Bill Text: OR HB3700 | 2010 | 1st Special Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to public funds; appropriating money; and declaring an emergency.
Spectrum: Committee Bill
Status: (Passed) 2010-03-29 - Chapter 101, (2010 Laws): Effective date March 29, 2010. [HB3700 Detail]
Download: Oregon-2010-HB3700-Introduced.html
Bill Title: Relating to public funds; appropriating money; and declaring an emergency.
Spectrum: Committee Bill
Status: (Passed) 2010-03-29 - Chapter 101, (2010 Laws): Effective date March 29, 2010. [HB3700 Detail]
Download: Oregon-2010-HB3700-Introduced.html
75th OREGON LEGISLATIVE ASSEMBLY--2010 Special 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 168
House Bill 3700
Sponsored by COMMITTEE ON RULES
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.
Allows State Treasurer to accept moneys. Continuously
appropriates moneys to State Treasurer for initial expenses.
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; appropriating money; 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
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) '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 { - . - } { + ; and
(c) The credit union or federal credit union complies with ORS
295.008. + }
(6) { - ' Custodian bank' or - } 'Custodian' means one of
the following institutions { - designated by the bank
depository for its - } { + that a depository designates for the
depository's + } own account:
(a) The Federal Home Loan Bank designated to serve this state,
or { - any - } { + a + } 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.
(7) 'Custodian's receipt' or 'receipt' means a document issued
by a custodian { - bank describing - } { + that describes + }
the securities { - deposited with it by a bank - } { + 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) { - Restraining a bank - } { + Restrains a + }
depository from making payments of deposit liabilities; or
(b) { - Appointing - } { + 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 the
bank - } { + that a + } depository { + holds, + } as shown on
the date of { - its - } { + 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 { - bank - }
depository on any given date means a sum equal to:
(a) For a well capitalized { - bank - } depository that { +
the State Treasurer + } has not { - been - } required to
increase { - its - } { + the depository's + } collateral
pursuant to ORS 295.018, 10 percent of the greater of:
(A) All uninsured public funds { - held by the bank - } { +
the + } depository { + holds + }, as shown on the most recent
treasurer report;
(B) The average of the balances of uninsured public funds
{ - held by the bank - } { + the + } depository { +
holds + }, 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 { +
the State Treasurer + } { - has been - } required to increase
{ - its - } { + the depository's + } collateral pursuant to
ORS 295.018, the percentage { - required by - } the State
Treasurer { + required + } pursuant to ORS 295.018 multiplied by
the greater of:
(A) All uninsured public funds { - held by the bank - } { +
the + } depository { + holds + }, as shown on the most recent
treasurer report;
(B) The average of the balances of uninsured public funds
{ - held by the bank - } { + the + } depository { +
holds + }, 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 - } { +
the + } depository { + holds + }; or
(B) The average of the balances of uninsured public funds
{ - held by the bank - } { + the + } depository { +
holds + }, as shown on the last two immediately preceding
treasurer reports.
(14) 'Net worth' { - of a bank depository means the - } { +
means a + } { + depository's + } 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 { + or
credit union + }, the State Treasurer and a custodian that
pledges the securities { - deposited by - } the insured
institution { + , + } { - or - } trust company { + or credit
union deposits + } with the custodian as collateral for deposits
of uninsured public funds { - held by - } { + that + } the
insured institution { + , + }
{ - or - } trust company { + or credit union holds + }.
{ - The agreement must be approved by - } The board of
directors or loan committee of the insured institution { + , + }
{ - or - } trust company { + or credit union must approve the
agreement + } and must { - be - } continuously
{ - maintained - } { + maintain the agreement + } as a written
record of the insured institution { + , + } { - or - } trust
company { + or credit union + }.
(16) 'Public funds' or 'funds' means funds { - under the
control or in the custody of - } { + that + } a public
official { + has custody of or controls + } by virtue of office.
(17) '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.
(18) 'Report of condition and income' means the quarterly
report { - submitted to a bank - } { + 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
{ - its - } 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 { - any - } { + a + } state of the United
States { + that + }:
(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 { + 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 { - any - } { + 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 { - any - } { + a + }
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 { + adopts + }, 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 - } { + defaulted + } 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 existence if that is - } { + 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 { - adopted by - } the State
Treasurer { + adopts + }, bond anticipation notes { - issued,
sold or assumed by - } { + 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 { - 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 - } { + that + } an officer of a
{ - bank - } depository that { - has in its possession - }
{ + holds + } uninsured public funds deposits { - setting - }
{ + 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 { - 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 - } { + the depository's + } custodian
to collateralize the
{ - bank - } depository's public funds deposits; and
(e) The identity of { - its - } { + the depository's + }
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 - } { + the depository's
primary federal regulatory authority has 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 - }
{ + (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.
(25) 'Value' means the current market value of securities.
