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| Home > Statutes > Usa Oregon |
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USA Statutes : oregon
Title : TITLE 53 FINANCIAL INSTITUTIONS
Chapter : Chapter 716 Savings Banks
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(1) The provisions of ORS chapter 706
relating to financial institutions, the following sections in the Bank
Act and any other provisions of the Bank Act that by their terms pertain
to Oregon savings banks shall apply to Oregon savings banks: ORS 707.075,
707.080, 707.090, 707.100, 707.120, 707.145, 707.150, 707.155, 707.170,
707.180, 707.252, 707.254, 707.625, 707.642, 707.646 (1), 707.660,
707.665, 707.670 to 707.764, 708A.175, 708A.405, 708A.410, 708A.420 to
708A.535, 708A.590, 708A.600, 708A.640, 708A.645, 708A.655, 708A.990,
711.405 to 711.670, 711.980 and 714.075.
(2) In addition to the statutes listed in subsection (1) of this
section, to the extent applicable, the following provisions of the Bank
Act apply to Oregon stock savings banks: ORS 707.050, 707.110, 707.140,
707.195, 707.200 to 707.230, 707.244 to 707.250, 707.256, 707.258 to
707.272, 707.350, 707.380 to 707.410, 707.415, 707.610 to 707.623,
707.644, 707.646 (2) and 707.648. [1973 c.797 §345; 1975 c.544 §44; 1977
c.555 §15; 1979 c.88 §24; 1981 c.192 §24; 1983 c.37 §25; 1983 c.367 §4;
1985 c.762 §46; 1985 c.786 §46; 1985 c.796 §4; 1987 c.197 §8a; 1989 c.324
§72; 1997 c.631 §331; 1999 c.506 §4] Any
number of persons, not less than five, desiring to organize an Oregon
savings bank shall, as prospective incorporators, first file an
application with the Director of the Department of Consumer and Business
Services for authority to organize an Oregon savings bank. The applicants
shall pay to the director at the time of their application a fee of
$2,500, no part of which will be refunded. The application shall be
signed by one of the applicants. The following information and documents
shall be included in or with the application:
(1) The corporate name.
(2) The proposed location of the initial principal place of
business.
(3) The name, occupation, residence and post-office address of each
prospective incorporator.
(4) The proposed articles of incorporation. The following apply:
(a) If the Oregon savings bank is to be organized as an Oregon
stock savings bank, the articles of incorporation shall conform to the
provisions set forth in ORS 707.110; and
(b) If the Oregon savings bank is to be organized as an Oregon
nonstock bank, the articles of incorporation shall conform to the
provisions set forth in ORS 716.040.
(5) The names and residence addresses of the proposed senior
officers and the names, occupations and residence addresses of proposed
initial directors.
(6) If the Oregon savings bank is being organized as an Oregon
stock savings bank, the number of shares of voting stock proposed to be
subscribed for by the incorporators and each of the proposed directors
and senior officers, and the names of any other persons who are expected
to subscribe for, to own or to control more than 10 percent of the voting
stock and the amount of stock for which each proposes to subscribe.
(7) Evidence satisfactory to the director of the character,
financial responsibility and ability of the prospective incorporators,
directors and senior officers.
(8) Evidence satisfactory to the director, in the form of a
business plan and such additional information as the director may
require, demonstrating that the proposed Oregon savings bank is likely to
be financially successful.
(9) The proposed operating policies of the Oregon savings bank.
(10) Any other information that the director may require. [1973
c.797 §346; 1977 c.135 §58; 1979 c.88 §25; 1997 c.631 §332; 2003 c.14
§444] The Director of
the Department of Consumer and Business Services shall investigate and
rule on the application for authority to organize in the manner specified
for institutions in ORS 707.080, 707.090 and 707.145. [1973 c.797 §347;
1977 c.135 §30; 1997 c.631 §333] (1) Not less than five
persons may associate themselves by articles of incorporation to form an
Oregon savings bank, either as an Oregon stock savings bank or as an
Oregon nonstock bank. If the Oregon savings bank is organized as an
Oregon stock savings bank, its articles of incorporation shall conform to
the provisions set forth in ORS 707.110. If the Oregon savings bank is
organized as an Oregon nonstock bank, its articles of incorporation shall
conform to the provisions of subsection (2) of this section, be executed
in duplicate, signed by the incorporators and submitted to the Director
of the Department of Consumer and Business Services.
(2) The articles of incorporation of an Oregon nonstock bank shall
specify:
(a) The name by which the Oregon nonstock bank is to be known.
(b) The initial principal place where its business is to be
transacted, naming the city or town and county.
(c) The address, including street and number, and mailing address,
if different, of its initial registered office and the name of its
initial registered agent at that office.
(d) The name of each incorporator.
(e) The term of its existence, which may be perpetual.
(f) The purpose for which it is organized.
(g) The sums that each incorporator will contribute in cash to the
initial guaranty fund and the expense fund, as provided in ORS 716.060
and 716.070.
(h) The initial board of directors of the Oregon nonstock bank,
composed of not less than five persons, at least three of whom shall be
incorporators, who shall serve until their successors are regularly
elected and qualified.
(3) The articles of incorporation also may contain any lawful
provisions for the regulation of the business, for the conduct of the
affairs of the Oregon nonstock bank, defining and regulating the powers
of the directors or eliminating or limiting the personal liability of
directors to the extent permitted under ORS 707.110 (5)(c). [Amended by
1973 c.797 §349; 1989 c.447 §2; 1991 c.883 §12; 1997 c.631 §334; 2005
c.192 §12]
(1) If the Director of the Department of Consumer and Business Services
finds that the articles of incorporation conform to law, the director
shall, within 60 days after receiving the articles of incorporation and
when all fees have been paid:
(a) Indorse on each of the duplicate originals the word “Filed,”
and the month, day and year of the filing.
(b) File one of the duplicate originals in the office of the
director.
(c) Issue a certificate of incorporation to which the director
shall affix the other duplicate original.
(2) The certificate of incorporation, with one of the duplicate
originals affixed thereto shall be returned to the incorporators or their
representative.
(3) Upon issuance of the certificate of incorporation, the
corporate existence of a savings bank begins. [Amended by 1973 c.797 §350] Before an Oregon
nonstock bank may conduct its business, its incorporators shall create:
(1) A guaranty fund, as provided in ORS 716.060, for the protection
of its depositors against loss on its investments, and
(2) An expense fund, as provided in ORS 716.070, to pay the expense
of organizing the Oregon nonstock bank and the operating expenses. [1973
c.797 §351; 1997 c.631 §335] (1) The guaranty fund shall consist of
payments in cash made by the incorporators and of all sums credited to
the guaranty fund as required by ORS 716.780.
(2) The incorporators shall deposit to the credit of the Oregon
nonstock bank in cash as an initial guaranty fund an amount determined by
the Director of the Department of Consumer and Business Services, which
is the limit of their liability to that fund.
