2007 Oregon Code - Chapter 286a :: Chapter 286A - STATE BORROWING
Chapter 286A
— State Borrowing
2007 EDITION
STATE BORROWING
PUBLIC BORROWING
DEFINITIONS
286A.001Â Definitions
for ORS chapter 286A
DUTIES OF STATE TREASURER
286A.005Â Authority
of State Treasurer to issue bonds
286A.010Â Information
required by State Treasurer
286A.014Â Fees
and expenses of State Treasurer; rules
286A.015Â Payment
of expenses of State Treasurer
286A.016Â Disposition
of charges
AUTHORITY FOR BORROWING
286A.025Â Issuance
and sale of bonds
286A.035Â Bond
budget authorization
286A.045Â Borrowing
for current expenses
286A.050Â Short
Term Borrowing Account; sources; uses
286A.055Â Report
by State Treasurer on amount of bonds issued, amounts repaid, costs and
interest earned
286A.095Â Compliance
with constitutional or statutory debt limit
ADMINISTRATION OF BOND PROGRAMS
286A.100Â Definitions
for ORS 286A.100 and 286A.102
286A.102Â Lien
of a pledge; Uniform Commercial Code
286A.110Â Agreements
for exchange of interest rates
286A.120Â Credit
enhancement devices
286A.130Â Bond
counsel services; financial advisory services; Public Contracting Code
286A.132Â Debt-related
advisory services
286A.140Â State
taxation of bond interest
286A.145Â Federal
taxation of bond interest; rules
286A.160Â Exception
to expenditure limits for repaying obligations; administrative limits; reports
286A.185Â Cancellation,
purchase or redemption of bonds; lost or destroyed evidence of bonds; rules
286A.190Â Disclosure
of bond ownership
286A.195Â Financial
audit of bond programs
286A.250Â State
Debt Policy Advisory Commission; membership; compensation; quorum; meetings;
personnel
286A.255Â Functions
and duties of commission
LOTTERY BONDS
286A.560Â Definitions
for ORS 286A.560 to 286A.585 and 327.700 to 327.711
286A.563Â Purposes;
nature of lottery bonds
286A.566Â Requirements
for legislation authorizing lottery bonds
286A.570Â Lottery
Bond Fund; purposes
286A.573Â Lottery
Bond Administrative Fund; purposes
286A.576Â Allocation
of lottery moneys for lottery bonds; priorities
286A.578Â Litigation
challenging legality of Oregon State Lottery
286A.580Â Issuance
of lottery bonds; refunding bonds; bond covenants; reserves for bonds;
appropriation to maintain reserves; credit enhancements
286A.585Â Lottery
bonds for community sports facilities; use of proceeds of bonds
PRIVATE ACTIVITY BONDS
286A.605Â Definitions
for ORS 286A.605 to 286A.625
286A.615Â Private
Activity Bond Committee; purpose of private activity bonding; rules
286A.620Â Private
activity bond volume cap
286A.625Â State
Treasurer to maintain records
BACCALAUREATE BONDS
286A.700Â Authority
to issue baccalaureate bonds
PENSION LIABILITY BONDS
286A.730Â Definitions
for ORS 286A.730 to 286A.750
286A.735Â Authority
of State Treasurer to issue pension liability bonds; nature and purpose of
bonds; refunding bonds
286A.740Â Article
XI-O Bond Fund; purposes
286A.745Â Article
XI-O Bond Administration Fund; purposes
286A.750Â Terms
and conditions of pension liability bonds
SEISMIC REHABILITATION BONDS
(Public Education Buildings)
286A.760Â Definitions
for ORS 286A.760 to 286A.772
286A.762Â Authority
of State Treasurer to issue bonds
286A.764Â Article
XI-M Bond Fund; purposes
286A.766Â Article
XI-M Bond Administration Fund; purposes
286A.768Â Education
Seismic Fund; purposes; rules
286A.772Â Payment
of bond-related costs
(Emergency Services Buildings)
286A.780Â Definitions
for ORS 286A.780 to 286A.792
286A.782Â Authority
of State Treasurer to issue bonds
286A.784Â Article
XI-N Bond Fund; purposes
286A.786Â Article
XI-N Bond Administration Fund; purposes
286A.788Â Emergency
Services Seismic Fund; purposes; rules; fees
286A.792Â Payment
of bond-related costs
     Note: Sections 233 to 237, chapter 783, Oregon
Laws 2007, provide:
     Sec.
233. Unless an election is
made under section 236 of this 2007 Act:
     (1) Sections 2 to 11, 15 to 26, 31 and 33
of this 2007 Act and the amendments to ORS 286.555, 286.605, 286.615, 286.645,
286.560, 286.563, 286.566, 286.580, 286.585, 286.750, 286.762, 286.782,
286.768, 293.175, 293.177 and 328.346 by sections 13, 14, 27 to 29, 32, 35 to
40 and 110 to 112 of this 2007 Act apply to bonds approved for issuance by the
State Treasurer on or after the effective date of this 2007 Act [January 1,
2008].
     (2) Sections 42 to 59 and 64 to 70 of this
2007 Act and the amendments to ORS 287.030, 287.032, 287.034 and 287.040 by
sections 60 to 63 of this 2007 Act apply to bonds approved for issuance by the
governing body of a public body on or after the effective date of this 2007
Act.
     (3) The amendments to statutes by sections
71 to 232e of this 2007 Act apply to bonds approved for issuance by the State
Treasurer or the governing body of a public body, as appropriate, on or after
the effective date of this 2007 Act. [2007 c.783 §233]
     Sec.
234. (1) ORS 223.905,
223.910, 223.915, 223.920, 223.925, 285B.347, 286.010, 286.020, 286.031,
286.033, 286.036, 286.038, 286.041, 286.051, 286.056, 286.058, 286.061,
286.066, 286.071, 286.078, 286.105, 286.115, 286.125, 286.135, 286.145,
286.505, 286.507, 286.515, 286.525, 286.535, 286.545, 286.635, 286.700,
286.705, 286.710, 286.715, 286.720, 286.770, 286.790, 287.001, 287.003,
287.004, 287.006, 287.007, 287.008, 287.012, 287.014, 287.016, 287.018,
287.020, 287.022, 287.025, 287.028, 287.029, 287.033, 287.036, 287.038,
287.042, 287.045, 287.049, 287.052, 287.053, 287.054, 287.055, 287.056,
287.058, 287.062, 287.064, 287.066, 287.069, 287.070, 287.072, 287.074,
287.075, 287.140, 287.142, 287.144, 287.146, 287.202, 287.204, 287.206,
287.208, 287.210, 287.212, 287.214, 287.216, 287.218, 287.220, 287.252,
287.254, 287.256, 287.258, 287.260, 287.262, 287.264, 288.010, 288.020,
288.030, 288.040, 288.050, 288.060, 288.070, 288.090, 288.100, 288.110,
288.120, 288.150, 288.155, 288.160, 288.162, 288.165, 288.410, 288.420,
288.430, 288.435, 288.440, 288.450, 288.460, 288.500, 288.505, 288.513, 288.515,
288.517, 288.518, 288.520, 288.523, 288.525, 288.530, 288.535, 288.540,
288.545, 288.550, 288.560, 288.570, 288.580, 288.590, 288.592, 288.594,
288.596, 288.598, 288.600, 288.605, 288.610, 288.615, 288.620, 288.625,
288.630, 288.635, 288.637, 288.640, 288.645, 288.650, 288.655, 288.660,
288.665, 288.670, 288.675, 288.677, 288.680, 288.685, 288.690, 288.695,
288.805, 288.815, 288.825, 288.835, 288.845, 288.855, 288.865, 288.875,
288.885, 288.895, 288.915, 288.925, 288.935, 288.945, 288.950, 293.173, 293.292,
328.235, 358.395, 358.400, 367.670, 450.935 and 456.650 are repealed.
     (2) Notwithstanding section 17, chapter
895, Oregon Laws 2007 (amending ORS 288.805), if Senate Bill 812 becomes law,
ORS 288.805 is repealed. [2007 c.783 §234]
     Sec.
235. Nothing in the repeal
of statutes by section 234 of this 2007 Act affects any issue of bonds that
occurred prior to the effective date of this 2007 Act [January 1, 2008]. [2007
c.783 §235]
     Sec.
236. (1) Notwithstanding
section 233 of this 2007 Act and the repeal of statutes by section 234 of this
2007 Act, or any other provision of law, the State Treasurer or any public body
as defined in section 42 of this 2007 Act [287A.001] may elect, pursuant to
rules adopted by the State Treasurer, to authorize or issue bonds under the
laws of this state in effect on the day before the effective date of this 2007
Act [January 1, 2008].
     (2) The State Treasurer shall by rule
prescribe how and when an election may be made under this section. [2007 c.783 §236]
     Sec.
237. Section 236 of this
2007 Act is repealed January 2, 2010. [2007 c.783 §237]
DEFINITIONS
     286A.001
Definitions for ORS chapter 286A. As used in this chapter:
     (1) “Agreement for exchange of interest
rates” 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.
     (2) “Bond”:
     (a) Means a contractual undertaking or
instrument of the State of
     (b) Does not mean a financing agreement,
as defined in ORS 283.085, if the principal amount of the agreement is $100,000
or less, or a credit enhancement device.
     (3) “Counterparty” means an entity with
whom the State of
     (4) “Credit enhancement device”:
     (a) Means a letter of credit, line of
credit, standby bond purchase agreement, bond insurance policy, reserve surety
bond or other device or facility used to enhance the creditworthiness,
liquidity or marketability of bonds or agreements for the exchange of interest
rates; and
     (b) Does not mean a bond.
     (5) “Credit enhancement device fee” means
a payment required to be made to the provider of a credit enhancement device
securing a bond or securing an agreement for the exchange of interest rates.
     (6) “General obligation bond” means a bond
that constitutes indebtedness of the state under section 7, Article XI of the
Oregon Constitution, and that is exempt from the $50,000 limitation on
indebtedness set forth in that section.
     (7) “Refunding bond” means a bond of the
State of Oregon that is issued to refund another bond, regardless of whether
the refunding is on a current, advance, forward delivery, synthetic or other
basis.
     (8) “Related agency” means the state
agency that requests the State Treasurer to issue bonds pursuant to ORS
286A.025 or for which the State Treasurer has issued bonds.
     (9) “Related bond” means a bond for which
the State of
     (10) “Revenue” means all fees, tolls,
excise taxes, assessments, property taxes and other taxes, rates, charges,
rentals and other income or receipts derived by a state agency or to which a
state agency is entitled.
     (11) “Revenue bond” means a bond of the
State of
     (12) “State agency”:
     (a) Includes a statewide elected officer,
board, commission, department, division, authority or other entity, without
regard to the designation given to the entity, that is within state government,
as defined in ORS 174.111; and
     (b) Does not include:
     (A) A statewide elected judge;
     (B) The State Treasurer;
     (C) A local government, as defined in ORS
174.116;
     (D) The
     (E) A special government body, as defined
in ORS 174.117, except to the extent a special government body must be
considered a state agency in order to achieve the purposes of Article XI-K of
the Oregon Constitution; or
     (F) A semi-independent state agency listed
in ORS 182.451, 182.454, 377.835 or 674.305, or any other state agency
denominated by statute as a semi-independent state agency.
