289.100 OregonFacilities Authority; members; qualifications; term
289.105 Officialaction to undertake project
289.110 Dutiesand powers with respect to projects
289.115 Functions
289.120 Limitationon manner of operating project and expenditure of funds
289.125 Rules;fees
289.130 OregonFacilities Authority Account
BONDS
289.200 Issuanceof revenue bonds; role of State Treasurer; role of Oregon Facilities Authority;fees
289.205 Expensesof State Treasurer
289.210 Refundingbonds
289.215 Validityof bonds not affected by other matters regarding facility
289.220 Covenantsregarding bond issuance
289.225 Sourcesof bond repayment restricted; recitations in bonds
289.230 Actionsby bondholders to enforce rights
289.235 Loanof bond proceeds for projects; state not required to have ownership or leaseholdinterest
289.240 Reportof bonding activities; rules
GENERALPROVISIONS
289.005Definitions.As used in this chapter, unless the context requires otherwise:
(1)“Authority” means the Oregon Facilities Authority created by this chapter.
(2)“Bonds” or “revenue bonds” means revenue bonds, as defined in ORS 286A.001.
(3)“Cost” means the cost of:
(a)Construction, acquisition, alteration, enlargement, reconstruction andremodeling of a project, including all lands, structures, real or personal property,rights, rights of way, air rights, franchises, easements and interests acquiredor used for or in connection with a project;
(b)Demolishing or removing any buildings or structures on land as acquired,including the cost of acquiring any lands to which such buildings or structuresmay be moved;
(c)All machinery and equipment;
(d)Financing charges, interest prior to, during and for a period after completionof construction and acquisition, reasonably required amounts to make theproject operational, provisions for reserves for principal and interest and forextensions, enlargements, additions, replacements, renovations andimprovements;
(e)Architectural, actuarial engineering, financial and legal services, plansspecifications, studies, surveys, estimates of costs and of revenues,administrative expenses, expenses necessary or incident to determining thefeasibility or practicability of constructing the project; and
(f)Such other expenses as may be necessary or incident to a project, the financingof such project and the placing of the project in operation.
(4)“Cultural institution” means a public or nonprofit institution within thisstate which engages in the cultural, intellectual, scientific, environmental,educational or artistic enrichment of the people of this state. “Culturalinstitution” includes, without limitation, aquaria, botanical societies,historical societies, land conservation organizations, libraries, museums,performing arts associations or societies, scientific societies, wildlifeconservation organizations and zoological societies. “Cultural institution”does not mean any school or any institution primarily engaged in religious orsectarian activities.
(5)“Health care institution” means a public or nonprofit organization within thisstate that provides health care and related services, including but not limitedto the provision of inpatient and outpatient care, diagnostic or therapeuticservices, laboratory services, medicinal drugs, nursing care, assisted living,elderly care and housing, including retirement communities, and equipment usedor useful for the provision of health care and related services.
(6)“Housing institution” means a public or nonprofit organization within thisstate that provides decent, affordable housing to low income persons.
(7)“Institution” means a cultural institution, a health care institution, ahousing institution, an institution for higher education, an institution forprekindergarten through grade 12 education, a school for persons withdisabilities or another nonprofit.
(8)“Institution for higher education” means a public or nonprofit educationalinstitution within this state authorized by law to provide a program ofeducation beyond the high school level, including community colleges andassociate degree granting institutions. “Institution for higher education” doesnot mean any school or any institution primarily engaged in religious orsectarian activities.
(9)“Institution for prekindergarten through grade 12 education” means an Oregonprekindergarten as defined in ORS 329.170, a public educational institutionwithin this state authorized by law to provide a program of education forkindergarten through grade 12 or a nonprofit educational institution withinthis state registered as a private school under ORS 345.545 that provides aprogram of education for prekindergarten through grade 12. “Institution forprekindergarten through grade 12 education” does not mean a school orinstitution primarily engaged in religious or sectarian activities.
(10)“Nonprofit” means an institution, organization or entity within this stateexempt from taxation under section 501(c)(3) of the Internal Revenue Code asdefined in ORS 314.011.
(11)(a)“Project” means the financing or refinancing, including without limitation,acquisition, construction, enlargement, remodeling, renovation, improvement,furnishing or equipping, of the following:
(A)In the case of a participating institution that is an institution for highereducation, an institution for prekindergarten through grade 12 education or aschool for persons with disabilities, a structure or structures suitable foruse as a dormitory or other multiunit housing facility for students, faculty,officers or employees, or a dining hall, student union, administrationbuilding, academic building, library, laboratory, research facility, classroom,athletic facility, health care facility, maintenance, storage or utilityfacility and other structures or facilities related to any of the structuresrequired or used for the instruction of students, the conducting of research orthe operation of an institution for higher education, an institution forprekindergarten through grade 12 education or a school for persons withdisabilities. It shall also include landscaping, site preparation, furniture,equipment and machinery and other similar items necessary or convenient for theoperation of a particular facility or structure in the manner for which its useis intended and shall further include any furnishings, equipment, machinery andother similar items necessary or convenient for the operation of an institutionof higher education, an institution for prekindergarten through grade 12education or a school for persons with disabilities, whether or not such itemsare related to a particular facility or structure financed under this chapter.
(B)In the case of a participating institution that is a housing institution, astructure or structures suitable for use as housing, including residences ormultiunit housing facilities, administration buildings, maintenance, storage orutility facilities and other structures or facilities related to any of thestructures required or used for the operation of the housing, including parkingand other facilities or structures essential or convenient for the orderlyprovision of such housing. It shall also include landscaping, site preparation,furniture, equipment and machinery and other similar items necessary orconvenient for the particular housing facility or structure in the manner forwhich its use is intended and shall further include any furnishings, equipment,machinery and other similar items necessary or convenient for the provision ofhousing, whether or not such items are related to a particular facility orstructure financed under this chapter.
(C)In the case of a participating institution that is a cultural institution, astructure or structures suitable for its purposes, whether or not to be used toprovide educational services, or research resources, including use as or inconnection with an administrative facility, aquarium, assembly hall,auditorium, botanical garden, exhibition hall, gallery, greenhouse, library,museum, scientific laboratory, theater or zoological facility. It shall alsoinclude supporting facilities, landscaping, site preparation, furniture,equipment, machinery and other similar items necessary or convenient for theoperation of a cultural institution, whether or not such items are related to aparticular facility or structure financed under this chapter, including books,works of art or other items for display or exhibition.
(D)In the case of a participating institution that is a health care institution, astructure or structures suitable for its purposes, including hospitalfacilities, inpatient and outpatient clinics, doctors’ offices, administrationbuildings, parking, maintenance, storage or utility facilities, nursing care orassisted living facilities, elderly care and housing facilities, includingretirement communities, and other structures or facilities related to any ofthe structures required or used for the operation of the health careinstitution, including other facilities or structures essential or convenientfor the orderly provision of such health care. It shall also include landscaping,site preparation, furniture, equipment and machinery and other similar itemsnecessary or convenient for the particular health care facility or structure inthe manner for which its use is intended and shall further include any workingcapital, furnishings, equipment, machinery and other similar items necessary orconvenient for the provision of health care, whether or not such items arerelated to a particular facility or structure financed under this chapter,including borrowings needed to alleviate interim cash flow deficits of a healthcare institution.
(E)In the case of a participating institution that is a nonprofit not otherwisespecified in this subsection, a structure or structures suitable for itspurposes, including facilities or structures essential or convenient for theorderly operations of the nonprofit. It shall also include acquisition ofinterests in land, landscaping, site preparation, furniture, equipment andmachinery and other similar items necessary or convenient for the nonprofit,whether or not the items are related to a particular facility or structurefinanced under this chapter, including borrowings needed to alleviate interimcash flow deficits of the nonprofit.