(3) Prior to the liquidation of the Oregon nonstock bank, the
guaranty fund shall not be used except for losses and the repayment of
contributions made by incorporators or directors as provided in ORS
716.800 (2), until the fund, together with undivided profits, exceeds 25
percent of the amount due depositors.
(4) The amounts contributed to the guaranty fund by the
incorporators shall not constitute a liability of the Oregon nonstock
bank, except as provided in this chapter. Any loss sustained by the
Oregon nonstock bank in excess of that portion of the guaranty fund
created from earnings may be charged against the contributions pro rata.
[Amended by 1973 c.797 §352; 1997 c.631 §336] (1) The incorporators of an Oregon nonstock
bank shall create an expense fund by depositing to the credit of the
Oregon nonstock bank in cash an amount determined by the Director of the
Department of Consumer and Business Services. They shall also enter into
an agreement or undertaking with the director as trustee for the
depositors with the Oregon nonstock bank to make further contributions in
cash to the expense fund of the Oregon nonstock bank as may be necessary
to pay the operating expenses until the Oregon nonstock bank can pay them
from its earnings, in addition to the dividends as declared and credited
to its depositors. The agreement or undertaking shall fix the liability
of the incorporators jointly and severally for a reasonable amount as
approved or determined by the director. In addition to the undertaking of
the incorporators, the director may require a surety bond executed by an
entity authorized to transact, within this state, the business of surety,
or an irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008. The agreement or undertaking and letter of credit
or surety bond shall be filed in the office of the director.
(2) The amounts contributed to the expense fund of the Oregon
nonstock bank by the incorporators is not a liability of the Oregon
nonstock bank except as provided in ORS 716.800. [Amended by 1973 c.797
§353; 1991 c.331 §117; 1997 c.631 §337] (1) The Director of the Department of
Consumer and Business Services shall examine the condition of an Oregon
nonstock bank when the Oregon nonstock bank files with or submits to the
director:
(a) A copy of its articles of incorporation, as required by ORS
716.040;
(b) A list of incorporators, showing name, address, sums paid into
the guaranty and expense fund, sworn to by the president or cashier;
(c) The sworn statement of an officer that all requirements of law
have been complied with; and
(d) A list of the directors and officers elected.
(2) If, upon examination, the director determines that the Oregon
nonstock bank has complied with the applicable requirements of ORS
716.028 to 716.070, the director shall issue to the Oregon nonstock bank
a charter to do business as an Oregon nonstock bank under this chapter.
[Amended by 1973 c.797 §354; 1987 c.216 §6; 1997 c.631 §338]
(1) If an Oregon savings bank fails to complete its organization and
receive from the Director of the Department of Consumer and Business
Services a charter within one year after the date of filing its articles
of incorporation, the Oregon savings bank shall cease to exist and the
articles of incorporation are void.
(2) All persons purporting to act as or on behalf of an Oregon
savings bank, knowing there was no incorporation, are jointly and
severally liable for all liabilities created while so acting. [Amended by
1973 c.797 §356; 1997 c.631 §339] An Oregon
savings bank shall not transact any business, except as incidental or
necessary to its organization, until:
(1) It has received its charter from the Director of the Department
of Consumer and Business Services; and
(2) The director is satisfied that either:
(a) In the case of an Oregon stock savings bank, the incorporators
have obtained paid subscriptions in at least the amount of the initial
approved paid-in capital; or
(b) In the case of an Oregon nonstock bank, the incorporators have
made the deposit of the:
(A) Initial guaranty fund required by ORS 716.060.
(B) Expense fund required by ORS 716.070, and, if the director so
requires, have entered into the agreement or undertaking with the
director and filed the agreement and the security therefor as prescribed
in ORS 716.070. [Amended by 1973 c.797 §358; 1997 c.631 §340] (1) An Oregon
nonstock bank may amend its articles of incorporation, from time to time,
in any and as many respects as may be desired, so long as its articles of
incorporation as amended contain only such provisions as might be
lawfully contained in original articles of incorporation at the time of
making such amendment.
(2) In particular, and without limitation upon such general power
of amendment, an Oregon nonstock bank may amend its articles of
incorporation, from time to time, so as:
(a) To change its corporate name.
(b) To change its period of duration.
(c) To change, enlarge or diminish its corporate purposes. [1979
c.88 §18; 1997 c.631 §341] The articles of
incorporation of an Oregon nonstock bank may be amended by a resolution
adopted by a majority of the directors of the Oregon nonstock bank. Any
number of amendments may be submitted to the directors and voted upon by
them at one meeting. [1979 c.88 §19; 1997 c.631 §342] The articles of
amendment shall be executed in duplicate by the Oregon nonstock bank by
its president or a vice president and by its cashier, its secretary or an
assistant secretary, and shall set forth:
(1) The name of the Oregon nonstock bank.
(2) If the amendment alters or changes any provision of the
original or amended articles of incorporation, an identification by
reference or description of the affected provision and a statement of its
text as it is amended to read. If the amendment strikes or deletes any
provision of the original or amended articles of incorporation, an
identification by reference or description of the provision so stricken
or deleted and a statement that it is stricken out or deleted. If the
amendment is an addition to the original or amended articles of
incorporation, a statement of that fact and the full text of each
provision added.
(3) The date of the adoption of the amendment by the directors.
[1979 c.88 §20; 1997 c.631 §343]
(1) An Oregon nonstock bank may by action taken in the same manner as
required for amendment of its articles of incorporation adopt restated
articles of incorporation. The restated articles of incorporation may
contain any changes in the articles of incorporation that could be made
by amendment regularly adopted. Adoption of restated articles of
incorporation containing any such changes shall have the effect of
amending the existing articles of incorporation to conform to the
restated articles of incorporation. Restated articles of incorporation
shall contain a statement that they supersede the theretofore existing
articles of incorporation and amendments thereto.
(2) Restated articles of incorporation shall contain all the
statements required by this chapter to be included in original articles
of incorporation except that no statement shall be made with respect to
the number, names and addresses of directors constituting the initial
board of directors or the name of each incorporator, or the sums each
incorporator contributed to the initial guaranty fund.
(3) Restated articles of incorporation when executed and filed in
the manner prescribed by this chapter for articles of amendment shall
supersede the theretofore existing articles of incorporation and
amendments thereto. The Director of the Department of Consumer and
Business Services shall upon request certify a copy of the articles of
incorporation, or the articles of incorporation as restated, or any
amendments to either thereof.
(4) The restated articles of incorporation, when submitted for
filing, shall be accompanied by a statement, executed in duplicate by the
Oregon nonstock bank by an authorized officer, setting forth:
(a) The name of the Oregon nonstock bank.
(b) The date of the adoption of the restated articles of
incorporation by the directors. [1979 c.88 §23; 1997 c.631 §344] The initial bylaws of an Oregon savings bank shall
be adopted by its board of directors. The power to alter, amend or repeal
the bylaws or adopt new bylaws shall be vested in the board of directors
unless, in the case of an Oregon stock savings bank, such power is
reserved to the stockholders by the articles of incorporation or bylaws.
