75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1196
Senate Bill 600
Sponsored by Senator METSGER (at the request of State Treasurer
Ben Westlund)
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.
Permits credit union depositories to act as depositories for
public funds on basis similar to that of bank depositories.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to public funds; creating new provisions; amending ORS
295.001, 295.002, 295.004, 295.006, 295.008, 295.013, 295.015,
295.018, 295.031, 295.034, 295.041, 295.046, 295.048, 295.053,
295.061, 295.071, 295.073, 295.081, 295.084, 295.091, 295.106,
295.108, 295.205, 576.375 and 711.410; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 295.001 is amended to read:
295.001. As used in ORS 295.001 to 295.108, unless the context
requires otherwise:
(1) 'Adequately capitalized' means a bank depository { + or
credit union depository + } that is classified as adequately
capitalized by { - its - } { + the depository's + } primary
federal regulatory authority.
(2) 'Bank depository' means an insured institution or trust
company that:
(a) Maintains a head office or branch in this state in the
capacity of an insured institution or trust company; and
(b) Complies with ORS 295.008.
(3) 'Business day' means { - any - } { + a + } day other
than a federal or State of Oregon legal holiday or a day { +
other than a day + } on which offices of the State of Oregon are
otherwise authorized by law to remain closed.
(4) 'Credit union depository' means a credit union as defined
in ORS 723.006 or a federal credit union if:
(a) The shares and deposits of the credit union or federal
credit union are insured by the National Credit Union Share
Insurance Fund; and
(b) The credit union or federal credit union maintains a head
office or branch in this state in the capacity of a credit union
or federal credit union.
(5) { - ' Custodian bank' or - } 'Custodian' means one of
the following institutions designated by { - the - } { +
a + } bank depository { + or credit union depository + } for
{ - its - } { + the depository's + } own account:
(a) The Federal Home Loan Bank designated to serve this state,
or any branch of { - that bank - } { + the Federal Home Loan
Bank + }; or
(b) { - Any - } { + An + } insured institution { + , + }
{ - or - } trust company { + or credit union + } that:
(A) Is authorized to accept deposits or transact trust business
in this state;
(B) Complies with ORS 295.008; and
(C) Has been approved by the State Treasurer to serve as a
custodian { - bank - } , if the State Treasurer has approved
custodians under ORS 295.008.
(6) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian { - bank - } describing the securities
deposited with { - it - } { + the custodian + }by a bank
depository { + or credit union depository + } to secure public
fund deposits.
(7) 'Depository' means a bank depository or a credit union
depository.
(8) 'Financial institution outside this state' means a
financial institution, as defined in ORS 706.008, that is not an
extranational institution, as defined in ORS 706.008, and is not
a bank depository or credit union depository, as defined in this
section.
(9) 'Insured institution' means an insured institution as
defined in ORS 706.008.
(10) 'Loss' means the issuance of an order by a regulatory or
supervisory authority or a court of competent jurisdiction:
(a) Restraining a bank depository { + or credit union
depository + } from making payments of deposit liabilities; or
(b) Appointing a receiver for a public depository.
(11) 'Maximum liability' of a bank depository { + or credit
union depository + } on any given date means a sum equal to:
(a) For a well capitalized { - bank - } depository, 10
percent of the greater of:
(A) All public funds held by the { - bank - } depository, as
shown on the most recent treasurer report;
(B) The average of the balances of public funds held by the
{ - bank - } depository, as shown on the last four immediately
preceding treasurer reports; or
(C) An amount otherwise prescribed in ORS 295.001 to 295.108.
(b) For an adequately capitalized { - bank - } depository,
25 percent of the greater of:
(A) All public funds held by the { - bank - } depository, as
shown on the most recent treasurer report;
(B) The average of the balances of public funds held by the
{ - bank - } depository, as shown on the last four immediately
preceding treasurer reports; or
(C) An amount otherwise prescribed in ORS 295.001 to 295.108.
(c) For an undercapitalized { - bank - } depository, 110
percent of the greater of:
(A) All public funds held by the { - bank - } depository; or
(B) The average of the balances of public funds held by the
{ - bank - } depository, as shown on the last four immediately
preceding treasurer reports.
(12) 'Net worth' of a bank depository { + or credit union
depository + } means:
(a) The equity capital of the { - bank - } depository, as
shown on the immediately preceding report of condition and
income, and may include capital notes and debentures that are
subordinate to the interests of depositors; or
(b) An amount of equity capital designated by the State
Treasurer.
(13) 'Pledge agreement' means a written agreement among an
insured institution { + , + } { - or - } trust company { + or
credit union + }, the State Treasurer and a custodian that
pledges the securities deposited by the insured
institution { + , + } { - or - } trust company { + or credit
union + } with the custodian as collateral for deposits of public
funds held by the insured institution { + , + } { - or - }
trust company { + or credit union + }. The agreement must be
approved by the board of directors or loan committee of the
insured institution { + , + } { - or - } trust company { + or
credit union + } and must be continuously maintained as a written
record of the insured institution { + , + } { - or - } trust
company { + or credit union + }.
(14) 'Public funds' or 'funds' means funds under the control or
in the custody of a public official by virtue of office.
(15) 'Public official' means { - each - } { + an + }
officer or employee of this state or { - any - } { + an + }
agency, political subdivision or public or municipal corporation
{ - thereof - } { + of this state + }, or { - any - } { +
a + } housing authority, { - who - } { + that + } by law is
{ - made - } the custodian of or has control of { - any - }
public funds.
(16) 'Report of condition and income' means the quarterly
report submitted to a bank depository's { + or credit union
depository's + } primary federal regulatory authority.
