2007 Oregon Code - Chapter 716 :: Chapter 716 - Savings Banks
Chapter 716 —
Savings Banks
2007 EDITION
SAVINGS BANKS
FINANCIAL INSTITUTIONS
ORGANIZATION
716.024Â Â Â Â Provisions
of Bank Act applicable to
716.028Â Â Â Â Application
for authority to organize; fee; contents
716.032Â Â Â Â Investigation
and ruling on application
716.040Â Â Â Â Articles
of incorporation; contents
716.050Â Â Â Â Approval
of articles; certificate of incorporation; filing
716.055Â Â Â Â Creation
of guaranty and expense funds
716.060Â Â Â Â Guaranty
fund
716.070Â Â Â Â Expense
fund
716.080Â Â Â Â Issuance
of charter
716.100Â Â Â Â Effect
of failure to complete organization; liabilities
716.120Â Â Â Â Conditions
precedent to transaction of business
716.135Â Â Â Â Amendment
of articles of incorporation
716.140Â Â Â Â Resolution
for amending articles
716.145Â Â Â Â Form
and content of articles of amendment
716.160Â Â Â Â Restated
articles of incorporation; procedure; contents
716.180Â Â Â Â Bylaws
716.185Â Â Â Â Registered
agent; registered office
716.187Â Â Â Â Changes
in registered office or agent
716.190Â Â Â Â Resignation
of registered agent; discontinuance of registered office
716.195Â Â Â Â Service
of process on
DIRECTORS
716.205Â Â Â Â Salaries
of certain directors
716.210Â Â Â Â Number
and qualifications of directors
716.320Â Â Â Â Removal
of director; vacation of directorÂ’s office
INVESTMENTS AND LOANS
716.410Â Â Â Â Limitations
on investments
716.420Â Â Â Â Permitted
investments
716.441Â Â Â Â Investments
in equipment trust certificates
716.450Â Â Â Â Investments
in certain obligations
716.460Â Â Â Â Investments
in demand notes secured by deposit accounts
716.520Â Â Â Â Investments
in bankersÂ’ acceptances, bills of exchange, savings or time accounts; limits
716.530Â Â Â Â Investments
in corporate bonds, notes and debentures
716.535Â Â Â Â Investments
in common stock of federally chartered corporation providing secondary mortgage
sale markets and Federal Home Loan Bank
716.540Â Â Â Â Investments
in obligations of reconstruction and development banks
716.545Â Â Â Â Investments
in bonds of Dominion of Canada
716.552Â Â Â Â Investments
in notes or bonds secured by real estate mortgages or trust deeds
716.554Â Â Â Â Participation
in investments in notes or bonds secured by real estate mortgages or trust
deeds
716.556Â Â Â Â Investment
in loans secured by pledged notes or bonds
716.558Â Â Â Â Investment
in notes or bonds secured by mortgages or trust deeds on real property leases
716.562Â Â Â Â Investment
in notes or bonds secured by mortgages or trust deeds to finance building
construction and improvement
716.564Â Â Â Â Investment
in notes or bonds secured by mortgages or trust deeds to finance real estate
development
716.566Â Â Â Â Documents
to be furnished by borrower in real estate loans
716.568Â Â Â Â Requirement
of insurance for loan secured by mortgage, trust deed or other instrument on
real estate
716.572Â Â Â Â Mortgage
loan applications; conditions for granting loan; manner of holding mortgages
and trust deeds
716.574Â Â Â Â Purchase
of real estate sale contract as loan; authority to acquire contracts
716.578Â Â Â Â Purchase
of notes secured by real estate from third persons
716.584Â Â Â Â Limitations
on single loans on real estate; exceptions
716.586Â Â Â Â Credit
card transactions
716.588Â Â Â Â Investments
in certain corporate capital stocks; conditions; restrictions on corporate
indebtedness
716.590Â Â Â Â Miscellaneous
investments; conditions
716.592Â Â Â Â Pledging
assets to secure public funds
716.594Â Â Â Â Authority
of
POWERS, DUTIES AND REGULATION
716.600Â Â Â Â Relationship
to powers of federal savings banks
716.610Â Â Â Â General
powers; licensing as insurance producer; rules
716.626Â Â Â Â Certificates
indicating contribution to guaranty or expense funds
716.630Â Â Â Â Real
estate held for use as place of business
716.780Â Â Â Â Crediting
portion of net earnings to guaranty fund
716.790Â Â Â Â Computation
of guaranty fund
716.800Â Â Â Â Repayment
of contributions made to expense fund and guaranty fund
716.805Â Â Â Â Determining
earnings
716.830Â Â Â Â Payment
of dividends; classification of depositors; certificates of deposit; notice of
change of rate
716.840Â Â Â Â Liability
of directors voting improper dividend
716.850Â Â Â Â False
advertising of surplus or guaranty fund prohibited
DISSOLUTION; LIQUIDATION
716.900Â Â Â Â Voluntary
dissolution of
716.905Â Â Â Â Notice
of intention to close; disposition of unclaimed deposits
716.910Â Â Â Â Report
to director; termination of existence
716.915Â Â Â Â Voluntary
liquidation
CIVIL PENALTIES
716.991Â Â Â Â Civil
