1. (1) A related agency, with the approval of the State Treasurer, or the State Treasurer, on behalf of a related agency:

   1. (a) May bid for, purchase, hold, cause to be held in trust and remarket bonds issued by the State Treasurer on behalf of the related agency.
   2. (b) May not, except as provided in ORS 293.793 (2), bid for, purchase, hold, cause to be held in trust and remarket bonds issued by the State Treasurer on behalf of another state agency.
2. (2) Except as otherwise provided in the operative documents, the purchase or acquisition of bonds under subsection (1) of this section does not cancel or extinguish the bonds unless the related agency elects in writing to cancel or extinguish the bonds.

3. (3) In addition to other uses authorized by law, a related agency, or the State Treasurer on behalf of a related agency, may purchase bonds under subsection (1) of this section using moneys that are:

   1. (a) Deposited in a fund or account in the State Treasury for the use of the related agency or held by a trustee of the related agency; and
   2. (b) Appropriated or otherwise legally available to the related agency for repayment of the bonds or for payment of the costs of the related agency to administer the program under which the bonds were sold, including bond proceeds and reserves established for the bonds.

4. (4) Within two business days after using the authority to purchase bonds under this section, the State Treasurer shall notify the legislative revenue committees, when the Legislative Assembly is in regular or special session, or the Legislative Revenue Officer and the Legislative Fiscal Officer, during the interim, of:

   1. (a) The amount and status of the bonds purchased by or on behalf of a related agency under this section; and
   2. (b) The current or anticipated interest rates applicable to the bonds.

5. (5) Not later than February 1 of each year, the State Treasurer shall submit a report to the legislative revenue committees, when the Legislative Assembly is in regular or special session, or to the Legislative Revenue Officer and the Legislative Fiscal Officer, during the interim, describing:

   1. (a) The amount and status of bonds purchased during the previous year by or on behalf of related agencies under this section; and
   2. (b) The savings realized or costs incurred by related agencies from the purchase of bonds under this section.

[2009 c.537 §2]