The bylaws may contain any provisions for the regulation and management
of the affairs of the Oregon savings bank as are not inconsistent with
law or the articles of incorporation. [1997 c.631 §364] (1) Each Oregon
savings bank shall continuously maintain in this state a registered agent
and registered office that may be, but need not be, the same as any of
its places of business.
(2) A registered agent shall be:
(a) An individual who resides in this state and whose business
office is identical to the registered office;
(b) A domestic corporation, domestic limited liability company,
domestic professional corporation or domestic nonprofit corporation whose
business office is identical to the registered office; or
(c) A foreign corporation, foreign limited liability company,
foreign professional corporation or foreign nonprofit corporation
authorized to transact business in this state whose business office is
identical to the registered office. [2005 c.192 §8] (1) An Oregon
savings bank may change its registered office or registered agent by
delivering to the Director of the Department of Consumer and Business
Services for filing a statement of change that sets forth:
(a) The name of the Oregon savings bank;
(b) If the registered office is to be changed, the address,
including street and number, of the new registered office;
(c) If the registered agent is to be changed, the name of the new
registered agent and that the new agent has consented to the appointment;
and
(d) That after the change or changes are made, the street addresses
of its registered office and the business office of its registered agent
will be identical.
(2) If a registered agent changes the street address of the agent’s
business office, the registered agent shall change the street address of
the registered office of the Oregon savings bank for which the agent is
the registered agent by notifying the Oregon savings bank in writing of
the change and signing, either manually or in facsimile, and delivering
to the director a statement that complies with the requirements of
subsection (1) of this section and recites that the Oregon savings bank
has been notified of the change.
(3) The filing of the statement by the director terminates the
existing registered office or agent, or both, on the effective date of
the filing and establishes the newly appointed registered office or
agent, or both, as that of the Oregon savings bank. [2005 c.192 §9](1) A registered agent may resign as agent upon
delivering a signed statement to the Director of the Department of
Consumer and Business Services and giving notice in the form of a copy of
the statement to the Oregon savings bank. The statement may include a
statement that the registered office is also discontinued.
(2) Upon delivery of the signed statement, the director shall file
the resignation statement. The copy of the statement given to the Oregon
savings bank under subsection (1) of this section shall be addressed to
the Oregon savings bank at its mailing address or principal office as
shown by the records of the director.
(3) The agency appointment is terminated and the registered office
discontinued, if so provided, on the 31st day after the date on which the
statement was filed by the director unless, prior to that date, the
Oregon savings bank appoints a successor registered agent as provided in
ORS 716.187, thereby terminating the capacity of such agent. [2005 c.192
§10] (1) The
registered agent appointed by an Oregon savings bank shall be an agent of
the Oregon savings bank upon whom any process, notice or demand required
or permitted by law to be served upon the Oregon savings bank may be
served.
(2) The Director of the Department of Consumer and Business
Services shall be an agent of an Oregon savings bank, including a
dissolved Oregon savings bank, upon whom any such process, notice or
demand may be served whenever the Oregon savings bank fails to appoint or
maintain a registered agent in this state or whenever the Oregon savings
bank’s registered agent cannot with reasonable diligence be found at the
registered office.
(3) Service shall be made on the director by:
(a) Serving the director or a clerk on duty at the office of the
director a copy of the process, notice or demand, with any papers
required by law to be delivered in connection with the service, and the
required fee for each party being served or by mailing to the office of
the director a copy of the process, notice or demand and the required fee
for each party being served by certified or registered mail;
(b) Transmittal by the person instituting the proceedings of notice
of the service on the director and a copy of the process, notice or
demand and accompanying papers to the Oregon savings bank being served by
certified or registered mail:
(A) At the last registered office of the Oregon savings bank as
shown by the records of the director; and
(B) At such address the use of which the person initiating the
proceedings knows or, on the basis of reasonable inquiry, has reason to
believe is most likely to result in actual notice; and
(c) Filing with the appropriate court or other body, as part of the
return of service, the return receipt of mailing and an affidavit of the
person initiating the proceedings stating that this section has been
complied with.
(4) The director shall keep a record of all processes, notices and
demands served upon the director under this section.
(5) After completion of initial service upon the director, no
additional documents need be served upon the director to maintain
jurisdiction in the same proceeding or to give notice of any motion or
provisional process.
(6) Nothing contained in this section shall limit or affect the
right to serve any process, notice or demand required or permitted by law
to be served upon an Oregon savings bank in any other manner now or
hereafter permitted by law, or enlarge the purposes for which service on
the director is permitted where such purposes are limited by other
provisions of law. [2005 c.192 §11]DIRECTORS (1) Subject to the written
approval of the Director of the Department of Consumer and Business
Services, the board of directors of a savings bank may fix the fee to be
paid directors who are not acting as officers or employees of the savings
bank.
(2) An attorney for a savings bank, although a director thereof,
may receive a reasonable compensation for professional services. [1973
c.797 §359] (1) The board of
directors of an Oregon savings bank shall manage and control the affairs
of the Oregon savings bank. The board shall consist of not fewer than
five members.
(2) A person shall not be a director of an Oregon savings bank if
the person:
(a) Has been adjudicated a bankrupt, taken the benefit of any
insolvency law or made a general assignment for the benefit of creditors
within the 10 years immediately prior to the person’s election as a
director.
(b) Has allowed a judgment recovered against the person for a sum
of money to remain unsatisfied of record or unsecured on appeal for a
period of more than three months. [Amended by 1961 c.278 §1; 1971 c.219
§1; 1973 c.797 §360; 1983 c.37 §26; 1985 c.786 §47; 1997 c.631 §345] (1) A
board member of an Oregon nonstock bank may be removed from office by the
affirmative vote of three-fourths of the directors at any regular meeting
of the board if:
(a) The board member’s conduct is of such character as to be
injurious to the Oregon nonstock bank;
(b) A written copy of the charges made against the board member has
been served upon the board member personally, and upon the Director of
the Department of Consumer and Business Services, at least two weeks
before the meeting; and
(c) The vote of the directors by ayes and noes is entered in the
record of the minutes of the meeting.
(2) The office of a director of an Oregon nonstock bank immediately
becomes vacant if the director:
(a) Becomes disqualified for any of the reasons specified in ORS
716.210 (2).
(b) Has failed to attend the regular meetings of the board of
directors, or to perform any of the duties as director, for a period of
six successive months, unless excused by the board for the failure.
(3) A director who has forfeited or vacated office is not eligible
for reelection unless the forfeiture or vacancy occurred solely by reason
of the director’s neglect of official duties as prescribed in subsection
(2)(b) of this section. [Amended by 1961 c.278 §2; 1973 c.797 §364; 1997
c.631 §346]INVESTMENTS AND LOANS A savings bank may invest its
assets only as provided by ORS 716.420 to 716.590. [Amended by 1973 c.797
§366; 1979 c.88 §27] An Oregon savings bank may invest
the funds mentioned in ORS 716.410:
(1) In the obligations specified in ORS 708A.115 (1), without
limitation.
(2) Subject to a limitation of five percent of the assets of the
Oregon savings bank, in the obligations specified in ORS 708A.115 (2).
