2011 ORS § 295.008¹
Conditions for acting as custodian or bank depository

(1)(a) An insured institution or trust company may not be a custodian bank under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules), unless it certifies in writing to the State Treasurer that it will furnish the reports required under ORS 714.075 (Reports of deposits held at branches) to the Director of the Department of Consumer and Business Services.

(b) The State Treasurer may approve one or more insured institutions or trust companies to serve as custodians. The State Treasurer shall promptly notify all bank depositories of the approval of an insured institution or trust company to serve as a custodian.

(2) An insured institution or trust company may not be a bank depository under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules), unless it:

(a) Certifies in writing to the State Treasurer that it will furnish, by the time specified by the Director of the Department of Consumer and Business Services:

(A) The reports required under ORS 714.075 (Reports of deposits held at branches) to the director; and

(B) Any other information the director considers necessary to determine whether to advise the State Treasurer to order a bank depository to increase its collateral under ORS 295.018 (Increase in required collateral of bank depository).

(b) Except as provided in subsection (4) of this section, enters into a pledge agreement; and

(c) Complies with subsection (3) of this section.

(3) Any insured institution or trust company that wishes to become a bank depository shall file with the State Treasurer an initial written report signed or authenticated by an officer of the insured institution or trust company setting forth, as of the date the insured institution or trust company intends to commence acting as a bank depository:

(a) The estimated total amount of public funds that will be on deposit with the insured institution or trust company;

(b) The estimated net worth of the insured institution or trust company;

(c) The amount and nature of the collateral that will be deposited with its custodian to collateralize the public funds deposits; and

(d) The identity of its custodian.

(4) An insured institution or trust company may be a bank depository under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules) without entering into a pledge agreement or complying with subsection (3) of this section if the insured institution or trust company does not hold any uninsured public funds deposits. 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 295.061 (Treasurer reports) do not apply to an insured institution or trust company that is a bank depository under this subsection.

(5) An insured institution or trust company that merges with, acquires all the assets of, acquires ownership of or otherwise becomes a successor entity to a bank depository that has entered into a pledge agreement must execute a new pledge agreement or provide evidence satisfactory to the State Treasurer of the assumption by the successor insured institution or trust company of all of the duties and obligations of the bank depository under the existing pledge agreement. An insured institution or trust company that fails to enter into a pledge agreement or provide evidence of its assumption of the existing pledge agreement within the time specified by the State Treasurer shall be treated as a bank depository holding uninsured public funds that has failed to pledge adequate collateral under ORS 295.031 (Notice to public officials regarding adequacy of collateral). [2005 c.112 §3; 2007 c.871 §16; 2009 c.821 §4]

Note: The amendments to 295.008 (Conditions for acting as custodian or bank depository) by section 5, 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, is set forth for the users convenience.

295.008 (Conditions for acting as custodian or bank depository). (1)(a) An insured institution, trust company or credit union may not be a custodian under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules) unless the insured institution, trust company or credit union certifies in writing to the State Treasurer that the insured institution, trust company or credit union will furnish the reports required under ORS 714.075 (Reports of deposits held at branches) to the Director of the Department of Consumer and Business Services.

(b) The State Treasurer may approve one or more insured institutions, trust companies or credit unions to serve as custodians. The State Treasurer shall promptly notify all depositories of the approval of an insured institution, trust company or credit union to serve as a custodian.

(2) An insured institution, trust company or credit union may not be a depository under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules) unless the insured institution, trust company or credit union:

(a) Certifies in writing to the State Treasurer that the insured institution, trust company or credit union will furnish to the Director of the Department of Consumer and Business Services by the time the director specifies:

(A) The reports required under ORS 714.075 (Reports of deposits held at branches); and

(B) Any other information the director considers necessary to determine whether to advise the State Treasurer to order a depository to increase the depositorys collateral under ORS 295.018 (Increase in required collateral of bank depository);

(b) Except as provided in subsection (4) of this section, enters into a pledge agreement; and

(c) Complies with subsection (3) of this section.