(b)“Project” also includes any combination of one or more of the projectsundertaken jointly by one or more participating institutions with each other orwith other parties.
(c)“Project” does not include any facility used or to be used for sectarianinstruction or as a place of religious worship or any facility which is used orto be used primarily in connection with any part of the program of a school ordepartment of divinity for any religious denomination.
(12)“School for persons with disabilities” means a public or nonprofit primary,secondary or post-secondary school within this state that serves students atleast 70 percent of whom are persons with disabilities as determined by one ormore appropriate education, rehabilitation, medical or mental healthauthorities; is accredited by a recognized accrediting body; and is determinedby the authority to be a major resource of benefit to persons withdisabilities. “School for persons with disabilities” does not mean any schoolor any institution primarily engaged in religious or sectarian activities. [1989c.820 §2; 1991 c.408 §1; 2001 c.270 §1; 2007 c.70 §74; 2007 c.783 §113; 2007c.785 §1]
289.010Findings; purpose.(1) The Legislative Assembly finds that by use of the powers and proceduresdescribed in this chapter for the assembling and financing of lands forhousing, educational, cultural or other nonprofit uses and for the constructionand financing of facilities for those uses, financed through the issuance ofrevenue bonds secured solely by the properties and rentals thus made available,the state may be able to increase the availability of decent, affordablehousing, the achievement of higher levels of learning and development of theintellectual capacities of citizens, the expansion of the authorized servicesand resources for the intellectual and artistic enrichment of citizens, theadvancement of nonprofit activities and services and the general well-being ofcitizens.
(2)It is the purpose of this chapter to authorize the exercise of powers grantedby this chapter by this state in addition to and not in lieu of any otherpowers it may possess. [1989 c.820 §1; 2007 c.71 §89; 2007 c.785 §2]
OREGONFACILITIES AUTHORITY
289.100Oregon Facilities Authority; members; qualifications; term. (1) There iscreated a body politic and corporate to be known as the Oregon FacilitiesAuthority. The authority is constituted a public instrumentality, and theexercise by the authority of the powers conferred by this chapter is theperformance of an essential public function.
(2)The authority consists of seven members who must be residents of this state,not more than four of whom are members of the same political party. The StateTreasurer shall appoint the members, and members serve at the pleasure of theState Treasurer. At least one of the members must be an individualknowledgeable in the field of state and municipal finance. At least one of themembers must be an individual knowledgeable in the building construction field.
(3)Upon the expiration of the term of a member, the State Treasurer shall appointa successor for a term of four years.
(4)The State Treasurer shall appoint an individual to fill a vacancy for theremainder of the unexpired term. [1989 c.820 §3; 1991 c.408 §2; 2001 c.261 §1;2007 c.785 §3]
289.105Official action to undertake project. The undertaking of any eligible projectmust be requested by official action of the participating institution taken ata regular or duly called special meeting thereof by the affirmative vote of amajority of the members of the institution’s board of directors. [1989 c.820 §5]
289.110Duties and powers with respect to projects. (1) In addition to any otherpowers granted by law, the state, acting through the State Treasurer or adesignee of the State Treasurer, may:
(a)Enter into agreements to finance the costs of an eligible project by lendingthe proceeds of bonds authorized by this chapter to a participating institutionunder terms and with security approved by the state.
(b)Lease and sublease eligible projects to a participating institution subject to subsection(2) of this section.
(c)Pledge or assign all or part of the revenues of one or more eligible projectsowned or to be acquired by the state to the holders of bonds issued under thischapter or to a trustee for the holders, and segregate the revenues or providefor payment of the revenues to the trustee.
(d)Mortgage or otherwise encumber eligible projects in favor of the holders ofbonds issued under this chapter or a trustee for the holders without obligatingthe state except with respect to the project.
(e)Make contracts, execute instruments and do what is necessary or desirable toexercise the powers granted by this chapter, to perform the covenants or dutiesof this state or to secure the payment of bonds issued under this chapter.Contracts that may be made by the state include contracts entered into prior toconstruction, acquisition or installation of an eligible project thatauthorize, subject to terms and conditions the state finds necessary ordesirable, a lessee to provide for construction, acquisition or installation ofbuildings, improvements or equipment to be included in the project.
(f)Enter into and perform contracts and agreements with participating institutionsfor the planning, construction, installation, acquisition, leasing or financingof facilities of an eligible project, including a contract or agreement thatestablishes a body for the supervision and general management of thefacilities.
(g)Accept loans or grants for the planning, construction, installation, acquisition,leasing or other provision of an eligible project from an authorized agency ofthe federal government, and enter into agreements with the agency respectingthe loans or grants.
(2)A lease or sublease entered into under subsection (1)(b) of this section mustprovide that:
(a)Rents charged for the use of the project are established and revised asnecessary to produce sufficient revenue to allow for payment of the principalof and interest on bonds issued under this chapter when due; and
(b)The lessee or sublessee is required to pay:
(A)The expenses of the operation and maintenance of the project including, but notlimited to, adequate insurance on the project and insurance against liabilityfor injury to persons or property arising from the operation of the project;and
(B)The taxes and special assessments levied upon the leased or subleased premisesand payable during the term of the lease or sublease.
(3)During the term of a lease or sublease entered into under subsection (1)(b) ofthis section, ad valorem taxes must be imposed on the real and personalproperty of the eligible project in the same manner as the taxes would beimposed if the lessee or sublessee were the owner of the eligible project. [1989c.820 §6; 2005 c.22 §212; 2007 c.785 §4]
289.115Functions.In carrying out its duties under this chapter, the Oregon Facilities Authority,acting for and in behalf of the state as its duly authorized agency, may:
(1)Acquire, construct and hold in whole or in part any lands, buildings, easements,water and air rights, improvements to lands and buildings and capital equipmentto be located permanently or used exclusively on such lands or in suchbuildings, which are considered necessary in connection with an eligibleproject to be situated within this state, and construct, reconstruct, improve,better and extend such projects, and enter into contracts therefor; and
(2)Sell and convey all properties acquired in connection with eligible projects,including without limitation the sale and conveyance thereof subject to anymortgage and the sale and conveyance thereof under an option granted to thelessee of the eligible project, for such price, and at such time as the statemay determine. However, no sale or conveyance of such properties shall ever bemade in such manner as to impair the rights of interests of the holder, orholders, or any bonds issued under the authority of this chapter. [1989 c.820 §7;1991 c.408 §3]
289.120Limitation on manner of operating project and expenditure of funds. Except asprovided in ORS 289.115 (2), the state shall not have power to operate anyeligible project as a business or in any manner whatsoever. Nothing in thischapter authorizes the state to expend any funds on any eligible project, otherthan the revenues of such projects, or the proceeds of revenue bonds issuedunder this chapter, or other funds granted to the state for the purposes of aneligible project. [1989 c.820 §8]
289.125Rules; fees.(1) The Oregon Facilities Authority shall adopt by rule standards by which todetermine the eligibility of projects for bond financing pursuant to thischapter. In determining the standards, the authority shall consider allrelevant data. The standards of the authority must provide that projects areapproved in accordance with criteria reflecting the benefits to the state.Criteria include, but need not be limited to:
(a)Supporting projects that increase the number of decent, affordable housingunits in this state;
(b)Expanding the educational resources in this state; or
(c)Expanding the cultural resources in this state.
(2)Upon determining a project as eligible, the authority shall forward theapplication to the State Treasurer, who shall determine whether to issue therevenue bonds.
(3)The authority may treat as a single eligible project for bonding purposes anynumber of projects determined to be eligible projects.
