ORS 295.001¹
Definitions for ORS 295.001 to 295.108

As used in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules), unless the context requires otherwise:

(1) "Adequately capitalized" means a bank depository that is classified as adequately capitalized by its primary federal regulatory authority.

(2) "Bank depository" means an insured institution or trust company that:

(a) Maintains a head office or branch in this state in the capacity of an insured institution or trust company; and

(b) Complies with ORS 295.008 (Conditions for acting as custodian or bank depository).

(3) "Business day" means any day other than a federal or State of Oregon legal holiday or a day on which offices of the State of Oregon are otherwise authorized by law to remain closed.

(4) "Credit union depository" means a credit union as defined in ORS 723.006 ("Credit union" defined) or a federal credit union if:

(a) The shares and deposits of the credit union or federal credit union are insured by the National Credit Union Share Insurance Fund; and

(b) The credit union or federal credit union maintains a head office or branch in this state in the capacity of a credit union or federal credit union.

(5) "Custodian bank" or "custodian" means one of the following institutions designated by the bank depository for its own account:

(a) The Federal Home Loan Bank designated to serve this state, or any branch of that bank; or

(b) Any insured institution or trust company that:

(A) Is authorized to accept deposits or transact trust business in this state;

(B) Complies with ORS 295.008 (Conditions for acting as custodian or bank depository); and

(C) Has been approved by the State Treasurer to serve as a custodian bank, if the State Treasurer has approved custodians under ORS 295.008 (Conditions for acting as custodian or bank depository).

(6) "Custodian’s receipt" or "receipt" means a document issued by a custodian bank describing the securities deposited with it by a bank depository to secure public fund deposits.

(7) "Depository" means a bank depository or a credit union depository.

(8) "Financial institution outside this state" means a financial institution, as defined in ORS 706.008 (Additional definitions for Bank Act), that is not an extranational institution, as defined in ORS 706.008 (Additional definitions for Bank Act), and is not a bank depository or credit union depository, as defined in this section.

(9) "Insured institution" means an insured institution as defined in ORS 706.008 (Additional definitions for Bank Act).

(10) "Loss" means the issuance of an order by a regulatory or supervisory authority or a court of competent jurisdiction:

(a) Restraining a bank depository from making payments of deposit liabilities; or

(b) Appointing a receiver for a public depository.

(11) "Maximum liability" of a bank depository on any given date means a sum equal to:

(a) For a well capitalized bank depository, 10 percent of the greater of:

(A) All public funds held by the bank depository, as shown on the most recent treasurer report;

(B) The average of the balances of public funds held by the bank depository, as shown on the last four immediately preceding treasurer reports; or

(C) An amount otherwise prescribed in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules).

(b) For an adequately capitalized bank depository, 25 percent of the greater of:

(A) All public funds held by the bank depository, as shown on the most recent treasurer report;

(B) The average of the balances of public funds held by the bank depository, as shown on the last four immediately preceding treasurer reports; or

(C) An amount otherwise prescribed in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules).

(c) For an undercapitalized bank depository, 110 percent of the greater of:

(A) All public funds held by the bank depository; or

(B) The average of the balances of public funds held by the bank depository, as shown on the last four immediately preceding treasurer reports.

(12) "Net worth" of a bank depository means:

(a) The equity capital of the bank depository, as shown on the immediately preceding report of condition and income, and may include capital notes and debentures that are subordinate to the interests of depositors; or

(b) An amount of equity capital designated by the State Treasurer.

(13) "Pledge agreement" means a written agreement among an insured institution or trust company, the State Treasurer and a custodian that pledges the securities deposited by the insured institution or trust company with the custodian as collateral for deposits of public funds held by the insured institution or trust company. The agreement must be approved by the board of directors or loan committee of the insured institution or trust company and must be continuously maintained as a written record of the insured institution or trust company.

(14) "Public funds" or "funds" means funds under the control or in the custody of a public official by virtue of office.

(15) "Public official" means each officer or employee of this state or any agency, political subdivision or public or municipal corporation thereof, or any housing authority, who by law is made the custodian of or has control of any public funds.

