Local and tribal governments authorized to place limited funds in pool

(1)(a) Subject to paragraph (b) of this subsection, with the consent of the governing body, a local government official or tribal government official may place in the aggregate up to $30 million of the funds of the local government or tribal government in the investment pool, or, if the assets of the investment pool have been transferred pursuant to ORS 294.882, for investment and reinvestment by the investment officer as provided under ORS 293.701 to 293.857 or 294.805 to 294.895, as the case may be. (b) The investment officer may require the governing body of the local government or tribal government to enter into an investment agreement as a condition of placing funds with the investment officer pursuant to this subsection. (2) The $30 million limitation in this section does not apply either to funds of a governing body that are placed in the investment pool on a pass-through basis or to funds invested on behalf of another government unit. Local governments must remove pass-through funds that result in an account balance in the pool in excess of $30 million within 10 business days. County governments and tribal governments must remove such excess funds within 20 business days. (3) The investment officer shall annually adjust the $30 million limitation in this section by multiplying $30 million by the percentage, if any, by which the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the current calendar year exceeds the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31, 1995.