(3) In shares of any mutual fund or unit trust, the assets of which
are invested solely in obligations described in and limited under ORS
708A.115. [Amended by 1959 c.185 §12; 1961 c.157 §1; 1963 c.407 §1; 1971
c.219 §2; 1973 c.797 §367; 1981 c.192 §26; 1985 c.786 §53; 1997 c.631
§347] (1) A savings
bank may invest the funds mentioned in ORS 716.410 in equipment trust
certificates that are, at the time of purchase, rated in one of the three
highest grades by a recognized investment service organization that has
been engaged regularly and continuously for a period of not less than 10
years in rating bonds.
(2) Not more than 15 percent of the assets of a savings bank may be
invested under this section and not more than three percent of its assets
may be invested in any one corporation. [1959 c.185 §11 (enacted in lieu
of 716.440); 1973 c.797 §368] An Oregon savings bank
may invest the funds mentioned in ORS 716.410:
(1) In the notes of any person, with a pledge as collateral of
securities or personal property which are eligible for investment under
ORS 716.410 to 716.590 and have an actual cash market value at least 25
percent greater than the amount of the loan.
(2) In the obligations of any person secured by an assignment of a
life insurance policy, having a cash surrender value of not less than 100
percent of the amount of the obligations, plus an amount equal to one
annual premium on the insurance policy.
(3) In loans, secured or unsecured, insured or guaranteed in part
or in full by the United States or any instrumentality thereof, or by
this state or instrumentality thereof, or for which a conditional
guarantee has been issued. The limitations prescribed by ORS 716.552 to
716.574 shall not apply to loans made under this subsection, but the
aggregate amount of loans made under this subsection and ORS 716.552
shall not exceed 85 percent of the assets of any Oregon savings bank.
(4) In loans secured as specified under ORS 708A.345.
(5) In commercial paper with a maturity of 180 days or less,
subject to a limitation of one percent of the total assets of the Oregon
savings bank for each obligor.
(6) In unsecured loans, retail installment contracts, leases and
loans secured by security interests in personal property and by mortgages
and deeds of trust covering real estate, that are not otherwise eligible
for investment by an Oregon savings bank when the obligations are for
home or property repairs, alterations, appliances, improvements or
additions, home furnishing, for installation of underground utilities,
for educational purposes, for manufactured dwellings used or to be used
for permanent or semipermanent housing or for any other nonbusiness
purpose, if:
(a) The application for the loan states that the proceeds are to be
used for one of the purposes listed in this subsection.
(b) The loans evidenced by a note or other evidence of obligation
made pursuant to this subsection to any one individual do not exceed one
percent of the assets of the Oregon savings bank and the aggregate amount
of such loans do not exceed 20 percent of the assets of the Oregon
savings bank.
(c) In the case of leases, the lease conforms to ORS 708A.180 and
708A.560.
(7) In secured or unsecured commercial, corporate, business and
agricultural loans or leases of personal property, not to exceed 25
percent of the assets of the Oregon savings bank and not to exceed one
percent of its assets to any one person. Leases shall conform to ORS
708A.180 and 708A.560.
(8) Subsection (5) of this section shall not be construed to permit
an Oregon savings bank to make loans on or for inventory of articles held
for sale as merchandise, except manufactured dwellings. [Amended by 1963
c.393 §1; 1969 c.211 §2; 1971 c.219 §3; 1973 c.797 §369; 1975 c.544 §47;
1977 c.135 §33; 1979 c.88 §28; 1981 c.192 §27; 1983 c.37 §28; 1985 c.786
§54; 1987 c.528 §3; 1993 c.52 §1; 1997 c.631 §348] A
savings bank may invest the funds mentioned in ORS 716.410 in promissory
notes made payable on demand to the order of the savings bank, secured by
the pledge and assignment of a time or savings account or any other kind
of deposit account, including but not limited to an automatic savings to
checking transfer account or a negotiable order of withdrawal account, if
the account is fully or partially federally insured as collateral
security for the payment of the notes. The loan shall not exceed 100
percent of the balance due the owner of the time or savings account.
[Amended by 1961 c.239 §1; 1973 c.797 §370; 1981 c.192 §28](1) A savings bank may invest the funds
mentioned in ORS 716.410 in:
(a) Bankers’ acceptances and bills of exchange of the kind and
maturities made eligible by law for rediscount with Federal Reserve
Banks, if they are accepted by an institution or a national bank.
(b) Bills of exchange drawn by the seller on the purchaser of goods
and accepted by the purchaser, if they are of the kind and maturities
made eligible by law for rediscount with Federal Reserve Banks and are
indorsed by a national bank or an institution.
(c) Savings or time accounts insured in part or wholly by an agency
of the federal government.
(2) Not more than 20 percent of the assets of a savings bank may be
invested in the acceptances mentioned in subsection (1) of this section.
Not more than five percent of the aggregate credited to the depositors of
a savings bank may be invested in the acceptances of or deposited with an
institution or a national bank of which a director of the savings bank is
a director. The aggregate amount of the liability of an institution or a
national bank to a savings bank, whether as principal or indorser, for
acceptances held by the savings bank and deposits made with it, may not
exceed 25 percent of the stockholders’ equity of the institution or of
the paid-in capital and retained earnings of the national bank. [Amended
by 1973 c.797 §376; 1999 c.59 §223] A
savings bank may invest the funds mentioned in ORS 716.410 in the bonds,
notes and debentures of any corporation incorporated under the laws of
and operating in any state of the United States, which are rated at the
time of purchase under authority of this section in one of the four
highest grades by a recognized service organization that has been
regularly engaged for a period of 10 years or more in rating or grading
bonds. However, not more than one percent of the assets of the savings
bank shall be invested in bonds, notes and debentures of any one
corporation, and not more than 20 percent of the assets shall be invested
under this section. [Amended by 1969 c.211 §4; 1971 c.219 §5; 1973 c.797
§377; 1977 c.135 §34; 1981 c.192 §29]A savings bank may invest the funds mentioned in ORS 716.410
in the common stock of:
(1) Any federally chartered corporation that is chartered for the
purpose of providing secondary markets for the sale of mortgages by
savings banks.
(2) The Federal Home Loan Bank. [1975 c.544 §46]A savings bank may invest not more than five percent
of its assets in each of the following categories of investments:
(1) In obligations issued or guaranteed by the International Bank
for Reconstruction and Development.
(2) In obligations issued or guaranteed by the Inter-American
Development Bank.
(3) In obligations issued or guaranteed by the Asian Development
Bank.
(4) In obligations issued or guaranteed by the African Development
Bank. [1959 c.185 §2; 1973 c.797 §378; 1985 c.456 §1] A savings bank
may invest the funds mentioned in ORS 716.410 in bonds issued by the
Dominion of Canada for which the faith of the Dominion of Canada is
pledged, or bonds issued or guaranteed by a province of the Dominion of
Canada. Such investments may be made only if:
(1) The interest and principal of such bonds is payable in the
United States, or with exchange to a city in the United States, in lawful
money of the United States or its equivalent; and
(2) The bonds at the time of purchase pursuant to the authority of
this section are rated in one of the four highest grades by a rating
organization recognized in the United States that has been regularly
engaged for a period of 10 years or more in rating or grading bonds.
