(1) The Director of the Department of Consumer and Business Services may appoint a conservator for an association if the director, as a result of any examination or from any report made to the director, reasonably believes that the public interest will be served by the appointment of a conservator and if the director finds that the association:
(a) Is in an impaired condition;
(b) Is engaging in practices that threaten to result in an impaired condition;
(c) Is in violation of an order of the director issued under this chapter and the order has become final by operation of law or on appeal; or
(d) Is in violation of an injunction issued under this chapter.
(2) The conservator may be the director, an examiner or any other person. Upon the appointment of a conservator, the director shall apply immediately to the circuit court for the county in which one or more offices of the association is located for confirmation of the appointment and proceedings in accordance with this section. The court shall confirm the appointment if it finds that one or more grounds exist for the appointment. In conservatorship proceedings the circuit courts have full power to conserve the assets and business of the association or to liquidate and dissolve the association.
(3) If the association is an institution insured by a federal agency, the agency or an appointee of the agency may be tendered appointment as conservator or co-conservator. If the agency or appointee accepts the appointment, it may, nevertheless, make loans on the security of, or purchase at public or private sale, any part or all of the assets of the association of which it is conservator or co-conservator, if such loan or purchase is approved by the court.
(4) A conservator shall endeavor promptly to remedy the situations complained of by the director in the application for confirmation of such appointment. Within six months after the date of the appointment, or within a reasonable time thereafter if the court extends the six months’ period:
(a) The conservator shall return the association to the board of directors thereof and thereafter it shall be managed and operated as if no conservator had been appointed; or
(b) The conservator shall proceed to liquidate and dissolve the association.
(5) If the director or an examiner is appointed conservator, the director or examiner shall receive no additional compensation. However, if another person is appointed, then the compensation of the conservator, as determined by the court, shall be paid by the association.
(6) For purposes of this section, “impaired condition” means a condition in which the assets of a savings association in the aggregate do not have a fair value equal to the aggregate amount of liabilities of the association to its creditors plus an amount equal to the minimum general reserve required under ORS 722.142. Liabilities to creditors include savings liabilities, capital notes and debentures and liabilities to all other persons. [1975 c.582 §131; 1985 c.762 §74]
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