Section 7. Credit of state not to be loaned- limitation upon power of contracting debts. The Legislative Assembly shall not lend the credit of the state...

Section 9. Limitations on powers of county or city to assist corporations. No county, city, town or other municipal corporation, by vote of its citiziens, or otherwise, shall become a stockholder in any joint company, corporation, or association, whatever, or raise any money for, or in aid of, any such company, corporation or association.

Sections 7 and 9 are commonly referred to as "Lending of Credit" provisions. Similar provisions are contained in at least forty-five of the fifty state constitutions. The Florida Supreme Court stated that the essence of the lending of credit provisions is,
"to restrict the activities and functions of the state, county and municipality to that of government, and forbid their engaging directly or indirectly in commercial enterprises for profit."

Quoted from, "Public Subsidies, Private Gain: Stop Violating the Oregon Constitution," by Professor Dale F. Rubin, who is editor of the Oregon State Bar Business Law Digest.

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In Ashland, the municipal corporation owns:
Electric utility
Water utility: Ashland was full of springs (B Street used to be named Spring Street), but the city had them capped.
Ski resort
Ice skate rink
Parks
Airport: The Airport is one of two City of Ashland facilities with fuel leaks that need to be cleaned up.
Hospital
Hospital laundry company
Ambulance service: A lawsuit stemming from the city's hostile take-over of a private ambulance company was dropped.
Cemetaries (Cradle to grave!)
Fiber Optic Network: Proposed.

County
The county of Jackson owns the fairgrounds and a water slide.

State
The local museum, Pacific Northwest Museum of Natural History, is defaulting on a state loan, several million dollars of "Health, Education, and Cultural" funds.

Meanwhile, in Seattle:
"Feds investigate $24 million loan to Seattle store," an article in the Oregonian, Monday Dec. 16, 1996, page B6.