[1959 c.185 §3; 1977 c.135 §35]A savings bank may invest the funds mentioned
in ORS 716.410 in notes or bonds, secured by first or junior mortgages or
deeds of trust upon real estate. [Formerly 716.470; 1979 c.199 §8; 1979
c.810 §3; 1985 c.554 §5](1) In participation with other
mortgagees, a savings bank may invest the funds mentioned in ORS 716.410
in notes or bonds secured by mortgage or deed of trust upon real estate.
(2) An agreement setting forth the manner in which the
participating mortgagees shall administer the mortgage and acquired real
estate, if any, shall be executed on behalf of each of the mortgagees by
two of their authorized officers. [1973 c.797 §371a; 1977 c.135 §36; 1985
c.554 §6] A
savings bank may invest in loans secured by pledge of the notes or bonds
specified in ORS 716.552, if the notes or bonds pledged as collateral are
at least 25 percent more than the loans which they secure. [1973 c.797
§371b]A savings bank may invest the funds
mentioned in ORS 716.410, in notes or bonds secured by mortgage or deed
of trust upon leasehold estates in real property, if the lease is binding
upon the owners of the fee title to the leased premises, in full force
and free from default. [1973 c.797 §371c; 1985 c.554 §7]A savings bank
may invest the funds mentioned in ORS 716.410 in notes or bonds secured
by a mortgage, deed of trust or similar instrument to finance the
construction of buildings and improvements appurtenant thereto, if before
making the investment, the savings bank requires sufficient guarantee
from the contractor, builder or owner for the completion of the
construction in accordance with the plans and specifications and within
the estimated contract price for the construction. Moneys shall be
advanced from time to time during the progress of construction upon a
certificate of estimate to be furnished by the architect, contractor,
builder or superintendent in charge of construction or the owner. [1973
c.797 §371d; 1977 c.135 §37; 1985 c.554 §8]A savings bank may invest the
funds mentioned in ORS 716.410 in notes or bonds secured by a mortgage,
deed of trust or other instrument for the purpose of financing the
acquisition and development of land for primarily commercial, industrial
or residential usage. A loan may be made on real estate which is to be
improved with the developments to be paid for from the proceeds of the
loan if the proceeds will be used for that purpose. [1973 c.797 §371e;
1985 c.554 §9]
In loans upon real property, the borrower shall furnish the savings bank
with:
(1) A note or bond secured by a mortgage or deed of trust on the
real estate upon which the loan is made; and
(2) A policy of title insurance issued by a reliable title
insurance company authorized to insure titles within the state in which
the property is situated. [1973 c.797 §371f; 1985 c.554 §10]If a loan is secured by
mortgage, deed of trust or other similar instrument on real estate, the
mortgage, deed of trust or other instrument shall contain provisions
requiring the maintenance of insurance on the buildings on the premises
to the reasonable amount as stipulated in the mortgage, deed of trust or
other instrument. The policy shall be payable, in case of loss, to the
savings bank and shall be deposited with the savings bank except where
the savings bank’s interest is insured under a blanket policy of
insurance. [1973 c.797 §371g; 1985 c.554 §11](1) An application for a
mortgage loan or renewal or extension of a mortgage loan shall be written
and show the date, name of the applicant, amount of loan requested and
the security offered.
(2) A mortgage loan shall be granted only upon the written report
of at least two members of the board of investment of the savings bank
certifying on the application, according to their best judgment, the
value of the property to be mortgaged and recommending the loan. The
application and written report shall be filed and preserved with the
savings bank’s records.
(3) Every mortgage and deed of trust and every assignment of a
mortgage taken or held by a savings bank shall be held in its own name
and immediately recorded in the office of the proper officer of the
county in which the mortgaged property is located. [1973 c.797 §371h](1) The purchase of a bona fide contract covering a
sale of real estate is a loan on real estate within the meaning of ORS
716.552 to 716.574.
(2) A savings bank may acquire contracts covering a sale of real
estate if all other requirements of ORS 716.552 to 716.574 are satisfied.
[1973 c.797 §371i; 1985 c.554 §12]A savings bank may take and hold by purchase and assignment from
third persons notes, bonds, mortgages and deeds of trust eligible for
investment under ORS 716.552 to 716.574. [Formerly 716.480] (1)
If deposits are less than $1 million, a single loan on real estate shall
not exceed $10,000. When deposits exceed $1 million but are less than $2
million, a single loan on real estate shall not exceed two and one-half
percent of the deposits. When deposits exceed $2 million, a single loan
on real estate shall not exceed two percent of the savings bank’s deposit
liability.
(2) A loan may exceed the limitations prescribed in subsection (1)
of this section if the borrower furnishes the savings bank with a copy of
an agreement entered into with a financially responsible person wherein
the person agrees to refinance or repurchase, without recourse, the
entire loan:
(a) Upon completion of the construction, if the loan is a
construction loan; or
(b) Within six months from the date of the loan, if the loan is not
a construction loan. [Formerly 716.500] (1) A savings bank may issue and
honor credit cards for the purpose of making loans to one or more
persons. The loans shall be made by the means determined by the board of
investment of the savings bank including, but not limited to, the means
of paying to or for the account of a party the amount of a sales slip,
voucher or other evidence of a transaction in which goods or services are
sold or cash advanced to the party in reliance on a credit card issued by
the savings bank.
(2) The savings bank may advance cash to a person holding a credit
card issued by the savings bank or any other person who, directly or
indirectly, has agreed to pay to or for the account of the savings bank
the amount of cash advanced by it in reliance on credit cards issued by
the other person.
(3) Credit cards, loans, advances and documents used in connection
with the use of credit cards shall be in the form and upon the terms and
conditions prescribed by the board of investment of the savings bank,
including, but not limited to, terms and conditions as to revocation,
rates of interest and other charges, maturity dates and security, if any.
(4) A savings bank may become a stockholder, member of, or
otherwise affiliated with, an organization that, in the opinion of the
board of directors of the savings bank, will enable the savings bank to
exercise fully the powers granted under this section. [1973 c.797 §375a](1) A savings bank
may invest the funds mentioned in ORS 716.410 in the capital stock of a
corporation organized under the laws of this state if:
(a) All of the capital stock of the corporation is owned by one or
more savings banks organized under the laws of this state;
(b) The activities of the corporation are performed directly or
through one or more wholly owned subsidiaries, and consist only of one or
more of the following:
(A) Originating, purchasing, selling and servicing education loans
and loans and participations in loans secured by first liens upon real
estate and manufactured dwellings, including brokerage and warehousing of
loans;
(B) Making any investment which would be an authorized investment
of a savings bank organized under the laws of this state;
(C) Performing services for savings banks organized under the laws
of this state; or
(D) Making investments in unimproved real estate for the purpose of
prompt development and subdivision;
(c) The aggregate outstanding investment in the capital stock,
obligations, or other securities of service corporations and subsidiaries
thereof, including all loans, secured and unsecured, to the service
corporations or any subsidiaries thereof and to joint ventures of the
service corporation or subsidiaries, whether or not the savings bank is a
stockholder in the service corporation, do not exceed three percent of
the savings bank’s assets. For the purpose of this subsection the term
“aggregate outstanding investment” means the sum of the amounts paid for
the acquisition of capital stock or securities and amounts invested in
obligations of service corporations, less amounts received from the sale
of capital stock or securities of service corporations and amounts paid
to the savings bank to retire obligations of service corporations; and
(d) The corporation executes and files with the Director of the
Department of Consumer and Business Services a written agreement in the
form prescribed by the Director that the corporation will permit and pay
the cost of examinations and audits by the director as the director
considers necessary.
