ORS 328.441¹
Custody and disbursement of school district funds

(1) Common school district boards and union high school district boards shall designate the persons to be custodians of school funds of their respective districts. Such funds shall be disbursed only in the manner provided by ORS 328.445 (Disbursement of school funds by check or warrant) (1).

(2) For the purpose of receiving deposits of school funds, the district school board of each district described in subsection (1) of this section shall designate such bank or banks within the county or counties in which the district is located, as the board deems safe and proper depositories for school district funds. The custodian designated under subsection (1) of this section is not liable personally or upon official bond of the custodian for moneys lost by reason of failure or insolvency of any bank that becomes a depository under this subsection.

(3) If the district does not designate a custodian of school funds, the county treasurer or county fiscal officer shall be custodian of funds of all school districts. School district funds in the county treasurer’s or county fiscal officer’s custody shall be disbursed only upon warrants drawn on the county treasurer or county fiscal officer by the district school board in the manner provided by law.

(4) The proceeds of the sale of school district bonds or warrants shall be used solely for the purpose for which the bonds or warrants were issued, including reduction of existing bond or warrant indebtedness. [1953 c.89 §§2,3,4; 1955 c.312 §2; 1965 c.100 §66; 1975 c.770 §6; 1981 c.441 §3; 2003 c.226 §8]

Notes of Decisions

Since ORS 294.035 (Investment of funds of political subdivisions), together with ORS 328.255 (Registration of bonds and negotiable interest-bearing warrants) and this sec­tion, do not define county treasurer’s invest­ment of school district proceeds as “use,” treasurer’s pooling of proceeds with those of other govern­ments for invest­ment was not “use” but was rather the manner in which treasurer exercised custody over funds. Urban Renewal Agency v. Swank, 54 Or App 591, 635 P2d 1344 (1981), Sup Ct review denied

Atty. Gen. Opinions

Designa­tion of county treasurer as custodian of district funds by certain school districts; invest­ment of funds by school district, (1974) Vol 36, p 827

1 Legislative Counsel Committee, CHAPTER 328—Local Financing of Education, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors328.­html (2019) (last ac­cessed May 16, 2020).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 328, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano328.­html (2019) (last ac­cessed May 16, 2020).
 
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