ORS 295.205 Accounts in financial institutions outside Oregon; conditions; rules

Notwithstanding any other law:

The State Treasurer may establish demand deposit accounts in financial institutions outside this state for the purpose of accepting deposits of funds related to state investments in the geographical areas that the financial institutions serve.

Moneys that a financial institution or other entity receives or collects under an agreement to provide loan servicing for a state agency or public body may be deposited in accounts in financial institutions outside this state for the purpose of:

Accepting payments of loan principal and interest;

Accepting and holding escrow funds;

Accepting and holding funds required to be held in reserve with or on behalf of the state agency or public body; or

Collecting and holding other moneys the financial institution must collect and hold for loan servicing under the agreement before remitting the moneys to the state agency, public body or a third party.

Public funds held by a trustee or escrow agent pursuant to a trust agreement, bond indenture, certificate of participation indenture, escrow agreement or similar agreement with a state agency or public body may be deposited in accounts in financial institutions outside this state.

The State Treasurer shall establish the demand deposit accounts described in subsection (1)(a) of this section in accordance with rules adopted pursuant to ORS 183.310 to 183.410 that ensure that reasonable and prudent measures are taken to protect state investment funds from loss.

When accounts are established for a state agency or public body under subsection (1)(b) or (c) of this section, the state agency or public body shall require in the relevant agreement or indenture that reasonable and prudent measures are taken to protect the moneys in the accounts from loss.

As used in this section, the terms “financial institution outside this state” and “public body” have the meanings given those terms in ORS 295.001.