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The Oregon Administrative Rules contain OARs filed through October 15, 2014
 
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DEPARTMENT OF ADMINISTRATIVE SERVICES,
CHIEF FINANCIAL OFFICE

 

DIVISION 75

STATE BORROWING ADMINISTERED BY THE DEPARTMENT

122-075-0100

Authority

The Department of Administrative Services is authorized to administer certain state borrowing programs for the benefit of State Agencies including but not limited to the programs described below:

(1) Lottery bond financings authorized by ORS 286A.560 to 286A.585 and 327.700 to 327.711, issued by the State Treasurer with the concurrence of the Director of the Department of Administrative Services.

(2) Credit agreements, notes, warrants, short-term promissory notes, commercial paper or other obligations in anticipation of taxes, grants or other revenues issued by the Oregon State Treasurer and authorized by ORS 286A.045 to 286A.050.

(3) General obligation bonds issued by the State Treasurer for the Oregon Opportunity Program under ORS 353.550 to 353.563 and chapter 921 of Oregon Laws 2001.

(4) Oregon Appropriation Bonds authorized under 2003 Oregon Laws Chapter 11 or subsequent legislation, issued by the State Treasurer with the concurrence of the Director of the Department of Administrative Services.

(5) General obligation bonds for water power, pension liabilities, and seismic rehabilitation projects authorized by ORS 286A.710 to 286A.792.

Stat. Auth.: ORS 184.340.
Stats. Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921, 2003 OL ch. 11
Hist.: BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

122-075-0110

Definitions

Unless the context indicates otherwise, capitalized terms used in this Chapter 122, Division 75 of the Oregon Administrative Rules shall have the following meanings:

(1) Benefiting Agency refers to a State Agency or Division of the Department of Administrative Services whose borrowing program is administered by the Department of Administrative Services.

(2) Bonds mean any contractual undertaking or instrument of the State of Oregon to repay borrowed moneys that are administered for another State Agency by the Department of Administrative Services or for which the Department of Administrative Services provides administrative assistance, including but not limited to the borrowings described in OAR 122-075-0100. A Bond does not include financing agreements entered into under ORS 283.085 to 283.092 and division 70 of this chapter.

(3) Department means the Department of Administrative Services, Budget and Management Division.

(4) Director means the Director of the Department of Administrative Services.

(5) Finance Manager means the Capital Finance Manager of the Capital Investment Section of the Department of Administrative Services, Budget and Management Division.

(6) State Agency or Agency means any statewide elected officer, board, commission, department, division, authority or other entity that is within state government as defined in ORS 174.111.

(7) Tax-advantaged refers to a benefit provided by a governmental authority to the issuer or a holder of a bond or other evidence of indebtedness in the form of exemption from taxation, a tax-deferral or a tax credit to the holder of the indebtedness, an interest rate subsidy payment to the issuer, or any other type of financial benefit. Qualification for such treatment generally requires ongoing compliance with various laws and regulations by the issuer.

Stat. Auth.: ORS 184.340.
Stats. Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921, 2003 OL ch. 11
Hist.: BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

122-075-0120

Budgeting for Department of Administrative Services Administered Bonds

(1) Any Benefiting Agency intending to issue Bonds in the upcoming biennium must notify the Finance Manager as a part of the State Agency budget preparation process in accordance with the Department’s Budget & Legislative Concepts Instructions.

(2) The Department will:

(a) Assist any Benefiting Agency in developing debt service budgets for its outstanding Bonds;

(b) As applicable, bill and collect from all Benefiting Agencies their respective portion of debt service relative to each agency’s outstanding Bonds;

(c) Send moneys that are collected from Benefiting Agencies to the trustee or the appropriate paying agent for all payments due under the Bonds related to such Benefiting Agency;

(d) At the direction of the State Treasurer, manage the investments of Bond sale proceeds or debt service funds, if any, that are held by a trustee. The interest earnings from any investment of moneys by a trustee may be credited to the appropriate Benefiting Agency, or against the next installment of principal and interest due on outstanding Bonds of the Benefiting Agency at the next payment date, at the discretion of the Department. When allocating such interest earnings, the department may take any actions necessary to achieve cost-effective administration, provided such actions do not have a materially adverse impact any Bonds or the funds or accounts used to pay them; and

(e) After any Bonds are completely paid and no longer outstanding, provide to the appropriate Benefiting Agency any remaining moneys, together with interest earnings to be recorded under generally accepted accounting principles.

