73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 528
Senate Bill 23
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of 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 as
introduced.
Makes numerous technical changes to procedures for issuing,
selling and maintaining bonds issued by public issuers.
A BILL FOR AN ACT
Relating to public bonds; creating new provisions; amending ORS
223.235, 238.694, 271.390, 284.365, 285A.274, 287.018, 287.025,
287.053, 288.150, 288.155, 288.515, 288.605, 288.645, 288.865,
294.035, 294.040, 294.046, 294.048, 294.135, 294.326, 294.483,
297.405, 305.583, 310.651, 441.590, 468.272, 478.390 and
777.590; and repealing ORS 288.310 and 288.320.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 223.235 is amended to read:
223.235. (1) When in any local government a bond lien docket is
made up, as provided in ORS 223.230, as to the final assessments
for any local improvement, the local government shall by
ordinance or resolution of the governing body authorize the issue
of its bonds pursuant to the applicable provisions of ORS chapter
288 and in accordance with this section.
(2) The bonds authorized to be issued under this section
{ - shall - } { + must + } be issued in an amount that does
not exceed the unpaid balance of all final assessments for the
related local improvements, plus the amounts necessary to fund
any debt service reserve and to pay any other financing costs
associated with the bonds.
(3)(a) If the question of the issuance of the specific bonds
has been approved by the electors of the local government and the
bonds are issued as general obligation bonds, the local
government shall each year assess, levy and collect a tax on all
taxable property within its boundaries. The amount of the tax
{ - shall - } { + must + } be sufficient to pay all principal
of and interest on the bonds that are due and payable in that
year and to replenish any debt service reserves required for the
bonds. In computing the amount of taxes to impose, the local
government shall { + :
(A) + } Deduct from the total amount otherwise required the
amount of final installment payments { - which - }
{ + that + } are pledged to the payment of the bonds and
{ - which - } { + that + } are due and payable in that year
{ - , and shall - } { + ; and
(B) + } Add to this net amount the amount of reasonably
anticipated delinquencies in the payments of the installments or
the taxes.
(b) The taxes { - shall - } { + must + } be levied in each
year and returned to the county officer whose duty it is to
extend the tax roll within the time and in the manner provided in
ORS 310.060.
(c) The taxes { - shall - } become payable at the same time
and
{ - be - } { + are + } collected by the same officer who
collects county taxes and { - shall - } { + must + } be
turned over to the local government according to law.
(d) The county officer whose duty it is to extend the county
levy shall extend the levy of the local government in the same
manner as city taxes are extended. Property { - shall be
subject to sale - } { + may be sold + } for nonpayment of the
taxes levied by a local government in like manner and with like
effect as in the case of county and state taxes.
(4) If the question of the issuance of the specific bonds has
not been approved by the electors of the local government
{ - and the bonds are issued - } { + , the local government may
issue the bonds + } as limited tax { - obligation - } bonds,
{ + as defined in ORS 288.150 + } { - the local government
may, subject only to the limitations of section 11b (1), Article
XI of the Oregon Constitution, calculate, assess, levy and
collect a tax on all taxable property within its boundaries in
the manner provided in subsection (3) of this section. The amount
of such tax shall be sufficient to pay all principal of and
interest on such bonds which is due and payable in that year and
to replenish any debt service reserves required for such bonds,
provided that if such bonds are issued as limited tax obligation
bonds the amount of such tax shall not exceed the amount
permitted under section 11b (1), Article XI of the Oregon
Constitution - } .
(5)(a) All bonds issued pursuant to this section, including
general obligation bonds, { - shall be - } { + are + }
secured by and { - be - } payable from the installments of
final assessments with respect to which the bonds were issued.
(b) In the ordinance or resolution authorizing the issuance of
the bonds, the governing body of the issuing local government
may:
(A) Provide that installments of final assessments levied with
respect to two or more local improvements shall secure a single
issue of bonds.
(B) Reserve the right to pledge, as security for any bonds
thereafter issued pursuant to this section, any installments of
final assessments previously pledged as security for other bonds
issued pursuant to this section.
(c) All bonds { - shall - } { + must + } be secured by a
lien on the installments of final assessments with respect to
which they were issued. The lien { - shall be - } { + is + }
valid, binding and fully perfected from the date of issuance of
the bonds. The installments of final assessments { - shall
be - } { + are + } immediately subject to the lien without the
physical delivery thereof, the filing of any notice or any
further act. The lien { - shall be - } { + is + } valid,
binding and fully perfected against all persons having claims of
any kind against the local government or the property assessed
whether in tort, contract or otherwise, and irrespective of
whether { - such - } { + the + } persons have notice of the
lien.
(6) As additional security for any bonds issued under this
section, including general obligation bonds, the governing body
of the issuing local government may pledge or mortgage, or grant
security interests in, its revenues, assets and properties, and
otherwise secure and enter into covenant with respect to the
bonds, as provided in ORS 288.155.
(7)(a) A local government { - shall have the power, at any
time and - } { + may, + } from time to time after the
undertaking of a local improvement has been authorized,
{ - to - } borrow money and issue and sell notes for the
purpose of providing interim financing for the actual costs of
the local improvement.
(b) Notes authorized under this subsection may be issued in a
single series for the purpose of providing interim financing for
two or more local improvements.
(c) Notes authorized under this subsection { - shall mature
not - } { + may not mature + } later than one year after the
date upon which the issuing local government expects to issue
bonds for the purpose of providing permanent financing with
respect to installment payments of the final assessments for the
local improvements.
(d) Any notes authorized under this subsection may be refunded
from time to time by the issuance of additional notes or out of
the proceeds of bonds issued pursuant to this section. The notes
may be made payable from the proceeds of any bonds to be issued
under this section to provide permanent financing or from any
other sources from which the bonds are payable.
(e) The governing body of the issuing local government may
pledge to the payment of the notes any revenues that may be
pledged to the payment of bonds authorized to be issued under
this section with respect to the local improvements for which the
notes provide interim financing.
SECTION 2. ORS 238.694 is amended to read:
238.694. (1) The Legislative Assembly finds that authorizing
issuance of limited tax bonds or revenue bonds to finance pension
liabilities may reduce the cost of public pensions to taxpayers
and that the reduction of those costs to taxpayers is a matter of
statewide concern.
(2) Notwithstanding { + the limitation on indebtedness in ORS
287.053 or + } any { + other + } limitation on indebtedness or
borrowing under state or local law, for the purpose of obtaining
funds to pay the pension liability of a governmental unit, the
governing body of a governmental unit may authorize and cause the
issuance of limited tax bonds as defined in ORS 288.150, revenue
bonds authorized by charter or pursuant to ORS 288.805 to
288.945, or any combination of those bonds.
{ + (3) + } The governing body of a governmental unit may
pledge the full faith and credit and taxing power of the
governmental unit to the payment of the principal and interest on
bonds issued under ORS 238.692 to 238.698, and any premium on
those bonds.
{ - (3) - } { + (4) Except as otherwise provided in this
section, + } limited tax bonds authorized under this section must
be issued in the manner prescribed by { + the applicable
provisions of + } ORS chapters 287 and 288 for the issuance of
limited tax bonds.
{ + (5) Unless the charter of a county provides a lower
limit, + }a county may not issue limited tax bonds under this
section { - for - } { + in + } an amount that exceeds five
percent of the real market value of the taxable property within
the boundaries of the county.
{ - (4) - } { + (6) + } Revenue bonds authorized under this
section need not comply with the procedure specified in ORS
288.815.
{ - (5) - } { + (7) + } A governmental unit that issues
limited tax bonds or revenue bonds under this section may also
issue limited tax bonds or revenue bonds for the purpose of
refunding the bonds.
{ - (6) - } { + (8) + } A governmental unit may enter into
indentures or other agreements with trustees or escrow agents for
the issuance, administration or payment of bonds authorized under
this section.
SECTION 3. 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.
(b) { - ' Municipality' - } { + ' Governmental unit' + }
has the meaning given that term in ORS { - 288.515 - } { +
288.150 + }.
