ORS Chapter 715
Chapter 715 — BankHolding Companies; Financial Holding Companies
2009 EDITION
BANKAND FINANCIAL HOLDING COMPANIES
FINANCIALINSTITUTIONS
715.012 Applicationto become financial holding company or bank holding company of Oregon stockbank; filing with Federal Reserve Board and director
715.017 Out-of-statefinancial holding companies; out-of-state bank holding companies
715.019 Mutualfinancial holding companies; mutual bank holding companies; authority; rules
715.045 Examinationof certain financial holding companies or bank holding companies; payment ofcosts of examination
715.055 Submissionof reports filed with Federal Reserve Board; additional information; rules;penalty for failure to submit
715.075 Authorityof financial holding company or bank holding company to acquire corporationlicensed as insurance producer; rules
715.090 Authorityof financial holding company or bank holding company to share informationconcerning customers with controlled company
715.010 [Amended by1973 c.797 §336; 1977 c.135 §27; 1979 c.88 §15; 1983 c.296 §9; 1985 c.12 §8;1989 c.12 §1; 1989 c.447 §1; repealed by 1997 c.631 §567]
715.012Application to become financial holding company or bank holding company ofOregon stock bank; filing with Federal Reserve Board and director. (1) If acompany proposes to become a financial holding company or a bank holdingcompany of an Oregon stock bank, when the company files its application and anyrelated materials with the Federal Reserve Board, the company shall submit tothe Director of the Department of Consumer and Business Services copies of theapplication and related materials.
(2)The director may submit comments and recommendations for approval ordisapproval to the Federal Reserve Board concerning any application to become afinancial holding company or a bank holding company of an Oregon stock bankthat is filed with the Federal Reserve Board.
(3)Following the filing of an application to become a financial holding company ora bank holding company and the submission to the director of the materialsdescribed in subsection (1) of this section, the company shall submit to thedirector copies of any written communications between itself and the FederalReserve Board that relate to the application, including copies of any writtenapproval or denial of the application. A copy of each such writtencommunication shall be submitted to the director within 10 days after theoriginal thereof is sent or received by the company. [1997 c.631 §329; 2001c.377 §30]
715.015 [1973 c.797 §337;1975 c.544 §41; 1977 c.135 §28; 1979 c.88 §16; 1985 c.12 §9; 1985 c.786 §44;repealed by 1997 c.631 §567]
715.017Out-of-state financial holding companies; out-of-state bank holding companies. An out-of-statefinancial holding company or an out-of-state bank holding company may becomethe financial holding company or the bank holding company of:
(1)An Oregon stock bank or an in-state federal stock bank, by itself or togetherwith any predecessor, only if the Oregon stock bank or in-state federal stockbank has been engaged in the business of banking in this state for a period ofnot less than three years prior to the date on which the out-of-state financialholding company or the out-of-state bank holding company becomes the financialholding company or the bank holding company of the Oregon stock bank orin-state federal stock bank.
(2)An Oregon stock bank organized under ORS 707.025 that has merged with oracquired all or substantially all of the assets and liabilities of an Oregonstock bank or in-state federal stock bank, by itself or together with anypredecessor, only if the Oregon stock bank or in-state federal stock bank hasbeen engaged in the business of banking in this state for a period of not lessthan three years prior to the date on which the out-of-state financial holdingcompany or the out-of-state bank holding company becomes the financial holdingcompany or the bank holding company of the Oregon stock bank. [1997 c.631 §330;2001 c.377 §31]
715.019Mutual financial holding companies; mutual bank holding companies; authority;rules.(1) An Oregon nonstock bank may, pursuant to rules adopted by the Director ofthe Department of Consumer and Business Services, reorganize so that theresulting entities are an Oregon stock savings bank, controlled by a mutualfinancial holding company or a mutual bank holding company. For purposes ofthis section, a “mutual financial holding company or a mutual bank holdingcompany” is a financial holding company or a bank holding company that does notissue capital stock. The mutual financial holding company shall be mutuallyowned by the depositors of the reorganizing Oregon nonstock bank andshareholders of other companies under the control of the mutual financialholding company. The mutual bank holding company shall be mutually owned by thedepositors of the reorganizing Oregon nonstock bank.
(2)A mutual bank holding company may acquire or invest in the stock of one or morestock savings banks.
(3)A mutual bank holding company may merge with or acquire another mutual bankholding company.
(4)A mutual bank holding company formed under this section shall be subject to theprovisions of this chapter.
(5)The director is authorized to adopt rules to carry out the provisions of thissection. [1997 c.631 §330a; 2001 c.377 §32]
715.020 [Repealed by1973 c.797 §428]
715.025 [1973 c.797 §338;1985 c.12 §10; repealed by 1997 c.631 §567]
715.030 [Repealed by1973 c.797 §428]
715.035 [1973 c.797 §339;1977 c.135 §29; 1983 c.37 §24; 1985 c.786 §45; repealed by 1997 c.631 §567]
715.040 [Repealed by1973 c.797 §428]
715.045Examination of certain financial holding companies or bank holding companies;payment of costs of examination. (1) The Director of the Department ofConsumer and Business Services may examine the books, accounts, records andfiles of a financial holding company or a bank holding company of an Oregonstock bank when the director considers it necessary to evaluate the conditionof the Oregon stock bank that is a subsidiary of the financial holding companyor the bank holding company.