(17) 'Security' or 'securities' means:
(a) Obligations of the United States, including those of
{ - its - } { + the + } agencies and instrumentalities and
{ - of - } government sponsored enterprises { + of the United
States + };
(b) Obligations of the International Bank for Reconstruction
and Development;
(c) Bonds of { - any - } { + a + } state of the United
States:
(A) That are rated in one of the four highest grades by a
recognized investment service organization that has been engaged
regularly and continuously for a period of not less than 10 years
in rating state and municipal bonds; or
(B) Having once been { - so - } rated { + in accordance
with subparagraph (A) of this paragraph + } are ruled to be
eligible securities for the purposes of ORS 295.001 to 295.108,
notwithstanding the loss of { - such - } { + the + } rating;
(d) Bonds of { - any - } { + a + } county, city, school
district, port district or other public body in the United States
payable from or secured by ad valorem taxes and that meet the
rating requirement or are ruled to be eligible securities as
provided in paragraph (c) of this subsection;
(e) Bonds of { - any - } { + a + } county, city, school
district, port district or other public body issued pursuant to
the Constitution or statutes of the State of Oregon or the
charter or ordinances of
{ - any - } { + a + } county or city within the State of
Oregon, if the issuing { + public + } body has not been in
default with respect to the payment of principal or interest on
any of { - its - } { + the public body's + } bonds within the
preceding 10 years or during the period of { - its - } { +
the public body's + } existence if { - that is less - } { +
the public body has existed for fewer + } than 10 years;
(f) With the permission of the State Treasurer and in
accordance with rules adopted by the State Treasurer, loans made
to { - any - } { + a + } county, city, school district, port
district or other public body in the State of Oregon, if the
borrower has not been in default with respect to the payment of
principal or interest on any of { - its - } { + the
borrower's + } loans within the preceding 10 years or during the
period of { - its - } { + the borrower's + } existence if
that is less than 10 years;
(g) With the permission of the State Treasurer and in
accordance with rules adopted by the State Treasurer, bond
anticipation notes issued, sold or assumed by an authority under
ORS 441.560;
(h) Bonds, notes, letters of credit or other securities or
evidence of indebtedness constituting the direct and general
obligation of a federal home loan bank or Federal Reserve bank;
(i) Debt obligations of domestic corporations that are rated in
one of the three highest grades by a recognized investment
service organization that has been engaged regularly and
continuously for a period of not less than 10 years in rating
corporate debt obligations; and
(j) Collateralized mortgage obligations and real estate
mortgage investment conduits that are rated in one of the two
highest grades by a recognized investment service organization
that has been engaged regularly and continuously for a period of
not less than 10 years in rating corporate debt obligations.
(18) 'Treasurer report' means a written report signed or
authenticated by an officer of a bank depository { + or credit
union depository + } setting forth as of the close of business on
a specified date:
(a) The total amount of public funds on deposit with the
{ - bank - } depository;
(b) The net worth of the { - bank - } depository;
(c) The amount and nature of eligible collateral then on
deposit with { - its - } { + the depository's + } custodian
to collateralize the
{ - bank - } depository's public funds deposits; and
(d) The identity of { - its - } { + the depository's + }
custodian.
(19) 'Treasurer report due date' means a date not less than 10
business days after the date a bank depository's { + or credit
union depository's + } report of condition and income is due to
be submitted to { - its - } { + the depository's + } federal
regulatory authority.
(20) 'Trust company' means a trust company as defined in ORS
706.008.
(21) 'Undercapitalized' means a bank depository { + or credit
union depository + } that is classified as undercapitalized by
{ - its - } { + the depository's + } primary federal
regulatory authority.
(22) 'Value' means the current market value of securities.
(23) 'Well capitalized' means a bank depository { + or credit
union depository + } that is classified as well capitalized by
{ - its - } { + the depository's + } primary federal
regulatory authority.
SECTION 2. ORS 295.002 is amended to read:
295.002. (1) { - Any - } { + A + } public official may
retain undeposited such reasonable cash working fund as is fixed
by the governing body of the political subdivision or public
corporation for which the public official acts. Except to the
extent of { - such - } { + the + } cash working fund,
{ - each - } { + a + } public official shall deposit public
funds in the { + public official's + } custody or control
{ - of the public official - } in one or more depositories
currently qualified pursuant to ORS 295.001 to 295.108. { - The
public official may not have on deposit in any one credit union
depository an aggregate sum in excess of the deposit insurance
limits established by the National Credit Union
Administration. - } With respect to bank depositories { + and
credit union depositories + }, unless { - a bank - } { +
the + } depository has entered into the agreement described in
ORS 295.008 (2)(b) and has deposited securities pursuant to ORS
295.015 (1), the public official { - shall - } { + may + }
not have on deposit in any one { - bank - } depository and
{ - its - } branches { + of the depository + } a sum in excess
of:
(a) The amount insured by the Federal Deposit Insurance
Corporation { + or the National Credit Union Share Insurance
Fund + }; or
(b) For any amount over the amount insured by the Federal
Deposit Insurance Corporation { + or the National Credit Union
Share Insurance Fund + }, the amount insured or guaranteed by
private deposit insurance or a deposit guaranty bond issued by an
insurance company rated A- or better by a recognized insurance
rating service.
(2) Compliance with ORS 295.001 to 295.108 relieves the public
official of personal liability on account of the loss of the
public funds in the custody or control of the public official.
SECTION 3. ORS 295.004 is amended to read:
295.004. (1) A public official may deposit public funds in a
bank depository { + or credit union depository + } in an amount
in excess of the amount allowed in ORS 295.002 without requiring
the { - bank - } depository to show that { - it - } { + the
depository + } has entered into the agreement described in ORS
295.008 (2)(b) or deposited securities pursuant to ORS 295.015
(1) if the funds are initially deposited into a { - bank - }
depository in Oregon and the Oregon { - bank - } depository
participates in a program through which:
(a) The Oregon { - bank - } depository arranges for deposit
of the funds into one or more certificates of deposit or time
deposits issued by other financial institutions in the United
States;
(b) Each certificate of deposit or time deposit is fully
insured by the Federal Deposit Insurance Corporation { + or the
National Credit Union Share Insurance Fund + };
(c) The Oregon { - bank - } depository administers the funds
on behalf of the public official; and
(d) Other financial institutions participating in the program
place funds into the Oregon depository in an amount at least
equal to the amount deposited into the Oregon { - bank - }
depository by the public official for purposes of the program.
(2) Until the Oregon bank depository { + or credit union
depository + } places public funds into one or more certificates
of deposit or time deposits as provided in subsection (1) of this
section, { - any - } public funds { - held by - }
{ + that + } the Oregon { - bank - } depository { + holds + }
pending { - such - } placement that { - are in excess of - }
{ + exceed + } the amounts allowed in ORS 295.002 must be
collateralized as provided in ORS 295.001 to 295.108 for
other { + deposits of + } public funds { - deposits - } .
(3) The provisions of ORS 295.006, 295.013, 295.015, 295.018
and 295.037 { + and section 12 of this 2009 Act + } do not apply
to { + deposits of + } public funds { - deposits - } { +
that are + } deposited into a bank depository { + or credit
union depository + } in Oregon that the { - bank - } depository
arranges for under the provisions of the program described in
this section. The provisions of ORS 294.035 and 295.001 requiring
deposit of public funds into depositories that have offices or
branches in Oregon do not apply to certificates of deposit or
time deposits that an Oregon { - bank - } depository arranges
for under the provisions of the program described in this
section.
SECTION 4. ORS 295.006 is amended to read:
295.006. (1) { - Each - } { + A + } bank depository { +
and a credit union depository + } shall keep on file with the
State Treasurer the name and address of { - its - } { + the
depository's + } custodian { - bank - } .
(2) { - Each - } { + A + } public official shall keep on
file with the State Treasurer the { - names, addresses and such
other information as - } { + name and address of each bank
depository and credit union depository in which the public
official deposits funds, along with any other information + } the
State Treasurer { - shall prescribe - } { + may require + }
by rule { - of each depository in which the public official
deposits public funds - } .
