Oregon Statutes - Chapter 708A - Regulation of Institutions Generally - Section 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 the written approval of the director and any limitations the director may prescribe, an institution may carry fully paid and nonassessable capital stock of any other corporation as an asset, if the stock is acquired for the purpose of strengthening the institution’s capital structure or the elimination of undesirable assets.

(2) The stock may be held for such period as the director may determine, but in no event longer than 15 years.

(3) This section is not applicable to any stock that may be acquired in connection with the insurance of deposits, any stock that may be acquired under ORS 708A.120, or any stock that may be purchased as a part of any transaction in which an institution borrows from the United States or an agency of the United States. This section does not repeal or in any way limit or modify ORS 711.470. [1997 c.631 §120]

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Last modified: August 7, 2008