288 - oregon state legislature

Chapter 2882003 EDITION

Public Borrowing and Bonds Generally

FISCAL AGENCY FOR PUBLIC BOND PAYMENTS

288.010 Definitions for ORS 288.010 to 288.110288.020 Appointing banking institution as fiscal

agency; qualifications; duration288.030 Notice of appointment of agent; bonds and

coupons payable at agency288.040 Remitting funds by state and local treas-

urers to pay bonds and coupons288.050 Notice of receipt of funds288.060 Return of canceled bonds and coupons288.070 Release of treasurers from liability for

funds remitted288.090 Postage and express costs288.100 Certain bond issues not affected288.110 Civil liability of treasurers failing to com-

ply with law288.120 Destruction of bonds and coupons upon

payment; when destroyed; certification;responsibility of fiscal agency

FORMS OF GOVERNMENTAL UNIT BORROWING

288.150 Definitions for ORS 288.150 to 288.165288.155 When governmental unit may issue other-

wise authorized general obligation bondsand limited tax bonds; priority of securityinterest

288.160 Use of refunding bond proceeds; whengovernmental unit may issue otherwiseauthorized refunding bonds

288.162 Pledge of full faith and credit and taxingpower; insufficiency of lawfully availablefunds; action to compel payment

288.165 Short-term borrowing for current ex-penses; form of borrowing; procedure; ef-fect of debt limitation

BROKER COMMISSIONS288.310 Definitions for ORS 288.310 and 288.320288.320 Broker commissions prohibited

PAYMENT OR REISSUANCE OF LOST, MUTILATED OR DESTROYED

EVIDENCE OF INDEBTEDNESS288.410 Definitions for ORS 288.410 to 288.460288.420 Payment of matured instrument that has

been lost, mutilated or destroyed288.430 Issuance of duplicate for instrument that

has been lost, mutilated or destroyed288.435 When requirements of ORS 288.420 and

288.430 may be waived288.440 Form of duplicate instrument288.450 Waiver of requirement of indemnity bond288.460 Petition to circuit court; court order re-

quiring payment of instrument or issuanceof duplicate

BONDS GENERALLY288.500 Improper expenditure of proceeds of cer-

tain exempt bonded indebtedness; reme-dies; exception

288.505 Determining date of issuance of bondedindebtedness

288.513 Determining true cash value for bondedindebtedness

288.515 Definitions for ORS 288.515 to 288.600288.517 Policy concerning bond covenants288.518 Additional powers of municipality when

issuing revenue bonds288.520 Public body to determine interest, princi-

pal amount, discount, terms; form of au-thority to issue; maximum interest rate forstate bonds

288.523 Appointment of bond counsel; exceptionof ORS 279.712

288.525 Expenditure of bond proceeds for interestor redemption

288.530 Deferral of initial payment of principal onbonds; determination of interest periods

288.535 Use of seal288.540 Authorized signatures288.545 Form of bonds288.550 Preliminary official statement not required

in certain circumstances288.560 Destruction of bonds and coupons288.570 Appointment of paying agents288.580 County treasurer as paying agent288.590 Registered bond ownership not public re-

cord288.592 Refunding bonds288.594 Creation, perfection, priority and enforce-

ment of lien of pledge by public body; UCCnot applicable

288.596 Variable rate bonds; credit enhancementagreements

288.598 Authority to pay rebates and make in-vestments necessary for tax-exempt bondinterest

288.600 Issuance of bonds with taxable interestauthorized

REFUNDING BONDS288.605 Definitions for ORS 288.605 to 288.695288.610 Legislative findings; applicability of ORS

288.605 to 288.695288.615 Power to issue advance refunding bonds;

allowable purposes288.620 Review and approval by State Treasurer;

expenses288.625 Manner of issuance288.630 Oregon Municipal Debt Advisory Commis-

sion assistance288.635 Bonds to be refunded; time of redemption288.637 Early redemption; advance refunding; for-

ward current refunding

Title 27 (2003 Edition)

PUBLIC BORROWING AND BONDS

288.640 Redemption of advance refunding bonds288.645 Limit on advance refunding amount288.650 Investment of proceeds; approval by State

Treasurer288.655 Tax levies288.660 Trustee; use of proceeds; additional

pledges288.665 Advance refunding of revenue bonds; con-

ditions288.670 Refunding of certain general obligation

bonds; conditions288.675 Amounts credited to bond retirement not

indebtedness288.677 Amount credited to escrow account not

indebtedness288.680 Issuance of refunding bonds with other

bonds288.685 Rules288.690 Severability288.695 Short title

UNIFORM REVENUE BOND ACT288.805 Definitions for ORS 288.805 to 288.945

288.815 Procedure for municipality to issue re-venue bonds

288.825 Pledge of revenues; revenue estimates; ex-cluded revenue

288.835 Method of sale; findings288.845 Private negotiated sale of revenue bonds288.855 State authority to issue revenue bonds288.865 Preliminary official statement; content;

availability; waiver; exemption288.875 Public competitive bid sales; notice; bid

requirements288.885 Public competitive bid sale by municipal-

ity; notice of sale288.895 Competitive bid process by state288.915 Award on competitive bid288.925 Form of revenue bonds288.935 Other authority of municipality288.945 Short title

MISCELLANEOUS PROVISIONS288.950 Compliance with debt limit; effect of bond

interest on value


PUBLIC BORROWING AND BONDS GENERALLY 288.100

FISCAL AGENCY FOR PUBLIC BOND PAYMENTS

288.010 Definitions for ORS 288.010 to288.110. As used in ORS 288.010 to 288.110,unless the context otherwise requires:

(1) “Fiscal agency” means the bank ortrust company designated pursuant to ORS288.020.

(2) “Subdivision” means a municipal cor-poration, quasi-municipal corporation or civilsubdivision in this state. [Amended by 1987 c.869§7]

288.020 Appointing banking institutionas fiscal agency; qualifications; duration.(1) The State Treasurer may appoint, as fis-cal agency for payment of the bonds issuedby this state or by any subdivision, a rep-utable and responsible bank or trust com-pany. The appointment when so made shallcontinue for a period of two years unlesssooner revoked by the State Treasurer forvalid and sufficient reasons. An appointmentmay be renewed and when renewed shall befor a period not to exceed two years. TheState Treasurer may revoke the renewal ofan appointment for valid and sufficient rea-sons. Nothing in this subsection limits thenumber of times the appointment of a par-ticular bank or trust company as fiscalagency may be renewed.

(2) Until its successor has been ap-pointed, the bank or trust company namedshall act as the fiscal agency of the State ofOregon, in accordance with such terms asshall be agreed upon between the StateTreasurer and the agency. The fiscal agencyshall act as custodian of such securitiesowned by the State of Oregon as the StateTreasurer shall specify.

(3) If no such bank or trust company iswilling to accept appointment as fiscalagency, or if the State Treasurer considersunsatisfactory the terms under which such abank or trust company is willing so to act,the bonds and bond interest shall thereuponbecome payable at the State Treasury or atthe office of the treasurer or fiscal officer ofthe subdivision concerned, as the case maybe. [Amended by 1981 c.660 §13; 1987 c.869 §8; 1991 c.352§4; 2003 c.16 §2]

288.030 Notice of appointment ofagent; bonds and coupons payable atagency. The State Treasurer, immediatelyafter the establishment of the fiscal agency,shall publish a notice thereof in some finan-cial paper of general circulation in the cityin which the fiscal agency is to act on behalfof the state. Thereafter all bonds and cou-pons of the state or one of its subdivisionswhich are by their terms payable in a speci-fied city, shall be paid at the fiscal agency

appointed in that city. [Amended by 1987 c.869§9]

288.040 Remitting funds by state andlocal treasurers to pay bonds and cou-pons. Unless otherwise provided by law, theState Treasurer and the treasurer or otherfiscal officer of every affected subdivisionshall remit to the fiscal agency, before thematurity of any bonds or coupons payable atthe fiscal agency, sufficient moneys out ofany funds in the hands of any such treasureror other fiscal officer applicable to such pur-pose, for the redemption of such bonds orcoupons. [Amended by 1967 c.220 §1; 1991 c.352 §5]

288.050 Notice of receipt of funds.Upon the receipt of any funds by the fiscalagency, the agency shall notify the officersfrom whom the funds were received that thefunds have been received.

288.060 Return of canceled bonds andcoupons. (1) After payment of the bonds orcoupons issued by a subdivision for whichthe funds were remitted by the treasurer orother fiscal officer of the subdivision, thebonds or coupons shall be canceled and re-turned to the officer from whom the fundswere received, not less often than quarterlyby January 15, April 15, July 15 and October15 of each year. At the option of the treas-urer or other fiscal officer, the bonds andcoupons may be held for destruction as arestate bonds and coupons under ORS 288.120and may be destroyed in the same manner asstate bonds and coupons are destroyed underORS 288.120.

(2) After payment of the bonds or cou-pons issued by this state for which fundswere remitted by the State Treasurer, thebonds or coupons shall be canceled and heldfor destruction under ORS 288.120. [Amendedby 1975 c.462 §3; 1981 c.252 §1]

288.070 Release of treasurers from li-ability for funds remitted. Neither theState Treasurer nor the treasurer or otherfiscal officer of any subdivision shall be heldresponsible for funds remitted to the fiscalagency. The acknowledgment of the receiptof such funds, for which canceled bonds andcoupons have not been returned, shall be avoucher to such treasurer in any settlement.

288.080 [Repealed by 1995 c.259 §6]

288.090 Postage and express costs.Postage and express costs shall be propercharges against the state or subdivisiontherein for which they are incurred and shallbe paid to the fiscal agency and in turn beallowed the treasurer or other fiscal officerin settlement.

288.100 Certain bond issues not af-fected. Nothing in ORS 288.010 to 288.110shall be construed to affect any bond issuesexisting on May 20, 1911, or on February 17,


288.110 PUBLIC BORROWING AND BONDS

1943, that by their provisions are made pay-able at a fiscal agency in the City of NewYork designated before February 17, 1943.However, if desired by the holder, such bondissues and the interest thereon may be paidat the regular fiscal agency appointed in ac-cordance with ORS 288.020.

288.110 Civil liability of treasurersfailing to comply with law. If the StateTreasurer or the treasurer or other fiscal of-ficer of any subdivision neglects or refusesto perform the duties imposed by ORS288.010 to 288.110, the State Treasurer ortreasurer or other fiscal officer shall be lia-ble to the holder of any bonds or couponsaggrieved by such neglect, in a sum, recov-erable in an action at law against suchtreasurer and the bondsmen of such treas-urer, for twice the amount of the face valueof any such bonds or coupons as are dishon-ored on account of the neglect or refusal ofsuch officer to comply with the provisions ofORS 288.010 to 288.110.

288.120 Destruction of bonds and cou-pons upon payment; when destroyed;certification; responsibility of fiscalagency. (1) When the principal and interestupon bonds issued by this state must be paidonly at the office of the State Treasurer, thebonds and interest coupons surrendered tothe State Treasurer upon payment shall beretained by the State Treasurer for two yearsor until audited by the Secretary of State.Thereafter, the State Treasurer, shall destroythem. The State Treasurer shall prepare alist of the bonds and coupons destroyed andshall maintain a certificate signed by theState Treasurer that the bonds and couponsdescribed therein were destroyed by theState Treasurer on the date of the certif-icate.

(2) When the principal and interest uponbonds issued by this state must be paid atthe office of the fiscal agency or may be paidat either the office of the fiscal agency or theState Treasurer, bonds and interest couponssurrendered upon payment shall be destroyedby the fiscal agency. Bonds and interest cou-pons that must be destroyed by the fiscalagency under this subsection that are sur-rendered to the State Treasurer upon pay-ment shall be sent in due course by the StateTreasurer to the fiscal agency for de-struction.

(3) The fiscal agency shall destroy paidbonds and interest coupons under subsection(2) of this section not earlier than one yearafter the date upon which those bonds andcoupons are surrendered on payment. Foreach occasion on which bonds or coupons aredestroyed, the fiscal agency shall prepare adestruction certificate for bonds and a sepa-rate destruction certificate for coupons. A

destruction certificate shall contain a list ofthe bonds or coupons destroyed, the date ofdestruction and the signature of an author-ized agent of the fiscal agency, and shall befiled with the State Treasurer.

(4) The fiscal agency is responsible forproper payment and disposition of all bondsand coupons, and for any duplicate payments,payments to unauthorized persons and non-payment to authorized persons occurring asa result of destruction of bonds or couponsunder this section. [1975 c.462 §2]

FORMS OF GOVERNMENTAL UNIT BORROWING

288.150 Definitions for ORS 288.150 to288.165. As used in ORS 288.150 to 288.165:

(1) “Actual cost” has the meaning giventhe term under ORS 310.140.

(2) “Capital construction” has the mean-ing given the term under ORS 310.140.

(3) “Costs” when used with capital con-struction or improvements has the samemeaning as “actual costs” as defined underORS 310.140.

(4) “Credit agreement” means a note,letter of credit, line of credit or similaragreement in which a financial institutionagrees to loan funds to the governmentalunit, and the governmental unit pledges itsfull faith and credit and agrees to repay theamounts loaned over time, with or withoutinterest.