(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) A { - municipality - } { + governmental unit + } 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 { + of the governmental unit or council of
governments + }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 - }
{ + governmental unit + } or a council of governments
{ - shall be made - } { + are + } subject to the terms of its
charter, intergovernmental agreement or other organizing
document, if applicable. If authorized by the governing body,
{ - such - } { + the + }contracts may:
(a) Provide that the obligations of the { - municipality - }
{ + governmental unit + } or council of governments under the
{ + + } contract
{ - shall be - } { + is + } 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 - }
{ + governmental unit + } or council of governments under the
contract
{ - shall be - } { + are + } payable out of all or any
{ - designated - } portion of the lawfully available
{ - revenues of the municipality - } { + funds, as defined in
ORS 288.162, of the governmental unit + } or council of
governments, { - which revenues - } { + and lawfully
available funds + } may be pledged to the payment of those
obligations.
(c) If authorized by the charter, intergovernmental agreement
or other organizing document of the { - municipality - }
{ + governmental unit + } or council of governments, contain a
covenant on the part of the { - municipality - }
{ + governmental unit + } 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 - }
{ + governmental unit + } 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 - } { + governmental unit + } or council of
governments.
(3) The lien of the pledge, mortgage or security interest is
valid and binding from the time of entering into the contract.
The revenue or property is immediately subject to the lien
without physical delivery, filing or other act, and the lien 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 - } { +
governmental unit + }, 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 - } { + must + } be applied { + first + } 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 - } { + governmental unit + } 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) A { - municipality - } { + governmental unit + } or
council of governments that has entered into a lease purchase or
installment purchase agreement may enter into a financing
agreement to refinance the obligations of the
{ - municipality - } { + governmental unit + } 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 may not exceed the estimated dollar
weighted average life of the real or personal property that is
financed with the contract.
SECTION 4. ORS 287.018 is amended to read:
287.018. { - For general obligation issues: - }
(1) For { + general obligation + } bonds { - which are sold
at public competitive bid - } { + offered for public + } sale,
the issuer shall prepare and make available { - upon request to
bidders and investors - } { + , for use in connection with the
initial offering and sale, + }a preliminary official statement
that { + discloses the material information that the issuer
determines is relevant to a potential investor in the bonds. + }
{ - includes the following: - }
{ - (a) Past and current financing and estimated future
financing of the issuer; - }
{ - (b) A brief description of the financial administration
and organization of the issuer; - }
{ - (c) A brief description of the economic and social
characteristics of the issuer which will permit bidders and
investors to appraise the issuer's ability to assume and service
adequately the debt obligation; and - }
{ - (d) Any other information the issuer may provide or which
the Oregon Municipal Debt Advisory Commission may require by rule
of any issuer other than the state. - }
{ - (2) The preliminary official statement described in
subsection (1) of this section shall be available not fewer than
10 calendar days preceding the date of the bond sale. - }
{ - (3) The preliminary official statement shall contain the
best available information which shall be accurate to the best
knowledge of the issuer. However, any errors or omissions in the
preliminary official statement shall not affect the validity of
the bond issue. - }
{ - (4) - } { + (2) + } The { + preliminary official + }
statement required by this section of state agencies
{ - shall - } { + must + } be submitted to the State Treasurer
for approval. If not approved, the State Treasurer shall note the
revision required. The issuer shall make the noted revisions.
SECTION 5. ORS 287.025 is amended to read:
287.025. (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 - } { + or + } 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.
{ + (d) 'Related obligation' means the underlying obligation
for which the issuer, or the State Treasurer on behalf of a state
issuer, enters into an agreement under this section.
(e) 'Termination payment' means the amount payable under an
agreement for exchange of interest rates by one party to another
party as a result of termination of the agreement prior to the
expiration of the stated term. + }
(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 - } { + for one or more related obligations + } the
issuer has issued or will issue { + or for different obligations
designated during the term of the agreement by the issuer as a
result of prepayment, refunding, conversion, ratings changes,
redemption, defeasance or other similar event related to a
particular obligation. An agreement may be made + } to manage
payment, interest rate, spread or similar exposure undertaken in
connection with the { + related or designated different + }
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 { + related + } 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 { + as determined by
the Oregon Municipal Debt Advisory Commission or the State
Treasurer, as applicable, under and subject to subsection (13) of
this section + }; or
(b) The { + termination payment + } 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 { + :
(A) That are + } rated in one of the top three rating
categories without gradation by at least two nationally
recognized rating agencies { - and: - } { + as determined by
the Oregon Municipal Debt Advisory Commission or the State
Treasurer, as applicable, under and subject to subsection (13) of
this section; + }
{ - (A) - } { + (B) + } { - The cash or obligations - }
{ + That + } are deposited with the issuer, or the State
Treasurer on behalf of a state issuer, or with an agent of the
issuer;
{ - (B) - } { + (C) + } { - The cash or obligations - }
{ + That + } have a market value sufficient to fully
collateralize the { + termination payment + } 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) - } { + (D) + } { - The collateral obligations
are valued - } { + That are revalued + } at least quarterly.
(6) With respect to an obligation that { - the issuer, or the
State Treasurer on behalf of a state issuer, - } has
{ + been + } issued or will { - issue - } { + be issued + },
the issuer, or the State Treasurer on behalf of a state issuer,
may { + , based on the issuer's reasonable expectations at the
time the agreement is executed, + } 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 { + when the agreement is entered into or, if the
obligation has not been issued, the principal amount of the
obligation reasonably anticipated to be outstanding when payments
are required to commence under the agreement + } 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 { + when the agreement is entered into or, if the
obligation has not been issued, the principal amount of the
obligation reasonably anticipated to be outstanding when payments
are required to commence under the agreement + } 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
{ + related + } 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 { + related + } 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
{ + related + } 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 { + related + } obligation { - related
to - } { + for which + } the agreement { + is made + } 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 - } { + a
related + } obligation { + and the limitation described in
subsection (12) of this section + }, payments required { - to
be made - } under the agreement by the issuer, or the State
Treasurer on behalf of a state issuer { + , may + }: { +
(a) Be treated as interest payments on the related
obligation; + }
{ - (a) - } { + (b) + } { - May - } Be made from
revenues or other moneys committed to or legally available to pay
the { - underlying debt - } { + related + } obligation; and
{ - (b) - } { + (c) + } { - May - } Rank in an order of
priority of payment relative to the payment of the
{ - underlying debt - } { + related + } 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 { + :
(a) + } Is not a debt or other obligation of the
{ - state - } issuer for purposes of any limitation upon the
indebtedness of the
{ - state - } issuer.
{ + (b) Is subject only to the limitations of this section
and is not subject to other limitations applicable to the related
obligation.
(12) A termination payment required to be paid by a public body
that is not a state issuer under an agreement for exchange of
interest rates may not be paid from taxes that the public body
may levy that are exempt from the limitations of sections 11 and
11b, Article XI of the Oregon Constitution. + }
{ - (12)(a) - } { + (13)(a) + }The Oregon Municipal Debt
Advisory Commission { + :
(A) + } 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 { + ; and
(B) May promulgate administrative rules:
(i) Requiring a party to an agreement, the party's guarantor or
the collateral securing the obligation of a party or the party's
guarantor to meet specific credit rating standards or other
conditions; or
(ii) If the commission determines that restrictions are
necessary or appropriate to protect the interests of issuers,
requiring the agreement to contain terms and conditions that are
more restrictive than the terms and conditions established in
subsection (5) of this section + }.
(b) The State Treasurer may promulgate administrative
rules { + :
(A) + } 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 { + ;
(B) Requiring a party to an agreement, the party's guarantor or
the collateral securing the obligation of a party or the party's
guarantor to meet specific credit rating standards or other
conditions; or
(C) If the State Treasurer determines that conditions and
restrictions are necessary or appropriate to protect the
interests of issuers, requiring the agreement to contain terms
and conditions that are more restrictive than the terms and
conditions established in subsection (5) of this section + }.
{ - (13)(a) - } { + (14)(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) - } { + (13) + } of this section.
