72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 817
A-Engrossed
House Bill 2131
Ordered by the House March 31
Including House Amendments dated March 31
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of State Treasurer Randall
Edwards for Oregon Municipal Debt Advisory Commission)
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.
Authorizes state and local government issuers of bonds to enter
into agreement for exchange of interest rates. Declares
obligation of governmental unit, backed by full faith and credit
and taxing power, to be enforceable contract and commits
governmental unit to raise sufficient revenue to repay
obligation. Grants exclusive jurisdiction to tax court to
determine whether use of proceeds of bonded indebtedness is
authorized. Authorizes expenditure of revenue raised by local
option tax beyond period of years during which local option tax
may be levied. Modifies authority of state and local governments
to issue and administer bonds.
A BILL FOR AN ACT
Relating to governmental finance; creating new provisions; and
amending ORS 190.080, 221.410, 223.230, 271.390, 286.061,
287.006, 287.012, 288.165, 288.815, 288.845, 294.326, 294.483,
295.005, 305.410, 305.580, 305.583, 305.587, 305.589, 310.140,
328.205 and 352.805.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2003 Act is added to and made
a part of ORS 287.014 to 287.029. + }
SECTION 2. { + (1) As used in this section:
(a) 'Agreement for exchange of interest rates' or ' agreement'
means a contract, or an option or forward commitment to enter
into a contract, for the exchange of interest rates that provides
for:
(A) Payments based on levels of or changes in interest rates;
or
(B) Provisions to hedge payment, rate, spread or similar
exposure including, but not limited to, an interest rate floor or
cap or an option, put or call.
(b) 'Issuer' means a public body as defined in ORS 288.605, the
Oregon Health and Science University or the Master Settlement
Asset Corporation established in section 3, chapter 2, Oregon
Laws 2002 (fifth special session).
(c) 'Obligation' means a bond, note, bond anticipation note,
commercial paper, certificate of participation or other agreement
made in exercise of the borrowing powers of the issuer.
(2) If the issuer is a state issuer, including the State of
Oregon or an agency, department, board or commission of the State
of Oregon, the State Treasurer may exercise the authority granted
by this section on behalf of the state issuer or the state
issuer, with the approval of the State Treasurer, may exercise
that authority directly.
(3) Subject to subsection (2) of this section, an issuer, or
the State Treasurer on behalf of a state issuer, may enter into
an agreement for exchange of interest rates related to an
obligation the issuer has issued or will issue to manage payment,
interest rate, spread or similar exposure undertaken in
connection with the obligation upon a finding by the issuer, or
the State Treasurer on behalf of a state issuer, that the
agreement benefits the issuer.
(4) The issuer, or the State Treasurer on behalf of a state
issuer, shall include in an agreement for exchange of interest
rates provisions related to payment, term, security,
collateralization, termination, default and remedy that the
issuer, or the State Treasurer on behalf of a state issuer,
determines necessary or appropriate upon consideration of the
covenants applicable to the obligation and the creditworthiness
of the parties.
(5) The issuer, or the State Treasurer on behalf of a state
issuer, may enter into an agreement for exchange of interest
rates only if:
(a) The long-term, senior, unsecured, unenhanced,
unsubordinated debt obligations of the party, or the guarantors
of the party, with whom the issuer, or the State Treasurer on
behalf of a state issuer, enters the agreement are rated in one
of the top three rating categories without gradation by at least
two nationally recognized rating agencies; or
(b) The obligations of the party, or the guarantors of the
party, with whom the issuer, or the State Treasurer on behalf of
a state issuer, enters the agreement are collateralized by cash
or obligations rated in one of the top three rating categories
without gradation by at least two nationally recognized rating
agencies and:
(A) The cash or obligations are deposited with the issuer, or
the State Treasurer on behalf of a state issuer, or with an agent
of the issuer;
(B) The cash or obligations have a market value sufficient to
fully collateralize the obligations of the party under the
agreement as determined at the discretion of the issuer, or the
State Treasurer on behalf of a state issuer; and
(C) The collateral obligations are valued at least quarterly.
(6) With respect to an obligation that the issuer, or the State
Treasurer on behalf of a state issuer, has issued or will issue,
the issuer, or the State Treasurer on behalf of a state issuer,
may agree:
(a) If the obligation bears interest at one or more variable
rates, to pay sums equal to interest at one or more fixed rates
or one or more different variable rates determined under a
formula set forth in the agreement for exchange of interest rates
on an amount not to exceed the outstanding principal amount of
the obligation in exchange for an agreement for the issuer, or
the State Treasurer on behalf of a state issuer, to be paid sums
equal to interest on the same principal amount at a variable rate
determined under a formula set forth in the agreement.
(b) If the obligation bears interest at one or more fixed
rates, to pay sums equal to interest at one or more variable
rates or one or more different fixed rates determined under a
formula set forth in the agreement for exchange of interest rates
on an amount not to exceed the outstanding principal amount of
the obligation in exchange for an agreement for the issuer, or
the State Treasurer on behalf of a state issuer, to be paid sums
equal to interest on the same principal amount at a fixed rate or
rates set forth in the agreement.
(7) The issuer, or the State Treasurer on behalf of a state
issuer, may not enter into an agreement under this section that:
(a) Has a term that exceeds the original term of the obligation
for which the agreement for exchange of interest rates is made
or, in the case of an option or a forward commitment, has a term
that exceeds the reasonably expected term of the obligation for
which the agreement is made; or
(b) Is for a purpose other than to manage payment, interest
rate, spread or similar exposure in connection with the
obligation of the issuer.
(8) The limitation on interest on an obligation in ORS 286.036,
or any other similar limitation, does not apply to interest paid
under an agreement for exchange of interest rates entered into
under this section.
(9) Upon entering into an agreement for exchange of interest
rates under this section and continuing until the agreement is
satisfied, terminated or otherwise no longer in effect, as long
as no payment default has occurred, the issuer, or the State
Treasurer on behalf of a state issuer, shall treat the amount or
rate of interest on the obligation related to the agreement as
the amount or rate of interest payable after giving effect to the
agreement for the purpose of calculating:
(a) Tax levies, if any, to pay bond debt service; or
(b) Other amounts that are based upon the rate of interest of
the obligation.
(10) Subject to covenants applicable to the obligation,
payments required to be made under the agreement by the issuer,
or the State Treasurer on behalf of a state issuer:
(a) May be made from revenues or other moneys committed to or
legally available to pay the underlying debt obligation; and
(b) May rank in an order of priority of payment relative to the
payment of the underlying debt obligation as the issuer, or the
State Treasurer on behalf of a state issuer, determines. In
connection with entering into an agreement, the issuer, or the
State Treasurer on behalf of a state issuer, may enter into an
agreement that enhances or supports the credit of the issuer in
the agreement or enhances or supports the liquidity of the
agreement.
(11) An agreement entered into under this section is not a debt
or other obligation of the state issuer for purposes of any
limitation upon the indebtedness of the state issuer.
(12)(a) The Oregon Municipal Debt Advisory Commission shall
promulgate administrative rules establishing required terms,
conditions, annual or periodic reporting requirements and other
requirements for an agreement for exchange of interest rates
entered into by an issuer other than a state issuer.
(b) The State Treasurer may promulgate administrative rules
establishing required terms, conditions, annual or periodic
reporting requirements and other requirements for an agreement
for exchange of interest rates entered into by a state issuer
acting with the approval of the State Treasurer under subsection
(2) of this section.
(13)(a) Before an agreement for exchange of interest rates may
be entered into under this section, the issuer, or the State
Treasurer on behalf of a state issuer, shall determine whether:
(A) The agreement for exchange of interest rates is being
executed for a permitted purpose and benefits the issuer; and
(B) The requirements of this section have been met.
(b) In addition to the determinations required under paragraph
(a) of this subsection, an issuer other than a state issuer shall
also determine whether the issuer has complied with the
requirements of the administrative rules promulgated by the
Oregon Municipal Debt Advisory Commission under subsection (12)
of this section.
(14) An issuer other than a state issuer shall notify the State
Treasurer of the execution by the issuer of an agreement for
exchange of interest rates under this section. + }
SECTION 3. { + Section 4 of this 2003 Act is added to and made
a part of ORS 288.150 to 288.165. + }
SECTION 4. { + (1) As used in this section:
(a) 'Lawfully available funds' means revenues or other moneys
of a governmental unit from whatever source derived, including
but not limited to moneys credited to the governmental unit's
general fund, revenues from an ad valorem tax authorized to be
levied under the governmental unit's permanent rate limit under
sections 11 and 11b, Article XI of the Oregon Constitution, and
revenues derived from other taxes levied by the governmental unit
in accordance with and subject to limitations and restrictions
imposed under applicable law or contract, that are not dedicated,
restricted or obligated by law or contract to an inconsistent
expenditure or use.
(b) 'Obligation' has the meaning given that term in ORS
288.594.
(2) When a governmental unit pledges its full faith and credit
and taxing powers to the repayment of an obligation, the pledge
constitutes an enforceable promise or contract by the
governmental unit:
(a) To pay the obligation out of lawfully available funds of
the governmental unit; and
(b) If lawfully available funds are insufficient to pay when
due the amounts owing on the obligation, to levy, impose and
collect a tax that is within the authority of the governmental
unit to levy, impose and collect in an amount sufficient to pay
the amounts owing under the obligation, including past due
amounts and penalties.