(5) “General obligation bond” means abond including a credit agreement, which isa full faith and credit obligation, and whichis payable from taxes which may be leviedwithout limitation by section 11, Article XIof the Oregon Constitution, and without lim-itation by section 11b, Article XI of the Ore-gon Constitution.

(6) “Governmental unit” means a unit oflocal government within the State of Oregon,including, but not limited to, cities, counties,school districts, special districts, public cor-porations and intergovernmental corpo-rations organized under the authority of ORS190.010.

(7) “Improvement” has the meaning given“capital improvements” under ORS 310.140.

(8) “Limited tax bond” means a bond orother obligation which is a full faith andcredit obligation, and which is payable fromany taxes which the issuer may levy withinthe limitations of section 11b, Article XI ofthe Oregon Constitution and either withinor without the limitations of section 11, Ar-ticle XI of the Oregon Constitution.

(9) “Structure” has the meaning giventhe term under ORS 310.140. [1991 c.902 §98; 1997c.541 §366]



288.155 When governmental unit mayissue otherwise authorized general obli-gation bonds and limited tax bonds; pri-ority of security interest. (1) If authorizedby law other than ORS 288.150 to 288.165 andin the manner provided by law, a govern-mental unit may issue general obligationbonds when:

(a) The question of issuing the specificbonds has been approved by the electors ofthe issuing governmental unit or the bondsreplace outstanding general obligation bondspursuant to ORS 288.160; and

(b) The general obligation bonded indebt-edness will be incurred for capital construc-tion or improvements.

(2) In addition to the authority to issuelimited tax bonds provided by other pro-visions of law, a governmental unit also isauthorized to issue limited tax bonds in thefollowing circumstances:

(a) When a governmental unit is author-ized by a statute or charter to issue generalobligation bonds without submitting thequestion of the issuance thereof to its elec-tors, such governmental unit may exercisesuch statutory or charter authority to issuelimited tax bonds for the same purposes andsubject to the same terms and conditions ofsuch statutory or charter authority.

(b) When the electors of a governmentalunit have authorized the issuance of generalobligation bonds for a particular purpose, thegoverning body, in its discretion and to carryout such purpose, may issue all or a portionof such bonds as limited tax bonds.

(3) Notwithstanding this section or anyother provision of law requiring bonds to beauthorized by ordinance, the limited taxbonds authorized by this section shall be is-sued pursuant to a resolution or ordinanceof the governing body of the issuing govern-mental unit.

(4) For the purpose of paying all principalof and interest on any limited tax bonds au-thorized by this section or by any other pro-vision of law, the issuing governmental unitmay, subject only to the limitations of sec-tion 11b (1), Article XI of the Oregon Con-stitution, calculate, assess, levy and collecteach fiscal year a tax on all taxable propertywithin its boundaries. The amount of suchtax shall be sufficient to pay all principal ofand interest on such limited tax bonds whichare due and payable in that year and to re-plenish any debt service reserves required forsuch limited tax bonds. In computing theamount of such tax, the governmental unitshall deduct from the total amount otherwiserequired the amount of any other fundswhich are reasonably expected to be avail-able to pay the principal and interest coming

due on such limited tax bonds during thefiscal year in question.

(5) A governmental unit that has out-standing general obligation or limited gen-eral obligation bonds, on an annual basis andsubject to any applicable covenants oragreements which limit payment of certainobligations to particular sources of funds,shall budget and appropriate amounts suffi-cient to pay in each succeeding annual pe-riod debt service on such bonds. However,this subsection does not require the govern-mental unit to adopt a supplemental budgetto pay the principal and interest coming dueon such bonds, or on limited tax bonds, inthe fiscal year in which such bonds are au-thorized and issued, but the governmentalunit may pay such principal and interestfrom any lawfully available source of fundswithout adopting a supplemental budgettherefor.

(6) When issuing limited tax bonds, agovernmental unit may:

(a) Establish the maturity schedule, in-terest rates, including variable or adjustablerates of interest, redemption provisions andother terms of the limited tax bonds. Not-withstanding this subsection, the governingbody, in the ordinance or resolution author-izing the issuance of such bonds or notes,may delegate to any elected or appointed of-ficial or employee of the governmental unitthe authority to determine the maturitydates, principal amounts, redemption pro-visions, interest rates or the method of de-termining a variable or adjustable interestrate, denominations and other terms andconditions of such bonds which are not ap-propriately determined at the time of enact-ment of the authorizing ordinance orresolution, which delegated authority shallbe exercised subject to the applicable re-quirements of law and such limitations andcriteria as may be set forth in such ordi-nance or resolution;

(b) Pledge as additional security for thelimited tax bonds all or any portion of itsrevenues of whatever kind or nature andfrom whatever source derived which, underapplicable law, are not specifically restrictedto uses other than the payment of theamounts owing on such bonds, including butnot limited to excise taxes, property taxesand other taxes of whatever kind or nature,revenues derived from any public utilities orother revenue producing enterprises operatedby the governmental unit or agencies or in-strumentalities thereof, user charges, busi-ness and license fees, fines and penalties, andmake and enter into covenants with theowners of such bonds to pay all or any por-tion of the amounts owing thereon out of allor any portion of such revenues;



(c) Grant mortgages, trust deeds or secu-rity interests in property which is financedwith the limited tax bonds and related prop-erty, in order to enhance the security oflimited tax bonds or the obligations of thegovernmental unit under or with respect toany related credit enhancement device. Forpurposes of this subsection, “relatedproperty” shall include any tangible personalor real property comprising a part of a sys-tem such as a water, sewer or other publicutility system of which the financed propertyis a part, and shall also include any tangiblepersonal or real property which is func-tionally related to or used in connection withthe property financed;

(d) Obtain a credit enhancement deviceproviding additional security for the paymentof all or any portion of the amounts owingunder such bonds or for the purpose of fund-ing, in lieu of cash, all or any portion of anydebt service reserve established with respectto such bonds. The governmental unit maypledge as security for its obligations arisingunder or with respect to any credit enhance-ment device any revenues pledged to thepayment of the related bonds, and such obli-gations shall in any event be payable fromthe same sources from which such bonds arepayable. For purposes of this subsection,“credit enhancement device” means a letterof credit, line of credit, municipal bond in-surance policy, standby purchase agreementor other device or facility used to enhancethe creditworthiness or marketability of mu-nicipal bonds;

(e) Enter into agreements with bondtrustees and deposit funds with trustees forthe benefit of bond owners and the providersof credit enhancement devices for bonds;

(f) Enter into covenants for the benefitof bond owners or the providers of credit en-hancement devices for bonds which are in-tended to improve the security of bondowners or providers of credit enhancementdevices, or to maintain the tax exempt statusof interest payable on bonds or credit en-hancement agreements. Such covenants mayinclude, but are not limited to, covenants re-garding the issuance of additional bonds andother financial obligations, the impositionand collection of any revenues which securethe bonds, and the priority of payment ofbonds and other financial obligations of thegovernmental unit; and

(g) Establish a debt service reserve forthe purpose of paying when due all amountsowing on such bonds, which debt service re-serve may be funded out of the proceeds de-rived from the issuance and sale of suchbonds or from such other sources as thegoverning body of the governmental unit maydetermine.

(7) A security interest granted by a gov-ernmental unit under authority of ORS288.150 to 288.165 shall attach and be per-fected on the date the security interest isgranted or the date the governmental unittakes possession of the property in which thesecurity interest is granted, whichever islater. A security interest authorized by ORS288.150 to 288.165 shall have priority over allother liens and claims. [1991 c.902 §99; 1993 c.97§5]

288.160 Use of refunding bond pro-ceeds; when governmental unit may issueotherwise authorized refunding bonds. (1)Proceeds of refunding bonds authorized bythis section shall be used solely to refundbonds and pay related costs and expenses,and shall not be used to pay for costs of op-erations or costs of projects not attributableto the refunding.

(2) If authorized by law other than ORS288.150 to 288.165 and in the manner pro-vided by law, a governmental unit may issuegeneral obligation bonds to refund outstand-ing bonded indebtedness or to reimburse thegovernmental unit for costs of capital con-struction or improvements, if:

(a) The refunding general obligationbonds have been approved by the electors ina manner that qualifies under section 11(11)(d)(ii), Article XI of the Oregon Constitu-tion, and the obligations which are refunded,or the first obligations in the series, if therefunding general obligation bonds are partof a series of refundings, or the costs whichare to be reimbursed, were incurred for cap-ital construction or improvements; or

(b) The refunding general obligationbonds replace an issue of outstanding generalobligations bonds which were incurred forcapital construction or improvements.

(3) For the purposes of this section, re-funding general obligation bonds shall bedeemed to replace outstanding general obli-gation bonds if:

(a) The refunded general obligation bondsare paid or lawfully deemed paid upon issu-ance of the refunding general obligationbonds; and

(b) The net proceeds of the refundingbonds shall be used to pay only the debt ser-vice on the refunded bonds and the costs ofissuance of the refunding bonds; and

(c) The bond refunding satisfies at leastone of the following tests:

(A) The principal amount of the refund-ing general obligation bonds does not exceedthe outstanding principal amount of the re-funded general obligation bonds, plus theamount of any authorized but unissued gen-eral obligation bonds of the governmentalunit; or



(B) The total amount of principal and in-terest payable on the refunding general obli-gation bonds does not exceed the totalamount of principal and interest payable onthe refunded bonds as of the date of issuanceof the refunding general obligation bonds; or

(C) The present value of the debt serviceon the refunding general obligation bondsdoes not exceed the present value of the debtservice on the refunded general obligationbonds, with the present values calculated atthe refunding bond yield.

(4) For purposes of section 11 (13) and11b (3)(b), Article XI of the Oregon Consti-tution:

(a) If refunding general obligation bondsreplace an issue of general obligation bonds,the refunding general obligation bonds shallbe deemed to have been issued on the dateof issuance of the bonds which are replaced,or the first issue of general obligation bonds,if the refunding general obligation bonds arepart of a series of refundings; and

(b) If the bonds which are replaced wereapproved by the electors, the refunding gen-eral obligation bonds shall be deemed to havebeen specifically approved by the vote whichapproved the bonds which are replaced, orthe first issue, in a series of refundings.

(5) Notwithstanding ORS 221.200, 255.085,287.056 or any other law to the contrary, aballot measure authorizing issuance of re-funding general obligation bonds need notstate the principal amount of refunding gen-eral obligation bonds, so long as the refund-ing bonds comply with subsection (3) of thissection. A ballot measure may authorize is-suance of general obligation bonds to refunda specific series of outstanding general obli-gation bonds, or may authorize issuance ofgeneral obligation bonds to refund all or anyportion of the outstanding bonds or futuregeneral obligation bonds, or any combinationthereof.

(6) Refunded general obligation bondsshall be deemed paid within the meaning ofsubsection (3) of this section if:

(a) The refunded general obligation bondsare deemed paid or defeased under the pro-visions of the documents authorizing issu-ance of the refunded general obligationbonds; or

(b) The governmental unit complies withORS 288.677.

(7) If a governmental unit issues generalobligation bonds to refund general obligationbonds that were issued before December 5,1996, the refunded general obligation bondsand the refunding general obligation bondsshall be treated as having been incurred tofinance capital construction and improve-ments under the laws in effect at the time

the refunded bonds were issued. The defi-nitions described in section 11 (13), ArticleXI of the Oregon Constitution, or statutesenacted to interpret section 11 (13), ArticleXI of the Oregon Constitution, shall not ap-ply to the refunded bonds or the refundingbonds.

(8) A governmental unit may issue re-funding bonds to refund obligations describedin section 11 (5)(a)(A) and (B), Article XI ofthe Oregon Constitution. Ad valorem prop-erty taxes may be levied and collected to payrefunding bonds authorized by this subsec-tion to the same extent that ad valoremproperty taxes could be levied and collectedto pay the obligations that are refunded.

(9) A governmental unit may issue re-funding bonds to refund bonds that are notgeneral obligations or obligations describedin section 11 (5)(a)(A) and (B), Article XI ofthe Oregon Constitution, but are secured byad valorem property taxes. Ad valorem prop-erty taxes may be levied and collected to payrefunding bonds authorized by this subsec-tion to the same extent that ad valoremproperty taxes could be levied and collectedto pay the bonds that are refunded. [1991 c.902§100; 1995 c.333 §29; 1997 c.541 §366a]

288.162 Pledge of full faith and creditand taxing power; insufficiency of law-fully available funds; action to compelpayment. (1) As used in this section:

(a) “Lawfully available funds” means re-venues or other moneys of a governmentalunit from whatever source derived, includingbut not limited to moneys credited to thegovernmental unit′s general fund, revenuesfrom an ad valorem tax authorized to belevied under the governmental unit′s perma-nent rate limit under sections 11 and 11b,Article XI of the Oregon Constitution, andrevenues derived from other taxes levied bythe governmental unit in accordance withand subject to limitations and restrictionsimposed under applicable law or contract,that are not dedicated, restricted or obligatedby law or contract to an inconsistent ex-penditure or use.

