ORS 295.015¹
Maintenance of securities by bank depository

Except as provided in ORS 295.018 (Increase in required collateral of bank depository):

(1)(a) Each bank depository throughout the period of its possession of public fund deposits in excess of the amounts insured or guaranteed as described in ORS 295.002 (Deposit of public funds) (1)(a) and (b) shall maintain on deposit with its custodian, at its own expense, securities having a value at least equal to its maximum liability and as otherwise prescribed in ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules). Such collateral shall be deposited with the bank depository’s custodian and shall be clearly designated as security for the benefit of depositors of public funds under ORS 295.001 (Definitions for ORS 295.001 to 295.108) to 295.108 (State Treasurer rules).

(b) For purposes of this section, when pledged as collateral for public funds deposits, loans described in ORS 295.001 (Definitions for ORS 295.001 to 295.108) (17)(f) shall be discounted to 75 percent of the unpaid principal balance owing on the loan from time to time, or to a lower value determined by the State Treasurer from time to time.

(c) When a bond anticipation note is pledged as collateral for public funds deposits, if there is no readily determinable market value for the note, it shall be discounted to 75 percent of the unpaid principal balance owing on the note from time to time, or to a lower value determined by the State Treasurer from time to time.

(2) The bank depository may deposit other eligible securities with its custodian and withdraw from deposit securities theretofore pledged to secure deposits of public funds, if the remaining securities have a value not less than its maximum liability. The State Treasurer shall execute such releases and surrender such custodian’s receipts as are appropriate to effect substitutions and withdrawals of matured and excess pledged securities.

(3) If a bank depository’s maximum liability increases because it ceases to be a well capitalized bank depository or because it ceases to be an adequately capitalized bank depository, within five business days after the date on which the bank depository’s maximum liability increases, the bank depository shall:

(a) Notify its custodian and the State Treasurer in writing that the bank depository’s maximum liability has increased, setting forth the bank depository’s new maximum liability; and

(b) Tender to its custodian additional securities having sufficient value to increase the total value of its securities pledged as collateral for public funds deposits to the new maximum liability of the bank depository.

(4) If a bank depository’s maximum liability decreases because it moves from being an undercapitalized bank depository to being a well capitalized bank depository or an adequately capitalized bank depository, or because it moves from being an adequately capitalized bank depository to a well capitalized bank depository, the bank depository may:

(a) Notify its custodian and the State Treasurer in writing that the bank depository’s maximum liability has decreased, setting forth the bank depository’s new maximum liability; and

(b) With the written approval of the State Treasurer, withdraw from its custodian any securities that exceed the bank depository’s new maximum liability.

(5) The State Treasurer shall act upon requests for releases and withdrawals of securities under subsections (2) and (4)(b) of this section within three business days after the receipt of each request. [1967 c.451 §2; 1975 c.515 §3; 2007 c.871 §17]

Note: The amendments to 295.015 (Maintenance of securities by bank depository) by section 17, 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.

295.015 (Maintenance of securities by bank depository). Except as provided in ORS 295.018 (Increase in required collateral of bank depository):

(1) Each depository throughout the period of its possession of public fund deposits shall maintain on deposit with its custodians, at its own expense, securities having a value not less than 25 percent of the certificates of participation issued by its pool manager.

(2) The depository may deposit other eligible securities with its custodian and withdraw from deposit securities theretofore pledged to secure deposits of public funds, if the remaining securities have a value not less than 25 percent of outstanding certificates of participation of the pool manager. The pool manager shall execute such releases and surrender such custodian’s receipts as are appropriate to effect substitutions and withdrawals of excess pledged securities.

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