(1) The investment officer shall seek to obtain a competitive return on investments of the investment pool subject to the standards set forth in ORS § 294.835 and consistent with the liquidity requirements demanded by the short term nature of local government and tribal government deposits in the pool.

(2) The investment officer shall at all times hold investments which mature in three years or less, in an amount not less than an amount equal to the aggregate of all funds placed with the investment officer by local governments and tribal governments under ORS § 294.805 to 294.895, which investments shall be from the funds defined in ORS § 293.701 (2)(o).

(3) Notwithstanding subsection (2) of this section, the investment officer may purchase legally issued general obligations of the United States and of the agencies and instrumentalities of the United States if the seller of the obligations agrees to repurchase the obligations within 90 days following the date on which the investment officer makes the investment. The price paid by the investment officer for such obligations may not exceed amounts or percentages prescribed by written policy of the Oregon Investment Council or the Oregon Short Term Fund Board created by ORS § 294.885.

(4) Investments and commitments of the investment pool which do not conform to the quality or maturity requirements set forth in ORS § 294.805 to 294.895 shall be liquidated by the investment officer once the market value of such investments and commitments reaches book value, or as soon as is practicable thereafter. [1979 c.608 § 3 (enacted in lieu of 294.830); 1981 c.880 § 16; 1987 c.381 § 3; 1993 c.18 § 61; 1995 c.40 § 1; 2009 c.541 § 14; 2013 c.338 § 5]