Oregon Code § 350.680·Enacted ·Last updated March 01, 2026
Statute Text
Revenue bonds; issuance; trust funds; pledge; terms; legal effect.
(1) Revenue bonds shall be payable
solely from that portion of education facility revenues which the municipality
pledges therefor in the resolution authorizing issuance of revenue bonds.
(2) A
municipality may authorize the issuance of revenue bonds by resolution or
nonemergency ordinance under the procedure described in ORS 287A.150.
(3) The
resolution may provide for the establishment of one or more special funds and
may place such funds under the control of one or more trustees. The resolution
may obligate the municipality to deposit and expend the proceeds of the revenue
bonds only into and from such fund or funds, and to set aside and pay into such
fund or funds specified education facility revenues.
(4) Any pledge of
education facility revenues made by a municipality shall be valid and binding,
without physical delivery or additional action, from the time that the pledge
is made against any parties having subsequent claims of any kind in tort, contract
or otherwise against a municipality or an educational institution, irrespective
of whether such parties have actual notice thereof. The pledge shall be noted
in the resolution authorizing issuance of revenue bonds, which shall be
constructive notice thereof to all parties and the resolution need not be
recorded, nor shall the filing of any financing statement under the Uniform
Commercial Code be required to perfect such pledge.
(5) The
municipality may establish the terms under which its revenue bonds shall be
issued and sold.
(6) All revenue
bonds issued pursuant to ORS 350.665 to 350.695 shall be legal securities which
may be used by any insured institution or trust company, as those terms are
defined in ORS 706.008, for deposit with the State Treasurer or a county
treasurer or city treasurer as security for deposits in lieu of a surety bond
under any law relating to deposits of public moneys. The revenue bond shall
constitute legal investments for public bodies, trustees and other fiduciaries,
banks, savings and loan associations and insurance companies. All revenue bonds
shall constitute negotiable instruments within the meaning of and for all
purposes of the law of this state. [Formerly 352.805]