{ - (14) - } { + (15) + } 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 6. ORS 287.053 is amended to read:
287.053. (1) Except when a charter provides a lower limit upon
the issuance of limited tax bonded indebtedness, a county
{ - shall - } { + may + } not have at any one time
outstanding limited tax bonded indebtedness in a principal amount
that exceeds one percent of the real market value of all taxable
property within the county, computed in accordance with ORS
308.207, after deducting from the outstanding principal amount of
{ - such - } { + the + }indebtedness the total amount of cash
funds and sinking funds that are available for payment of the
principal.
{ + (2) The limitation on outstanding limited tax bonded
indebtedness in this section does not apply to limited tax bonds
issued under ORS 238.692 to 238.698. + }
{ - (2) - } { + (3) + } As used in this section:
(a)(A) 'Bonded indebtedness' means any formally executed
written agreement representing a promise by a county to pay to
another a specified sum of money at a specified date or dates at
least one year in the future. 'Bonded indebtedness' includes any
lease, lease purchase agreement, contract or financing agreement
authorized by ORS 271.390.
(B) 'Bonded indebtedness' does not include a general obligation
bond, as defined in ORS 288.150, or any obligation for which the
holder's payment recourse in any eventuality is only to a
specified fund from which payment of principal, premium, if any,
and interest on the obligation must be paid.
(b) 'Limited tax bonded indebtedness' means a bond or other
obligation { - that is a - } { + for which the issuer pledges
its + } full faith and credit { - obligation - } { + and
taxing power, as described in ORS 288.162 + }, and that is
payable from any taxes that the issuer may levy within the
limitations of section 11b, Article XI of the Oregon
Constitution, and either within or outside the limitations of
section 11, Article XI of the Oregon Constitution. 'Limited tax
bonded indebtedness' includes any bonded indebtedness incurred by
a county that, by the express terms of such bonded indebtedness:
(A) Requires the county to budget and appropriate in each
fiscal year moneys sufficient to pay the principal, premium, if
any, and interest on the bonded indebtedness due during the
fiscal year.
(B) Allows the holders of the bonded indebtedness, in addition
to any other available remedies, to bring suit to compel the
county to appropriate funds to pay the principal, premium, if
any, and interest on the bonded indebtedness due during a fiscal
year when the county governing body fails or refuses to
appropriate moneys for such purpose in the fiscal year.
SECTION 7. ORS 288.150 is amended to read:
288.150. As used in ORS 288.150 to 288.165:
(1) 'Actual cost' has the meaning given the term under ORS
310.140.
(2) 'Capital construction' has the meaning given the term under
ORS 310.140.
(3) 'Costs' when used with capital construction or improvements
has the same meaning as 'actual costs' as defined under ORS
310.140.
(4) 'Credit agreement' means a note, letter of credit, line of
credit or similar agreement in which a financial institution
agrees to loan funds to the governmental unit, and the
governmental unit pledges its full faith and credit and agrees to
repay the amounts loaned over time, with or without interest.
{ + (5) 'Credit enhancement device' means a letter of credit,
line of credit, municipal bond insurance policy, standby purchase
agreement or other device or facility used to enhance the
creditworthiness or marketability of municipal bonds. + }
{ - (5) - } { + (6) + } 'General obligation bond' means a
bond including a credit agreement { - , which - } { + that:
(a) + }Is a full faith and credit obligation { - , and
which - } { + ; and
(b) + }Is payable from taxes { - which - } { + that + }
may be levied without limitation by section 11 { + or 11b + },
Article XI of the Oregon Constitution { - , and without
limitation by section 11b, Article XI of the Oregon
Constitution - } .
{ - (6) - } { + (7) + } 'Governmental unit' means a unit of
local government within the State of Oregon, including, but not
limited to, cities, counties, school districts, special
districts, public corporations and intergovernmental corporations
organized under the authority of ORS 190.010.
{ - (7) - } { + (8) + } 'Improvement' has the meaning given
'capital improvements' under ORS 310.140.
{ - (8) - } { + (9) + } ' Limited tax bond' means a bond
or other obligation { - which - } { + that:
(a) + }Is a full faith and credit obligation { - , and
which - } { + ; and
(b) + }Is payable from { - any taxes which - } { + taxes
that + } the issuer may levy within the limitations of
{ - section - } { + sections 11 and + } 11b, Article XI of the
Oregon Constitution { - and either within or without the
limitations of section 11, Article XI of the Oregon
Constitution - } . { +
(10) 'Related property' includes tangible personal or real
property that is part of, functionally related to or used in
connection with a public utility system of which the financed
property is a part. + }
{ - (9) - } { + (11) + } 'Structure' has the meaning given
the term under ORS 310.140.
SECTION 8. ORS 288.155 is amended to read:
288.155. (1) If authorized by law other than ORS 288.150 to
288.165 and in the manner provided by law, a governmental unit
may issue general obligation bonds when:
(a) The question of issuing the specific bonds has been
approved by the electors of the issuing governmental unit or the
bonds replace outstanding general obligation bonds pursuant to
ORS 288.160; and
(b) The general obligation bonded indebtedness will be incurred
for capital construction or improvements.
(2) In addition to the authority to issue limited tax bonds
provided by other provisions of law, a governmental unit also is
authorized to issue limited tax bonds in the following
circumstances:
(a) When a governmental unit is authorized by a statute or
charter to issue general obligation bonds without submitting the
question of the issuance thereof to its electors, such
governmental unit may exercise such statutory or charter
authority to issue limited tax bonds for the same purposes and
subject to the same terms and conditions of such statutory or
charter authority.
(b) When the electors of a governmental unit have authorized
the issuance of general obligation bonds for a particular
purpose, the governing body, in its discretion and to carry out
such purpose, may issue all or a portion of such bonds as limited
tax bonds.
(3) Notwithstanding this section or any other provision of law
requiring bonds to be authorized by ordinance, the limited tax
bonds authorized by this section shall be issued pursuant to a
resolution or ordinance of the governing body of the issuing
governmental unit.
{ - (4) For the purpose of paying all principal of and
interest on any limited tax bonds authorized by this section or
by any other provision of law, the issuing governmental unit may,
subject only to the limitations of section 11b (1), Article XI of
the Oregon Constitution, calculate, assess, levy and collect each
fiscal year a tax on all taxable property within its boundaries.
The amount of such tax shall be sufficient to pay all principal
of and interest on such limited tax bonds which are due and
payable in that year and to replenish any debt service reserves
required for such limited tax bonds. In computing the amount of
such tax, the governmental unit shall deduct from the total
amount otherwise required the amount of any other funds which are
reasonably expected to be available to pay the principal and
interest coming due on such limited tax bonds during the fiscal
year in question. - }
{ - (5) - } { + (4) + } A governmental unit that has
outstanding general obligation or limited { - general
obligation - } { + tax + } bonds, { - on an annual basis
and - } subject to { - any - } applicable covenants or
agreements { - which limit - } { + limiting + } payment of
{ - certain - } { + specific + } obligations to particular
sources of funds, shall budget and appropriate amounts sufficient
to pay in each succeeding annual period debt service on
{ - such - } { + the + } bonds. However, this subsection does
not require the governmental unit to adopt a supplemental budget
to pay the principal and interest coming due on { - such - }
{ + the + }
{ - bonds, or on - } { + general obligation or + } limited
tax bonds { - , - } in the fiscal year in which { - such - }
{ + the + } bonds are authorized and issued { + . + }
{ - , but - } The governmental unit may pay { - such - }
principal and interest { + in the fiscal year in which the bonds
are authorized and issued + } from any lawfully available source
of funds without adopting a supplemental budget
{ - therefor - } .