(3) If a governmental unit fails to pay when due an amount
owing under an obligation secured by a pledge of the full faith
and credit and taxing powers of the governmental unit, the owner
of the obligation, or a trustee appointed to act on behalf of the
owner, may bring an action in the circuit court for the county in
which the principal offices of the governmental unit are located
to compel the governmental unit to:
(a) Appropriate and expend sufficient lawfully available funds
to pay the amounts owing on the obligation; or
(b) If lawfully available funds are insufficient to pay when
due the amounts owing on the obligation, levy, impose and collect
a tax that is within the authority of the governmental unit to
levy, impose and collect in an amount sufficient to pay the
amounts owing under the obligation, including past due amounts
and penalties.
(4) An owner of the obligation, or a trustee appointed to act
on behalf of the owner, may initiate a proceeding to impose
remedial sanctions under ORS 33.055 against members of a
governing body for failure to comply with an order of the court
under this subsection. + }
SECTION 5. { + Section 6 of this 2003 Act is added to and made
a part of ORS 280.040 to 280.145. + }
SECTION 6. { + Subject to ORS 294.305 to 294.565 and the
applicable provisions of a charter, ordinance or resolution of a
subdivision, a subdivision may use revenues raised by a local
option tax beyond the period of years during which the
subdivision is authorized to levy the local option tax if the
revenue is used for the purpose authorized by the electors. + }
SECTION 7. ORS 190.080 is amended to read:
190.080. (1) An intergovernmental entity created by an
intergovernmental agreement under ORS 190.010 may, according to
the terms of the agreement:
(a) Issue revenue bonds under ORS 288.805 to 288.945 { + or
enter into financing agreements authorized under ORS 271.390 + }
to accomplish the public purposes of the parties to the
agreement, if after a public hearing the governing body of each
of the units of local government that are parties to the
agreement approves, by resolution or order, the issuance of the
revenue bonds { + or entering into the financing agreement + };
(b) Enter into agreements with vendors, trustees or escrow
agents for the installment purchase or lease, with option to
purchase, of real or personal property if the period of time
allowed for payment under an agreement does not exceed 20 years;
and
(c) Adopt all rules necessary to carry out its powers and
duties under the intergovernmental agreement.
(2) Except as provided in ORS 190.083, an intergovernmental
entity may not levy taxes or issue general obligation bonds.
(3) The debts, liabilities and obligations of an
intergovernmental entity shall be, jointly and severally, the
debts, liabilities and obligations of the parties to the
intergovernmental agreement that created the entity, unless the
agreement specifically provides otherwise.
(4) A party to an intergovernmental agreement creating an
intergovernmental entity may assume responsibility for specific
debts, liabilities or obligations of the intergovernmental
entity.
(5) Any moneys collected by or credited to an intergovernmental
entity shall not accrue to the benefit of private persons. Upon
dissolution of the entity, title to all assets of the
intergovernmental entity shall vest in the parties to the
intergovernmental agreement. The agreement creating the entity
shall provide a procedure for:
(a) The disposition, division and distribution of any assets
acquired by the intergovernmental entity; and
(b) The assumption of any outstanding indebtedness or other
liabilities of the entity by the parties to the intergovernmental
agreement that created the entity.
(6) An intergovernmental entity created by intergovernmental
agreement under ORS 190.010 may be terminated at any time by
unanimous vote of all the parties to the intergovernmental
agreement or as provided by the terms of the agreement.
SECTION 8. ORS 271.390 is amended to read:
271.390. (1) As used in this section:
{ + (a) 'Council of governments' means a council of
governments or other similar entity created prior to the
enactment of ORS 190.010 (5) on September 29, 1991. + }
{ - (a) - } { + (b) + } 'Municipality' has the meaning
given that term in ORS 288.515.
{ - (b) - } { + (c) + } 'Real or personal property' means
land, improvements to land, structures, fixtures, personal
property, including furnishings, equipment and computer software
purchases and licenses, and any costs that may be capitalized
under generally accepted accounting principles and treated as
costs of personal property.
(2) { - Any - } { + A + } municipality { + or a council of
governments + } may enter into contracts for the leasing, rental
or financing of any real or personal property that the governing
body determines is needed, including contracts for rental, long
term leases under an optional contract for purchase, financing
agreements with vendors, financial institutions or others, or for
purchase of any property. Leases or contracts made by a
municipality { + or a council of governments + } shall be made
subject to the terms of its charter { + , intergovernmental
agreement or other organizing document + }, if applicable. If
authorized by the governing body, such contracts may:
(a) Provide that the obligations of the municipality { + or
council of governments + } under the contract shall be secured by
a mortgage on or other security interest in the property to be
leased, rented, purchased or financed under the contract.
(b) Provide that the obligations of the municipality { + or
council of governments + } under the contract shall be payable
out of all or any designated portion of the lawfully available
revenues of the municipality { + or council of governments + },
which revenues may be pledged to the payment of those
obligations.
(c) If authorized by the charter { + , intergovernmental
agreement or other organizing document + } of the
municipality { + or council of governments + }, contain a
covenant on the part of the municipality { + or council of
governments + } to budget and appropriate in each fiscal year, in
accordance with law, sums sufficient to pay when due the amounts
owing under the contract.
(d) Provide for the issuance of certificates of participation
in the payment obligations of the municipality { + or council of
governments + } under the contract and contain such other
covenants, agreements and provisions as are determined to be
necessary or appropriate in order to better secure the
obligations of the municipality { + or council of
governments + }.
(3) The lien of { - any such - } { + the + } pledge,
mortgage or security interest { - shall be - } { + is + }
valid and binding from the time { + of entering into + } the
contract { - is entered into - } . The { - revenues - }
{ + revenue + } or property { - shall be - } { + is + }
immediately subject to the lien without physical delivery, filing
or other act, and the lien { - shall be - } { + is + }
superior to all other claims and liens of any kind whatsoever.
Subject to the terms, provisions and limitations of the contract,
the lien may be foreclosed by a proceeding brought in the circuit
court of the county in which the municipality { + , + } or the
greater part thereof { + , or the main office of the council of
governments + } is located, and any tangible real or personal
property subject to the lien may be sold upon the order of the
court. The proceeds of the sale shall first be applied to the
payment of the costs of foreclosure and then to the amounts owing
under the contract, with any balance being paid to the
municipality { + or council of governments + }. The authority
granted by this section is in addition to, and not in lieu of,
any other statutory or charter authority.
(4) { - Any - } { + A + } municipality { + or council of
governments + } that has entered into a lease purchase or
installment purchase agreement may enter into a financing
agreement to refinance the
{ - municipality's - } obligations { + of the municipality or
council of governments + } under the lease purchase or
installment purchase agreement.
(5) The estimated weighted average life of a financing contract
executed under this section { - shall - } { + may + } not
exceed the estimated dollar weighted average life of the real or
personal property that is financed with the contract.
SECTION 9. ORS 221.410 is amended to read:
221.410. (1) Except as limited by express provision or
necessary implication of general law, a city may take all action
necessary or convenient for the government of its local affairs.
(2) { + (a) + } { - No city - } { + A city may not + },
unless authorized to do so by its electors, { - shall - }
contract a voluntary floating indebtedness in excess of the sum
of $5,000 for general city purposes. A city official or employee
who creates or officially approves such an indebtedness in excess
of the limitation shall be liable for the amount of the excess.
{ + (b) Notwithstanding paragraph (a) of this subsection, a
city may contract a voluntary floating indebtedness in excess of
the sum of $5,000 for general city purposes without an election
specifically approving the indebtedness if authorized to do so by
a statute or charter. + }
{ - (3) Cities affected by subsections (1) and (2) of this
section are those defined in ORS 221.010. - }
{ + (3) As used in this section, 'city' has the meaning given
that term in ORS 221.010. + }
SECTION 10. ORS 223.230 is amended to read:
223.230. (1) After expiration of the time for filing
application under ORS 223.210, the { - city - }
{ + governmental unit + }shall enter in a docket kept for that
purpose, under separate heads for each local improvement, by name
or number, a description of each lot or parcel of land or other
property against which the final assessment is made, or which
bears or is chargeable for a portion of the actual cost of the
local improvement, with the name of the owner and the amount of
the unpaid final assessment. The entries shall be made as of the
date of initial determination and levy of the final assessment.
(2) The docket shall stand thereafter as a lien docket as for
ad valorem property taxes assessed and levied in favor of the
{ - city - } { + governmental unit + } against each lot or
parcel of land or other property, until paid, for the following:
(a) For the amounts of the unpaid final assessments therein
docketed, with interest on the installments of the final
assessments at the rate determined by the governing body of the
{ - city - } { + governmental unit + } under ORS 223.215; and
(b) For any additional interest or penalties imposed by the
{ - city - } { + governmental unit + } with respect to any
installments of final assessments { - which - } { + that + }
are not paid when due.
(3) All unpaid final assessments together with accrued and
unpaid interest and penalties are a lien on each lot or parcel of
land or other property, respectively, in favor of the
{ - city - } { + governmental unit + }, and the lien shall have
priority over all other liens and encumbrances whatsoever.
