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OREGON STATE TREASURY

 

DIVISION 61

ISSUANCE OF BONDS

170-061-0000

Notice and Reporting Requirements by Public Bodies When Issuing Bonds

(1) Terms used in OAR 170-061 shall have the meanings given in ORS Chapters 286A and 287A unless otherwise specifically defined herein.

(2) Definitions.

(a) “MDAC” means the Oregon Municipal Debt Advisory Commission.

(b) “OST” means the Office of the State Treasurer.

(c) "Bond marketing date" is the date the public body and underwriter or placement agent agree on the market terms of the bonds. For competitive bid bonds this is the date bids are opened and the bonds are awarded to public bidders pursuant to a published notice of bond sale. For negotiated sales or private placements this means the date the public body gives the verbal award to the underwriter or placement agent.

(d) "Called bonds" are bonds for which the public body has exercised the option or requirement to redeem before the stated maturity date. The call date is the date the bond may be redeemed.

(e) "Closing" means the date the bonds are delivered to the initial bond purchaser and the public body receives payment for the bonds.

(f) "Delivery date" means the date shown by the United States Postal Service or other delivery services' cancellation mark or, if provided electronically, the delivery date is the date shown as electronically received by the OST.

(g) “Governing body” means the person, board, commission, council, officer or other body authorized to direct the issuance of bonds.

(h) “Issuer” means a public body or the State Treasurer.

(i) "Official statement" means the document published by a state agency or public body that discloses material information on the issue of bonds including the purposes of the issue, repayment methods, and the financial, economic and social characteristics of the issuing government. A final official statement is printed after the final terms of the bonds are available.

(j) “Paying officer” means the public officer, other than a fiscal or paying agent, to who bonds may be presented for payment.

(k) “State agency” means a related agency defined in ORS 286A.001(8).

(l) "True Interest Cost" (TIC) means the annual discount rate that, when used to discount all debt service payments on the issue to the date of initial delivery of the issue, using a compounding interval equal to the interest payment periods for the issue, results in the aggregate present value of such debt service payments being equal to the original purchase price (including accrued interest) of the issue.

(3) Notice of bond sales. Public bodies shall provide notice of bond sales to MDAC by submitting MDAC Form 1 as set forth in OAR 170-055-0001(4). Notice must include preliminary bond sale information such as: the issuing entity, type of bond, anticipated bond marketing date, bond par amount, project or purpose of the bond issue, source of revenues used to repay the bonds, anticipated closing date, bond counsel, financial advisor and other summary information identified on MDAC Form 1.

(4) Timing. The public body shall provide notice of the bond sale not less than 10 days preceding the bond marketing date.

(5) Confirmation of notice. After receipt of notice the MDAC shall provide a letter verifying such. The letter includes a statement that the notice complies with OAR 170-061-0000 and is conclusive evidence of such compliance. Compliance letters are sent to bond counsel. Noncompliance letters state the reason for non-compliance and are sent to the public body and its bond counsel.

(6) Postponement. For postponed or changed bond sales the public body complies with notice requirements when, on a best efforts basis, it submits an updated MDAC Form 1 to the MDAC as set forth in OAR 170-055-0001(4).

(7) Reporting results. Any public body issuing bonds shall report bond sale results by submitting MDAC Form 2, and a public body preparing an official statement shall provide a final copy of such official statement, to the MDAC within seven business days after the bond marketing date. Sale results must include all of the information identified on MDAC Form 2. The public body and its bond counsel will receive written notice of non-compliance if sale results are not reported.

(8) Exceptions. The MDAC, at its discretion, may waive any or all provisions of this rule.