penalties
     716.010 [Repealed by 1973 c.797 §428]
     716.020 [Amended by 1973 c.797 §344; repealed by
1997 c.631 §567]
ORGANIZATION
     716.024
Provisions of Bank Act applicable to
     (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
     716.028
Application for authority to organize; fee; contents. Any number of persons, not less than five,
desiring to organize an
     (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
     (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
     (9) The proposed operating policies of the
     (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]
     716.029 [1985 c.762 §48; repealed by 1997 c.631 §567]
     716.030 [Repealed by 1973 c.797 §428]
     716.032
Investigation and ruling on application. 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]
     716.036 [1973 c.797 §348; repealed by 1997 c.631 §567]
     716.040
Articles of incorporation; contents. (1) Not less than five persons may associate themselves by articles of
incorporation to form an
     (2) The articles of incorporation of an
     (a) The name by which the
     (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
     (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]
     716.050
Approval of articles; certificate of incorporation; filing. (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]
     716.055
Creation of guaranty and expense funds. Before an
     (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
     716.060
Guaranty fund. (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
     (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
     716.070
Expense fund. (1) The
incorporators of an
     (2) The amounts contributed to the expense
fund of the
     716.080
Issuance of charter. (1) The
Director of the Department of Consumer and Business Services shall examine the
condition of an
     (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
     716.085 [1985 c.786 §52; repealed by 1997 c.631 §567]
     716.090 [Amended by 1973 c.797 §355; 1975 c.544 §44a;
repealed by 1997 c.631 §567]
     716.100
Effect of failure to complete organization; liabilities. (1) If an
     (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]
     716.110 [Amended by 1959 c.185 §14; 1973 c.797 §357;
repealed by 1997 c.631 §567]
     716.120
Conditions precedent to transaction of business. An
     (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
     (b) In the case of an
     (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]
     716.130 [Repealed by 1973 c.797 §428]
     716.135
Amendment of articles of incorporation. (1) An
     (2) In particular, and without limitation
upon such general power of amendment, an
     (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]
     716.140
Resolution for amending articles. The articles of incorporation of an
     716.145
Form and content of articles of amendment. The articles of amendment shall be executed in duplicate by the
     (1) The name of the
     (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]
     716.150 [1979 c.88 §21; repealed by 1997 c.631 §567]
     716.155 [1979 c.88 §22; repealed by 1997 c.631 §567]
     716.160
Restated articles of incorporation; procedure; contents. (1) An
     (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
     (a) The name of the
     (b) The date of the adoption of the
restated articles of incorporation by the directors. [1979 c.88 §23; 1997 c.631
§344]
     716.180
Bylaws. The initial bylaws
of an
     716.185
Registered agent; registered office. (1) Each
     (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]
     716.187
Changes in registered office or agent. (1) An
     (a) The name of the
     (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 agentÂ’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
     716.190
Resignation of registered agent; discontinuance of registered office. (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
     (2) Upon delivery of the signed statement,
the director shall file the resignation statement. The copy of the statement
given to the
     (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
     716.195
Service of process on
     (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 bankÂ’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
     (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
     716.205
Salaries of certain 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]
     716.210
Number and qualifications of directors. (1) The board of directors of an
     (2) A person shall not be a director of an