(16) "Report of condition and income" means the quarterly report submitted to a bank depository’s primary federal regulatory authority.

(17) "Security" or "securities" means:

(a) Obligations of the United States, including those of its agencies and instrumentalities and of government sponsored enterprises;

(b) Obligations of the International Bank for Reconstruction and Development;

(c) Bonds of any state of the United States:

(A) That are rated in one of the four highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating state and municipal bonds; or

(B) Having once been so rated are ruled to be eligible securities for the purposes of ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules), notwithstanding the loss of such rating;

(d) Bonds of any county, city, school district, port district or other public body in the United States payable from or secured by ad valorem taxes and that meet the rating requirement or are ruled to be eligible securities as provided in paragraph (c) of this subsection;

(e) Bonds of any county, city, school district, port district or other public body issued pursuant to the Constitution or statutes of the State of Oregon or the charter or ordinances of any county or city within the State of Oregon, if the issuing body has not been in default with respect to the payment of principal or interest on any of its bonds within the preceding 10 years or during the period of its existence if that is less than 10 years;

(f) With the permission of the State Treasurer and in accordance with rules adopted by the State Treasurer, loans made to any county, city, school district, port district or other public body in the State of Oregon, if the borrower has not been in default with respect to the payment of principal or interest on any of its loans within the preceding 10 years or during the period of its existence if that is less than 10 years;

(g) With the permission of the State Treasurer and in accordance with rules adopted by the State Treasurer, bond anticipation notes issued, sold or assumed by an authority under ORS 441.560 (Borrowing);

(h) Bonds, notes, letters of credit or other securities or evidence of indebtedness constituting the direct and general obligation of a federal home loan bank or Federal Reserve bank;

(i) Debt obligations of domestic corporations that are rated in one of the three highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating corporate debt obligations; and

(j) Collateralized mortgage obligations and real estate mortgage investment conduits that are rated in one of the two highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating corporate debt obligations.

(18) "Treasurer report" means a written report signed or authenticated by an officer of a bank depository setting forth as of the close of business on a specified date:

(a) The total amount of public funds on deposit with the bank depository;

(b) The net worth of the bank depository;

(c) The amount and nature of eligible collateral then on deposit with its custodian to collateralize the bank depository’s public funds deposits; and

(d) The identity of its custodian.

(19) "Treasurer report due date" means a date not less than 10 business days after the date a bank depository’s report of condition and income is due to be submitted to its federal regulatory authority.

(20) "Trust company" means a trust company as defined in ORS 706.008 (Additional definitions for Bank Act).

(21) "Undercapitalized" means a bank depository that is classified as undercapitalized by its primary federal regulatory authority.

(22) "Value" means the current market value of securities.

(23) "Well capitalized" means a bank depository that is classified as well capitalized by its primary federal regulatory authority. [Formerly 295.005]

Note: The amendments to 295.001 (Definitions for ORS 295.001 to 295.108) (formerly 295.005) by section 15a, chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all public funds on deposit on or after July 1, 2008. See sections 36 and 37, chapter 871, Oregon Laws 2007, as amended by sections 39 and 40, chapter 871, Oregon Laws 2007. The text that is operative until July 1, 2008, including amendments by section 123, chapter 783, Oregon Laws 2007, is set forth for the user’s convenience.

295.001 (Definitions for ORS 295.001 to 295.108). As used in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.125, unless the context requires otherwise:

(1) "Certificate of participation" or "certificate" means a nonnegotiable document issued by a pool manager to a public official.

(2) "Custodian bank" or "custodian" means the following institutions designated by the depository bank for its own account:

(a) The Federal Reserve Bank designated to serve this state, or any branch of that bank;

(b) The Federal Home Loan Bank designated to serve this state, or any branch of that bank;

(c) Any insured institution or trust company, as those terms are defined in ORS 706.008 (Additional definitions for Bank Act), that is authorized to accept deposits or transact trust business in this state and that complies with ORS 295.008 (Conditions for acting as custodian or bank depository); and

(d) The fiscal agency of the State of Oregon, duly appointed and acting as such agency pursuant to ORS 286A.132 (Debt-related advisory services).