Stat. Auth.: ORS 287A.634 & 287A.640
Stats. Implemented: ORS 287A.634 & ORS 287A.640
Hist.: TD 2-1981(Temp), f. & ef. 12-23-81; TD 1-1982(Temp), f. & ef. 1-11-82; TD 2-1982(Temp), f. & ef. 1-27-82; TD 4-1982, f. & ef. 7-7-82; TD 1-1985, f. & ef. 1-24-85; TD 2-1994, f. & cert. ef. 9-9-94; TD 1-1995, f. 6-29-95, cert. ef. 7-3-95; TD 2-1995, f. & cert. ef. 12-26-95; OST 7-2008, f. & cert. ef. 12-29-08; OST 3-2010, f. & cert. ef. 2-2-10

Fees Charged by the Debt Management Division

170-061-0015

Fees Charged by the Debt Management Divisions

(1) State agencies. The OST shall charge the following fees in connection with the services, duties and activities of the OST related to bonds issued for state agencies by the State Treasurer:

(a) Agency Bond Issues of $15 million or less. For a single series bond sale of $15 million or less, a state agency will be charged $15,000 per sale. For a bond sale of $15 million or less by a single state agency with multiple series, the state agency will be charged the greater of (i) $15,000 or (ii) $6,000 per series. For a bond sale of $15 million or less by two or more state agencies, each agency will be charged the greater of (i) $7,500 or (ii) $6,000 for each series sold for the agency. This subsection applies to initial offerings, refundings and restructurings. This subsection does not apply if the bond sale is a private placement conduit as described below in subsection (c).

(b) Agency Bond Issues of more than $15 million. For a single series bond sale of more than $15 million, a state agency will be charged $20,000. For a bond sale of more than $15 million by a single state agency with multiple series, the state agency will be charged the greater of (i) $20,000 or (ii) $7,000 per series. For a bond sale of more than $15 million by two or more state agencies, each agency will be charged the greater of (i) $10,000 or (ii) $7,000 for each series sold for the state agency. This subsection applies to initial offerings, refundings and restructurings. This subsection does not apply if the bond sale is a private placement conduit sale described below in subsection (c).

(c) Privately Placed Conduit Bonds are bonds that are payable solely from moneys owed by a party other than the State of Oregon, with no recourse for payment to the State of Oregon, do not have a publicly disseminated official statement or other offering circular, and are sold only to one or more sophisticated investors, accredited investors or qualified institutional buyers. A state agency that privately places conduit bonds will be charged:

(A) $5,000 for sales that in aggregate total $5 million or less;

(B) $10,000 for sales that in aggregate total more than $5 million but less than $10 million; or

(C) $15,000 for sales that in aggregate total $10 million or more. Should conduit bonds be sold publicly or use a publicly disseminated official statement then subsection (a) or subsection (b) above applies. This subsection applies to initial offerings, refundings and restructurings.

(d) Tax Anticipation Notes. A state agency shall be charged $30,000 for each sale of tax anticipation notes.

(e) Interest Rate Exchange Agreements. In addition to any other fee, $25,000 will be charged for the review and approval of a state agency’s first executed interest rate exchange agreement for a specific bond program of the agency. After the first agreement, a fee of $10,000 will be charged for each executed interest rate exchange agreement subsequently entered into by the agency for the same bond program or indenture. These charges do not include costs such as interest rate exchange advisor fees, rating agency charges or printing costs which are payable by the agency or authority for whom the cost is incurred.

(f) Replacement of Liquidity Providers or SWAP Counter Party Providers. A state agency will be charged $10,000 for activities related to each replacement of a liquidity provider or SWAP counter party provider. These charges do not include costs such as rating agency charges or printing costs which are payable by the agency or authority for whom the cost is incurred.

(2) Public Bodies. OST shall charge the fees set forth below in connection with the services, duties and activities of the OST related to bonds issued by public bodies in Oregon; expenses incurred in reviewing refunding and defeasance plans may be charged against the bond proceeds or may be paid by the public body from such other funds as may be available:

(a) Advance refunding plan application and review. The application fee for submission of an advance-refunding plan is $350. The fee for review and approval of an advance refunding plan is $3,000 per sale of refunding bonds for sales of $2 million or less, and $5,000 per sale of refunding bonds for sales exceeding $2 million. If the plan is not approved or the refunding not completed the review and approval fee will not be charged.

