ORS 352.408 Issuance of bonds by public universities; use and limitations of security interests; character of bonds and obligations

(1)

A public university listed in ORS 352.002:

(a)

May issue revenue bonds for any lawful purpose of the university in accordance with ORS chapter 287A.

(b)

May issue under ORS 287A.360 to 287A.380 refunding bonds of the same character and tenor as the revenue bonds replaced.

(2)

For the purposes of ORS 271.390 and ORS chapter 287A, a public university listed in ORS 352.002 is a public body.

(3)

ORS 287A.150 does not apply to revenue bonds issued by a public university listed in ORS 352.002.

(4)

A public university listed in ORS 352.002:

(a)

May grant leases of real property held by a trustee or lender for a term that ends on the date on which all amounts due under the operative documents have been paid, or provision for payment has been made, or for a term of up to 20 years after the last scheduled payment under the operative documents, whichever is sooner. The leases may grant the trustee or lender the right to evict the university and exclude the university from possession of the real property for the term of the lease if the university fails to pay when due the amounts scheduled to be paid under the operative documents or otherwise defaults under the operative documents. Upon default, the trustee or lender may sublease the real property to third parties and apply any rents to payments scheduled to be made under the operative documents.

(b)

May not mortgage, pledge or grant a security interest in, or otherwise encumber, real or personal property that has been pledged or leased to provide security for, or acquired, constructed, improved with, or otherwise directly benefited by, the proceeds of outstanding state bonds, except as provided in ORS 352.113 (4).

(5)

Revenue bonds and other obligations authorized by this section:

(a)

Are revenue bonds or obligations of a political subdivision of the State of Oregon.

(b)

Are not an indebtedness or obligation of the State of Oregon and are not a charge upon revenue or property of the State of Oregon, except as provided in subsection (4) of this section.

(c)

Are not a charge upon any revenue or property of a public university listed in ORS 352.002 unless the revenue or property is pledged to secure the revenue bonds or other obligations.

(d)

Are not payable from, and may not be secured by a pledge of or lien on, any amounts a public university is required to:

(A)

Deposit with the State Treasurer pursuant to ORS 352.135 (2); or

(B)

Pay to the State Treasurer pursuant to a schedule described in ORS 352.415.

Note: Definitions in ORS 352.029 also apply to ORS 352.388 to 352.415.