(1) The Director of the Department of Consumer and Business Services may take one or more of the actions described in this section to protect the interest of the creditors and depositors of a banking institution or non-Oregon institution if any of the following occurs:
(a) It is unsafe or inexpedient for the banking institution or non-Oregon institution to continue to transact business.
(b) Extraordinary withdrawals of money are jeopardizing the interests of remaining depositors.
(c) A director or officer has abused that person’s trust or has been guilty of misconduct in an official position injurious to the banking institution or non-Oregon institution.
(d) The banking institution or non-Oregon institution has suffered a serious loss by fire, floods, burglary, disaster or otherwise.
(e) The banking institution or non-Oregon institution neglects or refuses to observe an order of the director under ORS 706.580 or refuses to submit to the inspection of an examiner.
(f) A director or officer refuses to be examined under oath regarding the affairs of the banking institution or non-Oregon institution.
(2) For purposes of subsection (1) of this section and subject to subsection (5) of this section, the director may take any of the following actions in regard to a banking institution:
(a) Take immediate possession and control of the property and affairs of the banking institution.
(b) If the director has issued an order under ORS 706.580, enter the banking institution to monitor and enforce implementation of the order.
(c) Direct the sale of all or part of the banking institution’s assets, or portions thereof, and the assumption of all or part of its liabilities.
(d) Direct the conversion, reorganization or consolidation of the banking institution, either with or without a merger.
(e) Direct the merger of the banking institution.
(f) Direct the sale of a banking institution.
(g) Direct the banking institution to develop and endeavor to implement an acquisition plan, under which the banking institution will acquire or be acquired by a national bank or banking institution, or a state or federal savings association.
(h) Take any other action that the director determines is necessary and expedient to facilitate the sale of the stock or assets of the banking institution, or the sale, conversion, reorganization, consolidation or merger of the banking institution.
(3) For purposes of subsection (1) of this section, and subject to ORS 706.515, the director may take any one of the following actions in regard to a non-Oregon institution:
(a) Take immediate possession and control of the property in this state of the non-Oregon institution.
(b) If the director has issued an order under ORS 706.580, enter the branches, offices or other places of business in this state of the non-Oregon institution to monitor and enforce implementation of the order.
(c) Acting alone or in concert with another appropriate bank supervisory agency, take any action authorized or permitted to be taken under or pursuant to any agreement or contract between the director and one or more bank supervisory agencies.
(4) Notwithstanding any other provision of law and pursuant to ORS 706.544, any actual costs incurred by the Department of Consumer and Business Services under this section shall be paid by the banking institution or non-Oregon institution to the director for deposit in the Consumer and Business Services Fund. The moneys deposited in the Consumer and Business Services Fund under this subsection shall not be considered as a budget item on which a limitation is otherwise fixed by law, but shall be in addition to any specific biennial appropriations or amounts authorized to be expended from the Consumer and Business Services Fund for any biennial period.
(5) Subsection (2)(c) to (h) of this section are available to the director only when a banking institution is in immediate danger of insolvency. [Amended by 1973 c.797 §32; 1985 c.786 §12; 1993 c.318 §7; 1997 c.631 §11]
Section: Previous 706.550 706.555 706.560 706.570 706.575 706.580 706.590 706.600 706.610 706.620 706.630 706.640 706.650 706.655 706.660 NextLast modified: August 7, 2008