(b) Oregon School Bond Guarantee Program. School Districts that submit an application for participation in the Oregon School Bond Guarantee Program shall submit an application fee of $200 to OST at the time their application is submitted. School Districts whose bonds are guaranteed by the state shall submit to OST, within 10 business days of closing of any guaranteed bonds, a fee equal to .03% (.0003) of the total principal and interest due, assuming the bonds are paid on their regularly scheduled maturity or redemption dates. If bonds are issued as "Qualified Bonds" under OAR 170-063-000 that may be converted to an interest bearing format over and above interest payments that may be due and payable under the original terms of bonds, the fee for such Qualified Bonds shall be equal to .045% (.00045) of the total principal and interest due, assuming the bonds are paid on their regularly scheduled maturity or redemption dates and that there is no conversion to a different interest bearing format than the original terms of the bonds.

(3) Municipal Debt Advisory Commission. OST shall charge the following fees in connection with the services, duties and activities of the OST as staff to the Municipal Debt Advisory Commission.

(a) Administrative Tracking and Reporting fee. Local Government entities shall submit, at the time of closing, a fee equal to:

(A) $800 for bond sales of greater than or equal to $1 million, but less than $8 million,

(B) 0.01% (0.0001) of the principal amount for bond sales of greater than $8 million but, less than $50 million, or

(C) $5,000 for bond sales of $50 million or greater. No fee is charged for a bond sale of less than $1 million.

(b) Overlapping Debt Report fee. Overlapping Debt Reports requested for any date within one year of the request are provided free of charge. For Overlapping Debt Reports requested for any date greater than one year prior to the request date, subsection (c) applies.

(c) Other fees and charges. Fees for specialized reports and services shall be determined by the number of hours spent producing such specialized report or service times the rate of $115 per hour.

(4) Private Activity Bonds.

(a) Current Year Allocation. State agencies or public bodies that submit an application for allocation of the state’s private activity bond volume limit (“CAP”) for the current year to the Private Activity Bond Committee under OAR 170-071-0005 shall submit an application fee of $200 to OST when their application is submitted. State agencies or public bodies who receive CAP shall pay to OST:

(A) For a bond sale of $10 million or less, a fee equal to $3,000, payable within 10 business days of the closing bond sale,

(B) For a bond sale of more than $10 million, a fee equal to $10,000 payable within 10 business days of the closing bond sale, or

(C) for a Mortgage Credit Certificate program, a fee equal to $2,000, payable within 10 business days of the date of the notice of allocation by OST.

(b) Carry Forward Allocation. State agencies or public bodies that submit an application for carry forward CAP allocation under OAR 170-071-0005(10) shall submit an application fee of $200 to OST when their application is submitted. State agencies or public bodies who receive carry forward CAP shall pay to OST:

(A) For a bond sale of $10 million or less, a fee equal to $3,000 of which the first $500 is payable within 10 days of the date of the notice of allocation by OST, with the balance payable within 30 days of the closing of the first bond sale associated with the allocation,

(B) For a bond sale of more than $10 million, a fee equal to $10,000 of which the first $2,000 is payable within 10 days of the date of the notice of allocation by OST, with the balance payable within 30 days of the closing of the first bond sale associated with the allocation, or

(C) for a Mortgage Credit Certificate program, a fee equal to $2,000, payable within 10 business days of the date of the notice of allocation by OST.

(D) For a standard agricultural bond issued through the Oregon Business Development Department’s Beginning and Expanding Farmer Loan Program and sold to a commercial bank, a fee equal to $200 is payable within 10 business days of the closing of the bond sale. For agricultural bonds that will be sold to one or more private investors, OST may, at its discretion, charge up to a maximum of $2,000 depending on the complexity of the transaction.

(5) OST may, at its discretion, waive or reduce any fee outlined in sections (1) to (4) based on compelling financial reasons.