Stat. Auth.: ORS 184.340.
Stats. Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921, 2003 OL ch. 11
Hist.: BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

122-075-0150

Management of Bond Proceeds

(1) All Bond sale proceeds intended for program purposes will be held in the appropriate funds or accounts designated by ORS chapter 286A at the Oregon State Treasury, or as may be otherwise designated by a trust indenture or other law. The Benefiting Agency and the Department shall exchange information to ensure that Bond sale proceeds are spent only for lawfully authorized purposes and, if derived from Tax-advantaged Bonds, are used in compliance with any provision of the Internal Revenue Code and applicable regulations. The Benefiting Agency shall consult with the Department and follow its directives with respect to appropriate accounting and record keeping for such expenditures.

(2) Any reserve account equal to the maximum allowable reserve authorized in the Internal Revenue Code at the time the Bonds are issued shall be held by an independent trustee or in the appropriate fund or account designated by ORS chapter 286A or other statutes in the Oregon State Treasury. Interest earnings on the reserve shall be used to pay debt service on the related Bonds after the payment of any arbitrage earnings payable under Internal Revenue Code, when due.

Stat. Auth.: ORS 184.340.
Stats. Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921, 2003 OL ch. 11
Hist.: BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

122-075-0160

Charges for Bond Administration

(1) Administrative Costs:

(a) All costs incurred by the Department and the State Treasurer to administer outstanding Bonds will be charged to the appropriate Benefiting Agency.

(b) Actual charges for fiscal agent services and trustee services for any Bonds will be passed through to the Benefiting Agency.

(c) All other costs incurred by the Department, including bond counsel or other legal fees, to administer outstanding Bonds will be charged to the appropriate Benefiting Agency.

(d) The Capital Investment Section shall charge fees in connection with the services, duties and activities related to issuance and approval of Bonds to the appropriate Benefiting Agency on behalf of the Department.

(2) Tax anticipation notes will be charged a fee of $45,000 to the appropriate Benefiting Agency.

(3) Sale of Bonds:

(a) For a single series sale with a single project, Benefiting Agency will be charged $26,000.

(b) For a single series sale with more than one project, Benefiting Agency will be charged $35,000, plus $2,500 for each project beyond three to a maximum amount of $50,000. The charge will be prorated among the projects financed based upon the principal amount allocated to each project.

(c) For a multiple series sale with a single project, Benefiting Agency will be charged $26,000 for the initial series and a fee of $20,000 per additional series issued.

(d) For a multiple series sale with more than one project, Benefiting Agency will be charged $35,000 plus $2,500 for each project beyond three to a maximum amount of $50,000 for each series. Furthermore, the Benefiting Agency will be charged a fee of $20,000 per additional series issued. The charges will be prorated among the projects financed based upon the principal amount allocated to each project.

(4) Refunding Sales of Bonds:

(a) A fee of $25,000 will be charged for advance refundings of outstanding series per series refunded.

(b) A current refunding will be charged as an additional project under a Sale of Bonds in section (3) above.

(5) Defeasance of Bonds: For the economic or legal defeasance of outstanding Bonds, the Department will charge a fee of $10,000.

(6) Arbitrage Calculations:

(a) The Benefiting Agency will be charged for the calculation of arbitrage liability for annual statewide financial reporting and for each five year required reporting period.

(b) Each series with a single Benefiting Agency that has unspent proceeds or a Bond funded reserve will be charged $1,000 annually when the Capital Investment Section performs and provides the calculation to the Benefiting Agency of the estimated arbitrage liability.

(c) Each series with multiple Benefiting Agencies that has unspent proceeds or a Bond funded reserve will be charged $500 annually per Benefiting Agency when the Capital Investment Section performs and provides the calculation to the Benefiting Agency of the estimated arbitrage liability.

(d) The Benefiting Agency will reimburse the Department for the actual costs of the services performed when the calculation and documentation is performed by a private contractor under a professional services contract with the Capital Investment Section.

(e) The Benefiting Agency will reimburse the Department for the direct cost of any work performed by bond counsel, Department of Justice counsel, or other contractors hired by the Capital Investment Section to provide assistance related to Internal Revenue Code compliance requirements.

Stat. Auth.: ORS 184.340.
Stats. Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921, 2003 OL ch. 11
Hist.: BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

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