(1) The assessments paid to the Oregon Department of Administrative Services by the Department of Corrections or the Oregon Youth Authority shall be credited as a component of the Insurance Fund pursuant to ORS 278.425 and 278.435. (2) Funds credited to the adult in custody injury component of the Insurance Fund for the purposes of ORS 655.505 to 655.555 may be used to effect insurance or reinsurance with any authority or instrumentality, public or private, or otherwise to distribute the liability for compensation payable to persons entitled to recover under ORS 655.505 to 655.555.
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