2017 Oregon Revised Statutes
Volume : 07 - Public Facilities, Finance
Chapter 295 - Depositories of Public Funds and Securities
Section 295.008 - Conditions for acting as custodian or depository.
(1)(a) An insured institution, trust company or credit union may not be a custodian under ORS 295.001 to 295.108 unless the insured institution, trust company or credit union certifies in writing to the State Treasurer that the insured institution, trust company or credit union 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, trust companies or credit unions to serve as custodians. The State Treasurer shall promptly notify all depositories of the approval of an insured institution, trust company or credit union to serve as a custodian.
(2) An insured institution, trust company or credit union may not be a depository under ORS 295.001 to 295.108 unless the insured institution, trust company or credit union:
(a) Certifies in writing to the State Treasurer that the insured institution, trust company or credit union will furnish to the Director of the Department of Consumer and Business Services by the time the director specifies:
(A) The reports required under ORS 714.075; and
(B) Any other information the director considers necessary to determine whether to advise the State Treasurer to order a depository to increase the depository’s collateral under ORS 295.018;
(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) An insured institution, trust company or credit union that intends to become a depository shall file with the State Treasurer an initial written report that an officer of the insured institution, trust company or credit union has signed or authenticated and that sets forth, as of the date the insured institution, trust company or credit union intends to commence acting as a depository:
(a) The estimated total amount of public funds that will be on deposit with the insured institution, trust company or credit union;
(b) The estimated net worth of the insured institution, trust company or credit union;
(c) The amount and nature of the collateral that the insured institution, trust company or credit union will deposit with a custodian to collateralize the public funds deposits; and
(d) The identity of the custodian.
(4) An insured institution, trust company or credit union may be a 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, trust company or credit union does not hold any uninsured public funds deposits. The provisions of ORS 295.006, 295.013, 295.015, 295.018, 295.037, 295.038 and 295.061 do not apply to an insured institution, trust company or credit union that is a depository under this subsection.
(5) An insured institution, trust company or credit union that merges with, acquires all the assets of, acquires ownership of or otherwise becomes a successor entity to a depository that has entered into a pledge agreement must execute a new pledge agreement or provide evidence satisfactory to the State Treasurer that the successor insured institution, trust company or credit union has assumed all of the depository’s duties and obligations under the existing pledge agreement. An insured institution, trust company or credit union that fails to enter into a pledge agreement or provide evidence that the insured institution, trust company or credit union has assumed the existing pledge agreement within the time specified by the State Treasurer shall be treated as a depository that holds uninsured public funds and that has failed to pledge adequate collateral under ORS 295.031. [2005 c.112 §3; 2007 c.871 §16; 2009 c.821 §4; 2010 c.101 §5]