(26) 'Well capitalized' means a { - bank - } depository
that { + + } { - is classified - } { + the depository's
primary federal regulatory authority has classified + } as well
capitalized { - by its 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, - } Unless a { - bank - }
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 - } { +
for + } the loss of the public funds in the { + public
official's + } 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 in an amount in excess of the amount
allowed in ORS 295.002 without requiring the { - bank - }
depository to show that
{ - it has - } { + the depository + } entered into a pledge
agreement or deposited securities pursuant to ORS 295.015 (1) if
the { - funds are initially deposited into a bank - }
{ + public official deposits the funds into a + } depository in
Oregon and the Oregon { - bank - } depository participates in
a program through which:
(a) The Oregon { - bank - } depository arranges { - for
deposit of - } { + 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 { - bank - } depository administers the funds
on behalf of the public official; and
(d) Other financial institutions { - participating - } { +
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 { - bank - }
depository { - by the public official - } for purposes of the
program.
(2) 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, any uninsured
public funds { - held by - } { + that + } the Oregon
{ - bank - } depository { + holds + } pending
{ - such - } placement must be collateralized as provided in
ORS 295.001 to 295.108 for other uninsured public funds deposits.
(3) The provisions of ORS 295.006, 295.013, 295.015, 295.018
and 295.037 { + and section 12 of this 2010 Act + } 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 described in this section - } { + Oregon
depositories that arrange to deposit public funds in accordance
with the program described in this section + }. The provisions of
ORS 294.035 and 295.001 { - requiring deposit of - } { + 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
{ - 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 bank - } { + A + } 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 the State Treasurer shall prescribe by rule
of each depository in which the public official deposits public
funds - } { + name and address of each depository in which the
public official deposits public funds, together with any other
information the State Treasurer may require by rule + }.
(3) If a public official changes a { - bank - } depository
in which the public official deposits public funds, the public
official shall report the information { + regarding the change
that is required by rule or + } required under subsection (2) of
this section { - or by rule regarding the change - } to the
State Treasurer within three business days after the effective
date of the change.
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. 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
will furnish, by the time specified by the Director of the
Department of Consumer and Business Services - } { + the
insured institution, trust company or credit union will furnish
to the Director of the Department of Consumer and Business
Services by the time the director specifies + }:
(A) The reports required under ORS 714.075 { - to the
director - } ; and
(B) Any other information the director considers necessary to
determine whether to advise the State Treasurer to order a
{ - bank - } depository to increase { - its - } { + the
depository's + } collateral under ORS 295.018 { + ; + }
{ - . - }
(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) { - Any - } { + An + } insured institution { + , + }
{ - or - } trust company { + or credit union + } that
{ - wishes - } { + intends + } to become a { - bank - }
depository shall file with the State Treasurer an initial written
report
{ - signed or authenticated by - } { + that + } an officer of
the insured institution { + , + } { - or - } trust company
{ - setting - } { + or credit union has signed or
authenticated and that sets + } 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 insured institution, trust
company or credit union will deposit with a + } custodian to
collateralize the public funds deposits; and
(d) The identity of { - its - } { + the + } custodian.
(4) An insured institution { + , + } { - or - } trust
company { + or credit union + } may be a { - bank - }
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 uninsured
public funds deposits. The provisions of ORS 295.006, 295.013,
295.015, 295.018, 295.037 and 295.061 { + and section 12 of this
2010 Act + } do not apply to an insured institution { + , + }
{ - or - } trust company { + or credit union + } that is a
{ - bank - } depository under this subsection.
(5) An insured institution { + , + } { - or - } trust
company { + or credit union + } that merges with, acquires all
the assets of, acquires ownership of or otherwise becomes a
successor entity to a { - bank - } depository that has entered
into a pledge agreement must execute a new pledge agreement or
provide evidence satisfactory to the State Treasurer { - of the
assumption by - } { + that + } the successor insured
institution { + , + } { - or - } trust company { - of all of
the - } { + or credit union has assumed all of the
depository's + } duties and obligations { - of the bank
depository - } under the existing pledge agreement. An insured
institution { + , + } { - or - } trust company { + or credit
union + } that fails to enter into a pledge agreement or provide
evidence { - of its assumption of - } { + that the insured
institution, trust company or credit union has assumed + } the
existing pledge agreement within the time specified by the State
Treasurer shall be treated as a { - bank - } depository
{ - holding - } { + that holds + } uninsured public funds { +
and + } that has failed to pledge adequate collateral under ORS
295.031.
SECTION 6. ORS 295.013 is amended to read:
295.013. (1) { - Upon receipt of securities from the bank
depository, - } { + When a custodian receives securities from a
depository, + } the custodian { - bank - } shall issue to the
State Treasurer, with a copy to the { - bank - } depository, a
custodian's receipt { - describing - } { + that describes + }
the securities.
(2) { - Each - } { + A + } custodian shall:
(a) Maintain an accurate inventory of the securities of each
{ - bank - } depository described in the custodian's receipts
{ - issued by the custodian - } { + that the custodian
issues + } to the State Treasurer { - , - } and adjust the
inventory to reflect withdrawals and substitutions of
securities { + that the custodian + } previously inventoried.