{ - (6) - } { + (5) + } When issuing limited tax bonds, a
governmental unit may:
(a) Establish the maturity schedule, interest rates, including
variable or adjustable rates of interest, redemption provisions
and other terms of the limited tax bonds. Notwithstanding this
subsection, the governing body, in the ordinance or resolution
authorizing the issuance of { - such - } { + the + } bonds or
notes, may delegate to any elected or appointed official or
employee of the governmental unit the authority to determine the
maturity dates, principal amounts, redemption provisions,
interest rates or the method of determining a variable or
adjustable interest rate, denominations and other terms and
conditions of { - such - } { + the + } bonds { - which - }
{ + that + } are not appropriately determined at the time of
enactment of the authorizing ordinance or resolution { + . + }
{ - , which delegated authority shall - } { + The authority
delegated under this subsection must + } be exercised subject to
the applicable requirements of law and { - such - }
{ + the + } limitations and criteria { - as may be - } set
forth in { - such - } { + the + } ordinance or resolution;
(b) Pledge as additional security for the limited tax bonds all
or any portion of its revenues { + or other funds + } of
whatever kind or nature and from whatever source derived
{ - which, under applicable law, - } { + that + } are not
specifically restricted { + , under applicable law, + } to uses
other than the payment of the amounts owing on { - such - }
{ + the + } bonds { - , including but not limited to excise
taxes, property taxes and other taxes of whatever kind or nature,
revenues derived from any - } { + including, but not limited
to, taxes, fees or income derived from + } public utilities or
other { - revenue - } { + income- + }producing enterprises
operated by the governmental unit { + , + } or agencies or
instrumentalities thereof, { - user charges, business and
license fees, - } { + or + } fines and penalties, and make and
enter into covenants with the owners of { - such - }
{ + the + } bonds to pay all or any portion of the amounts owing
thereon out of all or any portion of
{ - such - } { + the + } revenues { + or other funds + };
(c) Grant mortgages, trust deeds or security interests in
property { - which - } { + that + } is financed with the
limited tax bonds and related property, in order to enhance the
security of limited tax bonds or the obligations of the
governmental unit under { - or with respect to any - }
{ + a + } related credit enhancement device { - . For purposes
of this subsection, 'related property' shall include any tangible
personal or real property comprising a part of a system such as a
water, sewer or other public utility system of which the financed
property is a part, and shall also include any tangible personal
or real property which is functionally related to or used in
connection with the property financed - } ;
(d) Obtain a credit enhancement device providing additional
security for the payment of all or any portion of the amounts
owing under { - such - } { + the + } bonds or for the purpose
of funding, in lieu of cash, all or any portion of any debt
service reserve established with respect to { - such - }
{ + the + } bonds. The governmental unit may pledge as security
for its obligations arising under { - or with respect to
any - } { + a + } credit enhancement device any revenues
pledged to the payment of the related bonds, and { - such - }
{ + the + } obligations { - shall in any event be - }
{ + are + } payable from the same sources from which
{ - such - } { + the + } bonds are payable { - . For purposes
of this subsection, 'credit enhancement device' means a letter of
credit, line of credit, municipal bond insurance policy, standby
purchase agreement or other device or facility used to enhance
the creditworthiness or marketability of municipal bonds - } ;
(e) Enter into agreements with bond trustees and deposit funds
with trustees for the benefit of bond owners and the providers of
credit enhancement devices for bonds;
(f) Enter into covenants for the benefit of bond owners or the
providers of credit enhancement devices for bonds { - which - }
{ + that + } are intended to improve the security of bond owners
or providers of credit enhancement devices, or to maintain the
tax exempt status of interest payable on bonds or credit
enhancement agreements. { - Such - } Covenants may include,
but are not limited to, covenants regarding the issuance of
additional bonds and other financial obligations, the imposition
and collection of any revenues { - which - } { + that + }
secure the bonds, and the priority of payment of bonds and other
financial obligations of the governmental unit; and
(g) Establish a debt service reserve for the purpose of paying
when due all amounts owing on { - such - } { + the + } bonds
{ - , which - } { + and fund the + } debt service reserve
{ - may be funded out of the - } { + with + } proceeds derived
from the issuance and sale of { - such - } { + the + } bonds
or from { - such - } other sources { - as - }
{ + determined by + } the governing body of the governmental
unit { - may determine - } .
{ - (7) - } { + (6) + } A security interest granted by a
governmental unit under authority of ORS 288.150 to 288.165
{ - shall attach and be - } { + attaches and is + } perfected
on the date the security interest is granted or the date the
governmental unit takes possession of the property in which the
security interest is granted, whichever is later. A security
interest authorized by ORS 288.150 to 288.165
{ - shall have - } { + has + } priority over all other liens
and claims.
SECTION 9. ORS 288.515 is amended to read:
288.515. As used in ORS 288.515 to 288.600:
(1) 'Bonds' means general obligation, revenue or tax increment
bonds, { - or - } notes { + , lease purchase, financing or
loan agreements, land sale contracts or other borrowings + } of a
public body.
(2) 'Public body' means the State of Oregon, its agencies,
institutions or any municipality authorized by law to issue
bonds.
(3) 'Municipality' means a political subdivision of this state
and municipal, quasi-municipal and public corporations and
intergovernmental entities organized under ORS chapter 190
authorized by law to issue bonds.
SECTION 10. ORS 288.605 is amended to read:
288.605. As used in ORS 288.605 to 288.695, unless the context
requires otherwise:
(1) 'Advance refunding bonds' means bonds issued for the
purpose of refunding bonds first subject to redemption or
maturing one year or more from the date of the advance refunding
bonds.
(2) 'Bond' means any revenue bond, general obligation bond or
certificate of participation.
(3) 'Certificate of participation' means:
(a) Any financing agreement entered into by the State of
Oregon, an agency or institution of the State of Oregon under ORS
283.085 to 283.092 or a public corporation under ORS chapter 353,
or any certificate of participation issued under such financing
agreement.
(b) Any financing agreement entered into by a local public body
authorized by law to enter into financing agreements, or any
certificate of participation issued under such financing
agreements.
(4) 'Financing agreement' means a lease purchase agreement, an
installment sale agreement, a loan agreement or any other
agreement to finance real or personal property that is or will be
owned and operated by a public body, or to refinance previously
executed financing agreements.
(5) 'Forward current refunding' means execution and delivery of
a forward delivery bond purchase agreement or similar instrument
under which a public body contracts to sell current refunding
bonds at a specified future date.
(6) 'General obligation bond' means any bond, note, warrant,
certificate of indebtedness or other obligation of a public body
which constitutes an indebtedness within the meaning of the
constitutional or statutory debt limitation and which is secured
by the unlimited taxing power of the public body.
(7) 'Governing body' means the council, commission, board or
other legislative body of the public body designated in ORS
288.605 to 288.695 in which body the legislative powers of the
public body are vested, provided that with respect to the state
it shall mean the State Treasurer.
(8) 'Government obligations' means any of the following:
(a) Direct obligations of or obligations the principal of and
interest on which are unconditionally guaranteed by the United
States of America and bank certificates of deposit secured by
{ - such - } { + the + } obligations;
(b) Bonds, debentures, notes, { + certificates of + }
participation
{ - certificates - } or other obligations issued by { + a
federal agency or other instrumentality of the United States
Government; or
(c) Other debt obligations determined by administrative rule of
the State Treasurer or the Oregon Municipal Debt Advisory
Commission to be highly secured and widely accepted in the
marketplace as obligations for a defeasance escrow. + } { - the
banks for cooperatives, the federal intermediate credit bank, the
federal home loan bank system, the export-import bank of the
United States, federal land banks or the federal national
mortgage association; - }
{ - (c) Public housing bonds and project notes fully secured
by contracts with the United States; - }
{ - (d) Obligations of financial institutions insured by the
Federal Deposit Insurance Corporation to the extent insured or to
the extent guaranteed as permitted under any other state law;
or - }
{ - (e) General obligation bonds of the State of Oregon
bearing a rating from a nationally recognized rating service at
least equal in quality to the rating assigned by such service to
the bonds being refunded. - }
(9) 'Issuer' means the public body issuing any bond or bonds.
(10) 'Ordinance' means an ordinance of a public body or
resolution or other instrument by which the governing body of the
public body exercising any power takes formal action and adopts
legislative provisions and matters of some permanency.
