ORS Chapter 716
Chapter 716 — SavingsBanks
2009 EDITION
SAVINGSBANKS
FINANCIALINSTITUTIONS
ORGANIZATION
716.024 Provisionsof Bank Act applicable to Oregon savings banks and Oregon stock savings banks
716.028 Applicationfor authority to organize; fee; contents
716.032 Investigationand ruling on application
716.040 Articlesof incorporation; contents
716.050 Approvalof articles; certificate of incorporation; filing
716.055 Creationof guaranty and expense funds
716.060 Guarantyfund
716.070 Expensefund
716.080 Issuanceof charter
716.100 Effectof failure to complete organization; liabilities
716.120 Conditionsprecedent to transaction of business
716.135 Amendmentof articles of incorporation
716.140 Resolutionfor amending articles
716.145 Formand content of articles of amendment
716.160 Restatedarticles of incorporation; procedure; contents
716.180 Bylaws
716.185 Registeredagent; registered office
716.187 Changesin registered office or agent
716.190 Resignationof registered agent; discontinuance of registered office
716.195 Serviceof process on Oregon savings bank
DIRECTORS
716.205 Salariesof certain directors
716.210 Numberand qualifications of directors
716.320 Removalof director; vacation of director’s office
INVESTMENTSAND LOANS
716.410 Limitationson investments
716.420 Permittedinvestments
716.441 Investmentsin equipment trust certificates
716.450 Investmentsin certain obligations
716.460 Investmentsin demand notes secured by deposit accounts
716.520 Investmentsin bankers’ acceptances, bills of exchange, savings or time accounts; limits
716.530 Investmentsin corporate bonds, notes and debentures
716.535 Investmentsin common stock of federally chartered corporation providing secondary mortgagesale markets and Federal Home Loan Bank
716.540 Investmentsin obligations of reconstruction and development banks
716.545 Investmentsin bonds of Dominion of Canada
716.552 Investmentsin notes or bonds secured by real estate mortgages or trust deeds
716.554 Participationin investments in notes or bonds secured by real estate mortgages or trustdeeds
716.556 Investmentin loans secured by pledged notes or bonds
716.558 Investmentin notes or bonds secured by mortgages or trust deeds on real property leases
716.562 Investmentin notes or bonds secured by mortgages or trust deeds to finance buildingconstruction and improvement
716.564 Investmentin notes or bonds secured by mortgages or trust deeds to finance real estatedevelopment
716.566 Documentsto be furnished by borrower in real estate loans
716.568 Requirementof insurance for loan secured by mortgage, trust deed or other instrument onreal estate
716.572 Mortgageloan applications; conditions for granting loan; manner of holding mortgagesand trust deeds
716.574 Purchaseof real estate sale contract as loan; authority to acquire contracts
716.578 Purchaseof notes secured by real estate from third persons
716.584 Limitationson single loans on real estate; exceptions
716.586 Creditcard transactions
716.588 Investmentsin certain corporate capital stocks; conditions; restrictions on corporateindebtedness
716.590 Miscellaneousinvestments; conditions
716.592 Pledgingassets to secure public funds
716.594 Authorityof Oregon savings bank to acquire corporation licensed as insurance producer;rules
POWERS,DUTIES AND REGULATION
716.600 Relationshipto powers of federal savings banks
716.610 Generalpowers; licensing as insurance producer; rules
716.626 Certificatesindicating contribution to guaranty or expense funds
716.630 Realestate held for use as place of business
716.780 Creditingportion of net earnings to guaranty fund
716.790 Computationof guaranty fund
716.800 Repaymentof contributions made to expense fund and guaranty fund
716.805 Determiningearnings
716.830 Paymentof dividends; classification of depositors; certificates of deposit; notice ofchange of rate
716.840 Liabilityof directors voting improper dividend
716.850 Falseadvertising of surplus or guaranty fund prohibited
DISSOLUTION;LIQUIDATION
716.900 Voluntarydissolution of Oregon nonstock banks; priority of payment
716.905 Noticeof intention to close; disposition of unclaimed deposits
716.910 Reportto director; termination of existence
716.915 Voluntaryliquidation
CIVILPENALTIES
716.991 Civilpenalties
716.010 [Repealed by1973 c.797 §428]
716.020 [Amended by1973 c.797 §344; repealed by 1997 c.631 §567]
ORGANIZATION
716.024Provisions of Bank Act applicable to Oregon savings banks and Oregon stock savingsbanks.(1) The provisions of ORS chapter 706 relating to financial institutions, thefollowing sections in the Bank Act and any other provisions of the Bank Actthat by their terms pertain to Oregon savings banks shall apply to Oregonsavings banks: ORS 707.075, 707.080, 707.090, 707.100, 707.120, 707.145,707.150, 707.155, 707.170, 707.180, 707.252, 707.254, 707.625, 707.642, 707.646(1), 707.660, 707.665, 707.670 to 707.764, 708A.175, 708A.405, 708A.410,708A.420 to 708A.535, 708A.590, 708A.600, 708A.640, 708A.645, 708A.655,708A.990, 711.405 to 711.670, 711.980 and 714.075.