(b) “Obligation” has the meaning giventhat term in ORS 288.594.

(2) When a governmental unit pledges itsfull faith and credit and taxing powers to therepayment of an obligation, the pledge con-stitutes an enforceable promise or contractby the governmental unit:

(a) To pay the obligation out of lawfullyavailable funds of the governmental unit; and

(b) If lawfully available funds are insuffi-cient to pay when due the amounts owing onthe obligation, to levy, impose and collect atax that is within the authority of the gov-ernmental unit to levy, impose and collect in



an amount sufficient to pay the amounts ow-ing under the obligation, including past dueamounts and penalties.

(3) If a governmental unit fails to paywhen due an amount owing under an obli-gation secured by a pledge of the full faithand credit and taxing powers of the govern-mental unit, the owner of the obligation, ora trustee appointed to act on behalf of theowner, may bring an action in the circuitcourt for the county in which the principaloffices of the governmental unit are locatedto compel the governmental unit to:

(a) Appropriate and expend sufficientlawfully available funds to pay the amountsowing on the obligation; or

(b) If lawfully available funds are insuffi-cient to pay when due the amounts owing onthe obligation, levy, impose and collect a taxthat is within the authority of the govern-mental unit to levy, impose and collect in anamount sufficient to pay the amounts owingunder the obligation, including past dueamounts and penalties.

(4) An owner of the obligation, or a trus-tee appointed to act on behalf of the owner,may initiate a proceeding to impose remedialsanctions under ORS 33.055 against membersof a governing body for failure to complywith an order of the court under this sub-section. [2003 c.195 §4]

288.165 Short-term borrowing for cur-rent expenses; form of borrowing; proce-dure; effect of debt limitation. (1) Subjectto any applicable limitations imposed by theConstitution or laws of the State of Oregonor the charter, ordinance or resolution of agovernmental unit, a governmental unit orthe State of Oregon, acting through the StateTreasurer pursuant to ORS 293.173, mayborrow money by entering into a creditagreement, or issuing notes, warrants, short-term promissory notes, commercial paper orother obligations:

(a) In anticipation of taxes, grants orother revenues for purposes that include, butare not limited to, the payment of currentexpenses;

(b) To provide interim financing for capi-tal assets to be undertaken by the govern-mental unit; or

(c) To refund outstanding obligations.(2) To secure obligations authorized un-

der this section, a governmental unit or theState Treasurer may:

(a) Pledge its anticipated taxes, grants,other revenues, the proceeds of any bonds orother permanent financing, or any combina-tion thereof;

(b) Segregate any pledged funds in sepa-rate accounts that may be held by the gov-

ernmental unit, the State Treasurer or thirdparties;

(c) Enter into contracts with third par-ties to obtain standby lines of credit or otherfinancial commitments designated to provideadditional security for obligations authorizedby this section;

(d) Establish any reserves deemed neces-sary for the payment of the obligations; and

(e) Adopt resolutions and enter intoagreements containing covenants and pro-visions for protection and security of theowners of obligations, which shall constituteenforceable contracts with such owners.

(3) Obligations authorized by this sectionthat are issued in anticipation of taxes orother revenues and any obligations author-ized by this section that are issued to refundthem may not be issued prior to the begin-ning of, and shall mature not later than, theend of the fiscal period in which the taxesor other revenues are expected to be re-ceived. Obligations issued by a governmentalunit in anticipation of taxes or other reven-ues may not be issued in an amount greaterthan 80 percent of the amount budgeted tobe received in the fiscal period in which theobligations are issued.

(4) Obligations authorized by this sectionthat are issued in anticipation of a grant orto provide interim financing for capital as-sets shall mature not later than five yearsafter the obligations are issued and may beredeemed beginning not later than one yearafter the grant is expected to be received orthe capital asset is projected to be completed.

(5) Notwithstanding subsections (3) and(4) of this section, a school district, educa-tion service district, community college dis-trict or community college service districtmay issue obligations that are issued in an-ticipation of taxes, grants or other revenuesto mature not later than 13 months after thedate the obligations were issued.

(6) Refunding obligations issued pursuantto subsection (1)(c) of this section shall ma-ture not later than five years after the re-funding obligations are issued.

(7) The debt limitations imposed by lawor the charter of any governmental unit donot affect the right of any governmental unitto issue obligations under authority of thissection, nor are any of the obligations to betaken into consideration in determining thepercentage or extent to which the govern-mental unit is indebted under the debt limi-tation. Obligations issued to refundoutstanding obligations are not considered tobe within any of such debt limitations.

(8) Except as provided in this section,obligations authorized by this section may bein any form and contain any terms, including



provisions for redemption at the option of theowner and provisions for the varying of in-terest rates in accordance with any index,banker′s loan rate or other standard.

(9) The governing body of an issuinggovernmental unit, in the ordinance or reso-lution authorizing the issuance of obligationsunder this section, may delegate to anyelected or appointed official or employee ofthe governmental unit the authority to de-termine maturity dates, principal amounts,redemption provisions, interest rates or themethod for determining a variable or adjust-able interest rate, denominations and otherterms and conditions of such obligations thatare not appropriately determined at the timeof enactment or adoption of the authorizingordinance or resolution, which delegated au-thority shall be exercised subject to applica-ble requirements of law and such limitationsand criteria as may be set forth in such or-dinance or resolution. Except to the extentof any such delegation, the governmentalunit or the State Treasurer shall determine:

(a) The maximum effective rate of inter-est the obligations shall bear;

(b) The manner of sale;(c) The discount, if any, the govern-

mental unit may allow;(d) The terms and conditions by which

the obligations may be redeemed prior tomaturity;

(e) The maturities of the obligations;(f) The form and denominations of the

notes or other obligations; and(g) All other terms and conditions related

to the sale of the obligations.(10) The governmental unit or the State

Treasurer may contract with third parties toserve as issuing, paying and authenticatingagents for any obligations authorized by thissection.

(11) Obligations authorized by this sec-tion may be sold at public or private saleupon such terms as the governmental unitor the State Treasurer finds advantageous,with such disclosure as the governmentalunit or State Treasurer deems appropriate.ORS 287.040 applies to obligations issued bygovernmental units under this section.

(12) As used in this section, “fiscalperiod” means:

(a) In the case of a governmental unit, afiscal year.

(b) In the case of the State of Oregon, abiennium. [1991 c.902 §101; 1993 c.97 §6; 2002 s.s.1 c.1§1; 2002 s.s.4 c.1 §4; 2003 c.195 §14]

BROKER COMMISSIONS

288.310 Definitions for ORS 288.310and 288.320. As used in ORS 288.310 and288.320, unless the context otherwise re-quires:

(1) “Subdivision” means any municipalcorporation or civil subdivision.

(2) “Broker” means any person, firm,agent, factor, intermediary, partnership, cor-poration, association, bond house, stockbro-ker or bond broker.

(3) “Commission” means commissions,percentage fees, brokerage, remuneration orother charges.

(4) “Obligations” means bonds, notes,warrants or other obligations of the state ora subdivision. [Formerly 287.702; 1959 c.213 §1; 1979c.837 §2]

288.320 Broker commissions prohib-ited. (1) Neither the state nor any subdivi-sion, nor any officer or agent thereof, shallpay, directly or indirectly, any commission toany broker for preparing, supervising orhandling the proceedings of, or for financingor underwriting the sale of, or for acting inan advisory capacity in connection with theissuance or proposed issuance or sale of theobligations of the state or a subdivision.

(2) Nothing contained in this sectionshall prevent the state or any subdivisionfrom paying a reasonable fee for financialprogramming and marketing assistance basedon the value of the service rendered in con-nection with the issuance or proposed issu-ance or sale of the obligations of the stateor of a subdivision.

(3) Nothing contained in this sectionshall prohibit the state or any subdivisionfrom entering into a bona fide agreement topay, nor from paying, reasonable attorneyfees to duly licensed attorneys who are notalso brokers and to them only, without dis-tribution or division with any broker, as ac-tual compensation for furnishing legal adviceto the state or the subdivision, or in settle-ment of opposing attorney fees arising fromclaims or litigation against the state or thesubdivision, or for actual legal work per-formed in the preparation of the proceedingsrelating to issues of the obligations, or forthe examination of transcripts of proceedingsrelating thereto, or for the furnishing ofopinions as to the regularity of such pro-ceedings or as to the validity of such obli-gations. [Formerly 287.704; 1959 c.213 §2; 1979 c.837§3; 1987 c.158 §40]



PAYMENT OR REISSUANCE OF LOST,MUTILATED OR DESTROYED

EVIDENCE OF INDEBTEDNESS288.410 Definitions for ORS 288.410 to

288.460. As used in ORS 288.410 to 288.460,unless the context requires otherwise:

(1) “Evidence of indebtedness” includesinterest coupons originally attached to bondsissued by an issuer even though detachedtherefrom subsequent to the date on whichsuch bonds were issued.

(2) “Duplicate” means a duplicate of aninstrument.

(3) “Governing body” means the person,board, commission, council or other body au-thorized to direct the issuance of instrumentsfor the issuer.

(4) “Indemnity bond” means an under-taking conditioned that the asserted ownerof an instrument, as principal, will protectthe issuer and the paying officer against lossor liability resulting from any demand orpayment of the principal of or interest on aninstrument and that such asserted owner willsurrender such instrument to the paying of-ficer if it comes into the possession of theasserted owner.

(5) “Instrument” means any lost, muti-lated or destroyed evidence of indebtednessof an issuer, other than warrants or checks.

(6) “Issuer” means the state, county, mu-nicipality, district or civil subdivision whichhas issued an instrument.

(7) “Lost” means lost or stolen for alength of time and under circumstances thatindicate that the instrument has been de-stroyed or irrevocably lost, that it is not heldby any person as the property of the personand that it will not be the basis of a claimagainst the issuer.

(8) “Mutilated” means defacement of aninstrument to the extent that its negotiationmay be impaired.

(9) “Paying officer” means the public of-ficer, other than a fiscal or paying agent, towhom instruments may be presented for pay-ment. [1959 c.410 §1]

288.420 Payment of matured instru-ment that has been lost, mutilated ordestroyed. (1) The paying officer shall paythe principal of or interest on any instru-ment at or after maturity when, except asprovided in subsections (2) and (3) of thissection, the asserted owner of the instru-ment:

(a) Submits a satisfactory affidavit de-scribing the instrument and the circum-stances surrounding the acquisition of theinstrument and giving a detailed statementof the circumstances surrounding its loss,mutilation or destruction;

(b) Surrenders the instrument, if muti-lated and in the possession of the assertedowner; and

(c)(A) Furnishes an indemnity bond exe-cuted by two or more sureties satisfactory tothe paying officer and qualifying as in thecase of sureties for bail for twice the faceamount of the instrument plus interest duethereon; or

(B) Furnishes an indemnity bond exe-cuted by a surety company licensed to dobusiness in the state for the face amount ofthe instrument plus interest due thereon.

(2) If the asserted owner does not havepersonal knowledge of the information thatmust be contained in the affidavit requiredunder subsection (1)(a) of this section, theperson having the personal knowledge maymake the affidavit.

(3) If the face amount of an instrumentplus interest due thereon is $1,000 or more,a surety company licensed to do business inthe state must execute the indemnity bondrequired under subsection (1) of this section.[1959 c.410 §2; 2003 c.14 §143]

288.430 Issuance of duplicate for in-strument that has been lost, mutilatedor destroyed. (1) If an instrument has notyet matured, the governing body of the issuershall direct the appropriate officer to executeand deliver a duplicate to the asserted ownerof such instrument when, except as providedin subsection (2) of this section, such as-serted owner:

(a) Submits a satisfactory affidavit de-scribing the instrument and the circum-stances surrounding acquisition of suchinstrument and giving a detailed statementof the circumstances surrounding its loss,mutilation or destruction; and

(b) Surrenders the instrument, if muti-lated and in the possession of the assertedowner; and

(c) Furnishes an indemnity bond executedby a surety company licensed to do businessin the state for the face amount of the in-strument plus interest due and to becomedue thereon; and

(d) Deposits a sum sufficient to pay theexpenses of issuing a duplicate with an ap-propriate officer of the issuer.

