(1) If a court of competent jurisdiction determines that the proceeds of an issue of general obligation bonds have been used by a public body for expenditures that are not capital construction or capital improvements, the court may order the public body to:
(a) Replace the misspent proceeds with interest, on a reasonable schedule determined by the court, from moneys other than the tax revenues that the public body levies to pay the debt service; and
(b) Use the replaced moneys for capital construction or capital improvement expenditures or to pay the debt service.
(2) If the public body fails to comply with an order to replace the misspent proceeds or acknowledges that the public body is unable to replace the misspent proceeds, the court may determine that a portion of the future levies to pay the debt service is subject to the limits of sections 11 and 11b, Article XI of the Oregon Constitution, by calculating the amount of the tax revenues that are necessary to pay the principal and interest on the bonds that is allocable to the misspent proceeds.
(3) An action may not be filed or maintained against a public body because of an alleged expenditure of the bond proceeds of general obligation bonds for purposes other than capital construction or capital improvements, if the misspent moneys are less than $5,000. [2007 c.783 §66]Section: Previous 287A.001 287A.010 287A.050 287A.100 287A.105 287A.140 287A.145 287A.150 287A.180 287A.195 287A.300 287A.310 287A.315 287A.325 287A.335 Next
Last modified: August 7, 2008