SECTION 5. ORS 295.008 is amended to read:
295.008. (1)(a) An insured institution { + , + } { - or - }
trust company { + or credit union + } may not be a custodian
{ - bank - } under ORS 295.001 to 295.108, unless { - it - }
{ + the insured institution, trust company or credit union + }
certifies in writing to the State Treasurer that { - it - }
{ + the insured institution, trust company or credit union + }
will furnish the reports required under ORS 714.075 to the
Director of the Department of Consumer and Business Services.
(b) The State Treasurer may approve one or more insured
institutions { + , + } { - or - } trust companies { + or
credit unions + } to serve as custodians for bank
depositories { + or credit union depositories + }. The State
Treasurer shall promptly notify all { - bank - } depositories
of the approval of an insured institution { + , + } { - or - }
trust company { + or credit union + } to serve as a custodian.
(2) An insured institution { + , + } { - or - } trust
company { + or credit union + } may not be a { - bank - }
depository under ORS 295.001 to 295.108, unless { - it - }
{ + the insured institution, trust company or credit union + }:
(a) Certifies in writing to the State Treasurer that
{ - it - } { + the insured institution, trust company or
credit union + } will furnish the reports required under ORS
714.075 to the Director of the Department of Consumer and
Business Services;
(b) Except as provided in subsection (4) of this section,
enters into a pledge agreement; and
(c) Complies with subsection (3) of this section.
(3) After July 1, 2008, { - any - } { + an + } insured
institution { + , + } { - or - } trust company { + or credit
union + } that is not acting as a bank depository { + or credit
union depository + } on July 1, 2008, and that wishes to become a
{ - bank - } depository shall file with the State Treasurer an
initial written report signed or authenticated by an officer of
the insured institution { + , + } { - or - } trust
company { + or credit union + }setting forth, as of the date
the insured institution { + , + } { - or - } trust company { +
or credit union + } intends to commence acting as a
{ - bank - } depository:
(a) The estimated total amount of public funds that will be on
deposit with the insured institution { + , + } { - or - }
trust company { + or credit union + };
(b) The estimated net worth of the insured
institution { + , + } { - or - } trust company { + or credit
union + };
(c) The amount and nature of the collateral that will be
deposited with { - its - } { + the + } custodian { + of the
insured institution, trust company or credit union + } to
collateralize the public funds deposits; and
(d) The identity of { - its - } { + the + } custodian { +
of the insured institution, trust company or credit union + }.
(4) An insured institution { + , + } { - or - } trust
company { + or credit union + } may be a bank depository { + or
credit union depository + } under ORS 295.001 to 295.108 without
entering into a pledge agreement or complying with subsection (3)
of this section if the insured institution { + , + } { - or - }
trust company { + or credit union + } does not hold
{ - any - } funds on deposit for a public official that exceed
the limits specified in ORS 295.002 for that type of depository.
The provisions of ORS 295.006, 295.013, 295.015, 295.018, 295.037
and 295.061 { + and section 12 of this 2009 Act + } do not apply
to an insured institution { + , + } { - or - } trust
company { + or credit union + } that is a { - bank - }
depository under this subsection.
SECTION 6. ORS 295.013 is amended to read:
295.013. (1) Upon receipt of securities from { - the - }
{ + a + } bank depository { + or credit union depository + },
{ - the - } { + a + } custodian { - bank - } shall issue to
the State Treasurer, with a copy to the { - bank - }
depository, a custodian's receipt describing the securities.
(2) { - Each - } { + A + } custodian shall:
(a) Maintain an accurate inventory of the securities of each
bank depository { + or credit union depository + } described in
the
{ - custodian's - } receipts { - issued by - } the
custodian { + issues + } to the State Treasurer, and adjust the
inventory to reflect withdrawals and substitutions of securities
previously inventoried.
(b) Appraise the value of the securities added to and withdrawn
from the { + depository's + } inventory { - of the bank
depository, and appraise - } { + and + } the value of the { +
depository's + } entire inventory
{ - of the bank depository - } on the last day of each month
and at such other times as the State Treasurer directs.
(c) Provide a monthly report to the State Treasurer
{ - listing - } { + that lists + } the securities
{ - pledged by each bank - } { + the + } depository { +
pledged + } and { - setting - } { + sets + } forth the value
of each security and of the entire inventory of securities
{ - pledged by - } the { - bank - } depository { +
pledged + }.
(d) Notify a { - bank - } depository in writing whenever the
value of the securities { - held by - } the custodian { +
holds + } for the { - bank - } depository is less than:
(A) For a { - bank - } depository that is subject to
increased collateral requirements under ORS 295.018, 110 percent
of the greater of:
(i) All public funds { - held by - } the { - bank - }
depository { + holds + }; or
(ii) The average of the balances of public funds { - held
by - } the { - bank - } depository { + holds + }, as shown on
the last four immediately preceding treasurer reports; or
(B) For a { - bank - } depository that is not subject to
increased collateral requirements under ORS 295.018, the maximum
liability for the { - bank - } depository.
(e) Notify the State Treasurer in writing if a { - bank - }
depository fails to increase the value of { - its - } { + the
depository's + } securities within five business days after
{ - receipt of - } { + receiving + } notice under paragraph
(d) of this subsection.
(f) Notify the State Treasurer in writing if a { - bank - }
depository increases the value of { - its - } { + the
depository's + } securities to an adequate amount after
{ - receipt of - } { + receiving + } notice under paragraph
(d) of this subsection.
(g) Notify the State Treasurer whenever a bond in { - the
inventory of a bank depository - } { + a depository's
inventory + } no longer meets the rating requirements described
in ORS 295.001 (17)(c) or (d).
SECTION 7. ORS 295.015 is amended to read:
295.015. Except as provided in ORS 295.018:
(1)(a) { - Each - } { + A + } bank depository { + or
credit union depository + } throughout the period { - of its
possession of public fund - } { + during which the depository
possesses + } deposits { + of public funds + } in excess of the
amounts insured or guaranteed as described in ORS 295.002 (1)(a)
and (b) shall maintain on deposit with { - its - } { + the
depository's + } custodian, at { - its - } { + the
depository's + } own expense, securities having a value at least
equal to { - its - } { + the depository's + } maximum
liability and as otherwise prescribed in ORS 295.001 to 295.108.
{ - Such - } { + The depository shall deposit the + }
collateral { - shall be deposited - } with the { - bank - }
depository's custodian and shall { - be clearly designated - }
{ + clearly designate the collateral + } as security for the
benefit of depositors of public funds under ORS 295.001 to
295.108.
(b) For purposes of this section, when pledged as collateral
for { + deposits of + } public funds { - deposits - } , loans
described in ORS 295.001 (17)(f) shall be discounted to 75
percent of the unpaid principal balance owing on the loan from
time to time, or to a lower value determined by the State
Treasurer from time to time.
