Chapter 215 Oregon Laws 2001

AN ACT

SB 580

Relating to bond management by county treasurer; creating new provisions; amending ORS 264.250, 264.300, 264.470, 440.380, 440.395, 440.400, 450.870, 450.890, 450.915, 456.185, 478.420, 478.430, 478.460, 478.560, 523.410, 523.460, 523.660, 545.381, 547.555, 547.580, 547.605, 547.610, 547.615, 547.620, 547.665, 547.675, 547.697, 554.120, 554.160, 554.220 and 554.280; and repealing ORS 208.200, 208.210 and 208.220.

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

SECTION 1. ORS 208.200, 208.210 and 208.220 are repealed.

SECTION 2. ORS 264.250 is amended to read:

264.250. (1) For the purpose of carrying into effect all or any powers granted by this chapter, the district, when authorized at any properly called election held for that purpose, may borrow money and sell and dispose of general obligation bonds. Except as otherwise provided by this section, the bonds shall never exceed in the aggregate two and one-half percent of the real market value of all taxable property within the limits of the district, computed in accordance with ORS 308.207.

(2) The bonds shall be issued from time to time by the board of commissioners in behalf of the district as authorized by the electors, and may be issued in an amount not to exceed one-half of one percent of the real market value referred to in subsection (1) of this section without the approval of the electors. The bonds shall mature serially within not to exceed 30 years from issue date, and shall bear such rate of interest, payable semiannually, as the board shall determine. The bonds shall be so conditioned that the district agrees to pay to the bearer, at a place named, [which may be at the office of the county treasurer of the county in which proceedings for formation of the district were conducted,] the principal sum[,] of the bonds with interest at the rate named, payable semiannually[,] in accordance with the tenor and terms of the interest coupons attached. [Each bond payable at the office of the county treasurer shall be registered in accordance with ORS 208.200 in the office of the county treasurer referred to in this subsection and signed by the county treasurer.]

(3) If the district has within its corporate limits a population of 300 or over, it may issue bonds in an amount which shall not exceed in the aggregate 10 percent of the real market value referred to in subsection (1) of this section.

(4) For the purpose of additionally securing the payment of the principal and interest on general obligation bonds issued under this section, the district may, by resolution of its board which shall constitute part of the contract with the holders of the bonds, pledge all or any part of the net revenue of its water system. The board may adopt such a resolution without submitting the question of the pledge to the electors of the district.

SECTION 3. ORS 264.300 is amended to read:

264.300. (1) A district may assess, levy and collect taxes in an amount each year not to exceed one-fourth of one percent (.0025) of the real market value of all taxable property within the limits of the district, computed in accordance with ORS 308.207. The proceeds of the tax shall be applied by it in carrying out the objects and purposes of ORS 264.110, 264.210 to 264.280 and 264.330 and for the purpose of financing the employees’ retirement system.

(2) A district may annually also assess, levy and collect a special tax upon all such property in an amount sufficient to pay the yearly interest on bonds theretofore issued by the district and then outstanding, together with any portion of the principal of such bonds maturing within the year. The special tax shall be applied only in payment of interest and principal of bonds issued by the district, but the district may apply any funds it may have toward payment of principal and interest of any such bonds. [If the bonds are registered with a county treasurer under ORS 208.200, the officer who collects the special tax shall transfer the proceeds to the county treasurer referred to in ORS 264.250. If the district bond fund is not sufficient for this purpose, the district shall transfer to the county treasurer any additional funds it has as required to pay the principal and interest of any such bonds.]

(3) Taxes shall be levied in each year and returned to the county officer whose duty it is to extend the tax roll by the time required by law for city taxes to be levied and returned.

(4) Taxes levied by the district shall become payable at the same time and be collected by the same officer who collects county taxes, and [except as otherwise provided in subsection (2) of this section,] the proceeds shall be turned over to the district according to law. The county officer whose duty it is to extend the county levy shall extend the levy of the district in the same manner as city taxes are extended.

(5) Property is subject to sale for nonpayment of taxes levied by the district in like manner and with like effect as in the case of county and state taxes.

SECTION 4. ORS 264.470 is amended to read:

264.470. (1) [Except as otherwise provided by ORS 264.300,] The money of a district shall be deposited in one or more [banks] depositories, as defined in ORS 295.005, to be designated by the board of commissioners. The money shall be withdrawn or paid out only when previously ordered by vote of the board, and upon checks signed by the treasurer or such other person as may be authorized by resolution of the board. Receipts or vouchers, showing clearly the nature and items covered by each check drawn, shall be kept on file.

(2) All the proceedings of the board of commissioners shall be entered at large in a record book. All books, maps, plans, documents, correspondence, vouchers, reports and other papers and records pertaining to the business of the district shall be carefully preserved and shall be open to inspection as public records.

SECTION 5. ORS 440.380 is amended to read:

440.380. (1) The bonds shall mature serially within not to exceed 30 years from issue date.

