Oregon Statutes - Chapter 708A - Regulation of Institutions Generally

• 708A.005   Powers of institutions; insurance transactions; rules.
  (1) Except as otherwise limited in the Bank Act or the articles of incorporation of an institution, an institution shall have: (a) Perpetual duration and...
• 708A.010   Investments and activities of Oregon commercial banks.
  (1) Notwithstanding any provision of the Bank Act to the contrary, Oregon commercial banks are authorized to: (a) Engage as principal in those activities in...
• 708A.115   Investment in government obligations.
  (1) Institutions may invest, without regard to any limitation based on stockholders’ equity, in: (a) Obligations of the United States, including those of its agencies...
• 708A.120   Investment in stock of other corporations; rules.
  (1) An institution shall not invest any of its assets in the capital stock of any other corporation, except: (a) In the capital stock of...
• 708A.125   Stock in corporations acquired to strengthen capital or eliminate undesirable assets.
  (1) Upon the written application of the board of directors filed with the Director of the Department of Consumer and Business Services and subject to...
• 708A.130   Definition for ORS 708A.135 to 708A.145.
  As used in ORS 708A.135 to 708A.145, unless the context requires otherwise, “invest” includes any advance of funds to a bank service corporation, whether by...
• 708A.135   Investment in bank service corporation.
  An Oregon commercial bank may invest not more than 10 percent of its capital in a bank service corporation. An Oregon commercial bank shall not...
• 708A.140   Discrimination by bank service corporation prohibited against nonstockholding depository institution; permitted conduct.
  A bank service corporation shall not unreasonably discriminate in the provision of any services authorized under ORS 708A.130 to 708A.145 against any financial institution that...
• 708A.145   Authorized services of bank service corporations; sale of insurance; regulation of services.
  (1) A bank service corporation may perform any of the following services for financial institutions: (a) Check and deposit sorting and posting; (b) Computation and...
• 708A.150   Community development corporations; authority to invest or organize; conditions; corporate form; functions.
  (1) As provided in this section: (a) A banking institution may invest its capital in a community development corporation. (b) A banking institution may organize...
• 708A.160   Corporation created to establish ATMs; banking institution as stockholder.
  A banking institution may, subject to the approval of the Director of the Department of Consumer and Business Services, acquire and continue to hold a...
• 708A.165   Membership in Federal Reserve System; member bank, officers, directors and shareholders subject to duties and liabilities imposed by laws of this state.
  (1) Any Oregon commercial bank may subscribe to the capital stock and become a member of a Federal Reserve Bank. (2) An Oregon commercial bank...
• 708A.170   Securities powers.
  An institution may, with the approval of the Director of the Department of Consumer and Business Services, purchase, sell, issue, underwrite and deal in securities...
• 708A.175   Right to purchase, hold and dispose of real and personal property.
  An institution may purchase, hold, convey, sell or lease: (1) The real estate and improvements thereto in which the business of the institution is carried...
• 708A.180   Acquisition of personal property for leasing purposes.
  An Oregon commercial bank may acquire and lease personal property at the request of a lessee who wishes to lease it upon terms requiring payment,...
• 708A.185   Purchase of real estate contracts.
  Institutions may purchase the vendor’s interest in bona fide contracts covering the sale of real estate that comply with the requirements of ORS 708A.270. [1997...
• 708A.190   Acceptance of drafts and bills of exchange; issuance of letters of credit; obligation for participation share in bills; rules.
  (1) An Oregon commercial bank may accept drafts or bills of exchange drawn upon it having not more than six months’ sight to run, exclusive...
• 708A.195   Disposition of real and personal property.
  (1) An institution shall promptly dispose of all real and personal property that the institution is not authorized to own or hold under the Bank...
• 708A.200   [1997 c.631 §136; 2001 c.191 §53; 2001 c.377 §48; repealed by 2003 c.363 §16]
• 708A.210   Challenge to validity of institution action; prohibition; exceptions.