(c) { - When - } { + If + } a bond anticipation note is
pledged as collateral for { + deposits of + } public funds
{ - deposits, - } { + and + } if there is no readily
determinable market value for the note, { - it - } { + the
note + } shall be discounted to 75 percent of the unpaid
principal balance owing on the note from time to time, or to a
lower value determined by the State Treasurer from time to time.
(2) The bank depository { + or credit union depository + } may
deposit other eligible securities with { - its - } { + the
depository's + } custodian and withdraw from deposit securities
{ - theretofore - } { + earlier + } pledged to secure deposits
of public funds, if the remaining securities have a value not
less than { - its - } { + the depository's + }maximum
liability. The State Treasurer shall execute such releases and
surrender such custodian's receipts as are appropriate to effect
substitutions and withdrawals of matured and excess pledged
securities.
(3) If a bank depository's { + or credit union
depository's + } maximum liability increases because { - it - }
{ + the depository + } ceases to be a well capitalized
{ - bank - } depository or because { - it - } { + the
depository + } ceases to be an adequately capitalized
{ - bank - } depository, within five business days after the
date on which the
{ - bank - } depository's maximum liability increases, the
{ - bank - } depository shall:
(a) Notify { - its - } { + the depository's + } custodian
and the State Treasurer in writing that the { - bank - }
depository's maximum liability has increased, setting forth the
{ - bank - } depository's new maximum liability; and
(b) Tender to { - its - } { + the depository's + }
custodian additional securities having sufficient value to
increase the total value of
{ - its - } { + the depository's + } securities pledged as
collateral for public funds deposits to the new maximum liability
of the { - bank - } depository.
(4) If a bank depository's { + or credit union
depository's + } maximum liability decreases because { - it - }
{ + the depository + } moves from being an undercapitalized
{ - bank - } depository to being a well capitalized
{ - bank - } depository or an adequately capitalized
{ - bank - } depository, or because { - it - } { + the
depository + } moves from being an adequately capitalized
{ - bank - } depository to a well capitalized
{ - bank - } depository, the { - bank - } depository may:
(a) Notify { - its - } { + the depository's + } custodian
and the State Treasurer in writing that the { - bank - }
depository's maximum liability has decreased, setting forth the
{ - bank - } depository's new maximum liability; and
(b) With the written approval of the State Treasurer, withdraw
from { - its - } { + the depository's + } custodian any
securities that exceed the { - bank - } depository's new
maximum liability.
(5) The State Treasurer shall act upon requests for releases
and withdrawals of securities under subsections (2) and (4)(b) of
this section within three business days after { - the receipt
of - } { + receiving + } each request.
SECTION 8. ORS 295.018 is amended to read:
295.018. (1) The State Treasurer may require { - any - }
{ + a + } bank depository { + or credit union depository + }
during any period when { - it - } { + the depository + }
{ - has in its possession public fund - } { + possesses + }
deposits { + of public funds + } to maintain on deposit with
{ - its - } { + the depository's + } custodians securities
{ - having - } { + that have + } a value not less than 110
percent of the greater of:
(a) All public funds held by the { - bank - } depository; or
(b) The average of the balances of public funds held by the
{ - bank - } depository, as shown on the last four immediately
preceding treasurer reports.
(2) { + The State Treasurer shall order + } an increase in
collateral under subsection (1) of this section { - shall be
ordered upon the advice of - } { + if + } the Director of the
Department of Consumer and Business Services { + so advises + }.
If the { - bank - } depository is a national bank or a
federally chartered savings bank { + , + } { - or - } savings
and loan association { + or federal credit union + }, in giving
advice to the State Treasurer the director may rely exclusively
on information provided to the director by federal regulatory
agencies and by the { + bank, + } association { + or federal
credit union + } on forms prescribed by the director. As a
condition of being analyzed and reviewed by the director, a
{ - federal association - } { + bank, association or federal
credit union + } shall agree and consent to provide the director
with accurate, pertinent and timely information.
(3) { - Failure of the director - } { + The director's
failing + } to inform the State Treasurer of the condition of
{ - any - } { + a + } bank depository { + or credit union
depository + } does not give { - any - } { + a + } public
depositor any right or impose { - any - } liability on the
director. The State Treasurer { - shall not be - } { + is
not + } liable to { - any - } { + a + } public depositor or
to { - any bank - } { + a + } depository for increasing or
not increasing the collateral requirement as authorized in
subsection (1) of this section.
(4) { - Any - } { + A + } bank depository { + or credit
union depository + } notified by the State Treasurer of the
increased collateral requirement shall comply with the order
within five business days by increasing the collateral in the
same manner as required for the initial deposit of collateral in
ORS 295.015 and, within the same five days, shall notify the
State Treasurer of { - its - } { + the depository's + }
compliance by supplying copies of the custodian's receipts for,
or statement of activity showing, the increased collateral.
(5)(a) If the State Treasurer does not receive the notice
required in subsection (4) of this section within the required
five business days, the State Treasurer shall immediately notify
the director of the failure and shall send notice to all public
officials served by { - that - } { + the + } bank
depository { + or credit union depository + } of { - its - }
{ + the depository's + } failure to comply.
(b) If, after giving notice as required by paragraph (a) of
this subsection, the State Treasurer receives notice that the
{ - bank - } depository is in compliance with the increased
collateral requirements, the treasurer shall notify the public
officials served by the { - bank - } depository that the
{ - bank - } depository is once again in compliance.
(6) A bank depository { + or credit union depository + } that
does not comply with subsection (4) of this section
{ - shall - } { + may not + } accept { - no - }
further { + deposits of + } public funds { - deposits - }
that are not insured by the Federal Deposit Insurance
Corporation { + or the National Credit Union Share Insurance
Fund + }.
(7) The names of financial institutions contained in records
received or compiled by the State Treasurer pursuant to the
provisions of this section { - shall be - } { + are + }
exempt from public disclosure unless the public interest requires
disclosure in the particular instance.
SECTION 9. ORS 295.031 is amended to read:
295.031. (1) Within five business days after the State
Treasurer receives notice from a custodian pursuant to ORS
295.013 (2)(e) indicating that a bank depository { + or credit
union depository + } has failed to pledge adequate collateral
with { - its - } { + the depository's + } custodian, the
treasurer shall send written notice of the failure to each public
official who has public funds on deposit in the { - bank - }
depository with respect to which the notice under ORS 295.013
(2)(e) was given.
(2) Within five business days after the State Treasurer
receives notice from a custodian pursuant to ORS 295.013 (2)(f)
indicating that a bank depository { + or credit union
depository + } has once again pledged adequate collateral with
{ - its - } { + the depository's + } custodian, the treasurer
shall send written notice to each public official who
{ - was - } { + the treasurer + } notified under subsection
(1) of this section stating that the { - bank - } depository
once again has adequate collateral.
