2007 ORS § 367.655¹
Loan of bond proceeds to cities and counties
- • use of loans
- • rules
(1) Notwithstanding any other provision of law or any provision of charter or local ordinance to the contrary:
(a) The Department of Transportation may loan a portion of proceeds from bonds issued under ORS 367.615 (Bond issuance) to cities and counties; and
(b) Cities and counties may borrow moneys under this section.
(2) Any loan made under this section is subject to all of the following provisions:
(a) Moneys from the loan may only be used to defray costs of location, relocation, improvements, construction and reconstruction of city and county streets and roads.
(b) The department shall establish rules concerning the making of agreements for the loans. Repayment of principal and interest by any city or county must be made according to the agreement between the department and the city or county.
(c) If a city or county defaults of repayment, the department may withhold any part of the appropriation or allocation to the city under ORS 366.785 (Definitions for ORS 366.785 to 366.820) to 366.820 (Limit to application of ORS 366.785 to 366.815) or the county under ORS 366.762 (Appropriation from highway fund for counties) to 366.768 (Advances from highway fund to county) as provided for in the agreement for repayment made under this section. [1985 c.551 §10; 2003 c.201 §29]