(a) The depository arranges to deposit the funds into one or more certificates of deposit or time deposits issued by other financial institutions in the United States;

(b) Each certificate of deposit or time deposit is fully insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration;

(c) The depository administers the funds on behalf of the public official; and

(d) Other financial institutions that participate in the program place funds into the depository in an amount at least equal to the amount the public official deposited into the depository for purposes of the program.

(2) A public official may deposit public funds in a depository that is not a qualified depository in an amount in excess of the amount allowed in ORS 295.002 (1)(b) if the depository participates in a program that meets the following conditions:

(a) On or after the date that the funds are received, the depository:

(A) Arranges for the redeposit of the funds into one or more insured deposit accounts in other financial institutions in the United States; and

(B) Administers the funds on behalf of the public official;

(b) The full amount of the funds redeposited by the depository into deposit accounts in other financial institutions, together with any interest accrued on deposited funds, is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration; and

(c) On the same date that the funds are redeposited under this subsection, the depository receives an amount of deposits from customers of other financial institutions that are at least equal to the amount of the funds redeposited by the depository.

(3) Until the depository places public funds into one or more certificates of deposit or time deposits as provided in subsection (1) of this section or places public funds into insured deposit accounts as provided in subsection (2) of this section, any uninsured public funds that the depository holds pending placement must be collateralized as provided in ORS 295.001 to 295.108 for other uninsured public funds deposits.

(4)(a) The provisions of ORS 295.006, 295.013, 295.015, 295.018, 295.037 and 295.038 do not apply to depositories that arrange to deposit public funds in accordance with the programs described in subsections (1) and (2) of this section.

(b) The certificate of deposit, time deposit or insured deposit in which a public official placed public funds under this section may be issued by a financial institution outside this state. [Formerly 295.027; 2009 c.821 §2; 2010 c.101 §3; 2011 c.477 §§1,2; 2019 c.587 §3]