(2)In addition to the statutes listed in subsection (1) of this section, to theextent applicable, the following provisions of the Bank Act apply to Oregonstock savings banks: ORS 707.050, 707.110, 707.140, 707.195, 707.200 to707.230, 707.244 to 707.250, 707.256, 707.258 to 707.272, 707.350, 707.380 to707.410, 707.415, 707.610 to 707.623, 707.644, 707.646 (2) and 707.648. [1973c.797 §345; 1975 c.544 §44; 1977 c.555 §15; 1979 c.88 §24; 1981 c.192 §24; 1983c.37 §25; 1983 c.367 §4; 1985 c.762 §46; 1985 c.786 §46; 1985 c.796 §4; 1987c.197 §8a; 1989 c.324 §72; 1997 c.631 §331; 1999 c.506 §4]
716.028Application for authority to organize; fee; contents. Any number ofpersons, not less than five, desiring to organize an Oregon savings bank shall,as prospective incorporators, first file an application with the Director ofthe Department of Consumer and Business Services for authority to organize anOregon savings bank. The applicants shall pay to the director at the time oftheir application a fee of $2,500, no part of which will be refunded. Theapplication shall be signed by one of the applicants. The following informationand documents shall be included in or with the application:
(1)The corporate name.
(2)The proposed location of the initial principal place of business.
(3)The name, occupation, residence and post-office address of each prospectiveincorporator.
(4)The proposed articles of incorporation. The following apply:
(a)If the Oregon savings bank is to be organized as an Oregon stock savings bank,the articles of incorporation shall conform to the provisions set forth in ORS707.110; and
(b)If the Oregon savings bank is to be organized as an Oregon nonstock bank, thearticles of incorporation shall conform to the provisions set forth in ORS716.040.
(5)The names and residence addresses of the proposed senior officers and thenames, occupations and residence addresses of proposed initial directors.
(6)If the Oregon savings bank is being organized as an Oregon stock savings bank,the number of shares of voting stock proposed to be subscribed for by theincorporators and each of the proposed directors and senior officers, and thenames of any other persons who are expected to subscribe for, to own or tocontrol more than 10 percent of the voting stock and the amount of stock forwhich each proposes to subscribe.
(7)Evidence satisfactory to the director of the character, financialresponsibility and ability of the prospective incorporators, directors andsenior officers.
(8)Evidence satisfactory to the director, in the form of a business plan and suchadditional information as the director may require, demonstrating that theproposed Oregon savings bank is likely to be financially successful.
(9)The proposed operating policies of the Oregon savings bank.
(10)Any other information that the director may require. [1973 c.797 §346; 1977c.135 §58; 1979 c.88 §25; 1997 c.631 §332; 2003 c.14 §444]
716.029 [1985 c.762 §48;repealed by 1997 c.631 §567]
716.030 [Repealed by1973 c.797 §428]
716.032Investigation and ruling on application. The Director of the Department ofConsumer and Business Services shall investigate and rule on the applicationfor authority to organize in the manner specified for institutions in ORS707.080, 707.090 and 707.145. [1973 c.797 §347; 1977 c.135 §30; 1997 c.631 §333]
716.036 [1973 c.797 §348;repealed by 1997 c.631 §567]
716.040Articles of incorporation; contents. (1) Not less than five persons mayassociate themselves by articles of incorporation to form an Oregon savingsbank, either as an Oregon stock savings bank or as an Oregon nonstock bank. Ifthe Oregon savings bank is organized as an Oregon stock savings bank, its articlesof incorporation shall conform to the provisions set forth in ORS 707.110. Ifthe Oregon savings bank is organized as an Oregon nonstock bank, its articlesof incorporation shall conform to the provisions of subsection (2) of thissection, be executed in duplicate, signed by the incorporators and submitted tothe Director of the Department of Consumer and Business Services.
(2)The articles of incorporation of an Oregon nonstock bank shall specify:
(a)The name by which the Oregon nonstock bank is to be known.
(b)The initial principal place where its business is to be transacted, naming thecity or town and county.
(c)The address, including street and number, and mailing address, if different, ofits initial registered office and the name of its initial registered agent atthat office.
(d)The name of each incorporator.
(e)The term of its existence, which may be perpetual.
(f)The purpose for which it is organized.
(g)The sums that each incorporator will contribute in cash to the initial guarantyfund and the expense fund, as provided in ORS 716.060 and 716.070.
(h)The initial board of directors of the Oregon nonstock bank, composed of notless than five persons, at least three of whom shall be incorporators, whoshall serve until their successors are regularly elected and qualified.
(3)The articles of incorporation also may contain any lawful provisions for theregulation of the business, for the conduct of the affairs of the Oregonnonstock bank, defining and regulating the powers of the directors oreliminating or limiting the personal liability of directors to the extentpermitted under ORS 707.110 (5)(c). [Amended by 1973 c.797 §349; 1989 c.447 §2;1991 c.883 §12; 1997 c.631 §334; 2005 c.192 §12]