds are transferred by
the State Treasurer to a third party under the terms of a contract for
investment or administration of the funds that requires such a transfer
until the time the funds are returned to the treasurer or paid to another
party under the terms of the contract.
(c) Negotiable certificates of deposit purchased by the State
Treasurer under ORS 293.736 or by an investment manager under ORS 293.741.
(2) Notwithstanding subsection (1) of this section, funds deposited
by a custodial officer under ORS 294.035 (3)(d) are subject to the
provisions of ORS 295.005 to 295.165. [2005 c.112 §4; 2005 c.443 §32c] Except as
provided in ORS 295.018:
(1) Each depository throughout the period of its possession of
public fund deposits shall maintain on deposit with its custodians, at
its own expense, securities having a value not less than 25 percent of
the certificates of participation issued by its pool manager.
(2) The depository may deposit other eligible securities with its
custodian and withdraw from deposit securities theretofore pledged to
secure deposits of public funds, if the remaining securities have a value
not less than 25 percent of outstanding certificates of participation of
the pool manager. The pool manager shall execute such releases and
surrender such custodian’s receipts as are appropriate to effect
substitutions and withdrawals of excess pledged securities. [1967 c.451
§2; 1975 c.515 §3](1) The State Treasurer may require any
depository bank during any period when it has in its possession public
fund deposits to maintain on deposit with its custodians securities
having a value not less than 110 percent of the certificates of
participation issued by its pool manager. The increase in collateral
shall be ordered upon the advice of the Director of the Department of
Consumer and Business Services. If the depository bank is a federally
chartered savings and loan association, in giving its advice to the State
Treasurer the director may rely exclusively on information provided to
the director by federal regulatory agencies and by the association on
forms prescribed by the director; as a condition of being analyzed and
reviewed by the director, a federal association shall agree and consent
to provide the director with accurate, pertinent and timely information.
(2) Failure of the director to inform the State Treasurer of the
condition of any depository does not give any public depositor any right
or impose any liability on the director. The State Treasurer shall not be
liable to any public depositor or to any depository bank for increasing
or not increasing the collateral requirement as authorized in subsection
(1) of this section.
(3) Any depository bank notified by the State Treasurer of the
increased collateral requirement shall comply with the order within 10
business days by increasing the collateral in the same manner as required
for the initial deposit of collateral in ORS 295.015. The bank shall
notify the State Treasurer and the pool manager of its compliance by
supplying copies of the custodian’s receipts for the increased collateral.
(4) If any depository bank notified by the State Treasurer of an
increased collateral requirement fails to notify the State Treasurer of
compliance therewith within 10 business days, the State Treasurer shall
immediately notify the director of the failure and shall send notice to
the pool manager and all public depositors served by that depository bank
of its failure to comply.
(5) A depository bank described in subsection (4) of this section
shall accept no further public deposits.
(6) Financial institutions named in records received or compiled by
the State Treasurer pursuant to the provisions of this section shall be
exempt from public disclosure unless the public interest requires
disclosure in the particular instance. [1975 c.515 §2; 1981 c.440 §1;
1985 c.762 §182; 1987 c.373 §§28a,28b; 1987 c.554 §1; 1989 c.171 §41;
1991 c.327 §1]
Notwithstanding any other provision of this chapter, when a bank, mutual
savings bank or savings and loan association receives moneys of the
Deferred Compensation Fund established under ORS 243.411 from the state
for deposit or investment, the institution shall not have to maintain the
collateral required under this chapter for those deferred compensation
moneys. [1977 c.721 §15; 1997 c.179 §27](1) Any public official may retain undeposited
such reasonable cash working fund as is fixed by the governing body of
the political subdivision or public corporation for which the public
official acts. Except to the extent of such cash working fund, each
public official shall deposit public funds in the custody or control of
the public official in one or more depositories currently qualified
pursuant to ORS 295.005 to 295.165. The public official may not have on
deposit in any one depository bank that is a credit union or federal
credit union an aggregate sum in excess of $100,000. With respect to
other depository banks, the public official, without procuring
certificates of participation issued by the pool manager of the
depository in an amount equal to the excess deposit, shall not have on
deposit in any one depository bank and its branches a sum in excess of:
(a) The amount insured by the Federal Deposit Insurance
Corporation; or
(b) For any amount over the amount insured by the Federal Deposit
Insurance Corporation, the amount insured or guaranteed by private
deposit insurance or a deposit guaranty bond issued by an insurance
company rated A- or better by a recognized insurance rating service.
(2) Whenever a public official holds a certificate of participation
issued by a pool manager in an amount exceeding the amount required by
subsection (1) of this section, upon the written request of the
depository bank the public official shall surrender it to the pool
manager or direct the pool manager in writing to cancel it in whole or in
a designated part.