(4)The authority shall collect the fees set forth in subsection (5) of thissection from an applicant that seeks to have a project declared eligible forfinancing. The fee identified in subsection (5)(a) of this section may becollected even though the project has not been determined to be eligible forfinancing.
(5)The fees described in subsection (4) of this section are:
(a)An application fee determined by the Oregon Facilities Authority by rule.
(b)A closing fee not to exceed one-half of one percent of the total bond issue forthe project, as determined by the authority.
(6)The authority shall deposit fees received under subsection (5) of this sectionin the Oregon Facilities Authority Account established under ORS 289.130. [1989c.820 §4; 1991 c.408 §4; 2007 c.785 §5]
289.130Oregon Facilities Authority Account. The Oregon Facilities Authority Accountis created separate and distinct from the General Fund. The account is aninvestment account for purposes of ORS 293.701 to 293.820. Interest on theaccount shall be credited to and deposited in the account. The account iscontinuously appropriated to the Oregon Facilities Authority and may be used tomeet administrative expenses of the authority. [1989 c.820 §4a; 1991 c.408 §5;2001 c.261 §2]
BONDS
289.200Issuance of revenue bonds; role of State Treasurer; role of Oregon FacilitiesAuthority; fees.(1) If the State Treasurer determines that revenue bonds should be issued:
(a)The State Treasurer may authorize and issue in the name of the State of Oregonrevenue bonds secured by revenues from eligible projects to finance orrefinance in whole or part the cost of acquisition, purchase, construction,reconstruction, installations improvement, betterment or extension of projects.The bonds shall be identified by project and issued in the manner prescribed byORS chapter 286A.
(b)The State Treasurer shall designate the trustee, financial advisor and bondcounsel, if any, and enter into appropriate agreements with each to carry outthe provisions of this chapter. An agreement with bond counsel designated bythe State Treasurer under this section is subject to the provisions related toservices provided by bond counsel under ORS 286A.130. The powers conferred on arelated agency under ORS chapter 286A do not apply to the Oregon FacilitiesAuthority with respect to the designation of trustee, financial advisor andbond counsel.
(2)Any trustee designated by the State Treasurer to carry out all or part of thepowers specified in ORS 289.110 must agree to furnish financial statements andaudit reports for each bond issue.
(3)The State Treasurer shall be the applicable elected representative for purposesof approving the issuance of revenue bonds under this chapter as to the extentsuch approval is required under section 147(f) of the Internal Revenue Code.
(4)The State Treasurer shall collect data from the authority regarding the amountand nature of bonded indebtedness in Oregon health care institutions financedthrough the authority. [1989 c.820 §9; 1991 c.408 §6; 1995 c.727 §14; 2001c.536 §8; 2007 c.783 §114]
289.205Expenses of State Treasurer. Reasonable administrative expenses of theState Treasurer shall be charged against bond proceeds or project revenues. [1989c.820 §10; 2007 c.783 §115]
289.210Refunding bonds.The State Treasurer shall have the power, whenever the treasurer considersrefunding expedient, to refund any bonds by the issuance of new bonds, whetherthe bonds to be refunded have or have not matured. The refunding bonds may beexchanged for bonds to be refunded and the proceeds applied to the purchase,redemption or payment of such bonds. [1989 c.820 §11]
289.215Validity of bonds not affected by other matters regarding facility. The validity ofbonds issued under this chapter shall not be dependent on nor be affected bythe validity or regularity of any proceeding relating to the acquisition,purchase, construction, reconstruction, installation, improvement, bettermentor extension of the project for which the bonds are issued. The official actionauthorizing such bonds may provide that the bonds shall contain a recital thatthey are issued pursuant to this chapter and such recital shall be conclusiveevidence of their validity and of the regularity of their issuance. [1989 c.820§12]
289.220Covenants regarding bond issuance. The official action authorizing theissuance of bonds under this chapter to finance or refinance in whole or inpart, the acquisition, purchase, construction, reconstruction, installation,improvement, betterment or extension of any project may contain covenants,notwithstanding that such covenants may limit the exercises of powers conferredby this chapter in the following respects and in such other respects as thestate, acting through the State Treasurer, or the designee of the treasurer maydecide:
(1)The rents to be charged for the use of properties acquired, purchased,constructed, reconstructed, installed, improved, bettered or extended under theauthority of this chapter;
(2)The use and disposition of the revenues of such projects;
(3)The creation and maintenance of sinking funds and the regulation, use anddisposition thereof;
(4)The creation and maintenance of funds to provide for maintaining the eligibleproject and replacement of properties depreciated, damaged, destroyed orcondemned;
(5)The purpose or purposes to which the proceeds of sale of bonds may be appliedand the use and disposition of such proceeds;
(6)The nature of mortgages or other encumbrances on the eligible project made infavor of the holder or holders of such bonds or a trustee therefor;
(7)The events of default and the rights and liabilities arising thereon and theterms and conditions upon which the holders of any bonds may bring any suit oraction on such bonds or on any coupons appurtenant thereto;
(8)The issuance of other or additional bonds or instruments payable from orconstituting a charge against the revenue of the eligible project;
(9)The insurance to be carried upon the eligible project and the use anddisposition of insurance moneys;
(10)The keeping of books of account and the inspection and audit thereof;
(11)The terms and conditions upon which any or all of th
289.100 OregonFacilities Authority; members; qualifications; term
289.105 Officialaction to undertake project
289.110 Dutiesand powers with respect to projects
289.115 Functions
289.120 Limitationon manner of operating project and expenditure of funds
289.125 Rules;fees
289.130 OregonFacilities Authority Account
BONDS
289.200 Issuanceof revenue bonds; role of State Treasurer; role of Oregon Facilities Authority;fees
289.205 Expensesof State Treasurer
289.210 Refundingbonds
289.215 Validityof bonds not affected by other matters regarding facility
289.220 Covenantsregarding bond issuance
289.225 Sourcesof bond repayment restricted; recitations in bonds
289.230 Actionsby bondholders to enforce rights
289.235 Loanof bond proceeds for projects; state not required to have ownership or leaseholdinterest
289.240 Reportof bonding activities; rules
GENERALPROVISIONS
289.005Definitions.As used in this chapter, unless the context requires otherwise:
(1)“Authority” means the Oregon Facilities Authority created by this chapter.
(2)“Bonds” or “revenue bonds” means revenue bonds, as defined in ORS 286A.001.
(3)“Cost” means the cost of:
(a)Construction, acquisition, alteration, enlargement, reconstruction andremodeling of a project, including all lands, structures, real or personal property,rights, rights of way, air rights, franchises, easements and interests acquiredor used for or in connection with a project;
(b)Demolishing or removing any buildings or structures on land as acquired,including the cost of acquiring any lands to which such buildings or structuresmay be moved;
(c)All machinery and equipment;
(d)Financing charges, interest prior to, during and for a period after completionof construction and acquisition, reasonably required amounts to make theproject operational, provisions for reserves for principal and interest and forextensions, enlargements, additions, replacements, renovations andimprovements;
(e)Architectural, actuarial engineering, financial and legal services, plansspecifications, studies, surveys, estimates of costs and of revenues,administrative expenses, expenses necessary or incident to determining thefeasibility or practicability of constructing the project; and
(f)Such other expenses as may be necessary or incident to a project, the financingof such project and the placing of the project in operation.
(4)“Cultural institution” means a public or nonprofit institution within thisstate which engages in the cultural, intellectual, scientific, environmental,educational or artistic enrichment of the people of this state. “Culturalinstitution” includes, without limitation, aquaria, botanical societies,historical societies, land conservation organizations, libraries, museums,performing arts associations or societies, scientific societies, wildlifeconservation organizations and zoological societies. “Cultural institution”does not mean any school or any institution primarily engaged in religious orsectarian activities.
