Chapter 41 Oregon Laws 2003

AN ACT

HB 2136

Relating to investment maturity; amending ORS 294.135.

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

SECTION 1. ORS 294.135 is amended to read:

294.135. (1) [No] An investment made by a custodial officer under ORS 294.035 (1) to (6) and (8) to (10) or 294.125 [shall] may not exceed a maturity of 18 months or the date of anticipated use of the funds by the county, municipality, school district or other political subdivision to which the funds belong, whichever period is shorter. However:

(a) The custodial officer may make investments having a maturity longer than 18 months when the governing body of the county, municipality, school district or other political subdivision to which the funds belong has adopted a written investment policy [which] that, prior to adoption, was submitted to the Oregon Short Term Fund Board for review and comment to the governing body, [which] that includes guidelines concerning maximum investment maturity dates and [which] that provides by its terms for readoption not less than annually; or

(b) When the funds in question are being accumulated for [any purpose for which the county, municipality, school district or other political subdivision to which the funds belong is permitted under the law of this state to accumulate and hold funds for a period exceeding one year then, and in any such case,] an anticipated use that will occur more than 18 months after the funds are invested, then, upon the approval of the governing body of the county, municipality, school district or other political subdivision, the maturity of the investment or investments made with [such funds may exceed the maturities elsewhere provided for in this section, and the maturity of such investments may be made to coincide as nearly as practicable with the expected use of the funds] the funds may occur when the funds are expected to be used.

(2) The maximum term of any repurchase agreement transaction [shall] may not exceed 90 days.

[(3) Notwithstanding any other provision of law, when a municipality or other political subdivision is required by an agency of the state or by resolution of the municipality or political subdivision to maintain long-term reserves for a period exceeding one year for future construction projects or for uses other than as a reserve for payment of debt service, then, upon the approval of the governing body of the municipality or other political subdivision, the maturity of the investments made with such reserves may be made to coincide as nearly as practicable with the expected use of the reserves and the maturity of such investments may exceed one year.]

Approved by the Governor April 1, 2003

Filed in the office of Secretary of State April 2, 2003

Effective date January 1, 2004

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