(2) The bonds shall bear such rate of interest as the district board shall determine.

(3) The bonds shall be so conditioned that the health district agrees therein to pay to the bearer, at a place named, [which may be at the office of the county treasurer of the county in which the proceedings for organization of the district was conducted,] the principal sum of the bonds[,] with interest at the rate named, payable semiannually[,] in accordance with the tenor and terms of the interest coupons attached. [Each bond payable at the office of the county treasurer shall be registered in accordance with ORS 208.200 and signed by the county treasurer.]

SECTION 6. ORS 440.395 is amended to read:

440.395. (1) Any health district may assess, levy and collect taxes not to exceed one-fourth of one percent (.0025) of the real market value of all taxable property within the district, computed in accordance with ORS 308.207. The proceeds of such taxes shall be applied by it in carrying out the objects and purposes provided in ORS 440.320.

(2) A health district, each year, may also assess, levy and collect a special tax upon all such property, real and personal, in an amount sufficient to pay the yearly interest on bonds theretofore issued by the district and then outstanding, together with any portion of the principal of such bonds maturing within such year. The special tax shall be applied only in payment of interest and principal of bonds issued by the health district, but the district may apply any funds it may have toward the payment of principal and interest of any such bonds.

(3) All taxes needed shall be levied and returned to the county officer whose duty it is to extend the tax roll by the time required by law for city taxes to be levied and returned.

(4) All taxes levied by a health district shall become payable at the same time and be collected by the same officer who collects county taxes. The proceeds of the taxes collected under [subsection (1) of] this section shall be turned over to the health district according to law. [The proceeds of the taxes collected under subsection (2) of this section to pay bonds registered with the county treasurer shall be turned over to the county treasurer of the county in which the proceedings for organization of the district were conducted, to pay principal maturing and interest accruing on the district bonds.]

(5) The county officer whose duty it is to extend the county levy shall extend the levy of the health district in the same manner as city taxes are extended.

(6) Property is subject to sale for the nonpayment of taxes levied by the health district in like manner and with like effect as in the case of county and state taxes.

SECTION 7. ORS 440.400 is amended to read:

440.400. (1) Except as otherwise provided by subsections (3) and (4) of this section [and ORS 440.395 (4)], all money of a health district shall be deposited in one or more [banks or other financial institutions] depositories, as defined in ORS 295.005, as designated by the district board. It shall be withdrawn or paid out only when previously ordered by resolution or vote of the board, and upon checks signed as provided by subsection (2) of this section. Receipts or vouchers, showing clearly the nature and items covered by each check drawn, shall be kept on file.

(2) Except for checks issued in accordance with subsection (3) of this section, checks of a district shall be signed:

(a) By the treasurer and countersigned by the chairperson, or in the absence or inability of the chairperson to act, by the secretary; or

(b) By an administrative employee of the district designated by the board of directors, and countersigned by a director of the district.

(3) The district board may, by resolution:

(a) Set aside specified amounts from money available for operating the district hospital facility; and

(b) Delegate to an administrative officer of the district in charge of the hospital facility the authority to approve specified claims for expenses previously authorized by the board and to issue and sign checks in payment thereof.

(4) Moneys of a health district may be invested as provided by ORS 294.035 and 294.040.

SECTION 8. ORS 450.870 is amended to read:

450.870. (1) All assessments made pursuant to ORS 450.855 (3) shall be determined and made by an order of the board adopted in accordance with such procedures as shall be established by a general ordinance adopted by the board. Such general ordinance shall establish a procedure for assessing property directly benefited by the installation, making supplementary assessments and rebates, notice of the proposed assessment, provide for correction of errors, establish the form of the assessment order and such other procedures as are necessary to the adoption of the assessment order. It shall not be necessary to issue a separate order for each parcel of land, and any number of parcels in the same area and the same county may be included in one order. A copy of the order making an assessment, certified and acknowledged by the manager of the authority, shall be filed with the county clerk of the county in which the land is located. Upon being filed, the assessment shall constitute a lien against the land assessed.

(2) Notice of all assessments levied by an authority shall be given to the landowner by mail and shall be payable on the 30th day after such notice is mailed unless agreements for payment of such installments are made pursuant to ORS 223.205 and 223.210 to 223.295. All assessments shall be paid to the [county treasurer who is custodian of the funds of the] authority and a receipt shall be issued therefor. From time to time the board shall order the satisfaction of the liens against lands on which assessments have been paid, and a copy of such order shall be filed with the county clerk of the county in which the lands are located.

SECTION 9. ORS 450.890 is amended to read:

450.890. (1) Taxes levied under ORS 450.885 shall be collected at the same time and in the same manner as county taxes are collected and, when collected, shall be paid to the [county treasurer and deposited to the credit of the] sanitary authority [fund]. Taxes collected to pay expenses or obligations of a particular area shall be credited to separate accounts or funds of the authority to be used for such purposes.

