Oregon Statutes - Chapter 711 - Merger; Conversion; Share Exchange; Acquisition; Liquidation; Insolvency - Section 711.500 - Liability of transferor of stock made in contemplation of insolvency; proceedings to relieve stockholder of liability prohibited.

(1) Stockholders in an institution who have transferred their stock or registered the transfer of their stock within 60 days before the date of the closing of the institution or with the knowledge of the impending closing or failure, are liable, as if the transfer had not been made, to the extent that the subsequent transferee fails to pay the unpaid balance on the stock. This subsection does not affect any recourse which a former stockholder might otherwise have against those in whose name the stock is registered at the time the institution closes.

(2) An action may not be brought by the holder of any stock standing in the name of the stockholder on the books of an institution at the time it closes which will relieve the stockholder of liability as a stockholder. [Amended by 1973 c.797 §266]

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Last modified: August 7, 2008