(1) If a bank depository ceases holding public funds deposits, the bank depository’s custodian shall continue to hold the pledged securities of the bank depository as collateral pursuant to ORS 295.001 to 295.108. Unless the State Treasurer directs that the bank depository’s securities be held for a longer period, the custodian shall hold the bank depository’s pledged securities for a period of:
(a) 30 days, in the case of a bank depository that was well capitalized as of the date the bank depository ceased holding any public funds deposits;
(b) 90 days, in the case of a bank depository that was adequately capitalized as of the date the bank depository ceased holding any public funds deposits; or
(c) One year, in the case of a bank depository that was undercapitalized as of the date the bank depository ceased holding any public funds deposits.
(2) If any of a bank depository’s pledged securities mature during the periods described in subsection (1) of this section, the bank depository shall pledge substitute securities that shall be held by its custodian until the expiration of the period.
(3) At the end of the applicable holding period, if the bank depository has not, during that period, had on deposit any public funds deposits, the custodian shall tender the bank depository’s securities to the bank depository.
(4) Notwithstanding the release of a bank depository’s securities pursuant to subsection (3) of this section, the bank depository shall continue to be treated as a bank depository and shall be subject to assessment under ORS 295.037 until one year after the bank depository ceased holding any public funds deposits. If the bank depository no longer has pledged collateral that may be used to pay the assessment, the bank depository shall remain liable for payment of the assessment from its other assets. [2007 c.871 §13]
Note: See note under 295.031.
Section: Previous 295.040 295.041 295.045 295.045 295.046 295.048 295.050 295.053 295.055 295.056 295.060 295.061 295.065 295.065 295.070 NextLast modified: August 7, 2008