Distribution of collateral after loss in qualified depository

(1) The provision of collateral, including the deposit of securities by a qualified depository with its custodian pursuant to ORS 295.001 to 295.108, constitutes consent by the depository to the disposition of the securities in accordance with this section. (2) When a loss has occurred in a qualified depository, the depository shall as soon as possible make payment to the proper public officials of all funds subject to the loss, pursuant to the following procedures: (a) Immediately upon occurrence of the loss, the State Treasurer shall exercise all of the State Treasurer’s rights in the collateral, including without limitation taking possession of any securities segregated as collateral for uninsured public funds deposits held by the closed depository and beginning to collect payment from as much of the collateral, including without limitation the liquidation of securities, as the State Treasurer estimates is necessary, based upon the most recent information available to the State Treasurer on the amount of uninsured public funds deposits held by the closed depository, for distribution of the proceeds among public officials entitled to the proceeds as provided in this section. (b) The Director of the Department of Consumer and Business Services or the receiver for the closed depository shall, within 20 days after the issuance of a restraining order or taking possession of any qualified depository, ascertain the amount of public funds on deposit in the depository as disclosed by its records and the amount of the public funds covered by deposit insurance or deposit guaranty bonds and certify the amounts to the State Treasurer and to each public official who has public funds on deposit in the depository. (c) Each public official who has uninsured public funds on deposit in the qualified depository shall, within 10 days after receipt of the certification from the Director of the Department of Consumer and Business Services or the receiver, furnish to the State Treasurer verified statements of the uninsured public funds that the public official has on deposit in the depository. (3) Upon receipt of the certification from the Director of the Department of Consumer and Business Services or the receiver and the verified statements from the public officials who have uninsured public funds on deposit in the qualified depository, the State Treasurer shall ascertain and fix the amount of public funds on deposit in the depository, plus interest to the date the funds are distributed to the public official at the rate the depository agreed to pay on the funds, minus any amount covered by deposit insurance or deposit guaranty bonds.