(1) Except as otherwise provided in ORS § 451.410 to 451.610, all moneys received by a district shall be paid to the county treasurer and deposited by the county treasurer in an appropriate district fund. The county treasurer, when ordered by a district governing body, shall establish separate accounts in the district fund or separate funds in the county treasury for the segregation of sinking or reserve funds or accounts, of operating funds or accounts or of any other funds or accounts found necessary or expedient by the district. However, no moneys received by a district shall be used for any purpose other than for carrying out the purposes of ORS § 451.410 to 451.610 and all funds, facilities, personnel or supplies of the county used for those purposes shall be charged to the appropriate district fund or account.

(2) Notwithstanding the requirement for a district to pay district moneys to the county treasurer for deposit in an appropriate district fund in the county treasury under subsection (1) of this section, the governing body of a county, with the consent of the county treasurer if the county treasurer is an elected county officer, may order a service district established under ORS § 451.410 to 451.610 to hold and manage its own moneys in one or more district funds or accounts deposited in a financial institution as defined in ORS § 706.008. The order must provide for transfer of any moneys of the district then held or later received by the county treasurer for the district. Thereafter, the district shall be solely responsible for management of moneys of the district and shall designate a district officer or employee to assume the duties and responsibilities otherwise imposed upon the county treasurer.

(3) Moneys deposited by the district in a district fund or account may be withdrawn or paid out only upon a proper order and warrant or upon a check signed by the district officer or employee designated to assume the duties and responsibilities otherwise imposed upon the county treasurer. The order must:

(a) Specify the name of the person to whom the moneys are to be paid;

(b) Specify the fund or account from which the moneys are to be paid;

(c) State generally the purpose for which the moneys are to be paid; and

(d) Be entered in the record of proceedings of the district. [1955 c.685 § 18; 1963 c.515 § 21c; 1973 c.785 § 28; 2003 c.335 § 1]