(5)“Health care institution” means a public or nonprofit organization within thisstate that provides health care and related services, including but not limitedto the provision of inpatient and outpatient care, diagnostic or therapeuticservices, laboratory services, medicinal drugs, nursing care, assisted living,elderly care and housing, including retirement communities, and equipment usedor useful for the provision of health care and related services.
(6)“Housing institution” means a public or nonprofit organization within thisstate that provides decent, affordable housing to low income persons.
(7)“Institution” means a cultural institution, a health care institution, ahousing institution, an institution for higher education, an institution forprekindergarten through grade 12 education, a school for persons withdisabilities or another nonprofit.
(8)“Institution for higher education” means a public or nonprofit educationalinstitution within this state authorized by law to provide a program ofeducation beyond the high school level, including community colleges andassociate degree granting institutions. “Institution for higher education” doesnot mean any school or any institution primarily engaged in religious orsectarian activities.
(9)“Institution for prekindergarten through grade 12 education” means an Oregonprekindergarten as defined in ORS 329.170, a public educational institutionwithin this state authorized by law to provide a program of education forkindergarten through grade 12 or a nonprofit educational institution withinthis state registered as a private school under ORS 345.545 that provides aprogram of education for prekindergarten through grade 12. “Institution forprekindergarten through grade 12 education” does not mean a school orinstitution primarily engaged in religious or sectarian activities.
(10)“Nonprofit” means an institution, organization or entity within this stateexempt from taxation under section 501(c)(3) of the Internal Revenue Code asdefined in ORS 314.011.
(11)(a)“Project” means the financing or refinancing, including without limitation,acquisition, construction, enlargement, remodeling, renovation, improvement,furnishing or equipping, of the following:
(A)In the case of a participating institution that is an institution for highereducation, an institution for prekindergarten through grade 12 education or aschool for persons with disabilities, a structure or structures suitable foruse as a dormitory or other multiunit housing facility for students, faculty,officers or employees, or a dining hall, student union, administrationbuilding, academic building, library, laboratory, research facility, classroom,athletic facility, health care facility, maintenance, storage or utilityfacility and other structures or facilities related to any of the structuresrequired or used for the instruction of students, the conducting of research orthe operation of an institution for higher education, an institution forprekindergarten through grade 12 education or a school for persons withdisabilities. It shall also include landscaping, site preparation, furniture,equipment and machinery and other similar items necessary or convenient for theoperation of a particular facility or structure in the manner for which its useis intended and shall further include any furnishings, equipment, machinery andother similar items necessary or convenient for the operation of an institutionof higher education, an institution for prekindergarten through grade 12education or a school for persons with disabilities, whether or not such itemsare related to a particular facility or structure financed under this chapter.
(B)In the case of a participating institution that is a housing institution, astructure or structures suitable for use as housing, including residences ormultiunit housing facilities, administration buildings, maintenance, storage orutility facilities and other structures or facilities related to any of thestructures required or used for the operation of the housing, including parkingand other facilities or structures essential or convenient for the orderlyprovision of such housing. It shall also include landscaping, site preparation,furniture, equipment and machinery and other similar items necessary orconvenient for the particular housing facility or structure in the manner forwhich its use is intended and shall further include any furnishings, equipment,machinery and other similar items necessary or convenient for the provision ofhousing, whether or not such items are related to a particular facility orstructure financed under this chapter.
(C)In the case of a participating institution that is a cultural institution, astructure or structures suitable for its purposes, whether or not to be used toprovide educational services, or research resources, including use as or inconnection with an administrative facility, aquarium, assembly hall,auditorium, botanical garden, exhibition hall, gallery, greenhouse, library,museum, scientific laboratory, theater or zoological facility. It shall alsoinclude supporting facilities, landscaping, site preparation, furniture,equipment, machinery and other similar items necessary or convenient for theoperation of a cultural institution, whether or not such items are related to aparticular facility or structure financed under this chapter, including books,works of art or other items for display or exhibition.
(D)In the case of a participating institution that is a health care institution, astructure or structures suitable for its purposes, including hospitalfacilities, inpatient and outpatient clinics, doctors’ offices, administrationbuildings, parking, maintenance, storage or utility facilities, nursing care orassisted living facilities, elderly care and housing facilities, includingretirement communities, and other structures or facilities related to any ofthe structures required or used for the operation of the health careinstitution, including other facilities or structures essential or convenientfor the orderly provision of such health care. It shall also include landscaping,site preparation, furniture, equipment and machinery and other similar itemsnecessary or convenient for the particular health care facility or structure inthe manner for which its use is intended and shall further include any workingcapital, furnishings, equipment, machinery and other similar items necessary orconvenient for the provision of health care, whether or not such items arerelated to a particular facility or structure financed under this chapter,including borrowings needed to alleviate interim cash flow deficits of a healthcare institution.
(E)In the case of a participating institution that is a nonprofit not otherwisespecified in this subsection, a structure or structures suitable for itspurposes, including facilities or structures essential or convenient for theorderly operations of the nonprofit. It shall also include acquisition ofinterests in land, landscaping, site preparation, furniture, equipment andmachinery and other similar items necessary or convenient for the nonprofit,whether or not the items are related to a particular facility or structurefinanced under this chapter, including borrowings needed to alleviate interimcash flow deficits of the nonprofit.
(b)“Project” also includes any combination of one or more of the projectsundertaken jointly by one or more participating institutions with each other orwith other parties.
(c)“Project” does not include any facility used or to be used for sectarianinstruction or as a place of religious worship or any facility which is used orto be used primarily in connection with any part of the program of a school ordepartment of divinity for any religious denomination.
(12)“School for persons with disabilities” means a public or nonprofit primary,secondary or post-secondary school within this state that serves students atleast 70 percent of whom are persons with disabilities as determined by one ormore appropriate education, rehabilitation, medical or mental healthauthorities; is accredited by a recognized accrediting body; and is determinedby the authority to be a major resource of benefit to persons withdisabilities. “School for persons with disabilities” does not mean any schoolor any institution primarily engaged in religious or sectarian activities. [1989c.820 §2; 1991 c.408 §1; 2001 c.270 §1; 2007 c.70 §74; 2007 c.783 §113; 2007c.785 §1]
289.010Findings; purpose.(1) The Legislative Assembly finds that by use of the powers and proceduresdescribed in this chapter for the assembling and financing of lands forhousing, educational, cultural or other nonprofit uses and for the constructionand financing of facilities for those uses, financed through the issuance ofrevenue bonds secured solely by the properties and rentals thus made available,the state may be able to increase the availability of decent, affordablehousing, the achievement of higher levels of learning and development of theintellectual capacities of citizens, the expansion of the authorized servicesand resources for the intellectual and artistic enrichment of citizens, theadvancement of nonprofit activities and services and the general well-being ofcitizens.
(2)It is the purpose of this chapter to authorize the exercise of powers grantedby this chapter by this state in addition to and not in lieu of any otherpowers it may possess. [1989 c.820 §1; 2007 c.71 §89; 2007 c.785 §2]
OREGONFACILITIES AUTHORITY
289.100Oregon Facilities Authority; members; qualifications; term. (1) There iscreated a body politic and corporate to be known as the Oregon FacilitiesAuthority. The authority is constituted a public instrumentality, and theexercise by the authority of the powers conferred by this chapter is theperformance of an essential public function.
(2)The authority consists of seven members who must be residents of this state,not more than four of whom are members of the same political party. The StateTreasurer shall appoint the members, and members serve at the pleasure of theState Treasurer. At least one of the members must be an individualknowledgeable in the field of state and municipal finance. At least one of themembers must be an individual knowledgeable in the building construction field.
(3)Upon the expiration of the term of a member, the State Treasurer shall appointa successor for a term of four years.
