2011 ORS § 295.004¹
Conditions for deposit of funds in excess of specified amounts

(1) A public official may deposit public funds in a bank depository in an amount in excess of the amount allowed in ORS 295.002 (Deposit of public funds) without requiring the bank depository to show that it has entered into a pledge agreement or deposited securities pursuant to ORS 295.015 (Maintenance of securities by bank depository) (1) if the funds are initially deposited into a bank depository in Oregon and the Oregon bank depository participates in a program through which:

(a) The Oregon bank depository arranges for deposit of the funds into one or more certificates of deposit or time deposits issued by other financial institutions in the United States;

(b) Each certificate of deposit or time deposit is fully insured by the Federal Deposit Insurance Corporation;

(c) The Oregon bank depository administers the funds on behalf of the public official; and

(d) Other financial institutions participating in the program place funds into the Oregon depository in an amount at least equal to the amount deposited into the Oregon bank depository by the public official for purposes of the program.

(2) A public official may deposit public funds in a bank depository in an amount in excess of the amount allowed in ORS 295.002 (Deposit of public funds) without requiring the bank depository to show that it has entered into a pledge agreement or deposited securities pursuant to ORS 295.015 (Maintenance of securities by bank depository) (1) if the funds are initially deposited into a bank depository in Oregon and the Oregon bank depository participates in a program that meets the following conditions:

(a) On or after the date that the funds are received, the Oregon bank depository:

(A) Arranges for the redeposit of the funds into one or more insured deposit accounts in other financial institutions in the United States; and

(B) Administers the funds on behalf of the public official;

(b) The full amount of the funds redeposited by the Oregon bank depository into deposit accounts in other financial institutions, together with any interest accrued on deposited funds, is insured by the Federal Deposit Insurance Corporation; and

(c) On the same date that the funds are redeposited under this subsection, the Oregon bank depository receives an amount of deposits from customers of other financial institutions that are at least equal to the amount of the funds redeposited by the Oregon bank depository.

(3) Until the Oregon bank depository places public funds into one or more certificates of deposit or time deposits as provided in subsection (1) of this section or places public funds into insured deposit accounts as provided in subsection (2) of this section, any uninsured public funds held by the Oregon bank depository pending such placement must be collateralized as provided in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules) for other uninsured public funds deposits.

(4)(a) The provisions of ORS 295.006 (Bank depository and public official filings with State Treasurer), 295.013 (Custodians receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository) and 295.037 (Distribution of collateral after loss in bank depository) do not apply to public funds deposits deposited into a bank depository in Oregon that the bank depository arranges for under the provisions of the programs described in subsections (1) and (2) of this section.

(b) The provisions of ORS 294.035 (Investment of surplus funds of political subdivisions) and 295.001 (Definitions for ORS 295.001 to 295.108) requiring deposit of public funds into depositories that have offices or branches in Oregon do not apply to certificates of deposit or time deposits that an Oregon bank depository arranges for under the provisions of the program described in subsection (1) of this section or to public funds that an Oregon bank depository arranges to deposit into insured deposit accounts under subsection (2) of this section. [Formerly 295.027; 2009 c.821 §2; 2011 c.477 §1]

Note: The amendments to 295.004 (Conditions for deposit of funds in excess of specified amounts) by section 3, chapter 101, Oregon Laws 2010, become operative January 1, 2013, and apply to public funds on deposit on or after January 1, 2013. See section 29, chapter 101, Oregon Laws 2010, as amended by section 2, chapter 667, Oregon Laws 2011, and see section 30, chapter 101, Oregon Laws 2010. The text that is operative on and after January 1, 2013, including amendments by section 2, chapter 477, Oregon Laws 2011, is set forth for the users convenience.

295.004 (Conditions for deposit of funds in excess of specified amounts). (1) A public official may deposit public funds in a depository in an amount in excess of the amount allowed in ORS 295.002 (Deposit of public funds) without requiring the depository to show that the depository entered into a pledge agreement or deposited securities pursuant to ORS 295.015 (Maintenance of securities by bank depository) (1) if the public official deposits the funds into a depository in Oregon and the Oregon depository participates in a program through which:

(a) The Oregon depository arranges to deposit the funds into one or more certificates of deposit or time deposits issued by other financial institutions in the United States;

(b) Each certificate of deposit or time deposit is fully insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund;

(c) The Oregon depository administers the funds on behalf of the public official; and

(d) Other financial institutions that participate in the program place funds into the Oregon depository in an amount at least equal to the amount the public official deposited into the Oregon depository for purposes of the program.

(2) A public official may deposit public funds in a depository in an amount in excess of the amount allowed in ORS 295.002 (Deposit of public funds) without requiring the depository to show that it has entered into a pledge agreement or deposited securities pursuant to ORS 295.015 (Maintenance of securities by bank depository) (1) if the funds are initially deposited into a depository in Oregon and the Oregon depository participates in a program that meets the following conditions:

(a) On or after the date that the funds are received, the Oregon depository:

(A) Arranges for the redeposit of the funds into one or more insured deposit accounts in other financial institutions in the United States; and

(B) Administers the funds on behalf of the public official;

(b) The full amount of the funds redeposited by the Oregon depository into deposit accounts in other financial institutions, together with any interest accrued on deposited funds, is insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund; and

(c) On the same date that the funds are redeposited under this subsection, the Oregon depository receives an amount of deposits from customers of other financial institutions that are at least equal to the amount of the funds redeposited by the Oregon depository.

(3) Until the Oregon depository places public funds into one or more certificates of deposit or time deposits as provided in subsection (1) of this section or places public funds into insured deposit accounts as provided in subsection (2) of this section, any uninsured public funds that the Oregon depository holds pending placement must be collateralized as provided in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules) for other uninsured public funds deposits.

(4)(a) The provisions of ORS 295.006 (Bank depository and public official filings with State Treasurer), 295.013 (Custodians receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository), 295.037 (Distribution of collateral after loss in bank depository) and 295.038 (Distribution of collateral after loss in credit union depository) do not apply to Oregon depositories that arrange to deposit public funds in accordance with the programs described in subsections (1) and (2) of this section.

(b) The provisions of ORS 294.035 (Investment of surplus funds of political subdivisions) and 295.001 (Definitions for ORS 295.001 to 295.108) that require public funds to be deposited into depositories that have offices or branches in Oregon do not apply to public funds that an Oregon depository arranges to deposit into certificates of deposit or time deposits under the provisions of the program described in subsection (1) of this section or to public funds that an Oregon depository arranges to deposit into insured deposit accounts under subsection (2) of this section.