(b) Appraise the value of the securities added to and withdrawn
from the { - inventory of the bank depository, - } { +
depository's inventory + } and appraise 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 depository and setting - } { + each
depository has pledged and that sets + } forth the value of each
security and of the entire inventory of securities { + the
depository has + } pledged { - by the bank depository - } .
(d) Notify a { - bank - } depository in writing within one
business day after the custodian determines that the value of the
securities { - held by - } the custodian { + holds + } for
the { - bank - } depository is less than the minimum
collateral requirement for the { - bank - } depository.
(e) Notify the State Treasurer in writing within one business
day after the custodian learns that a { - bank - } depository
failed to increase the value of { - its - } { + the
depository's + } securities within the time required under ORS
295.015 (3)(b).
(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 - } { + the depository receives + } notice
under paragraph (d) of this subsection.
(g) Notify the State Treasurer within one business day after
the custodian determines that a bond in the inventory of a
{ - bank - } depository no longer meets the rating requirements
described in ORS 295.001 (19)(c) or (d).
SECTION 7. ORS 295.015 is amended to read:
295.015. Except as provided in ORS 295.018:
(1)(a) { - Each bank - } { + A + } depository throughout
the period { - of its possession of any - } { + during which
the depository possesses + }uninsured public funds deposits
shall maintain on deposit with { - its custodian, at its own
expense, securities having a value at least equal to its - }
{ + the depository's custodian, at the depository's own expense,
securities that have a value at least equal to the depository's
+ }minimum collateral requirement and as otherwise prescribed in
ORS 295.001 to 295.108. { - Such collateral shall be deposited
with the bank depository's custodian and shall be clearly
designated by the bank depository and the custodian as security
for the benefit of depositors of public funds under - } { + The
depository shall deposit the collateral with the depository's
custodian and the depository and the custodian shall clearly mark
the collateral as security for public funds deposited in
accordance with + }ORS 295.001 to 295.108.
(b) For purposes of this section, when pledged as collateral
for public funds deposits, loans described in ORS 295.001 (19)(f)
{ - shall - } { + must + } 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 - } { + that + } the State Treasurer { +
determines + } from time to time.
(c) { - When - } A bond anticipation note { + that + } is
pledged as collateral for public funds deposits { - , if - }
{ + and for which + } there is no readily determinable market
value { - for the note, it shall - } { + must + } 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 - } { + that + } the State Treasurer { + determines + }
from time to time.
(2) { - The bank - } { + A + } depository may deposit other
eligible securities with { - its - } { + the depository's + }
custodian and withdraw from deposit securities
{ - theretofore - } { + that the depository + } pledged to
secure deposits of public funds { - , - } if the remaining
securities have a value not less than { - its - } { + the
depository's + } minimum collateral requirement. The State
Treasurer shall execute { - such - } releases and surrender
{ - such - } custodian's receipts { - as - } { + that + }
are appropriate to effect substitutions and withdrawals of
matured and excess pledged securities.
(3) If a { - bank - } depository's minimum collateral
requirement increases because { - it - } { + the
depository + } ceases to be a well capitalized { - bank - }
depository as reflected in the { - bank - } depository's last
treasurer report, call report or other public filing, or if the
{ - bank - } depository receives notice from the
{ - bank - } depository's custodian under ORS 295.013 (2)(d)
or { + from + } the State Treasurer:
(a) Within three business days after the date on which the
{ - bank - } depository's minimum collateral requirement
increases, the
{ - bank - } depository shall notify { - its - } { + the
depository's + } custodian, the Director of the Department of
Consumer and Business Services and the State Treasurer in writing
that the { - bank - } depository's minimum collateral
requirement has increased, setting forth the
{ - bank - } depository's new minimum collateral requirement
and the
{ - bank - } depository's plan for increasing { - its - }
{ + the depository's + } pledged collateral to the minimum
collateral requirement; and
(b) Within five business days after the date on which the
{ - bank - } depository's minimum collateral requirement
increases, or within a longer period approved by the State
Treasurer and the director, the { - bank - } depository shall,
in accordance with the plan approved by the State Treasurer and
the director, tender to { - its - } { + the depository's + }
custodian additional securities { - having - } { + that have
a value + } sufficient { - value - } to increase the total
value of
{ - its - } { + the depository's + } securities pledged as
collateral for public funds deposits to the { + depository's + }
new minimum collateral requirement { - of the bank
depository - } .
(4) If a { - bank - } depository's minimum collateral
requirement decreases because { - it moves from being an
undercapitalized bank depository or an adequately capitalized
bank depository to being - } { + the depository becomes + } a
well capitalized { - bank - } depository, or because the State
Treasurer no longer requires the { - bank - } depository to
pledge additional collateral under ORS 295.018, the
{ - bank - } depository may:
(a) Notify { - its - } { + the depository's + } custodian
and the State Treasurer in writing that the { - bank - }
depository's minimum collateral requirement has decreased,
setting forth the { - bank - } depository's new minimum
collateral requirement; 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 minimum collateral requirement.
