Oregon Statutes - Chapter 708A - Regulation of Institutions Generally - Section 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 institution lacks or lacked power to act.

(2) An institution’s power to act may be challenged:

(a) In a proceeding by a stockholder against the institution to enjoin the act;

(b) In a proceeding by the institution, directly, derivatively or through a receiver, trustee or other legal representative, against an incumbent or former director, officer, employee or agent of the institution; or

(c) By the Director of the Department of Consumer and Business Services.

(3) In a stockholder’s proceeding under subsection (2)(a) of this section to enjoin an unauthorized act, the court may enjoin or set aside the act if equitable and if all affected persons are parties to the proceeding, and may award damages for loss other than anticipated profits suffered by the institution or another party because of enjoining the unauthorized act. [1997 c.631 §137]

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Last modified: August 7, 2008