Relating to financial institutions.

HB 2971 modifies investment rules for Oregon financial institutions holding public funds. It removes capital-based limits for investments in U.S. government, Oregon public, and certain public housing obligations, while adding a credit rating requirement (top four grades) for out-of-state municipal bonds. The bill also simplifies how "net worth" is calculated for these institutions by removing prior risk-based capital references. These changes directly affect Oregon banks, credit unions, and other qualified depositories managing public funds. The law takes effect January 1, 2026.