2007 Oregon Code - Chapter 295 :: Chapter 295 - Depositories of Public Funds and Securities
Chapter 295 —
Depositories of Public Funds and Securities
2007 EDITION
DEPOSITORIES OF PUBLIC FUNDS AND SECURITIES
PUBLIC FINANCIAL ADMINISTRATION
295.001Â Â Â Â Definitions
for ORS 295.001 to 295.108
295.002Â Â Â Â Deposit
of public funds; limitation; exception
295.004Â Â Â Â Conditions
for deposit of funds in excess of specified amounts
295.006Â Â Â Â Bank
depository and public official filings with State Treasurer; rules
295.008Â Â Â Â Conditions
for acting as custodian or bank depository
295.013Â Â Â Â CustodianÂ’s
receipt; duties of custodian
295.015Â Â Â Â Maintenance
of securities by bank depository
295.018Â Â Â Â Increase
in required collateral of bank depository; notifications; failure to increase
collateral
295.022Â Â Â Â Collateral
not required for deferred compensation funds
295.031Â Â Â Â Notice
to public officials regarding adequacy of collateral
295.034Â Â Â Â Withdrawal
of inadequately collateralized funds
295.037Â Â Â Â Distribution
of collateral after loss in bank depository; assessments
295.041Â Â Â Â Subrogation
rights of State Treasurer
295.046Â Â Â Â Limitation
on depository acceptance of public funds from single public official; exception
295.048Â Â Â Â Limitations
on aggregate public funds deposits; notice; exceptions
295.053Â Â Â Â Custodian
duties when bank depository ceases holding public funds; securities
295.056Â Â Â Â Liability
of public officials for loss of public funds
295.061Â Â Â Â Treasurer
reports; filing; notification of changes
295.071Â Â Â Â Investigation
by regulatory bodies other than State Treasurer
295.073Â Â Â Â Report
to State Treasurer of certain actions by Director of Department of Consumer and
Business Services
295.081Â Â Â Â Time
deposits
295.084Â Â Â Â Designation
of depository; collection for claims due state
295.087Â Â Â Â Department
of State Lands to invest proceeds from sales of public lands
295.091Â Â Â Â Preference
in selecting depositories for political subdivisions; apportioning funds;
interest
295.093Â Â Â Â Depositing
moneys with treasurer of political subdivision
295.101Â Â Â Â Public
funds not subject to ORS 295.001 to 295.108
295.106Â Â Â Â State
Treasurer charges; expenses
295.108Â Â Â Â State
Treasurer rules; form of report
295.195Â Â Â Â When
deposit in foreign country authorized; effect on collateral
295.205Â Â Â Â Accounts
in financial institutions outside
     295.001
Definitions for ORS 295.001 to 295.108. As used in ORS 295.001 to 295.108, unless the context requires
otherwise:
     (1) “Adequately capitalized” means a bank
depository that is classified as adequately capitalized by its primary federal
regulatory authority.
     (2) “Bank depository” means an insured
institution or trust company that:
     (a) Maintains a head office or branch in
this state in the capacity of an insured institution or trust company; and
     (b) Complies with ORS 295.008.
     (3) “Business day” means any day other
than a federal or State of Oregon legal holiday or a day on which offices of
the State of Oregon are otherwise authorized by law to remain closed.
     (4) “Credit union depository” means a
credit union as defined in ORS 723.006 or a federal credit union if:
     (a) The shares and deposits of the credit
union or federal credit union are insured by the National Credit Union Share
Insurance Fund; and
     (b) The credit union or federal credit
union maintains a head office or branch in this state in the capacity of a
credit union or federal credit union.
     (5) “Custodian bank” or “custodian” means
one of the following institutions designated by the bank depository for its own
account:
     (a) The Federal Home Loan Bank designated
to serve this state, or any branch of that bank; or
     (b) Any insured institution or trust
company that:
     (A) Is authorized to accept deposits or
transact trust business in this state;
     (B) Complies with ORS 295.008; and
     (C) Has been approved by the State
Treasurer to serve as a custodian bank, if the State Treasurer has approved
custodians under ORS 295.008.
     (6) “Custodian’s receipt” or “receipt”
means a document issued by a custodian bank describing the securities deposited
with it by a bank depository to secure public fund deposits.
     (7) “Depository” means a bank depository
or a credit union depository.
     (8) “Financial institution outside this
state” means a financial institution, as defined in ORS 706.008, that is not an
extranational institution, as defined in ORS 706.008, and is not a bank
depository or credit union depository, as defined in this section.
     (9) “Insured institution” means an insured
institution as defined in ORS 706.008.
     (10) “Loss” means the issuance of an order
by a regulatory or supervisory authority or a court of competent jurisdiction:
     (a) Restraining a bank depository from
making payments of deposit liabilities; or
     (b) Appointing a receiver for a public
depository.
     (11) “Maximum liability” of a bank
depository on any given date means a sum equal to:
     (a) For a well capitalized bank
depository, 10 percent of the greater of:
     (A) All public funds held by the bank
depository, as shown on the most recent treasurer report;
     (B) The average of the balances of public
funds held by the bank depository, as shown on the last four immediately
preceding treasurer reports; or
     (C) An amount otherwise prescribed in ORS
295.001 to 295.108.
     (b) For an adequately capitalized bank
depository, 25 percent of the greater of:
     (A) All public funds held by the bank
depository, as shown on the most recent treasurer report;
     (B) The average of the balances of public
funds held by the bank depository, as shown on the last four immediately
preceding treasurer reports; or
     (C) An amount otherwise prescribed in ORS
295.001 to 295.108.
     (c) For an undercapitalized bank
depository, 110 percent of the greater of:
     (A) All public funds held by the bank
depository; or
     (B) The average of the balances of public
funds held by the bank depository, as shown on the last four immediately
preceding treasurer reports.
     (12) “Net worth” of a bank depository
means:
     (a) The equity capital of the bank
depository, as shown on the immediately preceding report of condition and
income, and may include capital notes and debentures that are subordinate to
the interests of depositors; or
     (b) An amount of equity capital designated
by the State Treasurer.
     (13) “Pledge agreement” means a written
agreement among an insured institution or trust company, the State Treasurer
and a custodian that pledges the securities deposited by the insured
institution or trust company with the custodian as collateral for deposits of
public funds held by the insured institution or trust company. The agreement
must be approved by the board of directors or loan committee of the insured
institution or trust company and must be continuously maintained as a written
record of the insured institution or trust company.
     (14) “Public funds” or “funds” means funds
under the control or in the custody of a public official by virtue of office.
     (15) “Public official” means each officer
or employee of this state or any agency, political subdivision or public or
municipal corporation thereof, or any housing authority, who by law is made the
custodian of or has control of any public funds.
     (16) “Report of condition and income”
means the quarterly report submitted to a bank depositoryÂ’s primary federal
regulatory authority.
     (17) “Security” or “securities” means:
     (a) Obligations of the
     (b) Obligations of the International Bank
for Reconstruction and Development;
     (c) Bonds of any state of the
     (A) That are rated in one of the four
highest grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years in
rating state and municipal bonds; or
     (B) Having once been so rated are ruled to
be eligible securities for the purposes of ORS 295.001 to 295.108,
notwithstanding the loss of such rating;
     (d) Bonds of any county, city, school
district, port district or other public body in the United States payable from
or secured by ad valorem taxes and that meet the rating requirement or are
ruled to be eligible securities as provided in paragraph (c) of this
subsection;
     (e) Bonds of any county, city, school
district, port district or other public body issued pursuant to the
Constitution or statutes of the State of Oregon or the charter or ordinances of
any county or city within the State of Oregon, if the issuing body has not been
in default with respect to the payment of principal or interest on any of its
bonds within the preceding 10 years or during the period of its existence if
that is less than 10 years;
     (f) With the permission of the State
Treasurer and in accordance with rules adopted by the State Treasurer, loans
made to any county, city, school district, port district or other public body
in the State of Oregon, if the borrower has not been in default with respect to
the payment of principal or interest on any of its loans within the preceding
10 years or during the period of its existence if that is less than 10 years;
     (g) With the permission of the State
Treasurer and in accordance with rules adopted by the State Treasurer, bond
anticipation notes issued, sold or assumed by an authority under ORS 441.560;
     (h) Bonds, notes, letters of credit or
other securities or evidence of indebtedness constituting the direct and
general obligation of a federal home loan bank or Federal Reserve bank;
     (i) Debt obligations of domestic
corporations that are rated in one of the three highest grades by a recognized
investment service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating corporate debt
obligations; and
     (j) Collateralized mortgage obligations
and real estate mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years in
rating corporate debt obligations.
     (18) “Treasurer report” means a written
report signed or authenticated by an officer of a bank depository setting forth
as of the close of business on a specified date:
     (a) The total amount of public funds on
deposit with the bank depository;
     (b) The net worth of the bank depository;
     (c) The amount and nature of eligible
collateral then on deposit with its custodian to collateralize the bank
depositoryÂ’s public funds deposits; and
     (d) The identity of its custodian.
     (19) “Treasurer report due date” means a
date not less than 10 business days after the date a bank depositoryÂ’s report
of condition and income is due to be submitted to its federal regulatory
authority.
     (20) “Trust company” means a trust company
as defined in ORS 706.008.
     (21) “Undercapitalized” means a bank
depository that is classified as undercapitalized by its primary federal
regulatory authority.
     (22) “Value” means the current market
value of securities.
