Oregon Statutes - Chapter 722 - Savings Associations - Section 722.257 - Time period for drawing on item deposited in savings or federal association; disclosure.

(1) A savings association or federal association shall allow an account holder who deposits an item in the account holder’s account to draw against the item within the time period applicable to that item under a schedule adopted by the Director of the Department of Consumer and Business Services.

(2) Except as provided in subsection (3) of this section, in any agreement between a savings association or federal association and its customer, the savings association or federal association may not specify a period of time for purposes of drawing on an item that is longer than any applicable period specified in the schedule adopted by the director.

(3) This section does not prohibit a savings association or federal association and its customer from agreeing to a longer period than that specified in the schedule adopted by the director for drawing against items because of special circumstances, if the agreement is not contained in a preprinted form and is entered into by the savings association or federal association only in special circumstances.

(4) The provisions of this section do not alter or impair any right or obligation under ORS chapter 74.

(5) Savings associations and federal associations shall disclose in writing the schedule adopted by the director and in effect on the date of the disclosure. For persons who became account holders prior to the date on which the director adopts a schedule and who remain account holders thereafter, the disclosure shall be made within 30 days after the director adopts the schedule. For persons who become account holders after the date on which the director adopts the schedule, the disclosure shall be made prior to the opening of the account holder’s account.

(6) Every savings association and federal association shall post or provide in a conspicuous location in its principal place of business and at each branch a notice stating the schedule adopted by the director.

(7) As used in this section, “item” has the meaning given that term in ORS 74.1040 and includes, without limitation, checks, negotiable orders of withdrawal and share drafts. [1987 c.491 §6; 1997 c.631 §538]

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Last modified: August 7, 2008