justicedao/ipfs_state_laws huggingface dataset:
441-710-0527 Regular Meetings of Credit Union Board of Directors (1) For purposes of this rule, “regular meetings” mean formal board of director meetings held at definite intervals. (2) A credit union’s board of directors shall, during each calendar year, hold at least six regular meetings with at least one of the six regular meetings to be held each quarter. (3) A credit union shall specify the number of regular meetings and their frequency in its bylaws. (4) A regular meeting shall not include the credit union’s annual meeting, committee meetings, or special meetings. (5) Notwithstanding sections (1) and (2) of this rule, the Director of the Department of Consumer and Business Services may require that the credit union board of directors hold regular meetings more frequently than the number specified in the bylaws if the director reasonably believes that the credit union’s condition, practices, or activities warrant additional regular meetings. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.292 History: FSR 1-2019, adopt filed 01/14/2019, effective 01/15/2019
441-710-0530 Accrual Accounts, When Required Each credit union with assets in excess of $5 million shall use accrual accounting. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.116 History: Renumbered from 441-710-0120, FCS 2-2005, f. & cert. ef. 8-25-05 BB 4-1982, f. 8-24-82, cert. ef. 9-1-82, Renumbered from 805-072-0165
441-710-0535 Back-Up Records; Off-Site Storage Required (1) To insure the viability and reasonable continuity of the credit union in the event of a catastrophe that would destroy or make its records at the place of business useless, every credit union shall store off-site records that could be used to reconstruct the credit union’s records. The credit union shall, at the credit union, maintain a log of the records stored off-site. (2) The adequacy of the plan of each credit union for complying with this rule is subject to the approval of the Director. Each credit union shall submit its plan, and any major revision of its plan, to the Director for approval. The submission shall identify the kinds of records to be stored off-site, the procedure used to collect the records and to transport them to storage, and the place where stored. Statutory/Other Authority: ORS 723.116 Statutes/Other Implemented: ORS 723.116 History: Renumbered from 441-710-0140, FCS 2-2005, f. & cert. ef. 8-25-05 BB 4-1982, f. 8-24-82, cert. ef. 9-1-82, Renumbered from 805-072-0175
441-710-0540 Contents of Foreclosure Notices The sender of a notice form required by 2008 Or Laws, ch. 19, § 20 and as amended by 2009 Or Laws ch. 864, § 1 (Enrolled Senate Bill 628) must enter in the form and format adopted by this rule: (1) The statewide telephone contact number for handling consumer queries as 800-SAFENET (800-723-3638) (2) The telephone number of the Oregon State Bar’s Lawyer Referral Service as 503-684-3763; (3) The Oregon State Bar’s Lawyer Referral Service toll-free number as 800-452-7636; (4) The website address of the Oregon State Bar as http://www.osbar.org; (5) The website address for the organization providing more information and a directory of legal aid programs as http://www.oregonlawhelp.org (6) The toll-free consumer mortgage foreclosure information number as 800-SAFENET (800-723-3638); and (7) Information on federal loan modification programs as http://www.makinghomeaffordable.gov/. Statutory/Other Authority: ORS 86.737 Statutes/Other Implemented: ORS 86.737 History: FCS 13-2011(Temp), f. & cert. ef. 12-15-11 thru 6-12-12 FCS 9-2008, f. 10-15-08, cert. ef. 10-16-08; FCS 6-2009(Temp), f. 8-21-09 thru 2-17-10; FCS 11-2009, f. 12-2-09, cert. ef. 12-7-09
441-720-0100 Scope and Application The scope and application of OAR 441-720-0110 through 441-720-0150 are intended to permit the Oregon chartered corporate central credit union to exercise certain powers conferred on federally chartered corporate credit unions under 12 CFR Part 704. Statutory/Other Authority: ORS 723.102, 723.156 & 723.730 Statutes/Other Implemented: ORS 723.730 History: FCS 5-1992, f. & cert. ef. 12-21-92
441-720-0130 Minimum Capital Ratio (1) The corporate central credit union shall maintain a minimum ratio of risk-based capital to risk-weighted assets as follows: (a) By no later than December 31, 1992, primary capital shall be at least four percent of risk-weighted assets, or the corporate central credit union will develop and implement a plan acceptable to the Director for achieving an adequate level of primary capital consistent with the provisions of OAR chapter 441, division 720. This plan shall be submitted to the Director; (b) By January 1, 1994, total capital shall equal at least eight percent of risk-weighted assets, or the corporate central credit union will develop and implement a plan acceptable to the Director for achieving an adequate level of capital consistent with the provisions of OAR chapter 441, division 720. This plan shall be submitted to the Director. (2) The Director may modify the corporate central credit union’s reserve requirements under special circumstances. (3) The corporate central credit union’s qualifying capital base shall consist of primary and secondary capital of which at least 50 percent shall be composed of primary capital. (4) For purposes of calculating the amount of secondary capital, term subordinated debt shall not exceed 50 percent of secondary capital. Statutory/Other Authority: ORS 723.102, 723.156 & 723.730 Statutes/Other Implemented: ORS 723.730 History: FCS 5-1992, f. & cert. ef. 12-21-92