(2) If the asserted owner does not havepersonal knowledge of the information whichmust be contained in the affidavit requiredunder subsection (1)(a) of this section, theperson having such personal knowledge maymake the affidavit. [1959 c.410 §3]

288.435 When requirements of ORS288.420 and 288.430 may be waived. If theasserted owner of a lost, mutilated or de-stroyed instrument that was registered pro-



vides an affidavit, certification or otherreliable proof that the governing body orpaying officer reasonably finds protects theissuer from conflicting claims for paymentunder the registered instrument, the payingofficer may waive the requirements of ORS288.420 and the governing body may waivethe requirements of ORS 288.430 with respectto that registered instrument. [1993 c.97 §20]

288.440 Form of duplicate instrument.If any duplicate be issued, it shall be in thesame form and amount and bear the sameserial number, date of issue and date of ma-turity as the original instrument. If the in-strument be a bond with interest couponsattached, only interest coupons that have notmatured under the terms of the original in-strument as of the date the duplicate is is-sued shall be attached to the duplicate. Theofficer issuing the duplicate shall indorse theword “DUPLICATE” and the date of its is-suance upon its face and upon the face ofany interest coupon attached thereto. Theofficer issuing the duplicate shall sign theduplicate on behalf of the issuer. [1959 c.410§6]

288.450 Waiver of requirement of in-demnity bond. The paying officer may waivethe requirement of an indemnity bond as im-posed by ORS 288.420 and the governing bodymay waive such requirement as imposed byORS 288.430 when:

(1) The asserted owner of the instrumentfurnishes an undertaking for the face amountof such instrument plus all interest due andto become due thereon to protect the issuerand the paying officer from loss or liabilityresulting from any demand or payment of theprincipal of or interest on such instrument;and either

(2) The asserted owner surrenders a mu-tilated instrument that is so complete thatany missing portion thereof could not formthe basis of a valid claim against the issuer;or

(3) The asserted owner of the instrumentis the state in its individual or fiduciary ca-pacity or any county, municipality, districtor civil subdivision which is not in defaulton the payment of any of its outstanding ob-ligations. [1959 c.410 §4]

288.460 Petition to circuit court; courtorder requiring payment of instrumentor issuance of duplicate. If any paying of-ficer refuses to pay or if any governing bodyrefuses to direct the issuance of a duplicate,the asserted owner of an instrument may pe-tition any circuit court for an order requir-ing the paying officer or governing body toshow cause why the paying officer or gov-erning body should not be required to paysuch instrument in accordance with its terms

or direct the issuance of a duplicate. If, uponhearing, it appears to the satisfaction of thecourt that the petitioner is the owner of theinstrument, that it has been lost, mutilatedor destroyed and that no sufficient cause hasbeen shown why it should not be paid or aduplicate thereof issued, the court shallmake an order requiring the paying officerto pay it or requiring the governing body todirect the issuance of a duplicate upon suchconditions as the court considers adequatefor the protection of the issuer and the pay-ing officer against loss or liability resultingfrom any demand or payment of the principalof or interest on the instrument. [1959 c.410§5]

BONDS GENERALLY288.500 Improper expenditure of pro-

ceeds of certain exempt bonded indebted-ness; remedies; exception. (1) If a court ofcompetent jurisdiction determines that theproceeds of an issue of exempt bonded in-debtedness is used for expenditures that arenot expenditures for capital construction orcapital improvements, the court may requirethe governmental unit issuing the bonded in-debtedness to take only the following ac-tions:

(a) The court may order the govern-mental unit to replace the misspent proceedson a reasonable schedule determined by thecourt, with interest, from sources other thanthe taxes that the governmental unit leviesto pay the bonded indebtedness, and to usethe replaced funds for capital constructionor capital improvement expenditures or topay bond debt service; or

(b) If the governmental unit fails to com-ply with an order to replace the misspentproceeds, or acknowledges that the govern-mental unit is unable to replace the misspentproceeds, the court may determine that aportion of the future levies to pay the bondedindebtedness shall be subject to the limits ofsection 11b, Article XI of the Oregon Consti-tution. The portion that is subject to thoselimits shall be determined by calculating theamount of the taxes that are necessary topay the principal and interest on the bondedindebtedness that is allocable to the misspentproceeds.

(2) No action may be filed or maintainedagainst a governmental unit because of analleged expenditure of proceeds of exemptbonded indebtedness for purposes other thancapital construction or improvements, if themisspent amount is less than $5,000. [1997c.541 §366b]

Note: 288.500 to 288.513 were enacted into law bythe Legislative Assembly but were not added to or madea part of ORS chapter 288 or any series therein by leg-islative action. See Preface to Oregon Revised Statutesfor further explanation.



288.505 Determining date of issuanceof bonded indebtedness. For purposes ofsections 11 and 11b, Article XI of the OregonConstitution, the date on which bonded in-debtedness is issued is the earliest date onwhich any bond in a series is issued. [1997c.541 §366c]

Note: See note under 288.500.288.510 [1969 c.63 §1; 1971 c.366 §1; 1973 c.488 §7;

1975 c.642 §27; 1981 c.23 §2; repealed by 1981 c.94 §1(288.515 to 288.550 enacted in lieu of 288.510)]

288.513 Determining true cash valuefor bonded indebtedness. In determiningthe “true cash value” of taxable property forthe purpose of calculating the total amountof indebtedness which may be incurred bythe state or local governments under theOregon Constitution or laws of the State ofOregon, the “real market value,” as definedin section 11b (2)(a), Article XI of the OregonConstitution, may be used if and to the ex-tent that the “real market value” does notexceed the “true cash value.” [1991 c.902 §1]

Note: See note under 288.500.

288.515 Definitions for ORS 288.515 to288.600. As used in ORS 288.515 to 288.600:

(1) “Bonds” means general obligation, re-venue or tax increment bonds, or notes of apublic body.

(2) “Public body” means the State of Or-egon, its agencies, institutions or any mu-nicipality authorized by law to issue bonds.

(3) “Municipality” means a political sub-division of this state and municipal, quasi-municipal and public corporations andintergovernmental entities organized underORS chapter 190 authorized by law to issuebonds. [1981 c.94 §2; 1983 c.347 §1; 1991 c.583 §6]

288.517 Policy concerning bond cove-nants. The Legislative Assembly finds anddeclares that:

(1) It is a matter of statewide concernthat certain covenants made by public bodiesregarding any pledge of revenues securingbonds or other obligations not be impairedby subsequent initiative or referendum mea-sures.

(2) These covenants usually are in theform of a promise to charge and collect rates,fees, tolls, rentals or other charges sufficientto produce revenues to maintain a specifiedlevel of debt service coverage.

(3) Such covenants are material to thesecurity for the bonds or other obligationsand to investors′ expectations regardingtimely payment of the bonds or other obli-gations. Any possibility that such covenantsmight be rolled back, frozen or otherwisesubjected to subsequently imposed conditionsor restrictions negatively affects the abilityof public bodies to market their bonds, to

obtain credit enhancement and to obtain sat-isfactory ratings on their bonds. [1997 c.171 §2]

Note: 288.517 and 288.518 were added to and madea part of 288.515 to 288.600 by legislative action butwere not added to any smaller series therein. See Pre-face to Oregon Revised Statutes for further explanation.

288.518 Additional powers of munic-ipality when issuing revenue bonds. Anymunicipality that is authorized to issue re-venue bonds by any law other than the Uni-form Revenue Bond Act, ORS 288.805 to288.945, may, when issuing those bonds, ex-ercise the powers specified in ORS 288.825(3) and (4). The municipality may also pledgeany revenues that such authorizing law al-lows the municipality to commit to pay therevenue bonds and any amounts held as re-serves for the revenue bonds. [1997 c.171 §3]

Note: See note under 288.517.

288.520 Public body to determine in-terest, principal amount, discount, terms;form of authority to issue; maximum in-terest rate for state bonds. (1) Except asprovided in subsection (5) of this section, apublic body issuing bonds shall determine:

(a) The maximum effective rate of inter-est, if any, which the bonds shall bear in-cluding variable interest rates if the publicbody so decides;

(b) The principal amounts, consistentwith any limitations established by law, ofthe bonds or series of bonds to be issued;

(c) The discount or premium, if any,which the public body will allow;

(d) The terms by which the bonds may beredeemed prior to maturity, including, butnot limited to, the amount of any permittedpremium;

(e) The form of the bonds;(f) The term of the bonds;(g) The schedule for payment of bond

principal and interest;(h) The denominations of the bonds; and(i) For revenue bonds, tax increment

bonds or notes, the type of sale.(2) When issuing general obligation

bonds, the public body must sell the bonds inconformance with ORS 287.014 to 287.022.

(3) A municipality may establish a sink-ing fund for the purpose of repaying principaland interest when due and may covenant tomake contributions to that fund.

(4) Notwithstanding any other provisionof law requiring bonds to be authorized byordinance, a public body may authorize theissuance of bonds by order or resolution ofits governing body, and in the ordinance,resolution or other official authorization, apublic body may delegate to any elected orappointed official or employee of the public



body the authority to determine the maturitydates, principal amounts, redemption pro-visions, interest rates or the method for de-termining a variable or adjustable interestrate, denominations and other terms andconditions of the bonds that are not appro-priately determined at the time of enactmentof the authorizing ordinance or resolution.The delegated authority shall be exercisedsubject to the applicable requirements of lawand any limitations and criteria set forth inthe ordinance, resolution or other officialauthorization.

(5) When a public body issuing generalobligation bonds is the State of Oregon orone of its agencies, the maximum effectiverate of interest which the bonds shall bearis 13 percent per annum. However, if anagency is unable to sell the bonds after areasonable marketing effort, the maximumeffective rate of interest may be increasedbut shall not exceed 14 percent per annum.

(6) Notice of any redemption authorizedunder subsection (1)(d) of this section shallbe given in the manner directed by the pub-lic body, which shall include, if the bonds arenot in registered form, publication in at leastone issue of a business and financial news-paper published within the City of Portland,Oregon.

(7) Notwithstanding any other law, apublic body is not required to publish a no-tice of redemption for bonds that are in reg-istered form. [1981 c.94 §3; 1981 c.661 §4; 1981 c.879§1; 1983 c.347 §2; 1985 c.441 §3; 1993 c.97 §7; 1997 c.171§13]

288.523 Appointment of bond counsel;exception of ORS 279.712. (1) Notwith-standing any other provision of law relatingto the appointment of bond counsel, a publicbody may provide for the appointment ofbond counsel to advise and assist the publicbody in the issuance of bonds or certificatesof participation, including the issuance ofrefunding bonds and obligations, and in thelawful administration of outstanding bondsor certificates of participation. The servicesprovided by an appointed bond counsel mayinclude:

(a) Advising the public body concerningthe legality of specific proposed taxable ortax-exempt obligations and the compliance,in substance and procedure, of those obli-gations with law, including but not limitedto federal securities laws and regulations andfederal and state tax laws and regulations;

(b) Issuing legal opinions, including opin-ions on the authorization, tax status and thebinding effect of the obligations and theirassociated documents and on the lawful useof the proceeds of the obligations, as may berequired by the demands of the bond marketfor the obligations;

(c) Advising the public body on legalprocedures and practices in the bond marketfor the obligations, including advice on thestructuring and marketing of the obligations;

(d) Preparing or assisting in the prepara-tion of any document related to a specific is-sue of obligations, including but not limitedto a bond authorization, bond resolution, in-denture, prospectus, preliminary officialstatement, official statement, bond sale no-tice, bond form, bid form or bond purchaseagreement;

(e) Advising the public body concerningthe maintenance of the tax status of specificobligations, compliance with any require-ments for representations or disclosures re-lating to the obligations and compliance withany documents issued or executed with re-spect to the obligations; and

(f) Advising the public body concerningaccounting and investment procedures re-commended or required for compliance withtax and federal securities and rebate re-quirements.

(2) No appointment of bond counsel un-der this section shall be construed as au-thorizing bond counsel to advise or representthe public body on matters that are commit-ted by statute to the Attorney General or bylocal law to counsel for the public body. Anappointment of bond counsel by a stateagency or institution shall be subject to theprior approval of the State Treasurer and theAttorney General.

(3) ORS 279.712 does not apply to an ap-pointment of bond counsel under this section.[1995 c.247 §2; 2001 c.536 §7]

Note: The amendments to 288.523 by section 245,chapter 794, Oregon Laws 2003, become operative March1, 2005, and apply only to public contracts first adver-tised, but if not advertised then entered into, on or afterMarch 1, 2005. See sections 336 and 337, chapter 794,Oregon Laws 2003. The text that is operative on andafter March 1, 2005, is set forth for the user′s conven-ience.

288.523. (1) Notwithstanding any other provisionof law relating to the appointment of bond counsel, apublic body may provide for the appointment of bondcounsel to advise and assist the public body in the is-suance of bonds or certificates of participation, includ-ing the issuance of refunding bonds and obligations,and in the lawful administration of outstanding bondsor certificates of participation. The services provided byan appointed bond counsel may include:

(a) Advising the public body concerning thelegality of specific proposed taxable or tax-exempt obli-gations and the compliance, in substance and procedure,of those obligations with law, including but not limitedto federal securities laws and regulations and federaland state tax laws and regulations;

(b) Issuing legal opinions, including opinions onthe authorization, tax status and the binding effect ofthe obligations and their associated documents and onthe lawful use of the proceeds of the obligations, as maybe required by the demands of the bond market for theobligations;



(c) Advising the public body on legal proceduresand practices in the bond market for the obligations,including advice on the structuring and marketing ofthe obligations;

(d) Preparing or assisting in the preparation of anydocument related to a specific issue of obligations, in-cluding but not limited to a bond authorization, bondresolution, indenture, prospectus, preliminary officialstatement, official statement, bond sale notice, bondform, bid form or bond purchase agreement;

(e) Advising the public body concerning the main-tenance of the tax status of specific obligations, com-pliance with any requirements for representations ordisclosures relating to the obligations and compliancewith any documents issued or executed with respect tothe obligations; and

(f) Advising the public body concerning accountingand investment procedures recommended or required forcompliance with tax and federal securities and rebaterequirements.