     (23) “Well capitalized” means a bank
depository that is classified as well capitalized by its primary federal
regulatory authority. [Formerly 295.005]
     Note: The amendments to 295.001 (formerly 295.005)
by section 15a, chapter 871, Oregon Laws 2007, become operative July 1, 2008,
and apply to all public funds on deposit on or after July 1, 2008. See sections
36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40,
chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008,
including amendments by section 123, chapter 783, Oregon Laws 2007, is set
forth for the userÂ’s convenience.
     295.001. As used in ORS 295.001 to 295.125, unless
the context requires otherwise:
     (1) “Certificate of participation” or “certificate”
means a nonnegotiable document issued by a pool manager to a public official.
     (2) “Custodian bank” or “custodian” means
the following institutions designated by the depository bank for its own
account:
     (a) The Federal Reserve Bank designated to
serve this state, or any branch of that bank;
     (b) The Federal Home Loan Bank designated
to serve this state, or any branch of that bank;
     (c) Any insured institution or trust
company, as those terms are defined in ORS 706.008, that is authorized to
accept deposits or transact trust business in this state and that complies with
ORS 295.008; and
     (d) The fiscal agency of the State of
Oregon, duly appointed and acting as such agency pursuant to ORS 286A.132.
     (3) “Custodian’s receipt” or “receipt”
means a document issued by a custodian bank to a pool manager describing the
securities deposited with it by a depository bank to secure public fund
deposits.
     (4) “Depository bank” or “depository”
means an insured institution or trust company, as those terms are defined in
ORS 706.008, a credit union, as defined in ORS 723.006, the shares and deposits
of which are insured by the National Credit Union Share Insurance Fund, or a
federal credit union, if the institution, trust company or credit union:
     (a) Maintains a head office or a branch in
this state in the capacity of an insured institution, trust company, credit
union or federal credit union; and
     (b) In the case of an insured institution
or trust company, complies with ORS 295.008.
     (5) “Pool manager” means:
     (a) The State Treasurer;
     (b) Any insured institution or trust
company, as those terms are defined in ORS 706.008, a credit union, as defined
in ORS 723.006, the shares and deposits of which are insured by the National
Credit Union Share Insurance Fund, or a federal credit union, if the
institution, trust company or credit union:
     (A) Is authorized to accept deposits or
transact trust business in this state; and
     (B) In the case of an insured institution
or trust company, complies with ORS 295.008;
     (c) The Federal Reserve Bank designated to
serve this state, or any branch of that bank; or
     (d) The Federal Home Loan Bank designated
to serve this state, or any branch of that bank.
     (6) “Public funds” or “funds” means funds
under the control or in the custody of a public official by virtue of office.
     (7) “Security” or “securities” means:
     (a) Obligations of the
     (b) Obligations of the International Bank
for Reconstruction and Development;
     (c) Bonds of any state of the
     (A) That are rated in one of the four
highest grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years in
rating state and municipal bonds; or
     (B) Having once been so rated are ruled to
be eligible securities for the purposes of ORS 295.001 to 295.125,
notwithstanding the loss of such rating;
     (d) Bonds of any county, city, school
district, port district or other public body in the United States payable from
ad valorem taxes levied generally on substantially all property within the
issuing body and that meet the rating requirement or are ruled to be eligible
securities as provided in paragraph (c) of this subsection;
     (e) Bonds of any county, city, school
district, port district or other public body issued pursuant to the
Constitution or statutes of the State of Oregon or the charter or ordinances of
any county or city within the State of Oregon, if the issuing body has not been
in default with respect to the payment of principal or interest on any of its bonds
within the preceding 10 years or during the period of its existence if that is
less than 10 years;
     (f) Bond anticipation notes issued, sold
or assumed by an authority under ORS 441.560;
     (g) One-family to four-family housing
mortgage loan notes related to property situated in the State of Oregon, which
are owned by a depository bank, no payment on which is more than 90 days past
due, and which are eligible collateral for loans from the Federal Reserve Bank
of San Francisco under section 10(b) of the Federal Reserve Act and regulations
thereunder;
     (h) Bonds, notes, letters of credit or
other securities or evidence of indebtedness constituting the direct and
general obligation of a federal home loan bank or Federal Reserve bank;
     (i) Debt obligations of domestic
corporations that are rated in one of the three highest grades by a recognized
investment service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating corporate debt
obligations;
     (j) Collateralized mortgage obligations
and real estate mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years in
rating corporate debt obligations; and
     (k) One-family to four-family housing
mortgages that have been secured by means of a guarantee as to full repayment
of principal and interest by an agency of the United States Government,
including the Government National Mortgage Association, the Federal National
Mortgage Association and the Federal Home Loan Mortgage Corporation.
     (8) “Public official” means each officer
or employee of this state or any agency, political subdivision or public or
municipal corporation thereof who by law is made the custodian of or has
control of any public funds.
     (9) “Value” means the current market value
of securities.
     295.002
Deposit of public funds; limitation; exception. (1) Any public official may retain
undeposited such reasonable cash working fund as is fixed by the governing body
of the political subdivision or public corporation for which the public
official acts. Except to the extent of such cash working fund, each public
official shall deposit public funds in the custody or control of the public
official in one or more depositories currently qualified pursuant to ORS
295.001 to 295.108. The public official may not have on deposit in any one
credit union depository an aggregate sum in excess of the deposit insurance
limits established by the National Credit Union Administration. With respect to
bank depositories, unless a bank depository has entered into the agreement
described in ORS 295.008 (2)(b) and has deposited securities pursuant to ORS
295.015 (1), the public official shall not have on deposit in any one bank
depository and its branches a sum in excess of:
     (a) The amount insured by the Federal
Deposit Insurance Corporation; or
     (b) For any amount over the amount insured
by the Federal Deposit Insurance Corporation, the amount insured or guaranteed
by private deposit insurance or a deposit guaranty bond issued by an insurance
company rated A- or better by a recognized insurance rating service.
     (2) Compliance with ORS 295.001 to 295.108
relieves the public official of personal liability on account of the loss of
the public funds in the custody or control of the public official. [Formerly
295.025]
     Note: The amendments to 295.002 (formerly 295.025)
by section 19, chapter 871, Oregon Laws 2007, become operative July 1, 2008,
and apply to all public funds on deposit on or after July 1, 2008. See sections
36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40,
chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008,
is set forth for the userÂ’s convenience.
     295.002. (1) Any public official may retain
undeposited such reasonable cash working fund as is fixed by the governing body
of the political subdivision or public corporation for which the public
official acts. Except to the extent of such cash working fund, each public
official shall deposit public funds in the custody or control of the public
official in one or more depositories currently qualified pursuant to ORS
295.001 to 295.125. The public official may not have on deposit in any one
depository bank that is a credit union or federal credit union an aggregate sum
in excess of $100,000. With respect to other depository banks, the public
official, without procuring certificates of participation issued by the pool
manager of the depository in an amount equal to the excess deposit, shall not
have on deposit in any one depository bank and its branches a sum in excess of:
     (a) The amount insured by the Federal
Deposit Insurance Corporation; or
     (b) For any amount over the amount insured
by the Federal Deposit Insurance Corporation, the amount insured or guaranteed
by private deposit insurance or a deposit guaranty bond issued by an insurance
company rated A- or better by a recognized insurance rating service.
     (2) Whenever a public official holds a
certificate of participation issued by a pool manager in an amount exceeding
the amount required by subsection (1) of this section, upon the written request
of the depository bank the public official shall surrender it to the pool manager
or direct the pool manager in writing to cancel it in whole or in a designated
part.
     (3) Compliance with ORS 295.001 to 295.125
relieves the public official of personal liability on account of the loss of
the public funds in the custody or control of the public official.
     295.004
Conditions for deposit of funds in excess of specified amounts. (1) A public official may deposit public
funds in a bank depository in an amount in excess of the amount allowed in ORS
295.002 without requiring the bank depository to show that it has entered into
the agreement described in ORS 295.008 (2)(b) or deposited securities pursuant
to ORS 295.015 (1) if the funds are initially deposited into a bank depository
in Oregon and the Oregon bank depository participates in a program through
which:
     (a) The Oregon bank depository arranges
for deposit of the funds into one or more certificates of deposit or time
deposits issued by other financial institutions in the
     (b) Each certificate of deposit or time
deposit is fully insured by the Federal Deposit Insurance Corporation;
     (c) The Oregon bank depository administers
the funds on behalf of the public official; and
     (d) Other financial institutions
participating in the program place funds into the
     (2) Until the Oregon bank depository
places public funds into one or more certificates of deposit or time deposits
as provided in subsection (1) of this section, any public funds held by the
Oregon bank depository pending such placement that are in excess of the amounts
allowed in ORS 295.002 must be collateralized as provided in ORS 295.001 to
295.108 for other public funds deposits.
     (3) The provisions of ORS 295.006,
295.013, 295.015, 295.018 and 295.037 do not apply to public funds deposits
deposited into a bank depository in
     Note: The amendments to 295.004 (formerly 295.027)
by section 20, chapter 871, Oregon Laws 2007, become operative July 1, 2008,
and apply to all public funds on deposit on or after July 1, 2008. See sections
36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40,
chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008,
is set forth for the userÂ’s convenience.
