1. (1) In accordance with the applicable provisions of this chapter, the State Treasurer, at the request of the Director of the Oregon Department of Administrative Services, may issue Article XI-Q bonds:

   1. (a) For any of the purposes specified in Article XI-Q of the Oregon Constitution, plus an amount determined by the State Treasurer to pay estimated bond-related costs; and
   2. (b) Subject to the budget authorization for Article XI-Q bond issuance established under ORS 286A.035 for the biennium.

2. (2) The State Treasurer may issue Article XI-Q bonds for the purpose of:

   1. (a) Refunding Article XI-Q bonds.
   2. (b) Subject to subsection (3) of this section, refinancing borrowings issued before December 2, 2010, to finance or refinance costs described in section 1 (1), Article XI-Q of the Oregon Constitution.
   3. (c) Paying bond-related costs.
3. (3) When Article XI-Q bonds are issued to refinance borrowings issued before December 2, 2010, the maturity date of the Article XI-Q bonds may not be later than the maturity date of the refinanced borrowings.
4. (4) The State Treasurer shall deposit the net proceeds of Article XI-Q bonds issued in one or more project funds established in the State Treasury or with a third party approved by the State Treasurer. Net proceeds must be expended in accordance with procedures established by the Oregon Department of Administrative Services for the purposes described in each project agency’s budget authorization.
5. (5) If at any time the Oregon Department of Administrative Services and the project agency determine that the net proceeds of Article XI-Q bonds deposited in a project fund pursuant to subsection (4) of this section exceed the amount necessary for the purpose described in the project agency’s budget authorization, the department may allocate and transfer the excess amount as determined by the department to other project funds, the Article XI-Q Bond Fund established under ORS 286A.820 or the Article XI-Q Bond Administration Fund established under ORS 286A.822.
6. (6) Article XI-Q bonds are a general obligation of the State of Oregon and must contain a direct promise on behalf of the State of Oregon to pay the principal of, the interest on and the premium, if any, on the Article XI-Q bonds. The State of Oregon shall pledge its full faith and credit and taxing power to the payment of the principal of, the interest on and the premium, if any, on Article XI-Q bonds, except that the ad valorem taxing power of the State of Oregon may not be pledged to pay Article XI-Q bonds.

[2011 c.14 §3]