ORS 268.590
Credit enhancement of district bonds and other obligations
(1)
As used in ORS 268.600 (Issuance of revenue bonds) to 268.660 (Effect of ORS 268.600 to 268.660):(a)
“Credit enhancement agreement” means the agreement pursuant to which a credit enhancement device is provided, given or issued.(b)
“Credit enhancement device” means any letter of credit, line of credit, municipal bond insurance or other device given or provided as security for the payment of the principal of, premium, if any, or interest on revenue bonds or bond anticipation notes issued under ORS 268.600 (Issuance of revenue bonds) to 268.660 (Effect of ORS 268.600 to 268.660) or as security for the payment or performance of any of the district’s obligations under or with respect to such revenue bonds or bond anticipation notes.(c)
“Credit enhancement provider” means the person or entity providing or issuing a credit enhancement device.(2)
In connection with the issuance of revenue bonds or bond anticipation notes under ORS 268.600 (Issuance of revenue bonds) to 268.660 (Effect of ORS 268.600 to 268.660), a district may arrange for a credit enhancement device to be given, issued or provided as security for the payment of the principal of, premium, if any, or interest on such revenue bonds or bond anticipation notes or as security for the payment or performance of the district’s obligations under or with respect thereto.(3)
A district may enter into a credit enhancement agreement with a credit enhancement provider setting forth the respective rights, duties and obligations of the district and the credit enhancement provider under or with respect to such credit enhancement device, which agreement may contain such terms, covenants and conditions as shall be approved by the governing body of the district and which are not inconsistent with the provisions of ORS 268.600 (Issuance of revenue bonds) to 268.660 (Effect of ORS 268.600 to 268.660).(4)
The obligations of the district under or with respect to any credit enhancement device or credit enhancement agreement shall not in any manner or to any extent be general obligations of the district nor a charge upon any other revenues or property of the district not specifically pledged thereto.(5)
In the ordinance authorizing the issuance of revenue bonds or bond anticipation notes under ORS 268.600 (Issuance of revenue bonds) to 268.660 (Effect of ORS 268.600 to 268.660), the governing body may pledge as security for the payment or performance of the district’s obligations under or with respect to the related credit enhancement device or credit enhancement agreement all or any portion of the district’s revenues, regardless of the source from which derived, then existing or which thereafter come into existence. In addition, in such ordinance the governing body may pledge or mortgage as security for the payment or performance of its obligations under or with respect to such credit enhancement device or credit enhancement agreement any property of the district. Any such pledge or mortgage of revenues or other property may be on such terms as the governing body shall determine, including but not limited to a pledge or mortgage on a parity basis with the pledge or mortgage of such revenues or other property as security for revenue bonds or bond anticipation notes issued under ORS 268.600 (Issuance of revenue bonds) to 268.660 (Effect of ORS 268.600 to 268.660) or on a subordinated basis. In the ordinance creating such pledge or mortgage, the district may reserve the right to pledge or mortgage from time to time on a parity or subordinated basis all or any part of such pledged or mortgaged revenues or other property as security for the payment or performance of the district’s obligations under or with respect to any one or more series of revenue bonds or bond anticipation notes or credit enhancement device or credit enhancement agreement thereafter issued, given, provided or entered into by the district. [1987 c.623 §7]
Source:
Section 268.590 — Credit enhancement of district bonds and other obligations, https://www.oregonlegislature.gov/bills_laws/ors/ors268.html.
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