     295.004. (1) A public official may deposit public
funds in an amount in excess of the amount allowed in ORS 295.002 without
procuring a certificate of participation if the funds are initially deposited
into a depository in Oregon and the Oregon depository participates in a program
through which:
     (a) The
     (b) Each certificate of deposit or time
deposit is fully insured by the Federal Deposit Insurance Corporation;
     (c) The
     (d) Other financial institutions
participating in the program place funds into the
     (2) The provisions of ORS 294.035 and
295.001 requiring deposit of public funds into depositories that have offices
or branches in
     (3) As used in this section, “public funds”
and “public official” have the meanings given those terms in ORS 295.001.
     295.005 [1967 c.451 §1; 1973 c.157 §4; 1973 c.288 §2;
1973 c.378 §1; 1973 c.797 §426; 1975 c.515 §8; 1981 c.440 §2; 1983 c.104 §3;
1983 c.456 §4; 1985 c.439 §1; 1985 c.565 §51; 1987 c.524 §1; 1989 c.536 §1;
1991 c.352 §6; 1993 c.74 §1; 1993 c.229 §23; 1993 c.318 §12; 1997 c.631 §447;
1999 c.311 §1; 1999 c.412 §3; 2003 c.195 §17; 2003 c.405 §2; 2005 c.443 §§32,32a;
2007 c.783 §123; 2007 c.871 §15a; renumbered 295.001 in 2007]
     295.006
Bank depository and public official filings with State Treasurer; rules. (1) Each bank depository shall keep on file
with the State Treasurer the name and address of its custodian bank.
     (2) Each public official shall keep on
file with the State Treasurer the names, addresses and such other information
as the State Treasurer shall prescribe by rule of each depository in which the
public official deposits public funds. [Formerly 295.055]
     Note: The amendments to 295.006 (formerly 295.055)
by section 22, chapter 871, Oregon Laws 2007, become operative July 1, 2008,
and apply to all public funds on deposit on or after July 1, 2008. See sections
36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40,
chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008,
is set forth for the userÂ’s convenience.
     295.006. Each depository bank shall keep on file with
the State Treasurer the names and addresses of each of its custodian banks and
pool managers.
     295.008
Conditions for acting as custodian or bank depository. (1)(a) An insured institution or trust
company may not be a custodian bank under ORS 295.001 to 295.108, unless it
certifies in writing to the State Treasurer that it will furnish the reports
required under ORS 714.075 to the Director of the Department of Consumer and
Business Services.
     (b) The State Treasurer may approve one or
more insured institutions or trust companies to serve as custodians for bank
depositories. The State Treasurer shall promptly notify all bank depositories
of the approval of an insured institution or trust company to serve as a
custodian.
     (2) An insured institution or trust
company may not be a bank depository under ORS 295.001 to 295.108, unless it:
     (a) Certifies in writing to the State
Treasurer that it will furnish the reports required under ORS 714.075 to the
Director of the Department of Consumer and Business Services;
     (b) Except as provided in subsection (4)
of this section, enters into a pledge agreement; and
     (c) Complies with subsection (3) of this
section.
     (3) After July 1, 2008, any insured
institution or trust company that is not acting as a bank depository on July 1,
2008, and that wishes to become a bank depository shall file with the State
Treasurer an initial written report signed or authenticated by an officer of
the insured institution or trust company setting forth, as of the date the
insured institution or trust company intends to commence acting as a bank
depository:
     (a) The estimated total amount of public
funds that will be on deposit with the insured institution or trust company;
     (b) The estimated net worth of the insured
institution or trust company;
     (c) The amount and nature of the
collateral that will be deposited with its custodian to collateralize the
public funds deposits; and
     (d) The identity of its custodian.
     (4) An insured institution or trust
company may be a bank depository under ORS 295.001 to 295.108 without entering
into a pledge agreement or complying with subsection (3) of this section if the
insured institution or trust company does not hold any funds on deposit for a
public official that exceed the limits specified in ORS 295.002 for that type
of depository. The provisions of ORS 295.006, 295.013, 295.015, 295.018,
295.037 and 295.061 do not apply to an insured institution or trust company
that is a bank depository under this subsection. [2005 c.112 §3; 2007 c.871 §16]
     Note: The amendments to 295.008 by section 16,
chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all
public funds on deposit on or after July 1, 2008. See sections 36 and 37,
chapter 871, Oregon Laws 2007, as amended by sections 39 and 40, chapter 871,
Oregon Laws 2007. The text that is operative until July 1, 2008, is set forth
for the userÂ’s convenience.
     295.008. (1)(a) An insured institution or trust
company described in ORS 295.001 (2)(c) may not be a custodian bank under ORS
295.001 to 295.125, unless it certifies in writing to the State Treasurer that
it will furnish the reports required under ORS 714.075 to the Director of the
Department of Consumer and Business Services.
     (b) With the approval of the State
Treasurer, a depository bank may be a custodian bank with respect to its own
securities.
     (2) An insured institution or trust
company described in ORS 295.001 (4) may not be a depository bank under ORS
295.001 to 295.125, unless it:
     (a) Certifies in writing to the State
Treasurer that it will furnish the reports required under ORS 714.075 to the
Director of the Department of Consumer and Business Services; and
     (b) Except as provided in subsection (3)
of this section, enters into a written agreement with the State Treasurer and a
custodian that pledges the securities deposited by the insured institution or
trust company with the custodian as collateral for deposits of public funds
held by the insured institution or trust company. The agreement must be
approved by the board of directors or loan committee of the insured institution
or trust company and shall be continuously maintained as a written record of
the insured institution or trust company.
     (3) An insured institution or trust
company described in ORS 295.001 (4) may be a depository bank under ORS 295.001
to 295.125 without entering into the agreement described in subsection (2) of
this section if the insured institution or trust company does not hold any funds
on deposit for a public official that exceed the limits specified in ORS
295.002 for that type of depository. The provisions of ORS 295.006, 295.013,
295.015, 295.018, 295.045, 295.065, 295.105 and 295.185 do not apply to an
insured institution or trust company that is a depository bank under this
subsection.
     (4) An insured institution or trust
company may not be a pool manager with respect to securities that it deposits
with its custodians as collateral for the security of public fund deposits, and
an insured institution or trust company may not be a pool manager unless it
certifies in writing to the State Treasurer that it will furnish the reports
required under ORS 714.075 to the Director of the Department of Consumer and
Business Services.
     Note: Section 33, chapter 871, Oregon Laws 2007,
provides:
     Sec.
33. On or before July 1,
2008, each insured institution and trust company that wishes to act as a bank
depository under ORS 295.005 to 295.165 [renumbered 295.001 to 295.108] from
and after July 1, 2008, shall file with the State Treasurer an initial written
report signed or authenticated by an officer of the insured institution or
trust company, together with an executed copy of its pledge agreement. The
report shall set forth:
     (1) The estimated total amount of public
funds that will be on deposit with the insured institution or trust company as
of July 1, 2008;
     (2) The estimated net worth of the insured
institution or trust company on July 1, 2008;
     (3) The amount and nature of the
collateral that will be deposited with its custodian to collateralize the
public funds deposits; and
     (4) The identity of its custodian. [2007
c.871 §33]
     295.010 [Amended by 1953 c.352 §3; 1957 c.172 §1;
1965 c.169 §1; repealed by 1967 c.451 §32]
     295.011 [2005 c.112 §4; 2005 c.443 §32c; 2007 c.783 §124;
renumbered 295.101 in 2007]
     295.013
CustodianÂ’s receipt; duties of custodian. (1) Upon receipt of securities from the bank depository, the custodian
bank shall issue to the State Treasurer, with a copy to the bank depository, a
custodianÂ’s receipt describing the securities.
     (2) Each custodian shall:
     (a) Maintain an accurate inventory of the
securities of each bank depository described in the custodianÂ’s receipts issued
by the custodian to the State Treasurer, and adjust the inventory to reflect
withdrawals and substitutions of securities previously inventoried.
     (b) Appraise the value of the securities
added to and withdrawn from the inventory of the bank depository, and appraise
the value of the entire inventory of the bank depository on the last day of
each month and at such other times as the State Treasurer directs.
     (c) Provide a monthly report to the State
Treasurer listing the securities pledged by each bank depository and setting
forth the value of each security and of the entire inventory of securities
pledged by the bank depository.
     (d) Notify a bank depository in writing
whenever the value of the securities held by the custodian for the bank
depository is less than:
     (A) For a bank depository that is subject
to increased collateral requirements under ORS 295.018, 110 percent of the
greater of:
     (i) All public funds held by the bank
depository; or
     (ii) The average of the balances of public
funds held by the bank depository, as shown on the last four immediately
preceding treasurer reports; or
     (B) For a bank depository that is not
subject to increased collateral requirements under ORS 295.018, the maximum
liability for the bank depository.
     (e) Notify the State Treasurer in writing
if a bank depository fails to increase the value of its securities within five
business days after receipt of notice under paragraph (d) of this subsection.
     (f) Notify the State Treasurer in writing
if a bank depository increases the value of its securities to an adequate
amount after receipt of notice under paragraph (d) of this subsection.
     (g) Notify the State Treasurer whenever a
bond in the inventory of a bank depository no longer meets the rating
requirements described in ORS 295.001 (17)(c) or (d). [Formerly 295.035]
     Note: The amendments to 295.013 (formerly 295.035)
by section 21, chapter 871, Oregon Laws 2007, become operative July 1, 2008,
and apply to all public funds on deposit on or after July 1, 2008. See sections
36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40,
chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008,
is set forth for the userÂ’s convenience.
     295.013. Upon receipt of securities from the
depository bank, the custodian bank shall issue to the pool manager designated
by the depository a custodianÂ’s receipt describing the securities.
