Statute Text
Effect
of law on bonds, certificates of participation or agreements for borrowing
money; responsibility for payment; rights of holders of obligations.
(1) Nothing in chapter 162, Oregon
Laws 1995, shall be construed in any way to impair the obligations or
agreements of the State of Oregon or the Oregon Department of Administrative
Services with respect to bonds, certificates of participation, financing
agreements or other agreements for the borrowing of money issued prior to July
1, 1995, by the State of Oregon on behalf of the State Board of Higher
Education for equipment or projects for Oregon Health and Science University.
The university and the department shall take all actions necessary to ensure
full compliance with all indentures, resolutions, declarations, agreements and
other documents issued with respect to the bonds, certificates of
participation, financing agreements or other agreements for the borrowing of
money issued prior to July 1, 1995, by the State of Oregon on behalf of the
State Board of Higher Education for equipment or projects for the university.
The department and the university shall establish, in a written agreement that
is approved by the State Treasurer, the responsibility of the university for
the payment to the department of moneys sufficient to pay when due all
principal, interest and any other charges on bonds, certificates of
participation, financing agreements or other agreements for the borrowing of
money issued prior to July 1, 1995, by the State of Oregon on behalf of the
State Board of Higher Education for equipment or projects for the university.
(2) Holders of
obligations issued by the university on or after July 1, 1995, may be paid pari
passu with the obligations issued by the State of Oregon on behalf of the State
Board of Higher Education for equipment or projects for the university prior to
July 1, 1995, from the rents, revenues, receipts, appropriations or other
income of the university, but only to the extent that:
(a) Such holders
have no rights, liens or other interests with respect to such rents, revenues,
receipts, appropriations or other income of the university that are senior or
superior to the rights granted to the holders of obligations issued prior to
July 1, 1995, by the State of Oregon on behalf of the State Board of Higher
Education for equipment or projects for the university; and
(b) The
department or the State of Oregon, acting for the benefit of such holders of
obligations, is granted a lien or other security interest in the rents,
revenues, receipts, appropriations or other income of the university that is
not junior to and is at least pari passu with any lien or other security
interest granted to the holders of obligations issued by the university.
(3) Any expenses,
including legal expenses, judgments, liabilities and federal arbitrage and
rebate penalties arising from the actions of the university, if incurred with
respect to bonds, certificates of participation, financing agreements or other
agreements for the borrowing of money issued prior to July 1, 1995, by the
State of Oregon on behalf of the State Board of Higher Education for equipment
or projects for the university, shall be paid when due by the university,
subject to the universitys right to reasonably contest such charges,
judgments, liabilities or penalties. The university shall assist the department
in making any necessary calculations and filing any necessary reports related
to arbitrage and rebate on such indebtedness.
(4) Any amounts
deposited with the State Treasurer, the department or its designated agents in
any debt service in reserve accounts for the debt service associated with any
bonds, certificates of participation, financing agreements or other agreements
for the borrowing of money issued prior to July 1, 1995, by the State of Oregon
on behalf of the State Board of Higher Education for equipment or projects for
the university shall remain with the State Treasurer, the department or its
designated agents until such time as the bonds, certificates of participation,
financing agreements or other agreements for the borrowing of money for which
such reserve accounts have been established have been retired or defeased. The
university shall be credited with the investment earnings on such reserve
accounts. [1995 c.162 §58; 1999 c.291 §11; 2015 c.767 §23]
Note:
Legislative Counsel has
substituted chapter 162, Oregon Laws 1995, for the words this Act in
section 58, chapter 162, Oregon Laws 1995, compiled as 353.330. Specific ORS
references have not been substituted pursuant to 173.160. These sections may be
determined by referring to the 1995 Comparative Section Table located in Volume
22 of ORS.
(Bonds)