(1)(a) Throughout the period that a qualified depository possesses uninsured public funds deposits, the State Treasurer may require the depository to maintain collateral, including securities on deposit with the depository’s custodians, that has a value not less than 110 percent of the greater of:

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(A) All uninsured public funds the qualified depository holds; or

(B) The average of the balances of uninsured public funds the qualified depository holds, as shown on the last two immediately preceding treasurer reports.

(b) In consultation with the Director of the Department of Consumer and Business Services, the State Treasurer may permit a qualified depository to increase the depository’s collateral as required under paragraph (a) of this subsection over a period of time the State Treasurer specifies or may require a qualified depository to increase the depository’s collateral to an amount that is less than the amount specified in paragraph (a) of this subsection.

(2) The State Treasurer shall order an increase in collateral under subsection (1) of this section if the director so advises. If the qualified depository is a national bank, a federally chartered savings bank, a savings and loan association or a federal credit union, in giving advice to the State Treasurer the director may rely exclusively on information that the federal regulatory agencies and the bank, savings bank, association or federal credit union provide to the director on forms the director prescribes. As a condition of being analyzed and reviewed by the director, a national bank, a federally chartered savings bank, a savings and loan association or a federal credit union shall agree and consent to provide the director with accurate, pertinent and timely information.

(3) If the State Treasurer orders a qualified depository to increase the depository’s collateral under subsection (1) of this section, the State Treasurer shall give notice of the order to the director and the depository’s custodians within one business day after issuing the order.

(4) The director’s failure to inform the State Treasurer of the condition of any qualified depository does not give a public depositor any right or impose liability on the director. The State Treasurer is not liable to a public depositor or to a qualified depository for increasing or not increasing the collateral requirement as authorized in subsection (1) of this section.

(5) A qualified depository that the State Treasurer notifies of the increased collateral requirement shall:

(a) Within three business days after receiving the notice, submit to the State Treasurer the qualified depository’s plan to increase the depository’s collateral to the level the State Treasurer requires under subsection (1) of this section; and

(b) Within five business days after receiving approval of the plan the qualified depository submitted under paragraph (a) of this subsection, or within a longer period approved by the State Treasurer in coordination with the Department of Consumer and Business Services, increase the depository’s collateral to the level the State Treasurer requires under subsection (1) of this section.

(6)(a) If the qualified depository does not increase the depository’s collateral to the level the State Treasurer requires under subsection (1) of this section within the applicable period under subsection (5)(b) of this section, the State Treasurer shall immediately send, to each public official who has notified the State Treasurer that the public official has public funds on deposit in that depository, notice that the depository has failed to comply.

(b) If, after giving notice as required by paragraph (a) of this subsection, the State Treasurer receives notice that the qualified depository has complied with the increased collateral requirements, the State Treasurer shall notify each public official that the State Treasurer notified under paragraph (a) of this subsection that the depository has complied.

(7) A qualified depository that does not comply with subsection (5) of this section may not accept additional uninsured public funds deposits.

(8) Records the State Treasurer receives or compiles that contain the collateralization requirement for a depository and the amount of collateral a custodian holds are exempt from public disclosure unless the public interest requires disclosure in the particular instance.

(9) The State Treasurer may require a qualified depository that must increase the depository’s collateral under subsection (5) of this section to file the reports required under ORS § 295.061 (3). [1975 c.515 § 2; 1981 c.440 § 1; 1985 c.762 § 182; 1987 c.373 28a,28b; 1987 c.554 § 1; 1989 c.171 § 41; 1991 c.327 § 1; 2007 c.871 § 18; 2009 c.821 § 7; 2010 c.101 § 8; 2017 c.500 § 4; 2019 c.587 § 11]

[Repealed by 1967 c.451 § 32]