441-720-0140 Procedures, Risk-Weight Ratios and Computations (1) Procedures. Balances sheet assets and credit equivalent amounts for off-balance sheet items are assigned to a risk-weight category. The total dollar amount in each category shall be multiplied by the risk-weight assigned to that category. The sum of the categories comprises risk-weighted assets. (2) Frequency. The corporate central credit union shall calculate the ratio of capital to risk-weighted assets each month. A record of such calculation shall maintained. (3) Risk Weights for Balance Sheet Assets. Each balance sheet asset shall be assigned a risk weight of 0 percent, 20 percent, 50 percent, and 100 percent as set forth in OAR 441-720-0120. (4) Other Considerations: (a) An investment in the shares of a mutual fund is assigned to the risk category appropriate to the highest risk-weighted asset that the fund is permitted to hold. In addition, if the fund engages in the use of forwards, options, futures, or similar activities other than when used to reduce interest rate risk, then investments in the fund will be assigned to the 100 percent risk category; and (b) Accruals will be assigned the risk-weighting of the underlying asset that they represent. (5) Credit Conversion Factors for Off-Balance Sheet Items. Off-balance sheet items will be risk-weighted each month using the following credit conversion factors: (a) Zero Percent Credit Conversion Factor. Unused portions of credit lines with original maturities of six months or less, or which are unconditionally cancelable; (b) 50 Percent Credit Conversion factor: (A) Unused portions of credit lines with original maturities exceeding six months; and (B) Commitments to participate in a loan or loan package; (c) 100 Percent Credit Conversion Factor: (A) Irrevocable standby letters of credit guaranteeing financial performance, including VISA letters of credit issued by corporate central credit unions on behalf of their members, or standby letters of credit backing Industrial Revenue Bonds; (B) Forward Commitments to purchase an asset or perform under a lease contract; and (C) Securities held in safekeeping loaned with indemnification. (d) Those items and credit conversion factors addressed on a case-by-case basis by the Director. (6) Risk-based Capital Ratios: (a) The primary capital ratio is computed by dividing primary capital by total risk-weighted assets; (b) The total capital ratio is computed by dividing risk-based capital by total risk-weighted assets; and (c) Month-end amounts will be used to calculate corporate central credit union capital ratios. Statutory/Other Authority: ORS 723.102, 723.156 & 723.730 Statutes/Other Implemented: ORS 723.730 History: FCS 5-1992, f. & cert. ef. 12-21-92
441-720-0160 Fidelity Bond Coverage for Corporate Credit Union A corporate central credit union referred to in ORS 723.730, shall: (1) On and following January 1, 1998, meet the requirements of 12 CFR 704.18.7, Fidelity Bond Coverage, except as provided in section (2) of this rule. (2) For the purpose of meeting Oregon requirements for fidelity bond coverages, all references to the “National Credit Union Administration” or “NCUA” in section (1) and (2) of this rule shall mean the Director of the Department of Consumer and Business Services acting through the Administrator of the Division of Financial Regulation. Statutory/Other Authority: ORS 723.730(2) Statutes/Other Implemented: ORS 723.730(2) History: FSR 11-2019, minor correction filed 07/03/2019, effective 07/03/2019 FCS 4-1997, f. 12-12-97, cert. ef. 1-1-98
441-720-0200 Purpose, Authority for Federal Tie-In Rules ORS 723.156 authorizes the Director to grant to state chartered credit unions powers federally chartered credit unions have notwithstanding state law, if it would serve the public convenience and advantage, and equalize and maintain the quality of competition between state chartered credit unions and federally chartered credit unions. The tie-in rules hereafter adopted are done pursuant to 723.156. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.156 History: Renumbered from 441-710-0160, FCS 2-2005, f. & cert. ef. 8-25-05 FID 5-1986, f. & cert. ef. 8-27-86, Renumbered from 805-072-0250
441-720-0215 Procedures Required Prior to Exercise of Certain Investment Powers (1) A credit union shall not exercise the investment powers granted credit unions by OAR 441-720-0220 and 441-720-0225, unless it first adopts investment procedures and policies covering the type of investment programs it intends to engage in. (2) The investment policies and procedures shall: (a) Describe the particular type of investment it intends to engage in, summarize the procedures and policies developed for each program and describe investment objectives for the program; (b) Name the person who will do the investing and any professionals who will be used as adviser; and (c) Show the ability and training of the person that qualifies the person to do the investing. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.156 & 723.602 History: Renumbered from 441-710-0180, FCS 2-2005, f. & cert. ef. 8-25-05 FID 5-1986, f. & ef. 8-27-86; Renumbered from 805-072-0260