(4) For a local improvement district assessment lien or system
development charge installment payment contract lien to continue,
each { - city, not later than June 30, 1998, - }
{ + governmental unit + } shall make the appropriate lien
record { + , + } as prescribed by { + this section and + } ORS
223.393 { + , + } { - and this section of the city - }
available on hard copy or through an on-line electronic medium.
SECTION 11. ORS 286.061 is amended to read:
286.061. (1) All bonds issued { + by the State of Oregon + }
under ORS 286.010 to 286.078, 287.018, 288.020, 293.701, 351.315,
351.345 to 351.460, 351.545, 367.234, 367.258, 367.370 to
367.430, 367.555, 367.565, 367.700, 367.715, 407.415, 407.515,
456.519, 468.195, 470.220, 530.130, 530.230, 541.780 and 541.785
shall be direct general obligations of the State of Oregon, in
negotiable form, and shall embody an absolute promise to pay the
amounts thereof in any coin or currency which, at the time of
payment, is legal tender for the payment of public and private
debts within the United States of America.
(2) The bonds shall be executed with a facsimile signature of
the Governor and Secretary of State and the manual or facsimile
signature of the State Treasurer or Deputy State Treasurer in
accordance with ORS 288.540. The bonds shall be issued as bearer
coupon bonds or in registered form, either as to principal or
interest, or both.
(3) Not less than 20 days before the payment of the principal
or interest falls due on any of the bonds, the respective program
shall prepare and submit to the State Treasurer, for
verification, a claim duly approved by the agency for the amount
necessary to meet the payment thereof. Upon such verification,
the agency shall present the claim in like manner as other claims
against the state are presented. The claim shall be paid out of
moneys provided by law for its payment.
(4) Notwithstanding any other provision of law, when bonds,
obligations or other evidence of indebtedness are sold { + , + }
the proceeds may be used to pay attorney, consultant { + , paying
agent, trustee or + } { - and - } other professional fees and
other expenses incurred { - in the preparation, authorization,
issuance, sale and delivery of, and in all proceedings relating
to such - } { + to authorize, issue, carry and repay the + }
bonds, obligations or other evidence of indebtedness.
(5) The State Treasurer may establish funds and accounts
separate and distinct from the General Fund as may be authorized
by law or reasonably required to protect the bond proceeds and to
arrange for their redemption.
SECTION 12. ORS 287.006 is amended to read:
287.006. (1) Each { - city and town - }
{ + municipality + } shall annually cause to be levied upon the
taxable property within its boundaries a sum sufficient, with
such other revenues as are available, to pay the maturing
interest and principal of all general obligation bonds and to
provide a sinking or debt service fund to pay the interest and
principal of all other bonds issued after June 3, 1929, by
{ - such city or town - } { + the municipality + } at or
before the maturity date or dates thereof. If any such other
bonds are not callable or subject to retirement by purchase or
otherwise before the ultimate maturity dates specified in such
bonds, the surplus of the sinking or debt service fund over and
above current requirements to pay interest and principal shall be
invested in the classes of securities specified in ORS 294.035
and 294.040.
(2) The earnings of the sinking or debt service fund shall be
added to and become a part thereof for the purpose of paying
interest and principal of the bonds for which the fund was
created.
(3) { + A municipality may not use or divert + } the fund
{ - shall not be diverted or used - } for any other purpose
{ - ; but - } { + if principal, interest and premium, if any,
remain outstanding on the bonds. However, + } if a surplus
remains after all { - interest and - } principal { + ,
interest and premium, if any, + } of a given issue have been
paid, the
{ - surplus may be transferred to such other fund as the
governing body of the particular city may designate - } { +
governing body of the municipality may transfer the surplus to
another fund designated by the governing body of the
municipality + }. However, funds of municipal utilities
{ - shall - } { + may + } not be diverted or transferred to
other funds.
(4) Annual sinking or debt service fund installments to pay the
principal of municipal utility bonds issued after June 3, 1929,
to defray costs of construction, extension and betterments may be
deferred, if necessary, for a period not to exceed five years
from the issuing date or dates of such bonds.
(5) This section does not apply to or affect bonds issued
pursuant to applications to pay assessments for improvements in
installments under statutory or charter authority.
SECTION 13. ORS 287.012 is amended to read:
287.012. (1) Notwithstanding any other provision of law, when
bonds, obligations or other evidence of indebtedness issued by
any district, authority or public corporation after August 9,
1961, are sold { + , + } the proceeds may be used to pay
attorney { + , consultant, paying agent, trustee or other
professional + } fees and other expenses incurred { - in the
preparation, authorization, issuance and sale of, and in all
proceedings relating to, such - } { + to authorize, issue,
carry and repay the + } bonds, obligations or other evidence of
indebtedness.
(2) When bonds are sold, the proceeds received in excess of the
principal shall be placed with the principal in the improvement
fund for which the bonds were issued or in a debt service fund to
repay the bond.
SECTION 14. ORS 288.165, as amended by section 1, chapter 1,
Oregon Laws 2002, and section 4, chapter 1, Oregon Laws 2002
(fourth special session), is amended to read:
288.165. (1) Subject to any applicable limitations imposed by
the Constitution or laws of the State of Oregon or the charter,
ordinance or resolution of a governmental unit, a governmental
unit or the State of Oregon, acting through the State Treasurer
pursuant to section 3, chapter 1, Oregon Laws 2002, may borrow
money by entering into a credit agreement, or issuing notes,
warrants, short-term promissory notes, commercial paper or other
obligations:
(a) In anticipation of taxes, grants or other revenues for
purposes that include, but are not limited to, the payment of
current expenses;
(b) To provide interim financing for capital assets to be
undertaken by the governmental unit; or
(c) To refund outstanding obligations.
(2) To secure obligations authorized under this section, a
governmental unit or the State Treasurer may:
(a) Pledge its anticipated taxes, grants, other revenues, the
proceeds of any bonds or other permanent financing, or any
combination thereof;
(b) Segregate any pledged funds in separate accounts
{ - which - } { + that + } may be held by the governmental
unit, the State Treasurer or third parties;
(c) Enter into contracts with third parties to obtain standby
lines of credit or other financial commitments designated to
provide additional security for obligations authorized by this
section;
(d) Establish any reserves deemed necessary for the payment of
the obligations; and
(e) Adopt resolutions and enter into agreements containing
covenants and provisions for protection and security of the
owners of obligations, which shall constitute enforceable
contracts with such owners.
(3) Obligations authorized by this section { - which - }
{ + that + } are issued in anticipation of taxes or other
revenues { - , - } and any obligations authorized by this
section { - which - } { + that + } are issued to refund them
{ - , shall - } { + may + } not be issued prior to the
beginning of, and shall mature not later than, the end of the
fiscal period in which the taxes or other revenues are expected
to be received. Obligations issued by a governmental unit in
anticipation of taxes or other revenues { - shall - }
{ + may + } not be issued in an amount greater than 80 percent
of the amount budgeted to be received in the fiscal period in
which the obligations are issued.
(4) Obligations authorized by this section { - which - }
{ + that + } are issued in anticipation of a grant { - shall
mature not later than one year after the date the grant is
estimated to be received. Obligations issued - } { + or + } to
provide interim financing for capital assets shall mature not
later than { - one year from the estimated completion or
acquisition of the capital assets - } { + five years after the
obligations are issued and may be redeemed beginning not later
than one year after the grant is expected to be received or the
capital asset is projected to be completed + }.
(5) Notwithstanding subsections (3) and (4) of this section, a
school district, education service district, community college
district or community college service district may issue
obligations that are issued in anticipation of taxes, grants or
other revenues to mature not later than 13 months after the date
the obligations were issued.
(6) Refunding obligations issued pursuant to subsection (1)(c)
of this section shall mature { - as soon as the issuer deems
practicable and no later than 18 months - } { + not later than
five years + } after the refunding obligations are issued.
(7) The debt limitations imposed by law or the charter of any
governmental unit { - shall - } { + do + } not affect the
right of any governmental unit to issue obligations under
authority of this section, nor { - shall - } { + are + } any
of the obligations { + to + } be taken into consideration in
determining the percentage or extent to which the governmental
unit is indebted under the debt limitation. Obligations issued
to refund outstanding obligations { - shall not be - }
{ + are not + } considered to be within any of such debt
limitations.
(8) Except as provided in this section, obligations authorized
by this section may be in any form and contain any terms,
including provisions for redemption at the option of the owner
and provisions for the varying of interest rates in accordance
with any index, banker's loan rate or other standard.
(9) The governing body of an issuing governmental unit, in the
ordinance or resolution authorizing the issuance of obligations
under this section, may delegate to any elected or appointed
official or employee of the governmental unit the authority to
determine maturity dates, principal amounts, redemption
provisions, interest rates or the method for determining a
variable or adjustable interest rate, denominations and other
terms and conditions of such obligations { - which - }
{ + that + } are not appropriately determined at the time of
enactment or adoption of the authorizing ordinance or resolution,
which delegated authority shall be exercised subject to
applicable requirements of law and such limitations and criteria
as may be set forth in such ordinance or resolution. Except to
the extent of any such delegation, the governmental unit or the
State Treasurer shall determine:
(a) The maximum effective rate of interest the obligations
shall bear;
(b) The manner of sale;
(c) The discount, if any, the governmental unit may allow;
(d) The terms and conditions by which the obligations may be
redeemed prior to maturity;
(e) The maturities of the obligations;
(f) The form and denominations of the notes or other
obligations; and
(g) All other terms and conditions related to the sale of the
obligations.