     (13) “Termination payment” means the
amount payable under an agreement for exchange of interest rates by one party
to another party as a result of the termination, in whole or part, of the
agreement prior to the expiration of the stated term. [2007 c.783 §2]
     Note: 182.451 was repealed by section 58, chapter
71, Oregon Laws 2007. The text of 286A.001 was not amended by enactment of the
Legislative Assembly to reflect the repeal. Editorial adjustment of 286A.001
for the repeal of 182.451 has not been made.
DUTIES OF
STATE TREASURER
     286A.005
Authority of State Treasurer to issue bonds. (1) The State Treasurer shall issue and sign bonds of the State of
     (2) Unless otherwise authorized by law
other than this section, the State Treasurer may issue bonds only if a related
agency has requested that the bonds be issued.
     (3) In determining whether to issue bonds,
the State Treasurer shall consider:
     (a) The bond market for the type of bonds
proposed for issuance;
     (b) The terms and conditions of the
proposed issue; and
     (c) Other relevant factors that the State
Treasurer considers necessary to protect the financial integrity of the State
of
     (4) The State Treasurer may sell bonds for
more than one related agency or for more than one purpose in a single sale or
in combination with the sale of other bonds.
     (5) The State Treasurer is an applicable
elected representative for the purpose of approving the issuance of bonds when
approval is required under section 147(f) of the Internal Revenue Code.
     (6) The State Treasurer may adopt rules
providing for the procedural or administrative requirements for the issuance of
obligations, as defined in ORS 286A.100. [2007 c.783 §3]
     286A.010
Information required by State Treasurer. A related agency shall, at the direction of the State Treasurer,
provide the State Treasurer with:
     (1) The information that the State
Treasurer considers necessary to determine whether to issue the requested
bonds, including assumptions underlying cash flow projections associated with
the repayment of the bonds; and
     (2) After the requested bonds are issued,
the information that the State Treasurer considers necessary to:
     (a) Administer the bonds; and
     (b) Comply with federal and state
securities law and bond covenants. [2007 c.783 §4]
     286A.014
Fees and expenses of State Treasurer; rules. (1) The State Treasurer may charge a related agency for reasonable
fees and expenses in connection with the services, duties and activities of the
State Treasurer related to the borrowing activities of the State of Oregon,
including but not limited to the issuance and administration of obligations, as
defined in ORS 286A.100.
     (2) The State Treasurer may charge a
public body, as defined in ORS 287A.001, reasonable fees and expenses in
connection with:
     (a) The services, duties and activities of
the State Treasurer related to obligations, as defined in ORS 287A.310, of the
public body; or
     (b) Providing assistance to the Oregon
Municipal Debt Advisory Commission or to the public body.
     (3) The State Treasurer shall deposit all
moneys received under this section in the Miscellaneous Receipts Account
established under ORS 286A.016.
     (4) The State Treasurer shall adopt rules
to implement the provisions of this section including, but not limited to,
rules identifying the services, duties and activities for which charges are to
apply.
     (5) A related agency or public body shall
pay to the State Treasurer reasonable fees and expenses charged under this
section or under rules adopted pursuant to this section. [2007 c.783 §5]
     286A.015
Payment of expenses of State Treasurer. Moneys received under ORS 286A.014 are continuously appropriated to
the State Treasurer for the payment of expenses of the State Treasurer in
connection with bonds of the State of Oregon or a public body as defined in ORS
287A.001. [2007 c.783 §6]
     Note: 286A.015 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 286A or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     286A.016
Disposition of charges. All
moneys received under ORS 286A.014 and 287A.634 shall be deposited in the
Miscellaneous Receipts Account established in the General Fund for the State
Treasurer. The State Treasurer may use moneys in the account for payment of
expenses of the State Treasurer in connection with bonds of the State of Oregon
or a public body as defined in ORS 287A.001. [Formerly 286.025]
AUTHORITY FOR
BORROWING
     286A.025
Issuance and sale of bonds.
(1) The State Treasurer may, at the request of a related agency:
     (a) Issue bonds when a law of the State of
     (b) Issue refunding bonds without
additional authorization.
     (2) In consultation with the related
agency, the State Treasurer may:
     (a) Sell bonds at a competitive sale or a
negotiated sale or in any other manner determined by the State Treasurer;
     (b) Issue bonds the interest of which is
exempt from federal income taxation or is not exempt from federal income
taxation;
     (c) Establish the principal amounts,
redemption provisions, optional or mandatory tender provisions, interest rates
or methods for determining variable or adjustable interest rates, denominations
and other terms and conditions of the bonds;
     (d) Establish maturity dates for bonds to
provide for short-term, interim or long-term borrowing;
     (e) Determine the form and content of a
bond offering or disclosure document;
     (f) Structure, market and issue bonds in
the manner that the State Treasurer determines is in the best interest of the
people of the State of Oregon; and
     (g) Invest moneys held in connection with
or derived from obligations, as defined in ORS 286A.100, without regard to the
fund or account to which the moneys are credited under other provisions of law,
alone or with other invested moneys. In addition, the State Treasurer may:
     (A) Establish funds and accounts separate
and distinct from the General Fund in order to invest the moneys as provided in
ORS 293.701 to 293.820 and to arrange for redemption or purchase of bonds; and
     (B) Segregate or pool moneys in order to
promote financial and administrative efficiency and prudence in the management
of moneys derived from obligations, as defined in ORS 286A.100, moneys
available for bond repayment and other moneys, and in the administration of
bond programs.
     (3) Subject to the approval of the State
Treasurer, moneys described in subsection (2)(g) of this section may be held by
a trustee under a trust agreement, indenture, bond declaration or similar
instrument and may be invested by the trustee at the direction of the related
agency for which the moneys are held by the trustee. If consistent with the
trust agreement, indenture, bond declaration or similar instrument, a related
agency may authorize a trustee to invest on behalf of the agency in the
investment funds or with other moneys invested by the State Treasurer under ORS
293.701 to 293.820 and may authorize a transfer of the moneys from the State
Treasurer to the trustee.
     (4) In addition to authority conferred by
law other than this section, the State Treasurer or, with the approval of the
State Treasurer, a related agency may:
     (a) Execute and deliver indentures, trust
agreements, auction agent agreements, broker-dealer agreements, tender agent
agreements, bond declarations or similar instruments and other contracts
related to the sale, issuance or security of the bonds;
     (b) Deposit funds with trustees for the
benefit of bond owners and the providers of credit enhancement devices; and
     (c) Enter into covenants for the benefit
of bond owners or the providers of credit enhancement devices.
     (5) The covenants authorized by subsection
(4)(c) of this section:
     (a) May include, but are not limited to,
covenants regarding the issuance of additional bonds, the priority of payment
of bonds and, if authorized by law other than this section, the imposition and
collection of rates, fees or other charges; and
     (b) Are intended to:
     (A) Improve the security of bond owners or
providers of credit enhancement devices; or
     (B) Maintain the tax-exempt status of
interest payable on bonds.
     (6) In addition to authority conferred by
law other than this section, in consultation with the related agency, the State
Treasurer may establish a debt service reserve for the purpose of paying when
due the amounts owing on the bonds for which the debt service reserve is
established. The debt service reserve may be funded out of the proceeds derived
from the issuance and sale of the bonds for which the debt service reserve is
being established or from other lawfully available funds.
     (7) In consultation with the related
agency, the State Treasurer shall select the underwriters for the sale of the
bonds requested by the related agency. An agreement with the underwriters may
be executed by the State Treasurer alone or with the related agency. An
agreement with underwriters is not subject to the Public Contracting Code. [2007
c.783 §7]
     286A.035
Bond budget authorization.
(1) Each related agency shall report the plans of the related agency for the
issuance of bonds during the next biennium. The related agency shall submit the
related agencyÂ’s report to the Governor by a date determined by the Governor
and shall include in the report a description of bonds that the related agency
intends to retire or defease during the next biennium.
     (2) On or before a date determined by the
Governor, the State Treasurer shall advise the Governor on the prudent maximum
amount of bonds to be issued for each bond program. The State Treasurer shall
consider available economic and financial data in preparing advice to be given
to the Governor.
     (3) As part of the Governor’s budget
report described in ORS 291.216, the Governor shall:
     (a) Consider the prudent maximum amounts
advised by the State Treasurer pursuant to subsection (2) of this section to
determine the GovernorÂ’s total recommended amount; and
     (b) Recommend to the Legislative Assembly
the total amount of bonds the State Treasurer may issue for each bond program
for a biennium.
     (4) The Legislative Assembly shall
determine the amount of bonds the State Treasurer may issue for each state
agency for a biennium. If the Legislative Assembly fails to make the
determination described in this subsection by the first day of the biennium,
the unused portion of the authorization the Legislative Assembly made for the
preceding biennium is deemed to carry forward for the current biennium at the
amount authorized for the preceding biennium until the earlier of:
     (a) The date on which legislation
authorizing the amount of bonds for the current biennium is enacted; or
     (b) The date on which the Legislative
Assembly adjourns sine die.
     (5) The amount of bonds that may be issued
under bond programs may be modified by the Governor. However, the Governor may
not modify the amount of bonds that may be issued under bond programs in a way
that would cause the maximum amount established by the Legislative Assembly for
a category of bond programs to be exceeded if the Legislative Assembly:
     (a) Has categorized the bonds that may be
issued under bond programs as general obligation, direct revenue and
pass-through revenue bonds; and
     (b) Assigned a maximum amount to each
category.
     (6) This section applies to bonds:
     (a) Unless the bonds are expressly
exempted from the requirements of this section.
     (b) Except refunding bonds. [2007 c.783 §9]
     286A.045
Borrowing for current expenses.
(1) The State Treasurer may issue bonds to finance all or a portion of the
current expenses of this state. The amount of bonds issued under this section
at any time may not exceed the State TreasurerÂ’s estimate of the cash flow
deficit in revenues available to pay the expenses that are financed with the
bonds, plus amounts for reasonable reserves and costs.
     (2) To estimate the amount of cash flow
deficit, the State Treasurer shall take into account the most recent cash flow
forecast made by the Oregon Department of Administrative Services and any other
information the State Treasurer determines is reliable and relevant.
     (3) When the State Treasurer issues bonds
under this section:
     (a) The Oregon Department of
Administrative Services shall account for and administer the proceeds of the
bonds and the repayment of the bonds. The State Treasurer, in consultation with
the Oregon Department of Administrative Services, shall determine the
appropriate investment strategy for the proceeds of the bonds. The State
Treasurer shall notify the Director of the Oregon Department of Administrative
Services, the Legislative Fiscal Officer and the Legislative Revenue Officer
before issuing bonds under this section.
     (b) The State Treasurer may pledge:
     (A) All or a portion of the revenues of
the State of
     (B) The full faith and credit of the State
of Oregon to pay bonds issued under this section if the bonds are payable from
the Short Term Borrowing Account established under ORS 286A.050 and the bonds
mature not later than the end of the biennium in which the bonds are issued.
     (c) A state agency may use the proceeds of
bonds issued under this section:
     (A) For a purpose for which the revenues
that are pledged to pay the bonds may be used;
     (B) To pay principal, interest and premium,
if any, on the bonds or a rebate or penalty due to the
     (C) To pay the cost of credit enhancement
devices with respect to the bonds;
     (D) To pay the costs of the State
Treasurer and the Oregon Department of Administrative Services of issuing,
administering or maintaining the bonds including, but not limited to, the cost
of a consultant or adviser retained by the State Treasurer or the Oregon
Department of Administrative Services; or
     (E) To make payments with respect to
agreements for the exchange of interest rates.
