Chapter 58 Oregon Laws 2005

AN ACT

HB 2034

Relating to deposit of public funds.

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

SECTION 1. (1) A public official may deposit public funds in an amount in excess of the amount allowed in ORS 295.025 without procuring a certificate of participation if the funds are initially deposited into a depository in Oregon and the Oregon depository participates in a program through which:

(a) The Oregon depository arranges for deposit of the funds into one or more certificates of deposit or time deposits issued by other financial institutions in the United States;

(b) Each certificate of deposit or time deposit is fully insured by the Federal Deposit Insurance Corporation;

(c) The Oregon depository administers the funds on behalf of the public official; and

(d) Other financial institutions participating in the program place funds into the Oregon depository in an amount at least equal to the amount deposited into the Oregon depository by the public official for purposes of the program.

(2) The provisions of ORS 294.035 and 295.005 requiring deposit of public funds into depositories that have offices or branches in Oregon do not apply to certificates of deposit or time deposits that an Oregon depository arranges for under the provisions of the program described in this section.

(3) As used in this section, “public funds” and “public official” have the meanings given those terms in ORS 295.005.

Approved by the Governor May 18, 2005

Filed in the office of Secretary of State May 19, 2005

Effective date January 1, 2006

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