(10) The governmental unit or the State Treasurer may contract
with third parties to serve as issuing, paying and authenticating
agents for any obligations authorized by this section.
(11) Obligations authorized by this section may be sold at
public or private sale upon such terms as the governmental unit
or the State Treasurer finds advantageous, with such disclosure
as the governmental unit or State Treasurer deems appropriate.
ORS 287.040 applies to obligations issued by governmental units
under this section.
(12) As used in this section, 'fiscal period' means:
(a) In the case of a governmental unit, a fiscal year.
(b) In the case of the State of Oregon, a biennium.
SECTION 15. ORS 288.815 is amended to read:
288.815. (1) A municipality, upon adoption of a resolution or
{ - an - } { + a nonemergency + } ordinance authorizing the
issuance of bonds in accordance with { - subsections (1) to (7)
of - } this section, may issue revenue bonds { - authorized
by - } { + under + } ORS 288.805 to 288.945.
{ + (2) A municipality may not sell revenue bonds under ORS
288.805 to 288.945 authorized by a nonemergency ordinance until
the period for referral of the ordinance has expired. If a
nonemergency ordinance authorizing bonds is referred, the
municipality may not sell the bonds unless the voters approve the
revenue bonds. + }
{ - (2) - } { + (3) + } { - The authorizing resolution or
ordinance must provide that no bonds may be sold, or in the case
of a private negotiated sale, no purchase agreement can be
executed, for - } { + A municipality may not sell revenue bonds
under ORS 288.805 to 288.945 authorized by a resolution until + }
at least 60 days following publication of the notice required in
subsection { - (6) - } { + (7) + } of this section.
{ - (3) - } { + (4) + } The { - authorizing - }
resolution { - or ordinance - } must provide that electors
residing within the municipality may file a petition with the
municipality asking { - to have - } { + that + } the question
of whether to issue { - such - } { + the + } bonds
{ + described in the resolution be + } referred to a vote.
{ - (4) - } { + (5) + } If the municipality receives
petitions containing valid signatures of that municipality's
electors totaling not less than five percent of the
municipality's electors, the question of issuing { - such - }
{ + the + } bonds { + described in the resolution + } shall be
placed on the ballot at the next legally available election date.
{ - (5) - } { + (6) + } If { - such - } a petition is
filed with the municipality within 60 days following publication
of the notice described in subsection { - (6) - } { + (7) + }
of this section, { - no bonds may be sold until - } { + bonds
may not be sold until the issuance of bonds described in + } the
resolution { - or ordinance - } is approved by a majority of
the electors of that jurisdiction voting on the { - resolution
or ordinance - } { + question + }.
{ - (6) - } { + (7) + } A notice describing the purposes
for which the bonds { + described in the resolution + } are sold
shall be published by the municipality in at least one newspaper
of general circulation within the municipality { - , - } and in
the same manner as are other public notices of that municipality.
{ - Such - } { + The + } notice shall contain:
(a) The date the { - authorizing - } resolution { - or
ordinance - } was adopted and the number thereof, if any;
(b) Expected source of revenue for repayment of the revenue
bonds;
(c) Estimated principal amount of the bonds to be sold;
(d) The procedures by which the question of issuing the revenue
bonds may be referred to a vote;
(e) The time in which the required signatures must be gathered;
(f) Any other information the municipality may wish to include;
and
(g) The fact that the { - authorizing - } resolution
{ - or ordinance - } is available for inspection at the
appropriate office of the municipality.
{ - (7) - } { + (8) + } Nothing in { - subsections (1) to
(7) of - } this section
{ - shall in any way prohibit - } { + prohibits + } the
municipality on its own initiative from referring the resolution
or { + nonemergency + } ordinance authorizing the sale of
revenue bonds to a vote of the electors of the municipality.
{ - (8) - } { + (9) + } When the public body issuing
revenue bonds is a municipality, the municipality shall issue
{ - such - } { + the + } bonds in accordance with the
provisions of ORS 288.515 to 288.560.
SECTION 16. ORS 288.845 is amended to read:
288.845. (1) { - Unless the bonds are to be sold to the
federal government or the State of Oregon or to any corporation,
department or agency of those governments, a municipality - }
When issuing revenue bonds at a private negotiated sale { + , a
municipality may obtain an + } { - must retain - } independent
expert { - advice which shall - } { + to advise the
municipality and to + } evaluate:
(a) The terms and conditions of the proposed sale;
(b) The pricing of the proposed sale; and
(c) Any other relevant aspects of the sale.
(2) The evaluation { - required - } { + authorized + } by
subsection (1) of this section { - shall - } { + must + } be
made either in writing or, if orally, at a public meeting of the
municipality authorizing a private negotiated sale.
SECTION 17. ORS 295.005 is amended to read:
295.005. As used in ORS 295.005 to 295.165, unless the context
requires otherwise:
(1) 'Certificate of participation' or 'certificate' means a
nonnegotiable document issued by a pool manager to a public
official.
(2) 'Custodian bank' or 'custodian' means the following
institutions designated by the depository bank for its own
account:
(a) The Federal Reserve Bank designated to serve this state, or
any branch of that bank;
(b) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank;
(c) Any insured institution or trust company, as those terms
are defined in ORS 706.008, that is authorized to accept deposits
or transact trust business in this state, provided, however, that
no insured institution or trust company may be a custodian bank
unless it certifies in writing to the State Treasurer that it
will furnish the reports required under ORS 714.075 to the
Director of the Department of Consumer and Business Services.
With the approval of the State Treasurer, a depository bank may
be a custodian bank with respect to its own securities; and
(d) The fiscal agency of the State of Oregon, duly appointed
and acting as such agency pursuant to ORS 288.010 to 288.110.
(3) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian bank to a pool manager describing the securities
deposited with it by a depository bank to secure public fund
deposits.
(4) 'Depository bank' or 'depository' means any insured
institution or trust company, as those terms are defined in ORS
706.008, that maintains a head office or a branch in this state
in the capacity of an insured institution or trust company.
However, an insured institution or trust company is not a
depository bank unless it has:
(a) Certified in writing to the State Treasurer that it will
furnish the reports required under ORS 714.075 to the Director of
the Department of Consumer and Business Services; and
(b) Entered into a written agreement with the State Treasurer
and a custodian that pledges the securities deposited by the
insured institution or trust company with the custodian as
collateral for deposits of public funds held by the insured
institution or trust company. The agreement shall be approved by
the board of directors or loan committee of the insured
institution or trust company and shall be continuously maintained
as a written record of the institution or company.
(5) 'Pool manager' means:
(a) The State Treasurer;
(b) Any insured institution or trust company, as those terms
are defined in ORS 706.008, that is authorized to accept deposits
or transact trust business in this state; but a depository bank
shall not be a pool manager with respect to securities that it
deposits with its custodians as collateral for the security of
public fund deposits and no insured institution or trust company
may be a pool manager unless it certifies in writing to the State
Treasurer that it will furnish the reports required under ORS
714.075 to the Director of the Department of Consumer and
Business Services;
(c) The Federal Reserve Bank designated to serve this state, or
any branch of that bank; or
(d) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank.
(6) 'Public funds' or 'funds' means the funds under the control
or in the custody of a public official by virtue of office, other
than those that, under law other than ORS 295.005 to 295.165,
are:
(a) Deposited for the purpose of { - meeting the payment of
principal or interest on bonds or like obligations - } { +
paying principal, interest or premium, if any, on bonds, like
obligations and related costs or securing an obligation related
to an agreement for exchange of interest rates entered into under
section 2 of this 2003 Act + }; or
(b) Invested in authorized investments. Funds invested under
ORS 293.701 to 293.820 are invested in authorized investments for
purposes of this paragraph when the funds are transferred by the
State Treasurer to a third party under the terms of a contract
for investment of funds that requires such a transfer.
(7) 'Security' or 'securities' means:
(a) Obligations of the United States, including those of its
agencies and instrumentalities;
(b) Obligations of the International Bank for Reconstruction
and Development;
(c) Bonds of any state of the United States (A) that are rated
in one of the four highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
state and municipal bonds or, (B) having once been so rated are
ruled to be eligible securities for the purposes of ORS 295.005
to 295.165, notwithstanding the loss of such rating;
(d) Bonds of any county, city, school district, port district
or other public body in the United States payable from ad valorem
taxes levied generally on substantially all property within the
issuing body and that meet the rating requirement or are ruled to
be eligible securities as provided in paragraph (c) of this
subsection;
(e) Bonds of any county, city, school district, port district
or other public body issued pursuant to the Constitution or
statutes of the State of Oregon or the charter or ordinances of
any county or city within the State of Oregon, if the issuing
body has not been in default with respect to the payment of
principal or interest on any of its bonds within the preceding 10
years or during the period of its existence if that is less than
10 years;
(f) Bond anticipation notes issued, sold or assumed by an
authority under ORS 441.560;
(g) One-family to four-family housing mortgage loan notes
related to property situated in the State of Oregon, which are
owned by a depository bank, no payment on which is more than 90
days past due, and which are eligible collateral for loans from
the Federal Reserve Bank of San Francisco under section 10(b) of
the Federal Reserve Act and regulations thereunder;
(h) Bonds, notes, letters of credit or other securities or
evidence of indebtedness constituting the direct and general
obligation of a federal home loan bank or Federal Reserve bank;
(i) Debt obligations of domestic corporations that are rated in
one of the three highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
corporate debt obligations;
(j) Collateralized mortgage obligations and real estate
mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization
that has been engaged regularly and continuously for a period of
not less than 10 years in rating corporate debt obligations; and
(k) One-family to four-family housing mortgages that have been
secured by means of a guarantee as to full repayment of principal
and interest by an agency of the United States Government,
including the Government National Mortgage Association, the
Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation.
