If, upon satisfactory evidence, the Director of the Employment Department finds it necessary for the protection of the Paid Family and Medical Leave Insurance Fund established under ORS 657B.430 (Paid Family and Medical Leave Insurance Fund), the director may require any employer subject to this chapter, other than the state of Oregon, and every state officer, board, commission, department, institution, branch, agency or political subdivision of this state, to deposit and keep on deposit with the director a sum equal to the contributions due or estimated to be due from the employer for a period of three calendar quarters.
(a) In lieu of a deposit required under subsection (1) of this section, the director may accept a bond or an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 (Additional definitions for Bank Act) in a form acceptable to the director to secure payment of contributions to become due to the fund.
The deposit or posting of a bond or letter of credit under paragraph (a) of this subsection shall not relieve the employer of the obligation to make contributions to the fund as provided under ORS 657B.150 (Contributions).
The director may at any time apply any portion of the deposit, payment on the bond or the proceeds of the letter of credit to the payment of any amounts due from the employer under any provisions of this chapter.
(a) Except as provided in subsection (4) of this section, any deposit, bond or letter of credit shall be deemed for all purposes to become the sole property of the director and shall be deposited in the fund and held for the sole benefit of the fund.
The deposit, bond or letter of credit shall be prior to all other liens, claims or encumbrances and shall be exempt from any process, attachment, garnishment or execution whatsoever and shall be for the sole benefit of the fund.
(a) If an employer ceases to be an employer subject to this chapter, such sums as are on deposit in the fund shall first be applied to any amounts due from the employer to the fund under any provisions of this chapter.
Only upon receipt of all payments due to the fund from an employer described in paragraph (a) of this subsection, the director shall refund to the employer all deposits remaining to the employer’s credit in the fund and shall cancel any bond or letter of credit given under this section.
An employer described in paragraph (a) of this subsection shall have no interest in a deposit, bond or letter of credit prior to full compliance with this section and all provisions of this chapter. [2019 c.700 §23]Note: 657B.190 (Employer’s security for payment of contributions) becomes operative January 1, 2022. See section 63, chapter 700, Oregon Laws 2019.