(1) As provided in this section:
(a) A savings association may invest its assets in a service corporation described in this section.
(b) A savings association may organize a service corporation described in this section as a wholly owned subsidiary of the savings association and invest the savings association’s assets in the corporation.
(2) A savings association may invest in or organize and invest in a service corporation under subsection (1) of this section if the following conditions are satisfied:
(a) The projects undertaken by the service corporation must be predominantly of a civic, community or public nature, and not merely of a private or entrepreneurial nature.
(b) The savings association’s investments in the service corporation must comply with the prudent investment rule under ORS 722.306.
(c) The savings association’s aggregate investment in service corporations and their projects must not exceed one percent of the assets of the savings association.
(d) The savings association must submit to the Director of the Department of Consumer and Business Services its proposal for investing in or organizing and investing in a service corporation and the proposal must receive the director’s approval.
(e) The membership of the board of directors of the community development corporation must be representative of the community in which the corporation is to operate.
(f) If the corporation is organized under the Oregon Nonprofit Corporation Law, the stock of the corporation purchased by the savings association, or the savings association’s membership in the corporation if it does not issue stock, shall be carried on the books of the savings association at a value not exceeding $1.
(3) A service corporation may be organized under this section as a for-profit corporation under ORS chapter 60 or as a nonprofit corporation under the Oregon Nonprofit Corporation Law.
(4) A service corporation to which this section applies is a corporation that is authorized under its articles of incorporation to:
(a) Acquire real estate. This paragraph does not authorize real estate investment that is primarily speculative in nature.
(b) Make equity investments in small businesses and in development projects that primarily benefit small businesses.
(c) Participate in joint ventures with outside partners. [1983 c.321 §8; 1987 c.197 §21]
Note: 722.309 and 722.311 were added to and made a part of ORS chapter 722 by legislative action but were not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.
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