(1) A savings association may invest its assets without limit in:
(a) Assets readily convertible to cash, as defined under ORS 722.302, and deposits and accounts in and obligations of banks;
(b) Bonds and other obligations of the United States; and
(c) Bonds and other obligations that are guaranteed as to principal and interest by the United States and issued by any agency of the United States.
(2) A savings association may invest, and may have invested at any time, not to exceed 30 percent of its assets in:
(a) Bonds, other obligations and stock approved by the Director of the Department of Consumer and Business Services and issued by an agency of the United States or a federally sponsored instrumentality; and bonds and other obligations approved by the director and issued by a state, or by a city, county, municipal corporation, political subdivision or special district of any state; the preferred stock, bonds and obligations of a corporation domiciled in the United States, which are approved by the director and are rated at the time of purchase in one of the four highest grades by a recognized service organization that has been regularly engaged for a period of 10 years or more in rating or grading bonds; or loans secured by such obligations;
(b) Real and personal property interests as authorized by ORS 722.312 and 722.314;
(c) Stock and obligations of service corporations, as authorized by ORS 722.308;
(d) Other prudent investments as authorized by ORS 722.306;
(e) Loans as authorized by ORS 722.332 to 722.342; and
(f) Commercial paper, certificates of deposit, banker’s acceptances and similar commercial items commonly used in trade or business and issued or guaranteed by an insured institution, as defined in ORS 706.008.
(3) An association shall not invest any assets as described by subsection (2)(c) to (f) of this section unless the association on its last monthly closing date satisfied or could have satisfied its minimum general reserve and net worth requirements as determined under ORS 722.142.
(4) If the director finds that notwithstanding subsection (3) of this section, it is an unsafe or unsound practice for an association to exercise the powers granted by subsection (2)(c) to (f) of this section, the director may issue a cease and desist order directing the association to cease exercising such powers. An order issued under this subsection may be based on, but need not be limited to, a finding that the financial condition or management capability of the association is not adequate to exercise such powers and assume the risks involved in the exercise of such powers.
(5) A savings association may invest its assets in a service corporation as provided in ORS 722.309. [1975 c.582 §92; 1977 c.166 §3; 1979 c.863 §6; 1981 c.472 §18; 1983 c.321 §5; 1985 c.762 §59; 1987 c.911 §17; 1997 c.631 §539; 2005 c.80 §6]
Section: Previous 722.260 722.262 722.264 722.266 722.268 722.302 722.303 722.304 722.305 722.306 722.308 722.309 722.310 722.311 722.312 NextLast modified: August 7, 2008