     (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 personÂ’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]
     716.220 [Repealed by 1973 c.797 §428]
     716.230 [Repealed by 1973 c.797 §428]
     716.240 [Repealed by 1973 c.797 §428]
     716.250 [Repealed by 1973 c.797 §428]
     716.260 [Amended by 1957 c.169 §1; 1969 c.211 §1;
repealed by 1973 c.797 §428]
     716.270 [Amended by 1973 c.797 §361; repealed by
1997 c.631 §567]
     716.280 [Amended by 1973 c.797 §362; 1983 c.37 §27;
repealed by 1997 c.631 §567]
     716.285 [1975 c.544 §51; 1979 c.88 §26; 1985 c.786 §48;
repealed by 1997 c.631 §567]
     716.290 [Amended by 1973 c.797 §363; 1981 c.192 §25;
1985 c.786 §49; repealed by 1997 c.631 §567]
     716.295 [1977 c.135 §32; 1985 c.786 §50; repealed by
1997 c.631 §567]
     716.300 [Repealed by 1973 c.797 §428]
     716.310 [Repealed by 1973 c.797 §428]
     716.320
Removal of director; vacation of directorÂ’s office. (1) A board member of an
     (a) The board member’s conduct is of such
character as to be injurious to the
     (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
     (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 directorÂ’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]
     716.330 [Amended by 1973 c.797 §365; repealed by
1997 c.631 §567]
INVESTMENTS
AND LOANS
     716.410
Limitations on investments.
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]
     716.420
Permitted investments. An
     (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
     (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]
     716.430 [Repealed by 1959 c.185 §15]
     716.440 [Repealed by 1959 c.185 §10 (716.441 enacted
in lieu of 716.440)]
     716.441
Investments in equipment trust certificates. (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]
     716.450
Investments in certain obligations. An
     (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
     (8) Subsection (5) of this section shall
not be construed to permit an
     716.460
Investments in demand notes secured by deposit accounts. 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]
     716.470 [Amended by 1959 c.185 §13; 1961 c.277 §1;
1965 c.215 §1; 1967 c.198 §1; 1969 c.211 §3; 1971 c.219 §4; 1973 c.797 §371;
renumbered 716.552]
     716.480 [Amended by 1973 c.797 §373; renumbered
716.578]
     716.490 [Amended by 1973 c.797 §374; renumbered
716.582]
     716.500 [Amended by 1973 c.797 §375; renumbered
716.584]
     716.510 [Repealed by 1973 c.797 §428]
     716.520
Investments in bankersÂ’ acceptances, bills of exchange, savings or time
accounts; limits. (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 stockholdersÂ’ 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]
     716.530
Investments in corporate bonds, notes and debentures. 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]
     716.535
Investments in common stock of federally chartered corporation providing
secondary mortgage sale markets and Federal Home Loan Bank. 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]
     716.540
Investments in obligations of reconstruction and development banks. 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]
     716.542 [1963 c.408 §1; repealed by 1973 c.797 §428]
     716.543 [1973 c.638 §2; repealed by 1975 c.544 §62]
     716.545
Investments in bonds of Dominion of
     (1) The interest and principal of such
bonds is payable in the
     (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
     716.550 [1959 c.185 §4; repealed by 1973 c.797 §428]
     716.552
Investments in notes or bonds secured by real estate mortgages or trust deeds. 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]
     716.554
Participation in investments in notes or bonds secured by real estate mortgages
or trust deeds. (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]
     716.555 [1959 c.185 §5; repealed by 1973 c.797 §428]
     716.556
Investment in loans secured by pledged notes or bonds. 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]
     716.558
Investment in notes or bonds secured by mortgages or trust deeds on real
property leases. 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]
     716.560 [1959 c.185 §6; repealed by 1973 c.797 §428]
     716.562
Investment in notes or bonds secured by mortgages or trust deeds to finance
building construction and improvement. 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]
     716.564
Investment in notes or bonds secured by mortgages or trust deeds to finance
real estate development. 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]
     716.565 [1959 c.185 §7; repealed by 1973 c.797 §428]