441-720-0220 Investments in Investment and Borrowing Repurchase Agreements, Bankers Acceptances, Participation in Federal Funds Authorized; Adoption of Federal Statutes, Regulations on Such Investments A state credit union is authorized to invest in investment and borrowing repurchase agreements, bankers acceptances and federal funds permissible for federal credit unions as described in the following provisions. (1) A credit union may sell Federal funds to a financial institution defined in ORS 706.008, as long as the interest or other consideration received from the financial institution is at the market rate for Federal funds transactions. (2) A credit union may enter into an investment repurchase transaction so long as: (a) Any securities the credit union receives are permissible investments for federal credit unions; (b) The credit union, or its agent, either: (A) Takes physical possession or control of the repurchase securities; or (B) Is recorded as owner of them through the Federal Reserve Book Entry Securities Transfer System. (c) The credit union, or its agent, receives a daily assessment of their market value, including accrued interest; (d) The credit union maintains adequate margins that reflect a risk assessment of the securities and the term of the transaction; and (e) The credit union has entered into signed contracts with all approved counterparties. (3) A credit union may enter into a borrowing repurchase transaction so long as: (a) The transaction meets the requirements of section (2) of this rule; (b) Any cash the credit union receives is subject to a borrowing limit of 50% of paid-in and unimpaired capital and surplus; (c) Any investments the credit union purchases with that cash are permissible for credit unions; and (d) The investments purchased with that cash mature no later than the maturity of the borrowing repurchase transaction. (4) A credit union may invest in banker’s acceptances issued by a financial institution defined in ORS 706.008. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.156 & 723.602 History: Renumbered from 441-710-0190, FCS 2-2005, f. & cert. ef. 8-25-05 FID 5-1986, f. & cert. ef. 8-27-86, Renumbered from 805-072-0265
441-720-0225 Adoption of Federal Statutes, Rulings, Policy Regarding Mortgage Assumptions (1) A state credit union is authorized to exercise the powers to allow nonmembers to assume real estate mortgages of members conferred on a federally chartered credit union as follows: (a) The assumption is in conjunction with the nonmember’s purchase of the member’s principal residence; (b) The nonmember assumes only the remaining unpaid balance of the loan; (c) The terms of the loan remain unchanged; and (d) There is no extension of the original maturity date specified in the loan agreement with the member. (2) An assumption is impermissible if the original loan was made with the intent of having a nonmember assume the loan. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.156 & 723.602 History: Renumbered from 441-710-0200, FCS 2-2005, f. & cert. ef. 8-25-05 FID 5-1986, f. & cert. ef. 8-27-86, Renumbered from 805-072-0270
441-720-0320 Collateral and Security Requirements (1) A credit union must require collateral commensurate with the level of risk associated with the size and type of any commercial loan. Collateral must be sufficient to ensure adequate loan balance protection along with appropriate risk sharing with the borrower and principal(s). A credit union making an unsecured loan must document in the loan file the mitigating factors that sufficiently offset the relevant risk. (2) A credit union that does not require the full and unconditional personal guarantee from the principal or principals of the borrower, who have a controlling interest in the borrower, must document in the loan file the mitigating factors that sufficiently offset the relevant risk. (3) Collateral is not required when the loan is guaranteed or insured by a private insurer that the credit union has determined has the financial capacity and willingness to perform under the terms of the guaranty or insurance agreement. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0325 Recordkeeping Requirements The credit union must separately identify member business and commercial loans in its records and in the aggregate on its regulatory financial reports. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0330 Aggregate Lending Limit to a Member and Associated Borrowers The aggregate amount of the credit union’s outstanding loans and any unfunded commitments to a member (including those loans guaranteed by the member) and a group of associated borrowers may not exceed the greater of 15 percent of the credit union's net worth; or $100,000. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0335 Calculation of the Aggregate 15% Lending Limit For purposes of complying with the provisions of OAR 441-720-0330, a credit union must: (1) Calculate the numerator by adding together the credit union’s total outstanding balance(s) of loans and any unfunded commitments to any one member (including those loans that the member guarantees) and groups of associated borrowers. From this amount, subtract any loans fully secured by shares, including deposits, in the credit union or in another financial institution; and (2) Divide the numerator by the net worth of the credit union. