(1) Any loan of moneys to a municipality by the state shall include a plan for repayment by the municipality of moneys borrowed from the Water Fund for a water project and interest on those moneys at a rate expressly specified. The repayment plan:
(a) Shall provide for evidence of debt assurance of, and security for, repayment by the municipality as is considered necessary by the Economic and Community Development Department.
(b) May set forth the allocation of special assessments or contractual responsibilities among the owners of benefited properties for repayment to the municipality of the amount of the loan.
(c) May not exceed the usable life of the contracted project or 25 years from the year of project completion, whichever is less.
(2) Notwithstanding any other provision of law or any restriction on indebtedness contained in a charter, a municipality may borrow from the fund by entering into a loan contract with the Economic and Community Development Department. The contract may be repaid from:
(a) The revenues of any water project, including special assessment revenues;
(b) Amounts withheld under ORS 285B.599;
(c) The general fund of the municipality; or
(d) Any other source.
(3) A loan contract authorized under subsection (2) of this section may provide that a portion of the proceeds of the loan be applied to fund a reserve fund to secure the repayment of the loan or secure the repayment of revenue bonds issued to fund the loan.
(4) A loan contract authorized under subsection (2) of this section shall be authorized by an ordinance, order or resolution adopted by the governing body of the municipality. [Formerly 285.956; 2001 c.883 §39; 2005 c.835 §22]
Section: Previous 285B.560 285B.563 285B.566 285B.569 285B.572 285B.575 285B.578 285B.581 285B.584 285B.587 285B.590 285B.593 285B.596 285B.599 285B.650 NextLast modified: August 7, 2008