Stat. Auth.: ORS 286A.014, 287A.370 & 287A.634
Stats. Implemented: ORS 287A & 286A
Hist.: TD 3-1990, f. & cert. ef. 12-21-90; TD 2-1994, f. & cert. ef. 9-9-94; OST 1-1999, f. & cert. ef. 2-1-99; OST 1-2005, f. & cert. ef. 4-22-05; OST 5-2006, f. & cert. ef. 10-25-06; OST 7-2008, f. & cert. ef. 12-29-08; OST 2-2009, f. & cert. ef. 4-22-09; OST 3-2009, f. & cert. ef. 7-21-09; OST 5-2009(Temp), f. & cert. ef. 10-30-09 thru 4-27-10; OST 1-2010 f. & cert. ef. 1-15-10; OST 2-2010(Temp), f. & cert. ef 1-26-10 thru 7-24-10; OST 4-2010(Temp), f. 6-3-10, cert. ef. 7-1-10 thru 12-27-10; Administrative correction 1-25-11; OST 1-2011, f. & cert. ef. 2-28-11; OST 1-2012(Temp), f. & cert. ef. 1-26-12 thru 7-1-12; Administrative correction 8-1-12; OST 3-2012(Temp), f. & cert. ef. 12-14-12 thru 5-29-13; OST 2-2013, f. & cert. ef. 4-24-13; OST 3-2014(Temp), f. 8-13-14, cert. ef. 8-15-14 thru 2-11-15

170-061-0020

Requirements for Notice of Call

(1) Notice of Bond Call. Any public body redeeming bonds prior to their stated maturity shall notify the MDAC of its intention to call bonds no later than the date the first bond is called. The notice to the MDAC shall include as a minimum the:

(a) Name or title of issue;

(b) The public body who sold the bonds;

(c) Issue date;

(d) Original issue amount;

(e) Purpose of issue;

(f) Maturity dates, call dates and principal amounts of the bonds called;

(g) Amount outstanding upon completion of the call;

(h) Coupon interest rate;

(i) Call premium, if any; and

(j) Remaining principal amortization schedule.

(2) Address. The notice required by this rule shall be provided in the manner set forth in OAR 170-055-0001(4).

(3) Exceptions. The OST, at its discretion, may waive any or all provisions of this rule. OST will notify the MDAC of waivers.

Stat. Auth.: ORS 287A.634
Stats. Implemented: ORS 287A.634
Hist.: TD 1-1991, f. & cert. ef. 10-30-91; TD 2-1994, f. & cert. ef. 9-9-94; TD 2-1995, f. & cert. ef. 12-26-95; OST 7-2008, f. & cert. ef. 12-29-08

170-061-0100

Procedures for the Issuance of State of Oregon Economic Development Revenue Bonds Issued under ORS 285B.320 to 285B.371 (EDRB)

(1) Terms and Conditions of Sale. The sale of State of Oregon EDRBs is permitted under the following terms:

(a) Public Offerings. A public offering of EDRBs must meet the requirements of both paragraphs (A) and (B) of this subsection:

(A) An applicant for publicly offered bond financing must receive specific approval from OST. The proposed bond issuance must receive an investment grade rating from a nationally recognized rating agency (Moody's Investors Service, Fitch Ratings or Standard and Poor's Corporation) or receive an equivalent rating through the use of credit enhancement. The investment grade rating requirement may be waived by OST for applicants who are listed on the New York Stock Exchange (NYSE) or the National Association of Securities Dealers Exchange (NASDAQ).

(B) An official statement or disclosure document must be prepared and available for bond purchasers. The cover page must illustrate the rating.

(b) Limited Public Offerings.

(A) An applicant for a limited publicly offered bond financing must receive specific approval from OST and demonstrate compliance with the publicly offered requirements of Section 1(a)(A) above or the proposed offering shall be made only to an "Accredited Investor" (AI) as defined under Section 3(a)(2) of the Securities Act of 1933 or a "Qualified Institutional Buyer" (QIB) as defined under Rule 144A of the Securities Act of 1933 or a "Sophisticated Investor" (SI) as the term is defined in Rule 501 Regulation D under the Securities Act and further described in 17 CFR 230.506(b)(2)(ii) as one who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment. The AI, QIB or SI must agree in writing that the securities are being acquired for investment and are intended to be held for its own account and not with a view to, or for resale in connection with, and distribution or transfer of the bonds, except to another AI, QIB or SI who must enter into a similar written agreement;

(B) An official statement or disclosure document must be made available for bond purchasers. The cover page must illustrate the rating or contain a statement similar to the following: "These securities are to be sold only to "Accredited Investors" as defined under sec. 3(a)(2) of the Securities Act of 1933, or a "Qualified Institutional Buyer" as defined under Rule 144A of the Securities Act of 1933, or a "Sophisticated Investor" as the term is defined in Rule 501 Regulation D under the Securities Act and further described in 17 CFR 230.506(b)(2)(ii) as one who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment".

