Oregon Statutes - Chapter 456 - Housing - Section 456.675 - Bond provisions and limits; security for payment.

(1) The bonds issued by the State Treasurer under ORS 456.515 to 456.725 and the agreements with the bondholders may:

(a) Pledge all or any part of the fees and charges made or received by the Housing and Community Services Department under ORS 456.548 to 456.725 and all or any part of the moneys received in payment of residential loans and interest thereon and other moneys received or to be received by the department under ORS 456.548 to 456.725 to secure payment of the bonds, subject to the provisions of any agreements with bondholders then existing.

(b) Pledge all or any part of the assets of the department acquired under ORS 456.548 to 456.725, including residential loans and obligations securing such residential loans to secure the payment of the bonds, subject to the provisions of any agreements with bondholders then existing.

(c) Pledge any moneys, loans or grants received from the federal government, the state or any city, county or political subdivision of this state for any housing project financed in whole or in part from the sale proceeds of bonds.

(d) Provide for the use and disposition of the gross income from residential loans held by the department and for the payment of the principal on residential loans held by the department.

(e) Limit the purposes for which the proceeds from the sale of bonds may be applied by the department and pledge such proceeds to secure payment of the bonds of the department.

(f) Limit the issuance of additional bonds, the terms upon which such additional bonds may be issued and the refunding of outstanding bonds.

(g) Provide for the procedure, if any, by which the terms of any contract with bondholders may be amended or rescinded, the percentage of the bondholders that must consent thereto and the manner of giving their consent thereto.

(h) Vest in a trustee appointed by the director such property, rights, powers and duties in trust as the department may determine, including the rights, powers and duties of a trustee appointed for bondholders pursuant to ORS 456.548 to 456.725 or limiting the rights, powers and duties of any trustee so appointed.

(i) Provide for other matters affecting security for the bonds.

(2) Any pledge made by or pursuant to subsection (1) of this section shall be valid and binding from the time when the pledge is made. The revenues, assets and funds pledged pursuant to subsection (1) of this section shall immediately be subject to the lien or pledge without physical delivery thereof or further act, and the lien of any pledge shall be valid and binding against all parties having claims of any kind in tort, contract or otherwise, irrespective of whether the parties have notice thereof. No housing finance bond declaration or any other instrument by which the pledge is created need be recorded or filed except as provided in ORS 456.548 to 456.725 and the department shall not be required to comply with any of the provisions of the Oregon Uniform Commercial Code. [1973 c.828 §17; 1975 c.154 §5; 1977 c.32 §1; 1979 c.60 §6; 1981 c.504 §9; 1983 c.519 §8; 1995 c.79 §261]

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Last modified: August 7, 2008