SECTION 10. ORS 295.034 is amended to read:
295.034. (1) Within 20 business days after a public official
receives a notice from the State Treasurer pursuant to ORS
295.018 (5)(a) or 295.031 (1), the public official shall withdraw
from the bank depository { + or credit union depository + } to
which the notice applies all { + deposits of + } public funds
{ - deposits - } except those deposits that are insured by the
Federal Deposit Insurance Corporation { + or the National Credit
Union Share Insurance Fund + }.
(2) If a public official receives a notice from the State
Treasurer pursuant to ORS 295.018 (5)(a) or 295.031 (1),
beginning 20 business days after the public official receives the
notice, the public official may not deposit into the bank
depository { + or credit union depository + } to which the
notice applies any public funds deposits if, as a result of
{ - such a - } { + the + } deposit, the total public funds
{ - of - } the public official { + has + } on deposit with the
{ - bank - } depository exceed the deposit insurance limit of
the Federal Deposit Insurance Corporation { + or the National
Credit Union Share Insurance Fund + }. The prohibition on
deposits continues until the public official receives notice
under ORS 295.018 (5)(b) or 295.031 (2) indicating that the
{ - bank - } depository is in compliance with ORS 295.013 or
295.018, as applicable.
(3) Except as required by any applicable law or regulation, a
bank depository { + or credit union depository + } may not
impose { - any - } { + an + } early withdrawal penalty or
{ - any - } forfeiture of interest with respect to a withdrawal
made by a public official pursuant to this section.
SECTION 11. { + Section 12 of this 2009 Act is added to and
made a part of ORS 295.001 to 295.108. + }
SECTION 12. { + (1) A credit union depository's deposit of
securities with a custodian under ORS 295.001 to 295.108
constitutes the credit union depository's consent to the
disposition of the securities in accordance with this section.
(2) When a loss occurs in a credit union depository, the credit
union depository shall, as soon as possible, pay to the proper
public officials all funds subject to the loss in accordance with
the following procedures:
(a) The Director of the Department of Consumer and Business
Services or the receiver shall, within 20 days after obtaining a
restraining order or taking possession of the credit union
depository, ascertain the amount of public funds on deposit in
the credit union depository as disclosed by the credit union
depository's records and the amount of public funds that are
covered by deposit insurance and shall certify the amounts to the
State Treasurer and to each public official who has public funds
on deposit in the credit union depository.
(b) Each public official who has public funds on deposit in the
credit union depository shall, within 10 days after receiving the
certification from the Director of the Department of Consumer and
Business Services or the receiver, furnish to the State Treasurer
verified statements of the public funds that public official has
on deposit in the credit union depository.
(3) Upon receiving the certification from the Director of the
Department of Consumer and Business Services or the receiver and
the verified statements from the public officials who have public
funds on deposit in the credit union depository, the State
Treasurer shall ascertain and fix the amount of public funds on
deposit in the credit union depository, plus interest to the date
the funds are distributed to the public official at the rate the
credit union depository agreed to pay on the funds, minus any
amount covered by deposit insurance.
(4) After making the calculation described in subsection (3) of
this section, the State Treasurer shall assess the net amount of
public funds against all credit union depositories as follows:
(a) First, against the credit union depository that suffered
the loss, to the extent of the full value of the credit union
depository's collateral deposited with the credit union
depository's custodian under ORS 295.001 to 295.108; and
(b) Second, against the collateral of all other credit union
depositories on a proportionate basis determined as provided in
subsection (5) of this section.
(5) For purposes of subsection (4) of this section, the State
Treasurer shall determine the proportionate share of each of the
other credit union depositories by:
(a) Averaging the amounts of the total deposits of public funds
reported on the credit union depository's last four treasurer
reports;
(b) Averaging the total amounts of the total deposits of public
funds reported on the last four treasurer reports of all credit
union depositories; and
(c) Dividing the result of the calculation performed under
paragraph (a) of this subsection by the results of the
calculation performed under paragraph (b) of this subsection.
(6) Notwithstanding the assessment provisions of subsection (4)
of this section, the State Treasurer shall assess the net amount
of public funds a public official has on deposit only against the
credit union depository that suffered the loss, and not against
the collateral of other credit union depositories, if the public
official:
(a) Received appropriate notice about the credit union
depository from the State Treasurer under ORS 295.018 (5)(a) or
295.031 (1); and
(b) The public official did not comply with ORS 295.034.
(7) Assessments made by the State Treasurer are payable on the
fifth business day following demand. If a credit union depository
fails to pay an assessment, the State Treasurer shall take
possession of the securities the credit union depository
segregated as collateral and liquidate the securities for the
purpose of paying the assessment.
(8) The State Treasurer shall distribute the net proceeds of
the assessments and of any liquidated collateral among the public
officials entitled to the proceeds in proportion to the public
officials' respective claims, to the extent that the proceeds do
not exceed the total net amount of deposits of public funds and
accrued interest that the public officials claim.
(9) If, after all other available sources are applied, the net
proceeds of the assessments and of the liquidated collateral are
inadequate to meet the total claims of the public officials
entitled to the proceeds, the public officials may make claims
against the closed credit union depository as general creditors.
(10) The prohibition on transfers of assets set forth in ORS
711.410 does not apply to assessments, payments, transfers or
sales of securities made in accordance with this section. + }
SECTION 13. ORS 295.041 is amended to read:
295.041. Upon the { + State Treasurer's + } distribution of
the proceeds of assessments and liquidated collateral { + to a
public official under + } { - pursuant to - } ORS 295.037 { +
or section 12 of this 2009 Act + } { - by the State Treasurer
to any public official - } , the State Treasurer { - shall
be - } { + is + } subrogated to all of the { + public
official's + } right, title and interest { - of the public
official - } against { - the - } { + a + } closed bank
depository { + or credit union depository + }, and shall share
in any distribution of { - its - } { + the closed
depository's + } assets ratably with other depositors.
{ - Any - } Sums received from { - any - } { + a + }
distribution { - shall - } { + must + } be paid to the public
{ - officials - } { + official + } to the extent of any unpaid
net deposit liability and the balance remaining { - shall - }
{ + must + } be paid to the { - bank - } depositories
against which the assessments were made, pro rata in proportion
to the assessments { - actually paid by - } each { - bank - }
depository { + paid + }. However, the closed { - bank - }
depository may not share in { - any - } { + a + }
distribution of the balance remaining.
{ - If - } The State Treasurer { + may charge expenses that
the treasurer + } incurs { - expenses - } in enforcing the
treasurer's rights under this section { - , the expenses may be
charged - } as provided in ORS 295.106. The State Treasurer
shall submit a claim for expenses to the
{ - bank - } depository, and if the charges are thereafter
paid to the treasurer, they shall be treated as a liquidation
expense of the closed { - bank - } depository.
