Oregon Administrative Rules
Chapter 122 - DEPARTMENT OF ADMINISTRATIVE SERVICES, CHIEF FINANCIAL OFFICE
Division 70 - STATE OF OREGON FINANCING AGREEMENTS
Section 122-070-0150 - Management of Proceeds

(1) All proceeds from Financing Agreements must be separately accounted for and held in separately designated accounts in the Oregon State Treasury or with an independent trustee. The Benefiting Agency and the Department shall exchange information to ensure that the proceeds are spent only on lawfully authorized expenditures and, if funded with a Tax-advantaged Financing Agreement, are in compliance with any provision of the Internal Revenue Code and applicable regulations. The Benefiting Agency shall consult with the Department and follow its directives with respect to appropriate accounting and record keeping for such expenditures.

(2) Any reserve account equal to the maximum allowable reserve authorized in the Internal Revenue Code at the time Certifications of Participation are issued will be held by an independent trustee. Interest earnings on the reserve will be used to pay debt service on the certificates, after the payment of any arbitrage earnings payable under the Internal Revenue Code, when due.

(3) The Department will not disburse to a local government or other public body the proceeds of any Financing Agreement(s) entered into for the purposes of infrastructure described in ORS 283.085(4)(a)(B) or (C) until the recipient of the proceeds has entered into an agreement with the State of Oregon that is in form and substance satisfactory to the Director regarding the deposit and expenditure of the proceeds, nature and use of the project(s) to be financed with the proceeds and, if applicable, compliance with provisions of the Internal Revenue Code and procedures necessary to maintain the Tax-advantaged status of the Financing Agreement from which the proceeds were derived.