71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 387
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Veterans' Affairs)
CHAPTER ................
AN ACT
Relating to bonds issued on behalf of Department of Veterans'
Affairs; amending ORS 407.085, 407.385, 407.415, 407.425 and
407.515; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 407.385 is amended to read:
407.385. (1) Money received as a loan under this chapter shall
be used only for the acquisition of a home or farm.
(2) Except as provided in this section, use of all or any part
of a loan received under this chapter for investment or any
purpose other than the acquisition of a home or farm constitutes
an act of default and results in immediate acceleration of the
unpaid balance of the loan.
(3) When the Director of Veterans' Affairs determines that a
borrower is using loan moneys in violation of this section, the
director shall immediately commence any action or proceeding
necessary to recover for the state those moneys or any property
obtained therewith.
(4) A failure by a borrower to move into the home or farm
securing the borrower's loan and to use it as the borrower's
principal residence within 60 days after the loan or assumption
is made, or within such extension as may be granted in writing by
the director, shall be conclusively presumed to constitute a
violation of this section. A request for an extension for good
cause shall be made in writing within the 60-day period. The
applicant may file a written request for a hearing within 30 days
after a denial of the request for extension.
(5) The director shall not approve any rental or lease of a
home or farm that affects the { + federally + } tax exempt
status of bonds issued under Article XI-A of the Oregon
Constitution. When the rental or lease does not affect the { +
federally + } tax exempt status of such { + federally tax
exempt + } bonds, the director may approve in writing the rental
or lease of a home or farm after the home or farm is used as the
principal residence of the borrower. The director may establish
factors to consider when determining whether to approve the
rental of a home or farm.
SECTION 2. ORS 407.415 is amended to read:
Enrolled Senate Bill 387 (SB 387-A) Page 1
407.415. In order to provide funds for the purposes specified
in Article XI-A of the Oregon Constitution, bonds may be issued
in accordance with the provisions of ORS 286.031 to 286.061.
{ + Bonds issued under this section may be issued on a federally
tax exempt or taxable basis. Bonds issued on a federally tax
exempt basis may be issued under any applicable provisions of the
Internal Revenue Code as may be determined by the Director of
Veterans' Affairs. The director shall enter into such covenants
and agreements with bondholders as may be necessary or
appropriate to maintain the federally tax exempt status of
interest on bonds issued on a federally tax exempt basis. + }
SECTION 3. ORS 407.425 is amended to read:
407.425. In issuing bonds under ORS 407.415, the State
Treasurer may structure an issue of bonds with regard to amounts,
maturity dates, interest rates and such other terms and
conditions of the bonds. In order to meet the specific
requirements of a selected group of applicants for loans under
this chapter and before asking the State Treasurer to structure
an issue of bonds under this authority, the Director of Veterans'
Affairs { - must - } { + may + } consider { + factors
including, but not limited to, + }the number of applications
{ + and loans + } on hand { + , the amount of debt that + }
{ - which - } will be { - funded by the issue - }
{ + financed or refinanced by the issue, directly or
indirectly + }, the solvency of the program as a whole, the
current value of money, the condition of the tax exempt { + and
taxable + } bond { - market - } { + markets + } and the
effect of the issue on all veterans.
SECTION 4. ORS 407.515 is amended to read:
407.515. (1) The Oregon War Veterans' Bond Sinking Account is
created as a restricted account within the Oregon War Veterans'
Fund. The sinking account shall consist of all moneys received as
payments on principal and interest of loans made under ORS
407.125; all moneys received as accrued interest upon bonds sold;
all moneys derived from tax levies provided for in ORS 291.445;
all moneys derived from the sale, rental or administration of
property acquired by foreclosure or other proceeding, or deed;
all moneys received as interest upon investments of the account
and the Oregon War Veterans' Fund; all moneys received as
proceeds from the sale of refunding bonds; and all other moneys
accruing under ORS 407.115, 407.125, 407.165, 407.205, 407.275,
407.415, 407.495 and 407.515 not required to be credited to the
Oregon War Veterans' Fund.