(2)The financial holding company or the bank holding company examined shall pay tothe director the actual cost of the examination, as determined by the director.[1973 c.797 §340; 1997 c.631 §326; 2001 c.377 §33]
715.050 [Repealed by1973 c.797 §428]
715.055Submission of reports filed with Federal Reserve Board; additional information;rules; penalty for failure to submit. (1) A financial holding company or abank holding company of an Oregon stock bank shall submit to the Director ofthe Department of Consumer and Business Services, in a form and formatspecified by the director, a copy of specified reports that the financialholding company or the bank holding company is required to submit to theFederal Reserve Board. The financial holding company or bank holding companyshall submit the copies to the director within the time periods required byapplicable federal law and regulation for filing the originals with the FederalReserve Board.
(2)The director may call for additional information from a financial holdingcompany or a bank holding company, in a form and format that the director mayprescribe by rule or order, if the director considers the additionalinformation necessary in order to obtain full knowledge of the condition of theOregon stock bank that the financial holding company or the bank holdingcompany controls. The financial holding company or the bank holding companyshall submit the additional information to the director within the time periodprescribed by the director.
(3)If a financial holding company or a bank holding company fails to submit areport or additional information as required by this section, the financialholding company or the bank holding company shall pay to the director a penaltyof up to $1,000 for each day the financial holding company or bank holdingcompany fails to comply. If the financial holding company or the bank holdingcompany delays or refuses to pay the penalty upon demand by the director, thedirector may maintain an action in the director’s name against the delinquentfinancial holding company or bank holding company for the recovery of thepenalty. [1973 c.797 §341; 1997 c.631 §327; 2001 c.377 §34; 2009 c.541 §36]
715.065 [1985 c.12 §12;1987 c.371 §3; 1995 c.6 §4; repealed by 1997 c.631 §567]
715.070 [1985 c.12 §13;1987 c.371 §4; repealed by 1997 c.631 §567]
715.075Authority of financial holding company or bank holding company to acquirecorporation licensed as insurance producer; rules. A financialholding company or a bank holding company may acquire and hold all or part ofthe stock of a corporation that is or may thereafter be licensed as aninsurance producer as required by ORS 744.053 to transact one or more of theclasses of insurance described in ORS 744.062, subject to the followingrequirements:
(1)The acquisition and holding of such stock shall be subject to the approval ofthe Director of the Department of Consumer and Business Services. The directorshall base consideration for approval on the condition of the financial holdingcompany or the bank holding company, the adequacy of a formal business plan forthe insurance activities and the existence of satisfactory management for thecorporation.
(2)The director may revoke or restrict the ongoing authority of the financialholding company or the bank holding company to hold stock in the corporation ifthe condition of the financial holding company or the bank holding company orof any bank owned by it substantially deteriorates or if the insuranceactivities are adversely affecting the financial holding company or the bankholding company or any bank owned by it.
(3)For each calendar year during which a financial holding company or a bankholding company owns all or part of any corporation licensed as an insuranceproducer as required by ORS 744.053, the financial holding company or the bankholding company shall file a written report with the director. The report shallbe filed no later than March 31 of the following year and shall disclose theinsurance activities of the corporation. The required contents of the reportshall be established by the director by rule. The reports filed with thedirector under this subsection shall be available for public inspection in theoffice of the director.
(4)The corporation shall not in any manner use customer information obtained bythe institution from another insurance producer to promote, develop or solicitinsurance business for the corporation unless the other insurance producerconsents to such use of the customer information.
(5)The corporation shall be subject to the limitations applicable to depositoryinstitutions under ORS 746.213 to 746.219. For the purpose of this subsection, “depositoryinstitution” has the meaning given that term in ORS 746.213. [1987 c.916 §4;1989 c.331 §30; 1989 c.701 §66; 1997 c.831 §3; 2001 c.191 §54; 2001 c.377 §35;2003 c.363 §9; 2003 c.364 §60a; 2005 c.194 §2]
715.090Authority of financial holding company or bank holding company to shareinformation concerning customers with controlled company. (1) A financialholding company or bank holding company may share financial and creditinformation concerning its customers with any company of which it directly orindirectly controls 50 percent or more of the voting shares. Any company socontrolled by a financial holding company or bank holding company may shareinformation concerning its customers with the financial holding company or bankholding company and with any other company so controlled by the same financialholding company or bank holding company. This section shall not be construed asotherwise permitting or limiting the sharing or disclosure of information.
(2)For purposes of this section, “customers” includes but is not limited todepositors, borrowers, credit card holders, lessees, purchasers under contractsand applicants for credit. [1985 c.357 §2; 2001 c.377 §36]
715.100 [1985 c.12 §17;repealed by 1987 c.371 §5]
715.910 [1975 c.544 §43;repealed by 1997 c.631 §567]
715.990 [Amended by1973 c.797 §342; repealed by 1975 c.544 §62]
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