Department of Administrative Services
Chief Financial Office - Chapter 122
Division 70
STATE OF OREGON FINANCING AGREEMENTS
122-070-0110
Definitions
Unless the context indicates otherwise, capitalized terms used in this Chapter 122, Division 70 of the Oregon Administrative Rules shall have the following meanings:
(1) Benefiting Agency refers to a State Agency or a Division of Department of Administrative Services that has direct control of, or responsibility for, an asset that is paid for through a Financing Agreement.
(2) Capital Lease means a lease that:
(a) Meets the criteria for recording as a capital lease as set forth in generally accepted accounting principles or the State Accounting Manual; or
(b) Is for a real property asset being built on state owned land, unless the Director of the Department of Administrative Services exempts the transaction from such classification.
(3) Department means the Department of Administrative Services, Budget and Management Division.
(4) Director means the Director of the Department of Administrative Services.
(5) Finance Manager means the Capital Finance Manager of the Capital Investment Section of the Department of Administrative Services, Budget and Management Division.
(6) Financing Agreement means an agreement authorized under ORS 283.085 to 283.092 that includes:
(a) Certificates of Participation, (together with the related loan agreement), issued by the State Treasurer in a public or private sale;
(b) Promissory notes or other contract undertakings to pay moneys over time that are privately placed with a single or limited group of lenders; or
(c) Any other agreements for the acquisition of real or personal property through installment payments, including Capital Leases and Software Contracts but excluding Qualifying Service Agreements and Operating Leases.
(7) Operating Lease means a lease that meets the criteria for recording as an operating lease as set forth in generally accepted accounting principles or the State Accounting Manual.
(8) Qualifying Service Agreement means an agreement that in substance facilitates the provision of service by a vendor as its primary objective and may allow for use or licensing of proprietary software or hardware to achieve service objectives without transfer of such software or hardware at the end of the agreement.
(9) Software Contract means a lease of software and training and maintenance contracts related to the operation of computing equipment. A software contract does not include:
(a) A term license for the use of software that is terminable without any penalty or with a penalty amount that is deminimus compared to the value of the software at the time of termination; or
(b) “Software as a service” under a contract for vendor services which are provided through the use of a vendor’s software.
(10) State Agency or Agency has the meaning given in ORS 291.002.
(11) Tax-advantaged refers to a benefit provided by a governmental authority to the issuer or holder of a bond or other evidence of indebtedness in the form of exemption from taxation, a tax-deferral or a tax credit to the holder of the indebtedness, an interest rate subsidy payment to the issuer, or any other type of financial benefit. Qualification for such treatment generally requires ongoing compliance with various laws and regulations by the issuer.
Statutory/Other Authority: ORS 184.340
Statutes/Other Implemented: ORS 283.085 - 283.092
History:
BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12