(8) 'Public official' means each officer or employee of this
state or any agency, political subdivision or public or municipal
corporation thereof who by law is made the custodian of or has
control of any public funds.
(9) 'Value' means the current market value of securities.
SECTION 18. ORS 305.410 is amended to read:
305.410. (1) Subject only to the provisions of ORS 305.445
relating to judicial review by the Supreme Court and to
subsection (2) of this section, the tax court shall be the sole,
exclusive and final judicial authority for the hearing and
determination of all questions of law and fact arising under the
tax laws of this state. For the purposes of this section, and
except to the extent that they preclude the imposition of other
taxes, the following are not tax laws of this state:
(a) ORS 577.110 to 577.605 relating to beef council
contributions.
(b) ORS 576.051 to 576.584 relating to commodity commission
assessments.
(c) ORS chapter 477 relating to fire protection assessments.
(d) ORS chapters 731, 732, 733, 734, 737, 742, 743, 744, 746,
748 and 750 relating to insurance company fees and taxes.
(e) ORS chapter 473 relating to liquor taxes.
(f) ORS chapter 583 relating to milk marketing, production or
distribution fees.
(g) ORS chapter 825 relating to motor carrier taxes.
(h) ORS chapter 319 relating to motor vehicle and aircraft fuel
taxes.
(i) ORS title 59 relating to motor vehicle and motor vehicle
operators' license fees and ORS title 39 relating to boat
licenses.
(j) ORS chapter 578 relating to wheat commission assessments.
(k) ORS chapter 462 relating to racing taxes.
(L) ORS chapter 657 relating to unemployment insurance taxes.
(m) ORS chapter 656 relating to workers' compensation
contributions, assessments or fees.
(n) ORS chapter 579 relating to potato commission assessments.
(o) ORS 311.420, 311.425, 311.455, 311.650, 311.655 and ORS
chapter 312 relating to foreclosure of real and personal property
tax liens.
(2) The tax court and the circuit courts shall have concurrent
jurisdiction to try actions or suits to determine:
(a) The priority of property tax liens in relation to other
liens.
(b) The validity of any deed, conveyance, transfer or
assignment of real or personal property under ORS 95.060 and
95.070 (1983 Replacement Part) or 95.200 to 95.310 where the
Department of Revenue has or claims a lien or other interest in
the property.
{ + (3) Subject only to the provisions of ORS 305.445
relating to judicial review by the Supreme Court, the tax court
shall be the sole, exclusive and final judicial authority for the
hearing and determination of all questions of law and fact
concerning the authorized uses of the proceeds of bonded
indebtedness described in section 11 (11)(d), Article XI of the
Oregon Constitution. + }
{ - (3) - } { + (4) + } Except as permitted under section
2, amended Article VII, Oregon Constitution, this section and ORS
305.445, no person shall contest, in any action, suit or
proceeding in the circuit court or any other court, any matter
within the jurisdiction of the tax court.
SECTION 19. ORS 305.580 is amended to read:
305.580. (1) The provisions of ORS 305.583, 305.585, 305.587
and 305.589 shall provide the exclusive remedy for determination
of questions concerning { + :
(a) + } The effect of the limits of section 11b, Article XI of
the Oregon Constitution on taxes, fees, charges and assessments
of units of government.
{ + (b) The authorized uses of the proceeds of bonded
indebtedness described in section 11 (11)(d), Article XI of the
Oregon Constitution. + }
(2) A petition filed with the regular division of the Oregon
Tax Court pursuant to ORS 305.583, 305.585, 305.587 or 305.589
shall have priority over all other cases pending before the
regular division and shall be heard and decided as soon after
coming to issue as is reasonably possible.
SECTION 20. ORS 305.583 is amended to read:
305.583. (1) An interested taxpayer may petition the regular
division of the Oregon Tax Court to determine { - the effect of
the limits of section 11 or 11b, Article XI of the Oregon
Constitution on any tax, fee, charge or assessment imposed by a
unit of government - } { + a question described in ORS
305.580 + }. For purposes of this section { + and a question
described in ORS 305.580 (1)(a) + }, ' interested taxpayer' means
a person { - who - } { + that + } is subject to the tax, fee,
charge or assessment in question. { + For purposes of this
section and a question described in ORS 305.580 (1)(b), '
interested taxpayer' means a person that is subject to a tax,
fee, charge or assessment that is pledged to secure or available
for payment of bonded indebtedness described in section 11
(11)(d), Article XI of the Oregon Constitution. + }
(2) The petition shall be filed and perfected in the following
manner only:
(a) The petitioner shall file an original and two certified
copies of a petition with the clerk of the tax court at its
principal office in Salem, Oregon. The petition shall name
{ + as respondent + } the government unit that imposes the tax,
fee, charge or assessment, { + that issues the bonded
indebtedness + } or, in the case of an urban renewal agency, that
receives the taxes { - , as respondent - } . The filing in the
tax court shall constitute the perfection of the petition. The
clerk of the tax court shall serve the government unit by mailing
a certified copy of the petition to the recording officer or
chief administrative officer of the local government unit or to
the Attorney General if the tax, fee, charge or assessment in
question is imposed by the State of Oregon. The clerk also shall
serve a copy of any petition naming a local government unit as
respondent upon the Oregon Department of Justice.
(b) The petition shall state the facts and grounds upon which
the petitioner contends that the tax, fee, charge or assessment
is affected by section 11 or 11b, Article XI of the Oregon
Constitution { + , or that a use of the proceeds of bonded
indebtedness is not authorized + }. The case shall proceed
thereafter in the manner provided for appeals concerning ad
valorem property tax assessments. ORS 305.405 to 305.494 shall
apply to such actions.
(3)(a) Except as provided in subsections (4) to (7) of this
section, in the case of { + a question regarding the effect of
the limits of section 11b, Article XI of the Oregon Constitution,
on + } any tax, fee, charge or assessment that is imposed under a
resolution or ordinance approved by the governing body of a local
government unit, the petition shall be filed within 60 days after
the action of the governing body approving the ordinance or
resolution, adopting a new ordinance or resolution or changing an
existing ordinance or resolution under which the tax, fee, charge
or assessment is imposed, if the resolution or ordinance includes
a classification of the tax, fee, charge or assessment as subject
to or not subject to section 11 or 11b, Article XI of the Oregon
Constitution. If the local government unit has not classified the
tax, fee, charge or assessment, the petition shall be filed
within 60 days after the later of:
(A) The last date, but no later than November 15, that the tax
statements were mailed for the tax year in which the tax, fee,
charge or assessment was imposed; or
(B) The date of imposition of the tax, fee, charge or
assessment on the petitioner.
(b) If the local government unit adopts an ordinance or
resolution classifying all or any of the taxes, fees, charges or
assessments it imposes as subject to or not subject to section 11
or 11b, Article XI of the Oregon Constitution, as described in
ORS 310.145, the petition shall be filed within 60 days after the
governing body adopts the ordinance or resolution.
(4) In the case of { + a question concerning + } any tax, fee,
charge or assessment that is characterized by the local
government unit as an assessment for local improvements, the
petition shall be filed within 60 days after the local government
unit gives notice of its intention to characterize the charge as
an assessment for local improvements. Notice may be given to
affected property owners by the local government unit either when
a local improvement district is formed, in a notice of intent to
assess given by the local government unit or by other individual
notice prior to assessment. Notice shall be given no later than
the date the assessment is imposed. Notice given as provided
under this subsection is in lieu of the notice required under
subsection (8) of this section.
(5) In the case of { + a question concerning + } any taxes
levied to pay principal and interest on bonded indebtedness
approved by the governing body of a local government unit, the
petition shall be filed within 60 days after the date the
issuance of the bonded indebtedness was approved by the governing
body of the local government unit if the resolution or ordinance
of the governing body authorizing issuance of the bonded
indebtedness includes a classification of the bonded indebtedness
as subject to or not subject to the limits of section 11 or 11b,
Article XI of the Oregon Constitution. If the local government
unit has not classified the bonded indebtedness, the petition
shall be filed within 60 days after the date specified in
subsection (3)(a) of this section.
(6) In the case of { + a question concerning + } any taxes
levied to pay principal and interest on bonded indebtedness not
subject to the limits of section 11 or 11b, Article XI of the
Oregon Constitution, that was approved by the electors of the
local government unit at an election held on or after September
29, 1991, the petition shall be filed within 60 days after the
date of the election at which the question of issuing the bonded
indebtedness was approved by the electors of the local government
unit.