(2) No appointment of bond counsel under thissection shall be construed as authorizing bond counselto advise or represent the public body on matters thatare committed by statute to the Attorney General or bylocal law to counsel for the public body. An appoint-ment of bond counsel by a state agency or institutionshall be subject to the prior approval of the StateTreasurer and the Attorney General.

(3) ORS 279A.140 does not apply to an appointmentof bond counsel under this section.

Note: 288.523 was added to and made a part of288.515 to 288.600 by legislative action but was notadded to any smaller series therein. See Preface to Or-egon Revised Statutes for further explanation.

288.525 Expenditure of bond proceedsfor interest or redemption. (1) A publicbody may expend bond proceeds for the pay-ment of interest on the bonds for the periodestablished by the public body.

(2) A public body may expend bond pro-ceeds to purchase or redeem the bonds fromwhich proceeds are derived. [1981 c.94 §4; 1983c.347 §3]

288.530 Deferral of initial payment ofprincipal on bonds; determination of in-terest periods. A public body may defer ini-tial payment of principal on bonds for aperiod of time it reasonably determines, andshall determine whether interest should bepaid semiannually or otherwise. [1981 c.94 §5]

288.535 Use of seal. A public body au-thorized by law to possess a seal shall causesuch seal to be imprinted, attached, im-pressed or otherwise evidenced on any bondof which it is the issuer. However, the fail-ure to imprint, attach, impress or otherwiseevidence a seal on any bond shall not affectthe validity thereof. [1981 c.94 §6]

288.540 Authorized signatures. Bondsof a public body shall be executed by thesignature or signatures of one or more offi-cers as specified by the public body. Signa-tures of the designated officers may be eithermanual or facsimile, but at least one signa-ture shall be manual in form. However, allsignatures of the public body may be by fac-simile if the bonds are to be authenticated

by at least one manual signature. [1981 c.94§7; 1995 c.333 §5]

288.545 Form of bonds. Bonds may beissued in coupon form, with or without priv-ilege of registration, or may be in registeredform, or both, with the privilege of convert-ing and reconverting from one form to an-other, upon such terms and conditions asprovided by the public body and applicableprovisions of federal law. As evidence of in-debtedness, the public body may utilize im-mobilized or book-entry delivery systems andmay use depositories for these purposes. [1981c.94 §8; 1983 c.129 §1]

288.550 Preliminary official statementnot required in certain circumstances.The preliminary official statement requiredfor general obligation bonds by ORS 287.018shall not be required for any issue for whicha commitment to purchase has been receivedfrom any state or federal agency unless suchstate or federal agency requires the prepara-tion of such document. If any other pur-chaser is awarded the sale of generalobligation bonds offered at a sale for whicha commitment to purchase such bonds hasbeen received from a state or federal agency,an official statement shall be prepared priorto the delivery of the bonds if such otherpurchaser so requests. [1981 c.94 §9]

288.560 Destruction of bonds and cou-pons. At the option of the treasurer or otherfiscal officer of a subdivision making use ofa paying agent other than the state′s fiscalagency, bonds and coupons may be held fordestruction as are state bonds and couponsunder ORS 288.120 and may be destroyed inthe same manner as state bonds and couponsare destroyed under ORS 288.120. [1981 c.252§2]

288.570 Appointment of paying agents.(1) In connection with the issuance of bonds,any municipality may appoint one or morepaying agents to serve as paying agent onbonds issued after May 26, 1983.

(2) The paying agents designated undersubsection (1) of this section shall either bea financial institution authorized to do busi-ness in Oregon or the state′s fiscal agent asprovided for in ORS 288.020.

(3) Any municipality which is requiredby law to use the county treasurer as payingagent may appoint a paying agent and regis-trar. The municipality shall provide thecounty treasurer written notice of such ap-pointment no later than 20 days followingthe appointment.

(4) Any municipality appointing a payingagent under the authority of ORS 288.545and 288.570 to 288.590 may:

(a) Provide for powers, duties and func-tions and compensation of such paying agent.



(b) Limit the liabilities of such payingagent.

(c) Prescribe a method for resignation,removal, merger or consolidation of suchpaying agent, appointment of a successorpaying agent and transfer of right and prop-erties to such successor paying agent.

(5) The entity through which bonds arepayable shall serve as registrar under suchterms and conditions as may be required byrule of the Oregon Municipal Debt AdvisoryCommission in effect at the time such agree-ment is executed.

(6) If the municipality′s paying agent isthe state′s fiscal agent, the municipalityshall also designate a coregistrar within theState of Oregon. The coregistrar may be ei-ther a financial institution authorized to dobusiness in Oregon or a municipality. Amunicipality may appoint the state′s fiscalagent as paying agent for bonds issued by themunicipality. The municipality is not re-quired under this section to appoint thestate′s fiscal agent as paying agent for allbonds issued by the municipality.

(7) Notwithstanding subsection (5) of thissection, a municipality may elect to serve asits own paying agent, and in cases where themunicipality so elects, it may contract witha financial institution authorized to do busi-ness in Oregon or the State of Oregon′s fis-cal agent to register bonds at the time oforiginal issuance.

(8) The authority granted by ORS 288.545and 288.570 to 288.590 is in addition to anyauthority to appoint a paying agent or regis-trar provided by statute or charter amend-ment. [1983 c.129 §§3,5; 1985 c.441 §4; 1993 c.97 §8]

288.580 County treasurer as payingagent. A county treasurer may enter intoagreements with financial institutions toserve as paying agent and registrar, as pro-vided in ORS 288.570 (1) to (8), for any bondissue for which the county treasurer servesas paying agent. A county treasurer may re-cover costs from the municipality for theservice. [1983 c.129 §4; 1985 c.441 §5]

288.590 Registered bond ownership notpublic record. The records of registeredbond ownership, whether maintained by thestate or a municipality or its registrar, arenot public records within the meaning ofORS 192.410 (4). [1983 c.129 §6]

288.592 Refunding bonds. (1) As used inthis section, “forward current refunding”means execution and delivery of a forwarddelivery bond purchase agreement or similarinstrument under which a public body con-tracts to sell current refunding bonds at aspecified future date.

(2) To refund outstanding bonds, a publicbody may issue and deliver bonds to refundall or any portion of the outstanding bondsof the public body and to execute and deliverany contract or agreement that is necessaryor desirable to currently refund or to effecta forward current refunding of bonds. Theproceeds of the refunding bonds shall be usedsolely to pay the principal of, and interestand premium, if any, on the bonds being re-funded, costs of issuing the refunding bondsplus not more than six months of interest onthe refunding bonds. The proceeds of the re-funding bonds shall be used to pay debt ser-vice on the refunded bonds within one yearafter the refunding bonds are issued.

(3) The State Treasurer may adopt rulesregulating the issuance of refunding bondsand forward current refundings under thissection. If the State Treasurer adopts rules,refunding bonds may not be issued and aforward current refunding agreement maynot be executed under this section unless theissuance or execution complies with therules adopted by the State Treasurer.

(4) Bonds issued to refund revenue bondsthat were issued pursuant to ORS 288.815shall be considered to have been issued infull compliance with ORS 288.815, and theissuance of the refunding bonds shall not besubject to ORS 288.815. However, a forwardcurrent refunding or the issuance of the re-funding bonds must be authorized by ordi-nance or resolution of the issuing publicbody. [1987 c.91 §2; 1993 c.97 §9; 1999 c.559 §10]

288.594 Creation, perfection, priorityand enforcement of lien of pledge bypublic body; UCC not applicable. (1) Asused in this section:

(a) “Obligation” means a revenue bond,limited tax bond, general obligation bond,certificate of participation, note, lease pur-chase or installment purchase obligation, fi-nancing agreement, credit agreement orother contractual undertaking of a publicbody, however denominated, to repay bor-rowed moneys or to pay the purchase priceof property acquired by the public body, acredit enhancement device, as the term isdefined in ORS 288.805, given as additionalsecurity for an obligation described in thisparagraph or an intergovernmental agree-ment entered into under ORS chapter 190.

(b) “Operative document” means a reso-lution, ordinance, trust indenture, securityagreement or other document in which apublic body pledges property as security foran obligation of the public body.

(c) “Pledge” means to create a securityinterest in or a lien on property to securepayment or performance of an obligation.The security interest or lien is created by



mortgaging, assigning or encumbering prop-erty or by creating a security interest in anyother manner.

(d) “Pledgee” means:(A) A trustee for the holder of an obli-

gation; or(B) The holder of an obligation if a trus-

tee was not appointed in the operative docu-ment or if the operative document authorizesthe holder of an obligation to foreclose thelien of a pledge and enforce the remediesconsequent to the pledge in lieu of the trus-tee.

(e) “Property” means real or personalproperty of a public body, tangible or intan-gible, whether owned by the public bodywhen the pledge is made or acquired subse-quently by the public body. “Property” alsomeans revenues as that term is defined inORS 288.805, contract rights, receivables andsecurities.

(2) Notwithstanding the Uniform Com-mercial Code, this section governs the cre-ation, perfection, priority and enforcement ofa lien of a pledge made by a public body. TheUniform Commercial Code does not apply tothe creation, perfection, priority or enforce-ment of a lien of a pledge made by a publicbody.

(3) A public body may pledge all or aportion of its property as security for pay-ment of its obligations and for performanceof a covenant or agreement entered into inrelation to the issuance of an obligation ofthe public body. The lien created by thepledge is valid and binding from the time thepledge is made. Pledged property is subjectimmediately to the lien of the pledge withoutphysical delivery, filing or any other act.

(4) Except as provided otherwise ex-pressly in the operative document, the lienof the pledge is superior to and has priorityover other claims and liens of any kind.

(5) When property subject to a pledge isacquired by a public body after the pledge ismade, the property is subject to the lienupon acquisition by the public body withoutphysical delivery, filing or any other act, andthe lien shall relate to the time the publicbody originally made the pledge.

(6) A public body may reserve the rightto pledge a pledged property as security foran obligation subsequently issued by thepublic body. If a public body reserves thatright, subject to the terms of the operativedocument that created the previous pledge,the lien of the subsequent pledge may be ona parity or pari passu basis with the lien ofthe previous pledge, on a prior and superiorbasis with the lien of the previous pledge oron a subordinate basis with the lien of the

previous pledge, as specified in the operativedocument creating the subsequent pledge.The lien of the subsequent pledge:

(a) Has the priority specified in the op-erative document creating the subsequentpledge; and

(b) Is superior to and has priority overother claims and liens of any kind except thelien of a pledge with which the lien of thesubsequent pledge is on a parity or subordi-nate basis, as specified in the operative doc-ument.

(7) Except as provided in subsection (8)of this section, a pledgee may commence anaction in a court of competent jurisdiction toforeclose the lien of the pledge and exerciserights and remedies available to the pledgeeunder the operative document.

(8) When pledged property consists ofmoneys or property in a fund for debt servicereserves or payments, a pledgee may fore-close the lien of the pledge by applying themoneys or property in the fund to the pay-ment of obligations subject to the terms,conditions and limitations in the operativedocument.

(9) Any initiative or referendum measureapproved by the electors of the public bodythat changes statutory or municipal charterprovisions affecting rates, fees, tolls, rentalsor other charges shall not be given any forceor effect if to do so would impair existingcovenants made with holders of existingbonds or other obligations regarding the im-position, levy or collection of the rates, fees,tolls, rentals or other charges pledged to se-cure outstanding bonds or other obligations.

(10) If a public body is authorized by lawto pledge its revenues to secure revenuebonds or other borrowings, the public bodymay enter into rate covenants. Rate cove-nants authorized by this subsection may ob-ligate the public body to periodically set therates and charges:

(a) That generate the pledged revenuesat specific levels including, but not limitedto, a specific monetary charge for each unitof commodity or service provided or a sched-ule of rates and charges that includes fixedand variable components;

(b) In accordance with a formula estab-lished in the operative document governingthe revenue bonds or other borrowings. Theformula may provide for rates to be deter-mined by reference to factors including, butnot limited to:

(A) Historical operating expenses;(B) Projected future operating expenses;(C) The funding of depreciation;(D) The costs of capital improvements;



(E) The costs of complying with contrac-tual obligations and covenants;

(F) The costs of complying with regula-tory requirements;

(G) Reports of independent consultantsregarding the level of pledged revenues re-quired to operate and maintain a utility inaccordance with prudent utility practice;

(H) Debt service on the revenue bonds orother borrowings; and

(I) The funds needed to establish ormaintain reserves required by law or con-tract and the funds needed to maintain anunencumbered carryforward fund balance orworking capital to meet unanticipated ex-penses or fluctuations in revenues that mayarise;

(c) At levels sufficient to maintainunderlying credit ratings assigned to the re-venue bonds and other borrowings by one ormore nationally recognized credit rating ser-vices without regard to any improvement incredit ratings due to the provision of addi-tional security for revenue bonds and otherborrowings through bond insurance or creditenhancement; or

(d) That generate pledged revenues eachyear in amounts at least equal to operationsand maintenance expenses of the system thatproduces the pledged revenues, plus debtservice on the revenue bonds and other bor-rowings, plus an additional amount that isreasonably required to obtain favorable termsfor the revenue bonds and other borrowings.