(11) 'Public body' means the State of Oregon, its agencies,
institutions, political subdivisions, municipal, quasi-municipal
and public corporations and intergovernmental entities created by
intergovernmental agreements under ORS chapter 190 authorized by
law to issue general obligation bonds or revenue bonds or to
enter into financing agreements and cause certificates of
participation to be issued under such financing agreements.
(12) 'Revenue bond' means any bond, note, warrant, certificate
of indebtedness or other obligation for the payment of money
issued by a public body or any predecessor of any public body and
which is payable from designated revenues or a special fund but
excluding any obligation constituting an indebtedness within the
meaning of the constitutional or statutory debt limitations and
any obligation payable solely from special assessments or special
assessments and a guaranty fund.
(13) 'Special revenue bond' means any bond, note, warrant,
certificate of indebtedness or other obligation for the payment
of money issued by a public body or any predecessor of any public
body which is payable from designated revenues or a special fund
and which is subject to statutory debt limitations.
SECTION 11. ORS 288.645 is amended to read:
288.645. { + (1) + } Advance refunding bonds { - shall - }
{ + may + } not be issued in a principal amount in excess of the
minimum principal amount { + estimated to be + } necessary:
{ - (1) - } { + (a) + } To purchase a principal amount of
government securities { - which - } { + that is + }, together
with the interest earnings thereon, { - will be - } sufficient
to pay all installments of principal, interest and redemption
premiums, if any, on the bonds being refunded when they fall due
in accordance with the advance refunding plan; and
{ - (2) - } { + (b) + } To pay any amounts charged to the
issuer as administrative costs, expenses or fees { + , + } in
connection with the advance refunding transaction { + , that + }
{ - which - } can be paid from the proceeds of the advance
refunding bond issue.
{ + (2) If the issuer of advance refunding bonds receives an
amount of proceeds that exceeds the actual amount required under
subsection (1) of this section, the excess amount of proceeds
must be used to pay interest on the advance refunding bonds. + }
SECTION 12. ORS 288.865 is amended to read:
288.865. { - (1) - } If revenue bonds are issued by a
municipality, the municipality shall prepare and make available
{ - to bidders and investors - } { + , for use in connection
with the initial offering and sale of the revenue bonds, + }a
preliminary official statement that
{ - includes the following: - }
{ - (a) Past and current financing and estimated future
financing of the issuer; - }
{ - (b) Brief description of the financial administration and
organization of the issuer; - }
{ - (c) Brief description of the economic and social
characteristics of the issuer; - }
{ - (d) A detailed description of the project being financed,
the sources of revenue to repay the debt and an analysis of the
economic feasibility of the project; - }
{ - (e) - } { + discloses the material information that the
issuer determines is relevant to a potential investor and + } any
information the Oregon Municipal Debt Advisory Commission may by
rule require { - ; and - } { + . + }
{ - (f) Any other information the issuer may provide. - }
{ - (2) The preliminary official statement described in
subsection (1) of this section shall be available not fewer than
10 calendar days preceding the date of the revenue bond sale. - }
{ - (3) The preliminary official statement described in
subsection (1) of this section shall contain the best available
information, shall be accurate to the best knowledge of the
issuer, and shall be specifically approved by the
municipality. - }
{ - (4) The requirement for the preliminary official
statement described in subsections (1) to (3) of this section, at
the request of the purchaser, may be waived if the revenue bonds
are not being bought with the intent to resell them. - }
{ - (5) If circumstances warrant, and if the revenue bonds
are to be issued at a private negotiated sale, the State
Treasurer may on an individual sale basis approve a shorter
period than 10 days for the availability of the preliminary
official statement required by subsection (2) of this
section. - }
SECTION 13. ORS 294.035 is amended to read:
294.035. { + (1) + }Subject to ORS 294.040 and 294.135 to
294.155, the custodial officer may { - , after having obtained a
written order from the governing body of the county,
municipality, political subdivision or school district, which
order shall be spread upon the minutes or journal of the
governing body, - } invest any sinking fund, bond fund or
surplus funds in the custody of the custodial officer in the bank
accounts, classes of securities at current market prices,
insurance contracts and other investments listed in this
section { + , but only after obtaining from the governing body of
the county, municipality, political subdivision or school
district a written order that has been entered in the minutes or
journal of the governing body + }. { - However, the custodial
officer of any county shall make no such investment of funds
belonging to any municipality, political subdivision or school
district, unless and until the custodial officer has received a
written order from the governing body of the municipality,
political subdivision or school district to which the funds
belong, which order authorizes the custodial officer to invest
the funds, and which order has been spread upon the minutes or
journal of the governing body. - }
{ + (2) + } This section { - , however, shall - }
{ + does + } not { + :
(a) + } Limit the authority of the custodial officer to invest
surplus funds in other investments when the investment is
specifically authorized by another statute.
{ + (b) Apply to a sinking fund or a bond fund established in
connection with conduit revenue bonds issued by a county,
municipality, political subdivision or school district for
private business entities or nonprofit corporations.
(3) + } Investments authorized by this section are:
{ - (1) - } { + (a) + } Lawfully issued general obligations
of the United States, the agencies and instrumentalities of the
United States or enterprises sponsored by the United States
Government.
{ - (2) - } { + (b) + } Lawfully issued debt obligations of
the agencies and instrumentalities of the State of Oregon and its
political subdivisions that have a long-term rating of A or an
equivalent rating or better or are rated on the settlement date
in the highest category for short-term municipal debt by a
nationally recognized statistical rating organization.
{ - (3) - } { + (c) + } Lawfully issued debt obligations of
the States of California, Idaho and Washington and political
subdivisions of those states if the obligations have a long-term
rating of AA or an equivalent rating or better or are rated on
the settlement date in the highest category for short-term
municipal debt by a nationally recognized statistical rating
organization.
{ - (4) - } { + (d) + } Time deposit open accounts,
certificates of deposit and savings accounts in insured
institutions as defined in ORS 706.008, in credit unions as
defined in ORS 723.006 or in federal credit unions, if the
institution or credit union maintains a head office or a branch
in this state.
{ - (5) - } { + (e) + } Share accounts and savings accounts
in credit unions in the name of, or for the benefit of, a member
of the credit union pursuant to a plan of deferred compensation.
{ - (6) - } { + (f) + } Fixed or variable life insurance or
annuity contracts as defined by ORS 731.170 and guaranteed
investment contracts issued by life insurance companies
authorized to do business in this state.
{ - (7) - } { + (g) + } Trusts in which deferred
compensation funds from other public employers are pooled, if:
{ - (a) - } { + (A) + } The purpose is to establish a
deferred compensation plan;
{ - (b) - } { + (B) + } The trust is a public
instrumentality of such public employers and described in section
(2)(b) of the Investment Company Act of 1940, 15 U.S.C. 80a-2(b),
as amended, in effect on September 20, 1985, or the trust is a
common trust fund described in ORS 709.170;
{ - (c) - } { + (C) + } Under the terms of the plan the net
income from or gain or loss due to fluctuation in value of the
underlying assets of the trust, or other change in such assets,
is reflected in an equal increase or decrease in the amount
distributable to the employee or the beneficiary thereof and,
therefore, does not ultimately result in a net increase or
decrease in the worth of the public employer or the state; and
{ - (d) - } { + (D) + } The fidelity of the trustees and
others with access to such assets, other than a trust company, as
defined in ORS 706.008, is insured by a surety bond that is
satisfactory to the public employer, issued by a company
authorized to do a surety business in this state and in an amount
that is not less than 10 percent of the value of such assets.
{ - (8)(a) - } { + (h)(A) + } Banker's acceptances, if the
banker's acceptances are:
{ - (A) - } { + (i) + } Guaranteed by, and carried on the
books of, a qualified financial institution;
{ - (B) - } { + (ii) + } Eligible for discount by the
Federal Reserve System; and
{ - (C) - } { + (iii) + } Issued by a qualified financial
institution whose short-term letter of credit rating is rated in
the highest category by one or more nationally recognized
statistical rating organizations.