(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)(a) The State Treasurer may require { - any
bank - } { + a + } depository { + , + } during any period when
{ - it has in its possession any - } { + the depository
possesses + } uninsured public funds deposits { + , + } 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 uninsured public funds { - held by the bank - } { +
the + } depository { + holds + }; or
(B) The average of the balances of uninsured public funds
{ - held by the bank - } { + the + } depository { +
holds + }, as shown on the last two immediately preceding
treasurer reports.
(b) In consultation with the Director of the Department of
Consumer and Business Services, the State Treasurer may permit a
{ - bank - } depository to increase { - its - } { + the
depository's + } collateral as required under paragraph (a) of
this subsection over a period of time { - specified by - } the
State Treasurer { + specifies + } or may require a
{ - bank - } depository to increase { - its - } { + the
depository's + } collateral to an amount that is less than the
amount specified in paragraph (a) of this subsection.
(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 { + so
advises + }. If the { - bank - } depository is a national
bank { + , + } { - or - } a federally chartered savings
bank { + , + } { - or - } { + a + } savings and loan
association { + or a federal credit union + }, in giving advice
to the State Treasurer the director may rely exclusively on
information { - provided to the director by - } { + that
the + } federal regulatory agencies and { - by - } the bank,
savings bank { + , + } { - or - } association { + or federal
credit union provide to the director + } on forms
{ - prescribed by - } the director { + prescribes + }. As a
condition of being analyzed and reviewed by the director, a
national bank { + , + } { - or - } a federally chartered
savings bank { + , + } { - or - } { + a + } savings and loan
association { + or a federal credit union + } shall agree and
consent to provide the director with accurate, pertinent and
timely information.
(3) If the State Treasurer orders a { - bank - } depository
to increase { - its - } { + the depository's + } collateral
under subsection (1) of this section, the State Treasurer shall
give notice of the order to the director and the custodian of the
{ - bank - } depository within one business day after issuing
the order.
(4) { - Failure of the director - } { + The director's
failure + } to inform the State Treasurer of the condition of any
{ - bank - } 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.
(5) { - Any bank depository notified by - } { + A
depository that + } the State Treasurer { + notifies + } of the
increased collateral requirement shall:
(a) Within three business days after receiving the notice,
submit to the State Treasurer and the director the { - bank - }
depository's plan { - for increasing its - } { + to increase
the depository's + } collateral to the level { - required
by - } the State Treasurer { + requires + } under subsection
(1) of this section; and
(b) Within five business days after receiving approval of
{ - its - } { + the + } plan { + the depository + }
submitted under paragraph (a) of this subsection, or within a
longer period approved by the State Treasurer and the director,
increase { - its - } { + the depository's + } collateral to
the level { - required by - } the State Treasurer { +
requires + } under subsection (1) of this section and notify the
State Treasurer and the director { - of its compliance - }
{ + that the depository has complied + } by supplying copies of
the custodian's receipts for, or statement of activity showing,
the increased collateral.
(6)(a) If the State Treasurer does not receive the notice
required in subsection (5)(b) of this section within the
applicable period under subsection (5)(b) of this section, the
State Treasurer shall immediately send { + , + } { - notice - }
to each public official who has notified the State Treasurer that
the public official has public funds on deposit in that
{ - bank - } depository { - of the bank depository's
failure - } { + , notice that the depository has failed + } 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 - } { + has
complied + } with the increased collateral requirements, the
State Treasurer shall notify each public official { - who
was - } { + that the State Treasurer + } notified under
paragraph (a) of this subsection that the { - bank - }
depository { - is once again in compliance - } { + has
complied + }.
(7) A { - bank - } depository that does not comply with
subsection (5) of this section may not accept additional
uninsured public funds deposits.
(8) { + Records the State Treasurer receives or compiles that
contain + } the collateralization requirement for a
{ - bank - } depository and the amount of collateral { - held
by a custodian contained in records received or compiled by the
State Treasurer is - } { + a custodian holds are + } exempt
from public disclosure unless the public interest requires
disclosure in the particular instance.
(9) The State Treasurer may require a { - bank - }
depository that
{ - is required to increase its - } { + must increase the
depository's + } collateral under subsection (5) of this section
to file the reports required under ORS 295.061 (3).
SECTION 9. ORS 295.031 is amended to read:
295.031. (1) Within three business days after the State
Treasurer receives notice from a custodian pursuant to ORS
295.013 (2)(e), receives information from the Director of the
Department of Consumer and Business Services or other sources
under ORS 295.071 or 295.073, or otherwise receives information
{ - indicating - } { + that indicates + } that a
{ - bank - } depository has failed to pledge adequate
collateral with { - its - } { + the depository's + }
custodian, the State Treasurer shall send written notice of the
failure to each public official who has uninsured public funds on
deposit in the
{ - bank - } depository { - with respect to which the notice
was given or the information was received - } { + that is the
subject of the notice from the custodian or of the information
the State Treasurer received + }.
