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The Oregon Administrative Rules contain OARs filed through March 15, 2014
 
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OREGON STATE TREASURY

 

DIVISION 60

OREGON MUNICIPAL DEBT ADVISORY COMMISSION

170-060-0000

Notice of Proposed Rulemaking

Prior to the adoption, amendment, or repeal of any permanent rule, the Chairman of the Commission or their designee shall give notice of the intended action:

(1) In the Secretary of State's Bulletin referred to in ORS 183.360 at least 21 days prior to the effective date of the intended action.

(2) By providing a copy of the Notice to persons on the Commission's mailing list established pursuant to ORS 183. 335 (7) at least 28 days before the effective date of the rule. Providing a copy means by mail, e-mail, notice of posting to a web-site, or any other means whereby interested parties have timely access to the permanent rule and the intended action.

(3) By providing a copy of the Notice to the following persons, organizations, or publications:

(a) Selected cities, counties, school districts, port districts;

(b) Any district or other interested party as determined by the Commission;

(c) League of Oregon Cities;

(d) Association of Oregon Counties;

(e) Oregon School Boards' Association;

(f) Oregon Bond Counsel.

Stat. Auth.: ORS 178.050
Stats Implemented: ORS 183.355
Hist.: TD 1-1981, f. & ef. 12-18-81; TD 1-1996, f. & cert. ef. 1-26-96; OST 4-2004, f. & cert. ef. 6-23-04

170-060-0001

Definitions

Terms used in OAR 170-060 shall have the meanings given in ORS chapter 287A unless otherwise specifically defined herein:

(1) Definitions.

(2) "Counterparty" means an entity with whom a public body enters into an agreement for the exchange of interest rates.

(3) "Swap policy" means the written policy regarding the use of agreements for the exchange of interest rates adopted by the public body.

(4) "MDAC" means the Oregon Municipal Debt Advisory Commission.

(5) “OST” means the Office of the State Treasurer.

Stat. Auth.: ORS 178.050
Stats Implemented: ORS 183.355
Hist.: OST 7-2008, f. & cert. ef. 12-29-08

170-060-0005

Notice of Proposed Rulemaking

Prior to the adoption, amendment, or repeal of any permanent rule, the Chairman of the MDAC or their designee shall give notice of the intended action:

(1) In the Secretary of State's Bulletin referred to in ORS 183.360 at least 21 days prior to the effective date of the intended action.

(2) By providing a copy of the notice to persons on the MDAC's mailing list established pursuant to ORS 183.335(7) at least 28 days before the effective date of the rule. Providing a copy means by mail, e-mail, notice of posting to a web-site, or any other means whereby interested parties have timely access to the permanent rule and the intended action.

(3) By providing a copy of the notice to the following persons, organizations, or publications:

(a) Selected cities, counties, school districts, port districts;

(b) Any district or other interested party as determined by the MDAC;

(c) League of Oregon Cities;

(d) Association of Oregon Counties;

(e) Oregon School Boards' Association;

(f) Oregon Bond Counsel.

Stat. Auth.: ORS 178.050
Stats Implemented: ORS 183.355
Hist.: OST 7-2008, f. & cert. ef. 12-29-08

170-060-1010

Terms, Conditions, and Reporting Requirements for an Agreement for Exchange of Interest Rates

(1) Public bodies shall only enter into agreements for the exchange of interest rates as authorized by, and in compliance with, ORS 287A.335.

(2) Amount. The notional amount of an agreement that relates to outstanding borrowing may not exceed the outstanding principal amount of the borrowing when the agreement is entered into. The notional amount of an agreement that relates to a borrowing that the public body expects to issue in the future may not exceed the principal amount of the borrowing reasonably anticipated to be outstanding when payments are required to commence under the agreement (as evidenced by a copy of the resolution, minutes of the board or other authorizing directive of the director or board as required by section 3 of this rule).

(3) Authorization. With respect to an obligation or obligations that a public body has issued or will issue (as evidenced by a copy of the resolution, minutes of the board or other authorizing directive of the director or board), subject to ORS 287A.335 or as the same may be amended in the future, the public body may designate the particular obligation to which an agreement relates after execution of the agreement. Such a designation after execution of the agreement shall be considered an agreement modification, and the public body shall notify the MDAC of such modification in accordance with this rule.

(4) Swap Policy. The public body shall have adopted a swap policy as part of its ongoing responsibility to manage its debt obligations. In adopting a swap policy, the public body should review and consider the current edition of the Government Finance Officers Association Recommended Practice: "Use of Debt-Related Derivatives Products and the Development of a Derivatives Policy" and the "MDAC Sample Interest Rate Swap Policy". Included in the swap policy, the public body shall provide a general description of risks related to agreements for exchange of interest rates and the means by which the public body will address those risks. The swap policy shall also provide that an analysis of the risks and benefits of each agreement shall be presented to the governing body prior to executing such agreement.

(5) MDAC Notice. The public body shall notify the MDAC of the execution of an agreement for the exchange of interest rates by delivering to the OST, as provided in OAR 170-055-0001(3), within 30-days of its execution, the following:

(a) An MDAC Form 3.

(b) An executed copy of the resolution, minutes of the board or other authorizing directive of the director or board, specifically authorizing the public body to engage and participate in an agreement for the exchange of interest rates. The authorization shall state the reason that the public body is authorizing the agreement, shall include a finding that the agreement is being executed for permitted purposes and complies with the authorizing act and this rule.

(c) The public body's swap policy.

(d) The legal opinion, if any, addressing the validity of the public body's obligations under the agreement for the exchange of interest rates that is delivered in connection with the agreement.

(6) Terms. An agreement shall contain terms and conditions consistent with the swap policy adopted by the public body including, but not limited to:

(a) The notional amount of the agreement;

(b) Payment terms;

(c) The term of the agreement;

(d) Insurance, collateral or other assurances of payment provided in compliance with ORS 287A.335 or as the same may be amended in the future;

(e) Provisions for termination in advance of the scheduled term;

(f) Events of default and related remedies;

(g) Assurances that the counterparty will maintain a minimum rating with respect to its termination payment obligations in one of the top three rating categories without gradation by at least two nationally recognized rating agencies or that the counterparty's obligations will be collateralized;

(h) Modifications to standard ISDA swap documentation, as specified in the Schedule as may be required by the public body's policy or governing law;

(i) Limitations on allowable collateral and frequency of the valuation of such collateral; and

(j) Agreement valuation methodology.

(7) Ratings Reduction. The public body shall notify the MDAC of any material change in the public body's obligations or benefits under the agreement for the exchange of interest rates that result from a reduction in the ratings of the public body, a counterparty or guarantor.

(8) Modification or Termination. If after executing an agreement for the exchange of interest rates, the agreement is modified or terminated for any reason prior to its stated end date, the public body shall notify the MDAC within 30-days after completion of the modification and identify the reasons for such termination or modification and the anticipated change in obligation to the public body resulting from the termination or modification.

Stat. Auth.: ORS 287A.335
Stats. Implemented: ORS 287A.335
Hist.: OST 6-2004(Temp), f. 7-12-04, cert. ef. 7-13-04 thru 12-30-04; OST 7-2004, f. & cert. ef. 11-18-04; OST 2-2005(Temp), f. 10-5-05, cert. ef. 10-6-05 thru 4-4-06; Administrative correction 4-19-06; OST 1-2006, f. & cert. ef. 6-1-06; OST 7-2008, f. & cert. ef. 12-29-08

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

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