Bill Text: OR HB2613 | 2011 | Regular Session | Enrolled
Bill Title: Relating to deposits of public funds.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2011-06-23 - Chapter 477, (2011 Laws): Effective date January 1, 2012. [HB2613 Detail]
Download: Oregon-2011-HB2613-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2613
Sponsored by Representative SCHAUFLER (at the request of Oregon
Bankers Association) (Presession filed.)
CHAPTER ................
AN ACT
Relating to deposits of public funds; creating new provisions;
and amending ORS 295.001, 295.004, 295.046 and 295.048.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 295.004 is amended to read:
295.004. (1) A public official may deposit public funds in a
bank depository in an amount in excess of the amount allowed in
ORS 295.002 without requiring the bank depository to show that it
has entered into a pledge agreement 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;
(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) A public official may deposit public funds in a bank
depository in an amount in excess of the amount allowed in ORS
295.002 without requiring the bank depository to show that it has
entered into a pledge agreement 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 that meets the following conditions:
(a) On or after the date that the funds are received, the
Oregon bank depository:
(A) Arranges for the redeposit of the funds into one or more
insured deposit accounts in other financial institutions in the
United States; and
(B) Administers the funds on behalf of the public official;
(b) The full amount of the funds redeposited by the Oregon bank
depository into deposit accounts in other financial institutions,
together with any interest accrued on deposited funds, is insured
by the Federal Deposit Insurance Corporation; and
(c) On the same date that the funds are redeposited under this
subsection, the Oregon bank depository receives an amount of
Enrolled House Bill 2613 (HB 2613-INTRO) Page 1
deposits from customers of other financial institutions that are
at least equal to the amount of the funds redeposited by the
Oregon bank depository. + }
{ - (2) - } { + (3) + } Until the Oregon bank depository
places public funds into one or more certificates of deposit or
time deposits as provided in subsection (1) of this section { +
or places public funds into insured deposit accounts as provided
in subsection (2) of this section + }, any uninsured public funds
held by the Oregon bank depository pending such placement must be
collateralized as provided in ORS 295.001 to 295.108 for other
uninsured public funds deposits.
{ - (3) - } { + (4)(a) + }The provisions of ORS 295.006,
295.013, 295.015, 295.018 and 295.037 do not apply to public
funds deposits deposited into a bank depository in Oregon that
the bank depository arranges for under the provisions of the
{ - program - } { + programs + } described in { + subsections
(1) and (2) of + } this section.
{ + (b) + } 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
{ + subsection (1) of + } this section { + or to public funds
that an Oregon bank depository arranges to deposit into insured
deposit accounts under subsection (2) of this section + }.
SECTION 2. ORS 295.004, as amended by section 3, chapter 101,
Oregon Laws 2010, is amended to read:
295.004. (1) A public official may deposit public funds in a
depository in an amount in excess of the amount allowed in ORS
295.002 without requiring the depository to show that the
depository entered into a pledge agreement or deposited
securities pursuant to ORS 295.015 (1) if the public official
deposits the funds into a depository in Oregon and the Oregon
depository participates in a program through which:
(a) The Oregon depository arranges to deposit 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 depository administers the funds on behalf of
the public official; and
(d) Other financial institutions that participate in the
program place funds into the Oregon depository in an amount at
least equal to the amount the public official deposited into the
Oregon depository for purposes of the program.