(3) An insured institution, trust company or credit union that intends to become a depository shall file with the State Treasurer an initial written report that an officer of the insured institution, trust company or credit union has signed or authenticated and that sets forth, as of the date the insured institution, trust company or credit union intends to commence acting as a depository:

(a) The estimated total amount of public funds that will be on deposit with the insured institution, trust company or credit union;

(b) The estimated net worth of the insured institution, trust company or credit union;

(c) The amount and nature of the collateral that the insured institution, trust company or credit union will deposit with a custodian to collateralize the public funds deposits; and

(d) The identity of the custodian.

(4) An insured institution, trust company or credit union may be a depository under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules) without entering into a pledge agreement or complying with subsection (3) of this section if the insured institution, trust company or credit union does not hold any uninsured public funds deposits. 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), 295.038 (Distribution of collateral after loss in credit union depository) and 295.061 (Treasurer reports) do not apply to an insured institution, trust company or credit union that is a depository under this subsection.

(5) An insured institution, trust company or credit union that merges with, acquires all the assets of, acquires ownership of or otherwise becomes a successor entity to a depository that has entered into a pledge agreement must execute a new pledge agreement or provide evidence satisfactory to the State Treasurer that the successor insured institution, trust company or credit union has assumed all of the depositorys duties and obligations under the existing pledge agreement. An insured institution, trust company or credit union that fails to enter into a pledge agreement or provide evidence that the insured institution, trust company or credit union has assumed the existing pledge agreement within the time specified by the State Treasurer shall be treated as a depository that holds uninsured public funds and that has failed to pledge adequate collateral under ORS 295.031 (Notice to public officials regarding adequacy of collateral).

Note: Sections 29 and 30, chapter 101, Oregon Laws 2010, provide:

Sec. 29. (1) Subject to subsection (2) of this section, sections 12 [295.038 (Distribution of collateral after loss in credit union depository)], 13 [295.039 (State Treasurer acceptance of moneys for purposes of administering ORS 295.038)], 13a [295.009 (Conditions under which State Treasurer may decline to accept credit union as credit union depository)] and 13b [295.012 (State Treasurer rule setting maximum liability for credit union depositories)], chapter 101, Oregon Laws 2010, and the amendments to ORS 295.001 (Definitions for ORS 295.001 to 295.108), 295.002 (Deposit of public funds), 295.004 (Conditions for deposit of funds in excess of specified amounts), 295.006 (Bank depository and public official filings with State Treasurer), 295.008 (Conditions for acting as custodian or bank depository), 295.013 (Custodians receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository), 295.031 (Notice to public officials regarding adequacy of collateral), 295.034 (Withdrawal of inadequately collateralized funds), 295.041 (Subrogation rights of State Treasurer), 295.046 (Limitation on depository acceptance of public funds from single public official), 295.048 (Limitations on aggregate uninsured public funds deposits), 295.053 (Custodian duties when bank depository ceases holding uninsured public funds), 295.061 (Treasurer reports), 295.071 (Investigation by regulatory bodies other than State Treasurer), 295.073 (Report to State Treasurer of certain actions by Director of Department of Consumer and Business Services), 295.081 (Time deposits), 295.084 (Designation of depository), 295.091 (Preference in selecting depositories for political subdivisions), 295.108 (State Treasurer rules), 295.205 (Accounts in financial institutions outside Oregon), 576.375 (Payment of commission moneys to authorized agent) and 711.410 (Transfer of assets after commission of act of insolvency or in contemplation of insolvency) by sections 1 to 10, 14 to 23 and 25 to 28, chapter 101, Oregon Laws 2010, become operative January 1, 2013.