     716.566
Documents to be furnished by borrower in real estate loans. 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]
     716.568
Requirement of insurance for loan secured by mortgage, trust deed or other instrument
on real estate. 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 bankÂ’s
interest is insured under a blanket policy of insurance. [1973 c.797 §371g; 1985
c.554 §11]
     716.570 [1959 c.185 §8; repealed by 1973 c.797 §428]
     716.572
Mortgage loan applications; conditions for granting loan; manner of holding mortgages
and trust deeds. (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 bankÂ’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]
     716.574
Purchase of real estate sale contract as loan; authority to acquire contracts. (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]
     716.575 [1959 c.185 §9; repealed by 1973 c.797 §428]
     716.576 [1973 c.797 §372; 1979 c.88 §29; 1981 c.192 §30;
repealed by 1985 c.554 §13]
     716.578
Purchase of notes secured by real estate from third persons. 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]
     716.582 [Formerly 716.490; repealed by 1985 c.554 §13]
     716.584
Limitations on single loans on real estate; exceptions. (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
bankÂ’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]
     716.586
Credit card transactions.
(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]
     716.588
Investments in certain corporate capital stocks; conditions; restrictions on
corporate indebtedness. (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]
     716.590
Miscellaneous investments; conditions. 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]
     716.592
Pledging assets to secure public funds. 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 given that term in ORS 295.001. [1973 c.288 §7; 1999 c.311 §6;
2007 c.71 §232]
     716.594
Authority of
     (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
     (2) The director may revoke or restrict
the ongoing authority of the
     (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
     716.600
Relationship to powers of federal savings banks. (1) Notwithstanding any provision contained
in ORS chapters 706 to 715, except as limited by articles of incorporation of
an
     (a)
     (b)
     (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
     (2) The purpose of this section is to
grant
     716.610
General powers; licensing as insurance producer; rules. 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
     (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]
     716.616 [1973 c.797 §380a; repealed by 1975 c.291 §1]
     716.620 [Amended by 1969 c.211 §6; 1971 c.219 §7; repealed
by 1973 c.797 §428]
     716.622 [1973 c.797 §380b; repealed by 1981 c.192 §46]
     716.626
Certificates indicating contribution to guaranty or expense funds. (1) An
     (2) The certificate shall show that it
does not constitute a liability of the
     (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]
     716.630
Real estate held for use as place of business. (1) The cost of the land and buildings to be
used by an
     (a) 50 percent of the guaranty fund and
undivided profits account of the
     (b) 50 percent of the capital, as defined
in ORS 708A.290, of the
     (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]
     716.640 [Amended by 1957 c.161 §3; repealed by 1973
c.797 §428]
     716.645 [1957 c.161 §2; 1973 c.797 §383; 1975 c.193 §12;
1977 c.135 §59; 1995 c.79 §355; 1995 c.313 §2; repealed by 1997 c.631 §567]
     716.650 [Repealed by 1973 c.797 §428]
     716.660 [Amended by 1961 c.57 §2; repealed by 1973
c.797 §428]
     716.670 [Amended by 1973 c.797 §384; repealed by
1997 c.631 §567]
     716.680 [Repealed by 1973 c.797 §428]
     716.690 [Repealed by 1957 c.168 §2]
     716.695 [1957 c.168 §1; repealed by 1973 c.797 §428]
     716.700 [Repealed by 1957 c.168 §2]
     716.710 [Amended by 1971 c.219 §9; repealed by 1973
c.797 §428]
     716.720 [Amended by 1961 c.96 §2; 1971 c.219 §10;
repealed by 1973 c.797 §428]
     716.730 [Amended by 1969 c.193 §2; repealed by 1973
c.797 §428]
     716.740 [Repealed by 1973 c.797 §428]
     716.750 [Repealed by 1973 c.797 §428]
     716.760 [Amended by 1953 c.86 §2; 1965 c.214 §1;
1973 c.797 §385; 1975 c.544 §47a; 1981 c.7 §3; repealed by 1997 c.631 §567]
     716.770 [Repealed by 1973 c.797 §428]
     716.780
Crediting portion of net earnings to guaranty fund. (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]
     716.790
Computation of guaranty fund.
