The Director of the Department of Consumer and Business Services may establish by rule a program under which a savings association may create a fund for indemnifying its directors and officers. Among the provisions of the program shall be the following:
(1) Provisions for creating and administering the fund which shall require the pledging of collateral by the association with the Federal Home Loan Bank of Seattle or another pledge holder approved by the director.
(2) A limitation on the amount of collateral that an association may pledge to the fund.
(3) Provisions for maintaining the fund and replacing expenditures from the fund.
(4) A requirement that an association give notice to its pledge holder before making any pledge, and authorization to the pledge holder to refuse a pledge when it determines the pledge to be inappropriate.
(5) A requirement that, notwithstanding ORS 60.047 (2)(d), 60.387 to 60.414 and 722.112, an association that creates a fund shall indemnify a director or officer to the full extent that there are resources in the fund in all cases except for fraud or bad faith by the director or officer. [1987 c.224 §2; 1987 c.373 §90a; 1987 c.414 §166c; 1987 c.528 §5; 1991 c.883 §14]
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