     295.015
Maintenance of securities by bank depository. Except as provided in ORS 295.018:
     (1)(a) Each bank depository throughout the
period of its possession of public fund deposits in excess of the amounts
insured or guaranteed as described in ORS 295.002 (1)(a) and (b) shall maintain
on deposit with its custodian, at its own expense, securities having a value at
least equal to its maximum liability and as otherwise prescribed in ORS 295.001
to 295.108. Such collateral shall be deposited with the bank depositoryÂ’s
custodian and shall be clearly designated as security for the benefit of
depositors of public funds under ORS 295.001 to 295.108.
     (b) For purposes of this section, when
pledged as collateral for public funds deposits, loans described in ORS 295.001
(17)(f) shall be discounted to 75 percent of the unpaid principal balance owing
on the loan from time to time, or to a lower value determined by the State
Treasurer from time to time.
     (c) When a bond anticipation note is
pledged as collateral for public funds deposits, if there is no readily
determinable market value for the note, it shall be discounted to 75 percent of
the unpaid principal balance owing on the note from time to time, or to a lower
value determined by the State Treasurer from time to time.
     (2) The bank depository may deposit other
eligible securities with its custodian and withdraw from deposit securities
theretofore pledged to secure deposits of public funds, if the remaining
securities have a value not less than its maximum liability. The State
Treasurer shall execute such releases and surrender such custodianÂ’s receipts
as are appropriate to effect substitutions and withdrawals of matured and
excess pledged securities.
     (3) If a bank depository’s maximum
liability increases because it ceases to be a well capitalized bank depository
or because it ceases to be an adequately capitalized bank depository, within
five business days after the date on which the bank depositoryÂ’s maximum
liability increases, the bank depository shall:
     (a) Notify its custodian and the State
Treasurer in writing that the bank depositoryÂ’s maximum liability has
increased, setting forth the bank depositoryÂ’s new maximum liability; and
     (b) Tender to its custodian additional
securities having sufficient value to increase the total value of its
securities pledged as collateral for public funds deposits to the new maximum
liability of the bank depository.
     (4) If a bank depository’s maximum
liability decreases because it moves from being an undercapitalized bank
depository to being a well capitalized bank depository or an adequately
capitalized bank depository, or because it moves from being an adequately
capitalized bank depository to a well capitalized bank depository, the bank
depository may:
     (a) Notify its custodian and the State
Treasurer in writing that the bank depositoryÂ’s maximum liability has
decreased, setting forth the bank depositoryÂ’s new maximum liability; and
     (b) With the written approval of the State
Treasurer, withdraw from its custodian any securities that exceed the bank
depositoryÂ’s new maximum liability.
     (5) The State Treasurer shall act upon
requests for releases and withdrawals of securities under subsections (2) and
(4)(b) of this section within three business days after the receipt of each
request. [1967 c.451 §2; 1975 c.515 §3; 2007 c.871 §17]
     Note: The amendments to 295.015 by section 17,
chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all
public funds on deposit on or after July 1, 2008. See sections 36 and 37,
chapter 871, Oregon Laws 2007, as amended by sections 39 and 40, chapter 871,
Oregon Laws 2007. The text that is operative until July 1, 2008, is set forth
for the userÂ’s convenience.
     295.015. Except as provided in ORS 295.018:
     (1) Each depository throughout the period
of its possession of public fund deposits shall maintain on deposit with its
custodians, at its own expense, securities having a value not less than 25
percent of the certificates of participation issued by its pool manager.
     (2) The depository may deposit other
eligible securities with its custodian and withdraw from deposit securities
theretofore pledged to secure deposits of public funds, if the remaining securities
have a value not less than 25 percent of outstanding certificates of
participation of the pool manager. The pool manager shall execute such releases
and surrender such custodianÂ’s receipts as are appropriate to effect
substitutions and withdrawals of excess pledged securities.
     295.018
Increase in required collateral of bank depository; notifications; failure to
increase collateral. (1) The
State Treasurer may require any bank depository during any period when it has
in its possession public fund deposits to maintain on deposit with its
custodians securities having a value not less than 110 percent of the greater
of:
     (a) All public funds held by the bank
depository; or
     (b) The average of the balances of public
funds held by the bank depository, as shown on the last four immediately
preceding treasurer reports.
     (2) An increase in collateral under
subsection (1) of this section shall be ordered upon the advice of the Director
of the Department of Consumer and Business Services. If the bank depository is
a national bank or a federally chartered savings bank or savings and loan
association, in giving advice to the State Treasurer the director may rely
exclusively on information provided to the director by federal regulatory
agencies and by the association on forms prescribed by the director. As a
condition of being analyzed and reviewed by the director, a federal association
shall agree and consent to provide the director with accurate, pertinent and
timely information.
     (3) Failure of the director to inform the
State Treasurer of the condition of any bank depository does not give any
public depositor any right or impose any liability on the director. The State
Treasurer shall not be liable to any public depositor or to any bank depository
for increasing or not increasing the collateral requirement as authorized in
subsection (1) of this section.
     (4) Any bank depository notified by the
State Treasurer of the increased collateral requirement shall comply with the
order within five business days by increasing the collateral in the same manner
as required for the initial deposit of collateral in ORS 295.015 and, within
the same five days, shall notify the State Treasurer of its compliance by
supplying copies of the custodianÂ’s receipts for, or statement of activity
showing, the increased collateral.
     (5)(a) If the State Treasurer does not
receive the notice required in subsection (4) of this section within the
required five business days, the State Treasurer shall immediately notify the
director of the failure and shall send notice to all public officials served by
that bank depository of its failure to comply.
     (b) If, after giving notice as required by
paragraph (a) of this subsection, the State Treasurer receives notice that the
bank depository is in compliance with the increased collateral requirements,
the treasurer shall notify the public officials served by the bank depository
that the bank depository is once again in compliance.
     (6) A bank depository that does not comply
with subsection (4) of this section shall accept no further public funds
deposits that are not insured by the Federal Deposit Insurance Corporation.
     (7) The names of financial institutions
contained in records received or compiled by the State Treasurer pursuant to
the provisions of this section shall be exempt from public disclosure unless
the public interest requires disclosure in the particular instance. [1975 c.515
§2; 1981 c.440 §1; 1985 c.762 §182; 1987 c.373 §§28a,28b; 1987 c.554 §1; 1989
c.171 §41; 1991 c.327 §1; 2007 c.871 §18]
     Note: The amendments to 295.018 by section 18,
chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all
public funds on deposit on or after July 1, 2008. See sections 36 and 37,
chapter 871, Oregon Laws 2007, as amended by sections 39 and 40, chapter 871,
Oregon Laws 2007. The text that is operative until July 1, 2008, is set forth
for the userÂ’s convenience.
     295.018. (1) The State Treasurer may require any
depository bank during any period when it has in its possession public fund deposits
to maintain on deposit with its custodians securities having a value not less
than 110 percent of the certificates of participation issued by its pool
manager. The increase in collateral shall be ordered upon the advice of the
Director of the Department of Consumer and Business Services. If the depository
bank is a federally chartered savings and loan association, in giving its
advice to the State Treasurer the director may rely exclusively on information
provided to the director by federal regulatory agencies and by the association
on forms prescribed by the director; as a condition of being analyzed and
reviewed by the director, a federal association shall agree and consent to
provide the director with accurate, pertinent and timely information.
     (2) Failure of the director to inform the
State Treasurer of the condition of any depository does not give any public
depositor any right or impose any liability on the director. The State
Treasurer shall not be liable to any public depositor or to any depository bank
for increasing or not increasing the collateral requirement as authorized in
subsection (1) of this section.
     (3) Any depository bank notified by the
State Treasurer of the increased collateral requirement shall comply with the
order within 10 business days by increasing the collateral in the same manner
as required for the initial deposit of collateral in ORS 295.015. The bank
shall notify the State Treasurer and the pool manager of its compliance by
supplying copies of the custodianÂ’s receipts for the increased collateral.
     (4) If any depository bank notified by the
State Treasurer of an increased collateral requirement fails to notify the
State Treasurer of compliance therewith within 10 business days, the State
Treasurer shall immediately notify the director of the failure and shall send
notice to the pool manager and all public depositors served by that depository
bank of its failure to comply.
     (5) A depository bank described in
subsection (4) of this section shall accept no further public deposits.
     (6) Financial institutions named in
records received or compiled by the State Treasurer pursuant to the provisions
of this section shall be exempt from public disclosure unless the public
interest requires disclosure in the particular instance.
     295.020 [Repealed by 1967 c.451 §32]
     295.022
Collateral not required for deferred compensation funds. Notwithstanding any other provision of this
chapter, when a bank, mutual savings bank or savings and loan association
receives moneys of the Deferred Compensation Fund established under ORS 243.411
from the state for deposit or investment, the institution shall not have to
maintain the collateral required under this chapter for those deferred
compensation moneys. [1977 c.721 §15; 1997 c.179 §27]
     295.025 [1967 c.451 §3; 1973 c.288 §3; 1999 c.48 §1;
2003 c.405 §6; 2007 c.871 §19; renumbered 295.002 in 2007]
     295.027 [2005 c.58 §1; 2007 c.871 §20; renumbered
295.004 in 2007]
     295.030 [Repealed by 1967 c.451 §32]
     295.031
Notice to public officials regarding adequacy of collateral. (1) Within five business days after the
State Treasurer receives notice from a custodian pursuant to ORS 295.013 (2)(e)
indicating that a bank depository has failed to pledge adequate collateral with
its custodian, the treasurer shall send written notice of the failure to each
public official who has public funds on deposit in the bank depository with
respect to which the notice under ORS 295.013 (2)(e) was given.