     (4) This section constitutes complete
authority for the State Treasurer to issue bonds described in this section.
     (5) ORS 286A.035 does not apply to bonds
authorized by this section.
     (6) The requirements and limitations that
apply to certificates of indebtedness issued under ORS 293.165 do not apply to
bonds issued by the State Treasurer under this section.
     (7) This section and ORS 286A.050
constitute complete authorization by the Legislative Assembly for the use and
expenditure of the proceeds of the bonds and the revenues pledged to pay those
bonds for the purposes described in subsection (3)(c) of this section.
Additional appropriation or authorization is not necessary. The authorization
contained in this section and ORS 286A.050 to spend moneys for the purposes
described in subsection (3)(c) of this section does not constitute an
appropriation for purposes of ORS 291.357.
     (8) The proceeds of bonds issued by the
State Treasurer under this section do not constitute revenues received by the
General Fund for purposes of section 14, Article IX of the Oregon Constitution,
and ORS 291.349.
     (9) The State Treasurer may perform the
duties and exercise the powers of a related agency under this section. [2007
c.783 §11]
     286A.050
Short Term Borrowing Account; sources; uses. (1) The Short Term Borrowing Account is created in the General Fund.
     (2) The State Treasurer shall credit the
proceeds of bonds issued by the State Treasurer under ORS 286A.045 to the Short
Term Borrowing Account. The State Treasurer shall, in addition, transfer to the
Short Term Borrowing Account any amounts that are pledged to pay bonds issued
by the State Treasurer under ORS 286A.045 and that are required to pay those
bonds.
     (3) Amounts in the Short Term Borrowing
Account are continuously appropriated to the respective state agencies for
which the revenues that are pledged to pay the bonds were appropriated, for the
purposes described in ORS 286A.045 (3)(c). Amounts appropriated under this
subsection may not be taken into account in preparing budget estimates, plans
or reports required to be prepared under ORS 291.201 to 291.222. [Formerly
293.175]
     286A.055
Report by State Treasurer on amount of bonds issued, amounts repaid, costs and
interest earned. Within 90
days following the end of a biennium, the State Treasurer shall report in
writing to the Legislative Fiscal Officer and the Legislative Revenue Officer
on the amount of bonds issued by the State Treasurer under ORS 286A.045, the
amount spent in repayment of those bonds, the issuance costs and interest costs
of those bonds and the interest revenues earned by the proceeds of those bonds.
[Formerly 293.177]
     286A.095
Compliance with constitutional or statutory debt limit. (1) When calculating compliance with a
constitutional or statutory debt limit:
     (a) If a bond is issued to a provider of a
credit enhancement device for a bond that is subject to a debt limit, the bond
issued to the provider must be taken into account only to the extent that the
amount of the bond issued to the provider exceeds the amount of the bond that
is secured by the credit enhancement device.
     (b) The amount of interest to be paid on
bonds, whether paid currently or deferred, is not taken into account.
     (c) For a zero coupon bond or other
original issue discount bond on which periodic interest payments are not made,
only the accreted value of the bond on the date the bond is issued is taken
into account.
     (d) The state may deduct from the amount
of outstanding bonds:
     (A) The amount of moneys and investments
held by the state or a trustee of the state to pay bonds that have not been
defeased; and
     (B) The principal amount of bonds that
have been defeased.
     (2) For purposes of this section, a bond
is defeased if:
     (a) The state has set aside in an
irrevocable escrow government obligations, as defined in ORS 287A.375, the
receipts from which have been calculated by a certified public accountant or
other experienced professional to be sufficient, without reinvestment, to pay
the principal, interest and premium, if any, due on the bond at maturity or on
prior redemption; or
     (b) The state has complied with the
provisions in the documents authorizing the bond that provide for the payment
or defeasance of the bond. [2007 c.783 §15]
ADMINISTRATION
OF BOND PROGRAMS
     286A.100
Definitions for ORS 286A.100 and 286A.102. As used in this section and ORS 286A.102:
     (1) “Obligation” means:
     (a) A bond;
     (b) An agreement for exchange of interest
rates with the State of
     (c) A credit enhancement device given as
additional security for a bond.
     (2) “Operative document” means a bond
declaration, trust agreement, indenture, security agreement or other document
in which the State of
     (3) “Pledge” means:
     (a) To create a security interest in or a
lien on property to secure payment or performance of an obligation, by
mortgaging, assigning or encumbering property or by creating a security
interest in property by any other manner.
     (b) A security interest in or lien on
property created under paragraph (a) of this subsection.
     (4) “Pledgee” means:
     (a) A trustee for the holder of an
obligation; or
     (b) The holder of an obligation if a
trustee was not appointed in the operative document or if the operative
document authorizes the holder of an obligation to foreclose the lien of a
pledge and enforce the remedies consequent to the pledge in lieu of the
trustee.
     (5) “Property” means:
     (a) Real or personal property, tangible or
intangible, whether owned when the pledge is made or acquired subsequently to
the time the pledge is made; and
     (b) Revenues, contract rights, receivables
or securities. [2007 c.783 §17]
     286A.102
Lien of a pledge; Uniform Commercial Code. (1) The Uniform Commercial Code does not apply to the creation,
perfection, priority or enforcement of a lien of a pledge made by a state
agency or the State Treasurer.
     (2) When authorized by law to secure
obligations with property of the State of Oregon, a state agency, or the State
Treasurer acting under the State TreasurerÂ’s own authority or on behalf of a
state agency with the approval of the state agency, may pledge all or a portion
of the property as security for payment of the obligations and for performance
of a covenant or agreement entered into in relation to the issuance of the
obligations.
     (3) The lien created by a pledge described
in subsection (2) of this section is valid and binding from the time the pledge
is made. Pledged property is subject immediately to the lien of the pledge
without physical delivery, filing or any other act.
     (4) Except as otherwise expressly provided
in an operative document, the lien of the pledge is superior to and has
priority over all other claims and liens of any kind.
     (5) When property subject to a pledge is
acquired by the State of
     (a) The property is subject to the lien
upon acquisition by the State of
     (b) The lien relates back to the time the
pledge was originally made.
     (6)(a) The State Treasurer, or the related
agency, may reserve the right to pledge property as security for a subsequently
issued obligation.
     (b) If the State Treasurer or related
agency reserves the right described in paragraph (a) of this subsection,
subject to the terms of the operative document that created the previous
pledge, the lien of the subsequent pledge may be on a parity or pari passu
basis with the lien of the previous pledge, on a prior and superior basis with
the lien of the previous pledge or on a subordinate basis with the lien of the
previous pledge, as specified in the operative document creating the subsequent
pledge. The lien of the subsequent pledge:
     (A) Has the priority specified in the
operative document creating the subsequent pledge; and
     (B) Is superior to and has priority over
other claims and liens of any kind except the lien of a pledge with which the
lien of the subsequent pledge is on a parity or subordinate basis, as specified
in the operative document.
     (7) Except as provided in subsection (8)
of this section, a pledgee may commence an action in a court of competent
jurisdiction to foreclose the lien of the pledge and exercise rights and
remedies available to the pledgee under the operative document.
     (8) When pledged property is in a fund for
debt service reserves or payments, a pledgee may foreclose the lien of the
pledge by applying the property to the payment of obligations subject to the
terms, conditions and limitations in the operative document.
     (9) An initiative or referendum measure
approved by the electors of the State of Oregon that purports to change
statutory provisions affecting rates, fees, tolls, rentals or other charges may
not be given any force or effect if to do so would impair existing covenants
made with holders of existing obligations regarding the imposition, levy or
collection of the rates, fees, tolls, rentals or other charges pledged to
secure outstanding obligations.
     (10) If authorized by law other than this
section to set rates, fees or other charges that are pledged to pay
obligations, a state agency may enter into rate covenants. Rate covenants
authorized by this subsection may obligate a state agency to periodically set
the rates and charges:
     (a) That generate pledged revenues at
specific levels including, but not limited to, a specific monetary charge for
each unit of commodity or service provided or a schedule of rates and charges
that includes fixed and variable components;
     (b) At levels sufficient to maintain
underlying credit ratings assigned to obligations by one or more nationally
recognized credit rating services without regard to any improvement in credit
ratings due to the provision of additional security for the obligations by a
credit enhancement device;
     (c) That generate pledged revenues each
year in amounts at least equal to operations and maintenance expenses of the
state agency that produces the pledged revenues, plus debt service on
obligations, plus an additional amount that is reasonably required to obtain
favorable terms for the obligations; or
     (d) In accordance with a formula
established in the operative document governing obligations. The formula may
provide for rates to be determined by reference to factors including, but not
limited to:
     (A) Historical operating expenses;
     (B) Projected future operating expenses;
     (C) The funding of depreciation;
     (D) The costs of capital improvements;
     (E) The costs of complying with
contractual requirements and covenants;
     (F) The costs of complying with regulatory
requirements;
     (G) Reports of independent consultants
regarding the required level of pledged revenues;
     (H) Debt service on the obligations; and
     (I) The funds needed to establish or
maintain reserves required by law or contract and the funds needed to maintain
an unencumbered carryforward fund balance or working capital to meet
unanticipated expenses or fluctuations in revenues that may arise.
     (11) A rate covenant authorized by this
section is a contract that binds the State of
     (12) The State Treasurer, or a related
agency with the approval of the State Treasurer, may pledge the full faith and
credit of the State of
     286A.110
Agreements for exchange of interest rates. (1) A related agency with the approval of the State Treasurer, or the
State Treasurer on behalf of a related agency, may enter into agreements for
exchange of interest rates with counterparties. Agreements for exchange of
interest rates may be made to manage payment, interest rate, spread or similar
exposure undertaken in connection with a related bond upon a determination by
the related agency, or by the State Treasurer on behalf of the related agency,
that the agreement benefits the State of
     (2) Subject to covenants applicable to a
related bond and the limitations of this section, payments required under an
agreement for the exchange of interest rates by the related agency, or the
State Treasurer on behalf of the related agency, may:
     (a) Be treated as interest payments on the
related bond;
     (b) Be made from revenues or other moneys
that are pledged or otherwise committed to pay the related bond; and
     (c) Rank in an order of priority of
payment relative to the payment of the related bond as the related agency, or
the State Treasurer on behalf of the related agency, determines.
     (3) In connection with entering into an
agreement under this section, a related agency, or the State Treasurer on
behalf of the related agency, may enter into a credit enhancement device for an
agreement for exchange of interest rates.
     (4) An agreement for exchange of interest
rates is subject only to the limitations of this section and is not subject to
a limitation applicable to the related bond.
     (5) With the approval of the State
Treasurer, a related agency may use moneys derived from the issuance and sale
of bonds to pay termination payments due under an agreement entered into under
this section.
     (6) A related agency, with the approval of
the State Treasurer, may:
     (a) Create reserves to pay amounts due
under an agreement for exchange of interest rates; and
     (b) Fund the reserves with moneys derived
from the issuance and sale of bonds or from revenues or other moneys described
in subsection (2)(b) of this section. [2007 c.783 §10]
     286A.120
Credit enhancement devices.
