(1) A public body may obtain a credit enhancement device and enter into related agreements.

Terms Used In Oregon Statutes 287A.340

  • Bond: means a contractual undertaking or instrument of a public body to repay borrowed moneys. See Oregon Statutes 287A.001
  • Credit enhancement device: means a letter of credit, line of credit, standby bond purchase agreement, bond insurance policy, reserve surety bond or other device or facility used to enhance the creditworthiness, liquidity or marketability of bonds or agreements for exchange of interest rates. See Oregon Statutes 287A.001
  • public body: means state government bodies, local government bodies and special government bodies. See Oregon Statutes 174.109

(2) The public body may pay the provider of the credit enhancement device from the same sources that the public body may lawfully use to pay the related bonds or from any other legally available source.

(3) The public body may issue a bond to the provider of a credit enhancement device to secure the obligations of the public body or to pay amounts due to the provider. [2007 c.783 § 52]