(7) In the case of a question concerning the effect of section
11 or 11b, Article XI of the Oregon Constitution { + , + } on any
tax, fee, charge or assessment imposed by the state, the petition
shall be filed within 60 days after the first imposition of the
tax, fee, charge or assessment by a state agency. For purposes of
this subsection, a tax, fee, charge or assessment shall be
considered imposed when it is due as provided by statute or when
the state agency notifies a person that the tax, fee, charge or
assessment is due.
(8) A local government unit { + :
(a) + } Shall give notice of its adoption of an ordinance or
resolution classifying any of its taxes, fees, charges or
assessments as not being subject to the limits of section 11 or
11b, Article XI of the Oregon Constitution, by publishing, within
15 days after adoption of the ordinance or resolution, an
advertisement in a newspaper of general circulation in the county
in which the local government unit is located or, if there is no
newspaper of general circulation, in a newspaper of general
circulation in a contiguous county.
{ + (b) May give notice of its adoption of an ordinance or
resolution specifying the authorized uses of the proceeds of
bonded indebtedness by publishing, within 15 days after adoption
of the ordinance or resolution, an advertisement in a newspaper
of general circulation in the county in which the local
government unit is located or, if there is no newspaper of
general circulation, in a newspaper of general circulation in a
contiguous county.
(9) + } { - The - } { + A + } notice { + described in
subsection (8) of this section + } shall:
(a) Appear in the general news section of the newspaper, not in
the classified advertisements;
(b) Measure at least three inches square;
(c) Be printed in a type size at least equal to 8-point type;
and
(d) State that the local government unit has adopted a
resolution or ordinance { + :
(A) + } Classifying one or more of its taxes, fees, charges or
assessments as not being subject to the limits of section 11 or
11b, Article XI of the Oregon Constitution, that the reader may
contact a designated individual within the local government unit
to obtain a copy of the ordinance or resolution and that judicial
review of the classification of the taxes, fees, charges or
assessments may be sought within 60 days of the date of the
resolution or ordinance { + ; or
(B) Specifying the authorized uses of the proceeds of bonded
indebtedness, that the reader may contact a designated individual
within the local government unit to obtain a copy of the
ordinance or resolution and that judicial review of the
specification of authorized uses may be sought within 60 days of
the date of the resolution or ordinance + }.
{ - (9) - } { + (10) + } An ordinance or resolution that
results in a mere change in the amount of a tax, fee, charge or
assessment and does not result in a change in the characteristics
or attributes of the tax, fee, charge or assessment, or contain a
change in purpose to which the revenue is applied { + , may + }
{ - shall - } not be considered a change that may result in a
proceeding commenced under subsection (3) of this section.
{ + (11) In the case of a question concerning the authorized
uses of the proceeds of bonded indebtedness, if the governing
body has not published the notice described in subsection (8)(b)
of this section, the petition shall be filed within 180 days
after the questioned use of the proceeds is made. + }
SECTION 21. ORS 305.587 is amended to read:
305.587. (1) If { + , + } in a proceeding commenced under ORS
305.583, the regular division of the Oregon Tax Court finds that
a challenged tax, fee, charge or assessment is subject to the
limits of section 11 or 11b, Article XI of the Oregon
Constitution, the tax court may:
(a) Order the government unit to make refunds to petitioners of
any part of the challenged tax, fee, charge or assessment imposed
on or after the date that is 90 days before the date the petition
was filed and that was collected in excess of the limits of
section 11 or 11b, Article XI of the Oregon Constitution. The tax
court may not order refunds if the government unit previously had
obtained a judgment of the tax court or the Oregon Supreme Court
under ORS 305.589, that the tax, fee, charge or assessment in
question was not subject to the limits of section 11 or 11b,
Article XI of the Oregon Constitution.
(b) Order such other relief as it considers appropriate,
including cancellation of taxes imposed but not collected, but
such relief shall have prospective effect only. In cases
involving local government units, a copy of the tax court's order
shall be served upon the assessor of the county or counties in
which the local government unit is located at the same time the
order is served upon the parties.
(2) If the tax court orders a unit of government to make
refunds of any tax, fee, charge or assessment that was imposed
and collected in excess of the limits of section 11 or 11b,
Article XI of the Oregon Constitution, the government unit shall
do so out of the resources of the government unit. No refund so
ordered shall be paid from the unsegregated tax collections
account. The assessor shall not be required to recompute the
amount of tax due from any property or property owner with
respect to the tax, fee, charge or assessment that is the subject
of the order for any tax year for which a tax statement has been
delivered under ORS 311.250.
(3) If, in a proceeding commenced under ORS 305.585, the tax
court finds that a tax, fee, charge or assessment is not subject
to the limits of section 11 or 11b, Article XI of the Oregon
Constitution, the tax court may order such relief as it considers
appropriate, but such relief shall have prospective effect only.
In cases involving local government units, a copy of the tax
court's order shall be served upon the assessor of the county or
counties in which the local government unit is located at the
same time the order is served upon the parties. The assessor
shall not be required to recompute the amount of tax due from any
property or property owner with respect to the tax, fee, charge
or assessment that is the subject of the order for any tax year
for which a tax statement has been delivered under ORS 311.250.
(4) For purposes of this section, taxes, fees, charges or
assessments are deemed imposed when the statement or bill for the
taxes, fees, charges or assessments is mailed.
{ + (5) In the case of a question concerning the authorized
uses of the proceeds of bonded indebtedness, the tax court shall
construe the provisions of the measure authorizing the bonded
indebtedness and the use of the proceeds liberally to allow the
government unit to provide the facilities or services approved by
the voters.
(6) If, in a proceeding commenced under ORS 305.583, the
regular division of the tax court finds that a use of the
proceeds of bonded indebtedness is not authorized by the
applicable law, the tax court may prohibit the expenditure or
proceed in accordance with ORS 305.586. + }
SECTION 22. ORS 305.589 is amended to read:
305.589. (1) A local government unit or an association of local
government units acting for the common benefit of and on behalf
of consenting members may petition the regular division of the
Oregon Tax Court for a judicial declaration of the court
concerning { - the effect of section 11b, Article XI of the
Oregon Constitution on any tax, fee, charge or assessment imposed
or to be imposed by, or bonded indebtedness incurred or to be
incurred by, that local government unit or by any of the
consenting members of the association of local government
units - } { + a question described in ORS 305.580 + }.
(2) Notice of the commencement of a proceeding under this
section shall be given by the petitioner or petitioners by
publication of notice directed to all electors, taxpayers and
other interested persons, without naming such electors, taxpayers
or other interested persons individually. The notice shall be
published at least once a week for three successive weeks in a
newspaper of general circulation within the boundaries of the
local government unit and each of the consenting members of the
association of local government units, if any, or if no such
newspaper is published therein, then in a contiguous county.
(3) The petitioner or petitioners may elect to give further
notice to affected electors, taxpayers and other interested
persons, or the court may order such further notice as the court
considers practicable.
(4) The action authorized by this section shall be a special
proceeding in the nature of an ex parte proceeding in the absence
of the intervention of a respondent in opposition to the
petition.
(5) Jurisdiction of the local government unit and of consenting
members of an association of local government units shall be
obtained by filing of the petition. Jurisdiction over the
electors, taxpayers and other interested persons shall be
complete 10 days after the date of completing publication of the
notice provided for in subsection (2) of this section, or giving
of any further notice as provided for in subsection (3) of this
section. Jurisdiction of any other party shall be obtained by
appearance of any interested person who seeks and is granted
leave to intervene in the proceeding.
(6) { + (a) + } Any elector, taxpayer or interested person or
local government unit that may be affected by the tax, fee,
charge or assessment that is the subject of the petition may
intervene as a petitioner or respondent by filing the appropriate
appearance.
{ + (b) Any elector, taxpayer or interested person or local
government unit that may be affected by the use of the proceeds
of the bonded indebtedness or a person that is subject to a tax,
fee, charge or assessment that is pledged to secure or available
for payment of the bonded indebtedness that is the subject of the
petition may intervene as a petitioner or respondent by filing
the appropriate appearance. + }
(7) Any party to a proceeding commenced under this section,
including a consenting member of an association of local
government units that was a party to the proceeding, may appeal
from the final judgment rendered by the tax court to the Oregon
Supreme Court in the manner provided for appeals from other
decisions of the tax court under ORS 305.445.
(8) { + (a) + } If, in a proceeding commenced under this
section, the court finds that a tax, fee, charge or assessment is
subject to the limits of section 11b, Article XI of the Oregon
Constitution, the court may order such relief as it considers
appropriate, but such relief shall be prospective only.
{ + (b) If, in a proceeding commenced under this section, the
court finds that a use of the proceeds of bonded indebtedness is
not authorized, the tax court may prohibit the expenditure or
proceed in accordance with ORS 305.586. + }
(9) Costs of the proceeding may be allowed and apportioned
between the parties in the discretion of the court.
(10) As used in this section:
(a) 'Local government unit' means any unit of local government,
including a city, county, incorporated town or village, school
district, any other special district, or any other municipal or
quasi-municipal corporation, intergovernmental authority created
pursuant to ORS 190.010, a district as defined in ORS 198.010,
198.180, 198.210 and 198.330 or an urban renewal agency
established under ORS 457.035.