     (2) Within five business days after the
State Treasurer receives notice from a custodian pursuant to ORS 295.013 (2)(f)
indicating that a bank depository has once again pledged adequate collateral
with its custodian, the treasurer shall send written notice to each public
official who was notified under subsection (1) of this section stating that the
bank depository once again has adequate collateral. [2007 c.871 §2]
     Note: ORS 295.031, 295.034, 295.037, 295.041,
295.046, 295.048, 295.053, 295.056, 295.061, 295.071, 295.073, 295.106 and
295.108 become operative July 1, 2008, and apply to all public funds on deposit
on or after July 1, 2008. See sections 36 and 37, chapter 871, Oregon Laws
2007, as amended by sections 39 and 40, chapter 871, Oregon Laws 2007.
     295.034
Withdrawal of inadequately collateralized funds. (1) Within 20 business days after a public
official receives a notice from the State Treasurer pursuant to ORS 295.018
(5)(a) or 295.031 (1), the public official shall withdraw from the bank
depository to which the notice applies all public funds deposits except those
deposits that are insured by the Federal Deposit Insurance Corporation.
     (2) If a public official receives a notice
from the State Treasurer pursuant to ORS 295.018 (5)(a) or 295.031 (1),
beginning 20 business days after the public official receives the notice, the
public official may not deposit into the bank depository to which the notice
applies any public funds deposits if, as a result of such a deposit, the total
public funds of the public official on deposit with the bank depository exceed the
deposit insurance limit of the Federal Deposit Insurance Corporation. The
prohibition on deposits continues until the public official receives notice
under ORS 295.018 (5)(b) or 295.031 (2) indicating that the bank depository is
in compliance with ORS 295.013 or 295.018, as applicable.
     (3) Except as required by any applicable
law or regulation, a bank depository may not impose any early withdrawal
penalty or any forfeiture of interest with respect to a withdrawal made by a
public official pursuant to this section. [2007 c.871 §3]
     Note: See note under 295.031.
     295.035 [1967 c.451 §4; 2007 c.871 §21; renumbered
295.013 in 2007]
     295.037
Distribution of collateral after loss in bank depository; assessments. (1) The deposit of securities by a bank
depository with its custodian pursuant to ORS 295.001 to 295.108 constitutes
consent by the bank depository to the disposition of the securities in
accordance with this section.
     (2) When a loss has occurred in a bank
depository, the bank depository shall as soon as possible make payment to the
proper public officials of all funds subject to the loss, pursuant to the
following procedures:
     (a) The Director of the Department of
Consumer and Business Services or the receiver shall, within 20 days after the
issuance of a restraining order or taking possession of any bank depository,
ascertain the amount of public funds on deposit in the bank depository as
disclosed by its records and the amount of the public funds covered by deposit
insurance and certify the amounts to the State Treasurer and to each public
official who has public funds on deposit in the bank depository.
     (b) Each public official who has public
funds on deposit in the bank depository shall, within 10 days after receipt of
the certification from the Director of the Department of Consumer and Business
Services or the receiver, furnish to the State Treasurer verified statements of
the public funds that the public official has on deposit in the bank
depository.
     (3) Upon receipt of the certification from
the Director of the Department of Consumer and Business Services or the
receiver and the verified statements from the public officials who have public
funds on deposit in the bank depository, the State Treasurer shall ascertain
and fix the amount of public funds on deposit in the bank depository, plus
interest to the date the funds are distributed to the public official at the
rate the bank depository agreed to pay on the funds, minus any amount covered
by deposit insurance.
     (4) After making the calculation described
in subsection (3) of this section, the State Treasurer shall assess the net
amount of public funds against all bank depositories, as follows:
     (a) First, against the bank depository
that suffered the loss, to the extent of the full value of its collateral
deposited with its custodian pursuant to ORS 295.001 to 295.108; and
     (b) Second, against the collateral of all
other bank depositories, on a proportionate basis determined as provided in
subsection (5) of this section.
     (5) For purposes of subsection (4) of this
section, the proportionate share of each of the other bank depositories shall
be determined by:
     (a) Averaging the amounts of the total
public funds deposits reported on the bank depositoryÂ’s last four treasurer
reports;
     (b) Averaging the total amounts of the
total public funds deposits reported on the last four treasurer reports of all
of the bank depositories; and
     (c) Dividing the result of the calculation
performed under paragraph (a) of this subsection by the result of the calculation
performed under paragraph (b) of this subsection.
     (6) Notwithstanding the assessment
provisions of subsection (4) of this section, the State Treasurer shall assess
the net amount of public funds deposits of a public official only against the
bank depository that suffered the loss, and not against the collateral of other
bank depositories, if the public official:
     (a) Was given appropriate notice about the
bank depository by the State Treasurer under ORS 295.018 (5)(a) or 295.031 (1);
and
     (b) The public official did not comply
with ORS 295.034.
     (7) Assessments made by the State
Treasurer are payable on the fifth business day following demand. If any bank
depository fails to pay its assessment, the State Treasurer shall take
possession of the securities segregated as collateral by the bank depository
and liquidate the securities for the purpose of paying the assessment.
     (8) The State Treasurer shall distribute
the net proceeds of the assessments and of any liquidated collateral, to the
extent that they do not exceed the total net amount of public funds deposits
and accrued interest claimed by the public officials, among the public
officials entitled to the proceeds in proportion to the public officialsÂ’
respective claims.
     (9) If the net proceeds of the assessments
and of any liquidated collateral are inadequate, after all other available
sources are applied, to meet the total claims of the public officials entitled
to the proceeds, the public officials may make claims against the closed bank
depository as general creditors.
     (10) The prohibition on transfers of
assets set forth in ORS 711.410 does not apply to assessments, payments,
transfers or sales of securities made pursuant to this section. [2007 c.871 §4]
     Note: See note under 295.031.
     295.040 [Amended by 1959 c.330 §1; 1963 c.128 §1;
1965 c.629 §1; repealed by 1967 c.451 §32]
     295.041
Subrogation rights of State Treasurer. Upon the distribution of the proceeds of assessments and liquidated
collateral pursuant to ORS 295.037 by the State Treasurer to any public
official, the State Treasurer shall be subrogated to all of the right, title
and interest of the public official against the closed bank depository, and
shall share in any distribution of its assets ratably with other depositors.
Any sums received from any distribution shall be paid to the public officials
to the extent of any unpaid net deposit liability and the balance remaining
shall be paid to the bank depositories against which the assessments were made,
pro rata in proportion to the assessments actually paid by each bank
depository. However, the closed bank depository may not share in any
distribution of the balance remaining. If the State Treasurer incurs expenses
in enforcing the treasurerÂ’s rights under this section, the expenses may be
charged as provided in ORS 295.106. The State Treasurer shall submit a claim
for expenses to the bank depository, and if the charges are thereafter paid to
the treasurer, they shall be treated as a liquidation expense of the closed
bank depository. [2007 c.871 §6]
     Note: See note under 295.031.
     295.045 [1967 c.451 §5; repealed by 2007 c.871 §35]
     Note: 295.045 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.045 is
set forth for the userÂ’s convenience.
     295.045
Designation of pool managers; procedure for changing managers. Each depository bank shall designate one or
more pool managers as provided in ORS 295.001 to 295.125; but it shall
designate only one pool manager to function with respect to the public fund
deposits and the security therefor of a single public official. If the
depository elects to change pool managers, the public official shall surrender
certificates of participation issued by the former pool manager in exchange for
certificates of like amount issued by the successor pool manager, and the
former pool manager shall cause the custodian to deliver to the successor pool
manager custodianÂ’s receipts for security no longer required to support its
outstanding certificates of participation. Such transactions may be arranged by
escrows or otherwise, as the parties agree.
     295.046
Limitation on depository acceptance of public funds from single public
official; exception. (1) A
bank depository may not accept a deposit of public funds if the deposit would
cause the aggregate of public funds deposits made by any one public official in
the bank depository to exceed at any time the net worth of the bank depository.
If a bank depositoryÂ’s net worth is reduced, the bank depository may allow
public funds on deposit in excess of the reduced net worth to remain if the
bank depository deposits with its custodian eligible securities valued at
market value in an amount at least equal to the amount of the excess public
funds deposits. If the additional securities required by this section are not
deposited with the custodian, the bank depository shall permit the public
official to withdraw deposits prior to maturity, including accrued interest, in
accordance with applicable statutes and governmental regulations.
     (2) The limitations of subsection (1) of
this section do not apply to public funds deposits held by a bank depository in
a certificate of deposit or time deposit under the program described in ORS
295.004. [2007 c.871 §10]
     Note: See note under 295.031.
     295.048
Limitations on aggregate public funds deposits; notice; exceptions. (1) Notwithstanding ORS 295.046, a bank
depository may not permit the aggregate of public funds deposits on deposit
with the bank depository from all public officials to exceed at any time:
     (a) 100 percent of the value of the bank
depositoryÂ’s net worth, if the bank depository is an undercapitalized bank
depository;
     (b) 150 percent of the value of the bank
depositoryÂ’s net worth, if the bank depository is an adequately capitalized
bank depository;
     (c) 200 percent of the value of the bank
depositoryÂ’s net worth, if the bank depository is a well capitalized bank
depository; or
     (d) 30 percent of the total aggregate
public funds deposits of all public officials in all bank depositories as
reported in the most recent notice received by the bank depository from the
State Treasurer.