(1) To determine the amount of a guaranty fund of an
     (a) Securities, other evidences of
indebtedness and other interest-bearing obligations shall be carried at a sum,
not to exceed their cost to the
     (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
     (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
     (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]
     716.800
Repayment of contributions made to expense fund and guaranty fund. (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
     (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
     (3) The board of directors may create a
fund to be known as the guarantorÂ’s reimbursement fund. One percent of the net
earnings at the close of any dividend period may be paid in the guarantorÂ’s
reimbursement fund if it can be done without reducing the dividend rate below
one percent per annum. The guarantorÂ’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]
     716.805
Determining earnings.
Earnings of a savings bank shall be calculated on an accrual basis according to
generally accepted accounting principles. [1973 c.797 §389]
     716.810 [Repealed by 1973 c.797 §428]
     716.820 [Repealed by 1973 c.797 §428]
716.830 Payment of dividends; classification
of depositors; certificates of deposit; notice of change of rate. (1) Every
     (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
     (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
     (4) An
     (5) An
     (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
     716.840
Liability of directors voting improper dividend. 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]
     716.850
False advertising of surplus or guaranty fund prohibited. 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]
     716.855 [1975 c.544 §52; 1997 c.631 §359; renumbered
716.991 in 2001]
     716.860 [Amended by 1973 c.797 §393; repealed by
1975 c.544 §62]
     716.870 [Repealed by 1973 c.797 §428]
     716.880 [Repealed by 1973 c.797 §428]
     716.890 [Repealed by 1973 c.797 §428]
DISSOLUTION;
LIQUIDATION
     716.900
Voluntary dissolution of
     (2) Before approving the plan for closing
the
     716.905
Notice of intention to close; disposition of unclaimed deposits. (1) Acting under ORS 716.900 the directors
shall direct the mailing of a written notice of their intention to close the
     (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]
     716.910
Report to director; termination of existence. After the directors of an
     716.915
Voluntary liquidation. An
     716.920 [1955 c.690 §3; 1971 c.219 §12; 1973 c.797 §397;
1977 c.135 §60; 1983 c.37 §32; 1983 c.367 §5; 1985 c.12 §14; 1985 c.762 §49;
1987 c.197 §10; 1987 c.445 §8; 1989 c.324 §74; repealed by 1997 c.631 §567]
     716.925 [1973 c.797 §398; 1977 c.135 §61; 1981 c.192
§34; 1983 c.37 §33; 1987 c.445 §9; repealed by 1997 c.631 §567]
     716.930 [1973 c.797 §399; 1977 c.135 §62; 1981 c.192
§35; 1983 c.37 §34; 1987 c.445 §10; repealed by 1997 c.631 §567]
     716.935 [1973 c.797 §400; 1977 c.135 §63; 1979 c.88 §31;
1981 c.192 §36; 1983 c.37 §35; repealed by 1997 c.631 §567]
     716.990 [Amended by 1973 c.797 §401; 1985 c.762 §50;
repealed by 1997 c.631 §567]
CIVIL
PENALTIES
     716.991
Civil penalties. Any 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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