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.

 
 
 
     71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2447
 
                           A-Engrossed
 
                         Senate Bill 580
                 Ordered by the Senate March 30
           Including Senate Amendments dated March 30
 
Sponsored by Senator MESSERLE (at the request of Coos County
  Commissioners)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Eliminates requirement that county treasurer register bonds and
manage bond proceeds and payments for certain public bonding
authorities.
 
                        A BILL FOR AN ACT
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repealed.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.
  (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 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. - }
  (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
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.
  (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 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. + }
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