The Oregon Administrative Rules contain OARs filed through November 15, 2015

 

QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

 

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