Or. Admin. Code § 170-061-0400 - Lost, Stolen or Destroyed Bonds or Interest Coupons

(1) Payment Under Bondholder Agreement. A paying officer shall pay any lost, mutilated or stolen bond or interest coupon as provided in the indenture or other agreement with bond owners executed when the bond was issued. If not provided for in the original indenture or agreements, the procedures outlined in this rule shall apply.

(2) Payment of Matured Bond. A paying officer shall pay the principal of and interest on any bond at or after maturity if the asserted owner of the instrument:

(a) Submits an affidavit that describes the following items in sufficient detail for the paying officer to determine the accuracy and veracity of the statements in the affidavit and that the bond has not already been paid:

(A) The bond;

(B) The circumstances surrounding the acquisition of the bond(s); and

(C) The circumstances surrounding the bond's loss, mutilation or destruction;

(b) Surrenders the bond, if it is mutilated and in the possession of the asserted owner; and

(c) The asserted owner furnishes an indemnity instrument executed by a surety company licensed to do business in the state for the face amount of the bond plus interest due thereon.

(3) Affidavit. If the asserted owner does not have personal knowledge of the information that must be contained in the affidavit required under subsection (2)(a) of this section, the person having the personal knowledge may make the affidavit.

(4) Indemnity. If the face amount of a bond plus interest due thereon is $1,000 or more, a surety company licensed to do business in the state of Oregon must execute the indemnity bond required under subsection (2) of this section.

(5) Issuance of Duplicate prior to Maturity. If a bond has not yet matured, the governing body shall execute and deliver a duplicate to the asserted owner of such bond when such asserted owner:

(a) Submits an affidavit that describes the following items in sufficient detail for the paying officer to determine the accuracy and veracity of the statements in the affidavit and that the bond has not already been paid:

(A) The bond;

(B) The circumstances surrounding the acquisition of the bond(s); and

(C) The circumstances surrounding the bond's loss, mutilation or destruction;

(b) Surrenders the Bond, if it is mutilated and in the possession of the asserted owner; and

(c) The asserted owner furnishes an indemnity instrument executed by a surety company licensed to do business in the state of Oregon for the face amount of the bond plus interest due and to become due on the bond; and

(d) Deposits with the issuer a sum sufficient to pay the expenses of issuing a duplicate bond.

(6) Affidavit. If the asserted owner does not have personal knowledge of the information that must be contained in the affidavit required under this rule, the person having such personal knowledge may make the affidavit.

(7) Waiver. If the asserted owner of a lost, mutilated or destroyed bond that was registered provides an affidavit, certification or other reliable proof that the paying officer or governing body reasonably finds protects the issuer from conflicting claims for payment under the registered bond, the paying officer may waiver the requirements of this section with respect to that registered bond.

(8) Form of Duplicate. If the paying officer issues a duplicate bond, it shall be in the same form and amount and bear the same serial or CUSIP number, date of issue and date of maturity as the original bond. If the bond has interest coupons attached, only interest coupons that have not matured under the terms of the original bond as of the date the duplicate is issued shall be attached to the duplicate. The officer shall indorse the word "DUPLICATE" and the date its issuance upon the face of any duplicate bond and upon the face of any attached interest coupon. The paying officer shall sign the duplicate on behalf of the issuer.

(9) Waiver of Indemnity Instrument. The paying officer may waive the requirement of an indemnity instrument imposed by this rule if the asserted owner of the bond furnishes an undertaking for the face amount of the bond plus all interest due and to become due on the bond to protect the issuer from loss or liability resulting from any demand or payment of the principal of or interest on such bond and:

(a) The asserted owner surrenders a mutilated bond that is so complete that any missing portion thereof could not form the basis of a valid claim against the issuer: or

(b) The asserted owner of the bond is the State of Oregon in its individual or fiduciary capacity or a public body that is not in default on the payment of any of its outstanding obligations.

Notes

Or. Admin. Code § 170-061-0400

OST 7-2008, f. & cert. ef. 12-29-08

Stat. Auth.: ORS 286A.005

Stats. Implemented: ORS 286A.005