(4)The State Treasurer shall appoint an individual to fill a vacancy for theremainder of the unexpired term. [1989 c.820 §3; 1991 c.408 §2; 2001 c.261 §1;2007 c.785 §3]
289.105Official action to undertake project. The undertaking of any eligible projectmust be requested by official action of the participating institution taken ata regular or duly called special meeting thereof by the affirmative vote of amajority of the members of the institution’s board of directors. [1989 c.820 §5]
289.110Duties and powers with respect to projects. (1) In addition to any otherpowers granted by law, the state, acting through the State Treasurer or adesignee of the State Treasurer, may:
(a)Enter into agreements to finance the costs of an eligible project by lendingthe proceeds of bonds authorized by this chapter to a participating institutionunder terms and with security approved by the state.
(b)Lease and sublease eligible projects to a participating institution subject to subsection(2) of this section.
(c)Pledge or assign all or part of the revenues of one or more eligible projectsowned or to be acquired by the state to the holders of bonds issued under thischapter or to a trustee for the holders, and segregate the revenues or providefor payment of the revenues to the trustee.
(d)Mortgage or otherwise encumber eligible projects in favor of the holders ofbonds issued under this chapter or a trustee for the holders without obligatingthe state except with respect to the project.
(e)Make contracts, execute instruments and do what is necessary or desirable toexercise the powers granted by this chapter, to perform the covenants or dutiesof this state or to secure the payment of bonds issued under this chapter.Contracts that may be made by the state include contracts entered into prior toconstruction, acquisition or installation of an eligible project thatauthorize, subject to terms and conditions the state finds necessary ordesirable, a lessee to provide for construction, acquisition or installation ofbuildings, improvements or equipment to be included in the project.
(f)Enter into and perform contracts and agreements with participating institutionsfor the planning, construction, installation, acquisition, leasing or financingof facilities of an eligible project, including a contract or agreement thatestablishes a body for the supervision and general management of thefacilities.
(g)Accept loans or grants for the planning, construction, installation, acquisition,leasing or other provision of an eligible project from an authorized agency ofthe federal government, and enter into agreements with the agency respectingthe loans or grants.
(2)A lease or sublease entered into under subsection (1)(b) of this section mustprovide that:
(a)Rents charged for the use of the project are established and revised asnecessary to produce sufficient revenue to allow for payment of the principalof and interest on bonds issued under this chapter when due; and
(b)The lessee or sublessee is required to pay:
(A)The expenses of the operation and maintenance of the project including, but notlimited to, adequate insurance on the project and insurance against liabilityfor injury to persons or property arising from the operation of the project;and
(B)The taxes and special assessments levied upon the leased or subleased premisesand payable during the term of the lease or sublease.
(3)During the term of a lease or sublease entered into under subsection (1)(b) ofthis section, ad valorem taxes must be imposed on the real and personalproperty of the eligible project in the same manner as the taxes would beimposed if the lessee or sublessee were the owner of the eligible project. [1989c.820 §6; 2005 c.22 §212; 2007 c.785 §4]
289.115Functions.In carrying out its duties under this chapter, the Oregon Facilities Authority,acting for and in behalf of the state as its duly authorized agency, may:
(1)Acquire, construct and hold in whole or in part any lands, buildings, easements,water and air rights, improvements to lands and buildings and capital equipmentto be located permanently or used exclusively on such lands or in suchbuildings, which are considered necessary in connection with an eligibleproject to be situated within this state, and construct, reconstruct, improve,better and extend such projects, and enter into contracts therefor; and
(2)Sell and convey all properties acquired in connection with eligible projects,including without limitation the sale and conveyance thereof subject to anymortgage and the sale and conveyance thereof under an option granted to thelessee of the eligible project, for such price, and at such time as the statemay determine. However, no sale or conveyance of such properties shall ever bemade in such manner as to impair the rights of interests of the holder, orholders, or any bonds issued under the authority of this chapter. [1989 c.820 §7;1991 c.408 §3]
289.120Limitation on manner of operating project and expenditure of funds. Except asprovided in ORS 289.115 (2), the state shall not have power to operate anyeligible project as a business or in any manner whatsoever. Nothing in thischapter authorizes the state to expend any funds on any eligible project, otherthan the revenues of such projects, or the proceeds of revenue bonds issuedunder this chapter, or other funds granted to the state for the purposes of aneligible project. [1989 c.820 §8]
289.125Rules; fees.(1) The Oregon Facilities Authority shall adopt by rule standards by which todetermine the eligibility of projects for bond financing pursuant to thischapter. In determining the standards, the authority shall consider allrelevant data. The standards of the authority must provide that projects areapproved in accordance with criteria reflecting the benefits to the state.Criteria include, but need not be limited to:
(a)Supporting projects that increase the number of decent, affordable housingunits in this state;
(b)Expanding the educational resources in this state; or
(c)Expanding the cultural resources in this state.
(2)Upon determining a project as eligible, the authority shall forward theapplication to the State Treasurer, who shall determine whether to issue therevenue bonds.
(3)The authority may treat as a single eligible project for bonding purposes anynumber of projects determined to be eligible projects.
(4)The authority shall collect the fees set forth in subsection (5) of thissection from an applicant that seeks to have a project declared eligible forfinancing. The fee identified in subsection (5)(a) of this section may becollected even though the project has not been determined to be eligible forfinancing.
(5)The fees described in subsection (4) of this section are:
(a)An application fee determined by the Oregon Facilities Authority by rule.
(b)A closing fee not to exceed one-half of one percent of the total bond issue forthe project, as determined by the authority.
(6)The authority shall deposit fees received under subsection (5) of this sectionin the Oregon Facilities Authority Account established under ORS 289.130. [1989c.820 §4; 1991 c.408 §4; 2007 c.785 §5]
289.130Oregon Facilities Authority Account. The Oregon Facilities Authority Accountis created separate and distinct from the General Fund. The account is aninvestment account for purposes of ORS 293.701 to 293.820. Interest on theaccount shall be credited to and deposited in the account. The account iscontinuously appropriated to the Oregon Facilities Authority and may be used tomeet administrative expenses of the authority. [1989 c.820 §4a; 1991 c.408 §5;2001 c.261 §2]
BONDS
289.200Issuance of revenue bonds; role of State Treasurer; role of Oregon FacilitiesAuthority; fees.(1) If the State Treasurer determines that revenue bonds should be issued:
(a)The State Treasurer may authorize and issue in the name of the State of Oregonrevenue bonds secured by revenues from eligible projects to finance orrefinance in whole or part the cost of acquisition, purchase, construction,reconstruction, installations improvement, betterment or extension of projects.The bonds shall be identified by project and issued in the manner prescribed byORS chapter 286A.
(b)The State Treasurer shall designate the trustee, financial advisor and bondcounsel, if any, and enter into appropriate agreements with each to carry outthe provisions of this chapter. An agreement with bond counsel designated bythe State Treasurer under this section is subject to the provisions related toservices provided by bond counsel under ORS 286A.130. The powers conferred on arelated agency under ORS chapter 286A do not apply to the Oregon FacilitiesAuthority with respect to the designation of trustee, financial advisor andbond counsel.
(2)Any trustee designated by the State Treasurer to carry out all or part of thepowers specified in ORS 289.110 must agree to furnish financial statements andaudit reports for each bond issue.
(3)The State Treasurer shall be the applicable elected representative for purposesof approving the issuance of revenue bonds under this chapter as to the extentsuch approval is required under section 147(f) of the Internal Revenue Code.