SECTION 14. ORS 295.046 is amended to read:
295.046. (1) A bank depository { + or credit union
depository + } may not accept a deposit of public funds if the
deposit would cause the aggregate of { + deposits of + } public
funds { - deposits - } made by any one public official in the
{ - bank - } depository to exceed at any time the { +
depository's + } net worth { - of the bank depository - } . If
a { - bank - } depository's net worth is reduced, the
{ - bank - } depository may allow public funds on deposit in
excess of the reduced net worth to remain if the { - bank - }
depository deposits with { - its - } { + the depository's + }
custodian eligible securities valued at market value in an amount
at least equal to the amount of the excess { + deposits of + }
public funds { - deposits - } . If the additional securities
required by this section are not deposited with the custodian,
the { - bank - } depository shall permit the public official to
withdraw deposits prior to maturity, including accrued interest,
in accordance with applicable statutes and governmental
regulations.
(2) The limitations of subsection (1) of this section do not
apply to { + deposits of + } public funds { - deposits - }
held by a bank depository { + or credit union depository + } in
a certificate of deposit or time deposit under the program
described in ORS 295.004.
SECTION 15. ORS 295.048 is amended to read:
295.048. (1) Notwithstanding ORS 295.046, a bank depository
{ + or credit union depository + } may not permit the aggregate
of public funds { - deposits - } on deposit with the
{ - bank - } depository from all public officials to exceed at
any time:
(a) 100 percent of the value of the { - bank - }
depository's net worth, if the { - bank - } depository is an
undercapitalized { - bank - } depository;
(b) 150 percent of the value of the { - bank - }
depository's net worth, if the { - bank - } depository is an
adequately capitalized
{ - bank - } depository;
(c) 200 percent of the value of the { - bank - }
depository's net worth, if the { - bank - } depository is a
well capitalized { - bank - } depository; { - or - }
(d) { + For a bank depository, + } 30 percent of the total
aggregate { + deposits of + } public funds { - deposits - }
of all public officials in all bank depositories as reported in
the most recent notice received by the bank depository from the
State Treasurer { - . - } { + ; or
(e) For a credit union depository, 30 percent of the total
aggregate deposits of public funds of all public officials in all
credit union depositories as reported in the most recent notice
received by the credit union depository from the State
Treasurer. + }
(2) The State Treasurer shall notify each bank depository { +
or credit union depository + } and { - its - } { + the
depository's + } custodian of the total aggregate { + deposits
of + } public funds { - deposits - } of all public officials
in all bank depositories { + or credit union depositories + },
based on the most recently submitted treasurer reports. The
treasurer shall give the notification required by this subsection
by the last day of the month in which { - bank - } depositories
are required to submit a treasurer report.
(3) If a bank depository's { + or credit union
depository's + } aggregate of { + deposits of + } public funds
{ - deposits - } exceeds the amount set forth in subsection (1)
of this section, the { - bank - } depository shall, not later
than 20 business days after { - receipt of - } { +
receiving + } notice from the State Treasurer, cease accepting
deposits of public funds.
(4) Notwithstanding subsections (1) and (3) of this section:
(a) A bank depository { + or credit union depository + } may
accept and hold { + deposits of + } public funds
{ - deposits - } in excess of the limits provided in subsection
(1) of this section if the State Treasurer, upon good cause
shown, approves the request of the
{ - bank - } depository to hold public funds in excess of the
limits provided in subsection (1) of this section for a period
not exceeding 90 days.
(b) The limitations of subsection (1) of this section do not
apply to { + deposits of + } public funds { - deposits held
by - } a { - bank - } depository { + holds + } in a program
described in ORS 295.004.
(c) A well capitalized { - bank - } depository or an
adequately capitalized { - bank - } depository may accept and
hold { + deposits of + } public funds { - deposits - } in
excess of the limit provided in subsection (1)(d) { + or (e) + }
of this section if eligible securities are deposited with the
{ - bank - } depository's custodian as collateral in an amount
at least equal to the amount of the { + deposits of + } public
funds { - deposits - } { + that are + } in excess of the
limitation prescribed in subsection (1)(d) { + or (e) + } of
this section.
SECTION 16. ORS 295.053 is amended to read:
295.053. (1) If a bank depository { + or credit union
depository + } ceases holding { + deposits of + } public funds
{ - deposits - } , the { - bank - } depository's custodian
shall continue to hold the pledged securities of the
{ - bank - } depository as collateral pursuant to ORS 295.001
to 295.108. Unless the State Treasurer directs that the { +
custodian hold the + } { - bank - } depository's securities
{ - be held - } for a longer period, the custodian shall hold
the { - bank - } depository's pledged securities for a period
of:
(a) 30 days, in the case of a { - bank - } depository that
was well capitalized as of the date the { - bank - }
depository ceased holding any { + deposits of + } public funds
{ - deposits - } ;
(b) 90 days, in the case of a { - bank - } depository that
was adequately capitalized as of the date the { - bank - }
depository ceased holding any { + deposits of + } public funds
{ - deposits - } ; or
(c) One year, in the case of a { - bank - } depository that
was undercapitalized as of the date the { - bank - }
depository ceased holding { - any - } { + deposits of + }
public funds { - deposits - } .
(2) If any of a bank depository's { + or credit union
depository's + } pledged securities mature during the periods
described in subsection (1) of this section, the { - bank - }
depository shall pledge substitute securities that { + the
depository's custodian shall hold + } { - shall be held by its
custodian - } until the { - expiration of the - } period { +
expires + }.
(3) At the end of the applicable holding period, if the bank
depository { + or credit union depository + } has not, during
that period, had { + public funds + } on deposit { - any
public funds deposits - } , the custodian shall tender the bank
depository's { + or credit union depository's + } securities to
the bank depository { + or the credit union depository, as
appropriate + }.
(4) Notwithstanding the release of a bank depository's { + or
a credit union depository's + } securities pursuant to subsection
(3) of this section, the { - bank - } depository shall
continue to be treated as a { - bank - } depository and
{ - shall be - } { + is + } subject to assessment under ORS
295.037 until one year after the { - bank - } depository
ceased holding any { + deposits of + } public funds
{ - deposits - } . If the
{ - bank - } depository no longer has pledged collateral that
may be used to pay the assessment, the { - bank - } depository
shall remain liable for { - payment of - } { + paying + } the
assessment from { - its - } { + the depository's + } other
assets.
SECTION 17. ORS 295.061 is amended to read:
295.061. (1) On or before each treasurer report due date, each
bank depository { + or credit union depository + } that
{ - has in its possession public funds - } { + possesses + }
deposits of { + public funds from + } one or more public
officials that exceed the limits specified in ORS 295.002 shall
file { - its - } { + the depository's + } treasurer report
with { - its - } { + the depository's + } custodian
{ - bank - } and with the State Treasurer.
