(1) A savings association may borrow money for any of its corporate purposes, when authorized by proper resolution of its board of directors. However, the aggregate indebtedness of an association outstanding at any one time shall not exceed 35 percent of its assets.
(2) Notwithstanding the limitation in subsection (1) of this section, an association may:
(a) Accept savings accounts as provided by ORS 722.252 to 722.268.
(b) Borrow or obtain advances from the Federal Home Loan Bank or other similar federal or state agency in such amounts and upon such terms as may be prescribed by such bank or agency.
(c) Issue capital notes or debentures as provided by ORS 722.208.
(3) An association may borrow from and lend to other savings associations or federal associations.
(4) When the Director of the Department of Consumer and Business Services considers an indebtedness of an association incurred under this section to be detrimental to the interests of its account holders or other creditors, the director shall require the association to change or reduce its indebtedness to an extent the director considers reasonable, giving the association a reasonable time in which to effect such change or reduction of indebtedness.
(5) A savings association may assign or pledge any property of the association, or repledge any shares of the stock pledged to the association, as collateral security for loans obtained for any of its corporate purposes.
(6) Any pledgee or other lawful holder of any note or other evidence of indebtedness due to an association, has the right to enforce, in the pledgee’s or holder’s own name or in the name of the association, all appropriate remedies to enforce collection, whether or not the stock described in connection with the note is held by such pledgee or holder.
(7) Obligations of an association are, upon liquidation, payable out of the assets of the association in the following order of preferences to:
(a) Secured creditors.
(b) Financial institutions, as defined in ORS 706.008.
(c) Other creditors, including savings account holders, unless the bylaws of the association provide a different order of preference between account holders and other creditors.
(d) Stockholders. [Formerly 722.130; 1981 c.472 §14; 1997 c.631 §537]
Section: Previous 722.185 722.190 722.195 722.200 722.202 722.204 722.205 722.206 722.208 722.210 722.211 722.212 722.214 722.215 722.220 NextLast modified: August 7, 2008