{ - (b) - } { + (B) + } For the purposes of this
{ - subsection - } { + paragraph + }, ' qualified financial
institution' means:
{ - (A) - } { + (i) + } A financial institution that is
located and licensed to do banking business in the State of
Oregon; or
{ - (B) - } { + (ii) + } A financial institution that is
wholly owned by a financial holding company or a bank holding
company that owns a financial institution that is located and
licensed to do banking business in the State of Oregon.
{ - (c) - } { + (C) + } A custodial officer shall not
permit more than 25 percent of the moneys of a local government
that are available for investment, as determined on the
settlement date, to be invested in banker's acceptances of any
qualified financial institution.
{ - (9)(a) - } { + (i)(A) + } Corporate indebtedness
subject to a valid registration statement on file with the
Securities and Exchange Commission or issued under the authority
of section 3(a)(2) or 3(a)(3) of the Securities Act of 1933, as
amended. Corporate indebtedness described in this
{ - subsection - } { + paragraph + } does not include banker's
acceptances. The corporate indebtedness must be issued by a
commercial, industrial or utility business enterprise, or by or
on behalf of a financial institution, including a holding company
owning a majority interest in a qualified financial institution.
{ - (b) - } { + (B) + } Corporate indebtedness must be
rated on the settlement date P-1 or Aa or better by Moody's
Investors Service or A-1 or AA or better by Standard & Poor's
Corporation or equivalent rating by any nationally recognized
statistical rating organization.
{ - (c) - } { + (C) + } Notwithstanding { - paragraph (b)
of this subsection - } { + subparagraph (B) of this
paragraph + }, the corporate indebtedness must be rated on the
settlement date P-2 or A or better by Moody's Investors Service
or A-2 or A or better by Standard & Poor's Corporation or
equivalent rating by any nationally recognized statistical rating
organization when the corporate indebtedness is:
{ - (A) - } { + (i) + } Issued by a business enterprise
that has its headquarters in Oregon, employs more than 50 percent
of its permanent workforce in Oregon or has more than 50 percent
of its tangible assets in Oregon; or
{ - (B) - } { + (ii) + } Issued by a holding company owning
not less than a majority interest in a qualified financial
institution, as defined in { - subsection (8) of this
section - } { + paragraph (h) of this subsection + }, located
and licensed to do banking business in Oregon or by a holding
company owning not less than a majority interest in a business
enterprise described in { - subparagraph (A) of this
paragraph - } { + sub-subparagraph (i) of this
subparagraph + }.
{ - (d) - } { + (D) + } A custodial officer { - shall - }
{ + may + } not permit more than 35 percent of the moneys of a
local government that are available for investment, as determined
on the settlement date, to be invested in corporate indebtedness,
and { - shall - } { + may + } not permit more than five
percent of the moneys of a local government that are available
for investment to be invested in corporate indebtedness of any
single corporate entity and its affiliates or subsidiaries.
{ - (10) - } { + (j) + } Securities of any open-end or
closed-end management investment company or investment trust, if
the securities are of the types specified in { - subsections
(1) to (3), (8) and (9) of this section - } { + paragraphs (a)
to (c), (h) and (i) of this subsection + } and if the investment
does not cause the county, municipality, political subdivision or
school district to become a stockholder in a joint company,
corporation or association. A trust company or trust department
of a national bank while acting as indenture trustee may invest
funds held by it as indenture trustee in any open-end or
closed-end management investment company or investment trust for
which the trust company or trust department of a national bank or
an affiliate of the trust company or trust department of a
national bank acts as investment adviser or custodian or provides
other services. However, the securities of the investment company
or investment trust in which { - such - } { + the + } funds
are invested must be of the types specified in { - subsections
(1) to (3), (8) and (9) of this section - } { + paragraphs (a)
to (c), (h) and (i) of this subsection + } and the investment
must not cause the county, municipality, political subdivision or
school district whose funds are invested to become a stockholder
in a joint company, corporation or association. For purposes of
this
{ - subsection - } { + paragraph + }, companies are
affiliated if they are members of the same affiliated group under
section 1504 of the Internal Revenue Code of 1986 (26 U.S.C.
1504).
{ - (11) - } { + (k) + } Repurchase agreements whereby the
custodial officer purchases securities from a financial
institution or securities dealer subject to an agreement by the
seller to repurchase the securities. The repurchase agreement
must be in writing and executed in advance of the initial
purchase of the securities that are the subject of the repurchase
agreement. Only securities described in { - subsection (1) of
this section shall - } { + paragraph (a) of this subsection
may + } be used in conjunction with a repurchase agreement and
such securities shall have a maturity of not longer than three
years. The price paid by the custodial officer for such
securities may not exceed amounts or percentages prescribed by
written policy of the Oregon Investment Council or the Oregon
Short Term Fund Board created by ORS 294.885.
SECTION 14. 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 - }
{ + does + } 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 - }
{ + does + } 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 - } { + is + } 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 - }
{ + does + } 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 - }
{ + is + } 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 - } { + the governing body of
the municipal corporation + } was responsible. { - Such - }
{ + The + } governing body may make excess expenditures for
{ - such - } { + the + } 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 - } { + The + } expenditures
{ - shall be - } { + are + }lawful only after the enactment
of appropriate appropriation ordinances or resolutions
authorizing the expenditures. The ordinance or resolution
{ - shall - } { + must + } state the need for the expenditure,
the purpose for the expenditure and the amount appropriated.
(5) Subsection (1) of this section { - shall - }
{ + does + } 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 referral period described
in ORS 288.815 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 - } { + does + } not
apply to:
(a) Expenditures of funds received from the sale of conduit
revenue bonds { + or other borrowings + } issued for private
business { + entities + } 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 - } { + the + } bonds;
(b) Expenditures of funds that have been irrevocably placed in
escrow for the purpose of defeasing and paying bonds { + or
other borrowings + }; { - or - }
(c) Expenditures of assessments or other revenues to redeem
bonds or other obligations that are payable from { - such - }
{ + the + } assessments or other revenues, when { - such - }
{ + the + } assessments or other revenues are received as a
result of prepayments or other unforeseen circumstances
{ - . - } { + ; or + }
{ + (d) Expenditures of funds that are held as debt service
reserves for bonds or other borrowings if the expenditures are
made to:
(A) Pay debt service on the bonds or other borrowings;
(B) Redeem the bonds or other borrowings; or
(C) Fund an escrow or trust account to defease or pay the bonds
or other borrowings. + }
(7) Subsection (1) of this section { - shall - }
{ + does + } 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 - } { + the + } improvements is to be paid by owners
of benefited property.
(8) Subsection (1) of this section { - shall - }
{ + does + } not apply to the expenditure of funds accumulated
to pay deferred employee compensation.
(9) Subsection (1) of this section { - shall - }
{ + does + } not apply to refunds or the interest on
{ - them - } { + refunds + } granted by counties under ORS
311.806.
(10) Subsection (1) of this section { - shall - }
{ + does + } 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 - } { + is + }
lawful only after the governing body of the municipal corporation
has enacted, after public hearing, appropriate appropriation
ordinances or resolutions authorizing { - such - }
{ + the + } expenditure.
(11) Subsection (1) of this section { - shall - }
{ + does + } 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 - } { + does + } not apply to the municipal
corporation during the fiscal year immediately following the
fiscal year in which it was formed.
SECTION 15. ORS 297.405 is amended to read:
297.405. As used in ORS 297.020, 297.230, 297.405 to 297.740
and 297.990:
(1) 'Accountants' means { - and indicates - } all
accountants whose names are included in the roster prepared and
maintained by the Oregon Board of Accountancy as required by ORS
297.670.
(2) 'Accounts' means { - and includes - } all books, papers,
files, letters and records of any nature or in any form used in
conducting the affairs of the municipal corporation or in
recording the transactions thereof.
(3) 'Board' means the Oregon Board of Accountancy.
(4) 'Fiscal affairs' means and includes all activities of any
nature giving rise to or resulting from financial transactions,
including compliance with legal requirements applicable to the
operation of a municipal corporation.