(1) In addition to authority conferred by law other than this section, a
related agency, with the approval of the State Treasurer, or the State
Treasurer may:
     (a) Enter into a credit enhancement device
agreement in order to provide liquidity or security for bonds or for an
agreement for exchange of interest rates. The credit enhancement device may be
secured only by moneys that the State of
     (b) Obtain a credit enhancement device
providing additional security for:
     (A) The payment of all or a portion of
amounts owing under bonds;
     (B) The purpose of funding, in lieu of
cash, all or a portion of a debt service reserve established with respect to
bonds; or
     (C) The payment of amounts owing under an
agreement for exchange of interest rates.
     (2) The related agency, with the approval of
the State Treasurer, or the State Treasurer may pledge as security for the
obligations of the State of
     (3) The State Treasurer may issue a bond
to the provider of a credit enhancement device to secure the obligations of the
State of
     286A.130
Bond counsel services; financial advisory services; Public Contracting Code. (1) The State Treasurer or a related agency
may enter into one or more agreements for bond counsel services for a period of
not less than one year during any biennium in which there are bonds outstanding
that were issued for the state agency or during any biennium in which the state
agency expects the State Treasurer to issue bonds for an agency program. A
state agency may not enter into an agreement for bond counsel services unless
the State Treasurer and the Attorney General have reviewed and approved the
terms and conditions of the agreement. Before approving an agreement, the State
Treasurer shall consider the reputation, experience and credentials of the bond
counsel, including the individuals expected to actually fulfill the contract
work.
     (2) Except as provided in subsection (3)
of this section, the appointment of bond counsel may not be construed as
authorizing bond counsel to advise or represent the state on matters that are
committed by statute to the Attorney General.
     (3) The services provided under a bond
counsel agreement may include:
     (a) Advising a state agency or the State
Treasurer concerning the legality of specific proposed taxable or tax-exempt
bonds and the compliance of obligations with applicable law, including but not
limited to federal securities and tax laws;
     (b) Issuing opinions to a state agency,
the State Treasurer or other parties concerning the enforceability of,
authority for and tax status of bonds, agreements for exchange of interest
rates, credit enhancement devices or similar associated documents and on the
lawful use of the proceeds of the bonds, as may be required by the demands of
the marketplace for the bonds;
     (c) Advising a state agency or the State
Treasurer on legal procedures and practices in the bond marketplace, including
advice on the structuring and sale of bonds;
     (d) Preparing or assisting in the
preparation of documents related to a specific issue of bonds, including but
not limited to an authorizing resolution or declaration, a trust indenture, a
prospectus, a preliminary official statement, an official statement, a bond
sale notice, a bond form, a bid form, a bond purchase agreement, an agreement
for exchange of interest rates, a credit enhancement device or a similar
document necessary or desirable to sell bonds;
     (e) Advising a state agency or the State
Treasurer concerning the maintenance of the tax status of specific bonds,
compliance with any requirements for representations or disclosures relating to
the bonds, compliance with any documents executed as part of the issuance of
the bonds and federal laws related to bond programs that may be available to a
state agency;
     (f) Advising a state agency or the State
Treasurer concerning accounting, investment or administrative procedures
recommended or required for compliance with federal or state securities or tax
or rebate requirements relating to bonds that were issued for the agency or
that the agency expects to issue; and
     (g) Advising and assisting a state agency
or the State Treasurer in responding to an inquiry received from or an audit by
a federal or state regulatory body concerning:
     (A) The tax status of interest paid on the
bonds;
     (B) The marketing of the bonds;
     (C) Requirements of federal law related to
the use of bond proceeds or the program for which the bonds were issued; or
     (D) Other matters within the jurisdiction
of the federal or state regulatory body relating to bonds that were issued by
the state agency.
     (4) In addition to entering into an agreement
described in subsection (3) of this section, the State Treasurer or a related
agency may appoint bond counsel by letter, certificate or otherwise, to provide
the services described in subsection (3) of this section for an individual
conduit revenue bond sale.
     (5) The State Treasurer or, with the
approval of the State Treasurer, a related agency may enter into an agreement
with and retain the services of one or more providers of financial advisory
services. When considering whether to enter into or approve an agreement with a
provider of financial advisory services, before approving the agreement, the
State Treasurer shall consider the reputation, experience and credentials of
the adviser, including the individuals expected to actually fulfill the contract
work.
     (6) Except for the expenses of bond
counsel services provided under subsection (4) of this section for conduit
revenue bond sales, the related agency shall pay the expenses of any agreements
entered into under this section and may use bond proceeds to pay those
expenses.
     (7) The Public Contracting Code does not
apply to agreements entered into under this section. [2007 c.783 §20]
     286A.132
Debt-related advisory services.
(1) In addition to authority conferred by law other than this section, the
State Treasurer or, with the approval of the State Treasurer, a related agency
may enter into an agreement with and retain the services of one or more:
     (a) Providers of investment advisory
services or advisory services related to agreements for exchange of interest
rates;
     (b) Providers of banking services;
     (c) Escrow agents;
     (d) Providers of fiscal or paying agent
services;
     (e) Collateral custodians;
     (f) Providers of investment contracts;
     (g) Remarketing agents; or
     (h) Other bond-related or credit
enhancement device-related agents or service professionals, or other persons
with relevant expertise, to assist the State Treasurer or the related agency in
the performance of the duties of the State Treasurer or the related agency
under this chapter.
     (2) The related agency shall pay the
expenses incurred in providing the services described in this section unless
the related agency requires a recipient of bond sale proceeds to pay the
expenses.
     (3) The Public Contracting Code does not
apply to an agreement entered into under this section.
     (4) When the Oregon Constitution or a law
of this state authorizes bond proceeds to be spent for a particular purpose,
the authorization also includes authorization to spend bond proceeds for bond
counsel, attorney, consultant, fiscal or paying agent, trustee or other
professional fees and other expenses incurred by the related agency or the
State Treasurer to authorize, issue, administer and repay the bonds, including
fees payable to the State Treasurer. [2007 c.783 §21]
    Â
     286A.145
Federal taxation of bond interest; rules. The State Treasurer or a related agency may enter into covenants for
the benefit of owners of bonds that are intended to allow the bonds to bear
interest that is excludable from gross income under the federal Internal
Revenue Code or that is otherwise exempt from taxation by the
     (1) Pay any rebates of earnings or
penalties to the
     (2) Invest proceeds alone or in
combination with other moneys in investments that have different maturities,
yields or credit qualities than the state would acquire under the investment
standards specified in ORS 293.721 and 293.726 and other similar laws, but only
if those investments facilitate compliance with covenants described in this
section; or
     (3) Restrict the expenditure of bond
proceeds or restrict the operation of, or otherwise limit the use of,
facilities that are financed with bonds. [2007 c.783 §23]
     286A.160
Exception to expenditure limits for repaying obligations; administrative
limits; reports. (1)
Notwithstanding any law limiting expenditures of a state agency, for the
purpose of repaying obligations of the state to obtain savings in total or
periodic debt service payments, a law limiting expenditures does not apply to
payments approved by the State Treasurer for administrative expenses, debt
service or financing costs that are necessary or appropriate for the retirement
or refunding of bonds unless the law limiting expenditures creates a specific
exception to this section.
     (2) The Oregon Department of
Administrative Services may establish administrative limitations on the payment
and recording of expenditures made pursuant to subsection (1) of this section.
     (3) The Oregon Department of
Administrative Services shall report incurred expenses and debt service savings
resulting from actions taken under subsection (1) of this section that affect
administrative expenses, debt service or financing costs paid with moneys out
of the General Fund or lottery funds, within 90 days of taking action, to the
Joint Committee on Ways and Means if the Legislative Assembly is in session or
to the Emergency Board during the interim between legislative sessions. [Formerly
286.063]
     286A.185
Cancellation, purchase or redemption of bonds; lost or destroyed evidence of
bonds; rules. (1) The State
Treasurer may adopt rules, or establish by contract or policy, procedures and
requirements for the cancellation, purchase or redemption of bonds, the
remittance of funds to pay bonds, or the replacement of lost or destroyed
evidence of bonds or interest coupons.
     (2) If the State Treasurer decides:
     (a) To replace lost or destroyed evidence
of bonds or coupons, or to make payment in lieu of replacement, the State
Treasurer may require indemnity, deposit or other form of assurance or proof of
ownership to ensure against conflicting, duplicative or fraudulent claims. The
State Treasurer may charge a fee to the person seeking replacement or payment
in lieu of replacement under this section, in an amount sufficient to reimburse
the State Treasurer for costs incurred in providing replacement or payment
under this subsection.
     (b) Not to replace or make payment with
respect to a lost or destroyed bond or coupon, the person seeking replacement
or payment under this section may appeal the determination as a review of an
order other than a contested case under ORS 183.484. [2007 c.783 §24]
     286A.190
Disclosure of bond ownership.
The records of bond ownership are not public records for purposes of ORS
192.410 to 192.505 or other law governing the disclosure of information. [2007
c.783 §25]
     286A.195
Financial audit of bond programs. (1) The Secretary of State shall conduct a financial audit of the bond
programs of each state agency at least annually. The Secretary of State shall
publish the audit as soon as possible following the end of the audit period.
     (2) The Oregon Department of
Administrative Services may, on an annual basis, exempt a bond program from the
requirements of subsection (1) of this section. [2007 c.783 §26]
    Â
     (2) The State Treasurer and the Director
of the Oregon Department of Administrative Services shall serve as ex officio
members of the commission. One member of the commission shall be a member of
the Senate appointed by the President of the Senate. One member of the
commission shall be a member of the House of Representatives appointed by the
Speaker of the House. One member of the commission shall be a public member,
knowledgeable on matters of public finance, appointed by the Governor from
among those persons recommended by the State Treasurer.
     (3) The term of an appointed member is two
years, but an appointed member serves at the pleasure of the appointing
authority. Before the expiration of the term of an appointed member, the
appointing authority shall appoint a successor. If there is a vacancy for any
reason in the office of an appointed member, the appointing authority shall
make an appointment to become immediately effective for the unexpired term.
     (4) A member of the commission is entitled
to compensation and expenses as provided in ORS 292.495.
     (5) The State Treasurer shall serve as
chairperson of the commission, with such duties and powers necessary for the
performance of that office as the commission determines appropriate.
     (6) A majority of the members of the
commission constitutes a quorum for the transaction of business.
     (7) The commission shall meet at least
once every six months at a place and time determined by the commission. The
commission also shall meet at other times and places specified by the call of
the chairperson or of a majority of the members of the commission.
     (8) The office of the State Treasurer
shall provide the commission with office space and clerical and other
administrative support. [Formerly 286.550]
     Note: 286A.250 and 286A.255 were enacted into law
by the Legislative Assembly but were not added to or made a part of ORS chapter
286A or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     286A.255
Functions and duties of commission. The State Debt Policy Advisory Commission shall advise the Governor
and the Legislative Assembly regarding policies and actions that enhance and
preserve the stateÂ’s credit rating and maintain the future availability of
low-cost capital financing. In carrying out this function, the commission shall
at least annually prepare a report showing the consolidated bond profile of
this state. The report must include:
     (1) The total amount of outstanding bonds
for the most recently concluded fiscal year.
     (2) A six-year forecast of the state’s
borrowing capacity targets by repayment source based on the policies and
actions established under this section.
     (3) A calculation of the state’s net
remaining borrowing capacity by repayment source. [Formerly 286.555]
     Note: See note under 286A.250.
