(1) Until a new stock association is on a profitable operating basis as determined by the Director of the Department of Consumer and Business Services, capital surplus collected by the association under ORS 722.042 shall be restricted and may be used only for payment of the expenses and charges of organization, as described by ORS 57.116 (1985 Replacement Part), and for payment of any net operating losses of the association, as determined after transfers to general reserves for losses.
(2) Until a new mutual association is on a profitable operating basis as determined by the director, the expense fund collected by the association under ORS 722.042 shall be used only for payment of the expenses and charges of organization, similar to those described by ORS 57.116 (1985 Replacement Part), and for payment of any net operating losses of the association as determined after transfers to general reserves for losses. When the director determines that the association is on a profitable operating basis, contributions made to the expense fund may be repaid pro rata to the contributors, first from the balance, if any, remaining in the expense fund and then from earned surplus.
(3) In case of the liquidation of a mutual association before contributions to the expense fund have been repaid, any balance in the expense fund remaining unexpended after the payment of expenses of liquidation, all creditors and the withdrawal value of all savings accounts shall be repaid to the contributors pro rata.
(4) Amounts paid in on savings accounts pledged to a new mutual association pursuant to ORS 722.042 shall not be withdrawable until the director, pursuant to subsection (2) of this section, determines that the association is on a profitable operating basis. [1975 c.582 §46; 1987 c.197 §14]
Section: Previous 722.032 722.034 722.035 722.036 722.038 722.040 722.042 722.044 722.045 722.046 722.048 722.050 722.052 722.055 722.056 NextLast modified: August 7, 2008