(5) 'Municipal corporation' means a { - county, city,
district or other - } { + :
(a) City;
(b) County;
(c) Special district;
(d) + } Corporation { + , except a municipal corporation
established pursuant to ORS 441.525 to 441.595, + } upon which is
conferred powers of the state for the purpose of local
government { + ; + } or
{ + (e) + } { - a - } Public corporation, including a
cooperative body formed between municipal corporations { - ,
except in a city which by charter establishes a board or
commission with responsibility for operating a water and electric
utility of the city, which is governed by a board elected by the
people, both the city and the board or commission shall be
separate municipal corporations within the meaning of ORS 297.405
to 297.555 and 297.990 - } .
(6) 'Public corporation' means a corporation the operation of
which is subject to control by local government or its officers
and which, at least in part, is organized to serve a public
purpose of, and receives public funds or other support having
monetary value from, such government.
SECTION 16. { + Section 17 of this 2005 Act is added to and
made a part of ORS 297.405 to 297.740. + }
SECTION 17. { + When a city, by charter, establishes a board
or commission that is elected by the people to operate a water
utility or an electric utility of the city, the city and the
water utility or the electric utility are separate municipal
corporations for the purposes of ORS 297.405 to 297.555 and
297.990. + }
SECTION 18. 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 a question
described in ORS 305.580.
{ + (2)(a) + } For purposes of this section and a question
described in ORS 305.580 (1)(a), 'interested taxpayer' means a
person that is subject to the tax, fee, charge or assessment in
question.
{ + (b) + } 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) - } { + (3) + } 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. 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) - } { + (4)(a) + } Except as provided in
subsections { - (4) to (7) - } { + (5) to (8) + } 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) - } { + (5) + } 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) - } { + (9) + } of this section.
{ - (5) - } { + (6) + } 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) - } { + (4)(a) + } of this
section.
{ - (6) - } { + (7) + } 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) - } { + (8) + } 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) - } { + (9) + } 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) - } { + (10) + } A notice described in subsection
{ - (8) - } { + (9) + } 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.
{ - (10) - } { + (11) + } 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 not be
considered a change that may result in a proceeding commenced
under subsection { - (3) - } { + (4) + } of this section.
{ - (11) - } { + (12) + } In the case of a question
concerning the authorized uses of the proceeds of bonded
indebtedness, { + the petition must be filed within 60 days
after publication of the notice described in subsection (9)(b) of
this section or, + } if the governing body has not published the
notice described in subsection { - (8)(b) - } { + (9)(b) + }
of this section, the petition { - shall - } { + must + }be
filed within 180 days after the questioned use of the proceeds is
made.
SECTION 19. ORS 284.365 is amended to read:
284.365. (1) All moneys collected, received or appropriated to
the Oregon Film and Video Office shall be deposited in an account
established in a depository bank insured by the Federal Deposit
Insurance Corporation or the National Credit Union Share
Insurance Fund. In a manner consistent with the requirements of
ORS chapter 295, the chairperson of the Film and Video Board
shall insure that sufficient collateral secures any amount of
funds on deposit that exceeds the limits of the coverage of the
Federal Deposit Insurance Corporation or the National Credit
Union Share Insurance Fund. Subject to approval by the
chairperson, the board may invest moneys collected or received by
the office. Investments made by the board are limited to the
types of investments listed in ORS 294.035 { - (1) to (9) - }
{ + (3)(a) to (i) + }. Interest earned from any amounts
invested { - shall - } { + must + } be made available to the
office in a manner consistent with the biennial budget approved
by the board.
(2) Subject to the approval of the director of the office, all
necessary expenses of the office and the board { - shall - }
{ + must + } be paid from the moneys collected, appropriated or
earned by the office.
(3) The office shall adopt a budget on a biennial basis using
the classifications of expenditures and revenues required by ORS
291.206 (1). The budget { - shall not be - } { + is not
+ }subject to review and approval by the Legislative Assembly or
to modification by the Emergency Board or the Legislative
Assembly. However, the budget
{ - shall - } { + must + } be included in the biennial report
required by ORS 284.335 (5).
(4) The board shall adopt a budget only after holding a public
hearing on the proposed budget. At least 15 days prior to any
public hearing on the proposed budget, the board shall give
notice of the hearing to all persons known to be interested in
the proceedings of the board and to any person who requests
notice.
(5) All expenditures from the account established for the
office under subsection (1) of this section are exempt from any
state expenditure limitation. The office shall follow generally
accepted accounting principles and keep such financial and
statistical information that is necessary to completely and
accurately disclose the financial condition and financial
operations of the office as may be required by the Secretary of
State.
(6) As used in this section, 'depository bank' has the meaning
given that term in ORS 295.005.
SECTION 20. ORS 285A.274 is amended to read:
285A.274. (1) All moneys collected, received by or appropriated
to the Oregon Tourism Commission { - shall - } { + must + }
be deposited into an account established by the commission in a
depository bank insured by the Federal Deposit Insurance
Corporation. In a manner consistent with the requirements of ORS
chapter 295, the chair of the commission shall ensure that
sufficient collateral secures any amount of funds on deposit that
exceeds the limits of the Federal Deposit Insurance Corporation's
coverage.
(2) Subject to the approval of the chair, the commission may
invest moneys collected or received by the commission.
Investments made by the commission { - shall - } { + must
+ }be limited to investments described in ORS 294.035 { - (1)
to (9) - } { + (3)(a) to (i) + }.
(3) Interest earned on any moneys invested under subsection (2)
of this section { - shall - } { + must + } be made available
to the commission in a manner consistent with the biennial budget
of the commission.
(4) { + The commission shall spend + } state transient lodging
tax moneys appropriated to the commission under ORS 320.335
{ - shall be spent by the commission - } as follows:
(a) At least 80 percent { - shall - } { + must + } be used
to fund state tourism marketing programs.
(b) As much as 15 percent { - shall - } { + must + } be
used to implement a regional cooperative tourism marketing
program { - . The program shall - } { + that + }:
(A) { - Require that - } { + Requires + } fund allocations
{ + to + } focus on creating new business from out-of-state and
international markets;
(B) { - Utilize - } { + Utilizes + } a regional allocation
formula that distributes revenue to regions, the boundaries of
which are established by the commission, in proportion to the
amount of transient lodging tax revenues collected in each
region;
(C) { - Distribute - } { + Distributes + } revenue to
recipients that are selected by the commission as organizations
able to conduct tourism-related marketing for each region;
(D) { - Require that all - } { + Requires + } advertising,
publications, CD-ROMs, websites, videos and other tourism
promotion materials funded through the regional cooperative
tourism marketing program { + to + } carry the Oregon Tourism
Commission logo and marketing tag line; and
(E) { - Encourage - } { + Encourages + } funding recipients
to incorporate design elements from commission advertising and
promotional campaigns, such as fonts, images and other design
elements.
(5) All moneys in the account that are not state transient
lodging tax revenues are continuously appropriated to the
commission for the purposes of carrying out the functions of the
commission.
(6) All expenditures from the account are exempt from any state
expenditure limitation.
SECTION 21. ORS 294.040 is amended to read:
294.040. The bonds listed in ORS 294.035 { - (1) to (3) - }
{ + (3)(a) to (c) + } may be purchased only if there has been
no default in payment of either the principal of or the interest
on the obligations of the issuing county, port, school district
or city, for a period of five years next preceding the date of
the investment.
SECTION 22. ORS 294.046 is amended to read:
294.046. The State Treasurer shall prepare and keep current a
list of agencies and instrumentalities of the United States with
available obligations that any county, municipality, political
subdivision or school district may invest in under ORS 294.035
{ - (1) - } { + (3)(a) + } and 294.040. The list shall be
distributed, upon request, to any county, municipality, political
subdivision or school district.
