Oregon law provides authority for interfund borrowing under the terms of ORS 293.210 to 293.225. In some circumstances, individual agencies or programs may also have specific borrowing authority granted in statute. All such borrowings are to be considered a tool employed by the Oregon State Treasury to assist agencies that may be experiencing short-term, transitory cash imbalances created in the conduct of legislatively approved agency activities. Borrowings are not to be used to fund activities not already contemplated in an agency’s approved budget. Further, the eventual source of repayment for the borrowing must be clearly demonstrated at the time of the borrowing.
Interfund borrowings will be evidenced by a formal borrowing agreement that must be signed by the agency head (and/or appropriate governing board or commission member, if appropriate), the agency’s chief financial officer (or like position), and the Oregon State Treasury.
For more information, including details regarding documentation that must be provided, please see OST Policy 02.18.09 or contact us at 503-378-4633.