Chapter 47 Oregon Laws 2001

 

AN ACT

 

HB 2122

 

Relating to issuance of refunding bonds; amending ORS 288.620 and 288.670; and declaring an emergency.

 

Be It Enacted by the People of the State of Oregon:

 

          SECTION 1. ORS 288.620 is amended to read:

          288.620. (1) Refunding bonds may not be issued under ORS 288.605 to 288.695 unless authorized by the State Treasurer under this section.

          [(1)] (2) Following adoption of an ordinance or resolution approving a refunding plan to issue advance refunding bonds [or to effect a forward current refunding], the refunding plan shall be submitted to the State Treasurer for review and approval.

          (3) Following adoption of an ordinance or resolution approving a refunding plan to effect a forward current refunding, the refunding plan must be submitted to the State Treasurer for review and approval if the State Treasurer has adopted rules under ORS 288.592 related to forward current refunding bonds.

          (4) After review of [the] a proposed refunding plan, the State Treasurer shall advise the public body, in writing, whether the sale of refunding bonds is authorized. [No refunding bonds may be issued under ORS 288.605 to 288.695 unless authorized by the State Treasurer pursuant to this section; provided, that] Failure of the State Treasurer to notify the public body within 30 business days after receipt of the refunding plan shall be deemed an authorization to proceed. Except as provided in ORS 288.625, in making determinations under this section the State Treasurer shall consider all relevant factors, including the purposes for which the refunding plan is adopted, the terms of the refunding plan, the effects (if any) of applicable federal laws and the views of recognized experts in the field.

          [(2)] (5) The State Treasurer may delegate the authority to approve refunding plans, including approval of the investment of the refunding bond proceeds, to the Oregon Municipal Debt Advisory Commission.

          [(3)] (6) The administrative expenses of the State Treasurer incurred in reviewing refunding plans shall be charged against the bond proceeds[,] or may be paid by the public body from such other funds as may be available.

 

          SECTION 2. ORS 288.670 is amended to read:

          288.670. (1) Except for advance refunding bonds sold pursuant to ORS 288.615 (1)(a), the [various annual maturities] maturity dates of general obligation bonds issued to refund voted general obligation bonds [shall not extend over a longer period of time than] may not be more than 30 days after the maturity dates of the bonds to be refunded. [Such maturities may be changed in amount or shortened in term if the estimated respective annual principal and interest requirements of the refunding bonds, computed upon the anticipated effective interest rate the governing body shall in its discretion determine will be borne by such bonds, will not exceed in the aggregate the principal and interest requirements of the bonds being refunded. However, the issuer may increase the principal amount of annual maturities for the purpose of rounding out maturities to the nearest $5,000] However, as long as the total debt service on the refunding bonds does not exceed the total debt service on the bonds to be refunded, the amounts maturing on any given date may be changed, and the refunding general obligation bonds may mature earlier than the bonds to be refunded.

          (2) Subsection (1) of this section does not apply to general obligation bonds of the State of Oregon.

 

          SECTION 3. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

 

Approved by the Governor April 6, 2001

 

Filed in the office of Secretary of State April 6, 2001

 

Effective date April 6, 2001

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