(4)The State Treasurer shall collect data from the authority regarding the amountand nature of bonded indebtedness in Oregon health care institutions financedthrough the authority. [1989 c.820 §9; 1991 c.408 §6; 1995 c.727 §14; 2001c.536 §8; 2007 c.783 §114]
289.205Expenses of State Treasurer. Reasonable administrative expenses of theState Treasurer shall be charged against bond proceeds or project revenues. [1989c.820 §10; 2007 c.783 §115]
289.210Refunding bonds.The State Treasurer shall have the power, whenever the treasurer considersrefunding expedient, to refund any bonds by the issuance of new bonds, whetherthe bonds to be refunded have or have not matured. The refunding bonds may beexchanged for bonds to be refunded and the proceeds applied to the purchase,redemption or payment of such bonds. [1989 c.820 §11]
289.215Validity of bonds not affected by other matters regarding facility. The validity ofbonds issued under this chapter shall not be dependent on nor be affected bythe validity or regularity of any proceeding relating to the acquisition,purchase, construction, reconstruction, installation, improvement, bettermentor extension of the project for which the bonds are issued. The official actionauthorizing such bonds may provide that the bonds shall contain a recital thatthey are issued pursuant to this chapter and such recital shall be conclusiveevidence of their validity and of the regularity of their issuance. [1989 c.820§12]
289.220Covenants regarding bond issuance. The official action authorizing theissuance of bonds under this chapter to finance or refinance in whole or inpart, the acquisition, purchase, construction, reconstruction, installation,improvement, betterment or extension of any project may contain covenants,notwithstanding that such covenants may limit the exercises of powers conferredby this chapter in the following respects and in such other respects as thestate, acting through the State Treasurer, or the designee of the treasurer maydecide:
(1)The rents to be charged for the use of properties acquired, purchased,constructed, reconstructed, installed, improved, bettered or extended under theauthority of this chapter;
(2)The use and disposition of the revenues of such projects;
(3)The creation and maintenance of sinking funds and the regulation, use anddisposition thereof;
(4)The creation and maintenance of funds to provide for maintaining the eligibleproject and replacement of properties depreciated, damaged, destroyed orcondemned;
(5)The purpose or purposes to which the proceeds of sale of bonds may be appliedand the use and disposition of such proceeds;
(6)The nature of mortgages or other encumbrances on the eligible project made infavor of the holder or holders of such bonds or a trustee therefor;
(7)The events of default and the rights and liabilities arising thereon and theterms and conditions upon which the holders of any bonds may bring any suit oraction on such bonds or on any coupons appurtenant thereto;
(8)The issuance of other or additional bonds or instruments payable from orconstituting a charge against the revenue of the eligible project;
(9)The insurance to be carried upon the eligible project and the use anddisposition of insurance moneys;
(10)The keeping of books of account and the inspection and audit thereof;
(11)The terms and conditions upon which any or all of th
289.100 OregonFacilities Authority; members; qualifications; term
289.105 Officialaction to undertake project
289.110 Dutiesand powers with respect to projects
289.115 Functions
289.120 Limitationon manner of operating project and expenditure of funds
289.125 Rules;fees
289.130 OregonFacilities Authority Account
BONDS
289.200 Issuanceof revenue bonds; role of State Treasurer; role of Oregon Facilities Authority;fees
289.205 Expensesof State Treasurer
289.210 Refundingbonds
289.215 Validityof bonds not affected by other matters regarding facility
289.220 Covenantsregarding bond issuance
289.225 Sourcesof bond repayment restricted; recitations in bonds
289.230 Actionsby bondholders to enforce rights
289.235 Loanof bond proceeds for projects; state not required to have ownership or leaseholdinterest
289.240 Reportof bonding activities; rules
GENERALPROVISIONS
289.005Definitions.As used in this chapter, unless the context requires otherwise:
(1)“Authority” means the Oregon Facilities Authority created by this chapter.
(2)“Bonds” or “revenue bonds” means revenue bonds, as defined in ORS 286A.001.
(3)“Cost” means the cost of:
(a)Construction, acquisition, alteration, enlargement, reconstruction andremodeling of a project, including all lands, structures, real or personal property,rights, rights of way, air rights, franchises, easements and interests acquiredor used for or in connection with a project;
(b)Demolishing or removing any buildings or structures on land as acquired,including the cost of acquiring any lands to which such buildings or structuresmay be moved;
(c)All machinery and equipment;
(d)Financing charges, interest prior to, during and for a period after completionof construction and acquisition, reasonably required amounts to make theproject operational, provisions for reserves for principal and interest and forextensions, enlargements, additions, replacements, renovations andimprovements;
(e)Architectural, actuarial engineering, financial and legal services, plansspecifications, studies, surveys, estimates of costs and of revenues,administrative expenses, expenses necessary or incident to determining thefeasibility or practicability of constructing the project; and
(f)Such other expenses as may be necessary or incident to a project, the financingof such project and the placing of the project in operation.
(4)“Cultural institution” means a public or nonprofit institution within thisstate which engages in the cultural, intellectual, scientific, environmental,educational or artistic enrichment of the people of this state. “Culturalinstitution” includes, without limitation, aquaria, botanical societies,historical societies, land conservation organizations, libraries, museums,performing arts associations or societies, scientific societies, wildlifeconservation organizations and zoological societies. “Cultural institution”does not mean any school or any institution primarily engaged in religious orsectarian activities.
(5)“Health care institution” means a public or nonprofit organization within thisstate that provides health care and related services, including but not limitedto the provision of inpatient and outpatient care, diagnostic or therapeuticservices, laboratory services, medicinal drugs, nursing care, assisted living,elderly care and housing, including retirement communities, and equipment usedor useful for the provision of health care and related services.
(6)“Housing institution” means a public or nonprofit organization within thisstate that provides decent, affordable housing to low income persons.
(7)“Institution” means a cultural institution, a health care institution, ahousing institution, an institution for higher education, an institution forprekindergarten through grade 12 education, a school for persons withdisabilities or another nonprofit.
(8)“Institution for higher education” means a public or nonprofit educationalinstitution within this state authorized by law to provide a program ofeducation beyond the high school level, including community colleges andassociate degree granting institutions. “Institution for higher education” doesnot mean any school or any institution primarily engaged in religious orsectarian activities.
(9)“Institution for prekindergarten through grade 12 education” means an Oregonprekindergarten as defined in ORS 329.170, a public educational institutionwithin this state authorized by law to provide a program of education forkindergarten through grade 12 or a nonprofit educational institution withinthis state registered as a private school under ORS 345.545 that provides aprogram of education for prekindergarten through grade 12. “Institution forprekindergarten through grade 12 education” does not mean a school orinstitution primarily engaged in religious or sectarian activities.
(10)“Nonprofit” means an institution, organization or entity within this stateexempt from taxation under section 501(c)(3) of the Internal Revenue Code asdefined in ORS 314.011.
(11)(a)“Project” means the financing or refinancing, including without limitation,acquisition, construction, enlargement, remodeling, renovation, improvement,furnishing or equipping, of the following:
(A)In the case of a participating institution that is an institution for highereducation, an institution for prekindergarten through grade 12 education or aschool for persons with disabilities, a structure or structures suitable foruse as a dormitory or other multiunit housing facility for students, faculty,officers or employees, or a dining hall, student union, administrationbuilding, academic building, library, laboratory, research facility, classroom,athletic facility, health care facility, maintenance, storage or utilityfacility and other structures or facilities related to any of the structuresrequired or used for the instruction of students, the conducting of research orthe operation of an institution for higher education, an institution forprekindergarten through grade 12 education or a school for persons withdisabilities. It shall also include landscaping, site preparation, furniture,equipment and machinery and other similar items necessary or convenient for theoperation of a particular facility or structure in the manner for which its useis intended and shall further include any furnishings, equipment, machinery andother similar items necessary or convenient for the operation of an institutionof higher education, an institution for prekindergarten through grade 12education or a school for persons with disabilities, whether or not such itemsare related to a particular facility or structure financed under this chapter.