(3) Compliance with ORS 295.005 to 295.165 relieves the public
official of personal liability on account of the loss of the public funds
in the custody or control of the public official. [1967 c.451 §3; 1973
c.288 §3; 1999 c.48 §1; 2003 c.405 §6](1) A public official may deposit public funds in an
amount in excess of the amount allowed in ORS 295.025 without procuring a
certificate of participation if the funds are initially deposited into a
depository in Oregon and the Oregon depository participates in a program
through which:
(a) The Oregon depository arranges for deposit of the funds into
one or more certificates of deposit or time deposits issued by other
financial institutions in the United States;
(b) Each certificate of deposit or time deposit is fully insured by
the Federal Deposit Insurance Corporation;
(c) The Oregon depository administers the funds on behalf of the
public official; and
(d) Other financial institutions participating in the program place
funds into the Oregon depository in an amount at least equal to the
amount deposited into the Oregon depository by the public official for
purposes of the program.
(2) The provisions of ORS 294.035 and 295.005 requiring deposit of
public funds into depositories that have offices or branches in Oregon do
not apply to certificates of deposit or time deposits that an Oregon
depository arranges for under the provisions of the program described in
this section.
(3) As used in this section, “public funds” and “public official”
have the meanings given those terms in ORS 295.005. [2005 c.58 §1]Note: 295.027 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 295 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation. Upon
receipt of securities from the depository bank, the custodian bank shall
issue to the pool manager designated by the depository a custodian’s
receipt describing the securities. [1967 c.451 §4]Each depository bank shall designate one or more pool managers
as provided in ORS 295.005 to 295.165; but it shall designate only one
pool manager to function with respect to the public fund deposits and the
security therefor of a single public official. If the depository elects
to change pool managers, the public official shall surrender certificates
of participation issued by the former pool manager in exchange for
certificates of like amount issued by the successor pool manager, and the
former pool manager shall cause the custodian to deliver to the successor
pool manager custodian’s receipts for security no longer required to
support its outstanding certificates of participation. Such transactions
may be arranged by escrows or otherwise, as the parties agree. [1967
c.451 §5]Each depository bank shall keep on file with the
State Treasurer the names and addresses of each of its custodian banks
and pool managers. [1967 c.451 §6] Each pool manager shall:
(1) Maintain an accurate inventory of the securities of each
depository bank described in the custodian’s receipts transmitted to it
from custodian banks, and adjust the inventory to reflect withdrawals and
substitutions of securities previously inventoried.
(2) Appraise the value of the securities added to and withdrawn
from the inventory of the depository bank, and appraise the value of the
entire inventory of the depository on October 1 of each year and at such
other times as it is directed to do so by the State Treasurer.
(3) Issue certificates of participation to public officials in
amounts designated by the depository bank and, upon the direction of the
depository bank and the written consent of the public official to whom it
is issued, reduce, modify or cancel a certificate.
(4) Notify in writing holders of certificates of participation in
the collateral of a depository bank whenever, after 10 days’ notice to
the depository bank, the value of the securities continues to be less
than 25 percent of outstanding certificates.
(5) Notify the State Treasurer of the occurrence whenever a bond in
the inventory of a depository bank loses its rating requirement provided
in ORS 295.005 (7)(c) and (d). [1967 c.451 §7; 1973 c.378 §2; 1975 c.515
§4] If, in
the opinion of the State Treasurer, market conditions so indicate, the
State Treasurer may require certification of collateral value in
accordance with ORS 295.065 at other times throughout the year. The
decision to request a special certification shall be solely at the
discretion of the State Treasurer. [1967 c.451 §8](1) The deposit of securities by a
depository bank with its custodian pursuant to ORS 295.005 to 295.165
constitutes consent by the depository to the disposition of the
securities in accordance with this section.
(2) When a depository is closed by order of the Director of the
Department of Consumer and Business Services or the Comptroller of the
Currency, the State Treasurer shall:
(a) Demand and receive from the pool manager the custodian’s
receipts; and
(b) Demand and receive from the custodian the securities pledged to
secure deposits of public funds and liquidate in an orderly manner the
securities or such thereof as the State Treasurer may determine advisable
at public or private sale and distribute the proceeds as provided in this
section.
(3) Each public official shall advise the State Treasurer of the
amount of the public official’s deposits in the defaulted depository
bank, and the State Treasurer shall proceed to determine the total amount
of the claims payable out of the collateral of the depository. The claim
of a public official for purposes of this section shall be the lesser of:
(a) The amount of the public official’s deposits plus interest to
the date the funds are distributed to the public official at the rate the
depository agreed to pay on the funds reduced by the portion thereof that
is insured by the Federal Deposit Insurance Corporation; or
(b) The amount of the public official’s certificates of
participation plus interest on the public official’s deposits to the date
the funds are distributed to the public official at the rate the
depository agreed to pay on the funds.