(2) { - Each - } { + A + } bank depository { + or credit
union depository + } that files reports with the State Treasurer
under subsection (1) of this section shall notify the State
Treasurer in writing or by electronic means within 10 business
days of:
(a) The date on which the { - bank - } depository's net
worth is reduced by an amount greater than 10 percent of the
amount shown as { - its - } { + the depository's + } net
worth on the most recent report submitted pursuant to subsection
(1) of this section; or
(b) The date on which the { - bank - } depository ceases to
be well capitalized and becomes adequately capitalized or
undercapitalized, or ceases to be adequately capitalized and
becomes undercapitalized.
(3) An undercapitalized bank depository { + or credit union
depository + } shall report the actual amount of { + deposits
of + } public funds { - deposits held by it - } { + the
depository holds + } at least weekly to { - its - } { + the
depository's + } custodian { - bank - } and to the State
Treasurer.
SECTION 18. ORS 295.071 is amended to read:
295.071. (1) The State Treasurer may request that the Director
of the Department of Consumer and Business Services or another
state or federal agency with primary regulatory authority over
{ - any - } { + a + } financial institution that is a bank
depository or { + credit union depository or + } that applies
to become a bank depository { + or credit union depository + }
investigate and report to the State Treasurer concerning the
condition of the financial institution.
(2) The financial institution examined under this section shall
pay the expenses of the investigation and report.
(3) In lieu of an investigation and report, the State Treasurer
may rely upon information made available to the State Treasurer
or the Director of the Department of Consumer and Business
Services by the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, { + the National Credit Union
Administration, + } the Federal Deposit Insurance Corporation,
{ + the National Credit Union Share Insurance Fund, + } the
Board of Governors of the Federal Reserve System or { - any - }
{ + a + } state { + regulatory agency with authority over
banks, credit unions or thrifts. + } { - bank or thrift
regulatory agency. - }
SECTION 19. ORS 295.073 is amended to read:
295.073. The Director of the Department of Consumer and
Business Services shall advise the State Treasurer of any action
the director takes or directs { - any - } { + a + } bank
depository { + or credit union depository + } to take that will
{ - result in a reduction of greater - } { + reduce the
depository's net worth by more + } than 10 percent
{ - of the net worth of the bank depository - } as shown on
the most recent treasurer report submitted pursuant to ORS
295.061.
SECTION 20. ORS 295.081 is amended to read:
295.081. (1) Subject to ORS 295.002, 295.015 and 295.018,
{ - any - } { + a + } depository may offer in writing to
accept from the State Treasurer time deposits without limitation
in { + an + } amount or in an aggregate amount { - therein - }
stated { + in the offer + } and to pay interest on the time
deposits at rates specified in the offer. The offer shall
{ - be a continuing offer - } { + continue + } until { - it
is modified or withdrawn - } { + the depository modifies or
withdraws the offer + } by notice in writing delivered or mailed
by registered or certified mail to the State Treasurer. While the
offer continues in effect, the depository { - is bound to - }
{ + must + } accept { + time deposits tendered by the State
Treasurer + } upon the terms { - therein - } specified { + in
the offer. + } { - time deposits tendered by the State
Treasurer. - }
(2) { - Any - } Funds deposited by the State Treasurer on a
time basis { - shall - } { + must + } be deposited at the
highest rate of interest available for the amount and term of the
deposit.
(3) The State Treasurer shall establish time deposits so as to
make the deposited moneys as productive as possible, and shall
exercise the judgment and care { - which - } { + that a
person + } { - persons - } of prudence, discretion and
intelligence { - exercise - } { + exercises + } in the
management of { - their - } { + the person's + } own affairs,
considering the probable income and the probable safety of the
moneys deposited, including the distribution of the deposits
among depositories so as to minimize the possibility of loss of
moneys.
SECTION 21. ORS 295.084 is amended to read:
295.084. (1) The State Treasurer may designate such banks { +
and credit unions + } { - as are necessary - } within this
state { + as are necessary + } as depositories for the
collection of drafts, checks, certificates of deposit and coupons
received by the State Treasurer on account of any claim due the
state.
(2) The State Treasurer, on receipt of any draft, check or
certificate of deposit, on account of a claim due the state, may
place { - it - } { + the draft, check or certificate of
deposit + } in a depository for collection. The depository shall
collect { - it - } { + the draft, check or certificate of
deposit + } without delay and shall notify the State Treasurer
when { + the depository has + } collected { + the draft, check
or certificate of deposit + }. { - The compensation to be paid
by the depository shall be fixed by - } The State Treasurer
{ + shall fix the compensation the depository must pay + } upon
the best terms obtainable for the state.
SECTION 22. ORS 295.091 is amended to read:
295.091. (1) In selecting { + a + } { - banks or trust
companies - } { + bank, trust company or credit union + } to
act as { - depositories - } { + a depository + },
{ - public officials are - } { + a public official is + } not
limited to the appointment of { - banks or trust companies in
any - } { + a bank, trust company or credit union in a + }
particular locality. However, if { - banks or trust companies
are - } { + a bank, trust company or credit union is + }
engaged in business at an office or offices within the corporate
limits of the political subdivision or public corporation and
{ - qualify - } { + qualifies + } to receive the funds,
{ - such depositories - } { + the local qualifying
depository + } shall be given preference. If there is more than
one { - such - } local qualifying depository, the depositing
public official shall apportion the funds in the hands of the
public official to { - such - } { + the local qualifying + }
depositories in a manner that is equitable and in the best
interests of the political subdivision or public corporation.
(2) The depositories { - shall be required to - } { +
must + } pay to the political subdivision or public corporation
upon deposits evidenced by certificates of deposit or deposits
that by agreement may not be withdrawn on less than 30 days'
notice, interest at
{ - such - } { + the + } rate or rates { - as shall be
agreed upon between - } { + upon which + } the governing body
of the political subdivision or public corporation and the
depository { + agree + }.
(3) { - All - } Interest received on deposits of moneys
under this section shall accrue to and become a part of the fund
the moneys of which were deposited.
(4) This section does not apply to the State Treasurer.
SECTION 23. ORS 295.106 is amended to read:
295.106. The State Treasurer may charge bank depositories { +
and credit union depositories + } for the { + State
Treasurer's + } reasonable expenses { - of the State
Treasurer - } in connection with the { + State Treasurer's + }
services, duties and activities { - of the State Treasurer - }
related to ORS 295.001 to 295.108. The State Treasurer shall
deposit all moneys received under this section in the
Miscellaneous Receipts Account established in the General Fund
for the State Treasurer. Moneys received under this section are
continuously appropriated to the State Treasurer for the payment
of the { + State Treasurer's + } reasonable expenses { - of
the State Treasurer - } in connection with the { + State
Treasurer's + } services, duties and activities { - of the
State Treasurer - } related to ORS 295.001 to 295.108. A
{ - bank - } depository shall pay to the State Treasurer all
fees and other amounts charged under this section or under rules
adopted to implement this section.