(2) If one of the savings banks holds more than 40 percent of the
stock, the corporation, including any subsidiary, shall not incur or have
outstanding at any time debts in excess of the following limitations:
(a) In the case of an unsecured debt other than to a holder of its
capital stock, the lesser of an amount equal to one percent of the assets
of the holder or holders of its capital stock or to the investment in the
stock, obligations or other securities of the corporation by the holder
or holders of its capital stock, excluding secured debts owed by the
corporation to the holder or holders; and
(b) In the case of a secured debt, other than to a holder of its
capital stock, the lesser of an amount equal to four percent of the
assets of the holder or holders of its capital stock or four times the
investment in the stock obligations or other securities of the
corporation by the holder or holders of its capital stock excluding
secured debts owed by the corporation to the holder or holders. [1973
c.797 §375b; 1981 c.192 §31; 1987 c.911 §15; 1999 c.59 §224; 2005 c.80 §5] A savings bank may
invest the funds mentioned in ORS 716.410 in investments which do not
qualify under any of the provisions of ORS 716.420 to 716.590, however an
investment shall not be made under this section:
(1) If the amount of the investment exceeds one percent of the
assets of the savings bank or 10 percent of the total amount of its
guaranty fund, undivided profits and unallocated reserves, whichever is
less;
(2) If the aggregate amount of all the investments exceeds or by
the making of the investment will exceed five percent of its assets; or
(3) In the equity securities of any one issuer if the aggregate
amount invested by the savings bank under this section together with the
amount invested in the equity securities of the issuer under any other
provision of law exceeds or by the making of the investment will exceed
the limitations under subsections (1) and (2) of this section. [1973
c.797 §375c; 1981 c.192 §32] A savings bank may
pledge its assets to secure public funds as provided under ORS chapter
295. For the purposes of this section, “public funds” has the meaning
ascribed to it by ORS 295.005. [1973 c.288 §7; 1999 c.311 §6]An Oregon savings bank may acquire
and hold all or part of the stock of a corporation that is or may
thereafter be licensed as an insurance producer as required by ORS
744.053 to transact one or more of the classes of insurance described in
ORS 744.062, subject to the following requirements:
(1) The acquisition and holding of such stock shall be subject to
the approval of the Director of the Department of Consumer and Business
Services. The director shall base consideration for approval on the
condition of the Oregon savings bank, the adequacy of a formal business
plan for the insurance activities and the existence of satisfactory
management for the corporation.
(2) The director may revoke or restrict the ongoing authority of
the Oregon savings bank to hold stock in the corporation if the condition
of the Oregon savings bank substantially deteriorates or if the insurance
activities are adversely affecting the Oregon savings bank.
(3) For each calendar year during which an Oregon savings bank owns
all or part of any corporation licensed as an insurance producer as
required by ORS 744.053, the Oregon savings bank shall file a written
report with the director. The report shall be filed no later than March
31 of the following year and shall disclose the insurance activities of
the corporation. The required contents of the report shall be established
by the director by rule. The reports filed with the director under this
subsection shall be available for public inspection in the office of the
director.
(4) The corporation shall not in any manner use customer
information obtained by the Oregon savings bank from another insurance
producer to promote, develop or solicit insurance business for the
corporation unless the other insurance producer consents to such use of
the customer information.
(5) The corporation shall be subject to the limitations applicable
to depository institutions under ORS 746.213 to 746.219. For the purpose
of this subsection, “depository institution” has the meaning given that
term in ORS 746.213. [1987 c.916 §7; 1989 c.331 §31; 1989 c.701 §67; 1997
c.831 §§4,4a; 2001 c.191 §55; 2003 c.363 §10; 2003 c.364 §61a; 2005 c.194
§3]POWERS, DUTIES AND REGULATION (1)
Notwithstanding any provision contained in ORS chapters 706 to 715,
except as limited by articles of incorporation of an Oregon savings bank:
(a) Oregon savings banks are authorized to engage in those
activities in which federal savings banks may engage and may acquire and
retain those investments that federal savings banks may acquire and
retain, subject to the conditions and restrictions that apply to federal
savings banks.
(b) Oregon savings banks shall have all powers necessary or
convenient to effect any or all of the purposes for which the Oregon
savings bank is organized or to perform any or all of the acts expressly
or impliedly authorized or required under ORS chapter 706 or this chapter.
(c) Subsidiaries of Oregon savings banks are authorized to engage
in those activities in which subsidiaries of federal savings banks may
engage and may acquire and retain those investments that subsidiaries of
federal savings banks may acquire and retain, subject to the conditions
and restrictions that apply to subsidiaries of federal savings banks.
(d) Activities and investments referred to in paragraphs (a) to (c)
of this subsection that require notice to or approval of the Director of
the Office of Thrift Supervision shall not require such notice or
approval but shall require notice to or approval of the Director of the
Department of Consumer and Business Services. For purposes of this
section, references in federal statutes, regulations and other
authorities that prescribe permissible activities and investments of
federal savings banks and subsidiaries of federal savings banks shall be
considered whenever practicable to refer to comparable provisions of
Oregon law. The Director of the Department of Consumer and Business
Services may approve an activity or investment that requires director
approval subject to such conditions as the director deems appropriate.
(2) The purpose of this section is to grant Oregon savings banks
and their subsidiaries investment and activity powers and authorities
equivalent to that permitted federal savings banks under federal law.
[1973 c.797 §379; 1987 c.197 §9; 1989 c.324 §73; 1997 c.631 §350] A savings
bank, subject to the restrictions and limitations contained in this
chapter, may:
(1) Receive time deposits and demand deposits of money without
restriction.
(2) Offer time and savings accounts and other kinds of deposit
accounts, including but not limited to automatic savings to checking
transfer accounts and negotiable order of withdrawal accounts, to
individuals and nonprofit corporations.
(3) Exercise by its board of directors or authorized officers or
agents, subject to law, all powers necessary to carry on the business of
savings banks.
(4) Pay depositors when requested by them, by drafts upon deposits
to the credit of the savings bank in any city in the United States, and
charge current rates of exchange for the drafts.
(5) Borrow money, and pledge securities to secure the money
borrowed, but any amount borrowed in excess of 20 percent of deposits
shall first be approved in writing by the Director of the Department of
Consumer and Business Services. The failure to obtain the approval of the
director shall not make an excess loan invalid as to the lender.
