Oregon Statutes 287A.310 – Definitions for ORS 287A.310 and 287A.315; lien of a pledge; Uniform Commercial Code
(1) As used in this section and ORS § 287A.315:
Terms Used In Oregon Statutes 287A.310
- Agreement for exchange of interest rates: means a contract, or an option or forward commitment to enter into a contract, for an exchange of interest rates for related bonds that provides for:
(a) Payments based on levels or changes in interest rates; or
(b) Provisions to hedge payment, rate, spread or similar exposure including, but not limited to, an interest rate floor or cap or an option, put or call. See Oregon Statutes 287A.001
- Bond: means a contractual undertaking or instrument of a public body to repay borrowed moneys. See Oregon Statutes 287A.001
- Contract: A legal written agreement that becomes binding when signed.
- Credit enhancement device: means a letter of credit, line of credit, standby bond purchase agreement, bond insurance policy, reserve surety bond or other device or facility used to enhance the creditworthiness, liquidity or marketability of bonds or agreements for exchange of interest rates. See Oregon Statutes 287A.001
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Operative document: means a bond declaration, trust agreement, indenture, security agreement or other document in which a public body pledges revenue or property as security for a bond. See Oregon Statutes 287A.001
- Personal property: All property that is not real property.
- public body: means state government bodies, local government bodies and special government bodies. See Oregon Statutes 174.109
- Statute: A law passed by a legislature.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(a) ‘Obligation’ means:
(A) A bond;
(B) The commitment of a public body in connection with a credit enhancement device; or
(C) An agreement for exchange of interest rates.
(b) ‘Property’ means:
(A) Real or personal property, tangible or intangible, whether owned when a pledge is made or acquired subsequently to the time the pledge is made; and
(B) Revenues, contract rights, receivables or securities.
(2) The Uniform Commercial Code does not apply to the creation, perfection, priority or enforcement of a lien of a pledge made by a public body.
(3) When otherwise authorized by statute, charter, ordinance or resolution to issue bonds, a public body may pledge as security for payment of obligations all or part of the property of the public body expressly authorized to be pledged by the governing body of the public body.
(4) The lien created by a pledge is valid and binding from the time the pledge is made. Pledged property is subject immediately to the lien of the pledge without physical delivery, filing or any other act.
(5) Except as otherwise expressly provided in an operative document, the lien of the pledge is superior to and has priority over all other claims and liens.
(6) When property subject to a pledge is acquired by a public body after the pledge is made:
(a) The property is subject to the lien upon acquisition by the public body without physical delivery, filing or any other act.
(b) The lien relates to the time the pledge was originally made.
(7) A public body may reserve a right to pledge a pledged property as security for bonds subsequently issued by the public body. If the public body reserves the right, subject to the terms of the operative document that created a previous pledge, the lien of the subsequent pledge may be on a parity or pari passu basis with the lien of the previous pledge, on a prior and superior basis with the lien of the previous pledge or on a subordinate basis with the lien of the previous pledge, as specified in the operative document creating the subsequent pledge. The lien of the subsequent pledge:
(a) Has the priority specified in the operative document creating the subsequent pledge; and
(b) Is superior to and has priority over all other claims and liens except the lien of a pledge with which the lien of the subsequent pledge is on a parity or subordinate basis, as specified in the operative document.
(8) A pledgee may commence an action in a court of competent jurisdiction to foreclose the lien of the pledge and exercise rights and remedies available to the pledgee under the operative document.
(9) When pledged property consists of moneys or property that is in a fund for debt service reserves or payments, a pledgee may foreclose the lien of the pledge by applying the moneys or property in the fund to the payment of the bonds subject to the terms, conditions and limitations in the operative document. [2007 c.783 § 50]