(B)In the case of a participating institution that is a housing institution, astructure or structures suitable for use as housing, including residences ormultiunit housing facilities, administration buildings, maintenance, storage orutility facilities and other structures or facilities related to any of thestructures required or used for the operation of the housing, including parkingand other facilities or structures essential or convenient for the orderlyprovision of such housing. It shall also include landscaping, site preparation,furniture, equipment and machinery and other similar items necessary orconvenient for the particular housing facility or structure in the manner forwhich its use is intended and shall further include any furnishings, equipment,machinery and other similar items necessary or convenient for the provision ofhousing, whether or not such items are related to a particular facility orstructure financed under this chapter.
(C)In the case of a participating institution that is a cultural institution, astructure or structures suitable for its purposes, whether or not to be used toprovide educational services, or research resources, including use as or inconnection with an administrative facility, aquarium, assembly hall,auditorium, botanical garden, exhibition hall, gallery, greenhouse, library,museum, scientific laboratory, theater or zoological facility. It shall alsoinclude supporting facilities, landscaping, site preparation, furniture,equipment, machinery and other similar items necessary or convenient for theoperation of a cultural institution, whether or not such items are related to aparticular facility or structure financed under this chapter, including books,works of art or other items for display or exhibition.
(D)In the case of a participating institution that is a health care institution, astructure or structures suitable for its purposes, including hospitalfacilities, inpatient and outpatient clinics, doctors’ offices, administrationbuildings, parking, maintenance, storage or utility facilities, nursing care orassisted living facilities, elderly care and housing facilities, includingretirement communities, and other structures or facilities related to any ofthe structures required or used for the operation of the health careinstitution, including other facilities or structures essential or convenientfor the orderly provision of such health care. It shall also include landscaping,site preparation, furniture, equipment and machinery and other similar itemsnecessary or convenient for the particular health care facility or structure inthe manner for which its use is intended and shall further include any workingcapital, furnishings, equipment, machinery and other similar items necessary orconvenient for the provision of health care, whether or not such items arerelated to a particular facility or structure financed under this chapter,including borrowings needed to alleviate interim cash flow deficits of a healthcare institution.
(E)In the case of a participating institution that is a nonprofit not otherwisespecified in this subsection, a structure or structures suitable for itspurposes, including facilities or structures essential or convenient for theorderly operations of the nonprofit. It shall also include acquisition ofinterests in land, landscaping, site preparation, furniture, equipment andmachinery and other similar items necessary or convenient for the nonprofit,whether or not the items are related to a particular facility or structurefinanced under this chapter, including borrowings needed to alleviate interimcash flow deficits of the nonprofit.
(b)“Project” also includes any combination of one or more of the projectsundertaken jointly by one or more participating institutions with each other orwith other parties.
(c)“Project” does not include any facility used or to be used for sectarianinstruction or as a place of religious worship or any facility which is used orto be used primarily in connection with any part of the program of a school ordepartment of divinity for any religious denomination.
(12)“School for persons with disabilities” means a public or nonprofit primary,secondary or post-secondary school within this state that serves students atleast 70 percent of whom are persons with disabilities as determined by one ormore appropriate education, rehabilitation, medical or mental healthauthorities; is accredited by a recognized accrediting body; and is determinedby the authority to be a major resource of benefit to persons withdisabilities. “School for persons with disabilities” does not mean any schoolor any institution primarily engaged in religious or sectarian activities. [1989c.820 §2; 1991 c.408 §1; 2001 c.270 §1; 2007 c.70 §74; 2007 c.783 §113; 2007c.785 §1]
289.010Findings; purpose.(1) The Legislative Assembly finds that by use of the powers and proceduresdescribed in this chapter for the assembling and financing of lands forhousing, educational, cultural or other nonprofit uses and for the constructionand financing of facilities for those uses, financed through the issuance ofrevenue bonds secured solely by the properties and rentals thus made available,the state may be able to increase the availability of decent, affordablehousing, the achievement of higher levels of learning and development of theintellectual capacities of citizens, the expansion of the authorized servicesand resources for the intellectual and artistic enrichment of citizens, theadvancement of nonprofit activities and services and the general well-being ofcitizens.
(2)It is the purpose of this chapter to authorize the exercise of powers grantedby this chapter by this state in addition to and not in lieu of any otherpowers it may possess. [1989 c.820 §1; 2007 c.71 §89; 2007 c.785 §2]
OREGONFACILITIES AUTHORITY
289.100Oregon Facilities Authority; members; qualifications; term. (1) There iscreated a body politic and corporate to be known as the Oregon FacilitiesAuthority. The authority is constituted a public instrumentality, and theexercise by the authority of the powers conferred by this chapter is theperformance of an essential public function.
(2)The authority consists of seven members who must be residents of this state,not more than four of whom are members of the same political party. The StateTreasurer shall appoint the members, and members serve at the pleasure of theState Treasurer. At least one of the members must be an individualknowledgeable in the field of state and municipal finance. At least one of themembers must be an individual knowledgeable in the building construction field.
(3)Upon the expiration of the term of a member, the State Treasurer shall appointa successor for a term of four years.
(4)The State Treasurer shall appoint an individual to fill a vacancy for theremainder of the unexpired term. [1989 c.820 §3; 1991 c.408 §2; 2001 c.261 §1;2007 c.785 §3]
289.105Official action to undertake project. The undertaking of any eligible projectmust be requested by official action of the participating institution taken ata regular or duly called special meeting thereof by the affirmative vote of amajority of the members of the institution’s board of directors. [1989 c.820 §5]
289.110Duties and powers with respect to projects. (1) In addition to any otherpowers granted by law, the state, acting through the State Treasurer or adesignee of the State Treasurer, may:
(a)Enter into agreements to finance the costs of an eligible project by lendingthe proceeds of bonds authorized by this chapter to a participating institutionunder terms and with security approved by the state.
(b)Lease and sublease eligible projects to a participating institution subject to subsection(2) of this section.
(c)Pledge or assign all or part of the revenues of one or more eligible projectsowned or to be acquired by the state to the holders of bonds issued under thischapter or to a trustee for the holders, and segregate the revenues or providefor payment of the revenues to the trustee.
(d)Mortgage or otherwise encumber eligible projects in favor of the holders ofbonds issued under this chapter or a trustee for the holders without obligatingthe state except with respect to the project.
(e)Make contracts, execute instruments and do what is necessary or desirable toexercise the powers granted by this chapter, to perform the covenants or dutiesof this state or to secure the payment of bonds issued under this chapter.Contracts that may be made by the state include contracts entered into prior toconstruction, acquisition or installation of an eligible project thatauthorize, subject to terms and conditions the state finds necessary ordesirable, a lessee to provide for construction, acquisition or installation ofbuildings, improvements or equipment to be included in the project.
(f)Enter into and perform contracts and agreements with participating institutionsfor the planning, construction, installation, acquisition, leasing or financingof facilities of an eligible project, including a contract or agreement thatestablishes a body for the supervision and general management of thefacilities.
(g)Accept loans or grants for the planning, construction, installation, acquisition,leasing or other provision of an eligible project from an authorized agency ofthe federal government, and enter into agreements with the agency respectingthe loans or grants.
(2)A lease or sublease entered into under subsection (1)(b) of this section mustprovide that:
(a)Rents charged for the use of the project are established and revised asnecessary to produce sufficient revenue to allow for payment of the principalof and interest on bonds issued under this chapter when due; and
(b)The lessee or sublessee is required to pay:
(A)The expenses of the operation and maintenance of the project including, but notlimited to, adequate insurance on the project and insurance against liabilityfor injury to persons or property arising from the operation of the project;and
(B)The taxes and special assessments levied upon the leased or subleased premisesand payable during the term of the lease or sublease.
