(1) Each credit union shall obtain and maintain a fidelity bond or irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, which includes coverage in accordance with any rules of the Director of the Department of Consumer and Business Services, to protect the credit union against losses caused by occurrences covered therein such as fraud, dishonesty, forgery, embezzlement, misappropriation, misapplication of duty and all acts of its agents, directors, officers, committee members, employees or attorneys. The minimum amount of the bond or letter of credit shall be determined based on the amount of the credit union’s total assets in accordance with the following table:
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AssetsMinimum Amount
of Bond
or Letter of Credit
$0 to $10,000Coverage equal to
the credit union’s
assets.
$10,001 to $1,000,000$10,000 for each
$100,000 or
fraction thereof.
$1,000,001 to $50,000,000$100,000 plus
$50,000 for each $1
million or fraction
thereof over $1
million.
$50,000,001 to $295,000,000$2.55 million plus
$10,000 for each $1
million or fraction
thereof over $50
million.
More than $295,000,000$5 million.
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(2) Each bond or letter of credit shall include a faithful performance clause to cover the chief financial officer. Each bond or letter of credit shall be approved by the director who may require such additional amounts as the director considers necessary.
(3) All bond claims or claims upon a letter of credit that exceed one percent of the credit union’s reserves and undivided earnings or that are related to the errors or omissions of an officer, director or committee member shall be reported to the director. [1975 c.652 §15; 1987 c.286 §2; 1991 c.331 §124; 1995 c.319 §1; 1997 c.249 §216; 1997 c.631 §542; 1997 c.832 §2; 1999 c.185 §10; 2001 c.308 §1]
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