(2) The taxes shall be a lien upon the property against which they are levied and shall be of the same force and effect as other liens for taxes. Their collection shall be enforced by the same means as provided for the enforcement of liens for county property taxes.

SECTION 10. ORS 450.915 is amended to read:

450.915. (1) If, at the bond election, a majority of the votes cast is in favor of the issuance of bonds, the board may issue and sell the bonds as provided in this section.

(2) The bonds shall be in such denominations of $500 or $1,000, or multiples thereof, as the board determines.

(3) All bonds shall be payable in lawful money of the United States at the office of the county treasurer of the county in which the authority, or the largest area thereof, is situated.

(4) If the bonds are revenue bonds, the bonds shall contain a statement that such bonds are payable solely out of designated revenues of the authority and are not general obligations of the authority or a charge upon the tax revenues of the authority.

(5) The bonds shall be signed by the chairperson of the board and countersigned by the manager of the authority. However, the printed or lithographed facsimile signatures of the chairperson and manager may be affixed to coupons, if any, on the bonds. [In accordance with ORS 208.200, each bond payable at the office of the county treasurer shall be registered with the county treasurer who is the custodian of the funds of the authority under ORS 450.945 prior to delivery of the bonds to the bond purchaser.]

(6) All legally authorized and issued general obligation bonds or revenue bonds shall be advertised and sold in the manner prescribed in ORS 287.014 to 287.022.

SECTION 11. ORS 456.185 is amended to read:

456.185. (1) Bonds of an authority shall be authorized by its resolution adopted by a vote of a majority of the commissioners, and may be issued in one or more series. [The bonds may be payable at the office of the county treasurer.]

(2) The bonds shall bear such dates, mature at such times, bear interest at such rates, be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payments, at such places, and be subject to such terms of redemption, with or without premium, as such resolution, its trust indenture or mortgage may provide. Bonds of an authority may be issued in zero coupon form or subject to federal taxation of interest thereon if the resolution authorizing issuance so provides. [Each bond payable at the office of the county treasurer shall be signed by, and registered in accordance with ORS 208.200 in the office of, the county treasurer of the county where the authority is located.]

(3) The bonds may be sold at public sale held after notice published once at least five days prior to such sale in a newspaper having a general circulation in the area of operation and in a financial newspaper published in San Francisco, California, or in New York, New York. However, at the discretion of an authority, if the resolution authorizing issuance so provides, the bonds may be sold on a negotiated basis or at private sale without any public advertisement.

SECTION 12. ORS 478.420 is amended to read:

478.420. Bonds authorized under ORS 478.410 shall be issued and sold in the manner prescribed in ORS 287.014 to 287.028. They shall be so conditioned that the district agrees to pay, at the place named, [which may be at the office of the county treasurer,] to the bearer[,] the sum named in lawful money of the United States[,] with interest at the rate named, payable semiannually each year[,] in accordance with the terms of interest coupons attached. [Each bond payable at the office of the county treasurer shall be signed by, and registered in compliance with ORS 208.200 in the office of, the county treasurer of the county.]

SECTION 13. ORS 478.430 is amended to read:

478.430. [(1)] A district board shall ascertain and levy annually, in addition to all other taxes, an ad valorem tax on all the taxable property in the district, sufficient to pay the interest accruing and the principal maturing on the bonds promptly as they become due.

[(2) The county treasurer shall keep all taxes levied under subsection (1) of this section to pay bonds payable at the office of the county treasurer.]

SECTION 14. ORS 478.460 is amended to read:

478.460. [Except as provided by ORS 478.420 and 478.430, all] Funds collected on behalf of the district through the levy of taxes, all donations, contributions, bequests or annuities and all borrowed money received by or on behalf of the district shall be deposited[, in the discretion of the board, either with the county treasurer to the credit of the district fund or] in one or more [banks] depositories, as defined in ORS 295.005, to be designated by the board. Funds shall be drawn out only upon proper order and warrant or check, bearing the signature of those persons authorized to sign warrants or checks by resolution of the board.

SECTION 15. ORS 478.560 is amended to read:

478.560. [Except as provided by ORS 478.430,] Funds accruing to a district, located in two or more counties, from any source shall be deposited[, in the discretion of the board, either with the county treasurer of any of the counties in which the fire district is located or] in one or more [banks] depositories, as defined in ORS 295.005, whose deposits are insured pursuant to federal statute and shall be drawn out only upon proper order and warrant or check bearing the signature of those persons authorized to sign warrants or checks by resolution of the board.

SECTION 16. ORS 523.410 is amended to read:

523.410. (1) A district may assess, levy and collect taxes in an amount each year not to exceed one-fourth of one percent (.0025) of the real market value of all taxable property within the limits of the district, computed in accordance with ORS 308.207. The proceeds of the tax shall be applied by it in carrying out the objects and purposes of ORS 523.030 to 523.050 and 523.420 to 523.490 and for the purpose of financing the employees’ retirement system.

