2019 Oregon Revised Statutes
Volume : 07 - Public Facilities and Finance
Chapter 283 - Interagency Services
Section 283.089 - Authority of Director of Oregon Department of Administrative Services regarding financing agreements.
(1) The Director of the Oregon Department of Administrative Services may:
(a) Enter into agreements with trustees to hold financing agreement proceeds, payments and reserves as security for lenders, and to issue certificates of participation in the right to receive payments due from the state under a financing agreement. The trustee shall invest amounts held by the trustee at the direction of the State Treasurer. Interest earned on any investments held by a trustee as security for a financing agreement, at the option of the director, may be credited to the accounts held by the trustee and applied in payment of sums due under a financing agreement.
(b) Enter into credit enhancement agreements for financing agreements or certificates of participation, provided that amounts due under credit enhancement agreements are payable solely from available funds and amounts received from the exercise of property rights granted under the financing agreements.
(c) Use the gross proceeds of financing agreements for the purposes described in ORS 283.085 (3) and to pay the costs of reserves, credit enhancements and other costs associated with issuing, administering and maintaining the financing.
(d) Use a single financing agreement to finance property to be used by multiple state agencies.
(e) Subject to ORS 283.087 (2)(b), grant leases of real property with a trustee or lender. The leases may be for a term that ends on the date on which all amounts due under a financing agreement have been paid or provision for payment has been made, or 10 years after the last scheduled payment under a financing agreement, whichever is later. The leases may grant the trustee or lender the right to evict the state and exclude it from possession of the real property for the term of the lease if the state fails to pay when due the amounts scheduled to be paid under a financing agreement or otherwise defaults under a financing agreement. Upon default, the trustee or lender may sublease the real property to third parties and apply any rentals toward payments scheduled to be made under a financing agreement.
(f) Subject to ORS 283.087 (2)(b), grant security interests in personal property to trustees or lenders. The security interests attach and are perfected on the date the state takes possession of the personal property, or the date the lender advances money under a financing agreement, whichever is later. A security interest authorized by this section has priority over all other liens and claims. Upon default, the secured party has the rights and remedies available to a secured party under ORS chapter 79 for a first, perfected security interest in goods and fixtures. Within 10 days after a security interest authorized by this section attaches, the state shall cause a financing statement for the security interest to be filed with the Secretary of State in the same manner as financing statements are filed for goods. However, failure to file the statement does not affect the perfection of the security interest.
(g) Pledge for the benefit of trustees and lenders any amounts that are deposited with a trustee in accordance with a financing agreement. The pledge is valid and binding from the time it is made. Amounts pledged are subject to the lien of the pledge immediately without filing, physical delivery or other act. The lien of the pledge is superior to all other claims and liens of any kind whatsoever.
(h) Bill any state agency that benefits from a financing agreement for an appropriate share of the financing costs on a monthly or other periodic basis, and deposit payments received in connection with the billings with a trustee as security for a financing agreement. Any state agency receiving such a bill shall pay the amounts billed from the first amounts legally available to it. The director shall allocate in appropriate shares the financing costs of a financing agreement entered into for the purpose described in ORS 283.085 (3)(d) among all state agencies based on their payroll costs.
(i) Purchase fire and extended coverage or other casualty insurance for property acquired or refinanced with proceeds of a financing agreement, assign the proceeds of the insurance to a lender or trustee to the extent of their interest and covenant to maintain the insurance while the financing agreement is unpaid, so long as available funds are sufficient to purchase the insurance.
(2) As used in this section, "state agency" has the meaning given that term in ORS 286A.730. [1989 c.1032 §3; 2001 c.445 §170; 2003 c.746 §11; 2007 c.783 §95a; 2013 c.767 §5]
Note: See note under 283.085.