(c) Private Placements. An applicant for a privately placed bond financing must receive specific approval from OST. The proposed offering must be made only to an AI, QIB or SI. The AI, QIB or SI must agree in writing that the securities are being acquired for investment and are intended to be held for its own account and not with a view to, or for resale in connection with, and distribution or transfer of the bonds, except to another AI, QIB or SI who must enter into a similar written agreement;

(2) Applications Submitted to the OST.

(a) Applications and any additional information or requested supporting materials must be submitted to OST at a minimum, seven business days prior to the Oregon Economic and Community Development Commission's (“Commission”) meeting at which a proposal is expected to be considered for financing eligibility;

(b) OST will endeavor to give either preliminary approval or disapproval at not later than seven business days after the Commission meeting that approves financing eligibility. Preliminary approval will be based on the nature of the direct economic benefit expected to be produced by the project and in compliance with Oregon Revised Statutes and this rule;

(c) OST's review for final approval, as represented by the Certificate of Determination, encompasses:

(A) The bond market for the types of bonds proposed for issuance;

(B) The terms and conditions of the proposed issue; and

(C) Such other relevant factors as OST considers necessary to protect the financial integrity of the State.

(D) Evidence of the project's final approval by the Commission.

(d) Notice of final approval or disapproval will be provided within ten business days of the meeting at which the Commission grants final approval.

(3) Appointment of Bond Counsel for EDRB Issues. The State must be represented by its own bond counsel appointed under ORS 285B.344 and 286A.130 for all EDRB issues. The applicant will be responsible for all fees and expenses of bond counsel and must retain other counsel, if representation is desired, to represent the applicant in connection with the EDRB issuance. If an applicant wishes to use a particular firm as bond counsel that, at the time, is not under contract with the Oregon Economic and Community Development Department or OST, it may request that the department or OST contract with such firm. The bond counsel engaged by OST or the department must meet the following requirements;

(a) The law firm must be listed in the most current issue of the Bond Buyer's Directory of Municipal Bond Attorneys (the "Red Book");

(b) The law firm must have an established residence within the state of Oregon.

(c) The law firm must agree and represent to OST and the department that:

(A) It understands it has been engaged as counsel to the State of Oregon, who is its client,

(B) That the firm will represent solely the interests of the State of Oregon in connection with the EDRB issuance and

(C) And that the firm has all licenses, permits or authorizations necessary to perform such work for the State of Oregon;

(d) OST is satisfied that the individual(s) performing the work, from the standpoint of experience, work and previous opinions issued, can responsibly represent the interests of the State of Oregon.

(e) The firm has particular knowledge or experience with respect to the applicant, the business activities of the applicant or the purpose for which moneys derived from the sale of the EDRBs will be used.

(4) MDAC Form. The Oregon Economic and Community Development Department shall submit to OST a completed MDAC Form 2 within five days of the closing of the transaction.

(5) Exceptions. OST, upon showing sufficient cause, may waive any or all of the provisions of this rule.

Stat. Auth.: ORS 285B.344, 286A.005, 286A.130
Stats. Implemented: ORS 285B. 320 - 285B.371
Hist.: TD 1-1988(Temp), f. 2-17-88, cert. ef. 2-18-88; TD 2-1988, f. & cert. ef. 4-8-88; OST 3-2006, f. & cert. ef. 8-4-06; OST 7-2008, f. & cert. ef. 12-29-08

170-061-0200

Election to Issue Bonds Under Laws Prior to 2008 (“Prior Laws”)

(1) Election For State Agencies. A state agency may request that the State Treasurer elect to issue bonds on behalf of the agency under the Prior Laws, without regard to Chapter 783 Oregon Laws 2007, by submitting a written request for the election to OST on or before the date that is forty-five (45) days before the scheduled sale date for the bonds. The ability to elect Prior Laws for bond issuance provided for in this administrative rule expires January 2, 2010.

