Oregon Statutes 286A.145 – Federal taxation of bond interest; interest rate subsidies; rules
(1) The State Treasurer or a related agency may enter into covenants for the benefit of owners of bonds that are intended to allow the bonds to bear interest that is excluded from gross income under the federal Internal Revenue Code or that is otherwise exempt from taxation by the United States. The State Treasurer or a related agency may adopt rules or procedures that are intended to facilitate compliance with those covenants, and may take any action that is required to comply with those covenants. Covenants authorized by this subsection include, but are not limited to, covenants to:
Terms Used In Oregon Statutes 286A.145
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Related agency: means the state agency that requests the State Treasurer to issue bonds pursuant to ORS § 286A. See Oregon Statutes 286A.001
- Revenue: means all fees, tolls, excise taxes, assessments, property taxes and other taxes, rates, charges, rentals and other income or receipts derived by a state agency or to which a state agency is entitled. See Oregon Statutes 286A.001
- United States: includes territories, outlying possessions and the District of Columbia. See Oregon Statutes 174.100
(a) Pay any rebates of earnings or penalties to the United States;
(b) Invest proceeds alone or in combination with other moneys in investments that have different maturities, yields or credit qualities than the state would acquire under the investment standards specified in ORS § 293.721 and 293.726 and other similar laws, but only if those investments facilitate compliance with covenants described in this subsection; or
(c) Restrict the expenditure of bond proceeds or restrict the operation of, or otherwise limit the use of, facilities that are financed with bonds.
(2) When the State of Oregon receives interest rate subsidies from the United States in connection with bonds, the State Treasurer or the related agency, to the extent permitted by federal law, may:
(a) Apply the subsidies to pay bonds of the related agency and credit the subsidies to an account that is used to pay bonds of the related agency;
(b) Pledge the subsidies to secure bonds of the related agency; or
(c) Use the subsidies to pay costs that would otherwise be paid with proceeds of bonds of the related agency and credit the subsidies to accounts that are used to pay the costs. [2007 c.783 § 23; 2010 c.3 § 6]