(2) A district may annually also assess, levy and collect a special tax upon all such property in an amount sufficient to pay the yearly interest on bonds theretofore issued by the district and then outstanding, together with any portion of the principal of such bonds maturing within the year. The special tax shall be applied only in payment of interest and principal of bonds issued by the district, but the district may apply any funds it may have toward payment of principal and interest of any such bonds. [If the bonds are registered with a county treasurer under ORS 208.200, the officer who collects the special tax shall transfer the proceeds to the county treasurer referred to in ORS 523.460. If the district bond fund is not sufficient for this purpose, the district shall transfer to the county treasurer any additional funds it has as required to pay the principal and interest of any such bonds.]

(3) Taxes shall be levied in each year and returned to the county officer whose duty it is to extend the tax roll by the time required by law for city taxes to be levied and returned.

(5) Property is subject to sale for nonpayment of taxes levied by the district in like manner and with like effect as in the case of county and state taxes.

SECTION 17. ORS 523.460 is amended to read:

523.460. (1) For the purpose of carrying into effect all or any powers granted by this chapter, the district, when authorized at any properly called election held for that purpose, may borrow money and sell and dispose of general obligation bonds. Except as otherwise provided by this section, the bonds shall never exceed in the aggregate two and one-half percent of the real market value of all taxable property within the limits of the district, computed in accordance with ORS 308.207.

(2) The bonds shall be issued from time to time by the board of commissioners in behalf of the district as authorized by the voters, and may be issued in an amount not to exceed one-half of one percent of the real market value referred to in subsection (1) of this section without the approval of the electors. The bonds shall mature serially within not to exceed 30 years from issue date, and shall bear interest not exceeding seven percent per annum payable semiannually as the board shall determine. The bonds shall be so conditioned that the district agrees to pay to the bearer, at a place named, [which may be at the office of the county treasurer of the county in which proceedings for formation of the district were conducted,] the principal sum[,] of the bonds with interest at the rate named, payable semiannually[,] in accordance with the tenor and terms of the interest coupons attached. [Each bond payable at the office of the county treasurer shall be signed by, and registered in accordance with ORS 208.200 in the office of, the county treasurer referred to in this subsection.]

(4) For the purpose of additionally securing the payment of the principal and interest on general obligation bonds issued under this section, the district may, by resolution of its board which shall constitute part of the contract with the holders of the bonds, pledge all or any part of the net revenue of its geothermal heating system. The board may adopt such a resolution without submitting the question of the pledge to the electors of the district.

SECTION 18. ORS 523.660 is amended to read:

523.660. (1) [Except as otherwise provided by ORS 523.410,] The money of a district shall be deposited in one or more [banks] depositories, as defined in ORS 295.005, to be designated by the board of commissioners. The money shall be withdrawn or paid out only when previously ordered by vote of the board, and upon checks signed by the treasurer or such other person as may be authorized by resolution of the board. Receipts or vouchers, showing clearly the nature and items covered by each check drawn, shall be kept on file.

SECTION 19. ORS 545.381 is amended to read:

545.381. (1) On or before the first Tuesday in April of each year, the board of directors shall make a computation of the whole amount of money necessary to be raised by the district for the ensuing year for any purpose whatsoever in carrying out the Irrigation District Law, including estimated delinquencies on assessments. The board may provide for a reasonable maintenance and operation reserve fund. The amount determined by the board shall constitute an assessment upon all the land included in the district. The amount determined by the board shall be apportioned by the board to the lands owned or held by each person so that each acre of irrigable land in the district shall be assessed and required to pay the same amount, except as otherwise provided in this section and ORS 545.385, 545.387, 545.389, 545.391 and 545.413. [When bonds of the district registered with the county treasurer under ORS 208.200 are outstanding, the board shall send a copy of the computation of the annual assessment to the county treasurer of the principal county, as defined in ORS 198.705.]

(2) The board of directors shall determine the number of irrigable acres owned by each landowner in the district and the proportionate assessments as nearly as may be from available information. If a substantial error is made in the determination, proper adjustment may be made at the next equalization of the annual assessment by increasing or decreasing the amount any landowner shall pay. Any lands owned by any person totaling less than one acre in area shall be assessed as one acre.

(3) Until such time as the water rights appurtenant to any tract of land within an irrigation district are acquired by the district, the assessments against that land, except for operation, maintenance and drainage, shall be in the same proportion to a full assessment as the additional water right to be supplied to the tract bears to a full water right. For operation, maintenance and drainage, each irrigable acre in the district shall be assessed the same, except as otherwise provided in ORS 545.387, 545.389, 545.391 and 545.413.