(2) Demonstrate Need. The request shall demonstrate the need for the election by describing why the agency's bonds cannot or should not be issued under the provisions of Chapter 783, including a description of the problem, if any, in Chapter 783 that led to the agency's request. The State Treasurer may elect to issue bonds under the Prior Laws if the state agency demonstrates that:

(a) An approving opinion of bond counsel cannot be provided under Chapter 783 but may be provided under the Prior Laws;

(b) The agency's bonds may be issued at a substantially lower cost under the Prior Laws than under Chapter 783;

(c) A credit enhancement or other financing mechanism that would substantially improve the overall financing structure of the bond sale may be used under the Prior Laws but not under Chapter 783; or

(d) Any other reason that would result in the agency's bonds being issued at a substantially lower cost or under a structure or terms that are substantially better for the agency or the State of Oregon if the bonds are issued under the Prior Laws rather than Chapter 783. An agency shall promptly provide such additional information or documentation as OST may request to assist OST in making a determination as to whether an election should be made. OST will determine whether to make the election on or before thirty (30) days after receipt of the request for an election from a state agency. If OST fails to make a determination within that time, the agency's request will be deemed to be denied.

(3) Public Body Election. A public body may elect in writing to issue bonds under the Prior Laws, without regard to Chapter 783 Oregon Laws 2007, on or before the date that is fifteen (15) days before the scheduled sale date for the bonds. The ability to elect Prior Laws for bond issuance provided for in this administrative rule expires January 2, 2010. The public body shall promptly provide the OST with a copy of the written election. The written election shall include a description of the problem, if any, in Chapter 783 that led to the public body's request and demonstrate the need for the election because the public body finds that one or more of the following circumstances exists:

(a) An approving opinion of bond counsel cannot be provided under Chapter 783 but may be provided under the Prior Laws;

(b) The public body's bonds may be issued at a substantially lower cost under the Prior Laws than under Chapter 783;

(c) A credit enhancement or other financing mechanism that would substantially improve the overall financing structure of the bond sale may be used under the Prior Laws but not under Chapter 783; or

(d) Another reason or circumstance exists that would result in the public body's bonds being issued at a substantially lower cost, or under a structure or terms that are substantially better for the public body, if the bonds are issued under the Prior Laws rather than Chapter 783. When determining whether to make the election authorized under this rule, the public body shall confer with the OST. A public body shall promptly provide such additional information or documentation as the State Treasurer may request with respect to an election made under this rule.

Stat. Auth.: Ch. 783 OL 2007 (HB 3265)
Stats. Implemented:
Hist.: OST 3-2007, f. & cert. ef. 12-27-07; OST 7-2008, f. & cert. ef. 12-29-08

170-061-0300

Selection of Underwriters and Advisors by the State Treasurer

(1) Underwriters. OST may select underwriters for the State’s bond programs either through a direct appointment and negotiated process with a single firm or with multiple firms or through the issuance of requests for proposals for a single firm or multiple firms. OST may determine to select one or more underwriters for each bond finance program operated by a state agency. Generally, underwriting firms will be selected to participate in a syndicate of underwriters for a bond finance program for a period not to exceed three years, unless at the discretion of OST circumstances exist to extend such period. If OST issues requests for proposals, such proposals shall be published on the website of the OST and sent to all firms on the Treasurer’s Underwriter Bidders List. Any firm interested in receiving requests for proposals for underwriters must provide their name, address, e-mail, telephone number and names of contact individuals to the OST with a request to be added to the Underwriter Bidders List.

(2) Financial and other Advisors or Service Providers. OST may select financial advisors, bond counsel and other providers of services in connection with the State’s bond programs either through a direct appointment and negotiated process with a single firm or with multiple firms or through the issuance of requests for proposals for a single firm or multiple firms. OST may determine to select one or more service providers for each bond finance program operated by a state agency.