{ + (2) A public official may deposit public funds in a
depository in an amount in excess of the amount allowed in ORS
295.002 without requiring the depository to show that it has
entered into a pledge agreement or deposited securities pursuant
to ORS 295.015 (1) if the funds are initially deposited into a
depository in Oregon and the Oregon depository participates in a
program that meets the following conditions:
(a) On or after the date that the funds are received, the
Oregon depository:
(A) Arranges for the redeposit of the funds into one or more
insured deposit accounts in other financial institutions in the
United States; and
(B) Administers the funds on behalf of the public official;
Enrolled House Bill 2613 (HB 2613-INTRO) Page 2
(b) The full amount of the funds redeposited by the Oregon
depository into deposit accounts in other financial institutions,
together with any interest accrued on deposited funds, is insured
by the Federal Deposit Insurance Corporation or the National
Credit Union Share Insurance Fund; and
(c) On the same date that the funds are redeposited under this
subsection, the Oregon depository receives an amount of deposits
from customers of other financial institutions that are at least
equal to the amount of the funds redeposited by the Oregon
depository. + }
{ - (2) - } { + (3) + } Until the Oregon depository places
public funds into one or more certificates of deposit or time
deposits as provided in subsection (1) of this section { + or
places public funds into insured deposit accounts as provided in
subsection (2) of this section + }, any uninsured public funds
that the Oregon depository holds pending placement must be
collateralized as provided in ORS 295.001 to 295.108 for other
uninsured public funds deposits.
{ - (3) - } { + (4)(a) + } The provisions of ORS 295.006,
295.013, 295.015, 295.018 and 295.037 and section 12, chapter
101, Oregon Laws 2010, do not apply to Oregon depositories that
arrange to deposit public funds in accordance with the
{ - program - } { + programs + } described in { +
subsections (1) and (2) of + } this section.
{ + (b) + } The provisions of ORS 294.035 and 295.001 that
require public funds to be deposited into depositories that have
offices or branches in Oregon do not apply to public funds that
an Oregon depository arranges to deposit into certificates of
deposit or time deposits under the provisions of the program
described in { + subsection (1) of + } this section { + or to
public funds that an Oregon depository arranges to deposit into
insured deposit accounts under subsection (2) of this
section + }.
SECTION 3. 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 that is
classified as adequately capitalized by its 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 day other than a federal or State
of Oregon legal holiday or a day on which offices of the State of
Oregon are otherwise authorized by law to remain closed.
(4) 'Closed depository' means a bank depository that is subject
to a loss.
(5) '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.
(6) 'Custodian bank' or 'custodian' means one of the following
institutions designated by the bank depository for its own
account:
Enrolled House Bill 2613 (HB 2613-INTRO) Page 3
(a) The Federal Home Loan Bank designated to serve this state,
or any branch of that bank; or
(b) Any insured institution or trust company 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.
(7) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian bank describing the securities deposited with it
by a bank depository to secure public fund deposits.
(8) 'Depository' means a bank depository or a credit union
depository.
(9) '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.
(10) 'Insured institution' means an insured institution as
defined in ORS 706.008.
(11) 'Loss' means the issuance of an order by a regulatory or
supervisory authority or a court of competent jurisdiction:
(a) Restraining a bank depository from making payments of
deposit liabilities; or
(b) Appointing a receiver for a depository.
(12) 'Maximum liability' means a sum equal to 10 percent of the
greater of:
(a) All uninsured public funds deposits held by the bank
depository as shown on the date of its most recent treasurer
report; or
(b) The average of the balances of uninsured public funds
deposits on the last two immediately preceding treasurer reports.
(13) 'Minimum collateral requirement' for a bank depository on
any given date means a sum equal to:
(a) For a well capitalized bank depository that has not been
required to increase its collateral pursuant to ORS 295.018, 10
percent of the greater of:
(A) All uninsured public funds held by the bank depository, as
shown on the most recent treasurer report;
(B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports; or
(C) An amount otherwise prescribed in ORS 295.001 to 295.108.
(b) For a well capitalized bank depository that has been
required to increase its collateral pursuant to ORS 295.018, the
percentage required by the State Treasurer pursuant to ORS
295.018 multiplied by the greater of:
(A) All uninsured public funds held by the bank depository, as
shown on the most recent treasurer report;
(B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports; or
(C) An amount otherwise prescribed in ORS 295.001 to 295.108.
(c) For an adequately capitalized bank depository or an
undercapitalized bank depository, 110 percent of the greater of:
(A) All uninsured public funds held by the bank depository; or
(B) The average of the balances of uninsured public funds held
by the bank depository, as shown on the last two immediately
preceding treasurer reports.