SECTION 20. ORS 547.555 is amended to read:

547.555. (1) The board of supervisors may, if in its judgment it seems best, and subject to the approval of the electors of the district, issue bonds of the district for any purpose necessary or convenient to carry out the provisions of the Drainage District Act, including refunding of outstanding bonds, in denominations of not less than $100, bearing interest from date at a rate determined by the board, payable semiannually, to mature at annual intervals within 40 years, commencing after a period of years not later than five years, to be determined by the board of supervisors, both principal and interest being payable at some convenient insured institution or trust company, as those terms are defined in ORS 706.008, that is named in the bonds. Principal and interest, including principal, interest and premium payments made to redeem bonds under ORS 547.580, may be payable at the office of the treasurer of the district [or of the county treasurer of the county in which proceedings for the formation of the district were conducted].

(2) The bonds shall be signed by the president of the board, attested with the seal of the district and by the signature of the secretary of the board. They may be issued so as to mature serially in annual amounts so as to be approximately equal, principal and interest, and may be issued so as to include a sum sufficient to pay the first four years’ interest, or less, to accrue on the bonds. [Each bond payable at the office of the county treasurer shall be signed by, and registered in accordance with ORS 208.200 with, the county treasurer referred to in subsection (1) of this section.]

SECTION 21. ORS 547.580 is amended to read:

547.580. (1) After five years from the issuance of bonds, the board may direct the district treasurer [or pay the county treasurer referred to in ORS 547.555 if bonds are payable at the office of the county treasurer to pay such an amount of the bonds not due as the surplus funds in the general fund will] to redeem so much of the bonds not yet due as surplus funds permit at the lowest value at which they may be offered for liquidation, or call bonds at a premium of three percent. Notwithstanding anything contained in ORS 547.555 to 547.580, the board may call for payment and retire before maturity any bonds issued in accordance with ORS 547.555 to 547.580. [The board may transfer to the county treasurer sufficient district funds to pay principal and accrued interest and a premium of three percent upon the principal. The county treasurer shall make the payments at the office of the county treasurer.]

(2) Notice of intention to call bonds for payment before maturity shall be given by the district board by publication in a newspaper published and regularly circulated in the counties in which the district lands lie, at least once a week for four successive weeks, beginning not less than 90 days prior to an interest-paying period. The notice shall state the number and amount of the bonds to be retired, the price to be paid, and the date and place where the same are to be paid.

(3) Bonds shall be retired in numerical order, and not otherwise. No bonds shall be retired under this section except on a day when interest is payable by the terms of the bonds and on and after the date named in the published notice. Interest on bonds described therein shall cease after the date named in the published notice.

SECTION 22. ORS 547.605 is amended to read:

547.605. The board of trustees of any drainage or levee district having an outstanding indebtedness of not less than $3 per acre for each acre of land included in the district, evidenced by bonds or warrants of the district, may, if the board considers it for the best interests of the district, fund or refund the same or any part thereof and issue bonds of the district therefor in sums of not less than $100 nor more than $1,000, each having not more than 20 years to run, and bearing a rate of interest determined by the board of trustees, payable semiannually. Both principal and interest may be made payable at [the office of the county treasurer referred to in ORS 547.555] a place named by the board. The bonds shall be negotiable in a form to be selected by the board of trustees, numbered consecutively, signed by the president of the board and countersigned by the clerk of the county in which payable, who shall thereto affix the official seal. Interest coupons shall be attached to each bond. The bonds shall then be delivered to the treasurer of the district, who shall stand charged upon the official bond for all bonds delivered to the treasurer and the proceeds thereof. [Each bond payable at the office of the county treasurer shall be signed by, and registered in accordance with ORS 208.200 with, the county treasurer referred to in ORS 547.555.]

SECTION 23. ORS 547.610 is amended to read:

547.610. (1) The board of trustees shall sell or exchange the bonds so issued, on the best available terms, for any legal indebtedness of the district. If the sale is made for money, the proceeds shall be applied to the payment of liabilities existing against the district at that time. When the bonds are exchanged for bonds or warrants or other legal evidence of district indebtedness, the [county] district treasurer shall at once cancel the evidence of indebtedness by indorsing thereon the amount for which they were received, the word “canceled” and the date of cancellation.

(2) The district treasurer [or the county treasurer if bonds are payable at the office of the district or county treasurer] shall keep a record of all bonds issued, sold or exchanged under subsection (1) of this section by number, date of issuance, date of sale, amount, date of maturity, rate of interest, the name and post-office address of the purchaser, and if exchanged, what evidence of indebtedness was received therefor. This record shall be open at all times for public inspection.

