2015 Oregon Revised Statutes
Volume : 07 - Public Facilities, Finance
Chapter 295 - Depositories of Public Funds and Securities
Section 295.015 - Maintenance of securities by depository.

Except as provided in ORS 295.018:

(1)(a) A depository throughout the period during which the depository possesses uninsured public funds deposits shall maintain on deposit with the depository’s custodian, at the depository’s own expense, securities that have a value at least equal to the depository’s minimum collateral requirement and as otherwise prescribed in ORS 295.001 to 295.108. The depository shall deposit the collateral with the depository’s custodian and the depository and the custodian shall clearly mark the collateral as security for public funds deposited in accordance with 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 (19)(f) must be discounted to 75 percent of the unpaid principal balance owing on the loan from time to time, or to a lower value that the State Treasurer determines from time to time.

(c) A bond anticipation note that is pledged as collateral for public funds deposits and for which there is no readily determinable market value must be discounted to 75 percent of the unpaid principal balance owing on the note from time to time, or to a lower value that the State Treasurer determines from time to time.

(2) A depository may deposit other eligible securities with the depository’s custodian and withdraw from deposit securities that the depository pledged to secure deposits of public funds if the remaining securities have a value not less than the depository’s minimum collateral requirement. The State Treasurer shall execute releases and surrender custodian’s receipts that are appropriate to effect substitutions and withdrawals of matured and excess pledged securities.

(3) If a depository’s minimum collateral requirement increases because the depository ceases to be a well capitalized depository as reflected in the depository’s last treasurer report, call report or other public filing, or if the depository receives notice from the depository’s custodian under ORS 295.013 (2)(d) or from the State Treasurer:

(a) Within three business days after the date on which the depository’s minimum collateral requirement increases, the depository shall notify the depository’s custodian, the Director of the Department of Consumer and Business Services and the State Treasurer in writing that the depository’s minimum collateral requirement has increased, setting forth the depository’s new minimum collateral requirement and the depository’s plan for increasing the depository’s pledged collateral to the minimum collateral requirement; and

(b) Within five business days after the date on which the depository’s minimum collateral requirement increases, or within a longer period approved by the State Treasurer and the director, the depository shall, in accordance with the plan approved by the State Treasurer and the director, tender to the depository’s custodian additional securities that have a value sufficient to increase the total value of the depository’s securities pledged as collateral for public funds deposits to the depository’s new minimum collateral requirement.

(4) If a depository’s minimum collateral requirement decreases because the depository becomes a well capitalized depository, or because the State Treasurer no longer requires the depository to pledge additional collateral under ORS 295.018, the depository may:

(a) Notify the depository’s custodian and the State Treasurer in writing that the depository’s minimum collateral requirement has decreased, setting forth the depository’s new minimum collateral requirement; and

(b) With the written approval of the State Treasurer, withdraw from the depository’s custodian securities that exceed the depository’s new minimum collateral requirement.

(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 receiving each request.

[1967 c.451 §2; 1975 c.515 §3; 2007 c.871 §17; 2009 c.821 §6; 2010 c.101 §7]