(2) If the State Treasurer determines that the conditions described in section 13a (1), chapter 101, Oregon Laws 2010, have been satisfied, the State Treasurer shall implement sections 12 and 13b, chapter 101, Oregon Laws 2010, and the amendments to ORS 295.001 (Definitions for ORS 295.001 to 295.108), 295.002 (Deposit of public funds), 295.004 (Conditions for deposit of funds in excess of specified amounts), 295.006 (Bank depository and public official filings with State Treasurer), 295.008 (Conditions for acting as custodian or bank depository), 295.013 (Custodians receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository), 295.031 (Notice to public officials regarding adequacy of collateral), 295.034 (Withdrawal of inadequately collateralized funds), 295.041 (Subrogation rights of State Treasurer), 295.046 (Limitation on depository acceptance of public funds from single public official), 295.048 (Limitations on aggregate uninsured public funds deposits), 295.053 (Custodian duties when bank depository ceases holding uninsured public funds), 295.061 (Treasurer reports), 295.071 (Investigation by regulatory bodies other than State Treasurer), 295.073 (Report to State Treasurer of certain actions by Director of Department of Consumer and Business Services), 295.081 (Time deposits), 295.084 (Designation of depository), 295.091 (Preference in selecting depositories for political subdivisions), 295.108 (State Treasurer rules), 295.205 (Accounts in financial institutions outside Oregon), 576.375 (Payment of commission moneys to authorized agent) and 711.410 (Transfer of assets after commission of act of insolvency or in contemplation of insolvency) by sections 1 to 10, 14 to 23 and 25 to 28, chapter 101, Oregon Laws 2010, not later than 180 days after the date the State Treasurer determines that the conditions described in section 13a (1), chapter 101, Oregon Laws 2010, have been satisfied.

(3) The State Treasurer and the Director of the Department of Consumer and Business Services may take any action before January 1, 2013, that is necessary to enable the State Treasurer and the director to exercise, on and after January 1, 2013, all the duties, functions and powers conferred on the State Treasurer and the director by sections 12, 13, 13a and 13b, chapter 101, Oregon Laws 2010, and the amendments to ORS 295.001 (Definitions for ORS 295.001 to 295.108), 295.002 (Deposit of public funds), 295.004 (Conditions for deposit of funds in excess of specified amounts), 295.006 (Bank depository and public official filings with State Treasurer), 295.008 (Conditions for acting as custodian or bank depository), 295.013 (Custodians receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository), 295.031 (Notice to public officials regarding adequacy of collateral), 295.034 (Withdrawal of inadequately collateralized funds), 295.041 (Subrogation rights of State Treasurer), 295.046 (Limitation on depository acceptance of public funds from single public official), 295.048 (Limitations on aggregate uninsured public funds deposits), 295.053 (Custodian duties when bank depository ceases holding uninsured public funds), 295.061 (Treasurer reports), 295.071 (Investigation by regulatory bodies other than State Treasurer), 295.073 (Report to State Treasurer of certain actions by Director of Department of Consumer and Business Services), 295.081 (Time deposits), 295.084 (Designation of depository), 295.091 (Preference in selecting depositories for political subdivisions), 295.108 (State Treasurer rules), 295.205 (Accounts in financial institutions outside Oregon), 576.375 (Payment of commission moneys to authorized agent) and 711.410 (Transfer of assets after commission of act of insolvency or in contemplation of insolvency) by sections 1 to 10, 14 to 23 and 25 to 28, chapter 101, Oregon Laws 2010. [2010 c.101 §29; 2011 c.667 §2]

Sec. 30. Sections 12, 13, 13a and 13b of this 2010 Act and the amendments to ORS 295.001 (Definitions for ORS 295.001 to 295.108), 295.002 (Deposit of public funds), 295.004 (Conditions for deposit of funds in excess of specified amounts), 295.006 (Bank depository and public official filings with State Treasurer), 295.008 (Conditions for acting as custodian or bank depository), 295.013 (Custodians receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository), 295.031 (Notice to public officials regarding adequacy of collateral), 295.034 (Withdrawal of inadequately collateralized funds), 295.041 (Subrogation rights of State Treasurer), 295.046 (Limitation on depository acceptance of public funds from single public official), 295.048 (Limitations on aggregate uninsured public funds deposits), 295.053 (Custodian duties when bank depository ceases holding uninsured public funds), 295.061 (Treasurer reports), 295.071 (Investigation by regulatory bodies other than State Treasurer), 295.073 (Report to State Treasurer of certain actions by Director of Department of Consumer and Business Services), 295.081 (Time deposits), 295.084 (Designation of depository), 295.091 (Preference in selecting depositories for political subdivisions), 295.108 (State Treasurer rules), 295.205 (Accounts in financial institutions outside Oregon), 576.375 (Payment of commission moneys to authorized agent) and 711.410 (Transfer of assets after commission of act of insolvency or in contemplation of insolvency) by sections 1 to 10, 14 to 23 and 25 to 28 of this 2010 Act apply to public funds on deposit on or after January 1, 2013. [2010 c.101 §30]