SECTION 24. ORS 547.615 is amended to read:

547.615. The board of trustees shall cause to be assessed and levied each year upon the assessable property of the district, in addition to the levy authorized for other purposes, a sufficient sum to pay the interest on outstanding bonds issued in conformity with the provisions of ORS 547.605 to 547.620, accruing before the next annual levy, and such proportion of the principal as in their judgment will be for the best interests of the district, to create and raise a sinking fund to retire the bonds and to be used for no other purpose whatever. [If the bonds are payable at the office of the county treasurer, the proceeds of the levy shall be transferred to the county treasurer of the county referred to in ORS 547.555.]

SECTION 25. ORS 547.620 is amended to read:

547.620. (1) Whenever there is in the sinking fund a surplus of $500 or more, over and above the interest maturing before the next levy, the district treasurer shall give notice for two weeks in one or more newspapers of general circulation printed and published in the county in which the district was first organized. The notice shall state the amount of such surplus and that on the day and hour named in the notice, sealed propositions will be received at the office of the district treasurer [or at the office of the county treasurer referred to in ORS 547.555] for surrender of bonds of the district.

(2) The district treasurer shall, at the time and place named, open the propositions and accept the lowest bid. However, no bid shall be accepted for an amount exceeding the par value of the bonds with accrued interest thereon and seven percent premium. If bids are not offered at that figure, or less, sufficient to exhaust the amount of surplus on hand, the board of trustees may then call in any bonds of the district, giving the numbers thereof in the exact order of their issuance beginning with the lowest or first number, and redeem the same at par value and five percent premium with accrued interest to date of such recall. Thereafter interest thereon ceases and the amount due shall be set aside for payment of the bonds whenever presented.

SECTION 26. ORS 547.665 is amended to read:

547.665. (1) The bonds shall be numbered consecutively, beginning with number 1 and following in numerical order. They shall mature in the manner provided by ORS 547.660, in annual amounts of principal and interest approximately equal, in not less than five nor more than 40 years from the date of issue, as the board of supervisors may determine. They shall be negotiable in form. The bonds shall bear interest at a rate determined by the board, payable annually or semiannually on dates determined by the board. Payment of principal and interest shall be at the place designated in the bonds and coupons [which may be the office of the county treasurer referred to in ORS 547.555]. The bonds, except as otherwise provided in ORS 547.655 to 547.695, shall be each of the denomination of not less than $100 nor more than $1,000, shall be signed by the president and secretary, and the seal of the board of supervisors shall be affixed thereto.

(2) Each bond shall bear on its back the registration certificate of the [county treasurer or the] treasurer of the district. Coupons for interest or for interest and principal, as the case may be, shall be attached to each bond and shall bear the facsimile signature of the secretary of the district. The [county or] district treasurer shall register the bonds in a book kept in the office of the treasurer for that purpose, in which shall be stated the number, date of issue and of sale, amount of the bond, time and place of payment, rate of interest, number of coupons attached, and any other description proper for future identification of each bond. However, the board of supervisors may call for payment and retire before maturity any bonds issued in accordance with ORS 547.655 to 547.695, on payment of the principal remaining unpaid at the date of call, together with earned interest to and including the date of the call for payment.

(3) The board of supervisors may stipulate that during the first period of the bond term, not exceeding five years, there shall be no payment of principal or interest.

SECTION 27. ORS 547.675 is amended to read:

547.675. (1) Upon delivery of the bonds, the secretary of the district shall furnish to the county clerk of each county in which lands of the district are situated:

(a) A certified copy of the resolution of the board authorizing the bonds, of the resolution of the board fixing the annual per acre payments to be made in payment of the principal and interest of the bonds, and of the district treasurer’s registration record;

(b) A certified statement of the lands within the district liable under the bonds, described in subdivisions of 40 acres except where the individual ownership thereof requires a description in lesser subdivisions or by metes and bounds or by calls; and

(c) A certified statement of the total amount of refunding bonds charged against each parcel of land, the amount of the annual payment thereof, the date of payment and the rate of interest.

(2) The county clerk shall record such information in a book to be provided by the county clerk for that purpose, which shall then be a bond lien docket of the drainage district for the lands of the district within the county and shall constitute the total of such charges or assessments and the maximum of the lien against the lands by reason of the bonds. This sum shall not be increased or enlarged by any subsequent assessment because of any delinquencies in payment of the bond lien and interest charge against any other tract or parcel of land in the district. Unpaid annual assessments or charges docketed therein shall bear interest at the rate of six percent per annum. All unpaid annual payments, principal and interest, shall remain a lien on the tract or parcel of land in favor of the district and shall have priority over all other liens and encumbrances except the lien of state, county and municipal taxes.

(3) Any time after issuance of the bonds, the owner of any tract or parcel of land may relieve the tract of parcel of the lien by paying to the county clerk, for the benefit of the district, the amount of the principal and interest remaining unpaid thereon. The clerk shall thereupon pay the money over to the district treasurer[, or the county treasurer referred to in ORS 547.555 if bonds are payable at the office of the county treasurer,] to be credited to the district’s bond fund. The clerk shall note on the bond lien record the fact of such payment and of the satisfaction and discharge of the lien. Upon such payment of the lien on any tract or parcel of land, the tract or parcel shall forever thereafter be relieved from taxation or assessment for the payment of the bonds or of any bonds issued to refund the bonds, except for such assessment or charge as may be levied by the board of supervisors to create an emergency fund, as provided in ORS 547.680.