(2) Disbursements from the sinking account shall be made upon
submission of duly verified claims, approved by the Director of
Veterans' Affairs, to the Secretary of State, who shall audit the
same in the manner that other claims against the state are
audited. The moneys in the sinking account, other than those
derived from tax levies and from sales of refunding bonds, hereby
are continuously appropriated for payment of expenses of
administration of ORS 407.115, 407.125, 407.165, 407.205,
407.275, 407.415, 407.495 and 407.515 to 407.565. The moneys in
the sinking account may be invested as provided in ORS 293.701 to
293.820.
(3) Amounts in the sinking account shall be held and set aside
separately from the amounts in the Oregon War Veterans' Fund and
any other funds or assets of this state, but such account may be
accounted for as part of the Oregon War Veterans' Fund.
(4) The debt service reserve account within the sinking account
shall be maintained as a subaccount within the sinking account
Enrolled Senate Bill 387 (SB 387-A) Page 2
dedicated to provide funds for the payment of bonds issued under
authority of Article XI-A of the Oregon Constitution.
(5) Nothing in this section shall be construed so as to impair
any covenant or agreement with the holders of such bonds
heretofore entered into by the director on behalf of this state
with respect to the maintenance of the sinking account as
heretofore constituted and any such covenant and agreement shall
remain in full force and effect.
{ + (6) The director may create subaccounts in the sinking
account necessary for appropriate administration of the
director's duties including, but not limited to, providing for
the issuance, security, payment or administration of bonds or to
preserve the federally tax exempt status of bonds issued on a
federally tax exempt basis. The director may segregate such
subaccounts from other subaccounts used for other purposes
including, but not limited to, the issuance, security, payment or
administration of bonds or other obligations, whether previously
or subsequently issued. + }
SECTION 5. ORS 407.085 is amended to read:
407.085. (1) As used in { - section 1, - } Article XI-A,
Oregon Constitution, and { - in - } this chapter, for the
purposes of administration { - , - } { + : + }
{ + (a) + } 'Acquisition' means:
{ - (a) - } { + (A) + } Purchase and improvement of a home
or farm.
{ - (b) - } { + (B) + } Payment of the balance of the
purchase price and interest on a purchase contract, and the
improvement of property thereby acquired.
{ - (c) - } { + (C) + } { - Refinancing - }
{ + Refinance + } of an existing purchase-money mortgage or
mortgage in the nature thereof, and the improvement of property
thereby purchased.
{ - (d) - } { + (D) + } Improvement of a home or farm.
{ - (2) As used in Article XI-A, Oregon Constitution, and in
ORS 407.165, 407.415, 407.495 and 407.515 to 407.565, 'bond '
includes, but is not limited to, serial bonds, term bonds, notes
and other evidence of indebtedness. - }
{ + (b) 'Bonds' includes, but is not limited to, serial
bonds, term bonds, notes, obligations, lines of credit, revolving
credit agreements, loans, financing agreements or other evidence
of indebtedness determined by the Director of Veterans' Affairs,
with the approval of the State Treasurer, to be necessary or
desirable to provide funds for the purposes expressed in Article
XI-A of the Oregon Constitution. + }
{ - (3) - } { + (2) + } As used in this chapter:
{ - (a) 'Director' means Director of Veterans' Affairs. - }
{ - (b) - } { + (a) + } 'Committee' means the Advisory
Committee provided for by ORS 406.210.
{ + (b) 'Director' means the Director of Veterans'
Affairs. + }
(c) 'Home' means any residential-type structure, including
outbuildings and the real property in connection with it, if any,
including long-term leaseholds, which is established, maintained
and used primarily as a principal residence by the veteran.
(d) 'Improvement' means new construction or any necessary or
beneficial additions, alterations or changes appurtenant to the
home or farm which protect or improve the basic livability or
energy efficiency of the premises.
(e) 'Mobile home' means a structure, transportable in one or
more sections, which is 10 feet or more in width, and contains
Enrolled Senate Bill 387 (SB 387-A) Page 3
more than 500 square feet of living space figured on exterior
dimensions of the structure, exclusive of any hitch and is
designed to be used as a dwelling by one family, and which
remains as personal property under the laws of this state.
SECTION 6. { + 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. + }
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Enrolled Senate Bill 387 (SB 387-A) Page 4
Passed by Senate February 20, 2001
Repassed by Senate April 3, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House March 27, 2001
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Speaker of House
Enrolled Senate Bill 387 (SB 387-A) Page 5
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
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Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 387 (SB 387-A) Page 6