Chapter 767
AN ACT
HB 2199
Relating to bonds issued under Article XI-F(1)
of the Oregon Constitution; creating new provisions; amending ORS 351.460; and
declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1. Section 2 of this 2007 Act is added to and
made a part of ORS chapter 351.
SECTION 2. (1) As used in this section:
(a) “Bond” means a bond
issued under Article XI-F(1) of the
(b) “Credit enhancement
device” means a letter of credit, line of credit, bond insurance policy,
standby purchase agreement, surety bond or other device or facility used to
enhance the creditworthiness, liquidity or marketability of a bond.
(c) “Financial agreement”
means an agreement for exchange of interest rates, as defined in ORS 287.025, a
credit enhancement device or an agreement made in connection with a credit
enhancement device, that is executed for one or more bonds.
(2) The State of
(a) Enter into financial
agreements.
(b) Identify, segregate,
pledge and agree to pay amounts due under financial agreements entered into
under this section from:
(A) The revenues, gifts,
grants or building fees that are described in section 2, Article XI-F(1) of the
Oregon Constitution; or
(B) The unexpended
proceeds of the bonds for which financial agreements are executed.
(c) To the extent
permitted by Article XI-F(1) of the
SECTION 3. ORS 351.460 is amended to read:
351.460. (1) The State
Board of Higher Education shall maintain with the State Treasurer[,] a Higher Education Bond Sinking Fund,
separate and distinct from the General Fund. The Higher Education Bond Sinking
Fund shall comprise [three] four
separate subfunds to provide for the payment of the principal of and the
interest upon the bonds issued under authority of Article XI-F(1)
of the Oregon Constitution and ORS 351.350, under authority of Article XI-G of
the Oregon Constitution and ORS 351.345, [and]
revenue bonds issued under authority of ORS 288.855, and amounts due under
financial agreements entered into under section 2 of this 2007 Act. The
moneys in the sinking fund are continuously appropriated to the board for such
purposes. The fund may be invested by the State Treasurer, and the earnings
from such investments shall be credited to the appropriate subfunds of the
fund.
(2) The Higher Education
Bond Sinking Fund shall consist of all moneys received from ad valorem taxes
levied pursuant to ORS 291.445, all moneys that the Legislative Assembly may
provide in lieu of such taxes, all of the net revenues received from the
projects or undertakings for the financing of which the bonds were issued,
including gifts, grants and building fees, such unpledged revenues of buildings
and projects of like character as shall be allocated by the board, all moneys
received as accrued interest upon bonds sold, all earnings from investments of
the fund, all [and the]
proceeds of the sale of refunding bonds and all moneys that the State of
Oregon has agreed to hold in the Higher Education Bond Sinking Fund to pay
amounts due under financial agreements entered into under section 2 of this
2007 Act. Moneys credited to the Higher Education Bond Sinking Fund shall
be credited to the appropriate subfunds of the fund.
(3) The board may credit
the Higher Education Bond Sinking Fund with moneys received from either a sale
or interfund transfer of land, buildings and facilities. When the land,
buildings or facilities are sold, or the use thereof is rededicated so that a
transfer from one subfund to the other is appropriate, the moneys received
shall be credited to the appropriate subfund.
(4) The board shall
apply student building fees, revenues, gifts and grants for the payment of the
principal of and the interest upon the bonds issued under authority of Article
XI-F(1) of the Oregon Constitution and ORS 351.350 and under authority of ORS
288.855 until such time as the proper subfund of the sinking fund and
investments thereof, as supplemented by expected future income will, in the
judgment of the board, be sufficient to meet in full the principal of and the
interest upon all such outstanding bonds. Except for student building fees,
income not thus required for the sinking fund shall be transferred to such
other fund and account as the board shall designate. Student building fees for
buildings constructed from the proceeds of bonds issued under Article XI-F(1)
of the Oregon Constitution or ORS 288.855 shall be applied only to those
projects authorized under Article XI-F(1) of the Oregon Constitution or ORS
288.855.
(5) The board may
create a subfund in the Higher Education Bond Sinking Fund to pay amounts due
under financial agreements entered into under section 2 of this 2007 Act and
may credit to that subfund any moneys that the State of Oregon is obligated to
use to pay those amounts due.
[(5)(a)] (6)(a) The board may not
use the sinking fund for any purpose other than the purposes for which the fund
was created.
(b) Notwithstanding
paragraph (a) of this subsection, the board may transfer any surplus in the
sinking fund to other funds designated by the board if a balance remains in the
sinking fund from sources other than student building fees for buildings
constructed from the proceeds of bonds issued under Article XI-F(1) of the
Oregon Constitution and:
(A) The purposes for
which the fund was created have been fulfilled; or
(B) A reserve sufficient
to meet all existing and future obligations and liabilities of the fund has
been set aside.
SECTION 4. This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2007 Act takes effect July 1, 2007.
Approved by the Governor July 16, 2007
Filed in the office of Secretary of State July 17, 2007
Effective date July 16, 2007
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