(b) 'Consenting member' means a member of an association of
local government units who affirmatively consents, through filing
of a consenting certificate with the tax court, to the
commencement of a proceeding under this section.
(c) 'Association of local government units' means an
association, or any other lawful organization, composed of member
local government units organized for the mutual benefit of such
local government units.
SECTION 23. ORS 310.140 is amended to read:
310.140. The Legislative Assembly finds that section 11b,
Article XI of the Oregon Constitution, was drafted by citizens
and placed before the voters of the State of Oregon by initiative
petition. Section 11b, Article XI of the Oregon Constitution,
uses terms that do not have established legal meanings and
require definition by the Legislative Assembly. Section 11b,
Article XI of the Oregon Constitution, was amended by section 11
(11), Article XI of the Oregon Constitution. This section is
intended to interpret the terms of section 11b, Article XI of the
Oregon Constitution, as originally adopted and as amended by
section 11 (11), Article XI of the Oregon Constitution,
consistent with the intent of the people in adopting these
provisions, so that the provisions of section 11b, Article XI of
the Oregon Constitution, may be given effect uniformly throughout
the State of Oregon, with minimal confusion and misunderstanding
by citizens and affected units of government. As used in the
revenue and tax laws of this state, and for purposes of section
11b, Article XI of the Oregon Constitution:
(1) 'Tax on property' means any tax, fee, charge or assessment
imposed by any government unit upon property or upon a property
owner as a direct consequence of ownership of that property, but
does not include incurred charges or assessments for local
improvements. As used in this subsection, 'property' means real
or tangible personal property, and intangible property that is
part of a unit of real or tangible personal property to the
extent that such intangible property is subject to a tax on
property.
(2) 'Direct consequence of ownership' means that the obligation
of the owner of property to pay a tax arises solely because that
person is the owner of the property, and the obligation to pay
the tax arises as an immediate and necessary result of that
ownership without respect to any other intervening transaction,
condition or event.
(3)(a) 'Incurred charge' means a charge imposed by a unit of
government on property or upon a property owner that does not
exceed the actual cost of providing goods or services and that
can be controlled or avoided by the property owner because:
(A) The charge is based on the quantity of the goods or
services used, and the owner has direct control over the
quantity;
(B) The goods or services are provided only on the specific
request of the property owner; or
(C) The goods or services are provided by the government unit
only after the individual property owner has failed to meet
routine obligations of ownership of the affected property, and
such action is deemed necessary by an appropriate government unit
to enforce regulations pertaining to health or safety.
(b) For purposes of this subsection, an owner of property may
control or avoid an incurred charge if the owner is capable of
taking action to affect the amount of a charge that is or will be
imposed or to avoid imposition of a charge even if the owner must
incur expense in so doing.
(c) For purposes of paragraph (a)(A) of this subsection, an
owner of property has direct control over the quantity of goods
or services if the owner of property has the ability, whether or
not that ability is exercised, to determine the quantity of goods
or services provided or to be provided.
(4) 'Specific request' means:
(a) An affirmative act by a property owner to seek or obtain
delivery of goods or services;
(b) An affirmative act by a property owner, the legal
consequence of which is to cause the delivery of goods or
services to the property owner; or
(c) Failure of an owner of property to change a request for
goods or services made by a prior owner of the property.
(5) 'Routine obligations of ownership' means a standard of
operation, maintenance, use or care of property established by
law, or if established by custom or common law, a standard that
is reasonable for the type of property affected.
(6) 'Assessment for local improvement' means any tax, fee,
charge or assessment that does not exceed the actual cost
incurred by a unit of government for design, construction and
financing of a local improvement.
(7)(a) 'Local improvement' means a capital construction
project, or part thereof, undertaken by a governmental unit,
pursuant to ORS 223.387 to 223.399, or pursuant to a local
ordinance or resolution prescribing the procedure to be followed
in making local assessments for benefits from a local improvement
upon the lots that have been benefited by all or a part of the
improvement:
(A) That provides a special benefit only to specific properties
or rectifies a problem caused by specific properties;
(B) The costs of which are assessed against those properties in
a single assessment upon the completion of the project; and
(C) For which the property owner may elect to make payment of
the assessment plus appropriate interest over a period of at
least 10 years.
(b) For purposes of paragraph (a) of this subsection, the
status of a capital construction project as a local improvement
is not affected by the accrual of a general benefit to property
other than the property receiving the special benefit.
(8) 'Single assessment' means the complete assessment process,
including preassessment, assessment or reassessment, for any
local improvement authorized by ORS 223.387 to 223.399, or a
local ordinance or resolution that provides the procedure to be
followed in making local assessments for benefits from a local
improvement upon lots that have been benefited by all or part of
the improvement.
(9) 'Special benefit only to specific properties' shall have
the same meaning as 'special and peculiar benefit' as that term
is used in ORS 223.389.
(10) 'Actual cost' means all direct or indirect costs incurred
by a government unit in order to deliver goods or services or to
undertake a capital construction project. The ' actual cost' of
providing goods or services to a property or property owner
includes the average cost or an allocated portion of the total
amount of the actual cost of making a good or service available
to the property or property owner, whether stated as a minimum,
fixed or variable amount. 'Actual cost' includes, but is not
limited to, the costs of labor, materials, supplies, equipment
rental, property acquisition, permits, engineering, financing,
reasonable program delinquencies, return on investment, required
fees, insurance, administration, accounting, depreciation,
amortization, operation, maintenance, repair or replacement and
debt service, including debt service payments or payments into
reserve accounts for debt service and payment of amounts
necessary to meet debt service coverage requirements.
(11) 'Bonded indebtedness' means any formally executed written
agreement representing a promise by a unit of government to pay
to another a specified sum of money, at a specified date or dates
at least one year in the future.
(12)(a) 'Exempt bonded indebtedness' means:
(A) Bonded indebtedness authorized by a specific provision of
the Oregon Constitution;
(B) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements that was issued as a general
obligation of the issuing governmental unit on or before November
6, 1990;
(C) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements that was issued as a general
obligation of the issuing governmental unit after November 6,
1990, with the approval of the electors of the issuing
governmental unit; or
(D) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements, if the issuance of the
bonds is approved by voters on or after December 5, 1996, in an
election that is in compliance with the voter participation
requirements of section 11 (8), Article XI of the Oregon
Constitution.
(b) 'Exempt bonded indebtedness' includes bonded indebtedness
issued to refund or refinance any bonded indebtedness described
in paragraph (a) of this subsection.
(13) 'Capital construction':
(a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors prior to December 5, 1996, that were spent or
contractually obligated to be spent prior to June 20, 1997, means
the construction, modification, replacement, repair, remodeling
or renovation of a structure, or addition to a structure, that is
expected to have a useful life of more than one year, and
includes, but is not limited to:
(A) Acquisition of land, or a legal interest in land, in
conjunction with the capital construction of a structure.
(B) Acquisition, installation of machinery or equipment,
furnishings or materials that will become an integral part of a
structure.
(C) Activities related to the capital construction, { - such
as - } { + including + } planning, design, { - acquisition
of - } { + authorizing, issuing, carrying or repaying + }
interim or permanent financing, research, land use and
environmental impact studies, acquisition of permits or licenses
or other services connected with the construction.
(D) Acquisition of existing structures, or legal interests in
structures, in conjunction with the capital construction.
(b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital construction':
(A) Includes public safety and law enforcement vehicles with a
projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be
reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the
structure; or
(iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
(14) 'Structure' means any temporary or permanent building or
improvement to real property of any kind that is constructed on
or attached to real property, whether above, on or beneath the
surface.
(15) 'Capital improvements':
(a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors before December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, means
land, structures, facilities, as that term is defined in ORS
288.805, machinery, equipment or furnishings having a useful life
longer than one year.
(b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital improvements':
(A) Includes public safety and law enforcement vehicles with a
projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be
reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the
structure; or
(iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
(16) 'Maintenance and repairs, the need for which could be
reasonably anticipated':
(a) Means activities, the type of which may be deducted as an
expense under the provisions of the federal Internal Revenue
Code, as amended and in effect on December 31, 2000, and that
keep the property in ordinarily efficient operating condition,
and that do not add materially to the value of the property nor
appreciably prolong the life of the property;
(b) Does not include maintenance and repair of property that is
required by damage, destruction or defect in design, or that was
otherwise not reasonably expected at the time the property was
constructed or acquired, or the addition of material that is in
the nature of the replacement of property and that arrests the
deterioration or appreciably prolongs the useful life of the
property; and
(c) Does not include street and highway construction, overlay
and reconstruction.
(17) 'Supplies and equipment intrinsic to a structure ' means
the supplies and equipment that are necessary to permit a
structure to perform the functions for which the structure was
constructed, or that will, upon installation, constitute fixtures
considered to be part of the real property that is comprised, in
whole or part, of the structure and land supporting the
structure.
(18) 'Projected useful life' means the useful life, as
reasonably estimated by the unit of government undertaking the
capital construction or capital improvement project, beginning
with the date the property was acquired, constructed or
reconstructed and based on the property's condition at the time
the property was acquired, constructed or reconstructed.