     (2) The State Treasurer shall notify each
bank depository and its custodian of the total aggregate public funds deposits
of all public officials in all bank depositories, based on the most recently
submitted treasurer reports. The treasurer shall give the notification required
by this subsection by the last day of the month in which bank depositories are
required to submit a treasurer report.
     (3) If a bank depository’s aggregate of
public funds deposits exceeds the amount set forth in subsection (1) of this
section, the bank depository shall, not later than 20 business days after
receipt of notice from the State Treasurer, cease accepting deposits of public
funds.
     (4) Notwithstanding subsections (1) and
(3) of this section:
     (a) A bank depository may accept and hold
public funds deposits in excess of the limits provided in subsection (1) of
this section if the State Treasurer, upon good cause shown, approves the
request of the bank depository to hold public funds in excess of the limits
provided in subsection (1) of this section for a period not exceeding 90 days.
     (b) The limitations of subsection (1) of
this section do not apply to public funds deposits held by a bank depository in
a program described in ORS 295.004.
     (c) A well capitalized bank depository or
an adequately capitalized bank depository may accept and hold public funds
deposits in excess of the limit provided in subsection (1)(d) of this section
if eligible securities are deposited with the bank depositoryÂ’s custodian as
collateral in an amount at least equal to the amount of the public funds
deposits in excess of the limitation prescribed in subsection (1)(d) of this
section. [2007 c.871 §11]
     Note: See note under 295.031.
     295.050 [Repealed by 1967 c.451 §32]
     295.053
Custodian duties when bank depository ceases holding public funds; securities. (1) If a bank depository ceases holding
public funds deposits, the bank depositoryÂ’s custodian shall continue to hold
the pledged securities of the bank depository as collateral pursuant to ORS
295.001 to 295.108. Unless the State Treasurer directs that the bank depositoryÂ’s
securities be held for a longer period, the custodian shall hold the bank
depositoryÂ’s pledged securities for a period of:
     (a) 30 days, in the case of a bank
depository that was well capitalized as of the date the bank depository ceased
holding any public funds deposits;
     (b) 90 days, in the case of a bank
depository that was adequately capitalized as of the date the bank depository
ceased holding any public funds deposits; or
     (c) One year, in the case of a bank
depository that was undercapitalized as of the date the bank depository ceased
holding any public funds deposits.
     (2) If any of a bank depository’s pledged
securities mature during the periods described in subsection (1) of this
section, the bank depository shall pledge substitute securities that shall be
held by its custodian until the expiration of the period.
     (3) At the end of the applicable holding
period, if the bank depository has not, during that period, had on deposit any
public funds deposits, the custodian shall tender the bank depositoryÂ’s
securities to the bank depository.
     (4) Notwithstanding the release of a bank
depositoryÂ’s securities pursuant to subsection (3) of this section, the bank
depository shall continue to be treated as a bank depository and shall be
subject to assessment under ORS 295.037 until one year after the bank
depository ceased holding any public funds deposits. If the bank depository no
longer has pledged collateral that may be used to pay the assessment, the bank
depository shall remain liable for payment of the assessment from its other
assets. [2007 c.871 §13]
     Note: See note under 295.031.
     295.055 [1967 c.451 §6; 2007 c.871 §22; renumbered
295.006 in 2007]
     295.056
Liability of public officials for loss of public funds. When public funds deposits are made in
accordance with ORS 295.001 to 295.108, a public official may not be held
liable for any loss of public funds that results from the failure or default of
any depository without fault or neglect on the public officialÂ’s part or on the
part of the public official’s officers or employees. [2007 c.871 §12]
     Note: See note under 295.031.
     295.060 [Repealed by 1967 c.451 §32]
     295.061
Treasurer reports; filing; notification of changes. (1) On or before each treasurer report due
date, each bank depository that has in its possession public funds deposits of
one or more public officials that exceed the limits specified in ORS 295.002
shall file its treasurer report with its custodian bank and with the State
Treasurer.
     (2) Each bank depository that files reports
with the State Treasurer under subsection (1) of this section shall notify the
State Treasurer in writing or by electronic means within 10 business days of:
     (a) The date on which the bank depository’s
net worth is reduced by an amount greater than 10 percent of the amount shown
as its net worth on the most recent report submitted pursuant to subsection (1)
of this section; or
     (b) The date on which the bank depository
ceases to be well capitalized and becomes adequately capitalized or
undercapitalized, or ceases to be adequately capitalized and becomes
undercapitalized.
     (3) An undercapitalized bank depository
shall report the actual amount of public funds deposits held by it at least
weekly to its custodian bank and to the State Treasurer. [2007 c.871 §7]
     Note: See note under 295.031.
     295.065 [1967 c.451 §7; 1973 c.378 §2; 1975 c.515 §4;
repealed by 2007 c.871 §35]
     Note: 295.065 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.065 is
set forth for the userÂ’s convenience.
     295.065
Duties of pool manager. Each
pool manager shall:
     (1) Maintain an accurate inventory of the
securities of each depository bank described in the custodianÂ’s receipts
transmitted to it from custodian banks, and adjust the inventory to reflect
withdrawals and substitutions of securities previously inventoried.
     (2) Appraise the value of the securities
added to and withdrawn from the inventory of the depository bank, and appraise
the value of the entire inventory of the depository on October 1 of each year
and at such other times as it is directed to do so by the State Treasurer.
     (3) Issue certificates of participation to
public officials in amounts designated by the depository bank and, upon the
direction of the depository bank and the written consent of the public official
to whom it is issued, reduce, modify or cancel a certificate.
     (4) Notify in writing holders of
certificates of participation in the collateral of a depository bank whenever,
after 10 daysÂ’ notice to the depository bank, the value of the securities
continues to be less than 25 percent of outstanding certificates.
     (5) Notify the State Treasurer of the
occurrence whenever a bond in the inventory of a depository bank loses its
rating requirement provided in ORS 295.001 (7)(c) and (d).
     295.070 [Repealed by 1967 c.451 §32]
     295.071
Investigation by regulatory bodies other than State Treasurer. (1) The State Treasurer may request that the
Director of the Department of Consumer and Business Services or another state
or federal agency with primary regulatory authority over any financial
institution that is a bank depository or that applies to become a bank
depository investigate and report to the State Treasurer concerning the
condition of the financial institution.
     (2) The financial institution examined
under this section shall pay the expenses of the investigation and report.
     (3) In lieu of an investigation and
report, the State Treasurer may rely upon information made available to the
State Treasurer or the Director of the Department of Consumer and Business
Services by the Office of the Comptroller of the Currency, the Office of Thrift
Supervision, the Federal Deposit Insurance Corporation, the Board of Governors
of the Federal Reserve System or any state bank or thrift regulatory agency. [2007
c.871 §8]
     Note: See note under 295.031.
     295.073
Report to State Treasurer of certain actions by Director of Department of Consumer
and Business Services. The
Director of the Department of Consumer and Business Services shall advise the
State Treasurer of any action the director takes or directs any bank depository
to take that will result in a reduction of greater than 10 percent of the net
worth of the bank depository as shown on the most recent treasurer report
submitted pursuant to ORS 295.061. [2007 c.871 §9]
     Note: See note under 295.031.
     295.075 [1965 c.629 §3; repealed by 1967 c.451 §32]
     295.080 [Amended by 1959 c.330 §2; 1963 c.520 §2;
1967 c.335 §33; repealed by 1967 c.451 §32]
     295.081
Time deposits. (1) Subject
to ORS 295.002, 295.015 and 295.018, any depository may offer in writing to
accept from the State Treasurer time deposits without limitation in amount or
in an aggregate amount therein stated and to pay interest on the time deposits
at rates specified in the offer. The offer shall be a continuing offer until it
is modified or withdrawn by notice in writing delivered or mailed by registered
or certified mail to the State Treasurer. While the offer continues in effect,
the depository is bound to accept upon the terms therein specified time
deposits tendered by the State Treasurer.
     (2) Any funds deposited by the State
Treasurer on a time basis shall be deposited at the highest rate of interest
available for the amount and term of the deposit.
     (3) The State Treasurer shall establish
time deposits so as to make the deposited moneys as productive as possible, and
shall exercise the judgment and care which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, considering the
probable income and the probable safety of the moneys deposited, including the
distribution of the deposits among depositories so as to minimize the possibility
of loss of moneys. [Formerly 295.115]
     Note: The amendments to 295.081 (formerly 295.115)
by section 23, chapter 871, Oregon Laws 2007, become operative July 1, 2008,
and apply to all public funds on deposit on or after July 1, 2008. See sections
36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40,
chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008,
is set forth for the userÂ’s convenience.
     295.081. (1) Any depository may offer in writing to
accept from the State Treasurer time deposits without limitation in amount or
in an aggregate amount therein stated and to pay interest on the time deposits
at rates specified in the offer. The offer shall be a continuing offer until it
is modified or withdrawn by notice in writing delivered or mailed by registered
or certified mail to the State Treasurer. While the offer continues in effect,
the depository is bound to accept upon the terms therein specified time
deposits tendered by the State Treasurer.
     (2) Any funds deposited by the State
Treasurer on a time basis shall be deposited at the highest rate of interest
available for the amount and term of the deposit.