(4) The collector of the district’s assessment and taxes shall receive any past due bond of the district or any past due coupon on any bond of the district in payment of any of the charges and payments referred to in this section.

(5) The lien of the annual payments or charges shall be foreclosed as other drainage district liens are foreclosed.

SECTION 28. ORS 547.697 is amended to read:

547.697. (1) [When bonds are payable at the office of the county treasurer,] The district treasurer shall [transfer to the county treasurer referred to in ORS 547.555] deposit all money arising from the sale of refunding bonds, and sufficient money arising from assessment and levy to meet the next installment of principal and interest on the bonds of the district, [. The county treasurer shall keep the money] in a bond fund separate from its general fund. From the bond fund the [county] treasurer shall pay the principal on bonds as they mature and the interest when the coupons are presented.

(2) Except as otherwise provided by subsection (1) of this section, all money received by the district, including money from the sale of bonds other than refunding bonds and for the construction and acquisition of works, shall be credited to a general fund. The district treasurer shall use the general fund to pay all obligations of the district other than those described by subsection (1) of this section.

SECTION 29. ORS 554.120 is amended to read:

554.120. (1) The board of directors shall cause to be kept a well-bound book entitled “Records of Proceedings of Board of Directors,” in which shall be recorded minutes of all meetings, proceedings, certificates, bonds, and any and all corporate acts, which records shall be at all times open to the inspection of anyone interested, whether members or creditors.

(2) A lien docket shall also be provided, in which, as to every tract of each owner, all assessments or liens shall be charged and all payments shall be credited, and in which interest on any assessments in arrears shall be charged at time of payment of any installment, to the end that such record shall show the true condition of all liens and the amount thereof.

(3) Except as otherwise provided by ORS 554.160 (2), all money of the corporation shall be deposited with a convenient insured institution or trust company, as those terms are defined in ORS 706.008, in the name of the corporation, and all funds provided to be segregated and held separate shall be so kept, and an accounting of each of such funds upon the books of the corporation shall be correctly kept.

(4) A warrant register shall be provided in which shall be separately kept a record of all warrants issued, the number, date and amount thereof with the name of payee, and the date paid, showing principal and interest separately. The corporation[, or the county treasurer of the county where the principal office of the corporation is located if bonds are payable at the office of the county treasurer,] shall keep a register of all bonds with a description thereof, the date thereof and when issued, and generally such a record as shall show all outstanding bonds separately of the several issues and kinds of payments.

SECTION 30. ORS 554.160 is amended to read:

554.160. (1) When any bonds or obligations of the corporation are payable from revenue of assessments pledged for the payment thereof, the board of directors shall, at the time of creating such indebtedness or issuing such bonds or obligations or at any time thereafter when assessments therefor are made, designate such fund by appropriate name and shall at the time of making each assessment thereafter determine the amount and portion of the assessment in dollars which is required to be then made for revenue of such fund. In determining and levying every assessment provided in ORS 554.005 to 554.340 the board of directors shall provide separately for the amount to be so raised for each of the several funds so designated and named including the general operation and maintenance fund.

(2) The revenues apportioned to the funds pledged to the payment of bonds and obligations shall be separately held and kept and accounted for. The corporation [or the county treasurer] shall disburse the funds only for the purposes for which levied until the indebtedness and obligation for which the assessment was made is fully paid with interest, whereupon the remainder shall be transferred to the general fund of the corporation for the payment of expenses of the corporation and its operation and maintenance. At the time of making assessments the board of directors shall first determine the estimated amount necessary for the expenses of operation and maintenance and then the several amounts for the respective funds, and determine that the whole amount thereof is within the limitations, restrictions and provisions of the landowners’ notice provided for in ORS 554.170 to 554.190.

SECTION 31. ORS 554.220 is amended to read:

554.220. (1) At any time after recording the landowners’ notice as provided in ORS 554.190 and adoption of a plan for improvement of the land described in the articles of incorporation as provided in ORS 554.210, the board of directors may, if in their judgment it seems best, and subject to the limitations, restrictions and provisions of the landowners’ notice, issue bonds or other obligations of the corporation necessary or convenient for improving the lands, including the refunding of outstanding bonds and any indebtedness of the corporation.