Enrolled House Bill 2613 (HB 2613-INTRO) Page 4
(14) 'Net worth' of a bank depository means the total
risk-based 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.
(15) 'Pledge agreement' means a written agreement among an
insured institution or trust company, the State Treasurer and a
custodian that pledges the securities deposited by the insured
institution or trust company with the custodian as collateral for
deposits of uninsured public funds held by the insured
institution or trust company. The agreement must be approved by
the board of directors or loan committee of the insured
institution or trust company and must be continuously maintained
as a written record of the insured institution or trust company.
(16) 'Public funds' or 'funds' means funds under the control or
in the custody of a public official by virtue of office.
(17) 'Public official' means each officer or employee of this
state or any agency, political subdivision or public or municipal
corporation thereof, or any housing authority, who by law is made
the custodian of or has control of any public funds.
(18) 'Report of condition and income' means the quarterly
report submitted to a bank depository's primary federal
regulatory authority.
(19) 'Security' or 'securities' means:
(a) Obligations of the United States, including those of its
agencies and instrumentalities and of government sponsored
enterprises;
(b) Obligations of the International Bank for Reconstruction
and Development;
(c) Bonds of any 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 are ruled to be eligible
securities for the purposes of ORS 295.001 to 295.108,
notwithstanding the loss of such rating;
(d) Bonds of any 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 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 county or city within the State of Oregon, if the bonds have
a long-term rating of AA or better;
(f) With the permission of the State Treasurer and in
accordance with rules adopted by the State Treasurer, loans made
to any 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 loans within the preceding 10 years or during the
period of its 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;
Enrolled House Bill 2613 (HB 2613-INTRO) Page 5
(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.
(20) 'Treasurer report' means a written report signed or
authenticated by an officer of a bank depository that has in its
possession uninsured public funds deposits setting forth as of
the close of business on a specified date:
(a) The total amount of uninsured public funds on deposit with
the bank depository;
(b) The total amount of public funds on deposit with the bank
depository;
(c) The net worth of the bank depository;
(d) The amount and nature of eligible collateral then on
deposit with its custodian to collateralize the bank depository's
public funds deposits; and
(e) The identity of its custodian.
(21) 'Treasurer report due date' means a date not less than 10
business days after the date a bank depository's report of
condition and income is due to be submitted.
(22) 'Trust company' means a trust company as defined in ORS
706.008.
(23) 'Undercapitalized' means a bank depository that is
classified as undercapitalized, significantly undercapitalized or
critically undercapitalized by its primary federal regulatory
authority.
(24) { + (a) + } 'Uninsured public funds' or 'uninsured public
funds deposits' means public funds deposited in a bank depository
that exceed the amounts insured or guaranteed as described in ORS
295.002 (1)(a) and (b) { - and does not include - } { + .
(b) 'Uninsured public funds' or 'uninsured public funds
deposits' does not include + } public funds deposited in a
certificate of deposit or time deposit under ORS 295.004 { + (1)
or public funds that an Oregon bank depository arranges to
deposit into an insured deposit account under ORS 295.004
(2) + }.
(25) 'Value' means the current market value of securities.
(26) 'Well capitalized' means a bank depository that is
classified as well capitalized by its primary federal regulatory
authority.
SECTION 4. ORS 295.001, as amended by section 1, chapter 101,
Oregon Laws 2010, 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 depository that is
classified as adequately capitalized by 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
Enrolled House Bill 2613 (HB 2613-INTRO) Page 6
(b) Complies with ORS 295.008.
(3) 'Business day' means 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) 'Closed depository' means a depository that is subject to a
loss.
(5) '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;
(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; and
(c) The credit union or federal credit union complies with ORS
295.008.
(6) 'Custodian' means one of the following institutions that a
depository designates for the depository's own account:
(a) The Federal Home Loan Bank designated to serve this state,
or a branch of the Federal Home Loan Bank; or
(b) An insured institution, 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, if the State Treasurer has approved custodians under
ORS 295.008.
(7) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian that describes the securities that a depository
deposited with the custodian to secure public fund deposits.