     (3) The State Treasurer shall establish
time deposits so as to make the deposited moneys as productive as possible, and
shall exercise the judgment and care which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, considering the
probable income and the probable safety of the moneys deposited, including the
distribution of the deposits among depositories so as to minimize the
possibility of loss of moneys.
     295.084
Designation of depository; collection for claims due state. (1) The State Treasurer may designate such
banks as are necessary within this state as depositories for the collection of
drafts, checks, certificates of deposit and coupons received by the State
Treasurer on account of any claim due the state.
     (2) The State Treasurer, on receipt of any
draft, check or certificate of deposit, on account of a claim due the state,
may place it in a depository for collection. The depository shall collect it
without delay and shall notify the State Treasurer when collected. The
compensation to be paid by the depository shall be fixed by the State Treasurer
upon the best terms obtainable for the state. [Formerly 295.135]
     295.085 [1967 c.451 §8; repealed by 2007 c.871 §35]
     Note: 295.085 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.085
(2005 Edition) is set forth for the userÂ’s convenience.
     295.085
Requiring special certification of collateral value. If, in the opinion of the State Treasurer,
market conditions so indicate, the State Treasurer may require certification of
collateral value in accordance with ORS 295.065 at other times throughout the
year. The decision to request a special certification shall be solely at the
discretion of the State Treasurer.
     295.087
Department of State Lands to invest proceeds from sales of public lands. Nothing in ORS 295.001 to 295.108 deprives
the Department of State Lands of the power to invest or dispose of the funds
derived from the sale of public lands as provided by law. [Formerly 295.145]
     295.090 [Amended by 1959 c.330 §3; repealed by 1967
c.451 §32]
     295.091
Preference in selecting depositories for political subdivisions; apportioning
funds; interest. (1) In
selecting banks or trust companies to act as depositories, public officials are
not limited to the appointment of banks or trust companies in any particular
locality. However, if banks or trust companies are engaged in business at an
office or offices within the corporate limits of the political subdivision or
public corporation and qualify to receive the funds, such depositories shall be
given preference. If there is more than one such local qualifying depository,
the depositing public official shall apportion the funds in the hands of the
public official to such depositories in a manner that is equitable and in the
best interests of the political subdivision or public corporation.
     (2) The depositories shall be required to
pay to the political subdivision or public corporation upon deposits evidenced
by certificates of deposit or deposits that by agreement may not be withdrawn
on less than 30 daysÂ’ notice, interest at such rate or rates as shall be agreed
upon between the governing body of the political subdivision or public
corporation and the depository.
     (3) All interest received on deposits of
moneys under this section shall accrue to and become a part of the fund the
moneys of which were deposited.
     (4) This section does not apply to the
State Treasurer. [Formerly 295.155]
     295.093
Depositing moneys with treasurer of political subdivision. Any public official may deposit moneys
coming into the hands of the public official in connection with official duties
with the treasurer of the political subdivision or public corporation concerned
and obtain a receipt therefor. [Formerly 295.165]
     295.095 [1967 c.451 §9; 1969 c.314 §20; 1973 c.378 §3;
1983 c.456 §7; repealed by 1999 c.311 §8]
     295.100 [Repealed by 1967 c.451 §32]
     295.101
Public funds not subject to ORS 295.001 to 295.108. (1) The following public funds are not
subject to the provisions of ORS 295.001 to 295.108:
     (a) Funds that are deposited for the
purpose of paying principal, interest or premium, if any, on bonds, as defined
in ORS 286A.001 and 287A.001, and related costs or securing a borrowing related
to an agreement for exchange of interest rates entered into under ORS 286A.110
or 287A.335.
     (b) Funds that are invested in authorized
investments under provisions of law other than ORS 295.001 to 295.108. Funds
invested under ORS 293.701 to 293.820 are invested in authorized investments
for purposes of this subsection from the time the funds are transferred by the
State Treasurer to a third party under the terms of a contract for investment
or administration of the funds that requires such a transfer until the time the
funds are returned to the treasurer or paid to another party under the terms of
the contract.
     (c) Negotiable certificates of deposit
purchased by the State Treasurer under ORS 293.736 or by an investment manager
under ORS 293.741.
     (2) Notwithstanding subsection (1) of this
section, funds deposited by a custodial officer under ORS 294.035 (3)(d) are
subject to the provisions of ORS 295.001 to 295.108. [Formerly 295.011]
     295.105 [1967 c.451 §10; 1973 c.438 §1; 1975 c.515 §5;
1983 c.296 §10; 1985 c.762 §183; 1999 c.311 §2; repealed by 2007 c.871 §35]
     Note: 295.105 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.105 is
set forth for the userÂ’s convenience.
     295.105
Effect of deposit of securities; procedure in case of default of depository
bank; rules. (1) The deposit
of securities by a depository bank with its custodian pursuant to ORS 295.001
to 295.125 constitutes consent by the depository to the disposition of the
securities in accordance with this section.
     (2) When a depository is closed by order
of the Director of the Department of Consumer and Business Services or the
Comptroller of the Currency, the State Treasurer shall:
     (a) Demand and receive from the pool
manager the custodianÂ’s receipts; and
     (b) Demand and receive from the custodian
the securities pledged to secure deposits of public funds and liquidate in an
orderly manner the securities or such thereof as the State Treasurer may
determine advisable at public or private sale and distribute the proceeds as
provided in this section.
     (3) Each public official shall advise the
State Treasurer of the amount of the public officialÂ’s deposits in the
defaulted depository bank, and the State Treasurer shall proceed to determine
the total amount of the claims payable out of the collateral of the depository.
The claim of a public official for purposes of this section shall be the lesser
of:
     (a) The amount of the public official’s deposits
plus interest to the date the funds are distributed to the public official at
the rate the depository agreed to pay on the funds reduced by the portion
thereof that is insured by the Federal Deposit Insurance Corporation; or
     (b) The amount of the public official’s
certificates of participation plus interest on the public officialÂ’s deposits
to the date the funds are distributed to the public official at the rate the
depository agreed to pay on the funds.
     (4) The State Treasurer shall distribute
the net proceeds of the collateral, to the extent that they do not exceed the
total claims, among the public officials entitled thereto in proportion to
their respective claims. The State Treasurer shall remit to the depository bank
any of its collateral or the proceeds thereof in excess of the amount so
distributable to public officials.
     (5) If the net proceeds of the collateral
are inadequate, after all other available sources are applied, to meet the
total claims of the public officials entitled thereto, the public officials may
make claims against the depository bank as general creditors.
     (6) The State Treasurer, in accordance
with ORS chapter 183, shall adopt rules to carry out this section.
     295.106
State Treasurer charges; expenses. The State Treasurer may charge bank depositories for the reasonable
expenses of the State Treasurer in connection with the services, duties and
activities of the State Treasurer related to ORS 295.001 to 295.108. The State
Treasurer shall deposit all moneys received under this section in the
Miscellaneous Receipts Account established in the General Fund for the State
Treasurer. Moneys received under this section are continuously appropriated to
the State Treasurer for the payment of the reasonable expenses of the State Treasurer
in connection with the services, duties and activities of the State Treasurer
related to ORS 295.001 to 295.108. A bank depository shall pay to the State
Treasurer all fees and other amounts charged under this section or under rules
adopted to implement this section. [2007 c.871 §5]
     Note: See note under 295.031.
     295.108
State Treasurer rules; form of report. (1) The State Treasurer shall adopt rules implementing the provisions
of ORS 295.001 to 295.108.
     (2) The State Treasurer shall design the
treasurer report required by ORS 295.061. The report shall be designed to
minimize the regulatory burden of completing and submitting the report and, to
the greatest extent practicable, the form of the report and the content
required in the report shall be consistent with the information required by the
bank depository’s report of condition and income. [2007 c.871 §14]
     Note: See note under 295.031.
     295.110 [Amended by 1953 c.352 §3; repealed by 1967
c.451 §32]
     295.115 [1967 c.451 §11; 1989 c.319 §1; 2007 c.871 §23;
renumbered 295.081 in 2007]
     295.120 [Amended by 1953 c.352 §3; repealed by 1967
c.451 §32]
     295.125 [1967 c.451 §12b; 1981 c.189 §1; 1989 c.319 §2;
repealed by 2007 c.871 §35]
     Note: 295.125 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.125
(2005 Edition) is set forth for the userÂ’s convenience.
     295.125
Deposits for terms not exceeding two years; interest; retention of sum by State
Treasurer to pay current obligations. (1)(a) The State Treasurer may deposit moneys not required to meet
current demands for a term not to exceed two years at such interest rates and
upon such conditions as to withdrawals of such moneys as may be agreed upon
between the State Treasurer and any depository bank or banks in the state.
     (b) All interest received on deposits of
moneys under this subsection shall accrue to and become a part of the General
Fund as required by ORS 293.140.
     (2)(a) The State Treasurer may deposit
moneys of any of the funds mentioned in ORS 293.701 (2), except moneys
deposited under subsection (1) of this section, at such interest rates and upon
such conditions as to withdrawals of such moneys as may be agreed upon between
the State Treasurer and any depository bank or banks in the state.
     (b) Notwithstanding ORS 293.140, all
interest received on deposits of moneys under this subsection shall accrue to
and become a part of the fund the moneys of which were deposited.
     (3) The State Treasurer may retain on hand
in the state vault or in a depository, the sum the treasurer considers
necessary as a reserve for the purpose of paying the current obligations and
appropriations of the state.