(4) The State Treasurer shall distribute the net proceeds of the
collateral, to the extent that they do not exceed the total claims, among
the public officials entitled thereto in proportion to their respective
claims. The State Treasurer shall remit to the depository bank any of its
collateral or the proceeds thereof in excess of the amount so
distributable to public officials.
(5) If the net proceeds of the collateral are inadequate, after all
other available sources are applied, to meet the total claims of the
public officials entitled thereto, the public officials may make claims
against the depository bank as general creditors.
(6) The State Treasurer, in accordance with ORS chapter 183, shall
adopt rules to carry out this section. [1967 c.451 §10; 1973 c.438 §1;
1975 c.515 §5; 1983 c.296 §10; 1985 c.762 §183; 1999 c.311 §2] (1) Any depository may offer in writing to
accept from the State Treasurer time deposits without limitation in
amount or in an aggregate amount therein stated and to pay interest on
the time deposits at rates specified in the offer. The offer shall be a
continuing offer until it is modified or withdrawn by notice in writing
delivered or mailed by registered or certified mail to the State
Treasurer. While the offer continues in effect, the depository is bound
to accept upon the terms therein specified time deposits tendered by the
State Treasurer.
(2) Any funds deposited by the State Treasurer on a time basis
shall be deposited at the highest rate of interest available for the
amount and term of the deposit.
(3) The State Treasurer shall establish time deposits so as to make
the deposited moneys as productive as possible, and shall exercise the
judgment and care which persons of prudence, discretion and intelligence
exercise in the management of their own affairs, considering the probable
income and the probable safety of the moneys deposited, including the
distribution of the deposits among depositories so as to minimize the
possibility of loss of moneys. [1967 c.451 §11; 1989 c.319 §1](1)(a)
The State Treasurer may deposit moneys not required to meet current
demands for a term not to exceed two years at such interest rates and
upon such conditions as to withdrawals of such moneys as may be agreed
upon between the State Treasurer and any depository bank or banks in the
state.
(b) All interest received on deposits of moneys under this
subsection shall accrue to and become a part of the General Fund as
required by ORS 293.140.
(2)(a) The State Treasurer may deposit moneys of any of the funds
mentioned in ORS 293.701 (2), except moneys deposited under subsection
(1) of this section, at such interest rates and upon such conditions as
to withdrawals of such moneys as may be agreed upon between the State
Treasurer and any depository bank or banks in the state.
(b) Notwithstanding ORS 293.140, all interest received on deposits
of moneys under this subsection shall accrue to and become a part of the
fund the moneys of which were deposited.
(3) The State Treasurer may retain on hand in the state vault or in
a depository, the sum the treasurer considers necessary as a reserve for
the purpose of paying the current obligations and appropriations of the
state. [1967 c.451 §12b; 1981 c.189 §1; 1989 c.319 §2]
(1) The State Treasurer may designate such banks as are necessary within
this state as depositories for the collection of drafts, checks,
certificates of deposit and coupons received by the State Treasurer on
account of any claim due the state.
(2) The State Treasurer, on receipt of any draft, check or
certificate of deposit, on account of a claim due the state, may place it
in a depository for collection. The depository shall collect it without
delay and shall notify the State Treasurer when collected. The
compensation to be paid by the depository shall be fixed by the State
Treasurer upon the best terms obtainable for the state. [1967 c.451 §13;
1981 c.189 §2; 1991 c.6 §1]Nothing in ORS 295.005 to 295.165 deprives the Department
of State Lands of the power to invest or dispose of the funds derived
from the sale of public lands as provided by law. [1967 c.451 §14](1) In selecting banks or
trust companies to act as depositories, public officials are not limited
to the appointment of banks or trust companies in any particular
locality. However, if banks or trust companies are engaged in business at
an office or offices within the corporate limits of the political
subdivision or public corporation and qualify to receive the funds, such
depositories shall be given preference. If there is more than one such
local qualifying depository, the depositing public official shall
apportion the funds in the hands of the public official to such
depositories in a manner that is equitable and in the best interests of
the political subdivision or public corporation.
(2) The depositories shall be required to pay to the political
subdivision or public corporation upon deposits evidenced by certificates
of deposit or deposits that by agreement may not be withdrawn on less
than 30 days’ notice, interest at such rate or rates as shall be agreed
upon between the governing body of the political subdivision or public
corporation and the depository.
(3) All interest received on deposits of moneys under this section
shall accrue to and become a part of the fund the moneys of which were
deposited.