SECTION 23. ORS 294.048 is amended to read:
294.048. When funds invested under ORS 294.035 { - (4) - }
{ + (3)(d) + } are required to meet current cash demands and
when withdrawal or liquidation of such investments at the time
would cause a loss because the investment would be withdrawn or
liquidated prior to maturity, the custodial officer may, after
receiving the approval of the governing body, borrow funds on
short-term promissory notes that shall be secured by pledging or
assigning the investments held under ORS 294.035 { - (4) - }
{ + (3)(d) + }. The notes shall mature in not more than six
months after date of issue. If a lender demands physical
possession of the certificates of deposit or other evidence of an
investment pledged or assigned under this section, the custodial
officer shall deliver the certificate or other evidence to the
lender.
SECTION 24. ORS 294.135 is amended to read:
294.135. (1) An investment made by a custodial officer under
ORS 294.035 { - (1) to (6) and (8) to (10) - } { + (3)(a) to
(f) and (h) to (j) + } or 294.125 may not exceed a maturity of 18
months or the date of anticipated use of the funds by the county,
municipality, school district or other political subdivision to
which the funds belong, whichever period is shorter. However:
(a) The custodial officer may make investments having a
maturity longer than 18 months when the governing body of the
county, municipality, school district or other political
subdivision to which the funds belong has adopted a written
investment policy that, prior to adoption, was submitted to the
Oregon Short Term Fund Board for review and comment to the
governing body, that includes guidelines concerning maximum
investment maturity dates and that provides by its terms for
readoption not less than annually; or
(b) When the funds in question are being accumulated for an
anticipated use that will occur more than 18 months after the
funds are invested, then, upon the approval of the governing body
of the county, municipality, school district or other political
subdivision, the maturity of the investment or investments made
with the funds may occur when the funds are expected to be used.
(2) The maximum term of any repurchase agreement transaction
may not exceed 90 days.
SECTION 25. ORS 441.590 is amended to read:
441.590. ORS 441.525 to 441.595 are complete authority for the
organization of authorities and for the issuance and sale of
revenue bonds and refunding revenue bonds. Any restrictions,
limitations, conditions or procedures provided by other statutes,
including but not limited to the provisions of ORS chapter 198
and ORS { - 288.320 and - } 440.305 to 440.410, do not apply
to the organization of authorities and the issuance and sale of
revenue bonds pursuant to ORS 441.525 to 441.595. However,
nothing contained in ORS 441.525 to 441.595 shall be construed as
a restriction or limitation upon any powers which an authority
might otherwise have under any law of this state or the charter
of any municipality.
SECTION 26. ORS 468.272 is amended to read:
468.272. Any restrictions, limitations, conditions or
procedures provided by other statutes relating to the issuance
and sale of bonds or other obligations { - including, but not
limited to, any restrictions, limitations, conditions or
procedures set forth in ORS 288.320, - } do not apply to the
issuance and sale of bonds authorized by ORS 468.263 to 468.272.
SECTION 27. ORS 777.590 is amended to read:
777.590. (1) ORS 777.560 to 777.590 are complete authority for
the issuance and sale of revenue bonds and refunding revenue
bonds. Any restrictions, limitations, conditions or procedure
provided by other statutes relating to issuance and sale of bonds
or other obligations { - including, but not limited to, any
restrictions, limitations, conditions or procedures set forth in
ORS 288.320, - } do not apply to the issuance and sale of
revenue bonds and refunding revenue bonds under ORS 777.560 to
777.590.
(2) The lease of any property of the port and the pledging of
revenues therefrom to the payment of the costs and expenses
enumerated by ORS 777.560, and to the payment of principal and
interest on bonds issued and sold under ORS 777.560 to 777.590,
shall be considered to further the public interest within the
meaning of ORS 271.310.
SECTION 28. ORS 294.483 is amended to read:
294.483. (1) A municipal corporation that has outstanding
limited { - general obligation - } { + tax + } bonds { + , as
defined in ORS 288.150, + } that were issued pursuant to ORS
287.049 shall budget and appropriate, subject to any applicable
covenants or agreements
{ - which - } { + that + } 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 - } { + the + } 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 - }
{ + the + } bonds are authorized and issued.
(2) A municipal corporation { - shall not be - } { + is
not + } 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 referral period described
in ORS 288.815 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 - }
{ + the + } assessments or other revenues, when { - such - }
{ + the + } assessments or other revenues are received as a
result of prepayments or other unforeseen circumstances.
SECTION 29. ORS 310.651 is amended to read:
310.651. For purposes of ORS 310.652:
(1) 'Evidence of debt' means all bonds, notes, demands, claims,
deposits or investments however evidenced and whether secured by
mortgage, deed of trust, judgment or otherwise or not so secured,
and includes but is not limited to:
(a) Personal and business notes receivable.
(b) Mortgage notes receivable.
(c) Commercial paper.
(d) Conditional sales contracts (written agreements whereby
title to the property remains with the seller until the goods are
paid for).
(e) Notes and other receivables, evidenced by written
agreement, due from affiliated companies.
(f) { - Participation - } Certificates { + of
participation + }.
(g) Bonds and debentures of both domestic and foreign
corporations.
(h) Bonds and evidence of debt of other states and their
political subdivisions.
(i) Bonds, debentures and capital notes (not certificates of
deposit) issued by banks and other organizations in direct
competition with banks.
(j) Cashiers' checks, treasurers' checks, certified checks,
purchase drafts and similar instruments drawn for the benefit or
convenience of any party or parties other than banks.
(k) Investment contracts and accumulation plans issued by
investment syndicates, investment brokers and other similar
companies.
(L) Loans, advances, demands, claims and other receivables
which are evidenced by written agreement.
(2) 'Funds on deposit' means all funds accrued or accruing by
virtue of the death of the insured or the original maturity of a
policy contract where the party or parties entitled to receive
such funds might withdraw same at their option upon stipulated
notice.
(3) 'Money on deposit' means money, whether actually within or
without this state, having a business, commercial or taxable
situs in this state, without deduction for any indebtedness or
liabilities of the taxpayer, and includes but is not limited to:
(a) Amounts in checking and savings accounts.
(b) Certificates of deposit.
(c) Payroll and escrow accounts.
(d) Deposits as of any one or more of the four quarterly
valuation dates.
(e) Deposits of trustees, executors, administrators and other
fiduciaries.
(f) Social Security and withholding tax accounts.
(g) Accommodation loan accounts.
(h) Deposits of savings and loan or building and loan
associations.
(i) Deposits of insurance companies.
(4) 'Money on hand' includes but is not limited to:
(a) Currency and bills of exchange.
(b) Money in cash registers.
(c) Petty cash.
(d) Deposits in transit.
(e) Money in safe deposit boxes.
(5) 'Shares of stock' includes but is not limited to:
(a) Capital stock, common stock and preferred stock of both
domestic and foreign corporations.
(b) Shares of stock held in brokerage accounts, including
shares purchased on margin.
(c) Unregistered stock, restricted stock, letter stock and
stocks owned in 'closed' corporations.
(d) Shares in mutual funds and investment trusts.
(e) Shares of stock in banks (including national banks).
(f) Shares of stock in holding companies, including financial
holding companies, bank holding companies and insurance holding
companies.
(g) Stocks held by trustees or guardians which should be
reported under the names of the beneficiary.
(h) Stocks held by executors or administrators of estates which
should be reported in the name of the estate.
(i) Stocks owned by minor children which should be reported
under the minor's name, in care of the parent or guardian.
(j) Stocks owned by investment clubs which should be reported
in the name of the investment club.
(k) Stocks acquired by purchase, gift, inheritance or any other
means, even if the stock certificates have not been received and
are not in the taxpayer's possession as of the asset
determination date.
(L) Shares of stock owned by or registered to residents of this
state even though the stock certificates may be physically
located in another state.
SECTION 30. ORS 478.390 is amended to read:
478.390. In addition to the investments authorized by ORS
294.035, the board of directors of a rural fire protection
district organized under ORS chapter 478 may invest or cause to
be invested any surplus funds of the district in contracts
described in ORS 294.035 { - (6) - } { + (3)(f) + } for the
purpose of funding length of service awards for the volunteer
firefighters of the district.
SECTION 31. { + ORS 288.310 and 288.320 are repealed. + }
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