     295.130 [Amended by 1953 c.352 §3; repealed by 1967
c.451 §32]
     295.135 [1967 c.451 §13; 1981 c.189 §2; 1991 c.6 §1;
renumbered 295.084 in 2007]
     295.140 [Repealed by 1953 c.352 §3]
     295.145 [1967 c.451 §14; renumbered 295.087 in 2007]
     295.150 [Repealed by 1967 c.451 §32]
     295.155 [1967 c.451 §15; 2005 c.22 §225; renumbered
295.091 in 2007]
     295.160 [Repealed by 1967 c.451 §32]
     295.165 [1967 c.451 §16; renumbered 295.093 in 2007]
     295.170 [Repealed by 1967 c.451 §32]
     295.175 [1967 c.451 §30; 1989 c.569 §5; repealed by
2007 c.871 §35]
     Note: 295.175 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.175 is
set forth for the userÂ’s convenience.
     295.175
Expenses of State Treasurer as pool manager; rules. The expense of the State Treasurer in acting
as a pool manager shall be paid to the State Treasurer by the depository bank
using the services as pool manager. The State Treasurer, under rules and
regulations to be adopted by the State Treasurer pursuant to ORS chapter 183,
shall deposit funds so received and may require advance deposits to be made by
any depository bank. The moneys credited pursuant to this section are
continuously appropriated for the payment of expenses incurred in the
administration of ORS 295.001 to 295.125.
     295.180 [Repealed by 1967 c.451 §32]
     295.185 [1983 c.456 §6; repealed by 2007 c.871 §35]
     Note: 295.185 is repealed July 1, 2008. See
section 35, chapter 871, Oregon Laws 2007, and section 36, chapter 871, Oregon
Laws 2007, as amended by section 39, chapter 871, Oregon Laws 2007. 295.185 is
set forth for the userÂ’s convenience.
     295.185
Maintenance of certain securities as collateral at rate set by State Treasurer. Notwithstanding the provisions of ORS
295.001 to 295.125, securities described in ORS 295.001 (7)(g) shall be
maintained as collateral for public deposits at the value determined by the
State Treasurer.
     295.190 [Repealed by 1967 c.451 §32]
     295.195
When deposit in foreign country authorized; effect on collateral. (1) Notwithstanding any other provision of
ORS chapter 295, the Department of Higher Education, with the approval of the
State Treasurer, may deposit funds in a financial institution in a foreign country,
if the circumstances under which the funds are to be used render it
impracticable to keep the funds in a domestic financial institution or if the
terms of a grant, gift or contract require that the funds be kept in a foreign
country.
     (2) Notwithstanding any other provision of
this chapter, to the extent estimated to be necessary to fund operations or
activities for one biennium of the State of
     (3) When funds are deposited in a
financial institution in a foreign country pursuant to subsection (1) or (2) of
this section, the institution shall not be required to maintain collateral as
provided in ORS 295.015. Reasonable and prudent measures to protect the public
funds from loss shall be exercised to the extent permitted under the laws of
the foreign country.
     (4) The State Treasurer shall report to
the Legislative Assembly biennially on the amounts of deposits in foreign
countries, and the operation and activities funded by such deposits. The report
shall be submitted to the offices of the President of the Senate and the
Speaker of the House of Representatives and shall be referred by each of them
to appropriate standing committees other than committees concerned with budgets
of the State Treasurer or the activity or operation so funded. [1983 c.374 §§1,2;
1989 c.399 §1]
     295.200 [Repealed by 1967 c.451 §32]
     295.205
Accounts in financial institutions outside
     (a) The State Treasurer may establish
demand deposit accounts in financial institutions outside this state for the
purpose of accepting deposits of funds related to the state investments in the
geographical areas respectively serviced by the institutions.
     (b) Moneys paid to or collected by a
financial institution or other entity under an agreement to provide loan
servicing for a state agency, political subdivision or public corporation may
be deposited in accounts in financial institutions outside this state for the
purpose of:
     (A) Accepting payments of loan principal
and interest;
     (B) Accepting and holding escrow funds;
     (C) Accepting and holding funds required
to be held in reserve with or on behalf of the state agency, political
subdivision or public corporation; or
     (D) Collecting and holding any other
moneys required by the agreement for loan servicing to be collected or held by
the financial institution or other entity prior to remittance to the state
agency, political subdivision or public corporation or a third party.
     (c) Moneys held by a trustee or escrow
agent pursuant to a bond indenture, certificate of participation indenture or
escrow agreement with a state agency, political subdivision or public
corporation in this state that are public funds, as defined in ORS 295.001, may
be deposited in accounts in financial institutions outside this state.
     (2) The State Treasurer shall establish
the demand deposit accounts described in subsection (1)(a) of this section in
accordance with rules adopted pursuant to ORS 183.310 to 183.410 that ensure
that reasonable and prudent measures are taken to protect the state investment
funds from loss.
     (3) When accounts are established for a
state agency, political subdivision or public corporation under subsection
(1)(b) or (c) of this section, the state agency, political subdivision or
public corporation in the agreement to provide loan servicing or the bond
indenture, certificate of participation indenture or escrow agreement shall
ensure that reasonable and prudent measures are taken to protect the moneys in
the accounts from loss.
     (4) A public official may not have on
deposit in any credit union that is a financial institution outside this state
an aggregate sum in excess of the deposit insurance limit established by the
National Credit Union Administration.
     (5) As used in this section, the terms “financial
institution outside this state” and “public official” have the meanings given
those terms in ORS 295.001. [1993 c.69 §1; 1995 c.259 §5; 1997 c.171 §15; 2007
c.871 §24]
     Note: The amendments to 295.205 by section 24,
chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all
public funds on deposit on or after July 1, 2008. See sections 36 and 37,
chapter 871, Oregon Laws 2007, as amended by sections 39 and 40, chapter 871,
Oregon Laws 2007. The text that is operative until July 1, 2008, is set forth
for the userÂ’s convenience.
     295.205. (1) Notwithstanding any other law:
     (a) The State Treasurer may establish
demand deposit accounts in financial institutions outside this state for the
purpose of accepting deposits of funds related to the state investments in the
geographical areas respectively serviced by the institutions.
     (b) Moneys paid to or collected by a
financial institution or other entity under an agreement to provide loan
servicing for a state agency, political subdivision or public corporation may
be deposited in accounts in financial institutions outside this state for the
purpose of:
     (A) Accepting payments of loan principal
and interest;
     (B) Accepting and holding escrow funds;
     (C) Accepting and holding funds required
to be held in reserve with or on behalf of the state agency, political
subdivision or public corporation; or
     (D) Collecting and holding any other
moneys required by the agreement for loan servicing to be collected or held by
the financial institution or other entity prior to remittance to the state
agency, political subdivision or public corporation or a third party.
     (c) Moneys held by a trustee or escrow
agent pursuant to a bond indenture, certificate of participation indenture or
escrow agreement with a state agency, political subdivision or public
corporation in this state that are public funds, as defined in ORS 295.001, may
be deposited in accounts in financial institutions outside this state.
     (2) The State Treasurer shall establish
the demand deposit accounts described in subsection (1)(a) of this section in
accordance with rules adopted pursuant to ORS 183.310 to 183.410 that, to the
extent practicable, provide that deposits of state investment funds are
collateralized and managed in the manner otherwise required for deposits of
public funds in the state under ORS 295.001 to 295.125.
     (3) When accounts are established for a state
agency, political subdivision or public corporation under subsection (1)(b) or
(c) of this section, the state agency, political subdivision or public
corporation in the agreement to provide loan servicing or the bond indenture,
certificate of participation indenture or escrow agreement shall require that:
     (a) All moneys deposited in the accounts,
to the extent practicable, must be collateralized at the same level and managed
in the same manner otherwise required for deposits of public funds in this state
under ORS 295.001 to 295.125;
     (b) Compliance with the collateralization
and management requirements of this subsection be monitored and evidence of
compliance that is satisfactory to the state agency, political subdivision or
public corporation be periodically supplied to the state agency, political
subdivision or public corporation; and
     (c) Failure by a financial institution or
other entity to maintain deposits collateralized and managed as required by
this subsection shall constitute a breach of the applicable loan servicing
agreement, bond indenture, certificate of participation indenture or escrow
agreement.
     295.210 [Repealed by 1967 c.451 §32]
     295.220 [Repealed by 1967 c.451 §32]
     295.230 [Repealed by 1967 c.451 §32]
     295.240 [Repealed by 1967 c.451 §32]
     295.410 [Repealed by 1967 c.451 §32]
     295.420 [Repealed by 1967 c.451 §32]
     295.430 [Repealed by 1967 c.451 §32]
     295.440 [Amended by 1957 c.171 §1; 1965 c.169 §2;
repealed by 1967 c.451 §32]
     295.450 [Repealed by 1967 c.451 §32]
     295.460 [Repealed by 1967 c.451 §32]
     295.470 [Repealed by 1967 c.451 §32]
     295.480 [Repealed by 1967 c.451 §32]
     295.490 [Amended by 1963 c.502 §5; repealed by 1967
c.451 §32]
     295.500 [Repealed by 1967 c.451 §32]
     295.510 [Repealed by 1967 c.451 §32]
     295.520 [Repealed by 1967 c.451 §32]
     295.530 [Repealed by 1967 c.451 §32]
     295.990 [Repealed by 1967 c.451 §32]
     295.991 [1967 c.451 §18; repealed by 1971 c.743 §432]
_______________
CHAPTER 296
[Reserved for expansion]
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