SECTION 24. ORS 295.108 is amended to read:
295.108. (1) The State Treasurer shall adopt rules implementing
the provisions of ORS 295.001 to 295.108.
(2) The State Treasurer shall design the treasurer report
required by ORS 295.061. The { + treasurer shall design the + }
report
{ - shall be designed - } to minimize the regulatory burden of
completing and submitting the report and, to the greatest extent
practicable, { - the - } { + to make the + } form of the
report and the content required in the report { - shall be - }
consistent with the information required by the bank
depository's { + or credit union depository's + } report of
condition and income.
SECTION 25. ORS 295.205 is amended to read:
295.205. (1) Notwithstanding any other law:
(a) The State Treasurer may establish demand deposit accounts
in financial institutions outside this state for the purpose of
accepting deposits of funds related to { - the - } state
investments in the geographical areas respectively serviced by
the institutions.
(b) Moneys paid to or collected by a financial institution or
other entity under an agreement to provide loan servicing for a
state agency, political subdivision or public corporation may be
deposited in accounts in financial institutions outside this
state for the purpose of:
(A) Accepting payments of loan principal and interest;
(B) Accepting and holding escrow funds;
(C) Accepting and holding funds required to be held in reserve
with or on behalf of the state agency, political subdivision or
public corporation; or
(D) Collecting and holding { - any - } other moneys required
by the agreement for loan servicing to be collected or held by
the financial institution or other entity prior to remittance to
the state agency, political subdivision or public corporation or
a third party.
(c) Moneys held by a trustee or escrow agent pursuant to a bond
indenture, certificate of participation indenture or escrow
agreement with a state agency, political subdivision or public
corporation in this state that are public funds, as defined in
ORS 295.001, may be deposited in accounts in financial
institutions outside this state.
(2) The State Treasurer shall establish the demand deposit
accounts described in subsection (1)(a) of this section in
accordance with rules adopted pursuant to ORS 183.310 to 183.410
that ensure that reasonable and prudent measures are taken to
protect { - the - } state investment funds from loss.
(3) When accounts are established for a state agency, political
subdivision or public corporation under subsection (1)(b) or (c)
of this section, the state agency, political subdivision or
public corporation in the agreement to provide loan servicing or
the bond indenture, certificate of participation indenture or
escrow agreement shall ensure that reasonable and prudent
measures are taken to protect the moneys in the accounts from
loss.
{ - (4) A public official may not have on deposit in any
credit union that is a financial institution outside this state
an aggregate sum in excess of the deposit insurance limit
established by the National Credit Union Administration. - }
{ - (5) - } { + (4) + } As used in this section, the terms
'financial institution outside this state' and 'public official'
have the meanings given those terms in ORS 295.001.
SECTION 26. ORS 576.375 is amended to read:
576.375. (1) { - All - } Moneys { + a person collects or
receives + }
{ - collected or received by any person - } from the
assessment levied under the authority of ORS 576.325 and
{ - all - } other moneys
{ - received by - } a commodity commission { + receives + }
must be paid to the authorized agent of the commission and
promptly deposited into an account established by the commission
in a depository, as defined in ORS 295.001, that is insured by
the Federal Deposit Insurance Corporation { + or the National
Credit Union Share Insurance Fund + }. In a manner consistent
with the requirements of ORS 295.001 to 295.108, the chairperson
and vice chairperson for a commission shall ensure that
sufficient collateral secures any amount of funds on deposit that
exceeds the limits of the Federal Deposit Insurance
Corporation's { + or the National Credit Union Share Insurance
Fund's + } coverage. All moneys in the account are continuously
appropriated to the commission making the deposit for the purpose
of carrying out the duties, functions and powers of the
commission.
(2) Moneys may not be withdrawn from or paid out of the account
except upon order of the commission, and upon checks or other
orders upon such accounts signed by the secretary-treasurer or
such other member of the commission as the commission designates
and countersigned by such other member, officer or employee of
the commission as the commission designates. The commission shall
keep a receipt, voucher or other written record, showing clearly
the nature and items covered by each check or other order.
(3) Subject to approval by the Director of Agriculture, a
commission may invest moneys collected or received by the
commission. Investments made by a commission are:
(a) Limited to investments described in ORS 294.035;
(b) Subject to the investments maturity date limitations
described in ORS 294.135; and
(c) Subject to the conduct prohibitions listed in ORS 294.145.
(4) Interest earned from any moneys invested by a commission
under subsection (3) of this section is available to the
commission in a manner consistent with the commission's annual
budget.
SECTION 27. ORS 711.410 is amended to read:
711.410. Except for transfers { + of public funds or
securities as required under ORS 295.001 to 295.108 + } by a
{ - bank - } depository { + , as defined in ORS 295.001, + } or
the State Treasurer { - of public funds or securities as
required by ORS 295.001 to 295.108 - } , all transfers of assets
made after the commission of an act of insolvency or in
contemplation of insolvency, to prevent the application of the
assets in the manner prescribed by the Bank Act or to the
preference of one creditor to another are void.
SECTION 28. { + (1) Section 12 of this 2009 Act and the
amendments to ORS 295.001, 295.002, 295.004, 295.006, 295.008,
295.013, 295.015, 295.018, 295.031, 295.034, 295.041, 295.046,
295.048, 295.053, 295.061, 295.071, 295.073, 295.081, 295.084,
295.091, 295.106, 295.108, 295.205, 576.375 and 711.410 by
sections 1 to 10 and 13 to 27 of this 2009 Act become operative
January 1, 2010.
(2) The State Treasurer and the Director of the Department of
Consumer and Business Services may take any action before January
1, 2010, that is necessary to enable the State Treasurer and the
director to exercise, on and after January 1, 2010, all the
duties, functions and powers conferred on the State Treasurer and
the director by section 12 of this 2009 Act and the amendments to
ORS 295.001, 295.002, 295.004, 295.006, 295.008, 295.013,
295.015, 295.018, 295.031, 295.034, 295.041, 295.046, 295.048,
295.053, 295.061, 295.071, 295.073, 295.081, 295.084, 295.091,
295.106, 295.108, 295.205, 576.375 and 711.410 by sections 1 to
10 and 13 to 27 of this 2009 Act. + }
SECTION 29. { + Section 12 of this 2009 Act and the amendments
to ORS 295.001, 295.002, 295.004, 295.006, 295.008, 295.013,
295.015, 295.018, 295.031, 295.034, 295.041, 295.046, 295.048,
295.053, 295.061, 295.071, 295.073, 295.081, 295.084, 295.091,
295.106, 295.108, 295.205, 576.375 and 711.410 by sections 1 to
10 and 13 to 27 of this 2009 Act apply to public funds on deposit
on or after January 1, 2010. + }
SECTION 30. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }
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