(2) Within five business days after the State Treasurer
receives notice from a custodian pursuant to ORS 295.013 (2)(f)
{ - indicating - } { + that indicates + } that a
{ - bank - } depository has { - once again - } pledged
adequate collateral with { - its - } { + the depository's + }
custodian, the State Treasurer shall send written notice to each
public official who was 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 15 business days after a public official
receives a notice from the State Treasurer pursuant to ORS
295.018 (6)(a), 295.031 (1) or 295.061 (4)(a), the public
official shall withdraw from the { - bank - } depository to
which the notice applies all uninsured public funds deposits.
(2) If a public official receives a notice from the State
Treasurer pursuant to ORS 295.018 (6)(a), 295.031 (1) or 295.061
(4)(a), beginning 15 business days after the public official
receives the notice, the public official may not deposit into the
{ - bank - } depository to which the notice applies any public
funds that, as a result of { - such a - } { + the + }
deposit, would be uninsured public funds deposits. The
prohibition on deposits continues until the public official
receives notice under ORS 295.018 (6)(b), 295.031 (2) or 295.061
(4)(b) indicating that the { - bank - } depository is in
compliance with ORS 295.013, 295.018 or 295.061, as applicable.
(3) Except as required by any applicable law or regulation, a
{ - bank - } depository may not impose { - any - } { +
an + } early withdrawal penalty or { - any - } { + a + }
forfeiture of interest with respect to a withdrawal
{ - made by - } { + that + } a public official { + makes + }
pursuant to this section.
SECTION 11. { + Sections 12, 13, 13a and 13b of this 2010 Act
are 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) If 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) Immediately after the loss occurs, the State Treasurer
shall take possession of securities that the closed depository
has segregated as collateral for uninsured public funds deposits
that the credit union depository holds. The State Treasurer shall
immediately liquidate as much of the collateral as the State
Treasurer estimates is necessary, based on the most recent
information available to the State Treasurer concerning the
amount of uninsured public funds the credit union depository
holds, and distribute the proceeds among public officials
entitled to the proceeds as provided in this section.
(b) The Director of the Department of Consumer and Business
Services or a receiver shall, within 20 days after issuing a
restraining order or taking possession of the credit union
depository, ascertain from the credit union depository's records
the amount of public funds on deposit in the credit union
depository and the amount of public funds that are covered by
deposit insurance or deposit guaranty bonds. The director or the
receiver shall certify the amounts to the State Treasurer and to
each public official who has public funds on deposit in the
credit union depository.
(c) Within 10 days after receiving the certification from the
director or the receiver, a public official who has public funds
on deposit in the credit union depository shall furnish to the
State Treasurer verified statements of the public funds that the
public official has on deposit in the credit union depository.
(3) When the State Treasurer receives the certification from
the director 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 that deposit insurance or deposit
guaranty bonds cover.
(4) After making the calculation described in subsection (3) of
this section, the State Treasurer shall assess the amount of
uninsured 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 proceeds from
the State Treasurer's liquidation of the credit union
depository's collateral under subsection (2) of this section,
plus the State Treasurer's estimate of the amount of proceeds the
State Treasurer expects to receive from collateral the State
Treasurer has not yet liquidated; and
(b) Second, against all other credit union depositories on a
proportionate basis determined as provided in subsection (5) of
this section. The amount the State Treasurer assesses against
another credit union depository may not exceed the credit union
depository's maximum liability.
(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, for each credit union depository, the total
amounts of all uninsured public funds deposits the credit union
depository reported on the credit union depository's last two
treasurer reports;
(b) Averaging the aggregate total amounts of all uninsured
public funds deposits all credit union depositories reported on
the credit union depositories' last two treasurer reports; 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 amount of a
public official's uninsured public funds deposits only against
the closed depository and not against other credit union
depositories, if the public official:
(a) Received appropriate notice about the closed depository
from the State Treasurer under ORS 295.018 (6)(a) or 295.031 (1)
and did not comply with ORS 295.034; or
(b) Failed to timely comply with the requirements of ORS
295.006 and, as a result of failing to timely comply, did not
receive appropriate notice about the closed depository from the
State Treasurer under ORS 295.018 (6)(a), 295.031 (1) or 295.061
(4)(a).
(7) Assessments the State Treasurer makes against the closed
depository are payable immediately from the proceeds of the
collateral delivered to the State Treasurer. Assessments the
State Treasurer makes against other credit union depositories 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 and liquidate the securities the credit
union depository segregated as collateral for uninsured public
funds deposits that the credit union depository holds, or shall
liquidate as much of the securities as is necessary to pay the
credit union depository's assessment.
(8) The State Treasurer shall distribute the amounts the State
Treasurer receives from the assessments 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 amount of uninsured public funds deposits
that the public officials claim.
(9) If, after all other available sources are applied, the
amounts the State Treasurer receives from the assessments are
inadequate to meet the total claims of the public officials to
uninsured public funds deposits, the public officials may make
claims against the closed depository as general creditors, but
not against a credit union depository other than the closed
depository.
