ORS 295.018
Increase in required collateral of qualified depository

  • notifications
  • failure to increase collateral

(1)

Intentionally left blank —Ed.

(a)

Throughout the period that a qualified depository possesses uninsured public funds deposits, the State Treasurer may require the depository to maintain collateral, including securities on deposit with the depository’s custodians, that has a value not less than 110 percent of the greater of:

(A)

All uninsured public funds the qualified depository holds; or

(B)

The average of the balances of uninsured public funds the qualified depository holds, as shown on the last two immediately preceding treasurer reports.

(b)

In consultation with the Director of the Department of Consumer and Business Services, the State Treasurer may permit a qualified depository to increase the depository’s collateral as required under paragraph (a) of this subsection over a period of time the State Treasurer specifies or may require a qualified depository to increase the depository’s collateral to an amount that is less than the amount specified in paragraph (a) of this subsection.

(2)

The State Treasurer shall order an increase in collateral under subsection (1) of this section if the director so advises. If the qualified depository is a national bank, a federally chartered savings bank, a savings and loan association or a federal credit union, in giving advice to the State Treasurer the director may rely exclusively on information that the federal regulatory agencies and the bank, savings bank, association or federal credit union provide to the director on forms the director prescribes. As a condition of being analyzed and reviewed by the director, a national bank, a federally chartered savings bank, a savings and loan association or a federal credit union shall agree and consent to provide the director with accurate, pertinent and timely information.

(3)

If the State Treasurer orders a qualified depository to increase the depository’s collateral under subsection (1) of this section, the State Treasurer shall give notice of the order to the director and the depository’s custodians within one business day after issuing the order.

(4)

The director’s failure to inform the State Treasurer of the condition of any qualified depository does not give a public depositor any right or impose liability on the director. The State Treasurer is not liable to a public depositor or to a qualified depository for increasing or not increasing the collateral requirement as authorized in subsection (1) of this section.

(5)

A qualified depository that the State Treasurer notifies of the increased collateral requirement shall:

(a)

Within three business days after receiving the notice, submit to the State Treasurer the qualified depository’s plan to increase the depository’s collateral to the level the State Treasurer requires under subsection (1) of this section; and

(b)

Within five business days after receiving approval of the plan the qualified depository submitted under paragraph (a) of this subsection, or within a longer period approved by the State Treasurer in coordination with the Department of Consumer and Business Services, increase the depository’s collateral to the level the State Treasurer requires under subsection (1) of this section.

(6)

Intentionally left blank —Ed.

(a)

If the qualified depository does not increase the depository’s collateral to the level the State Treasurer requires under subsection (1) of this section within the applicable period under subsection (5)(b) of this section, the State Treasurer shall immediately send, to each public official who has notified the State Treasurer that the public official has public funds on deposit in that depository, notice that the depository has failed to comply.

(b)

If, after giving notice as required by paragraph (a) of this subsection, the State Treasurer receives notice that the qualified depository has complied with the increased collateral requirements, the State Treasurer shall notify each public official that the State Treasurer notified under paragraph (a) of this subsection that the depository has complied.

(7)

A qualified depository that does not comply with subsection (5) of this section may not accept additional uninsured public funds deposits.

(8)

Records the State Treasurer receives or compiles that contain the collateralization requirement for a depository and the amount of collateral a custodian holds are exempt from public disclosure unless the public interest requires disclosure in the particular instance.

(9)

The State Treasurer may require a qualified depository that must increase the depository’s collateral under subsection (5) of this section to file the reports required under ORS 295.061 (Treasurer reports) (3). [1975 c.515 §2; 1981 c.440 §1; 1985 c.762 §182; 1987 c.373 §§28a,28b; 1987 c.554 §1; 1989 c.171 §41; 1991 c.327 §1; 2007 c.871 §18; 2009 c.821 §7; 2010 c.101 §8; 2017 c.500 §4; 2019 c.587 §11]

Source: Section 295.018 — Increase in required collateral of qualified depository; notifications; failure to increase collateral, https://www.­oregonlegislature.­gov/bills_laws/ors/ors295.­html.

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
Public official filings with State Treasurer
295.007
Conditions for acting as custodian
295.008
Qualified depositories
295.012
State Treasurer rule setting maximum liability for qualified credit union depositories
295.013
Custodian’s receipt
295.015
Maintenance of securities by qualified depository
295.018
Increase in required collateral of qualified depository
295.022
Collateral not required for deferred compensation funds
295.031
Notice to public officials regarding adequacy of collateral
295.034
Withdrawal of inadequately collateralized funds
295.037
Distribution of collateral after loss in qualified depository
295.038
Assessment against collateral of qualified depositories
295.039
State Treasurer acceptance of moneys for purposes of administering ORS 295.038
295.041
Subrogation rights of State Treasurer
295.046
Limitation on acceptance of public funds from single public official
295.048
Limitations on aggregate uninsured public funds deposits
295.053
Custodian duties when qualified depository ceases holding uninsured public funds
295.056
Liability of public officials for loss of public funds
295.061
Treasurer reports
295.071
Investigation by regulatory bodies other than State Treasurer
295.073
Report to State Treasurer of actions that reduce net worth of depository
295.081
Time deposits
295.084
State Treasurer designation of depositories
295.091
Geographic preference in selecting depositories
295.093
Depositing moneys with treasurer of public body
295.097
State agency agreements with third parties
295.098
Public body agreements with third parties
295.101
Public funds not subject to ORS 295.001 to 295.108
295.103
Certain moneys related to motor carriers not public funds
295.106
State Treasurer charges
295.108
State Treasurer rules
295.195
Deposit of funds in foreign country
295.205
Accounts in financial institutions outside Oregon
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