(8) 'Depository' means a bank depository or a credit union
depository.
(9) '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.
(10) 'Insured institution' means an insured institution as
defined in ORS 706.008.
(11) 'Loss' means the issuance of an order by a regulatory or
supervisory authority or a court of competent jurisdiction that:
(a) Restrains a depository from making payments of deposit
liabilities; or
(b) Appoints a receiver for a depository.
(12) 'Maximum liability' means a sum equal to 10 percent of the
greater of:
(a) All uninsured public funds deposits held by a depository,
as shown on the date of the depository's most recent treasurer
report; or
(b) The average of the balances of uninsured public funds
deposits on the last two immediately preceding treasurer reports.
(13) 'Minimum collateral requirement' for a depository on any
given date means a sum equal to:
(a) For a well capitalized depository that the State Treasurer
has not required to increase the depository's collateral pursuant
to ORS 295.018, 10 percent of the greater of:
(A) All uninsured public funds held by the depository, as shown
on the most recent treasurer report;
Enrolled House Bill 2613 (HB 2613-INTRO) Page 7
(B) The average of the balances of uninsured public funds held
by the depository, as shown on the last two immediately preceding
treasurer reports; or
(C) An amount otherwise prescribed in ORS 295.001 to 295.108.
(b) For a well capitalized depository that the State Treasurer
required to increase the depository's collateral pursuant to ORS
295.018, the percentage the State Treasurer required pursuant to
ORS 295.018 multiplied by the greater of:
(A) All uninsured public funds held by the depository, as shown
on the most recent treasurer report;
(B) The average of the balances of uninsured public funds held
by the depository, as shown on the last two immediately preceding
treasurer reports; or
(C) An amount otherwise prescribed in ORS 295.001 to 295.108.
(c) For an adequately capitalized depository or an
undercapitalized depository, 110 percent of the greater of:
(A) All uninsured public funds held by the depository; or
(B) The average of the balances of uninsured public funds held
by the depository, as shown on the last two immediately preceding
treasurer reports.
(14) 'Net worth' means a depository's total risk-based capital,
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.
(15) 'Pledge agreement' means a written agreement among an
insured institution, trust company or credit union, the State
Treasurer and a custodian that pledges the securities the insured
institution, trust company or credit union deposits with the
custodian as collateral for deposits of uninsured public funds
that the insured institution, trust company or credit union
holds. The board of directors or loan committee of the insured
institution, trust company or credit union must approve the
agreement and must continuously maintain the agreement as a
written record of the insured institution, trust company or
credit union.
(16) 'Public funds' or 'funds' means funds that a public
official has custody of or controls by virtue of office.
(17) 'Public official' means an officer or employee of this
state or an agency, political subdivision or public or municipal
corporation of this state, or a housing authority, that by law is
the custodian of or has control of public funds.
(18) 'Report of condition and income' means the quarterly
report a depository submits to the depository's primary federal
regulatory authority.
(19) 'Security' or 'securities' means:
(a) Obligations of the United States, including those of
agencies and instrumentalities of the United States, and of
government sponsored enterprises;
(b) Obligations of the International Bank for Reconstruction
and Development;
(c) Bonds of a state of the United States that:
(A) Are rated in one of the four highest grades by a recognized
investment service organization that has engaged regularly and
continuously for a period of not less than 10 years in rating
state and municipal bonds; or
(B) Having once been 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
the rating;
Enrolled House Bill 2613 (HB 2613-INTRO) Page 8
(d) Bonds of a county, city, school district, port district or
other public body in the United States that are 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 a county, city, school district, port district or
other public body that are issued pursuant to the Constitution or
statutes of the State of Oregon or the charter or ordinances of a
county or city within the State of Oregon, if the bonds meet the
rating requirement or are ruled to be eligible securities as
provided in paragraph (c) of this subsection;
(f) With the permission of the State Treasurer and in
accordance with rules the State Treasurer adopts, loans made to a
county, city, school district, port district or other public body
in the State of Oregon, if the borrower has not defaulted with
respect to the payment of principal or interest on any of the
borrower's loans within the preceding 10 years or during the
period of the borrower's existence if the borrower has existed
for less than 10 years;
(g) With the permission of the State Treasurer and in
accordance with rules the State Treasurer adopts, bond
anticipation notes that an authority issues, sells or assumes
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 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 engaged regularly and continuously for a period of not
less than 10 years in rating corporate debt obligations.