  (1) Except as provided in subsection (2) of this section, the validity of an institution’s action may not be challenged on the grounds that the...
• 708A.250   Lending money.
  Except as specifically limited by the Bank Act and other applicable law, institutions have the general power to loan money upon terms and conditions that...
• 708A.255   Interest rates on loans or uses of money; late charges.
  (1) Except as otherwise provided in this section, there is no limitation on the rate of interest or on the amount of other charges that...
• 708A.260   Accepting own stock as collateral.
  An institution shall not accept as collateral its own capital stock, except where the taking of such collateral is necessary to prevent loss upon an...
• 708A.265   Accepting stock of other institutions as collateral.
  An institution shall not accept or hold as loan collateral in the aggregate more than 25 percent of the capital stock of any other insured...
• 708A.270   Real estate loans.
  (1) With respect to any loans secured primarily by real estate, an Oregon commercial bank shall maintain a file containing such appraisal, evidence of merchantable...
• 708A.275   Establishment of loan production office; notice; fee.
  (1) A financial institution shall file a notice with the Director of the Department of Consumer and Business Services within 30 days of establishing a...
• 708A.290   “Capital” defined for ORS 708A.290 to 708A.375.
  As used in ORS 708A.290 to 708A.375, the term “capital,” when referring to an Oregon commercial bank, means tier 1 and tier 2 capital, as...
• 708A.295   Limitations on amount of obligations to Oregon commercial bank; applicability.
  Except as provided in ORS 708A.300 to 708A.375, the loans and other obligations of a person to an Oregon commercial bank outstanding at any time...
• 708A.300   Obligations secured by readily marketable collateral.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to or acquire other obligations of a person, not to...
• 708A.305   Obligations of other financial institutions.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may acquire obligations of other financial institutions without regard to amount in the...
• 708A.310   Obligations of indorser of discounted commercial paper.
  (1) In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may acquire obligations of a person without regard to amount as an...
• 708A.315   Noncommercial short-term notes.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may acquire obligations of a person, not to exceed 15 percent of the...
• 708A.320   Obligations secured by shipping documents.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to or acquire other obligations of a person without regard...
• 708A.325   Installment consumer paper.
  (1) In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may acquire obligations of a person, not to exceed 25 percent of...
• 708A.330   Bankers’ acceptances of other financial institutions.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may acquire obligations of a person without regard to amount in the form...
• 708A.335   Obligations secured by documents covering readily marketable staples.
  (1) In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans and acquire other obligations of a person secured by...
• 708A.340   Obligations secured by documents covering livestock.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to and acquire other obligations of a person, not to...
• 708A.345   Obligations secured by government obligations or shares of mutual fund or unit trust.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to and acquire other obligations of any person if the...
• 708A.350   Obligations secured by government bonds.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to and accept other obligations of a person, not to...
• 708A.355   Insured and guaranteed obligations.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to and acquire other obligations of a person without regard...
• 708A.360   Obligations secured by deposits.
  (1) In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to and acquire other obligations of a person without...
• 708A.365   Obligations secured by life insurance policy values.
  In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans to and acquire obligations of a person not to exceed...
• 708A.370   Obligations secured by first lien on real estate.
  In addition to obligations permitted by ORS 708A.295, an Oregon commercial bank may make loans to and acquire other obligations of a person not to...
• 708A.375   Obligations of guarantors.
  In addition to obligations permitted by ORS 708A.295, an Oregon commercial bank may acquire obligations of a person, in the form of a guaranty or...
• 708A.400   Deposit accounts.
  Oregon commercial banks may, consistent with applicable law and safe and sound banking practices, offer deposit accounts upon such terms and conditions as they consider...
• 708A.405   Deposits; FDIC insurance required.
  Oregon commercial banks shall secure insurance for their deposits from the Federal Deposit Insurance Corporation or a similar organization organized under the laws of the...
• 708A.410   Savings accounts; conditions for withdrawal; interest rate.
