ORS 294.145 Prohibited conduct for custodial officer

In making investments pursuant to ORS 294.035, the custodial officer may not:

Make a commitment to invest funds or sell securities more than 14 business days prior to the anticipated date of settlement of the purchase or sale transaction;

Enter into any agreement to invest funds or sell securities for future delivery for a fee other than interest;

Lend securities to any person or institution, except:

On a fully collateralized basis; and

When the lending is specifically permitted under an investment policy adopted pursuant to ORS 294.135 (1)(a);

Pay for any securities purchased by the custodial officer until the officer has received sufficient evidence of title to the securities. Evidence of title must be consistent with modern investment, banking and commercial practices and may include physical possession, book entry and automated recordation of such title. However, the custodial officer may instruct one or more custodial agents or banks to accept or release securities as that custodial officer considers advisable to be held in safekeeping for collection of principal and interest or other income; or

Deliver securities to the purchaser of the securities upon sale prior to receiving payment in full for the securities. However, the custodial officer may deliver the securities to any custodial agent or bank upon instructions to hold the securities pending receipt by the custodial agent or bank of full payment for the securities.