(4) This section does not apply to the State Treasurer. [1967 c.451
§15; 2005 c.22 §225]
Any public official may deposit moneys coming into the hands of the
public official in connection with official duties with the treasurer of
the political subdivision or public corporation concerned and obtain a
receipt therefor. [1967 c.451 §16] The
expense of the State Treasurer in acting as a pool manager shall be paid
to the State Treasurer by the depository bank using the services as pool
manager. The State Treasurer, under rules and regulations to be adopted
by the State Treasurer pursuant to ORS chapter 183, shall deposit funds
so received and may require advance deposits to be made by any depository
bank. The moneys credited pursuant to this section are continuously
appropriated for the payment of expenses incurred in the administration
of ORS 295.005 to 295.165. [1967 c.451 §30; 1989 c.569 §5]Notwithstanding the provisions of ORS 295.005 to
295.165, securities described in ORS 295.005 (7)(g) shall be maintained
as collateral for public deposits at the value determined by the State
Treasurer. [1983 c.456 §6](1) Notwithstanding any other provision of ORS chapter 295,
the Department of Higher Education, with the approval of the State
Treasurer, may deposit funds in a financial institution in a foreign
country, if the circumstances under which the funds are to be used render
it impracticable to keep the funds in a domestic financial institution or
if the terms of a grant, gift or contract require that the funds be kept
in a foreign country.
(2) Notwithstanding any other provision of this chapter, to the
extent estimated to be necessary to fund operations or activities for one
biennium of the State of Oregon in a foreign country, the State Treasurer
may deposit funds in a financial institution in a foreign country.
(3) When funds are deposited in a financial institution in a
foreign country pursuant to subsection (1) or (2) of this section, the
institution shall not be required to maintain collateral as provided in
ORS 295.015. Reasonable and prudent measures to protect the public funds
from loss shall be exercised to the extent permitted under the laws of
the foreign country.
(4) The State Treasurer shall report to the Legislative Assembly
biennially on the amounts of deposits in foreign countries, and the
operation and activities funded by such deposits. The report shall be
submitted to the offices of the President of the Senate and the Speaker
of the House of Representatives and shall be referred by each of them to
appropriate standing committees other than committees concerned with
budgets of the State Treasurer or the activity or operation so funded.
[1983 c.374 §§1,2; 1989 c.399 §1](1) Notwithstanding any other law:
(a) The State Treasurer may establish demand deposit accounts in
financial institutions outside this state for the purpose of accepting
deposits of funds related to the state investments in the geographical
areas respectively serviced by the institutions.
(b) Moneys paid to or collected by a financial institution or other
entity under an agreement to provide loan servicing for a state agency,
political subdivision or public corporation may be deposited in accounts
in financial institutions outside this state for the purpose of:
(A) Accepting payments of loan principal and interest;
(B) Accepting and holding escrow funds;
(C) Accepting and holding funds required to be held in reserve with
or on behalf of the state agency, political subdivision or public
corporation; or
(D) Collecting and holding any other moneys required by the
agreement for loan servicing to be collected or held by the financial
institution or other entity prior to remittance to the state agency,
political subdivision or public corporation or a third party.
(c) Moneys held by a trustee or escrow agent pursuant to a bond
indenture, certificate of participation indenture or escrow agreement
with a state agency, political subdivision or public corporation in this
state that are public funds, as defined in ORS 295.005, may be deposited
in accounts in financial institutions outside this state.
(2) The State Treasurer shall establish the demand deposit accounts
described in subsection (1)(a) of this section in accordance with rules
adopted pursuant to ORS 183.310 to 183.410 that, to the extent
practicable, provide that deposits of state investment funds are
collateralized and managed in the manner otherwise required for deposits
of public funds in the state under ORS 295.005 to 295.165.
(3) When accounts are established for a state agency, political
subdivision or public corporation under subsection (1)(b) or (c) of this
section, the state agency, political subdivision or public corporation in
the agreement to provide loan servicing or the bond indenture,
certificate of participation indenture or escrow agreement shall require
that:
(a) All moneys deposited in the accounts, to the extent
practicable, must be collateralized at the same level and managed in the
same manner otherwise required for deposits of public funds in this state
under ORS 295.005 to 295.165;
(b) Compliance with the collateralization and management
requirements of this subsection be monitored and evidence of compliance
that is satisfactory to the state agency, political subdivision or public
corporation be periodically supplied to the state agency, political
subdivision or public corporation; and
(c) Failure by a financial institution or other entity to maintain
deposits collateralized and managed as required by this subsection shall
constitute a breach of the applicable loan servicing agreement, bond
indenture, certificate of participation indenture or escrow agreement.
[1993 c.69 §1; 1995 c.259 §5; 1997 c.171 §15]