(20) 'Treasurer report' means a written report that an officer
of a depository that holds uninsured public funds deposits has
signed or authenticated and that sets forth as of the close of
business on a specified date:
(a) The total amount of uninsured public funds on deposit with
the depository;
(b) The total amount of public funds on deposit with the
depository;
(c) The net worth of the depository;
(d) The amount and nature of eligible collateral then on
deposit with the depository's custodian to collateralize the
depository's public funds deposits; and
(e) The identity of the depository's custodian.
(21) 'Treasurer report due date' means a date not less than 10
business days after the date a depository's report of condition
and income is due to be submitted.
(22) 'Trust company' means a trust company as defined in ORS
706.008.
(23) 'Undercapitalized' means a depository that the
depository's primary federal regulatory authority has classified
as undercapitalized, significantly undercapitalized or critically
undercapitalized.
(24)(a) 'Uninsured public funds' or 'uninsured public funds
deposits' means public funds deposited in a depository that
Enrolled House Bill 2613 (HB 2613-INTRO) Page 9
exceed the amounts insured or guaranteed as described in ORS
295.002 (1)(a) and (b).
(b) 'Uninsured public funds' or 'uninsured public funds
deposits' does not include public funds deposited in a
certificate of deposit or time deposit under ORS 295.004 { + (1)
or public funds that an Oregon depository arranges to deposit
into an insured deposit account under ORS 295.004 (2) + }.
(25) 'Value' means the current market value of securities.
(26) 'Well capitalized' means a depository that the
depository's primary federal regulatory authority has classified
as well capitalized.
SECTION 5. ORS 295.046 is amended to read:
295.046. (1) A bank depository may not accept a deposit of
public funds if the deposit would cause the aggregate of public
funds deposits made by any one public official in the bank
depository to exceed at any time the 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 custodian eligible securities valued at market value in an
amount at least equal to the amount of the excess 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 { + :
(a) + } Public funds deposits held by a bank depository in a
certificate of deposit or time deposit under ORS 295.004
{ + (1); or
(b) Public funds that an Oregon bank depository arranges to
deposit into an insured deposit account under ORS 295.004
(2) + }.
SECTION 6. ORS 295.046, as amended by section 15, chapter 101,
Oregon Laws 2010, is amended to read:
295.046. (1) A depository may not accept a deposit of public
funds if the deposit would cause the aggregate of public funds
deposits that any one public official makes in the depository to
exceed at any time the depository's net worth. If a depository's
net worth is reduced, the depository may allow public funds on
deposit in excess of the reduced net worth to remain if the
depository deposits with the depository's custodian eligible
securities valued at market value in an amount at least equal to
the amount of the excess public funds deposits. If the additional
securities required by this section are not deposited with the
custodian, the 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 public funds deposits a depository holds in a
certificate of deposit or time deposit under ORS 295.004 { +
(1); or
(b) Public funds that an Oregon depository arranges to deposit
into an insured deposit account under ORS 295.004 (2) + }.
SECTION 7. ORS 295.048 is amended to read:
295.048. (1) Notwithstanding ORS 295.046, a bank depository may
not permit the aggregate of public funds deposits on deposit with
Enrolled House Bill 2613 (HB 2613-INTRO) Page 10
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) 30 percent of the total aggregate uninsured 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.
(2) The State Treasurer shall notify each bank depository and
its custodian of the total aggregate uninsured public funds
deposits of all public officials in all bank 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 aggregate of uninsured public funds
deposits exceeds the amount set forth in subsection (1) of this
section, the bank depository shall, within three business days
after receipt of notice from the State Treasurer, cease accepting
deposits of uninsured public funds.