LOTTERY BONDS
     286A.560
Definitions for ORS 286A.560 to 286A.585 and 327.700 to 327.711. As used in ORS 286A.560 to 286A.585 and
327.700 to 327.711, unless the context requires otherwise:
     (1) “Appropriated funds” for a particular
fiscal year means any moneys, other than unobligated net lottery proceeds, that
are specifically appropriated or otherwise specifically made available by the
Legislative Assembly or the Emergency Board for a fiscal year to replenish
reserves established as additional security for lottery bonds pursuant to the
authority granted in ORS 286A.580 (6).
     (2) “Bond-related costs” means:
     (a) The costs and expenses of issuing,
administering and maintaining lottery bonds and the lottery bond program,
including but not limited to paying or redeeming lottery bonds, paying amounts
due in connection with credit enhancements or any instruments authorized by ORS
286A.580 (6) and paying the administrative costs and expenses of the State
Treasurer and the Oregon Department of Administrative Services, including costs
of consultants or advisors retained by the State Treasurer or the Oregon
Department of Administrative Services for the lottery bonds or the lottery bond
program;
     (b) The costs of funding any lottery bond
reserves;
     (c) Capitalized interest for lottery
bonds;
     (d) Rebates or penalties due to the
     (e) Any other costs or expenses that the
State Treasurer or the Director of the Oregon Department of Administrative
Services determines are necessary or desirable in connection with issuing
lottery bonds or maintaining the lottery bond program.
     (3) “Lottery bonds” means:
     (a) The state park lottery bonds
authorized by ORS 390.060 to 390.067, the infrastructure lottery bonds
authorized by ORS 285B.530 to 285B.548 and the education lottery bonds
authorized by ORS 327.700 to 327.711;
     (b) Any other bonds payable from the
revenues of the Oregon State Lottery unless the legislation authorizing those
bonds expressly provides that those bonds may not be issued under ORS 286A.560
to 286A.585; and
     (c) Any refunding lottery bonds.
     (4) “Lottery Bond Administrative Fund”
means the fund created by ORS 286A.573.
     (5) “Lottery Bond Fund” means the fund
created by ORS 286A.570.
     (6) “Lottery bond program” means a
financing program authorized by:
     (a) ORS 285B.530 to 285B.548, 327.700 to
327.711 or 390.060 to 390.067; or
     (b) Any other Act of the Legislative
Assembly authorizing the issuance of bonds that are payable from the revenues
of the Oregon State Lottery, unless the legislation authorizing those bonds
expressly provides that those bonds may not be issued under ORS 286A.560 to
286A.585.
     (7) “Refunding lottery bonds” means any
bonds issued for the purpose of refunding any lottery bonds.
     (8) “Unobligated net lottery proceeds”
means all revenues derived from the operation of the Oregon State Lottery
except for:
     (a) The revenues used for the payment of
prizes and expenses of the Oregon State Lottery as provided in section 4
(4)(d), Article XV of the Oregon Constitution, and ORS 461.500 and 461.510;
     (b) The revenues required to be applied,
distributed or allocated as provided in ORS 461.543; and
     (c) The revenues required to be allocated
to pay the Westside lottery bonds and any bonds issued to refund the Westside
lottery bonds, to fund reserves for any of those bonds and to pay related costs
of the Department of Transportation.
     (9) “Westside lottery bonds” means the
bonds issued by this state under the authority granted in ORS 391.140 that,
notwithstanding ORS 267.334, 285B.419, 285B.422, 285B.482, 285B.530 to
285B.548, 286A.560 to 286A.585, 327.700 to 327.711 and 390.060 to 390.067,
shall have a claim on lottery funds that is superior to the claim of the
lottery bonds authorized by ORS 286A.560 to 286A.585. [Formerly 286.560]
     286A.563
Purposes; nature of lottery bonds. (1) The Legislative Assembly declares that the purpose of ORS 286A.560
to 286A.585 is to combine previously enacted legislation authorizing lottery
bonds into a single Act that provides uniform administrative procedures for all
lottery bonds issued by the State of
     (2) The lottery bonds issued under ORS
286A.560 to 286A.585 shall be special obligations of the State of Oregon that
are payable solely from unobligated net lottery proceeds, amounts available in
the Lottery Bond Fund and in any reserve accounts established for lottery bonds
under ORS 286A.560 to 286A.585 and any appropriated funds. The faith and credit
of the State of Oregon or any of its taxing power shall not be pledged or
committed to the payment of lottery bonds or any other commitment of the State
of Oregon authorized by ORS 286A.560 to 286A.585. [Formerly 286.563]
     286A.566
Requirements for legislation authorizing lottery bonds. (1) Any legislation authorizing issuance of
lottery bonds under ORS 286A.560 to 286A.585 shall:
     (a) State the purposes for which the
proceeds of lottery bonds may be spent;
     (b) Contain findings that those uses are
lawful uses of lottery revenues;
     (c) Indicate the amount of lottery bonds
that may be issued under the legislation;
     (d) Specify the fund into which the net
proceeds of those lottery bonds shall be deposited; and
     (e) Provide for the payment of the
bond-related costs for the lottery bonds.
     (2) Unless specifically prohibited by the
legislation authorizing lottery bonds:
     (a) Any agency or other entity holding net
proceeds of lottery bonds shall, upon the written request of the Director of
the Oregon Department of Administrative Services, transfer to the Oregon
Department of Administrative Services for deposit in the Lottery Bond
Administrative Fund the amounts that the director states in the request are
reasonably required to pay for bond-related costs that are allocable to those
net proceeds.
     (b) The agencies or other entities
receiving proceeds of lottery bonds shall, if so directed by the Oregon
Department of Administrative Services, take any action specified by the Oregon
Department of Administrative Services that is necessary to maintain the
excludability of lottery bond interest from gross income under the Internal
Revenue Code. [Formerly 286.566]
     286A.570
Lottery Bond Fund; purposes.
(1) The Lottery Bond Fund is established in the State Treasury, separate and
distinct from the General Fund. The amounts of unobligated net lottery proceeds
described in ORS 286A.576 (2)(a) and (b) and any appropriated funds and
investment earnings of the Lottery Bond Fund shall be credited to the Lottery
Bond Fund. The State Treasurer may establish reserves for lottery bonds as
provided in ORS 286A.580 (6). The reserves shall be credited to such account in
the Lottery Bond Fund as the State Treasurer may designate.
     (2) The amounts credited to the Lottery
Bond Fund are continuously appropriated only for the purpose of paying, when
due, the principal of and the interest and premium, if any, on outstanding
lottery bonds, funding lottery bond reserves and paying amounts due in
connection with any instrument authorized by ORS 286A.580 (6).
     (3) The moneys in the Lottery Bond Fund
shall be used and applied solely to pay, when due, the principal of and the
interest and premium, if any, on any lottery bonds, to fund reserves and to pay
amounts due under instruments authorized by ORS 286A.580 (6). [Formerly
286.570]
     Note: Section 9, chapter 44, Oregon Laws 1999,
provides:
     Sec.
9. (1) The State Treasurer
shall merge into the Lottery Bond Fund the lottery bond funds authorized by ORS
285B.530 to 285B.548, 327.700 to 327.711 and 390.060 to 390.067.
     (2) The State Treasurer shall merge into
the Lottery Bond Administrative Fund the lottery bond administrative funds
authorized by ORS 285B.530 to 285B.548, 327.700 to 327.711 and 390.060 to
390.067.
     (3) The State Treasurer may merge into a
single reserve account the reserve accounts created for lottery bonds
authorized by ORS 285B.530 to 285B.548, 327.700 to 327.711 and 390.060 to
390.067. [1999 c.44 §9]
     286A.573
Lottery Bond Administrative Fund; purposes. The Lottery Bond Administrative Fund is established in the State
Treasury, separate and distinct from the General Fund. The amounts of
unobligated net lottery proceeds specified in ORS 286A.576 (2)(c), the proceeds
of any lottery bonds issued to pay bond-related costs and the investment
earnings on amounts in the Lottery Bond Administrative Fund shall be credited
to the Lottery Bond Administrative Fund. All moneys credited from time to time
to the Lottery Bond Administrative Fund, including any investment earnings
thereon, are appropriated continuously to the Oregon Department of
Administrative Services only for payment of bond-related costs. Amounts in the
Lottery Bond Administrative Fund shall be disbursed upon the written request of
the Director of the Oregon Department of Administrative Services. [Formerly
286.573]
     286A.576
Allocation of lottery moneys for lottery bonds; priorities. (1) Subject only to the availability of
unobligated net lottery proceeds, in each fiscal year in which lottery bonds
are outstanding, there shall be allocated from the Administrative Services
Economic Development Fund created by ORS 461.540 or, if unobligated net lottery
proceeds in that fund are insufficient, from any other fund or account of this
state that contains unobligated net lottery proceeds, an amount of unobligated
net lottery proceeds that is sufficient:
     (a) To pay all lottery bond principal,
interest and premium, if any, that is scheduled to be paid in that fiscal year;
     (b) To restore the balance in any reserve
account for lottery bonds to the level the state has covenanted to maintain in
the account under ORS 286A.580 (6), including any amounts due under an
instrument authorized by ORS 286A.580 (6); and
     (c) To pay bond-related costs that will be
due in that fiscal year.
     (2) The amounts of unobligated net lottery
proceeds allocated pursuant to subsection (1) of this section shall be
transferred to the following funds and accounts in the following order of
priority:
     (a) First, there shall be transferred to
the Lottery Bond Fund an amount of unobligated net lottery proceeds that, when
added to any amounts credited to the Lottery Bond Fund that are available for
such purpose, will be sufficient to pay all amounts of lottery bond principal,
interest and premium scheduled to be paid in that fiscal year;
     (b) Second, if the balances in any reserve
accounts for lottery bonds are less than the amounts the state has covenanted
to maintain in those reserve accounts, there shall be transferred to the
Lottery Bond Fund for credit to those reserve accounts amounts of unobligated
net lottery proceeds sufficient to restore the balances in those reserve
accounts to the levels the state has covenanted to maintain; and
     (c) Third, any remaining amount shall be
transferred to the Lottery Bond Administrative Fund.
     (3) Notwithstanding any other provision of
law, in accordance with section 4 (4), Article XV of the Oregon Constitution,
the annual allocations of unobligated net lottery proceeds made by this section
and the transfers of unobligated net lottery proceeds required to be made by
this section shall be satisfied and credited from the first unobligated net
lottery proceeds received by this state before any other allocation,
appropriation or disbursement of the earnings of the unobligated net lottery
proceeds is made in such fiscal year.
     (4) The percentages of revenues of the
Oregon State Lottery that are dedicated for particular purposes under section 4
(4), Article XV of the Oregon Constitution, shall be calculated without
deducting from the total lottery revenues the amount of unobligated net lottery
proceeds that are required to pay lottery bonds.
