Notwithstanding ORS 722.106, the Director of the Department of Consumer and Business Services may establish by rule a program under which a savings association may create a fund to provide payment, protection and indemnification to the association, its officers, directors and employees, its customers and the public for losses incurred or damages sustained. The establishment of such a fund shall be in lieu of some or all of the bonding and insurance requirements of ORS 722.106, and shall only be allowed if the director finds that adequate third-party insurance or bonding protection is not available, or is only available at excessive rates. Among the provisions of the program shall be:
(1) Provisions for creating and administering the fund. The provisions must require the pledging of collateral by the association with the Federal Home Loan Bank of Seattle or another pledge holder approved by the director.
(2) A limitation on the amount of collateral that an association may pledge to the fund.
(3) Provisions for maintaining the fund and replacing expenditures from the fund.
(4) A requirement that an association give notice to its pledge holder before making any pledge, and authorization to the pledge holder to refuse a pledge when it determines the pledge to be inappropriate.
(5) Provisions for claim payments and reimbursement from the fund. [1987 c.285 §2; 1987 c.414 §70a]
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