ORS 328.331: Certificate evidencing qualification for state guaranty; conditions and standards for qualification; rules.

(1) Any school district may request that the State Treasurer issue a certificate evidencing qualification of its school bonds for the state guaranty. (2) The State Treasurer may, in accordance with ORS chapter 183, adopt and enforce rules that prescribe procedures for school district applications to qualify for the certificate of qualification and state guaranty and rules that prescribe the conditions and standards a school district must meet to qualify and to maintain qualification. The State Treasurer, by rule, may establish, but shall not be limited to: (a) A requirement that a school district pay a processing fee, sufficient to defray the State Treasurer’s costs in processing and verifying applications, for each application and each application for annual renewal of a certificate of qualification. (b) Deadlines or application periods in which school districts must submit applications. (c) The character, quality and currency of the information on the financial affairs and condition of a school district that must be submitted for a school district’s application to be considered. (d) The form and character of any certifications or affidavits required of officials of the applying school districts concerning the accuracy and completeness of the information provided in conjunction with the district’s application. (e) Any other matters necessary to making reliable assessments of the fiscal and financial affairs and condition of applying school districts. (f) Requirements related to additional conditions the school district must meet, which may include requiring a pledge of school district revenues or the grant of a security in other assets of the school district, to assure the State Treasurer that the school district will be able to fully reimburse the state for amounts transferred by the State Treasurer and any interest or penalties applicable to the transferred amounts. (g) The manner of designating the particular school bonds to which the State Treasurer’s certificate of qualification and the state guaranty applies. (h) Subject to Article XI-K of the Oregon Constitution, reasonable limitations on: (A) The total aggregate outstanding amount of all school bonds the state may guarantee; and (B) The outstanding amount of the school bonds of any single school district the state may guarantee. (i) The method of providing notice of denial of a certificate of qualification. (j) The method of providing notice of disqualification to school districts that fail to qualify or for which changes in financial affairs or condition or failure to provide the State Treasurer current or updated information warrant disqualification of the school district. (k) Requirements for promptly reporting to the State Treasurer any changes in condition or occurrences that may affect a school district’s eligibility to qualify or maintain its qualification to participate in the state guaranty program. (3)(a) After reviewing the request, if the State Treasurer determines that the school district is eligible, the State Treasurer shall promptly issue the certificate of qualification and provide it to the requesting school district. (b)(A) Unless the certificate of qualification is revoked by the State Treasurer, and subject to the fulfillment of any conditions or requirements imposed by the State Treasurer, the school district receiving the certificate and all other persons may rely on the certificate as evidencing eligibility for the state guaranty for one year from and after the date of the certificate. (B) A revocation of a certificate of qualification does not affect the state guaranty of any outstanding school bonds previously issued under a valid certificate. (4) Any qualified school district that chooses to forgo the benefits of the state guaranty for a particular issue of school bonds may do so by not referring to ORS 328.321 to 328.356 on the face of its school bonds. (5) A school district that has school bonds, the principal of or interest on which has been paid in whole or in part by the state under ORS 328.341, is not eligible to issue any additional school bonds with the state guaranty until: (a) All payment obligations of the school district to the state under ORS 328.346 are satisfied; and (b) The State Treasurer certifies in a writing, to be kept on file by the State Treasurer, that the school district is fiscally solvent. [1997 c.614 §4; 1999 c.251 §3; 2013 c.722 §76]