     (5) If there are not sufficient revenues
of the Oregon State Lottery to pay lottery bonds and to satisfy the percentage
dedications set forth in the Oregon Constitution, the State Treasurer shall,
before issuing any series of lottery bonds, cause a projection of unobligated
net lottery proceeds and lottery bond debt service to be prepared. The State
Treasurer shall not issue a series of lottery bonds if the projection indicates
that there will not be sufficient proceeds of the Oregon State Lottery to
satisfy the percentage dedications of section 4 (4), Article XV of the Oregon
Constitution, and to leave unobligated net lottery proceeds in amounts at least
equal to the debt service on all lottery bonds, including the series proposed
to be issued. However, if at some time in the future a conflict arises because
of a decline in revenues of the Oregon State Lottery, unobligated net lottery
proceeds shall be allocated and applied first to pay lottery bonds, and the
remaining net revenues of the Oregon State Lottery shall be divided pro rata
among the constitutionally dedicated uses.
     (6) Notwithstanding any other provision of
law, when the Legislative Assembly enacts laws granting pledges, making
dedications or making appropriations of net proceeds of the Oregon State
Lottery for purposes other than payment of lottery bonds, all such pledges,
dedications and appropriations, whenever granted or made, shall be subordinate
to the pledges and dedications of unobligated net lottery proceeds for lottery
bonds. [Formerly 286.576]
     286A.578
Litigation challenging legality of
     (2) By enacting this section, the
Legislative Assembly acknowledges its current intention to provide appropriated
funds if amounts are certified by the Director of the Oregon Department of
Administrative Services under ORS 286A.580, but the Legislative Assembly or the
Emergency Board does not have a legal obligation to provide appropriated funds.
[Formerly 286.578]
     286A.580
Issuance of lottery bonds; refunding bonds; bond covenants; reserves for bonds;
appropriation to maintain reserves; credit enhancements. (1) The State Treasurer, at the request of
the Director of the Oregon Department of Administrative Services, may issue
lottery bonds from time to time to finance any lottery bond program and to pay
costs of issuing lottery bonds and administering the lottery bond program, and
the State Treasury may be paid for all bond-related costs the State Treasury
incurs.
     (2) Lottery bond proceeds and unobligated
net lottery proceeds may be used to pay bond-related costs.
     (3) In addition to lottery bonds for any
lottery bond program, the State Treasurer may, at the request of the affected
agency or the Oregon Department of Administrative Services, issue one or more
series of refunding lottery bonds. The refunding lottery bonds shall be
structured so that the amount required to pay those bonds in each year does not
exceed the amount of unobligated net lottery proceeds that could have been
committed to pay the lottery bonds that are refunded. Refunding lottery bonds
shall be issued in such amount as the State Treasurer determines is necessary
or appropriate in order to:
     (a) Pay or defease the principal of and
the interest and redemption premium, if any, on the bonds to be refunded; and
     (b) Pay any bond-related costs related to
the refunding lottery bonds.
     (4) All lottery bonds issued under this
section shall be payable from:
     (a) The amount pledged for payment under
subsection (7) of this section; and
     (b) Any appropriated funds.
     (5) The lottery bonds shall not be general
obligations of this state and shall not be secured by or payable from any funds
or assets of this state other than the amounts pledged for payment or security
and any appropriated funds. The Legislative Assembly shall not be under any
legal compulsion or obligation to provide any appropriated funds and shall not
be liable to any party for any failure to provide appropriated funds. All
lottery bonds issued under ORS 286A.560 to 286A.585 shall contain a statement
that this state is not obligated to pay lottery bond principal, interest or
premium thereon from any source other than the amounts pledged for payment and
any appropriated funds, and that the full faith and credit or the taxing power
of the State of Oregon are not pledged to the payment of lottery bond
principal, interest or premium.
     (6) The State Treasurer may establish
reserves for lottery bonds. The reserves may be in the form of cash,
investments, surety bonds, municipal bond insurance, lines of credit, letters
of credit or other similar instruments. The State Treasurer, on behalf of the
State of
     (7) Notwithstanding any other provision of
law, the State Treasurer may pledge all or any portion of the unobligated net
lottery proceeds, amounts in the Lottery Bond Fund and any unexpended lottery
bond proceeds to pay lottery bonds and to pay amounts due in connection with
any credit enhancement or any instrument authorized by subsection (6) of this
section. The lien of such pledge shall be valid and binding immediately upon
delivery by the state of the lottery bonds, credit enhancement agreement or
instrument secured by the pledge. The amounts so pledged shall be immediately
subject to the lien of the pledge upon receipt of the amounts by this state
regardless of when or whether they are allocated or transferred to the Lottery
Bond Fund or the Lottery Bond Administrative Fund and regardless of whether
there was physical delivery, filing or other act. Except to the extent provided
in the pledge, the lien of the pledge shall be superior to all other claims,
liens and appropriations of any kind. The State Treasurer may provide that
lottery bonds may be issued in different series and that each series may be
secured by a lien on, and pledge of, the unobligated net lottery proceeds that
is superior to, subordinate to, or on a parity with, the lien of the pledge
securing other series of lottery bonds. Nothing in this section shall be
construed to limit the powers granted in any other part of ORS 286A.560 to
286A.585.
     (8) Any covenants made under this section
for the benefit of owners of lottery bonds shall constitute contracts between
the State of
     (a) Except as permitted by a pledge made
under subsection (7) of this section, this state shall not create any lien or
encumbrance on the unobligated net lottery proceeds that is superior to the
liens of the pledges authorized by subsection (7) of this section.
     (b) Subject only to the availability of
unobligated net lottery proceeds, the State of Oregon shall budget and
appropriate in each fiscal year an amount of unobligated net lottery proceeds
that, when added to other funds lawfully budgeted and appropriated and
available for the purpose, will be sufficient:
     (A) To pay in full the principal, interest
and premium due and to become due on all outstanding lottery bonds in the
fiscal year;
     (B) To maintain the required balance in
any reserves established for lottery bonds; and
     (C) To pay amounts due to the providers of
credit enhancement for lottery bonds or instruments authorized by subsection
(6) of this section.
     (c) This state shall apply the unobligated
net lottery proceeds and any other amounts so budgeted and appropriated for
those purposes.
     (d) This state shall continue to operate
the Oregon State Lottery until all lottery bonds are paid or defeased.
     (9) In connection with the issuance of any
lottery bonds, the State Treasurer may establish such accounts and subaccounts
within the Lottery Bond Fund that the State Treasurer determines are necessary
or appropriate. In addition, the State Treasurer or the Director of the Oregon
Department of Administrative Services may, on behalf of this state, enter into
any agreements that the State Treasurer determines are necessary or appropriate
to issue lottery bonds and carry out the provisions of ORS 286A.560 to 286A.585
and all legislation authorizing lottery bond programs.
     (10) If the State Treasurer determines
that the acquisition is cost-effective, the State Treasurer may acquire a
municipal bond insurance policy, letter of credit, line of credit, surety bond
or other credit enhancement device for lottery bonds, and may enter into any
related agreements.
     (11) The State Treasurer may provide that
all or any portion of the Lottery Bond Fund, the Lottery Bond Administrative
Fund or any accounts in either fund shall be held by a trustee, may enter into
agreements with the trustee regarding the use and application of the amounts
held in those funds and accounts and may transfer amounts credited to those
funds and accounts to the trustee. [Formerly 286.580]
     286A.585
Lottery bonds for community sports facilities; use of proceeds of bonds. (1) Pursuant to ORS 286A.560 to 286A.585 and
subject to future legislative approval, lottery bonds may be issued to make
grants or loans to Oregon cities to fund projects for the reconstruction,
renovation or development of community sports facilities in order to make the
facilities suitable for use by a major league baseball team if a city is
selected as an expansion site by major league baseball or if a major league
baseball team agrees to relocate to a city.
     (2) The use of lottery bond proceeds is
authorized based on the following findings:
     (a) The financial assistance to cities will
assist in the construction, improvement and expansion of infrastructure and
community facilities that comprise the physical foundation for commercial
activity and provide the basic framework for continued and expanded economic
opportunities and quality communities throughout
     (b) Such financial assistance to cities
will therefore promote economic development within this state, and thus the use
of net proceeds derived from the operation of the Oregon State Lottery to pay
debt service on lottery bonds issued under this section to provide such
financial assistance to cities is an appropriate use of state lottery funds
under section 4, Article XV of the Oregon Constitution, and ORS 461.510.
     (3) Lottery bonds issued pursuant to this
section shall be issued only at the request of the Director of the Economic and
Community Development Department.
     (4) The net proceeds of lottery bonds
issued pursuant to this section shall be deposited in the Economic
Infrastructure Project Fund established by ORS 285B.551. The Director of the
Economic and Community Development Department shall allocate the moneys
deposited in the Economic Infrastructure Project Fund for the purpose described
in this section in accordance with the priorities developed by the Oregon Economic
and Community Development Commission in accordance with ORS 285A.020.
     (5) The proceeds of lottery bonds issued
pursuant to this section shall be used only for the purposes set forth in this
section and for bond-related costs. [Formerly 286.585]
PRIVATE
ACTIVITY BONDS
     286A.605
Definitions for ORS 286A.605 to 286A.625. As used in ORS 286A.605 to 286A.625:
     (1) “Issuer” means an entity that may
issue private activity bonds that are qualified bonds on which the interest is
exempt from federal taxation.
     (2) “Private activity bonds” has the
meaning given in section 141 of the Internal Revenue Code. [Formerly 286.605]
     286A.615
Private Activity Bond Committee; purpose of private activity bonding; rules. (1) The Private Activity Bond Committee is
established. It shall consist of the State Treasurer or the designee of the
State Treasurer, one representative from the Oregon Department of
Administrative Services and one public representative appointed to serve at the
pleasure of the Governor.
     (2) The State Treasurer, or the State
TreasurerÂ’s designee, shall serve as chair of the committee.
     (3) The purpose of private activity
bonding in this state is to maximize the economic benefits of private activity
bonding to the citizens of this state. The committee shall adopt by rule
standards for amounts allocated to the committee for further allocation for
economic development, housing, education, redevelopment, public works, energy,
waste management, waste and recycling collection, transportation and other
activities that the committee determines will benefit the citizens of this
state. In developing standards, the committee shall:
     (a) Survey the expected need for private
activity bond allocations at least once each year;
     (b) Develop strategies for reserving and
allocating the limit that are designed to maximize the availability of tax
exempt financing among competing sectors of the Oregon economy; and
     (c) Ensure that the standards include but
are not limited to standards that:
     (A) Support projects that increase the
number of family wage jobs in this state.
     (B) Promote economic recovery in small
cities heavily dependent on a single industry.
     (C) Emphasize development in
underdeveloped rural areas of this state.
     (D) Utilize educational resources
available at institutions of higher education.
     (E) Support development of the state’s
small businesses, especially businesses owned by women and members of minority
groups.
     (F) Encourage use of
     (4) The state private activity bond volume
cap allocated to the Private Activity Bond Committee as provided in ORS
286A.620 shall be allocated and reallocated among issuers by the Private
Activity Bond Committee as follows:
     (a) Any amounts not reserved to an issuer
or a class of issuers under the authorization adopted by the Legislative
Assembly under ORS 286A.035 shall be allocated or reallocated by the committee
under rules adopted under subsection (3) of this section.
     (b) Any amounts provided for in the
authorization adopted by the Legislative Assembly under ORS 286A.035 that are
unused shall be carried forward for use as provided by rules adopted under
subsection (3) of this section.
     (c) The rules adopted by the committee shall
limit the period of time for which an allocation of private activity bonding
authority is effective. The rules shall ensure that allocations made during a
calendar year are used during that calendar year or that the unused amount of
the allocation is reallocated or carried forward.
