2011 ORS § 367.615¹
Bond issuance
  • bonds not general obligation
  • conditions for issuance of additional bonds
  • use of bond proceeds

(1) The Department of Transportation may request the State Treasurer to issue and sell revenue bonds known as Highway User Tax Bonds as provided in this section.

(2) Bonds issued under this section do not constitute a debt or general obligation of this state or any political subdivision of this state but are secured and payable from moneys described under ORS 367.605 (Source of funds to secure Highway User Tax Bonds). A holder of bonds issued under this section may not compel the exercise of the ad valorem taxing power of the state to pay the bond debt service on the bonds.

(3) This state shall provide for the continued assessment, levy, collection and deposit into the highway fund moneys described under ORS 367.605 (Source of funds to secure Highway User Tax Bonds) in amounts sufficient to pay, when due, the annual bond debt service and other amounts necessary to meet requirements established by indenture under ORS 367.640 (Indenture).

(4) This state may not in any way impair obligations of any agreement between this state and the holders of bonds issued under this section.

(5) The authority granted by this section is continuing and the department reserves the right to request the State Treasurer to issue additional bonds under this section subject to the following:

(a) Additional bonds must be secured equally and ratably by the pledge and appropriation of moneys described under ORS 367.605 (Source of funds to secure Highway User Tax Bonds) unless the State Treasurer, as permitted by law and the contracts with owners of outstanding Highway User Tax Bonds, issues additional bonds in different series and secures each series by a lien on and pledge of moneys described under ORS 367.605 (Source of funds to secure Highway User Tax Bonds) that is superior to or subordinate to the lien of the pledge securing any other series of Highway User Tax Bonds.

(b) The State Treasurer may only issue additional bonds if sufficient moneys described under ORS 367.605 (Source of funds to secure Highway User Tax Bonds) may be pledged to pay the annual bond debt service for all outstanding bonds issued under this section as well as for the additional bonds.

(6) Proceeds from the sale of bonds under this section are declared to be for the purpose of building and maintaining permanent public roads and may be used:

(a) To finance the cost of state highway, county road and city street projects in this state.

(b) To pay the cost of issuing the bonds.

(c) For loans to cities and counties as provided under ORS 367.035 (Loans to municipalities) or 367.655 (Loan of bond proceeds to cities and counties).

(d) To pay the bond debt service of the bonds.

(e) To pay the costs of the State Treasurer and the department to administer and maintain the bonds and the Highway User Tax Bond program, including the cost of consultants, advisors, attorneys or other professional service providers appointed, retained or approved by the treasurer or the department.

(f) To pay capitalized interest, principal or premium, if any, of the bonds.

(g) For rebates or penalties due to the United States in connection with the bonds.

(7) The State Treasurer, at the request of the department, may issue Highway User Tax Bonds as capital appreciation bonds, auction rate bonds, variable rate bonds, deep discount bonds or deferred interest bonds.

(8) The State Treasurer or the Director of Transportation, if so directed by the treasurer, may obtain credit enhancement or an agreement for exchange of interest rates to provide additional security or liquidity for the bonds or to provide funding, in lieu of cash, for all or a portion of a bond debt service reserve account established with respect to the bonds. [1985 c.551 §3; 2003 c.201 §25; 2007 c.783 §170]