(2) The bonds shall be in such denominations as the board may determine, and bear interest from date at a rate determined by the board, payable semiannually, to mature at intervals to be determined by the board, both principal and interest being payable at some convenient insured institution or trust company, as those terms are defined in ORS 706.008, that is named in the bonds [or at the office of the county treasurer referred to in ORS 554.160. Each bond, if payable at the office of the county treasurer, shall be registered at the office of the county treasurer in accordance with ORS 208.200 prior to delivery of the bonds to the bond purchaser]. The bonds shall be signed by the president of the corporation and attested with the seal of the corporation and the signature of the secretary. They may be issued so as to mature serially in annual amounts so as to be approximately equal, principal and interest, and may be issued so as to include a sum sufficient to pay the first four years’ interest, or less, to accrue on the bonds, and be numbered serially in the order in which they mature. Each such bond shall have interest coupons attached bearing the serial number of the bond, which coupons shall be serially numbered in the order of maturity.

(3) If the directors so determine, they may issue for the purposes stated in this section, or as provided in ORS 554.270 and 554.280, one or more amortized installment obligations of the corporation constituting a designated series of such bonds as particularly described in ORS 554.280, all of which obligations shall be evenly and ratably paid as the attached installments mature as determined by the board of directors and as described in ORS 554.280. The latter bonds and coupons shall be executed and attested as provided by subsections (1) and (2) of this section for bonds of the corporation.

SECTION 32. ORS 554.280 is amended to read:

554.280. (1) For the purpose stated in ORS 554.270, the board of directors shall by resolution determine and declare that the same is to the best interest of the corporation; briefly describe the purpose and object thereof and the amount of money required therefor; provide for, authorize and direct issuing the installment coupon obligations, describing and fixing the number of such obligations constituting the series and the denominations thereof; and shall adopt and prescribe the form and substance of such obligations. Each obligation shall bear the same series designation and be separately serially numbered, which series designation and serial number shall likewise appear upon each installment coupon attached. Coupons of each obligation shall be serially numbered in the order of their maturity and shall be so payable at a place designated in the bonds [which may be the office of the county treasurer referred to in ORS 554.160. The obligation, if payable at the office of the county treasurer, shall be registered at the office of the county treasurer in accordance with ORS 208.200 prior to delivery of the bonds to the bond purchaser].

(2) Interest at a rate determined by the board may be included and amortized for the retirement of both principal and interest as provided in the resolution and in this section. Every obligation shall recite that it is issued pursuant to such resolution and payable from a fund derived from annual assessments of the lands described in the articles of incorporation for such purpose, the proceeds of which are pledged for the payment, and that the corporation covenants to levy such assessments according to law and the resolution in amount sufficient, inclusive of estimated delinquencies, to pay the installment coupons thereto attached as they mature.

(3) The resolution shall appropriately designate the fund. The board of directors shall thereafter on or before the time fixed in the bylaws determine and assess the amount necessary to be assessed at such time for payment of the installment coupons as they mature. Proceeds from such assessment shall constitute a fund which is pledged for payment of such obligations. The treasurer shall segregate and keep separate the proceeds of every assessment for such funds, and shall deposit the same in an insured institution as defined in ORS 706.008, in a separate account designating such fund[, or if the obligations are payable at the office of the county treasurer, the treasurer shall transfer them to the county treasurer]. The district [or county] treasurer shall not disburse the same except as provided in this section.

SECTION 33. (1) The repeal of ORS 208.200, 208.210 and 208.220 by section 1 of this 2001 Act and the amendments to ORS 264.250, 264.300, 264.470, 440.380, 440.395, 440.400, 450.870, 450.890, 450.915, 456.185, 478.420, 478.430, 478.460, 478.560, 523.410, 523.460, 523.660, 545.381, 547.555, 547.580, 547.605, 547.610, 547.615, 547.620, 547.665, 547.675, 547.697, 554.120, 554.160, 554.220 and 554.280 by sections 2 to 32 of this 2001 Act apply to all bonds issued by an authority, district, city or port, whether issued before, on or after the effective date of this 2001 Act.

(2) For bonds registered with the county treasurer under ORS 208.200 (1999 Edition) before the effective date of this 2001 Act, the county treasurer shall transfer to the public body issuing the bonds all records and bond proceeds in the possession of the county treasurer no later than 30 days after the effective date of this 2001 Act.

(3) Notwithstanding the provisions of this section, the repeal of ORS 208.200, 208.210 and 208.220 by section 1 of this 2001 Act and the amendments to ORS 264.250, 264.300, 264.470, 440.380, 440.395, 440.400, 450.870, 450.890, 450.915, 456.185, 478.420, 478.430, 478.460, 478.560, 523.410, 523.460, 523.660, 545.381, 547.555, 547.580, 547.605, 547.610, 547.615, 547.620, 547.665, 547.675, 547.697, 554.120, 554.160, 554.220 and 554.280 by sections 2 to 32 of this 2001 Act, the county treasurer shall take appropriate action to ensure that bond payments are made timely during the 30-day period described in subsection (2) of this section.

Approved by the Governor May 29, 2001

Filed in the office of Secretary of State May 30, 2001

Effective date January 1, 2002

__________