Chapter 48 Oregon Laws 1999

Session Law

AN ACT

SB 25

Relating to depositories of public funds; amending ORS 295.025; and repealing section 10, chapter 107, Oregon Laws 1999 (Enrolled Senate Bill 283).

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

SECTION 1. ORS 295.025 is amended to read:

295.025. (1) Any 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 cash working fund, each public official shall deposit public funds in the custody or control of the public official in one or more depositories currently qualified pursuant to ORS 295.005, 295.015 and 295.025 to 295.165. The public official, without procuring certificates of participation issued by the pool manager of the depository in an amount equal to the excess deposit, shall not have on deposit in any one depository bank and its branches a sum in excess of:

(a) The amount insured by the Federal Deposit Insurance Corporation; or

(b) For any amount over the amount insured by the Federal Deposit Insurance Corporation, 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. [the Federal Savings and Loan Insurance Corporation, without procuring certificates of participation issued by the pool manager of the depository in an amount equal to the excess deposit. Compliance with ORS 295.005, 295.015 and 295.025 to 295.165 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.]

(2) Whenever a public official holds a certificate of participation issued by a pool manager in an amount exceeding the amount required by subsection (1) of this section, upon the written request of the depository bank the public official shall surrender it to the pool manager or direct the pool manager in writing to cancel it in whole or in a designated part.

(3) Compliance with ORS 295.005, 295.015 and 295.025 to 295.165 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 2. If Senate Bill 283 becomes law, section 10, chapter 107, Oregon Laws 1999 (Enrolled Senate Bill 283) (amending ORS 295.025), is repealed.

Approved by the Governor April 19, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date October 23, 1999

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