2017 ORS 223.262¹
Assessment contracts
  • transfer of contract rights by local government
  • use of proceeds

(1) As used in ORS 223.205 (Scope and application) and 223.210 (Right of property owners to apply for installment payment of assessment) to 223.295 (Limit on city indebtedness):

(a) “Assessment contract” means the obligation to pay final assessments in installments that arise when a property owner submits an application to pay assessments in installments under ORS 223.210 (Right of property owners to apply for installment payment of assessment) or a similar provision of a local charter.

(b) “Assessment contract rights” includes the right to receive installment payments of final assessments, with interest, made under an assessment contract, and the right to enforce the lien of the final assessment.

(2) Any local government that receives or expects to receive assessment contracts may:

(a) Sell or assign to third parties all or any portion of its assessment contract rights.

(b) Create corporations or other business entities to factor assessment contract rights.

(c) Create grantor trusts and transfer to the trusts assessment contract rights.

(d) Contract to service assessment contracts and assessment liens for the owners of assessment contract rights, or contract with third parties to service assessment contracts and assessment liens for the owners of assessment contract rights.

(e) Serve as a trustee for the owners of assessment contract rights.

(f) Enter into contracts necessary to carry out the provisions of this section.

(3) Any trust created under this section may fractionalize and sell assessment contract rights.

(4) Assessment contract rights, any interests therein and any interests in trusts secured primarily by assessment contract rights shall be exempt from registration under ORS 59.055 (Conditions of offer and sale of securities).

(5) If assessment contract rights that secure outstanding obligations of a local government are sold or assigned under this section, an amount shall be placed irrevocably in escrow that is calculated to be sufficient to pay all principal and interest on the outstanding obligations as they mature or are irrevocably called for prior redemption. Any sale proceeds not required to fund the escrow may be placed in the general fund of the local government. If only a portion of the contract rights securing outstanding obligations is sold, then the amount of outstanding obligations that must be defeased pursuant to this subsection shall be that proportion of the principal amount of the outstanding obligations that the principal amount of the contract rights that are sold represents to the total principal amount of the contract rights that secure the outstanding obligations. [1989 c.603 §2; 1991 c.902 §17; 2003 c.802 §11; 2007 c.783 §75]

Atty. Gen. Opinions

Applica­tion of Bancroft Bonding Act to weatheriza­tion of private homes and apart­ment buildings, (1980) Vol 41, p 58; applica­tion of Ballot Measure 47 (Oregon Constitu­tion Article XI, sec­tion 11g) to issuance of Bancroft bonds, (1996) Vol 48, p 67

Chapter 223

Notes of Decisions

Fact that ordinance, which charged fee to prop­erty owners taking advantage of privilege of making connec­tion to city wa­ter system, specified that pay­ment would be secured by liens which would be “enforced” in matter provided by this chapter did not, of itself, show that such charges were “assess­ments.” Montgomery Brothers v. City of Corvallis, 34 Or App 785, 580 P2d 190 (1978)

Circuit court has jurisdic­tion to determine merits of assess­ment, but cannot address whether assess­ment is subject to constitu­tional limits on prop­erty taxes. Martin v. City of Tigard, 14 OTR 517 (1999), aff’d 335 Or 444, 72 P3d 619 (2003)

State statutory pro­ce­dures for financing local improve­ments are not exclusive and do not displace consistent local pro­ce­dures. Baker v. City of Woodburn, 190 Or App 445, 79 P3d 901 (2003), Sup Ct review denied

1 Legislative Counsel Committee, CHAPTER 223—Local Improvements and Works Generally, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors223.­html (2017) (last ac­cessed Mar. 30, 2018).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 223, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano223.­html (2017) (last ac­cessed Mar. 30, 2018).
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.