Authority of State Treasurer to issue bonds

(1) Article XI-N 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-N bonds. The State of Oregon shall pledge its full faith and credit and taxing power to pay Article XI-N bonds, except that the ad valorem taxing power of the State of Oregon may not be pledged to pay Article XI-N bonds. (2) The State Treasurer, with the concurrence of the Director of the Oregon Business Development Department, may issue Article XI-N bonds as provided in this chapter, subject to the limit on bond issuance established for the particular biennium pursuant to ORS 286A.035 and at the request of the Director of the Oregon Department of Administrative Services, for the purpose of financing all or a portion of the state share of costs to plan and implement seismic rehabilitation of emergency services buildings in the amount of the state share of costs, plus an amount determined by the State Treasurer to pay estimated bond-related costs. (3) The State Treasurer shall transfer the net proceeds of Article XI-N bonds issued for the purpose described in subsection (2) of this section to the Oregon Business Development Department for deposit in the Emergency Services Seismic Fund established under ORS 286A.788.