(3) "Custodian’s receipt" or "receipt" means a document issued by a custodian bank to a pool manager describing the securities deposited with it by a depository bank to secure public fund deposits.

(4) "Depository bank" or "depository" means an insured institution or trust company, as those terms are defined in ORS 706.008 (Additional definitions for Bank Act), a credit union, as defined in ORS 723.006 ("Credit union" defined), the shares and deposits of which are insured by the National Credit Union Share Insurance Fund, or a federal credit union, if the institution, trust company or credit union:

(a) Maintains a head office or a branch in this state in the capacity of an insured institution, trust company, credit union or federal credit union; and

(b) In the case of an insured institution or trust company, complies with ORS 295.008 (Conditions for acting as custodian or bank depository).

(5) "Pool manager" means:

(a) The State Treasurer;

(b) Any insured institution or trust company, as those terms are defined in ORS 706.008 (Additional definitions for Bank Act), a credit union, as defined in ORS 723.006 ("Credit union" defined), the shares and deposits of which are insured by the National Credit Union Share Insurance Fund, or a federal credit union, if the institution, trust company or credit union:

(A) Is authorized to accept deposits or transact trust business in this state; and

(B) In the case of an insured institution or trust company, complies with ORS 295.008 (Conditions for acting as custodian or bank depository);

(c) The Federal Reserve Bank designated to serve this state, or any branch of that bank; or

(d) The Federal Home Loan Bank designated to serve this state, or any branch of that bank.

(6) "Public funds" or "funds" means funds under the control or in the custody of a public official by virtue of office.

(7) "Security" or "securities" means:

(a) Obligations of the United States, including those of its agencies and instrumentalities;

(b) Obligations of the International Bank for Reconstruction and Development;

(c) Bonds of any state of the United States:

(A) That are rated in one of the four highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating state and municipal bonds; or

(B) Having once been so rated are ruled to be eligible securities for the purposes of ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.125, notwithstanding the loss of such rating;

(d) Bonds of any county, city, school district, port district or other public body in the United States payable from ad valorem taxes levied generally on substantially all property within the issuing body and that meet the rating requirement or are ruled to be eligible securities as provided in paragraph (c) of this subsection;

(e) Bonds of any county, city, school district, port district or other public body issued pursuant to the Constitution or statutes of the State of Oregon or the charter or ordinances of any county or city within the State of Oregon, if the issuing body has not been in default with respect to the payment of principal or interest on any of its bonds within the preceding 10 years or during the period of its existence if that is less than 10 years;

(f) Bond anticipation notes issued, sold or assumed by an authority under ORS 441.560 (Borrowing);

(g) One-family to four-family housing mortgage loan notes related to property situated in the State of Oregon, which are owned by a depository bank, no payment on which is more than 90 days past due, and which are eligible collateral for loans from the Federal Reserve Bank of San Francisco under section 10(b) of the Federal Reserve Act and regulations thereunder;

(h) Bonds, notes, letters of credit or other securities or evidence of indebtedness constituting the direct and general obligation of a federal home loan bank or Federal Reserve bank;

(i) Debt obligations of domestic corporations that are rated in one of the three highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating corporate debt obligations;

(j) Collateralized mortgage obligations and real estate mortgage investment conduits that are rated in one of the two highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating corporate debt obligations; and

(k) One-family to four-family housing mortgages that have been secured by means of a guarantee as to full repayment of principal and interest by an agency of the United States Government, including the Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

(8) "Public official" means each officer or employee of this state or any agency, political subdivision or public or municipal corporation thereof who by law is made the custodian of or has control of any public funds.

(9) "Value" means the current market value of securities.

Chapter 295

Atty. Gen. Opinions

Invest­ment of funds by school district, (1974) Vol 36, p 827

1 Legislative Counsel Committee, CHAPTER 295—Depositories of Public Funds and Securities, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors295.­pdf (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 295, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­295ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information