  (1) Within the limits established under applicable federal statutes and regulations, an Oregon commercial bank receiving savings accounts shall prescribe by its bylaws or by...
• 708A.415   Securing deposits by surety bond, letter of credit or insurance.
  (1) An Oregon commercial bank may secure any of the funds deposited with the Oregon commercial bank by giving a surety bond, an irrevocable letter...
• 708A.420   Notice to depositor upon change in terms, charges, withdrawal conditions or decrease in interest rate; exception.
  (1) If an Oregon commercial bank changes the terms, service charges or conditions for withdrawal of any deposit account, the Oregon commercial bank shall notify...
• 708A.425   Deposit made in name of minor.
  Any deposit to a financial institution made to an account in the name of a minor shall be held for the exclusive right and benefit...
• 708A.430   Disposition of deposit on death of depositor.
  (1) On the death of a depositor of a financial institution, if the deposit is $25,000 or less, the financial institution may, upon receipt of...
• 708A.435   Adverse claim to deposit; notice; restraining order or other process; indemnity bond or letter of credit.
  (1) An Oregon operating institution shall be obligated to recognize an adverse claim to a deposit it holds only if the adverse claimant gives notice...
• 708A.440   Checks drawn by agents presumed to be in authorized manner.
  If a person who owns a deposit account subject to check authorizes another person as agent to draw checks against the account, the financial institution,...
• 708A.445   Checks of intoxicated or drugged persons.
  An Oregon commercial bank or a national bank may refuse to pay any check, draft or order drawn upon it when the officers or employees...
• 708A.450   Certified checks.
  (1) An Oregon commercial bank shall certify a check only if the amount of the check actually stands to the credit of the drawer in...
• 708A.455   Definitions for ORS 708A.455 to 708A.515.
  As used in ORS 708A.455 to 708A.515, unless the context requires otherwise: (1) “Account” means a contract of deposit of funds between a depositor and...
• 708A.460   Application of ORS 708A.465 to 708A.475; liability and setoff rights of financial institutions.
  The provisions of ORS 708A.465 to 708A.475 concerning beneficial ownership as between parties, or as between parties and P.O.D. payees or beneficiaries of multiple-party accounts,...
• 708A.465   Ownership of multiple-party accounts.
  (1) A joint account belongs, during the lifetime of all parties, to the parties in proportion to the net contributions by each to the sums...
• 708A.470   Multiple-party accounts; disposition of deposit upon death of party or trustee; effect of will.
  (1) Sums remaining on deposit in a bank at the death of a party to a joint account are rebuttably presumed to belong to the...
• 708A.475   Rights of survivorship based on form of account; alteration of form of account.
  The provisions of ORS 708A.470 as to rights of survivorship are determined by the form of the account at the death of a party. Subject...
• 708A.480   Transfer of moneys upon death of depositor or trustee is not testamentary disposition.
  Any transfers resulting from the application of ORS 708A.470 are effective by reason of the account contracts involved and ORS 708A.470, and are not to...
• 708A.485   Payment of deposit in multiple-party account to one or more parties; institution not required to determine source or use of funds in account.
  Financial institutions may enter into multiple-party accounts to the same extent that they may enter into single-party accounts. Any multiple-party account may be paid, on...
• 708A.490   Joint account; payment to any party to account; payment to others.
  Any sums in a joint account may be paid, on request, to any party without regard to whether any other party is incapacitated or deceased...
• 708A.495   P.O.D. account; payment to any original party; payment to others.
  Any P.O.D. account may be paid, on request, to any original party to the account. Payment may be made, on request, to the P.O.D. payee...
• 708A.500   Trust account; payment to any trustee; payment to others.
  Any trust account may be paid, on request, to any trustee. Unless the financial institution has received written notice that the beneficiary has a vested...
• 708A.505   Discharge of institution from liability for payments made; conditions.
  Payment made pursuant to ORS 708A.485, 708A.490, 708A.495 or 708A.500 discharges the financial institution from all claims for amounts so paid whether or not the...
