Oregon Statutes - Chapter 723 - Credit Unions - Section 723.631 - Regular reserve; reserve for loan losses; rules.

(1) A credit union shall establish and maintain a regular reserve for contingencies. The Director of the Department of Consumer and Business Services may adopt rules prescribing:

(a) Minimum net worth requirements for credit unions; and

(b) Actions to be taken by a credit union when the net worth of the credit union falls below the applicable minimum net worth requirement.

(2) In addition to the regular reserve required in subsection (1) of this section, a credit union shall establish a reserve for loan losses. The credit union shall allocate sufficient funds each month to the reserve for loan losses to maintain the reserve for loan losses in an amount at least equal to the credit unionís best estimate of the losses the credit union expects to sustain in the liquidation of currently outstanding loans. [1981 c.192 §38 (enacted in lieu of 723.632); 1995 c.319 §3; 2005 c.95 §10]

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Last modified: August 7, 2008