ORS 286A.045
Borrowing for current expenses
(1)
The State Treasurer may issue bonds to finance all or a portion of the current expenses of this state. The amount of bonds issued under this section at any time may not exceed the State Treasurer’s estimate of the cash flow deficit in revenues available to pay the expenses that are financed with the bonds, plus amounts for reasonable reserves and costs.(2)
To estimate the amount of cash flow deficit, the State Treasurer shall take into account the most recent cash flow forecast made by the Oregon Department of Administrative Services and any other information the State Treasurer determines is reliable and relevant.(3)
When the State Treasurer issues bonds under this section:(a)
The Oregon Department of Administrative Services shall account for and administer the proceeds of the bonds and the repayment of the bonds. The State Treasurer, in consultation with the Oregon Department of Administrative Services, shall determine the appropriate investment strategy for the proceeds of the bonds. The State Treasurer shall notify the Director of the Oregon Department of Administrative Services, the Legislative Fiscal Officer and the Legislative Revenue Officer before issuing bonds under this section.(b)
The State Treasurer may pledge:(A)
All or a portion of the revenues of the State of Oregon to pay bonds issued under this section.(B)
The full faith and credit of the State of Oregon to pay bonds issued under this section if the bonds are payable from the Short Term Borrowing Account established under ORS 286A.050 (Short Term Borrowing Account) and the bonds mature not later than the end of the biennium in which the bonds are issued.(c)
A state agency may use the proceeds of bonds issued under this section:(A)
For a purpose for which the revenues that are pledged to pay the bonds may be used;(B)
To pay principal, interest and premium, if any, on the bonds or a rebate or penalty due to the United States in connection with the bonds;(C)
To pay the cost of credit enhancement devices with respect to the bonds;(D)
To pay the costs of the State Treasurer and the Oregon Department of Administrative Services of issuing, administering or maintaining the bonds including, but not limited to, the cost of a consultant or adviser retained by the State Treasurer or the Oregon Department of Administrative Services; or(E)
To make payments with respect to agreements for the exchange of interest rates.(4)
This section constitutes complete authority for the State Treasurer to issue bonds described in this section.(5)
ORS 286A.035 (Bond budget authorization) does not apply to bonds authorized by this section.(6)
The requirements and limitations that apply to certificates of indebtedness issued under ORS 293.165 (Borrowing to pay warrants against General Fund) do not apply to bonds issued by the State Treasurer under this section.(7)
This section and ORS 286A.050 (Short Term Borrowing Account) constitute complete authorization by the Legislative Assembly for the use and expenditure of the proceeds of the bonds and the revenues pledged to pay those bonds for the purposes described in subsection (3)(c) of this section. Additional appropriation or authorization is not necessary. The authorization contained in this section and ORS 286A.050 (Short Term Borrowing Account) to spend moneys for the purposes described in subsection (3)(c) of this section does not constitute an appropriation for purposes of ORS 291.357 (Limitation on rate of growth of appropriations for general governmental purposes).(8)
The proceeds of bonds issued by the State Treasurer under this section do not constitute revenues received by the General Fund for purposes of section 14, Article IX of the Oregon Constitution, and ORS 291.349 (Revenue estimate).(9)
The State Treasurer may perform the duties and exercise the powers of a related agency under this section. [2007 c.783 §11]
Source:
Section 286A.045 — Borrowing for current expenses, https://www.oregonlegislature.gov/bills_laws/ors/ors286A.html.
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