(11) Without regard to whether a ratecovenant was entered into before or afterOctober 23, 1999, a rate covenant authorizedby this section is a contract that binds thepublic body making the rate covenant and isenforceable against the public body in accor-dance with the terms of the rate covenant.[1987 c.91 §3; 1997 c.171 §14; 1999 c.559 §5; 2001 c.537 §3]

288.596 Variable rate bonds; credit en-hancement agreements. Any public bodyauthorized to issue variable rate bonds may:

(1) Enter into letter of credit or othercredit enhancement agreements in order toprovide liquidity or security for bonds. Suchcredit enhancement agreements shall be pay-able solely from the same sources of fundswhich the public body may legally commit topay debt service on the bonds and the publicbody may pledge as security for its obli-gations arising under or with respect to anycredit enhancement agreement any revenuespledged to the payment of the related bondsor from which the bonds are payable.

(2) Issue bonds which are subject to re-demption at the option of the owner. How-ever, such right of redemption must belimited to money available under a credit

enhancement agreement, proceeds of thebonds and reserves of the public body estab-lished for such purpose. [1987 c.91 §4; 1995 c.333§6]

288.598 Authority to pay rebates andmake investments necessary for tax-exempt bond interest. Notwithstanding anyother provision of law, a municipality issuingbonds, the interest on which is intended tobe excludable from gross income under fed-eral income tax laws, may:

(1) Covenant for the benefit of the own-ers of the bonds to pay rebates that are re-quired under the federal income tax laws inorder for interest on the bonds to beexcludable from gross income. The rebatesshall be considered an interest expense of thebonds, and may be paid from any source offunds which may be used to pay interest onthe bonds, or from any source of funds whichearns interest that is subject to rebate.

(2) Invest in United States Governmentsecurities or other legal investments whichhave a yield that is less than current marketyield, in order to facilitate compliance withfederal laws which govern whether intereston the bonds is excludable from gross incomeunder federal income tax laws. [1987 c.840 §4]

288.600 Issuance of bonds with taxableinterest authorized. A public body may is-sue bonds, notes or other evidences of in-debtedness the interest on which is taxablefor federal income tax purposes to the hold-ers of the bonds, notes or other evidences ofindebtedness. Notwithstanding the grant ofsuch authority to a public body, a publicbody shall consent to such taxation expresslyand in writing at the time at which thebonds, notes or other evidences of indebted-ness are issued. The express written consentshall be made a part of the transcript of theproceedings of the issuance. [1987 c.840 §8]

REFUNDING BONDS288.605 Definitions for ORS 288.605 to

288.695. As used in ORS 288.605 to 288.695,unless the context requires otherwise:

(1) “Advance refunding bonds” meansbonds issued for the purpose of refundingbonds first subject to redemption or maturingone year or more from the date of the ad-vance refunding bonds.

(2) “Bond” means any revenue bond,general obligation bond or certificate of par-ticipation.

(3) “Certificate of participation” means:(a) Any financing agreement entered into

by the State of Oregon, an agency or insti-tution of the State of Oregon under ORS283.085 to 283.092 or a public corporationunder ORS chapter 353, or any certificate of



participation issued under such financingagreement.

(b) Any financing agreement entered intoby a local public body authorized by law toenter into financing agreements, or any cer-tificate of participation issued under such fi-nancing agreements.

(4) “Financing agreement” means a leasepurchase agreement, an installment saleagreement, a loan agreement or any otheragreement to finance real or personal prop-erty that is or will be owned and operatedby a public body, or to refinance previouslyexecuted financing agreements.

(5) “Forward current refunding” meansexecution and delivery of a forward deliverybond purchase agreement or similar instru-ment under which a public body contracts tosell current refunding bonds at a specifiedfuture date.

(6) “General obligation bond” means anybond, note, warrant, certificate of indebted-ness or other obligation of a public bodywhich constitutes an indebtedness within themeaning of the constitutional or statutorydebt limitation and which is secured by theunlimited taxing power of the public body.

(7) “Governing body” means the council,commission, board or other legislative bodyof the public body designated in ORS 288.605to 288.695 in which body the legislative pow-ers of the public body are vested, providedthat with respect to the state it shall meanthe State Treasurer.

(8) “Government obligations” means anyof the following:

(a) Direct obligations of or obligationsthe principal of and interest on which areunconditionally guaranteed by the UnitedStates of America and bank certificates ofdeposit secured by such obligations;

(b) Bonds, debentures, notes, partic-ipation certificates or other obligations is-sued by the banks for cooperatives, thefederal intermediate credit bank, the federalhome loan bank system, the export-importbank of the United States, federal land banksor the federal national mortgage association;

(c) Public housing bonds and projectnotes fully secured by contracts with theUnited States;

(d) Obligations of financial institutionsinsured by the Federal Deposit InsuranceCorporation to the extent insured or to theextent guaranteed as permitted under anyother state law; or

(e) General obligation bonds of the Stateof Oregon bearing a rating from a nationallyrecognized rating service at least equal inquality to the rating assigned by such serviceto the bonds being refunded.

(9) “Issuer” means the public body issu-ing any bond or bonds.

(10) “Ordinance” means an ordinance ofa public body or resolution or other instru-ment by which the governing body of thepublic body exercising any power takesformal action and adopts legislative pro-visions and matters of some permanency.

(11) “Public body” means the State ofOregon, its agencies, institutions, politicalsubdivisions, municipal, quasi-municipal andpublic corporations and intergovernmentalentities created by intergovernmental agree-ments under ORS chapter 190 authorized bylaw to issue general obligation bonds or re-venue bonds or to enter into financingagreements and cause certificates of partic-ipation to be issued under such financingagreements.

(12) “Revenue bond” means any bond,note, warrant, certificate of indebtedness orother obligation for the payment of moneyissued by a public body or any predecessorof any public body and which is payable fromdesignated revenues or a special fund butexcluding any obligation constituting an in-debtedness within the meaning of the consti-tutional or statutory debt limitations and anyobligation payable solely from special assess-ments or special assessments and a guarantyfund.

(13) “Special revenue bond” means anybond, note, warrant, certificate of indebted-ness or other obligation for the payment ofmoney issued by a public body or any prede-cessor of any public body which is payablefrom designated revenues or a special fundand which is subject to statutory debt limi-tations. [1977 c.536 §3; 1997 c.820 §1; 1999 c.559 §11]

288.610 Legislative findings; applica-bility of ORS 288.605 to 288.695. (1) TheLegislative Assembly finds that:

(a) It is desirable to afford public bodiesthe authority to reduce the costs on theiroutstanding bonds, thereby resulting in asavings in the costs of capital expendituresof a public body; that such a savings is forthe benefit of the people of the state;

(b) Legislation permitting a public bodyto pay and discharge all or any part of out-standing bonds in arrears, or about to be-come due and for which sufficient funds arenot available, or to effect a reorganization ofits permanent debt, or to effect a savings isdesirable to protect the credit of the stateand its public bodies; and

(c) To determine the extent of the needto issue advance refunding bonds or to effecta forward current refunding and to insurethat issuance of such bonds is to the advan-tage of and in the best interests of and forthe general welfare of the state and all pub-



lic bodies, it is desirable that the StateTreasurer approve of the issuance of all suchbonds.

(2) The Legislative Assembly declaresthat the issuance of advance refunding bondsand the authority to effect a forward currentrefunding are matters of general statewideconcern and ORS 288.605 to 288.695 preemptsall statutory or charter authority to issueadvance refunding bonds or to effect a for-ward current refunding, except that ORS288.605 to 288.695 is not applicable to norshall it affect advance refunding bonds issuedprior to October 4, 1977. [1977 c.536 §2; 1999 c.559§12]

288.615 Power to issue advance re-funding bonds; allowable purposes. (1)Subject to subsections (3) and (4) of this sec-tion, the governing body of any public bodymay by ordinance provide for the issuanceof bonds without an election to refund out-standing bonds, including advance refundingbonds heretofore or hereafter issued by thepublic body or its predecessor, or to fund theobligations of the public body under anycontract, lease, sublease or agreement en-tered into with the Oregon Mass Transpor-tation Financing Authority pursuant to ORS267.227 and 391.500 to 391.660, and to payredemption or prepayment premiums andcosts of issuance, only in order:

(a) To pay or discharge all or any partof such outstanding obligations or series orissue of bonds, including any interestthereon, in arrears or about to become dueand for which sufficient funds are not avail-able;

(b) To effect a favorable reorganizationof the permanent debt structure of theissuer; or

(c) To effect a savings discounted topresent value to the public body or in theevent of industrial development bonds, to ef-fect a savings discounted to present value tothe principal obligor of the revenue bonds.

(2) When issuing refunding revenuebonds or advance refunding revenue bonds torefund revenue bonds that were issued inaccordance with ORS 288.815, a municipality,as defined by ORS 288.805 (3), is not requiredto comply with the procedures prescribed inORS 288.815 in issuing bonds pursuant tothis section.

(3) To determine whether or not a savingwill be effected, consideration shall be givento the interest to fixed maturities of the re-funding bonds and the bonds or obligationsto be refunded, the costs of issuance of therefunding bonds, the redemption or prepay-ment premiums, if any, to be paid and theknown earned income from the investment

of the refunding bond proceeds pending re-demption or prepayment of the bonds or ob-ligations to be refunded.

(4) The refunding plan shall be subject toprovisions concerning payment and to allother contractual provisions in the pro-ceedings authorizing the issuance of thebonds or obligations to be refunded or other-wise appertaining thereto and to the reviewand authorization of the State Treasurer.

(5) For purposes of ORS 288.605 to288.690, wherever reference is made to “thebonds or obligations to be refunded” or anywords of similar import, such reference shallinclude the following:

(a) In the case of an advance refundingof general obligation bonds, limited taxbonds, as defined in ORS 288.150, revenuebonds or certificates of participation, thegeneral obligation, limited tax or revenuebonds or the certificates of participation tobe refunded; or

(b) In the case of a funding of the obli-gations of a mass transit district under anycontract, lease, sublease or agreement en-tered into with the Oregon Mass Transpor-tation Financing Authority under ORS267.227 and 391.500 to 391.660, both the obli-gations of the mass transit district undersuch contract, lease, sublease or agreementand the revenue bonds issued by the OregonMass Transportation Financing Authorityunder ORS 391.500 to 391.660 which are se-cured by such contract, lease, sublease oragreement.

(6) Subject to ORS 288.605 to 288.690, amass transit district may exercise the powersconferred upon public bodies under this sec-tion and ORS 288.637 and issue advance re-funding bonds for the purpose of refundingthe obligations of such mass transit districtunder any contract, lease, sublease or agree-ment with the Oregon Mass TransportationFinancing Authority under ORS 267.227 and391.500 to 391.660, in which event such ad-vance refunding bonds shall, for purposes ofORS 288.605 to 288.690, be deemed to be is-sued for the purpose of the advance refund-ing of revenue bonds.

(7) A financing agreement may be usedto refund outstanding financing agreementsor certificates of participation under thissection. If the obligation to be refunded is afinancing agreement or a certificate of par-ticipation, then the advance refunding obli-gation, without regard to the type ofobligation, may be secured by the sameclaims against the public body that securethe financing agreement or certificate ofparticipation to be refunded. [1977 c.536 §4; 1985c.429 §3; 1993 c.97 §10; 1997 c.820 §2]



288.620 Review and approval by StateTreasurer; expenses. (1) Refunding bondsmay not be issued under ORS 288.605 to288.695 unless authorized by the StateTreasurer under this section.

(2) Following adoption of an ordinance orresolution approving a refunding plan to is-sue advance refunding bonds, the refundingplan shall be submitted to the State Treas-urer for review and approval.

(3) Following adoption of an ordinance orresolution approving a refunding plan to ef-fect a forward current refunding, the refund-ing plan must be submitted to the StateTreasurer for review and approval if theState Treasurer has adopted rules under ORS288.592 related to forward current refundingbonds.

(4) After review of a proposed refundingplan, the State Treasurer shall advise thepublic body, in writing, whether the sale ofrefunding bonds is authorized. Failure of theState Treasurer to notify the public bodywithin 30 business days after receipt of therefunding plan shall be deemed an authori-zation to proceed. Except as provided in ORS288.625, in making determinations under thissection the State Treasurer shall consider allrelevant factors, including the purposes forwhich the refunding plan is adopted, theterms of the refunding plan, the effects (ifany) of applicable federal laws and the viewsof recognized experts in the field.

(5) The State Treasurer may delegate theauthority to approve refunding plans, includ-ing approval of the investment of the re-funding bond proceeds, to the OregonMunicipal Debt Advisory Commission.

