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 for bank depositories. 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 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) Except as provided in subsection (4) of this section, enters into a pledge agreement; and

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

(3) After July 1, 2008, any insured institution or trust company that is not acting as a bank depository on July 1, 2008, and 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 funds on deposit for a public official that exceed the limits specified in ORS 295.002 (Deposit of public funds) for that type of depository. The provisions of ORS 295.006 (Bank depository and public official filings with State Treasurer), 295.013 (Custodian's 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. [2005 c.112 §3; 2007 c.871 §16]

Note: The amendments to 295.008 (Conditions for acting as custodian or bank depository) by section 16, 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, is set forth for the user’s convenience.

295.008 (Conditions for acting as custodian or bank depository). (1)(a) An insured institution or trust company described in ORS 295.001 (Definitions for ORS 295.001 to 295.108) (2)(c) may not be a custodian bank under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.125, 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) With the approval of the State Treasurer, a depository bank may be a custodian bank with respect to its own securities.

(2) An insured institution or trust company described in ORS 295.001 (Definitions for ORS 295.001 to 295.108) (4) may not be a depository bank under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.125, unless it:

(a) 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; and

(b) Except as provided in subsection (3) of this section, enters into a written agreement with 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 shall be continuously maintained as a written record of the insured institution or trust company.

(3) An insured institution or trust company described in ORS 295.001 (Definitions for ORS 295.001 to 295.108) (4) may be a depository bank under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.125 without entering into the agreement described in subsection (2) of this section if the insured institution or trust company does not hold any funds on deposit for a public official that exceed the limits specified in ORS 295.002 (Deposit of public funds) for that type of depository. The provisions of ORS 295.006 (Bank depository and public official filings with State Treasurer), 295.013 (Custodian's receipt), 295.015 (Maintenance of securities by bank depository), 295.018 (Increase in required collateral of bank depository), 295.045, 295.065, 295.105 and 295.185 do not apply to an insured institution or trust company that is a depository bank under this subsection.

(4) An insured institution or trust company may not be a pool manager with respect to securities that it deposits with its custodians as collateral for the security of public fund deposits, and an insured institution or trust company may not be a pool manager 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.

Note: Section 33, chapter 871, Oregon Laws 2007, provides:

Sec. 33. On or before July 1, 2008, each insured institution and trust company that wishes to act as a bank depository under ORS 295.005 to 295.165 [renumbered 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules)] from and after July 1, 2008, shall file with the State Treasurer an initial written report signed or authenticated by an officer of the insured institution or trust company, together with an executed copy of its pledge agreement. The report shall set forth:

(1) The estimated total amount of public funds that will be on deposit with the insured institution or trust company as of July 1, 2008;

(2) The estimated net worth of the insured institution or trust company on July 1, 2008;

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

(4) The identity of its custodian. [2007 c.871 §33]

Atty. Gen. Opinions

Invest­ment of deferred compensa­tion funds, (1976) Vol 37, p 1284; county fair associa­tion as public corpora­tion, (1979) Vol 39, p 505

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