     (5) Unused allocations are not
transferable among issuers but are available for reallocation. [Formerly
286.615]
     286A.620
Private activity bond volume cap. The Legislative Assembly may allocate the amount of private activity
bond volume cap among state agencies and the Private Activity Bond Committee
for the two calendar years that begin in a biennium. Any volume cap that the
state receives that is not allocated by the Legislative Assembly may be
allocated by the Private Activity Bond Committee. [2007 c.783 §31]
    Â
BACCALAUREATE
BONDS
     286A.700
Authority to issue baccalaureate bonds. (1) As used in this section:
     (a) “Oregon Baccalaureate Bonds” means
bonds of the State of
     (b) “Post-secondary education” means
training and instruction provided by fully accredited public or private
institutions of higher learning, community colleges and post-high-school career
schools.
     (2) The Legislative Assembly encourages
citizens of the State of
     (3) The Legislative Assembly finds:
     (a) For the benefit of its citizens, the
state supports a system of common schools, institutions of higher education and
community colleges.
     (b) A post-secondary education advances a
citizenÂ’s ability to pursue life, liberty and happiness through a wide range of
employment opportunities.
     (c) A well-educated citizenry contributes
to the economic well-being of the state and nation.
     (d) A well-trained and skilled citizenry
enhances economic development of the state.
     (e) While students have just begun their
education upon completion of a formal education, a lifetime pursuit of learning
contributes to a well-informed citizenry and to
     (f) Citizens educated in
     (g) It is in the interest of this state to
encourage its citizens to plan and save for a post-secondary education.
     (h) An Oregon Baccalaureate Bond program
that provides citizens an opportunity to save for a post-secondary education
for their children, themselves or any citizen is in the social and economic
interest of the State of
     (i) A systematic way to save for
post-secondary education can assist all of
     (4) At the request of the Oregon
University System, the State Treasurer may:
     (a) Issue bonds as Oregon Baccalaureate
Bonds, to encourage investors to save for post-secondary education
opportunities.
     (b) Investigate and implement the means
and procedures to facilitate the participation by the broadest practical range
of investors in the Oregon Baccalaureate Bond program. The means and procedures
may include, but are not limited to, adjustments in the denominations in which
the bonds are issued and the frequency with which the bonds are issued.
     (5) The purchase of an Oregon
Baccalaureate Bond does not guarantee the purchaser, owner or beneficiary of
the bond admittance to a public or private post-secondary institution. [2007
c.783 §33]
PENSION
LIABILITY BONDS
     286A.730
Definitions for ORS 286A.730 to 286A.750. As used in ORS 286A.730 to 286A.750, unless the context requires
otherwise:
     (1) “Article XI-O bonds” means general
obligation bonds or other general obligation indebtedness issued or incurred
under the authority of Article XI-O of the Oregon Constitution.
     (2) “Bond administration fund” means the
Article XI-O Bond Administration Fund established under ORS 286A.745.
     (3) “Bond fund” means the Article XI-O
Bond Fund established under ORS 286A.740.
     (4) “Bond-related costs” means:
     (a) The costs of paying the principal of,
the interest on and the premium, if any, on Article XI-O bonds;
     (b) The costs and expenses of issuing,
administering and maintaining Article XI-O bonds including, but not limited to,
redeeming Article XI-O bonds, paying amounts due in connection with bond
insurance, other credit enhancements or the administrative costs and expenses
of the State Treasurer and the Oregon Department of Administrative Services,
including costs of consultants or advisors retained by the State Treasurer or
the Oregon Department of Administrative Services for the purpose of issuing,
administering or maintaining Article XI-O bonds;
     (c) Capitalized interest on Article XI-O
bonds;
     (d) Costs of funding reserves for Article
XI-O bonds, including costs of surety bonds and similar instruments;
     (e) Rebates or penalties due the United
States Government in connection with Article XI-O bonds; and
     (f) Other costs or expenses that the State
Treasurer or the Director of the Oregon Department of Administrative Services
determines are necessary or desirable in connection with issuing, administering
or maintaining Article XI-O bonds.
     (5) “State agency” means a state officer,
board, commission, corporation, institution, department or other state organization
that has officers or employees participating in the Public Employees Retirement
System. [Formerly 286.730]
     286A.735
Authority of State Treasurer to issue pension liability bonds; nature and
purpose of bonds; refunding bonds. (1) Article XI-O bonds are a general obligation of the State of Oregon
and must contain a direct promise on behalf of the State of Oregon to pay the
principal of, the interest on and the premium, if any, on the Article XI-O
bonds. The State of
     (2) The State Treasurer may issue Article
XI-O bonds:
     (a) To finance all or a portion of the
stateÂ’s pension liabilities for retirement, health care or disability benefits,
in an amount that produces net proceeds that do not exceed the State TreasurerÂ’s
estimate of those liabilities based on information provided to the State
Treasurer by the Public Employees Retirement System, plus an amount determined
by the State Treasurer to pay estimated bond-related costs. If Article XI-O
bonds are issued for a purpose described in this paragraph, the Director of the
Oregon Department of Administrative Services shall allocate the bond-related
costs of those Article XI-O bonds among affected state agencies based on their
payroll costs and shall bill those state agencies for an appropriate share of
the bond-related costs on a monthly or other periodic basis. A state agency
receiving a bill under this paragraph shall pay the amounts billed from the
first moneys legally available to the state agency after paying the costs
incurred for obligations under ORS 283.085 to 283.092.
     (b) To refund Article XI-O bonds. The
amount of Article XI-O bonds issued under this paragraph may not exceed the
estimated costs of paying, redeeming or defeasing the refunded bonds, plus an
amount determined by the State Treasurer to pay estimated bond-related costs.
If Article XI-O bonds are issued under this paragraph, the Director of the
Oregon Department of Administrative Services shall bill a state agency that was
responsible for payment of the refunded bonds for an appropriate share of the
bond-related costs on a monthly or other periodic basis. A state agency
receiving a bill under this paragraph shall pay the amounts billed from the
first moneys legally available to the state agency after paying the costs
incurred for obligations under ORS 283.085 to 283.092.
     (3) The net proceeds of Article XI-O bonds
issued to finance all or a portion the stateÂ’s pension liabilities for
retirement, health care or disability benefits must be transferred to the
Public Employees Retirement Board for deposit in the Public Employees
Retirement Fund established under ORS 238.660. [Formerly 286.735]
     286A.740
Article XI-O Bond Fund; purposes. (1) The Article XI-O Bond Fund is established in the State Treasury,
separate and distinct from the General Fund. Interest earned on the bond fund
must be credited to the bond fund. Amounts credited to the bond fund are
continuously appropriated to the Oregon Department of Administrative Services
for the purpose of paying, when due, the principal of, the interest on and the
premium, if any, on outstanding Article XI-O bonds. The Oregon Department of
Administrative Services shall credit to the bond fund:
     (a) Capitalized or accrued interest on
Article XI-O bonds;
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the bond fund;
     (c) Reserves established for the payment
of Article XI-O bonds; and
     (d) Amounts received in payment of a bill
for bond-related costs in amounts and at times so that sufficient moneys are
available in the bond fund to pay the principal of, the interest on and the
premium, if any, on Article XI-O bonds when due.
     (2) The department may create separate
accounts in the bond fund for reserves and debt service for each series of
Article XI-O bonds. [Formerly 286.740]
     286A.745
Article XI-O Bond Administration Fund; purposes. (1) The Article XI-O Bond Administration
Fund is established in the State Treasury, separate and distinct from the
General Fund. Interest earned on the bond administration fund must be credited
to the bond administration fund. Amounts credited to the bond administration
fund are continuously appropriated to the Oregon Department of Administrative
Services for payment of bond-related costs. The department shall credit to the
bond administration fund:
     (a) Proceeds of Article XI-O bonds that
were issued to pay bond-related costs that are not credited to the bond fund;
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the bond administration
fund; and
     (c) Amounts received in payment of a bill
for bond-related costs that are not credited to the bond fund.
     (2) The department may create separate
accounts in the bond administration fund. [Formerly 286.745]
     286A.750
Terms and conditions of pension liability bonds. (1) In accordance with the applicable
provisions of this chapter, the State Treasurer, after consulting with the
Director of the Oregon Department of Administrative Services, may issue Article
XI-O bonds from time to time for the purposes described in ORS 286A.735 (2).
     (2) Article XI-O bonds may be issued and
sold as provided in this chapter.
     (3) Subject to the approval of the State
Treasurer, the Director of the Oregon Department of Administrative Services
may:
     (a) Enter into agreements with a trustee
or escrow agent regarding the use and application of the amounts held in the
Article XI-O Bond Fund or the Article XI-O Bond Administration Fund; and
     (b) Transfer amounts credited to the bond
fund or the bond administration fund to a trustee or escrow agent. [Formerly
286.750]
SEISMIC
REHABILITATION BONDS
(Public
Education Buildings)
     286A.760
Definitions for ORS 286A.760 to 286A.772. As used in ORS 286A.760 to 286A.772, unless the context requires
otherwise:
     (1) “Article XI-M bonds” means general
obligation bonds or other general obligation indebtedness issued or incurred
under the authority of Article XI-M of the Oregon Constitution.
     (2) “Bond administration fund” means the
Article XI-M Bond Administration Fund established under ORS 286A.766.
     (3) “Bond fund” means the Article XI-M
Bond Fund established under ORS 286A.764.
     (4) “Bond-related costs” means:
     (a) The costs of paying the principal of,
the interest on and the premium, if any, on Article XI-M bonds;
     (b) The costs and expenses of issuing,
administering and maintaining Article XI-M bonds including, but not limited to,
redeeming Article XI-M bonds and paying amounts due in connection with bond
insurance, other credit enhancements or the administrative costs and expenses
of the State Treasurer and the Oregon Department of Administrative Services,
including costs of consultants or advisers retained by the State Treasurer or
the department for the purpose of issuing, administering or maintaining Article
XI-M bonds;
     (c) Capitalized interest on Article XI-M
bonds;
     (d) Costs of funding reserves for Article
XI-M bonds, including costs of surety bonds and similar instruments;
     (e) Rebates or penalties due the United
States Government in connection with Article XI-M bonds; and
     (f) Other costs or expenses that the
Director of the Oregon Department of Administrative Services determines are
necessary or desirable in connection with issuing, administering or maintaining
Article XI-M bonds.
     (5) “Seismic fund” means the Education
Seismic Fund established under ORS 286A.768.
     (6) “State share of costs” means the total
costs and related expenses of the seismic rehabilitation of public education
buildings, minus contributions for seismic rehabilitation from the applicants
as required by the Office of Emergency Management. [Formerly 286.760]
     286A.762
Authority of State Treasurer to issue bonds. (1) Article XI-M bonds are a general obligation of the State of Oregon
and must contain a direct promise on behalf of the State of Oregon to pay the
principal of, the interest on and the premium, if any, on the Article XI-M
bonds. The State of
     (2) The State Treasurer, with the
concurrence of the Director of the Oregon Department of Administrative
Services, may issue Article XI-M bonds as provided in this chapter, subject to
the limit on bond issuance established for the particular biennium pursuant to
ORS 286A.035 and at the request of the Director of the Office of Emergency
Management, for the purpose of financing all or a portion of the state share of
costs to plan and implement seismic rehabilitation of public education
buildings in the amount of the state share of costs, plus an amount determined
by the State Treasurer to pay estimated bond-related costs.