(6) The administrative expenses of theState Treasurer incurred in reviewing re-funding plans shall be charged against thebond proceeds or may be paid by the publicbody from such other funds as may be avail-able. [1977 c.536 §17; 1989 c.435 §1; 1999 c.559 §13; 2001c.47 §1]

288.625 Manner of issuance. Advancerefunding bonds may be issued or a forwardcurrent refunding may be effected for generalobligation, revenue or special revenue bonds,at the discretion of the governing body, inthe manner provided in ORS 287.016 to287.022. [1977 c.536 §5; 1987 c.840 §2; 1999 c.44 §20; 1999c.559 §14]

288.630 Oregon Municipal Debt Advi-sory Commission assistance. Any govern-ing body refunding bonds under ORS 288.605to 288.695 may seek assistance on matterspertaining to the issuance of the refundingbonds or a forward current refunding fromthe Oregon Municipal Debt Advisory Com-mission pursuant to ORS 287.020 and 287.034.[1977 c.536 §6; 1999 c.559 §15]

288.635 Bonds to be refunded; time ofredemption. (1) Bonds may be refunded un-der ORS 288.605 to 288.695 when the holdersof the bonds to be refunded voluntarily sur-render them for exchange or payment or ifthey mature or are subject to redemptionprior to maturity of the refunding bonds.

(2) In any advance refunding plan createdpursuant to ORS 288.605 to 288.695, the gov-erning body shall provide, irrevocably in theordinance authorizing the issuance of theadvance refunding bonds, for the redemptionof the bonds to be refunded not later than sixmonths from the date they are first subjectto redemption. [1977 c.536 §7]

288.637 Early redemption; advance re-funding; forward current refunding. (1)Notwithstanding any other provision of ORS288.605 to 288.695:

(a) The governing body may permit re-demption of bonds to be refunded at maturityor any earlier time and permit advance re-funding of bonds or a forward current re-funding of bonds which are not callable priorto maturity notwithstanding the conditionsand requirements of ORS 288.635.

(b) The governing body may permit ad-vance refunding of advance refunding bondsor may effect a forward current refundingnotwithstanding the conditions and require-ments of ORS 288.635.

(2) The governing body shall determinewhether each proposed redemption, advancerefunding or forward current refunding un-der subsection (1) of this section furthers thepolicies expressed in ORS 288.610 and288.615. If the governing body determinesthat the redemption, advance refunding orforward current refunding furthers such pol-icies, the governing body may proceed withthe redemption, advance refunding or for-ward current refunding authorized by thissection. [1985 c.429 §2; 1993 c.97 §23; 1999 c.559 §16]

288.640 Redemption of advance re-funding bonds. The ordinance or other offi-cial action authorizing the issuance ofadvance refunding bonds pursuant to ORS288.605 to 288.695 may contain any redemp-tion terms deemed advisable in the discretionof the governing body or its designee. [1977c.536 §8; 1993 c.97 §24; 1995 c.333 §7]

288.645 Limit on advance refundingamount. Advance refunding bonds shall notbe issued in a principal amount in excess ofthe minimum principal amount necessary:

(1) To purchase a principal amount ofgovernment securities which, together withthe interest earnings thereon, will be suffi-cient to pay all installments of principal, in-terest and redemption premiums, if any, onthe bonds being refunded when they fall due



in accordance with the advance refundingplan; and

(2) To pay any amounts charged to theissuer as administrative costs, expenses orfees in connection with the advance refund-ing transaction which can be paid from theproceeds of the advance refunding bond is-sue. [1977 c.536 §9]

288.650 Investment of proceeds; ap-proval by State Treasurer. Prior to theapplication of the proceeds derived from thesale of advance refunding bonds to the pur-poses for which the refunding bonds havebeen issued, the advance refunding bondproceeds, together with any other funds thegoverning body may set aside for the pay-ment of the bonds to be refunded, may beinvested and reinvested only in governmentobligations. Investment shall take place at atime or at times as may be required to pro-vide funds sufficient to pay principal, interestand redemption premiums, if any, in accor-dance with the advance refunding plan. Tothe extent incidental expenses have beencapitalized, the advance refunding bond pro-ceeds may be used to defray such expenses.The governmental obligations used for in-vestment and reinvestment of advance re-funding bonds shall be approved by the StateTreasurer in accordance with ORS 288.620.[1977 c.536 §10]

288.655 Tax levies. (1) Notwithstandingany other provision of law, no governingbody shall cause to be levied upon the taxa-ble property within its district a tax to paythe maturing interest and principal on anybond or bonds being refunded pursuant toORS 288.605 to 288.695, if the amount owedon the bonds being refunded is secured bythe investment of the advance refundingbond proceeds together with any other fundsthe governing body may set aside for thepayment of the bonds to be refunded.

(2) Subject to ORS 288.665, each govern-ing body, where applicable, shall annuallycause to be levied upon the taxable propertywithin its boundaries a sum sufficient, withother revenues that are available, to pay thematuring interest and principal of all ad-vance refunding bonds that are general obli-gation bonds and, within constitutional andstatutory limitations, a sum sufficient, withother revenues that are available, to pay thematuring interest and principal of all limitedtax bonds, as defined in ORS 288.150. [1977c.536 §11; 1997 c.820 §3]

288.660 Trustee; use of proceeds; addi-tional pledges. (1) The governing body maycontract with respect to the safekeeping andapplication of the advance refunding bondproceeds and other funds included therewithand the income therefrom including the rightto appoint a trustee which may be any trust

company or state or national bank havingpowers of a trust company within the Stateof Oregon.

(2) The governing body may provide inthe refunding plan that until such moneysare required to redeem, retire or pay interestand principal installments on the general ob-ligation or revenue bonds to be refunded, therefunding bond proceeds and other funds andthe income from the advance refunding bondproceeds shall be used to pay and secure thepayment of the principal of and the intereston the advance refunding bonds.

(3) For the payment of revenue refundingbonds, the governing body may pledge, orotherwise make the bonds payable from, anyrevenues which might legally be pledged forthe payment of revenue bonds of the issuerof the type being refunded.

(4) Provisions shall be made by the gov-erning body for moneys sufficient in amountto accomplish the refunding as scheduled.[1977 c.536 §12; 1993 c.97 §11]

288.665 Advance refunding of revenuebonds; conditions. (1) Subject to subsection(2) of this section, when a public body hasirrevocably set aside for and pledged to thepayments of revenue bonds to be refundedadvance refunding bond proceeds and othermoneys in amounts which together withknown earned income from the investmentof the advance refunding bond proceeds aresufficient in amount to pay the principal ofand interest and any redemption premiumson such revenue bonds as the same becomedue and to accomplish the refunding asscheduled, the governing body may providethat the advance refunding revenue bondsshall be payable from any source which, atthe time of the issuance of either the ad-vance refunding bonds or the revenue bondsto be refunded, might legally either be orhave been designated as a source from whichthe advance refunding revenue bonds shallbe payable or be or have been pledged for thepayment of the revenue bonds refunded tothe extent it may legally do so, notwith-standing the designation or pledge of suchrevenues for the payment of the outstandingrevenue bonds being refunded.

(2) The power granted to a public bodyunder subsection (1) of this section shall beexercised only to the extent that all pro-visions of law and all other contractual pro-visions in the proceeding authorizing theissuance of the bonds to be refunded are re-spected. [1977 c.536 §13; 1993 c.97 §12]

288.670 Refunding of certain generalobligation bonds; conditions. (1) Except foradvance refunding bonds sold pursuant toORS 288.615 (1)(a), the maturity dates ofgeneral obligation bonds issued to refundvoted general obligation bonds may not be



more than 30 days after the maturity datesof the bonds to be refunded. However, aslong as the total debt service on the refund-ing bonds does not exceed the total debt ser-vice on the bonds to be refunded, theamounts maturing on any given date may bechanged, and the refunding general obli-gation bonds may mature earlier than thebonds to be refunded.

(2) Subsection (1) of this section does notapply to general obligation bonds of the Stateof Oregon. [1977 c.536 §14; 1983 c.798 §9; 2001 c.47§2]

288.675 Amounts credited to bond re-tirement not indebtedness. In computingindebtedness for the purpose of any constitu-tional or statutory debt limitation there shallbe deducted from the amount of outstandingindebtedness the amounts of money and in-vestments credited to or on deposit for gen-eral obligation or special revenue bondretirement. [1977 c.536 §15]

288.677 Amount credited to escrowaccount not indebtedness. If a public bodycauses government obligations to be placedirrevocably in escrow in an amount calcu-lated to be sufficient to pay principal andinterest on outstanding bonds issued by thebody as they mature or have beenirrevocably called for prior redemption, inaccordance with rules established by theState Treasurer, the amounts of money andinvestments credited to or on deposit for thepayment of such outstanding bonds shall bededucted from the amount of outstanding in-debtedness in computing indebtedness for thepurpose of any constitutional or statutorydebt limitation. Bonds for which governmentobligations have been so depositedirrevocably in escrow shall be deemed to bedefeased to the same extent as if such bondshad been advance refunded pursuant to theprovisions of ORS 288.605 to 288.690. [1983c.347 §5]

288.680 Issuance of refunding bondswith other bonds. Bonds for refunding andbonds for any other purpose or purposes au-thorized may be issued separately or issuedin combination in one or more series or is-sued by the same issuer. [1977 c.536 §16]

288.685 Rules. The State Treasurer shalladopt such rules as are necessary to carryout the purposes of ORS 288.605 to 288.695,provided that the rules shall as a minimumconform to all applicable laws and regu-lations thereunder of the United States thatpertain to advance refunding. The rules maybe changed from time to time as the StateTreasurer considers necessary. [1977 c.536 §19]

288.690 Severability. If any provision ofORS 288.605 to 288.695, or its application toany person or circumstances is held invalid,the remainder of ORS 288.605 to 288.695, orthe application of the provision to other per-sons or circumstances is not affected. [1977c.536 §18]

288.695 Short title. ORS 288.605 to288.695 may be cited as the Advance Refi-nancing and Refunding Bond Act of 1977.[1977 c.536 §1]

UNIFORM REVENUE BOND ACT288.805 Definitions for ORS 288.805 to

288.945. As used in ORS 288.805 to 288.945:(1) “Credit enhancement device” means

a letter of credit, line of credit, municipalbond insurance policy or other device or fa-cility used to enhance the creditworthinessor marketability of municipal bonds.

(2) “Facilities” means real property, in-cluding land, streets and other improve-ments, betterments, appurtenances,structures and fixtures, and personal prop-erty which is functionally related and subor-dinate to real property.

(3) “Municipality” means the politicalsubdivisions in or of this state, municipal,quasi-municipal and public corporations andintergovernmental entities organized underORS chapter 190. “Municipality” does notinclude a people′s utility district organizedunder the authority of ORS chapter 261.

(4) “Private negotiated sale” means thesale of revenue bonds for which the rate orrates and other terms and conditions are ne-gotiated between the public body and thepurchaser.

(5) “Public body” means the State of Or-egon, its agencies, institutions or any mu-nicipality.

(6) “Revenue bonds” means bonds issuedfor any public purpose, which are secured byrevenues either pledged or designated to bepayable for such public purpose of the publicbody and which are sold under the authoritygranted by ORS 288.805 to 288.945. Nothingin ORS 288.805 to 288.945 is intended to per-mit a public body to impose fees and chargesthat are not otherwise authorized by law.

(7) “Revenues” means all fees, tolls, ex-cise taxes, assessments, property taxes andall other taxes of whatever kind or nature,rates, charges, rentals and all other incomeand receipts of whatever kind or characterderived by or to which a public body is enti-tled from the operation, sale or use of facili-ties, projects, utilities or systems owned oroperated by the public body and other reven-ues legally available to be pledged to securethe revenue bonds or to be designated as re-



venues from which the revenue bonds shallbe payable. [1983 c.320 §1; 1987 c.354 §1; 1991 c.583§7; 1991 c.902 §102; 1993 c.97 §13]

288.815 Procedure for municipality toissue revenue bonds. (1) A municipality,upon adoption of a resolution or a nonemer-gency ordinance authorizing the issuance ofbonds in accordance with this section, mayissue revenue bonds under ORS 288.805 to288.945.

(2) A municipality may not sell revenuebonds under ORS 288.805 to 288.945 author-ized by a nonemergency ordinance until theperiod for referral of the ordinance has ex-pired. If a nonemergency ordinance authoriz-ing bonds is referred, the municipality maynot sell the bonds unless the voters approvethe revenue bonds.

(3) A municipality may not sell revenuebonds under ORS 288.805 to 288.945 author-ized by a resolution until at least 60 daysfollowing publication of the notice requiredin subsection (7) of this section.

(4) The resolution must provide thatelectors residing within the municipality mayfile a petition with the municipality askingthat the question of whether to issue thebonds described in the resolution be referredto a vote.

(5) If the municipality receives petitionscontaining valid signatures of that munic-ipality′s electors totaling not less than fivepercent of the municipality′s electors, thequestion of issuing the bonds described inthe resolution shall be placed on the ballotat the next legally available election date.

(6) If a petition is filed with the munic-ipality within 60 days following publicationof the notice described in subsection (7) ofthis section, bonds may not be sold until theissuance of bonds described in the resolutionis approved by a majority of the electors ofthat jurisdiction voting on the question.