(4) Notwithstanding subsections (1) and (3) of this section:
(a) A bank depository may accept and hold uninsured 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 uninsured
public funds in excess of the limits provided in subsection (1)
of this section for a period not exceeding 90 days and eligible
securities are deposited with the bank depository's custodian as
collateral in an amount at least equal to the amount of the
uninsured public funds deposits in excess of the limits provided
in subsection (1) of this section.
(b) The limits of subsection (1) of this section do not apply
to public funds deposits held by a bank depository in a
certificate of deposit or time deposit under ORS 295.004 { + (1)
or public funds that an Oregon bank depository arranges to
deposit into an insured deposit account under ORS 295.004
(2) + }.
(c) A well capitalized bank depository or an adequately
capitalized bank depository may accept and hold public funds
deposits in excess of the limit provided in subsection (1)(d) 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 public funds deposits in excess of the limit
prescribed in subsection (1)(d) of this section.
SECTION 8. ORS 295.048, as amended by section 16, chapter 101,
Oregon Laws 2010, is amended to read:
295.048. (1) Notwithstanding ORS 295.046, a depository may not
permit the aggregate of public funds deposits on deposit with the
depository from all public officials to exceed at any time the
lesser of:
(a) 100 percent of the value of the depository's net worth, if
the depository is an undercapitalized depository;
Enrolled House Bill 2613 (HB 2613-INTRO) Page 11
(b) 150 percent of the value of the depository's net worth, if
the depository is an adequately capitalized depository;
(c) 200 percent of the value of the depository's net worth, if
the depository is a well capitalized depository;
(d) For a bank depository, 30 percent of the total aggregate
public funds deposits of all public officials in all bank
depositories as reported in the most recent notice the bank
depository received from the State Treasurer; or
(e) For a credit union depository, 30 percent of the total
aggregate public funds deposits of all public officials in all
credit union depositories as reported in the most recent notice
the credit union depository received from the State Treasurer.
(2) The State Treasurer shall notify each bank depository or
credit union depository and the depository's custodian of the
total aggregate public funds deposits of all public officials in
all bank depositories or credit union depositories, as
appropriate, based on the most recently submitted treasurer
reports. The State Treasurer shall give the notification required
by this subsection by the last day of the month in which the
depositories are required to submit a treasurer report.
(3) If a depository's aggregate of public funds deposits
exceeds the amount set forth in subsection (1) of this section,
the depository shall, within three business days after receiving
notice from the State Treasurer, cease accepting deposits of
public funds.
(4) Notwithstanding subsections (1) and (3) of this section:
(a) A depository may accept and hold public funds deposits in
excess of the limits specified in subsection (1) of this section
if the State Treasurer, upon good cause shown, approves the
depository's request to hold public funds in excess of the limits
specified in subsection (1) of this section for a period not
exceeding 90 days and eligible securities are deposited with the
depository's custodian as collateral in an amount at least equal
to the amount of the uninsured public funds deposits that exceeds
the limits specified in subsection (1) of this section.
(b) The limits specified in subsection (1) of this section do
not apply to public funds deposits a depository holds in a
certificate of deposit or time deposit under ORS 295.004 { + (1)
or public funds that an Oregon depository arranges to deposit
into an insured deposit account under ORS 295.004 (2) + }.
(c) A well capitalized depository or an adequately capitalized
depository may accept and hold public funds deposits that exceed
the limit specified in subsection (1)(d) or (e) of this section
if eligible securities are deposited with the depository's
custodian as collateral in an amount at least equal to the amount
of the uninsured public funds deposits that exceed the limit
specified in subsection (1)(d) or (e) of this section.
SECTION 9. { + The amendments to ORS 295.001, 295.004, 295.046
and 295.048 by sections 1 to 8 of this 2011 Act apply to public
funds deposits held on or after the effective date of this 2011
Act. + }
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Enrolled House Bill 2613 (HB 2613-INTRO) Page 12
Passed by House February 21, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 10, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2613 (HB 2613-INTRO) Page 13
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2613 (HB 2613-INTRO) Page 14