(6) Collect or protest promissory notes or bills of exchange owned
by the savings bank or held by it as collateral, and charge the usual
fees for the collection or protest.
(7) Sell gold or silver received in payment of interest or
principal of obligations owned by the savings bank, or from depositors in
the ordinary course of business.
(8) Become a member of the Federal Reserve Bank or the Federal Home
Loan Bank of the district in which the savings bank is located.
(9) Conduct a trust business and exercise all the powers of a trust
company as defined by ORS 709.150 upon compliance with the laws of this
state relating to the regulations of a trust business.
(10) Be licensed as an insurance producer as required by ORS
744.053 to transact one or more of the classes of insurance described in
ORS 744.062 except for title insurance. With respect to the exercise of
the power granted under this subsection, other than the maintenance of
any insurance license granted to a savings bank prior to September 27,
1987, or the licensing of the savings bank to transact types of limited
class insurance, as that term is defined in ORS 744.052, designated by
the Director of the Department of Consumer and Business Services:
(a) The conduct by the savings bank of insurance producer
activities shall be subject to the approval of the director. The director
shall base consideration for approval on the condition of the savings
bank, the adequacy of a formal business plan for the insurance activities
and the existence of satisfactory management for the insurance activity.
(b) The director may revoke or restrict the ongoing authority of
the savings bank to engage in the insurance producer activity if the
condition of the savings bank substantially deteriorates or if the
insurance activities are adversely affecting the savings bank.
(c) The savings bank shall file a written report with the director
no later than March 31 each year disclosing the insurance activities of
the savings bank. The required contents of the report shall be
established by the director by rule. The reports filed with the director
under this paragraph shall be available for public inspection in the
office of the director.
(d) The savings bank shall not in any manner use customer
information obtained from another insurance producer to promote, develop
or solicit insurance business for the savings bank unless the other
insurance producer consents to such use of the customer information.
[Amended by 1955 c.690 §1; 1957 c.167 §1; 1969 c.211 §5; 1971 c.219 §6;
1973 c.797 §380; 1981 c.192 §33; 1987 c.916 §5; 1989 c.331 §32; 1989
c.701 §68; 1993 c.52 §2; 1995 c.334 §4; 1997 c.831 §5; 2001 c.191 §56;
2003 c.363 §11; 2003 c.364 §62a](1) An Oregon nonstock bank may issue transferable certificates
showing the amounts contributed by any incorporator or director to the
guaranty or expense funds of the Oregon nonstock bank.
(2) The certificate shall show that it does not constitute a
liability of the Oregon nonstock bank, except as provided in ORS 716.800.
(3) A certificate shall not be transferred by an incorporator or
director without the prior written consent of the Director of the
Department of Consumer and Business Services. [1973 c.797 §381; 1997
c.631 §351] (1) The cost
of the land and buildings to be used by an Oregon nonstock bank for the
transaction of its business shall not exceed:
(a) 50 percent of the guaranty fund and undivided profits account
of the Oregon nonstock bank; or
(b) 50 percent of the capital, as defined in ORS 708A.290, of the
Oregon stock savings bank.
(2) The Director of the Department of Consumer and Business
Services may approve an amount in excess of the limitation prescribed
under subsection (1) of this section if the director finds that an excess
amount is reasonably necessary for the operation of the business and does
not adversely affect the public interest. [Amended by 1971 c.219 §8; 1973
c.797 §382; 1997 c.631 §352] (1) If
at the close of any dividend period the guaranty fund of an Oregon
nonstock bank is impaired or is less than 10 percent of the amount due to
depositors, a sum not less than five percent of the net earnings for the
period shall be deducted from the net earnings and credited to its
guaranty fund, after declaration of dividends, if the deduction will not
compel the Oregon nonstock bank to reduce its dividends to depositors
below the rate of one percent per annum.
(2) If the guaranty fund accumulated from earnings equals or
exceeds 10 percent of the amount due depositors and the net earnings for
a dividend period are sufficient, the minimum dividend shall be four
percent, unless a smaller percentage is authorized by rule promulgated by
the Director of the Department of Consumer and Business Services.
[Amended by 1973 c.797 §386; 1975 c.544 §48; 1997 c.631 §353] (1) To determine the amount
of a guaranty fund of an Oregon nonstock bank, the total liabilities due
and accrued, undivided profits and net earnings since the last
declaration of dividends shall be subtracted from the total assets. In
determining the value of the assets:
(a) Securities, other evidences of indebtedness and other
interest-bearing obligations shall be carried at a sum, not to exceed
their cost to the Oregon nonstock bank, calculated according to accepted
principles of accounting.
(b) Real estate shall not be estimated above cost unless its fair
market value has been determined by written appraisal made by a certified
appraiser and approved by the board of the Oregon nonstock bank, in which
case the real estate may be carried at the fair market value determined
by the appraisal. If the real estate has been acquired by foreclosure or
judgment at more than its actual fair market value, the value of the real
estate shall be determined by written appraisal made by a certified
appraiser and approved by the board of the Oregon nonstock bank and filed
with the Oregon nonstock bank.
(c) Except as provided in subsection (2) of this section, the
following shall be excluded:
(A) Assets that have been disallowed by the Director of the
Department of Consumer and Business Services or the directors of the
Oregon nonstock bank;
(B) Debts owed to an Oregon nonstock bank that have remained due
and upon which no interest has been paid for more than one year; and
(C) Debts on which a judgment has been recovered which has remained
unsatisfied for more than two years.
(2) A debt mentioned in subsection (1)(c) of this section may be
carried as an asset and will not be excluded in determining the value of
the assets if:
(a) The director, upon application by the Oregon nonstock bank,
fixes a valuation at which the debt may be carried as an asset; or
(b) The debt is secured by a first mortgage upon real estate and is
carried as an asset at the amount of the debt secured by the mortgage or
at the actual fair market value of the real estate as determined by
written appraisal made by a certified appraiser and approved by the board
of the Oregon nonstock bank and filed with the Oregon nonstock bank,
whichever is smaller. [Amended by 1973 c.797 §387; 1997 c.631 §354; 2003
c.576 §551](1) Contributions made by the incorporators or directors
to the expense fund may be repaid pro rata to the contributors from that
portion of the guaranty fund created from earnings if the payments will
not reduce the guaranty fund below 10 percent of the total amount due
depositors. If the Oregon nonstock bank liquidates before the
contributions to the expense fund have been repaid, any contributions to
the expense fund remaining after the payment of the expenses of
liquidation and the payment to depositors in full may be repaid to the
contributors pro rata.
(2) When the contributions of the incorporators or directors to the
expense fund have been returned to the contributors, the contributions
made to the guaranty fund by incorporators or directors may be returned
to them pro rata from that portion of the guaranty fund created from the
earnings of the Oregon nonstock bank, if the repayments will not reduce
the earned portion of the guaranty fund below 10 percent of the amount
due depositors. If the Oregon nonstock bank liquidates before the
contributions to the guaranty fund have been repaid, any portion of the
contributions not needed for the payment of the expenses of liquidation,
the payment of depositors in full and the repayment of contributions to
the expense fund may be repaid to the contributors pro rata.
