(1) A savings association shall not make, purchase or hold any investments or loans except investments and loans of the kinds authorized by ORS 722.302 to 722.356. However, a loan or investment made in violation of this subsection shall be due and payable according to its terms and the obligation thereof shall not be impaired.
(2) A director or officer of an association who knowingly violates, participates in or assents to a violation of, or who knowingly permits any of the officers or agents of the association to violate, subsection (1) of this section is liable individually for all losses that the association, its account holders or stockholders sustain in consequence of such violation.
(3) The Director of the Department of Consumer and Business Services may require a director or officer of an association who knowingly violates, participates in or assents to a violation of subsection (1) of this section, or who knowingly permits any officer or agent of the association to violate subsection (1) of this section, to deposit with the association an indemnity bond, insurance or collateral. Such deposit shall be of a kind and amount sufficient to indemnify the association against losses that the association, its account holders or stockholders may sustain in consequence of such violation. The amount considered sufficient to indemnify the association shall be determined by the director. When an unauthorized investment has been sold or disposed of without recourse, the director shall direct all or that part of the indemnity remaining after deducting any loss to be released. When the balance of an unauthorized loan has been reduced to an amount which would permit the loan to be made in accordance with ORS 722.302 to 722.356, the director shall direct the indemnity to be released. In making a determination under this section, the director may require an independent appraisal of the investment or the loan security.
(4) In addition to subsections (2) and (3) of this section, whenever the director determines that an association has made an investment or loan that is unsafe or unsound, or is not authorized by ORS 722.302 to 722.356, the director may order the association to do one or both of the following:
(a) Dispose of the investment or loan; or
(b) Establish a specific reserve not to exceed the book value of the investment or the unpaid balance of the loan and to maintain such reserve until the investment is disposed of or the loan is paid. [1975 c.582 §108]
Section: Previous 722.340 722.342 722.345 722.350 722.352 722.354 722.355 722.356 722.360 722.365 722.370 722.375 722.380 722.385 722.402 NextLast modified: August 7, 2008