Limitations on aggregate uninsured public funds deposits; notice; exceptions.

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(a) 100 percent of the value of the qualified depository’s net worth, if the depository is an undercapitalized depository;

(b) 150 percent of the value of the qualified depository’s net worth, if the depository is an adequately capitalized depository;

(c) 200 percent of the value of the qualified depository’s net worth, if the depository is a well capitalized depository;

(d) For a qualified depository that is a bank, 30 percent of the total aggregate uninsured public funds deposits of all public officials in all qualified depositories that are banks as reported in the most recent notice the depository received from the State Treasurer; or

(e) For a qualified depository that is a credit union, 30 percent of the total aggregate uninsured public funds deposits of all public officials in all qualified depositories that are credit unions as reported in the most recent notice the depository received from the State Treasurer.

(2) The State Treasurer shall notify each qualified depository, or the depository’s custodian if required by an individual pledge agreement or by rule, of the total aggregate uninsured public funds deposits of all public officials in all qualified depositories, based on the most recently submitted treasurer reports. The State Treasurer shall give the notification required by this subsection by the last day of the month in which the depositories are required to submit a treasurer report.

(3) If a qualified depository’s aggregate of uninsured public funds deposits exceeds the amount set forth in subsection (1) of this section, the depository shall, within three business days after receiving notice from the State Treasurer, cease accepting deposits of uninsured public funds.

(4) Notwithstanding subsections (1) and (3) of this section:

(a) A qualified depository may accept and hold uninsured public funds deposits in excess of the limits specified in subsection (1) of this section if the State Treasurer, upon good cause shown, approves the depository’s request to hold uninsured public funds in excess of the limits specified in subsection (1) of this section for a period not exceeding 90 days and eligible collateral is provided in an amount at least equal to the amount by which the uninsured public funds deposits exceed the limits specified in subsection (1) of this section. Upon the expiration of the 90-day period, if the depository does not comply with the limits specified in subsection (1) of this section, the depository shall, within three business days after receiving notice from the State Treasurer, cease accepting deposits of public funds.

(b) The limits specified in subsection (1) of this section do not apply to public funds deposits a qualified depository holds in a certificate of deposit, time deposit or insured deposit account under ORS 295.004.

(c) A well capitalized qualified depository or an adequately capitalized qualified depository may accept and hold uninsured public funds deposits that exceed the limit specified in subsection (1)(d) or (e) of this section if eligible collateral is provided in an amount at least equal to the amount by which the uninsured public funds deposits exceed the limit specified in subsection (1)(d) or (e) of this section.

(5) If the State Treasurer notifies a qualified depository that the depository must cease accepting deposits of public funds under subsection (3) or (4) of this section, the State Treasurer may also notify public officials who have deposited public funds in the depository that within 15 business days after the public official receives the notice from the State Treasurer, the public official must withdraw from the depository to which the notice applies all public funds deposits that exceed the limit specified in subsection (1)(d) or (e) of this section. A public official who is notified by the State Treasurer under this subsection must begin to withdraw funds as specified in the notice. Except as required by any applicable law or regulation, a qualified depository may not impose an early withdrawal penalty or a forfeiture of interest with respect to a withdrawal made pursuant to this subsection. [2007 c.871 §11; 2009 c.821 §13; 2010 c.101 §16; 2011 c.25 §§1,2; 2011 c.477 §§7,8; 2011 c.667 §§3,4; 2017 c.17 §26; 2017 c.500 §6; 2019 c.587 §20]


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