Oregon Statutes 287A.315 – Pledge of full faith and credit and taxing power
(1) A public body may pledge its full faith and credit and taxing power when the public body issues:
Terms Used In Oregon Statutes 287A.315
- 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.
- Lawfully available funds: means revenues or other moneys of a public body including, but not limited to, moneys credited to the general fund of the public body, revenues from an ad valorem tax and revenues derived from other taxes levied by the public body that are not dedicated, restricted or obligated by law or contract to an inconsistent expenditure or use. See Oregon Statutes 287A.001
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- public body: means state government bodies, local government bodies and special government bodies. See Oregon Statutes 174.109
- Trustee: A person or institution holding and administering property in trust.
(a) A general obligation bond; or
(b) An obligation that is secured by all lawfully available funds of the public body.
(2) When a public body pledges its full faith and credit and taxing power to pay an obligation, the pledge constitutes an enforceable promise or contract by the public body:
(a) To pay the obligation out of lawfully available funds of the public body; and
(b) If lawfully available funds are insufficient to pay when due the amounts owing on the obligation, to levy, impose and collect a tax that is within the authority of the public body to levy, impose and collect in an amount sufficient to pay the amounts owing under the obligation, including past due amounts and penalties.
(3) If a public body fails to pay when due an amount owing under an obligation secured by a pledge of the full faith and credit and taxing power of the public body, the owner of the obligation, or the trustee appointed to act on behalf of the owner, may bring an action in the circuit court of the county in which the principal offices of the public body are located to compel the public body:
(a) To appropriate and expend sufficient lawfully available funds to pay the amounts owing on the obligation; or
(b) If lawfully available funds are insufficient to pay when due the amounts owing on the obligation, to levy, impose and collect a tax that is within the authority of the public body to levy, impose and collect in an amount sufficient to pay the amounts owing under the obligation, including past due amounts and penalties.
(4) An owner of the obligation, or a trustee appointed to act on behalf of the owner, may initiate a proceeding to impose remedial sanctions under ORS § 33.055 against members of the governing body of a public body for failure to comply with an order of the court under this section.
(5) A pledge of the full faith and credit and taxing power authorized by this section does not, by itself, create a lien on the revenues or property of the public body. [2007 c.783 § 50a]