(10)(a) If the final amount of proceeds the State Treasurer
receives from the liquidation of collateral from a closed
depository exceeds the amount of the assessment against the
closed depository under subsection (4)(a) of this section, the
State Treasurer shall pay the amount of the excess to the closed
depository.
(b) If the final amount of proceeds the State Treasurer
receives from the liquidation of collateral from other credit
union depositories exceeds the amount of the assessment against
the other credit union depositories under subsection (4)(b) of
this section, the State Treasurer shall pay the excess to the
other credit union depositories in proportion to the amounts the
other credit union depositories paid in assessments to the State
Treasurer.
(c) If the final amount of proceeds the State Treasurer
receives from the liquidation of collateral from a credit union
depository other than the closed depository under subsection (7)
of this section exceeds the amount of the assessment against the
credit union depository, the State Treasurer shall pay the excess
to the credit union depository.
(11) 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. { + (1) Until June 30, 2011, the State Treasurer
may accept moneys from any public or private source, including a
credit union or an association of credit unions, for the purpose
of paying initial expenses related to administering the
provisions of section 12 of this 2010 Act.
(2) The State Treasurer shall deposit moneys the State
Treasurer receives under this section into the Miscellaneous
Receipts Account established for the State Treasurer in the
General Fund. Notwithstanding the provisions of ORS 295.106,
moneys the State Treasurer receives under this section are
continuously appropriated to the State Treasurer for the purpose
of paying the State Treasurer's initial expenses related to
administering section 12 of this 2010 Act. The State Treasurer
shall expend the moneys in accordance with the terms and
conditions upon which the moneys were made available. + }
SECTION 13a. { + (1) The State Treasurer may decline to accept
from a credit union the certification and pledge agreement
necessary to qualify the credit union as a credit union
depository under ORS 295.008 unless:
(a) At the time the credit union submits the certification and
pledge agreement, at least four other credit unions have each
submitted:
(A) A certification and pledge agreement necessary to qualify
as a credit union depository under ORS 295.008; and
(B) A signed statement from a public official that indicates
that the public official intends to deposit more than $250,000 of
public funds with the credit union if the credit union qualifies
as a credit union depository; and
(b) The State Treasurer receives moneys under the provisions of
section 13 of this 2010 Act or ORS 295.106 that are sufficient to
pay for one year the State Treasurer's initial or continuing
expenses related to administering section 12 of this 2010
Act. + }
{ + (2)(a) The State Treasurer by order may withdraw from a
pledge agreement that the State Treasurer previously accepted
from a credit union under ORS 295.008 if + } { + fewer than
five credit unions are qualified as credit union depositories
under ORS 295.001 to 295.108 during any period of 180 days or
longer. + }
{ + (b) Except as provided in ORS 295.008 (4), a credit union
that is a party to a pledge agreement from which the State
Treasurer withdraws in accordance with paragraph (a) of this
subsection does not qualify as a credit union depository under
ORS 295.001 to 295.108. Within 10 business days after the State
Treasurer notifies the credit union that the State Treasurer has
withdrawn from the pledge agreement, the credit union shall
return all uninsured public funds deposits that the credit union
holds to the public official that deposited the public funds. + }
SECTION 13b. { + For any period of time during which fewer
than 10 credit unions are subject to pledge agreements with the
State Treasurer and a custodian under ORS 295.008, the State
Treasurer, notwithstanding ORS 295.001 (12), by rule may set the
maximum liability for a credit union depository at 20 percent of
the greater of:
(1) All uninsured public funds deposits the credit union
depository holds, as shown on the date of the credit union
depository's most recent treasurer's report; or
(2) The average of the balances of all uninsured public funds
deposits the credit union depository holds, as shown on the
credit union depository's last two immediately preceding
treasurer reports. + }
SECTION 14. ORS 295.041 is amended to read:
295.041. { - Upon the distribution of - } { + When the
State Treasurer distributes + }the proceeds of assessments and
liquidated collateral
{ - pursuant to ORS 295.037 by the State Treasurer to any
public official - } { + to a public official under ORS 295.037
or section 12 of this 2010 Act + }, the State Treasurer
{ - shall be - } { + is + } subrogated to all of the { +
public official's + } right, title and interest { - of the
public official - } against the closed depository, and
{ - shall share - } { + shares + } in any distribution of
{ - its - } { + the 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 be
paid to the bank - } { + . The State Treasurer shall pay the
remaining balance to the + } depositories against which the
assessments were made, pro rata in proportion to the assessments
{ - actually paid by - } each { - bank - } depository { +
paid + }. However, the closed depository may not share in
{ - any - } { + a + } distribution of the balance remaining.
{ - If - } The State Treasurer { + may charge expenses that
the State Treasurer + } incurs { - expenses - } in enforcing
the { + State + } 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 { + State + } Treasurer, they shall be treated as a
liquidation expense of the closed depository.
