ORS 295.038
Assessment against collateral of qualified depositories
(1)
After making the calculation described in ORS 295.037 (Distribution of collateral after loss in qualified depository), the State Treasurer shall assess the amount of uninsured public funds against a collateral pool that consists of collateral provided by all other qualified depositories of the same type, either bank or credit union, as the closed depository as follows:(a)
First, against the closed depository, to the extent of the full value of the proceeds from the State Treasurer’s liquidation of the closed depository’s collateral under ORS 295.037 (Distribution of collateral after loss in qualified depository), plus the State Treasurer’s estimate of the amount of proceeds the State Treasurer expects to receive from collateral the State Treasurer has not yet liquidated; and(b)
Second, against all other qualified depositories on a proportionate basis determined as provided in subsection (2) of this section. The amount the State Treasurer assesses against another qualified depository may not exceed the depository’s maximum liability.(2)
For purposes of subsection (1) of this section, the State Treasurer shall determine the proportionate share of each of the other qualified depositories in the collateral pool by:(a)
Averaging, for each qualified depository, the total amounts of all uninsured public funds deposits the depository reported on the depository’s last two treasurer reports;(b)
Averaging the aggregate total amounts of all uninsured public funds deposits all qualified depositories in the pool reported on the depositories’ last two treasurer reports; and(c)
Dividing the result of the calculation performed under paragraph (a) of this subsection by the results of the calculation performed under paragraph (b) of this subsection.(3)
For purposes of the calculations set forth in subsections (1) and (2) of this section, “qualified depository” refers only to qualified depositories that are of the same type as the closed depository.(4)
Notwithstanding the assessment provisions of subsection (1) of this section, the State Treasurer shall assess the amount of a public official’s uninsured public funds deposits only against the closed depository and not against other qualified depositories, if the public official:(a)
Received appropriate notice about the closed depository from the State Treasurer under ORS 295.018 (Increase in required collateral of qualified depository) (6)(a) or 295.031 (Notice to public officials regarding adequacy of collateral) (1) and did not comply with ORS 295.034 (Withdrawal of inadequately collateralized funds); or(b)
Failed to timely comply with the requirements of ORS 295.006 (Public official filings with State Treasurer) and, as a result of failing to timely comply, did not receive appropriate notice about the closed depository from the State Treasurer under ORS 295.018 (Increase in required collateral of qualified depository) (6)(a), 295.031 (Notice to public officials regarding adequacy of collateral) (1) or 295.061 (Treasurer reports) (4)(a).(5)
Assessments the State Treasurer makes against the closed depository are payable immediately from the proceeds of the collateral delivered to the State Treasurer. Assessments the State Treasurer makes against other qualified depositories are payable on the fifth business day following demand. If a qualified depository fails to pay an assessment, the State Treasurer shall exercise the State Treasurer’s legal rights to acquire payment under the collateral, including taking possession of and liquidating any securities the depository segregated as collateral, in the amount necessary to satisfy the depository’s assessment.(6)
The State Treasurer shall distribute the amounts the State Treasurer receives from the assessments among the public officials entitled to the proceeds in proportion to the public officials’ respective claims, to the extent that the proceeds do not exceed the total amount of uninsured public funds deposits that the public officials claim.(7)
If, after all other available sources are applied, the amounts the State Treasurer receives from the assessments are inadequate to meet the total claims of the public officials to uninsured public funds deposits, the public officials may make claims against the closed depository as general creditors, but not against a qualified depository other than the closed depository.(8)
Intentionally left blank —Ed.(a)
If the final amount of proceeds the State Treasurer receives from the liquidation of collateral from a closed depository exceeds the amount of the assessment against the closed depository under subsection (1)(a) of this section, the State Treasurer shall pay the amount of the excess to the closed depository.(b)
If the final amount of proceeds the State Treasurer receives from the liquidation of collateral from other qualified depositories exceeds the amount of the assessment against the other qualified depositories in the applicable pool under subsection (1)(b) of this section, the State Treasurer shall pay the excess to the other qualified depositories in the pool in proportion to the amounts the other qualified depositories in the pool paid in assessments to the State Treasurer.(c)
If the final amount of proceeds the State Treasurer receives from the liquidation of collateral from a qualified depository other than the closed depository under subsection (5) of this section exceeds the amount of the assessment against the depository, the State Treasurer shall pay the excess to the depository.(9)
The prohibition on transfers of assets set forth in ORS 711.410 (Transfer of assets after commission of act of insolvency or in contemplation of insolvency) does not apply to assessments, payments, transfers or sales of securities made in accordance with this section. [2010 c.101 §12; 2019 c.587 §16]
Source:
Section 295.038 — Assessment against collateral of qualified depositories, https://www.oregonlegislature.gov/bills_laws/ors/ors295.html.
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