(3)During the term of a lease or sublease entered into under subsection (1)(b) ofthis section, ad valorem taxes must be imposed on the real and personalproperty of the eligible project in the same manner as the taxes would beimposed if the lessee or sublessee were the owner of the eligible project. [1989c.820 §6; 2005 c.22 §212; 2007 c.785 §4]
289.115Functions.In carrying out its duties under this chapter, the Oregon Facilities Authority,acting for and in behalf of the state as its duly authorized agency, may:
(1)Acquire, construct and hold in whole or in part any lands, buildings, easements,water and air rights, improvements to lands and buildings and capital equipmentto be located permanently or used exclusively on such lands or in suchbuildings, which are considered necessary in connection with an eligibleproject to be situated within this state, and construct, reconstruct, improve,better and extend such projects, and enter into contracts therefor; and
(2)Sell and convey all properties acquired in connection with eligible projects,including without limitation the sale and conveyance thereof subject to anymortgage and the sale and conveyance thereof under an option granted to thelessee of the eligible project, for such price, and at such time as the statemay determine. However, no sale or conveyance of such properties shall ever bemade in such manner as to impair the rights of interests of the holder, orholders, or any bonds issued under the authority of this chapter. [1989 c.820 §7;1991 c.408 §3]
289.120Limitation on manner of operating project and expenditure of funds. Except asprovided in ORS 289.115 (2), the state shall not have power to operate anyeligible project as a business or in any manner whatsoever. Nothing in thischapter authorizes the state to expend any funds on any eligible project, otherthan the revenues of such projects, or the proceeds of revenue bonds issuedunder this chapter, or other funds granted to the state for the purposes of aneligible project. [1989 c.820 §8]
289.125Rules; fees.(1) The Oregon Facilities Authority shall adopt by rule standards by which todetermine the eligibility of projects for bond financing pursuant to thischapter. In determining the standards, the authority shall consider allrelevant data. The standards of the authority must provide that projects areapproved in accordance with criteria reflecting the benefits to the state.Criteria include, but need not be limited to:
(a)Supporting projects that increase the number of decent, affordable housingunits in this state;
(b)Expanding the educational resources in this state; or
(c)Expanding the cultural resources in this state.
(2)Upon determining a project as eligible, the authority shall forward theapplication to the State Treasurer, who shall determine whether to issue therevenue bonds.
(3)The authority may treat as a single eligible project for bonding purposes anynumber of projects determined to be eligible projects.
(4)The authority shall collect the fees set forth in subsection (5) of thissection from an applicant that seeks to have a project declared eligible forfinancing. The fee identified in subsection (5)(a) of this section may becollected even though the project has not been determined to be eligible forfinancing.
(5)The fees described in subsection (4) of this section are:
(a)An application fee determined by the Oregon Facilities Authority by rule.
(b)A closing fee not to exceed one-half of one percent of the total bond issue forthe project, as determined by the authority.
(6)The authority shall deposit fees received under subsection (5) of this sectionin the Oregon Facilities Authority Account established under ORS 289.130. [1989c.820 §4; 1991 c.408 §4; 2007 c.785 §5]
289.130Oregon Facilities Authority Account. The Oregon Facilities Authority Accountis created separate and distinct from the General Fund. The account is aninvestment account for purposes of ORS 293.701 to 293.820. Interest on theaccount shall be credited to and deposited in the account. The account iscontinuously appropriated to the Oregon Facilities Authority and may be used tomeet administrative expenses of the authority. [1989 c.820 §4a; 1991 c.408 §5;2001 c.261 §2]
BONDS
289.200Issuance of revenue bonds; role of State Treasurer; role of Oregon FacilitiesAuthority; fees.(1) If the State Treasurer determines that revenue bonds should be issued:
(a)The State Treasurer may authorize and issue in the name of the State of Oregonrevenue bonds secured by revenues from eligible projects to finance orrefinance in whole or part the cost of acquisition, purchase, construction,reconstruction, installations improvement, betterment or extension of projects.The bonds shall be identified by project and issued in the manner prescribed byORS chapter 286A.
(b)The State Treasurer shall designate the trustee, financial advisor and bondcounsel, if any, and enter into appropriate agreements with each to carry outthe provisions of this chapter. An agreement with bond counsel designated bythe State Treasurer under this section is subject to the provisions related toservices provided by bond counsel under ORS 286A.130. The powers conferred on arelated agency under ORS chapter 286A do not apply to the Oregon FacilitiesAuthority with respect to the designation of trustee, financial advisor andbond counsel.
(2)Any trustee designated by the State Treasurer to carry out all or part of thepowers specified in ORS 289.110 must agree to furnish financial statements andaudit reports for each bond issue.
(3)The State Treasurer shall be the applicable elected representative for purposesof approving the issuance of revenue bonds under this chapter as to the extentsuch approval is required under section 147(f) of the Internal Revenue Code.
(4)The State Treasurer shall collect data from the authority regarding the amountand nature of bonded indebtedness in Oregon health care institutions financedthrough the authority. [1989 c.820 §9; 1991 c.408 §6; 1995 c.727 §14; 2001c.536 §8; 2007 c.783 §114]
289.205Expenses of State Treasurer. Reasonable administrative expenses of theState Treasurer shall be charged against bond proceeds or project revenues. [1989c.820 §10; 2007 c.783 §115]
289.210Refunding bonds.The State Treasurer shall have the power, whenever the treasurer considersrefunding expedient, to refund any bonds by the issuance of new bonds, whetherthe bonds to be refunded have or have not matured. The refunding bonds may beexchanged for bonds to be refunded and the proceeds applied to the purchase,redemption or payment of such bonds. [1989 c.820 §11]
289.215Validity of bonds not affected by other matters regarding facility. The validity ofbonds issued under this chapter shall not be dependent on nor be affected bythe validity or regularity of any proceeding relating to the acquisition,purchase, construction, reconstruction, installation, improvement, bettermentor extension of the project for which the bonds are issued. The official actionauthorizing such bonds may provide that the bonds shall contain a recital thatthey are issued pursuant to this chapter and such recital shall be conclusiveevidence of their validity and of the regularity of their issuance. [1989 c.820§12]
289.220Covenants regarding bond issuance. The official action authorizing theissuance of bonds under this chapter to finance or refinance in whole or inpart, the acquisition, purchase, construction, reconstruction, installation,improvement, betterment or extension of any project may contain covenants,notwithstanding that such covenants may limit the exercises of powers conferredby this chapter in the following respects and in such other respects as thestate, acting through the State Treasurer, or the designee of the treasurer maydecide:
(1)The rents to be charged for the use of properties acquired, purchased,constructed, reconstructed, installed, improved, bettered or extended under theauthority of this chapter;
(2)The use and disposition of the revenues of such projects;
(3)The creation and maintenance of sinking funds and the regulation, use anddisposition thereof;
(4)The creation and maintenance of funds to provide for maintaining the eligibleproject and replacement of properties depreciated, damaged, destroyed orcondemned;
(5)The purpose or purposes to which the proceeds of sale of bonds may be appliedand the use and disposition of such proceeds;
(6)The nature of mortgages or other encumbrances on the eligible project made infavor of the holder or holders of such bonds or a trustee therefor;
(7)The events of default and the rights and liabilities arising thereon and theterms and conditions upon which the holders of any bonds may bring any suit oraction on such bonds or on any coupons appurtenant thereto;
(8)The issuance of other or additional bonds or instruments payable from orconstituting a charge against the revenue of the eligible project;
(9)The insurance to be carried upon the eligible project and the use anddisposition of insurance moneys;
(10)The keeping of books of account and the inspection and audit thereof;
(11)The terms and conditions upon which any or all of th