     (3) The State Treasurer shall transfer the
net proceeds of Article XI-M bonds issued for the purpose described in
subsection (2)(a) of this section to the Office of Emergency Management for
deposit in the Education Seismic Fund established under ORS 286A.768. [Formerly
286.762]
     286A.764
Article XI-M Bond Fund; purposes. (1) The Article XI-M Bond Fund is established in the State Treasury,
separate and distinct from the General Fund. Amounts in the bond fund may be
invested as provided in ORS 293.701 to 293.820, and interest earned on the bond
fund must be credited to the bond fund. Amounts credited to the bond fund are
continuously appropriated to the Oregon Department of Administrative Services
for the purpose of paying, when due, the principal of, the interest on and the
premium, if any, on outstanding Article XI-M bonds. The department shall
deposit in the bond fund:
     (a) Capitalized or accrued interest on
Article XI-M bonds;
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the bond fund; and
     (c) Reserves established for the payment
of Article XI-M bonds.
     (2) The department may create separate
accounts in the bond fund for reserves and debt service for each series of
Article XI-M bonds. [Formerly 286.764]
     286A.766
Article XI-M Bond Administration Fund; purposes. (1) The Article XI-M Bond Administration
Fund is established in the State Treasury, separate and distinct from the General
Fund. Amounts in the bond administration fund may be invested as provided in
ORS 293.701 to 293.820, and interest earned on the bond administration fund
must be credited to the bond administration fund. Amounts credited to the bond
administration fund are continuously appropriated to the Oregon Department of
Administrative Services for payment of bond-related costs. The department shall
credit to the bond administration fund:
     (a) Proceeds of Article XI-M bonds that
were issued to pay bond-related costs;
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the bond administration
fund; and
     (c) Amounts transferred from the Education
Seismic Fund by the Office of Emergency Management as provided in ORS 286A.768.
     (2) The department may create separate
accounts in the bond administration fund. [Formerly 286.766]
     286A.768
Education Seismic Fund; purposes; rules. (1) The Education Seismic Fund is established in the State Treasury,
separate and distinct from the General Fund. Amounts in the seismic fund may be
invested as provided in ORS 293.701 to 293.820, and interest earned on the
seismic fund must be credited to the seismic fund. Amounts credited to the
seismic fund are continuously appropriated to the Office of Emergency
Management for the purpose described in ORS 286A.762 (2) and for the purpose of
paying bond-related costs. The office shall deposit in the seismic fund:
     (a) The net proceeds of Article XI-M bonds
transferred pursuant to ORS 286A.762 (3);
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the seismic fund;
     (c) Gifts, grants or contributions
received by the office for the purpose described in ORS 286A.762 (2); and
     (d) Moneys received as repayment of, as a
return on or in exchange for the grant or loan of net proceeds of Article XI-M
bonds.
     (2) The office may create separate
accounts in the seismic fund as appropriate for the management of moneys in the
seismic fund.
     (3) The office and any other state agency
or other entity receiving or holding net proceeds of Article XI-M bonds shall,
at the direction of the Oregon Department of Administrative Services, take
action necessary to maintain the excludability of interest on Article XI-M
bonds from gross income under the Internal Revenue Code.
     (4) The office shall transfer to the
Article XI-M Bond Administration Fund the unexpended and uncommitted amounts
remaining in the seismic fund if:
     (a) Unexpended funds that are not
contractually committed to a particular purpose remain in the seismic fund on
the last day of the biennium; and
     (b) Article XI-M bonds will be outstanding
in the next biennium.
     (5) The office may adopt rules to carry
out this section including, but not limited to, establishing:
     (a) Required contributions from
applicants;
     (b) Fees;
     (c) Standards, terms and conditions under
which moneys in the seismic fund may be granted, loaned or otherwise made
available; and
     (d) Procedures for distributing and
monitoring the use of moneys from the seismic fund. [Formerly 286.768]
     286A.772
Payment of bond-related costs.
For each biennium in which Article XI-M bonds will be outstanding, the Oregon
Department of Administrative Services shall include in the GovernorÂ’s budget
request to the Legislative Assembly an amount that, when added to the amount on
deposit in the Article XI-M Bond Fund and the Article XI-M Bond Administration
Fund, is sufficient to pay the bond-related costs that are scheduled to come
due in the biennium. [Formerly 286.772]
(Emergency
Services Buildings)
     286A.780
Definitions for ORS 286A.780 to 286A.792. As used in ORS 286A.780 to 286A.792, unless the context requires
otherwise:
     (1) “Article XI-N bonds” means general
obligation bonds or other general obligation indebtedness issued or incurred
under the authority of Article XI-N of the Oregon Constitution.
     (2) “Bond administration fund” means the
Article XI-N Bond Administration Fund established under ORS 286A.786.
     (3) “Bond fund” means the Article XI-N
Bond Fund established under ORS 286A.784.
     (4) “Bond-related costs” means:
     (a) The costs of paying the principal of,
the interest on and the premium, if any, on Article XI-N bonds;
     (b) The costs and expenses of issuing,
administering and maintaining Article XI-N bonds including, but not limited to,
redeeming Article XI-N bonds and paying amounts due in connection with bond
insurance, other credit enhancements or the administrative costs and expenses
of the State Treasurer and the Oregon Department of Administrative Services,
including costs of consultants or advisers retained by the State Treasurer or
the department for the purpose of issuing, administering or maintaining Article
XI-N bonds;
     (c) Capitalized interest on Article XI-N
bonds;
     (d) Costs of funding reserves for Article
XI-N bonds, including costs of surety bonds and similar instruments;
     (e) Rebates or penalties due the United
States Government in connection with Article XI-N bonds; and
     (f) Other costs or expenses that the
Director of the Oregon Department of Administrative Services determines are
necessary or desirable in connection with issuing, administering or maintaining
Article XI-N bonds.
     (5) “Seismic fund” means the Emergency
Services Seismic Fund established under ORS 286A.788.
     (6) “State share of costs” means the total
costs and related expenses of the seismic rehabilitation of emergency services
buildings, minus contributions for seismic rehabilitation from the applicants
as required by the Office of Emergency Management. [Formerly 286.780]
     286A.782
Authority of State Treasurer to issue bonds. (1) Article XI-N bonds are a general obligation of the State of
Oregon and must contain a direct promise on behalf of the State of Oregon to
pay the principal of, the interest on and the premium, if any, on the Article
XI-N bonds. The State of
     (2) The State Treasurer, with the concurrence
of the Director of the Oregon Department of Administrative Services, may issue
Article XI-N bonds as provided in this chapter, subject to the limit on bond
issuance established for the particular biennium pursuant to ORS 286A.035 and
at the request of the Director of the Office of Emergency Management, for the
purpose of financing all or a portion of the state share of costs to plan and
implement seismic rehabilitation of emergency services buildings in the amount
of the state share of costs, plus an amount determined by the State Treasurer
to pay estimated bond-related costs.
     (3) The State Treasurer shall transfer the
net proceeds of Article XI-N bonds issued for the purpose described in
subsection (2)(a) of this section to the Office of Emergency Management for
deposit in the Emergency Services Seismic Fund established under ORS 286A.788. [Formerly
286.782]
     286A.784
Article XI-N Bond Fund; purposes. (1) The Article XI-N Bond Fund is established in the State Treasury,
separate and distinct from the General Fund. Amounts in the bond fund may be
invested as provided in ORS 293.701 to 293.820, and interest earned on the bond
fund must be credited to the bond fund. Amounts credited to the bond fund are
continuously appropriated to the Oregon Department of Administrative Services
for the purpose of paying, when due, the principal of, the interest on and the
premium, if any, on outstanding Article XI-N bonds. The department shall
deposit in the bond fund:
     (a) Capitalized or accrued interest on
Article XI-N bonds;
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the bond fund; and
     (c) Reserves established for the payment
of Article XI-N bonds.
     (2) The department may create separate
accounts in the bond fund for reserves and debt service for each series of
Article XI-N bonds. [Formerly 286.784]
     286A.786
Article XI-N Bond Administration Fund; purposes. (1) The Article XI-N Bond Administration
Fund is established in the State Treasury, separate and distinct from the
General Fund. Amounts in the bond administration fund may be invested as
provided in ORS 293.701 to 293.820, and interest earned on the bond
administration fund must be credited to the bond administration fund. Amounts
credited to the bond administration fund are continuously appropriated to the
Oregon Department of Administrative Services for payment of bond-related costs.
The department shall credit to the bond administration fund:
     (a) Proceeds of Article XI-N bonds that
were issued to pay bond-related costs;
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the bond administration
fund; and
     (c) Amounts transferred from the Emergency
Services Seismic Fund by the Office of Emergency Management as provided in ORS
286A.788.
     (2) The department may create separate
accounts in the bond administration fund. [Formerly 286.786]
     286A.788
Emergency Services Seismic Fund; purposes; rules; fees. (1) The Emergency Services Seismic Fund is
established in the State Treasury, separate and distinct from the General Fund.
Amounts in the seismic fund may be invested as provided in ORS 293.701 to
293.820, and interest earned on the seismic fund must be credited to the
seismic fund. Amounts credited to the seismic fund are continuously
appropriated to the Office of Emergency Management for the purpose described in
ORS 286A.782 (2) and for the purpose of paying bond-related costs. The office
shall deposit in the seismic fund:
     (a) The net proceeds of Article XI-N bonds
transferred pursuant to ORS 286A.782 (3);
     (b) Amounts appropriated or otherwise
provided by the Legislative Assembly for deposit in the seismic fund;
     (c) Gifts, grants or contributions
received by the office for the purpose described in ORS 286A.782 (2); and
     (d) Moneys received as repayment of, as a
return on or in exchange for the grant or loan of net proceeds of Article XI-N
bonds.
     (2) The office may create separate
accounts in the seismic fund as appropriate for the management of moneys in the
seismic fund.
     (3) The office and any other state agency
or other entity receiving or holding net proceeds of Article XI-N bonds shall,
at the direction of the Oregon Department of Administrative Services, take
action necessary to maintain the excludability of interest on Article XI-N
bonds from gross income under the Internal Revenue Code.
     (4) The office shall transfer to the
Article XI-N Bond Administration Fund the unexpended and uncommitted amounts
remaining in the seismic fund if:
     (a) Unexpended funds that are not contractually
committed to a particular purpose remain in the seismic fund on the last day of
the biennium; and
     (b) Article XI-N bonds will be outstanding
in the next biennium.
     (5) The office may adopt rules to carry
out this section including, but not limited to, establishing:
     (a) Required contributions from
applicants;
     (b) Fees;
     (c) Standards, terms and conditions under
which moneys in the seismic fund may be granted, loaned or otherwise made
available; and
     (d) Procedures for distributing and
monitoring the use of moneys from the seismic fund. [Formerly 286.788]
     286A.792
Payment of bond-related costs.
For each biennium in which Article XI-N bonds will be outstanding, the Oregon
Department of Administrative Services shall include in the GovernorÂ’s budget
request to the Legislative Assembly an amount that, when added to the amount on
deposit in the Article XI-N Bond Fund and the Article XI-N Bond Administration
Fund, is sufficient to pay the bond-related costs that are scheduled to come
due in the biennium. [Formerly 286.792]
_______________
Disclaimer: These codes may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.