(3) The board of directors may create a fund to be known as the
guarantor’s reimbursement fund. One percent of the net earnings at the
close of any dividend period may be paid in the guarantor’s reimbursement
fund if it can be done without reducing the dividend rate below one
percent per annum. The guarantor’s reimbursement fund may accumulate
until it is equal to the amount contributed by the incorporators to the
guaranty and expense funds, at which time the fund shall be used to repay
the incorporators the amounts contributed by them to the guaranty and
expense funds, if that portion of the guaranty fund created from earnings
amounts to at least $15,000. [Amended by 1973 c.797 §388; 1997 c.631 §355] Earnings of a savings bank shall be
calculated on an accrual basis according to generally accepted accounting
principles. [1973 c.797 §389](1) Every Oregon
nonstock bank shall regulate the rate of dividends upon the amounts to
the credit of its time depositors so that time depositors receive
dividends on their deposits in accordance with the terms of their
respective deposit agreements with the Oregon nonstock bank, after
transferring:
(a) To the guaranty fund any amount considered by the directors to
be expedient and for the security of the depositors; and
(b) To undivided profits, for the purpose of maintaining its rate
of dividends, the amount considered by the directors as wise.
(2) An Oregon nonstock bank may classify its time depositors
according to the character, amount or duration of their deposits with the
Oregon nonstock bank, and may regulate its dividends so that each time
depositor shall receive the same ratable portion of dividends as all
others in the same class of time depositors.
(3) Dividends may be apportioned upon unimpaired contributions to
the initial guaranty fund and to the expense fund, and may be credited
and paid to the contributors. If the guaranty fund of any Oregon nonstock
bank is sufficiently large to permit the return of the contributions, the
contributors may receive dividends on the contributions not exceeding the
highest rate paid to depositors.
(4) An Oregon nonstock bank may issue certificates of deposit and
agree to pay dividends on the amounts deposited at a rate specified in
the certificate for the entire term of the certificate.
(5) An Oregon nonstock bank shall not:
(a) Declare, credit or pay any dividend except as authorized by a
vote of a majority of the board of directors and recorded in its minutes
according to the ayes and noes upon each vote.
(b) Pay any dividend other than the regular monthly, quarterly,
semiannual or annual dividend, or the dividends prescribed in this
subsection.
(c) Declare, credit or pay dividends on any amount to the credit of
a depositor for a longer period than it has been credited, but deposits
made not later than the 10th business day of any month, or withdrawn upon
one of the last three business days of the month ending any quarterly or
semiannual dividend period, may have dividends declared upon them for the
whole of the period or month when they were so deposited or withdrawn. If
authorized in the bylaws, accounts closed between dividend periods may be
credited with dividends at the rate of the last dividend, computed from
the last dividend period to the date when closed.
(6) A notice posted in an Oregon nonstock bank of a change in the
rate of dividends is equivalent to a personal notice. [Amended by 1963
c.409 §1; 1969 c.211 §7; 1971 c.219 §11; 1973 c.797 §390; 1975 c.544 §49;
1983 c.37 §29; 1997 c.631 §356] If any
dividend is declared and credited in excess of profits earned together
with surplus and undivided profits since the last declaration of
dividends and appearing to the credit of the Oregon nonstock bank, after
making the deduction for expenses and the guaranty fund as provided in
ORS 716.780 and 716.830, the directors voting for the dividend shall be
jointly and severally liable to the Oregon nonstock bank for the amount
of the excess so declared and credited. [Amended by 1973 c.797 §391; 1975
c.544 §49a; 1997 c.631 §357]
An Oregon nonstock bank shall not use any sign or notice or publish or
circulate any advertisement in which the surplus or guaranty fund is
stated in excess of its value, as determined under this chapter, unless
the nature of the excess clearly appears. [Amended by 1973 c.797 §392;
1997 c.631 §358]DISSOLUTION; LIQUIDATION(1) Subject to the written approval of the Director of the
Department of Consumer and Business Services and if necessary or
expedient, the board of directors of an Oregon nonstock bank may adopt,
by resolution passed by the affirmative vote of two-thirds of the
directors, at a meeting called for that purpose, a plan to close the
business, liquidate the assets, pay money due first to depositors,
including those depositors whose deposits are uninsured, second to
holders of consumer repurchase agreements, third to holders of capital
notes, and then to other creditors, distribute the remaining assets, if
any, as provided by this chapter and the plan of liquidation and
surrender the corporate charter. The plan shall provide that any assets
remaining after payment of depositors, holders of consumer repurchase
agreements, capital noteholders and other creditors, and payment of the
costs of liquidation and dissolution, shall be distributed to the time
depositors and to other persons entitled thereto according to their
several interests as determined by this chapter and the plan of
liquidation. Each depositor shall receive a share of the remaining assets
based on an apportionment as provided by the plan of dissolution approved
by the director.
(2) Before approving the plan for closing the Oregon nonstock bank
under subsection (1) of this section, the director may make a special
examination of the condition and affairs of the Oregon nonstock bank.
[Amended by 1973 c.797 §394; 1979 c.88 §30; 1983 c.37 §30; 1997 c.631
§360](1) Acting under ORS 716.900 the directors shall direct the
mailing of a written notice of their intention to close the Oregon
nonstock bank to the last-known address of all depositors and other
creditors.
(2) All deposits and amounts reserved for creditors that remain
unclaimed after six months from the date of the written notice required
under subsection (1) of this section shall be reported and transferred by
the directors to the Department of State Lands as unclaimed property
under ORS 98.302 to 98.436 and 98.992.
(3) A copy of the report of unclaimed deposits and amounts reserved
for creditors filed with the Department of State Lands shall be filed
with the Director of the Department of Consumer and Business Services.
[1973 c.797 §395; 1983 c.37 §31; 1993 c.694 §38; 1997 c.631 §361] After the
directors of an Oregon nonstock bank have filed their report and
deposited the unclaimed funds with the Department of State Lands as
required under ORS 716.905, the directors shall report their proceedings
to the Director of the Department of Consumer and Business Services. Upon
filing the report and the petition of the directors with the Director of
the Department of Consumer and Business Services, the director shall
order the charter surrendered, the directors discharged from liability
accruing after the order, and the existence of the Oregon nonstock bank
terminated. [Amended by 1973 c.797 §396; 1997 c.631 §362] An Oregon stock savings bank may go
into voluntary liquidation in accordance with the procedures and subject
to the provisions set forth for institutions in ORS 711.215 to 711.250.
[1997 c.631 §365]CIVIL PENALTIESAny person who violates ORS 716.850 shall
forfeit and pay to the State Treasurer to be deposited in the Consumer
and Business Services Fund a civil penalty in an amount determined by the
Director of the Department of Consumer and Business Services of not more
than $2,500. The civil penalty may be recovered as provided in ORS
706.980. [Formerly 716.855]
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