Stat. Auth.: ORS 286A.005
Stats. Implemented: ORS 286A.025, 286A.130, 286A.132.
Hist.: OST 7-2008, f. & cert. ef. 12-29-08

170-061-0400

Lost, Stolen or Destroyed Bonds or Interest Coupons

(1) Payment Under Bondholder Agreement. A paying officer shall pay any lost, mutilated or stolen bond or interest coupon as provided in the indenture or other agreement with bond owners executed when the bond was issued. If not provided for in the original indenture or agreements, the procedures outlined in this rule shall apply.

(2) Payment of Matured Bond. A paying officer shall pay the principal of and interest on any bond at or after maturity if the asserted owner of the instrument:

(a) Submits an affidavit that describes the following items in sufficient detail for the paying officer to determine the accuracy and veracity of the statements in the affidavit and that the bond has not already been paid:

(A) The bond;

(B) The circumstances surrounding the acquisition of the bond(s); and

(C) The circumstances surrounding the bond’s loss, mutilation or destruction;

(b) Surrenders the bond, if it is mutilated and in the possession of the asserted owner; and

(c) The asserted owner furnishes an indemnity instrument executed by a surety company licensed to do business in the state for the face amount of the bond plus interest due thereon.

(3) Affidavit. If the asserted owner does not have personal knowledge of the information that must be contained in the affidavit required under subsection (2)(a) of this section, the person having the personal knowledge may make the affidavit.

(4) Indemnity. If the face amount of a bond plus interest due thereon is $1,000 or more, a surety company licensed to do business in the state of Oregon must execute the indemnity bond required under subsection (2) of this section.

(5) Issuance of Duplicate prior to Maturity. If a bond has not yet matured, the governing body shall execute and deliver a duplicate to the asserted owner of such bond when such asserted owner:

(a) Submits an affidavit that describes the following items in sufficient detail for the paying officer to determine the accuracy and veracity of the statements in the affidavit and that the bond has not already been paid:

(A) The bond;

(B) The circumstances surrounding the acquisition of the bond(s); and

(C) The circumstances surrounding the bond’s loss, mutilation or destruction;

(b) Surrenders the Bond, if it is mutilated and in the possession of the asserted owner; and

(c) The asserted owner furnishes an indemnity instrument executed by a surety company licensed to do business in the state of Oregon for the face amount of the bond plus interest due and to become due on the bond; and

(d) Deposits with the issuer a sum sufficient to pay the expenses of issuing a duplicate bond.

(6) Affidavit. If the asserted owner does not have personal knowledge of the information that must be contained in the affidavit required under this rule, the person having such personal knowledge may make the affidavit.

(7) Waiver. If the asserted owner of a lost, mutilated or destroyed bond that was registered provides an affidavit, certification or other reliable proof that the paying officer or governing body reasonably finds protects the issuer from conflicting claims for payment under the registered bond, the paying officer may waiver the requirements of this section with respect to that registered bond.

(8) Form of Duplicate. If the paying officer issues a duplicate bond, it shall be in the same form and amount and bear the same serial or CUSIP number, date of issue and date of maturity as the original bond. If the bond has interest coupons attached, only interest coupons that have not matured under the terms of the original bond as of the date the duplicate is issued shall be attached to the duplicate. The officer shall indorse the word “DUPLICATE” and the date its issuance upon the face of any duplicate bond and upon the face of any attached interest coupon. The paying officer shall sign the duplicate on behalf of the issuer.

(9) Waiver of Indemnity Instrument. The paying officer may waive the requirement of an indemnity instrument imposed by this rule if the asserted owner of the bond furnishes an undertaking for the face amount of the bond plus all interest due and to become due on the bond to protect the issuer from loss or liability resulting from any demand or payment of the principal of or interest on such bond and:

(a) The asserted owner surrenders a mutilated bond that is so complete that any missing portion thereof could not form the basis of a valid claim against the issuer: or

(b) The asserted owner of the bond is the State of Oregon in its individual or fiduciary capacity or a public body that is not in default on the payment of any of its outstanding obligations.

Stat. Auth.: ORS 286A.005
Stats. Implemented: ORS 286A.005
Hist.: OST 7-2008, f. & cert. ef. 12-29-08

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