SECTION 15. 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 - } { + that + } any one
public official { + makes + } 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 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 public funds deposits { - held by a bank - } { +
a + } depository { + holds + } in a certificate of deposit or
time deposit under ORS 295.004.
SECTION 16. 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 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 uninsured public funds deposits of all public officials
in all bank depositories as reported in the most recent
notice { + the bank depository + } received { - by the bank
depository - } 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 { - its - } { + the
depository's + } custodian of the total aggregate uninsured
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
{ - bank - } { + the + } 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 - } { +
receiving + } 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 - }
{ + specified + } in subsection (1) of this section if the
State Treasurer, upon good cause shown, approves the { +
depository's + } request { - of the bank depository - } to
hold uninsured public funds in excess of the limits
{ - provided - } { + specified + } 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 - }
{ + that exceeds + } the limits { - provided - } { +
specified + } in subsection (1) of this section.
(b) The limits { - of - } { + specified in + } subsection
(1) of this section do not apply to public funds deposits
{ - held by a bank - } { + a + } depository { + holds + } in
a certificate of deposit or time deposit under ORS 295.004.
(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 - } { + that exceed the limit specified + } 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 public funds deposits { - in excess of the limit
prescribed - } { + that exceed the limit specified + } in
subsection (1)(d) { + or (e) + } of this section.
SECTION 17. ORS 295.053 is amended to read:
295.053. (1) If a { - bank - } depository ceases holding
uninsured public funds deposits, the { - bank - } depository's
custodian shall continue to hold the { + depository's + }
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 { + pledged + } securities { - be
held - } for a longer period, the custodian shall hold the
{ - bank - } depository's pledged securities for a period of 30
days.
(2) If any of a { - bank - } depository's pledged securities
mature during the period described in subsection (1) of this
section, the
{ - bank - } depository shall pledge substitute securities
that { - shall be held by its - } { + the depository's + }
custodian { + shall hold + } until { - the expiration of - }
the period { + expires + }.
(3) { - At the end of the period described in subsection (1)
of this section, If the bank depository has not, during that
period, held any uninsured public funds deposits, the custodian
shall tender the bank depository's securities to the bank
depository - } { + If a depository has not held uninsured
public funds deposits during the period described in subsection
(1) of this section, at the end of the period the depository's
custodian shall tender the depository's pledged securities to the
depository + }.
SECTION 18. ORS 295.061 is amended to read:
295.061. (1) On or before { + the date on which + } each
treasurer report { + is + } due { - date - } , each
{ - bank - } depository that { - has in its possession - }
{ + possesses + } uninsured public funds deposits of one or
more public officials shall file { - its - } { + the
depository's + } treasurer report with { - its - } { + the
depository's + } custodian { - bank - } and with the State
Treasurer.
(2) Each { - bank - } 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
three 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 { + the depository + }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 adequately capitalized { - bank - } depository or an
undercapitalized { - bank - } depository shall report { + to
the depository's custodian and to the State Treasurer at least
once each week + } the actual amount of uninsured public funds
deposits { + the depository holds. + } { - held by it at least
weekly to its custodian bank and to the State Treasurer. - }
(4)(a) If a { - bank - } depository fails to file { - any
of - } the reports or provide { - any of - } the notices
required under this section or fails to file { - any of - }
the notices or reports required under ORS 295.018, the State
Treasurer shall send a notice to each public official who has
uninsured public funds on deposit in the
{ - bank - } depository { - of the bank depository's
failure - } { + that the depository failed + } to comply.
(b) If, after giving notice under paragraph (a) of this
subsection, the State Treasurer receives notice that the
{ - bank - } depository has filed the required reports or
provided the required notices, the State Treasurer may notify
each public official who was notified under paragraph (a) of this
subsection that the
{ - bank - } depository { - is once again in compliance - }
{ + has complied + }.
(5) If a { - bank - } depository fails to comply with this
section, the { - bank - } depository shall, within three
business days after
{ - receipt of - } { + receiving + } notice from the State
Treasurer, cease accepting deposits of uninsured public funds.
SECTION 19. 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 that applies to become a
{ - bank - } 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 - } { + that + } 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
bank { + , + }
{ - or - } thrift { + or credit union + } regulatory
agency { + makes available to the State Treasurer or to the
Director of the Department of Consumer and Business Services + }.
SECTION 20. ORS 295.073 is amended to read:
295.073. The Director of the Department of Consumer and
Business Services shall advise the State Treasurer in writing of
any action the director takes or directs { - any bank - } { +
a + } 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 21. 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 unlimited + } 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 until it
is modified or withdrawn by notice in writing delivered or mailed
by registered or certified mail to the State Treasurer - } { +
continue until the depository delivers or mails, by registered or
certified mail, notice to the State Treasurer that modifies or
withdraws the offer + }. While the offer continues in effect, the
depository { - is bound to accept upon the terms therein
specified - } { + must accept in accordance with the terms of
the offer + } time deposits tendered by the State Treasurer.