• 708A.510   Right of institution to setoff; amount.
  Without qualifying any other statutory or common law right to setoff or lien and subject to any contractual provision, if a party to a multiple-party...
• 708A.515   Designation of agent for account; powers of agent.
  Nothing in ORS 708A.455 to 708A.465, 716.024, 723.426 or 723.432 shall preclude a party to an account from adding the name of another person to...
• 708A.535   Granting security interests in institution assets.
  (1) An institution may only grant security interests in its assets: (a) To secure its indebtedness to a Federal Reserve Bank or Federal Home Loan...
• 708A.555   Generally accepted accounting principles.
  Except as otherwise provided in the Bank Act or other applicable law, institutions shall keep books and records in accordance with generally accepted accounting principles...
• 708A.560   Real and personal property used in institution’s business.
  (1) Real estate, furniture, fixtures, vaults and safe deposit boxes necessary or convenient for the operation of an institution’s business shall be carried on the...
• 708A.565   Certain stock.
  Investments in stock of a company that engages in activities in which a financial holding company, a bank holding company or a nonbanking subsidiary of...
• 708A.570   Community development corporations.
  Investments in community development corporations under ORS 708A.150 must be accounted for on an institution’s books as “other assets.” If the community development corporation is...
• 708A.575   Market-making corporations.
  Investments in a corporation engaged in the business of purchasing the stock of an institution for purposes of holding and making a market for that...
• 708A.580   Capital-strengthening corporations.
  (1) The aggregate amount of stock of a corporation acquired under ORS 708A.125 for the purpose of strengthening the institution’s capital or eliminating undesirable assets...
• 708A.585   Claims and judgments as assets.
  Claims against the estates of insolvent persons or deceased or incompetent persons and judgments against any person shall not be carried as an asset upon...
• 708A.590   Charging off real estate assets.
  (1) An institution that owns or holds any real estate other than as permitted in the Bank Act shall immediately charge the book value of...
• 708A.595   Charging off personal property assets.
  Goods and chattels owned by an institution on account of the collection of its debts shall not be carried on the books of an institution...
• 708A.600   Charging off bad debts.
  An institution shall charge off all debts: (1) On which interest is past due and unpaid for 12 months, unless the debt is fully secured...
• 708A.605   Separate accounts for foreign branches.
  An institution shall maintain the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home...
• 708A.630   Negligent, excessive, dishonest or unlawful loans; civil liability of officer, director or employee.
  Any officer, director or employee of an institution who knowingly or negligently loans the funds of the institution in a dishonest or unlawful manner or...
• 708A.635   Written policies regarding reporting to and obtaining approval of board; duty to report.
  Institutions shall develop written policies regarding the types of matters that shall be reported to and approved by the institution’s board of directors. An officer,...
• 708A.640   Receiving illegal compensation; misapplication of property and credit.
  (1) An officer, director, agent or employee of an institution shall not ask for, receive or agree to receive any money, property or thing of...
• 708A.645   Illegal guaranty or indorsement.
  An officer, director or employee of an institution shall not make or deliver any guaranty or indorsement on behalf of the institution whereby the institution...
• 708A.650   Banking days; holidays.
  (1) As used in this section: (a) “Bank” includes any banking institution, out-of-state state bank, national bank or extranational institution doing a banking business in...
• 708A.655   Procedures for opening safe deposit box after death of person who was sole lessee or last surviving lessee of box.
  (1) This section applies to the safe deposit box of any person who is the sole lessee or last surviving lessee of the box and...
• 708A.990   Civil penalties.
  (1) An institution that violates: (a) ORS 708A.560 shall forfeit a civil penalty in an amount determined by the Director of the Department of Consumer...
• 708A.995   Criminal penalties.
  Violation knowingly of any of the provisions of ORS 708A.635 is a Class C felony. [1997 c.631 §202] _______________

Last modified: August 7, 2008