(a) Any taxing district located within the county;
(b) Another county; or
(c) Any taxing district located in another county.
(2) The amount of the loan may not exceed the lesser of:
(a) The amount of operating taxes estimated to be collected by the taxing district or the county to which the moneys are to be loaned, plus interest, for a period of 20 consecutive years; or
(b) The estimated annual debt service amounts that can reasonably be estimated to be available for the term of the loan to the taxing district or the county to which the moneys are to be loaned, after subtracting any other financial or legal obligations of the borrower taxing district or county.
(3)(a) Moneys may be loaned under this section only pursuant to a legally binding intergovernmental agreement or loan agreement entered into by the governing bodies of the borrower taxing district or the county and the lender county.
(b) The intergovernmental agreement or loan agreement must contain provisions that:
(A) Fix the principal amount of the loan and state the method of determining the rate of interest. The rate of interest may not be less than the average rate of return earned over the immediately preceding 12-month period by moneys of the lender county placed in the investment pool as defined in ORS 294.805.
(B) Fix the term of the loan and the schedule of the payments of principal and interest.
(C) Pledge the operating tax revenues of the borrower taxing district or county as security for repayment of the loan, plus interest.
(D) Identify the purpose for which the taxing district or the county is borrowing the moneys.
(E) Establish remedies in favor of the lender county if the borrower taxing district or county is unable to meet the annual debt service obligations.
(4) The governing bodies of the borrower taxing district or county and the lender county shall account for the loan and the repayment obligation, including interest, in their annual budgets for the term of the loan.
(5) A county that makes a loan under this section shall disclose the loan to the Oregon Municipal Debt Advisory Commission.
(6) Moneys from state and local sources that are subject to Article IX, section 3a, of the Oregon Constitution, may not be loaned under this section. [2017 c.682 §1]
Note: 368.709 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 368 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
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