(2) { - Any funds deposited by - } { + Funds + } the State
Treasurer { + deposits + } 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 persons - } { + that
a person + } 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 - } { + and considering + } the
distribution of the deposits among depositories so as to minimize
the possibility of loss of moneys.
SECTION 22. ORS 295.084 is amended to read:
295.084. (1) The State Treasurer may designate such banks
{ - as are necessary - } { + and credit unions + } within this
state as { + are necessary as + } depositories for { - the
collection of - } { + collecting + } drafts, checks,
certificates of deposit and coupons { - received by - } the
State Treasurer { + receives + } on account of any claim due the
state.
(2) { + If + }the State Treasurer { - , on receipt of
any - } { + receives a + } draft, check or certificate of
deposit { - , - } on account of a claim due the state, { + the
State Treasurer + } 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 { + State
Treasurer shall fix the + } compensation { - to be paid by - }
the depository { - shall be fixed by the State Treasurer
upon - } { + pays at + } the best terms { - obtainable
for - } the state { + can obtain + }.
SECTION 23. ORS 295.091 is amended to read:
295.091. (1) { - In selecting banks or trust companies to act
as depositories, public officials are not limited to the
appointment of banks or trust companies in any particular
locality. However, if banks or trust companies are engaged in
business at an office or offices within the corporate limits of
the political subdivision or public corporation and qualify to
receive the funds, such depositories 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 depositories in a manner that is
equitable and in the best interests of the political subdivision
or public corporation. - } { + A public official need not
deposit public funds in a depository in a particular locality,
but the public official shall give preference to a depository
that is qualified to receive the public funds and that is engaged
in business at an office within the corporate limits of the
public official's political subdivision or public corporation. If
more than one local qualifying depository exists, the public
official shall apportion the public funds among 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 - } pay { +
interest + } to the political subdivision or public corporation
{ - upon - } { + for + } deposits evidenced by certificates of
deposit or deposits that by agreement may not be withdrawn on
less than 30 days' notice,
{ - interest at such - } { + at 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 - } { +
accrues to and becomes + } a part of the fund the moneys of which
were deposited.
(4) This section does not apply to the State Treasurer.
SECTION 24. ORS 295.106 is amended to read:
295.106. The State Treasurer may charge { - bank - }
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 - } { + under + } 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 - } { + to pay 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 - } { + under + } 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 25. ORS 295.108 is amended to read:
295.108. (1) The State Treasurer shall adopt rules
{ - implementing - } { + to implement + } the provisions of
ORS 295.001 to 295.108.
(2) The State Treasurer shall design the treasurer report
required by ORS 295.061 { - . The report shall be designed - }
to minimize the regulatory burden of completing and submitting
the report and, to the greatest extent practicable, { + 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 report of condition
and income.
SECTION 26. 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 - } { + that the financial institutions
serve + }.
(b) Moneys { - paid to or collected by - } { + that + } a
financial institution or other entity { + receives or
collects + } 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 - } { + the financial institution must
collect and hold for loan servicing under the agreement before
remitting the moneys + } to the state agency, political
subdivision or public corporation or a third party.
(c) Moneys { - held by - } a trustee or escrow agent { +
holds + } 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 27. ORS 576.375 is amended to read:
576.375. (1) { - All - } Moneys { - collected or received
by any person - } { + a person collects or receives + } 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 - } { + that
makes + } the deposit for the purpose of carrying out the { +
commission's + } 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 { + collects or receives + }. Investments
{ - made by - } a commission { + makes + } 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 { + invests + } under subsection (3) of this section
is available to the commission in a manner consistent with the
commission's annual budget.
SECTION 28. ORS 711.410 is amended to read:
711.410. Except for transfers { - by a bank depository or the
State Treasurer of public funds or securities as required by ORS
295.001 to 295.108, all - } { + of public funds or securities
that a depository, as defined in ORS 295.001, or the State
Treasurer must make under ORS 295.001 to 295.108, + }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 29. { + (1) Sections 12, 13, 13a and 13b of this 2010
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, 295.108, 295.205, 576.375 and 711.410 by
sections 1 to 10, 14 to 23 and 25 to 28 of this 2010 Act become
operative January 1, 2011.
(2) The State Treasurer and the Director of the Department of
Consumer and Business Services may take any action before January
1, 2011, that is necessary to enable the State Treasurer and the
director to exercise, on and after January 1, 2011, all the
duties, functions and powers conferred on the State Treasurer and
the director by sections 12, 13, 13a and 13b of this 2010 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, 295.108, 295.205, 576.375 and 711.410 by
sections 1 to 10, 14 to 23 and 25 to 28 of this 2010 Act. + }
SECTION 30. { + Sections 12, 13, 13a and 13b of this 2010 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, 295.108, 295.205, 576.375 and 711.410 by
sections 1 to 10, 14 to 23 and 25 to 28 of this 2010 Act apply to
public funds on deposit on or after January 1, 2011. + }
SECTION 31. { + This 2010 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2010 Act takes effect on
its passage. + }
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