(7) A notice describing the purposes forwhich the bonds described in the resolutionare sold shall be published by the municipal-ity in at least one newspaper of general cir-culation within the municipality and in thesame manner as are other public notices ofthat municipality. The notice shall contain:

(a) The date the resolution was adoptedand the number thereof, if any;

(b) Expected source of revenue for repay-ment of the revenue bonds;

(c) Estimated principal amount of thebonds to be sold;

(d) The procedures by which the questionof issuing the revenue bonds may be referredto a vote;

(e) The time in which the required sig-natures must be gathered;

(f) Any other information the municipal-ity may wish to include; and

(g) The fact that the resolution is avail-able for inspection at the appropriate officeof the municipality.

(8) Nothing in this section prohibits themunicipality on its own initiative from refer-ring the resolution or nonemergency ordi-nance authorizing the sale of revenue bondsto a vote of the electors of the municipality.

(9) When the public body issuing revenuebonds is a municipality, the municipalityshall issue the bonds in accordance with theprovisions of ORS 288.515 to 288.560. [1983c.320 §§2,7; 2003 c.195 §15]

288.825 Pledge of revenues; revenueestimates; excluded revenue. (1) A publicbody either may pledge to the payment ofrevenue bonds, or may make revenue bondspayable from, all or any portion of:

(a) The revenues of any revenue produc-ing facility providing services related to theservices financed by the public bonds;

(b) The revenues of a public utility orsystem, or an addition or extension to thepublic utility or system, where the improve-ments, projects or facilities financed by therevenue bonds are a portion of the publicutility or system;

(c) All or any portion of the revenues ofthe public body; or

(d) Any other legally available moneys.(2) A public body shall cause to be pre-

pared a plan showing that the estimated netrevenues which will be pledged or designatedare sufficient to pay the estimated debt in-curred under the bond issue.

(3) If the public body determines that itis necessary to provide additional securityfor revenue bonds, a public body may mort-gage, grant security interests in or otherwiseencumber facilities, projects, utilities or sys-tems owned or operated by the public body.Such security may be given in favor of theholders of revenue bonds, a trustee thereforor as security for its obligations arising un-der any credit enhancement device. The pub-lic body may obtain a credit enhancementdevice for revenue bonds provided that suchcredit enhancement device shall be payablesolely from revenues.

(4) When issuing revenue bonds, a publicbody may exercise any one or more of thefollowing powers:

(a) The governing body, in the ordinanceor resolution authorizing the issuance ofsuch bonds, may delegate to any elected orappointed official or employee of the govern-mental unit the authority to determine thematurity dates, principal amounts, redemp-



tion provisions, interest rates or the methodfor determining a variable or adjustable in-terest rate, denominations and other termsand conditions of such bonds which are notappropriately determined at the time ofenactment of the authorizing ordinance orresolution, which delegated authority shallbe exercised subject to the applicable re-quirements of law and such limitations andcriteria as may be set forth in such ordi-nance or resolution.

(b) The public body may pledge as secu-rity for its obligations arising under or withrespect to any credit enhancement deviceany revenues pledged to the payment of therelated bonds or designated as revenues fromwhich the bonds shall be payable, and suchobligations shall in any event be payablefrom the same sources from which suchbonds are payable.

(c) The public body may enter intoagreements with bond trustees and depositfunds with trustees for the benefit of suchbondowners.

(d) The public body may establish a debtservice reserve for the purpose of payingwhen due all amounts owing on such bonds,which debt service reserve may be fundedout of the proceeds derived from the issuanceand sale of such bonds or from such othersources as the governing body of the publicbody may determine. [1983 c.320 §§3,3a,4; 1991 c.902§103; 1993 c.97 §14]

288.835 Method of sale; findings. Re-venue bonds authorized to be sold as pro-vided for in ORS 288.815 may be sold atpublic competitive bid or at private negoti-ated sale, as determined by the public body.However, before a private negotiated sale isauthorized, the public body must make spe-cific findings that such a method of sale isdesirable. [1983 c.320 §5; 1991 c.902 §104]

288.845 Private negotiated sale of re-venue bonds. (1) When issuing revenuebonds at a private negotiated sale, a munic-ipality may obtain an independent expert toadvise the municipality and to evaluate:

(a) The terms and conditions of the pro-posed sale;

(b) The pricing of the proposed sale; and(c) Any other relevant aspects of the

sale.(2) The evaluation authorized by subsec-

tion (1) of this section must be made eitherin writing or, if orally, at a public meetingof the municipality authorizing a private ne-gotiated sale. [1983 c.320 §6; 1995 c.333 §30; 2003 c.195§16]

288.855 State authority to issue re-venue bonds. The State of Oregon, its insti-tutions and agencies, may issue revenuebonds under the authority of ORS 288.805 to288.945 to finance revenue producing facili-ties. Such revenue bonds shall be issued bythe State Treasurer under such terms andconditions as the State Treasurer shall de-termine. [1983 c.320 §8]

288.865 Preliminary official statement;content; availability; waiver; exemption.(1) If revenue bonds are issued by a munic-ipality, the municipality shall prepare andmake available to bidders and investors apreliminary official statement that includesthe following:

(a) Past and current financing and esti-mated future financing of the issuer;

(b) Brief description of the financial ad-ministration and organization of the issuer;

(c) Brief description of the economic andsocial characteristics of the issuer;

(d) A detailed description of the projectbeing financed, the sources of revenue to re-pay the debt and an analysis of the economicfeasibility of the project;

(e) Any information the Oregon Munici-pal Debt Advisory Commission may by rulerequire; and

(f) Any other information the issuer mayprovide.

(2) The preliminary official statement de-scribed in subsection (1) of this section shallbe available not fewer than 10 calendar dayspreceding the date of the revenue bond sale.

(3) The preliminary official statement de-scribed in subsection (1) of this section shallcontain the best available information, shallbe accurate to the best knowledge of theissuer, and shall be specifically approved bythe municipality.

(4) The requirement for the preliminaryofficial statement described in subsections (1)to (3) of this section, at the request of thepurchaser, may be waived if the revenuebonds are not being bought with the intentto resell them.

(5) If circumstances warrant, and if therevenue bonds are to be issued at a privatenegotiated sale, the State Treasurer may onan individual sale basis approve a shorterperiod than 10 days for the availability of thepreliminary official statement required bysubsection (2) of this section. [1983 c.320 §9]

288.875 Public competitive bid sales;notice; bid requirements. (1) As used inthis section, “competitive bidding process ofthe public body” means a process that isformally approved by the public body for no-tifying multiple potential purchasers, solicit-



ing firm proposals from those potentialpurchasers, including interest rates andprices, and awarding the sale to the bidderoffering the most favorable terms to thepublic body.

(2) For public competitive bid sales, thepublic body shall either solicit bids in com-pliance with the competitive bidding processof the public body or prepare and publish anotice of revenue bond sale which shallspecify:

(a) The time, date and place where bidsare to be received, and considered and actedupon, the total amount of revenue bonds, andthe denominations of the revenue bonds;

(b) The issue date, maturity dates andamounts, interest payment dates, and placeof payment of the revenue bonds;

(c) The date of optional redemption, ifany, the call price premium, if any, and theorder of revenue bond redemption and placeof redemption;

(d) The maximum effective rate of inter-est and the minimum percentage of par valueof the revenue bonds which may be bid;

(e) The required good faith deposit, whichmay be in the form of a certified or cashier′scheck on a bank that is doing business inthis state or a bond or other commitmentthat the public body determines is adequateto protect the public body against failure bya bidder to comply with the terms of a bid,in the amount of not less than two percentof the par value of the revenue bonds, or$500,000, whichever is the lesser;

(f) Such constraints on the coupon ratesas the issuer may impose;

(g) The interest basis and definitionthereof on which the revenue bond bids areto be awarded;

(h) The name of bond counsel, if any,who will furnish the legal opinion;

(i) Registration provision, if any;(j) Estimated delivery date and place;(k) Such other conditions as the public

body may impose;(L) The statute and ordinance, if any,

pursuant to which the revenue bonds are tobe issued; and

(m) The purpose of the revenue bonds.(3) Except when bonds are sold in com-

pliance with the competitive bidding processof the public body, bids submitted at publiccompetitive bid sales must be bids that are:

(a) Submitted for all revenue bonds of-fered for sale;

(b) Unconditional; and(c) Submitted either in writing in a

sealed envelope clearly marked as a proposal

for revenue bonds or telecopied or otherwisesubmitted to the public body in a mannerthat avoids public disclosure of the contentof bids before the deadline for bid sub-mission. [1983 c.320 §10; 1997 c.631 §441; 1999 c.559§17]

288.885 Public competitive bid sale bymunicipality; notice of sale. Except whenthe public body is the State of Oregon orwhen the revenue bonds are sold in accor-dance with the competitive bidding processof the public body, as defined in ORS 288.875,for any public competitive bid sale:

(1) The issuer shall cause the notice ofbond sale, or a summary thereof, to be pub-lished as provided in subsection (2) of thissection not fewer than 10 calendar days priorto the date of the bond sale.

(2) The issuer shall publish the notice ofbond sale, or a summary of the notice ofbond sale, by one or more of the followingmethods:

(a) Publication in a newspaper of generalcirculation within the boundaries of theissuer;

(b) Publication in a newspaper of generalcirculation in Portland, Oregon;

(c) Publication in a national newspaper;(d) Electronic publication on the Inter-

net; or(e) Electronic publication in another

form that is reasonably calculated to reachpotential bidders effectively.

(3) If a summary of the notice of bondsale is published under this section, thesummary must specify where the completenotice of bond sale is published or available.

(4) Copies of the complete notice of bondsale shall be furnished upon request to bid-ders, investors and the public. [1983 c.320 §11;1991 c.143 §2; 1991 c.902 §105; 1999 c.559 §18; 2001 c.537§4]

288.895 Competitive bid process bystate. For the state, a competitive bid proc-ess shall be conducted in the manner pre-scribed by the State Treasurer, which mayinclude, but is not limited to, notifying po-tential purchasers, conducting sales, accept-ing and awarding bids by written, telephonic,facsimile, electronic or any other means ofcommunication and offering for sale and ac-cepting bids on any combination of bonds oron an all or none basis. [1983 c.320 §12; 1999 c.44§19]

288.905 [1983 c.320 §13; 1995 c.333 §31; repealed by2001 c.537 §6]

288.915 Award on competitive bid. (1)For all public competitive bid sales, thebonds shall be awarded on the basis de-scribed in the notice of sale or in the solic-itation of bids that is part of the competitive



bidding process of the public body, as definedin ORS 288.875. All bids must be entered intothe public record of the public body issuingthe revenue bonds.

(2) Except when the revenue bonds aresold in compliance with the competitive bid-ding process of the public body:

(a) All bids shall be publicly opened atthe time and place specified in the notice ofsale.

(b) The revenue bonds shall be sold tothe responsible bidder whose bid will resultin the lowest interest cost to the public body,as defined in the manner set forth in the no-tice of sale, and taking into considerationany premium or discount bid.

(c) Unless all bids are rejected, the salemust be acted upon within four hours of thetime the bids are opened.

(3) The issuer may reject any or all bidsand continue the sale date to a date certainor readvertise the sale of revenue bonds inthe manner determined by the issuer or byan authorized representative of the issuer.The issuer shall make public the reasonswhy any or all bids are rejected.

(4) The preliminary official statement re-quired for revenue bonds by ORS 288.865shall not be required for any issue for whicha commitment to purchase has been receivedfrom any state or federal agency unless suchstate or federal agency requires the prepara-tion of such document. If any other pur-chaser is awarded the sale of the revenuebonds offered at a sale for which a commit-ment to purchase such bonds has been re-ceived from a state or federal agency, anofficial statement shall be prepared prior tothe delivery of the bonds if such other pur-chaser so requests. [1983 c.320 §§14,15; 1995 c.333§32; 1999 c.559 §19]

288.925 Form of revenue bonds. Therevenue bonds issued under the authority ofORS 288.805 to 288.945 shall:

(1) Contain a statement that such bondsare payable solely out of pledged revenues,or out of revenues designated as revenuesfrom which the bonds shall be payable, of thepublic body and are not general obligationsof the public body;

(2) Be in such denominations of $5,000 ormultiples thereof, as the public body deter-mines; and

(3) Be payable at the place designated bythe public body. [1983 c.320 §16; 1993 c.97 §15]

288.935 Other authority of municipal-ity. The powers conveyed by ORS 288.805 to288.945 are in addition to any other powerspossessed by municipalities and shall not bedeemed to limit such powers. [1983 c.320 §17]

288.945 Short title. ORS 288.805 to288.945 may be cited as the Uniform RevenueBond Act. [1983 c.320 §18]

MISCELLANEOUS PROVISIONS288.950 Compliance with debt limit;

effect of bond interest on value. Whencalculating compliance with any constitu-tional, statutory or charter debt limit:

(1) The amount of interest to be paid onbonds, whether current or deferred, shall notbe taken into account; and

(2) For any zero coupon bond or otheroriginal issue discount bond on which peri-odic interest payments are not made, onlythe accreted value of the bonds on the datethe bonds are issued shall be taken into ac-count. [1999 c.559 §7]

288.990 [Formerly 287.990; repealed by 1959 c.213§3]

288.991 [1959 c.410 §7; repealed by 1971 c.743 §432]


288 - oregon state legislature

Documents