SECTION 24. ORS 328.205 is amended to read:
328.205. (1) Common and union high school districts may
contract a bonded indebtedness for any one or more of the
following purposes for the district:
(a) To acquire, construct, reconstruct, improve, repair, equip
or furnish a school building or school buildings or additions
thereto;
(b) To fund or refund the removal or containment of asbestos
substances in school buildings and for repairs made necessary by
such removal or containment;
(c) To acquire or to improve all property, real and personal,
{ - appurtenant thereto or connected therewith, - } { + to be
used for district purposes, + } including school buses;
(d) To fund or refund outstanding indebtedness; and
(e) To provide for the payment of the debt.
(2) However, when a common or union high school district is
found under ORS 327.103 not to be a standard school or when a
school district is operating a conditionally standard school
under ORS 327.103 (3), the school district may contract a bonded
indebtedness only for the purposes enumerated in subsection (1)
of this section that are approved by the Superintendent of Public
Instruction pursuant to rules of the State Board of Education.
(3) The school district may use the proceeds received from the
sale of school district bonds to pay for any costs incurred by
{ - such - } { + the + } school district in { - issuing and
selling such - } { + authorizing, issuing, carrying or repaying
the + } bonds { + , + } including, but not limited to,
attorney { + , consultant, paying agent, trustee or other
professional + } fees and the cost of publishing notices of bond
elections, printing such bonds and advertising such bonds for
sale.
SECTION 25. ORS 294.326 is amended to read:
294.326. (1) Except as provided in subsections (3) to (11) of
this section, it is unlawful for any municipal corporation to
expend money or to certify to the assessor an ad valorem tax rate
or estimated amount of ad valorem taxes to be imposed in any year
unless the municipal corporation has complied with ORS 294.305 to
294.565.
(2) To the extent that any of subsections (3) to (11) of this
section apply in a given case, the municipal corporation need not
comply with ORS 294.305 to 294.565.
(3) Subsection (1) of this section shall not apply to the
expenditure in the year of receipt of grants, gifts, bequests or
devises transferred to a municipal corporation in trust for
specific purposes or to other special purpose trust funds at the
disposal of municipal corporations. However, subsection (1) of
this section shall apply to the expenditure of grants, gifts,
bequests or devises transferred to a municipal corporation for
undesignated general purposes or to the expenditure of grants,
gifts, bequests or devises transferred to a municipal corporation
in trust for specific purposes which were received in a prior
year. Expenditure of grants, gifts, bequests and devises exempt
from subsection (1) of this section by this subsection shall be
lawful only after enactment by the governing body of the
municipal corporation of appropriation ordinances or resolutions
authorizing the expenditure.
(4) Subsection (1) of this section shall not apply whenever the
governing body of a municipal corporation has declared the
existence of an unforeseen occurrence or condition which could
not have been foreseen at the time of the preparation of the
budget for the current year or current budget period or could not
have foreseen a pressing necessity for the expenditure or has
received a request for services or facilities, the cost of which
shall be supplied by a private individual, corporation or company
or by another governmental unit necessitating a greater
expenditure of public money for any specific purpose or purposes
than the amount budgeted therefor in order to provide the
services for which it was responsible. Such governing body may
make excess expenditures for such specific purpose or purposes
beyond the amount budgeted and appropriated therefor to the
extent that maintenance, repair or self-insurance reserves
authorized by ORS 294.366 or nontax funds are available or may be
made available. Such expenditures shall be lawful only after the
enactment of appropriate appropriation ordinances or resolutions
authorizing the expenditures. The ordinance or resolution shall
state the need for the expenditure, the purpose for the
expenditure and the amount appropriated.
(5) Subsection (1) of this section shall not apply to the
expenditure during the current year or current budget period of
the proceeds of the sale of the following bonds or other
obligations, or to the expenditure during the current year or
current budget period of other funds to pay debt service on the
following bonds or other obligations:
(a) Bonds that are issued under the Uniform Revenue Bond Act,
ORS 288.805 to 288.945, for which the { - 60-day - }
{ + referral + } period described in ORS 288.815 { - (2) - }
ended after the preparation of the budget of the current year or
current budget period;
(b) Bonds or other obligations that were approved by the
electors during the current year or current budget period; or
(c) Bonds or other obligations issued during the current year
or current budget period to refund previously issued bonds or
obligations.
(6) Notwithstanding subsection (5) of this section, subsection
(1) of this section shall not apply to:
(a) Expenditures of funds received from the sale of conduit
revenue bonds issued for private business or nonprofit
corporations by cities, counties, county service districts, port
districts, special districts, the Port of Portland or the State
of Oregon or to pay debt service on such bonds;
(b) Expenditures of funds that have been irrevocably placed in
escrow for the purpose of defeasing and paying bonds; or
(c) Expenditures of assessments or other revenues to redeem
bonds or other obligations that are payable from such assessments
or other revenues, when such assessments or other revenues are
received as a result of prepayments or other unforeseen
circumstances.
(7) Subsection (1) of this section shall not apply to
expenditures of funds received from assessments against benefited
property for local improvements as defined in ORS 223.001 to the
extent that the cost of such improvements is to be paid by owners
of benefited property.
(8) Subsection (1) of this section shall not apply to the
expenditure of funds accumulated to pay deferred employee
compensation.
(9) Subsection (1) of this section shall not apply to refunds
or the interest on them granted by counties under ORS 311.806.
(10) Subsection (1) of this section shall not apply to refunds,
received by a municipal corporation when purchased items are
returned after an expenditure has been made. Expenditure of
refunded amounts to which this subsection applies shall be lawful
only after the governing body of the municipal corporation has
enacted, after public hearing, appropriate appropriation
ordinances or resolutions authorizing such expenditure.
(11) Subsection (1) of this section shall not apply to a newly
formed municipal corporation during the fiscal year in which it
was formed. If a new municipal corporation is formed between
March 1 and June 30, subsection (1) of this section shall not
apply to the municipal corporation during the fiscal year
immediately following the fiscal year in which it was formed.
SECTION 26. ORS 294.483 is amended to read:
294.483. (1) A municipal corporation that has outstanding
limited general obligation bonds that were issued pursuant to ORS
287.049 shall budget and appropriate, subject to any applicable
covenants or agreements which limit payment of certain
obligations to particular sources of funds, amounts sufficient to
pay, in each succeeding fiscal year or budget period, debt
service on such bonds. However, this section does not require the
municipal corporation to adopt a supplemental budget to pay the
principal and interest coming due on limited tax bonds, as
defined in ORS 288.150, in the fiscal year or budget period in
which such bonds are authorized and issued.
(2) A municipal corporation shall not be required to adopt a
supplemental budget to:
(a) Expend during the current year or current budget period
proceeds of the sale of the following bonds or other obligations:
(A) Bonds that are issued under the Uniform Revenue Bond Act,
ORS 288.805 to 288.945, for which the { - 60-day - }
{ + referral + } period described in ORS 288.815 { - (2) - }
ended after the preparation of the budget for the current year or
current budget period.
(B) Bonds or other obligations that were approved by the
electors during the current year or current budget period.
(C) Bonds or other obligations issued during the current year
or current budget period to refund previously issued bonds or
obligations.
(b) Expend during the current year or current budget period
other funds to pay the principal and interest coming due on bonds
or other obligations listed in paragraph (a) of this subsection.
(c) Expend assessments or other revenues to redeem bonds or
other obligations that are payable from such assessments or other
revenues, when such assessments or other revenues are received as
a result of prepayments or other unforeseen circumstances.
SECTION 27. ORS 352.805 is amended to read:
352.805. (1) Revenue bonds shall be payable solely from that
portion of education facility revenues which the municipality
pledges therefor in the resolution authorizing issuance of
revenue bonds.
(2) A municipality may authorize the issuance of revenue bonds
by resolution or { + nonemergency + } ordinance under the
procedure described in ORS 288.815.
(3) The resolution may provide for the establishment of one or
more special funds and may place such funds under the control of
one or more trustees. The resolution may obligate the
municipality to deposit and expend the proceeds of the revenue
bonds only into and from such fund or funds, and to set aside and
pay into such fund or funds specified education facility
revenues.
(4) Any pledge of education facility revenues made by a
municipality shall be valid and binding, without physical
delivery or additional action, from the time that the pledge is
made against any parties having subsequent claims of any kind in
tort, contract or otherwise against a municipality or an
educational institution, irrespective of whether such parties
have actual notice thereof. The pledge shall be noted in the
resolution authorizing issuance of revenue bonds, which shall be
constructive notice thereof to all parties and the resolution
need not be recorded, nor shall the filing of any financing
statement under the Uniform Commercial Code be required to
perfect such pledge.
(5) The municipality may establish the terms under which its
revenue bonds shall be issued and sold.
(6) All revenue bonds issued pursuant to ORS 352.790 to 352.820
shall be legal securities which may be used by any insured
institution or trust company, as those terms are defined in ORS
706.008, for deposit with the State Treasurer or a county
treasurer or city treasurer as security for deposits in lieu of a
surety bond under any law relating to deposits of public moneys.
The revenue bond shall constitute legal investments for public
bodies, trustees and other fiduciaries, banks, savings and loan
associations and insurance companies. All revenue bonds shall
constitute negotiable instruments within the meaning of and for
all purposes of the law of this state.
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