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0340 Aggregate (Net) Member Business Loan Limit (1) For purposes of this rule, “net member business loans” means the amount of outstanding balances and any unfunded commitments of the member business loans, reduced by any loan in which a federal or state agency (or its political subdivision) fully insures repayment, fully guarantees repayment, provides an advance commitment to purchase the loan in full, or any loan that is fully secured by a lien on a 1-4 family dwelling; or any portion of a loan sold as a participation interest without recourse and qualifying for true sales accounting under GAAP. (2) The aggregate limit on the amount of a credit union’s net member business loan balances and any unfunded commitments, is the lesser of: (a) 1.75 times the credit union’s actual net worth; or (b) 1.75 times the minimum net worth required under section 1790d(c)(l)(A) of the Federal Credit Union Act (12 USC 1790d(c)(1)(A), as of 2018). (3) Purchases of non-member commercial loans or non-member participation interests are excluded from the aggregate member business loan limit provided the credit union acquired the non-member loans or participation interests in compliance with all relevant laws and regulations and it is not, with one or more credit unions, trading member business loans to circumvent the aggregate limit. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0345 Exceptions to the Aggregate (Net) Member Business Loan Limit A credit union that has a low-income designation, or participates in a community development financial institutions program, or was chartered for the purpose of making member business loans, or which as of the date of enactment of the Credit Union Membership Access Act of 1998 had a history of primarily making commercial loans, is exempt from compliance with the aggregate member business loan limits in this section. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0360 Commercial Loan Risk Classifications Commercial loans must be classified (graded) as to risk, based upon factors established by the credit union. Such factors should include the analysis of the credit and supporting documentation for the risk classification (grade) given, based upon the financial strength of the borrower. The credit risk rating system should include, but not be limited to, these categories: (1) SPECIAL MENTION. A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the credit union’s credit position at some future date. (2) SUBSTANDARD. A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. The loan classified has a well-defined weakness or weaknesses that jeopardize the liquidation of debt. The loan is characterized by the distinct possibility that the credit union will sustain some loss if the deficiencies are not corrected. (3) DOUBTFUL. A loan classified doubtful has all the weaknesses inherent in one classified substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include: proposed merger, acquisition, or liquidation actions; capital injection; perfecting liens on collateral; and refinancing plans. (4) LOSS. A loan classified loss is considered uncollectible and of such little value that its continuance as a loan is not warranted. This classification does not necessarily mean that the loan has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may occur in the future. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02
441-720-0370 Prohibited Commercial Loans (1) A credit union may not grant a commercial loan to the credit union’s senior management, which shall include all chief officers, vice presidents and staff directors, as well as any credit union staff directly involved in commercial lending management, underwriting, servicing, or collecting; or any associated borrower or the immediate family member of anyone listed in this section. (2) Equity agreement/joint ventures. The credit union may not grant a commercial loan if any additional income received by the credit union or senior management employees is tied to the profit or sale of the business or commercial endeavor for which the loan is made. (3) Loans to members of the board of directors. A credit union may not grant a commercial loan to a director who is a member of the credit union board of directors unless the board of directors approves in advance granting the loan and the director is recused from the decision making process. (4) Conflicts of interest. Any third-party used by a credit union to meet the requirements of this part must be independent from the commercial loan transaction and may not have a participation interest in a loan or an interest in any collateral securing a loan that the third-party is responsible for reviewing, or an expectation of receiving compensation of any sort that is contingent on the closing of the loan, with the following exceptions: (a) A third-party may provide a service to the credit union that is related to the transaction, such as loan servicing. (b) The third-party may provide the requisite experience to a credit union and purchase a loan or a participation interest in a loan originated by the federally insured credit union that the third-party reviewed. (c) A credit union may use the services of a credit union service organization that otherwise meets the requirements of OAR 441-720-0310(2)(c) of this part even if the credit union service organization is not independent from the transaction, provided the credit union has a controlling financial interest in the credit union service organization as determined under GAAP. Statutory/Other Authority: ORS 723.102 Statutes/Other Implemented: ORS 723.152, 723.156 & 723.512 History: FSR 1-2022, amend filed 05/18/2022, effective 06/01/2022 FCS 2-2002, f. & cert. ef. 8-27-02