Funds diversion agreement
(1) A public body, or a group of public bodies that enter into an intergovernmental agreement under ORS 238.695 (Intergovernmental agreements for collective issuance, administration or payment of bonds), that receives funds from any state agency may enter into a funds diversion agreement with the state agency for the purpose of paying the principal and interest on bonds issued under ORS 238.692 (Definitions for ORS 238.692 to 238.698) to 238.698 (Funds diversion agreement), and any premium on those bonds. A diversion agreement entered into under this section must provide that:
(a) Moneys payable to the public body or group of public bodies by the state agency from appropriations from the General Fund or any other source of moneys will be paid directly to a debt service trust fund established under ORS 238.696 (Debt service trust fund) in amounts equal to the debt service owed by the public body or group of public bodies;
(b) The state agency must pay the amounts required under the funds diversion agreement to the debt service trust fund established under ORS 238.696 (Debt service trust fund) pursuant to the schedule specified in the agreement before paying any other amounts to the public body or group of public bodies;
(c) The agreement is irrevocable; and
(d) The agreement will remain in effect until all the bonds issued by the public body or under the intergovernmental agreement are mature or redeemed.
(2) If for any reason a state agency that has entered into a funds diversion agreement is not able to pay moneys to a debt service trust fund as contemplated by the agreement, the state agency shall give notice to the public body or group of public bodies within 30 days after the state agency is aware that the moneys will not be paid.
(3) Nothing in this section, or in any funds diversion agreement entered into by a state agency under this section, may in any manner obligate the state or any state agency:
(a) To pay any amount that a public body is not otherwise entitled to receive under law; or
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