2013 ORS § 294.047¹
Loss of principal on liquidation of investments

Whenever the custodial officer is forced to liquidate investments made pursuant to ORS 294.035 (Investment of surplus funds of political subdivisions) and 294.040 (Restriction on investments under ORS 294.035) to meet current cash demands and such liquidation results in a loss of invested principal because the securities were liquidated prior to maturity under market conditions unfavorable to such liquidation, the loss shall be charged against current or future investment earnings and the custodial officer shall not be personally liable to make good such loss. [1959 c.612 §1; 1963 c.465 §1; 1975 c.359 §5]