2017 Oregon Revised Statutes
Volume : 07 - Public Facilities, Finance
Chapter 295 - Depositories of Public Funds and Securities
Section 295.001 - Definitions for ORS 295.001 to 295.108.

(1) "Adequately capitalized" means a depository that is classified as adequately capitalized by the depository’s 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 a day other than a federal or State of Oregon legal holiday or a day other than a day on which offices of the State of Oregon are otherwise authorized by law to remain closed.

(4) "Closed depository" means a depository that is subject to a loss.

(5) "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;

(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; and

(c) The credit union or federal credit union complies with ORS 295.008.

(6) "Custodian" means one of the following institutions that a depository designates for the depository’s own account:

(a) The Federal Home Loan Bank designated to serve this state, or a branch of the Federal Home Loan Bank; or

(b) An insured institution, trust company or credit union 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, if the State Treasurer has approved custodians under ORS 295.008.

(7) "Custodian’s receipt" or "receipt" means a document issued by a custodian that describes the securities that a depository deposited with the custodian to secure public fund deposits.

(8) "Depository" means a bank depository or a credit union depository.

(9) "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.

(10) "Insured institution" means an insured institution as defined in ORS 706.008.

(11) "Loss" means the issuance of an order by a regulatory or supervisory authority or a court of competent jurisdiction that:

(a) Restrains a depository from making payments of deposit liabilities; or

(b) Appoints a receiver for a depository.

(12) "Maximum liability" means a sum equal to 10 percent of the greater of:

(a) All uninsured public funds deposits held by a depository, as shown on the date of the depository’s most recent treasurer report; or

(b) The average of the balances of uninsured public funds deposits on the last two immediately preceding treasurer reports.

(13) "Minimum collateral requirement" for a depository on any given date means a sum equal to:

(a) For a well capitalized depository that the State Treasurer has not required to increase the depository’s collateral pursuant to ORS 295.018, 10 percent of the greatest of:

(A) All uninsured public funds held by the depository, as shown on the most recent treasurer report;

(B) The average of the balances of uninsured public funds held by the depository, as shown on the last two immediately preceding treasurer reports; or

(C) An amount otherwise prescribed in ORS 295.001 to 295.108.

(b) For a well capitalized depository that the State Treasurer required to increase the depository’s collateral pursuant to ORS 295.018, the percentage the State Treasurer required pursuant to ORS 295.018 multiplied by the greatest of:

(A) All uninsured public funds held by the depository, as shown on the most recent treasurer report;

(B) The average of the balances of uninsured public funds held by the depository, as shown on the last two immediately preceding treasurer reports; or

(C) An amount otherwise prescribed in ORS 295.001 to 295.108.

(c) For an adequately capitalized depository or an undercapitalized depository, 110 percent of the greater of:

(A) All uninsured public funds held by the depository; or

(B) The average of the balances of uninsured public funds held by the depository, as shown on the last two immediately preceding treasurer reports.

(14) "Net worth" means a depository’s total risk-based capital, 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.

(15) "Pledge agreement" means a written agreement among an insured institution, trust company or credit union, the State Treasurer and a custodian that pledges the securities the insured institution, trust company or credit union deposits with the custodian as collateral for deposits of uninsured public funds that the insured institution, trust company or credit union holds. The board of directors or loan committee of the insured institution, trust company or credit union must approve the agreement and must continuously maintain the agreement as a written record of the insured institution, trust company or credit union.

(16) "Public funds" or "funds" means funds that a public official has custody of or controls by virtue of office.

(17) "Public official" means an officer or employee of this state or an agency, political subdivision or public or municipal corporation of this state, or a housing authority, that by law is the custodian of or has control of public funds.

(18) "Report of condition and income" means the quarterly report a depository submits to the depository’s primary federal regulatory authority.

(19) "Security" or "securities" means:

(a) Obligations of the United States, including those of agencies and instrumentalities of the United States, and of government sponsored enterprises;

(b) Obligations of the International Bank for Reconstruction and Development;

(c) Bonds of a state of the United States that:

(A) Are rated in one of the four highest grades by a recognized investment service organization that has engaged regularly and continuously for a period of not less than 10 years in rating state and municipal bonds; or

(B) Having once been rated in accordance with subparagraph (A) of this paragraph, are ruled to be eligible securities for the purposes of ORS 295.001 to 295.108, notwithstanding the loss of the rating;

(d) Bonds of a county, city, school district, port district or other public body in the United States that are 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 a county, city, school district, port district or other public body that are issued pursuant to the Constitution or statutes of the State of Oregon or the charter or ordinances of a county or city within the State of Oregon, if the bonds meet the rating requirement or are ruled to be eligible securities as provided in paragraph (c) of this subsection;

(f) With the permission of the State Treasurer and in accordance with rules the State Treasurer adopts, loans made to a county, city, school district, port district or other public body in the State of Oregon, if the borrower has not defaulted with respect to the payment of principal or interest on any of the borrower’s loans within the preceding 10 years or during the period of the borrower’s existence if the borrower has existed for less than 10 years;

(g) With the permission of the State Treasurer and in accordance with rules the State Treasurer adopts, bond anticipation notes that an authority issues, sells or assumes 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 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 engaged regularly and continuously for a period of not less than 10 years in rating corporate debt obligations.

(20) "Treasurer report" means a written report that an officer of a depository that holds uninsured public funds deposits has signed or authenticated and that sets forth as of the close of business on a specified date:

(a) The total amount of uninsured public funds on deposit with the depository;

(b) The total amount of public funds on deposit with the depository;

(c) The net worth of the depository;

(d) The amount and nature of eligible collateral then on deposit with the depository’s custodian to collateralize the depository’s public funds deposits; and

(e) The identity of the depository’s custodian.

(21) "Treasurer report due date" means a date not less than 10 business days after the date a depository’s report of condition and income is due to be submitted.

(22) "Trust company" means a trust company as defined in ORS 706.008.

(23) "Undercapitalized" means a depository that the depository’s primary federal regulatory authority has classified as undercapitalized, significantly undercapitalized or critically undercapitalized.

(24)(a) "Uninsured public funds" or "uninsured public funds deposits" means public funds deposited in a depository that exceed the amounts insured or guaranteed as described in ORS 295.002 (1)(a) and (b).

(b) "Uninsured public funds" or "uninsured public funds deposits" does not include public funds deposited in a certificate of deposit or time deposit under ORS 295.004 (1) or public funds that an Oregon depository arranges to deposit into an insured deposit account under ORS 295.004 (2).

(25) "Value" means the current market value of securities.

(26) "Well capitalized" means a depository that the depository’s primary federal regulatory authority has classified as well capitalized. [Formerly 295.005; 2009 c.821 §1; 2010 c.101 §1; 2011 c.477 §§3,4; 2017 c.17 §25]

Note: Sections 8 and 9, chapter 500, Oregon Laws 2017, provide:

Sec. 8. (1) The State Treasurer shall convene a work group to study and develop a report on provisions of state law relating to depositories of public funds.

(2) Members of the work group shall be appointed by the State Treasurer and must include:

(a) Representatives of the office of the State Treasurer;

(b) Representatives of state agencies that have a variety of banking and deposit needs, including a state agency with frequent, high-value deposits and a state agency with remote locations and infrequent or low-value deposits;

(c) Representatives of public officials, as defined in ORS 295.001;

(d) Representatives of depositories, as defined in ORS 295.001; and

(e) Other interested stakeholders, as the State Treasurer determines is appropriate.

(3) The work group shall review ORS 295.001 to 295.108 and other provisions of state law relating to depositories of public funds and consider changes to state law to improve processes for transfer and deposit of public funds or to better protect public funds against loss.

(4) The State Treasurer shall convene the work group as soon as practicable after the effective date of this 2017 Act [June 29, 2017]. The State Treasurer shall provide facilities and administrative support for meetings of the work group.

(5) Before February 1, 2019, the State Treasurer shall submit a report on the activities and findings of the work group and any proposed legislation or other recommendations to the interim committees of the Legislative Assembly related to revenue. [2017 c.500 §8]

Sec. 9. Section 8 of this 2017 Act is repealed on January 2, 2020. [2017 c.500 §9]