reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0510 - Annual Audit; Qualified Persons to Perform; Content; Time for Filing, Reporting Action Taken

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The person
			 performing the comprehensive annual audit required by ORS
			 723.322 must be qualified by
			 knowledge and experience to perform credit union audits and must be approved by
			 the Director as so qualified.
(2)
			 The audit should test whether or not the accounting systems and methods used by
			 the credit union, and the accounts of the credit union, accurately reflect the
			 condition of the business. The auditor shall prepare the audit report in
			 accordance with the guidelines furnished by the Director. The audit report
			 shall include a management letter; and the management letter shall include, but
			 need not be limited to:
(a) An evaluation of
			 the soundness of the credit union;
(b) An evaluation of its internal
			 controls;
(c) The state of its
			 compliance with applicable statutes and rules; and
(d) An evaluation of the extent and
			 effectiveness of its use of generally accepted accounting principles.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0515 - Required "Additional Reports" Defined

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As used in ORS
			 723.106(1),
			 "additional reports" includes call reports of condition, lists of officers and
			 other management officials, Supervisory committee audits, management letters,
			 liquidity reserve reports, and other reports required by the
			 Director.
(2) If a credit union is
			 investing in or has loans outstanding to a CUSO, "additional reports" as used
			 in ORS 723.106(1)
			 includes reports and other information of the CUSO of the kinds described by
			 section (1) of this rule.
Stat. Auth.: ORS
				  723.102
Stats. Implemented: ORS
				  723.106
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0520 - Reports and Filings When Credit Union Invests in CUSO

Current through Register Vol. 63, No. 7, July 1, 2024
(1) When a credit union first invests in or
			 loans funds to a CUSO, the credit union shall, within 30 days after the funds
			 are first invested or loaned, file with the Director a copy of:
(a) The charter, articles of association or
			 incorporation, or partnership agreement, of the CUSO;
(b) The bylaws of the CUSO; and
(c) The most recent financial statement of
			 the CUSO.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0525 - Duty to Report Changes in Accounting Systems, Methods or Procedures

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A credit union
			 shall report to the Director any major change that affects bookkeeping or
			 accounting systems, methods and procedures at least 60 days prior to
			 implementation of the change to permit the Director to schedule examinations
			 appropriately.
(2) Any contract or
			 agreement by a credit union to purchase accounting services shall include a
			 clause acknowledging the right of the Director or authorized representatives to
			 examine any and all records of the credit union on the premises of the
			 servicer.
Stat. Auth.: ORS
				  723.102
Stats. Implemented: ORS
				  723.116 &
				  723.152
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0527 - Regular Meetings of Credit Union Board of Directors

Current through Register Vol. 63, No. 7, July 1, 2024
(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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0530 - Accrual Accounts, When Required

Current through Register Vol. 63, No. 7, July 1, 2024
Each credit union with assets in excess of $5 million shall use
				accrual accounting.
Stat. Auth.: ORS
				  723.102
Stats. Implemented: ORS
				  723.116
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0535 - Back-Up Records; Off-Site Storage Required

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Stat. Auth.: ORS
				  723.116
Stats. Implemented: ORS
				  723.116
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 710 - CREDIT UNIONS (IN GENERAL) › Section 441-710-0540 - Contents of Foreclosure Notices

Current through Register Vol. 63, No. 7, July 1, 2024
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 [File Link Not Available];
(5) The website address for the organization
			 providing more information and a directory of legal aid programs as
			 http://www.oregonlawhelp.org [File Link Not Available]
(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/ [File Link Not
			 Available].
Stat. Auth.: ORS
				  86.737
Stats. Implemented: ORS
				  86.737
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0100 - Scope and Application

Current through Register Vol. 63, No. 7, July 1, 2024
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
.
Stat. Auth.: ORS
				  723.102, ORS
				  723.156 & ORS
				  723.730
Stats. Implemented: ORS
				  723.730
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0110 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
The following definitions are adopted for the purposes of this Division:
(1) "Average Daily Assets" means the daily average of net assets calculated on the basis of assets at the close of each day in the period.
(2) "CLF" means Central Liquidity Facility.
(3) "CMO" means Collateralized Mortgage Obligation.
(4) "Capital" means the total of all corporate reserves (regular or statutory reserves, as applicable), all undivided earnings, net income, and membership capital share deposit (or equivalent) accounts.
(5) "Equity Reserves," pursuant to ORS 723.730(1), means regular or statutory reserves, and all undivided earnings, which shall be used to finance expansion, pay dividends, absorb losses or be expended for any other bona fide corporate purpose.
(6) "MCSD" means membership capital share deposit.
(7) "Membership Capital Share Deposit" account means a share, deposit, or other account that:
(a) Is established, at a minimum, as a 12-month notice account;
(b) Is limited to members;
(c) Is not subject to share insurance coverage by the NCUSIF; and
(d) In the event of liquidation of the corporate central credit union, is payable only after satisfaction of all liabilities of the liquidation estate, including uninsured obligations to shareholders and the NCUSIF. In any event, an MCSD account shall not be repayable until notice that the accountholder credit union intends to withdraw MCSD account funds from the corporate central credit union, except in the case of a credit union that is placed into liquidation, is purchased and assumed, or is merged. MCSD accounts cannot be used to pledge borrowings. If the corporate central credit union issues MCSD accounts, it shall disclose, at least annually to its members, the terms and conditions under which such accounts are issued.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0120 - Risk Weights and Risk Categories

Current through Register Vol. 63, No. 7, July 1, 2024
The following risk weights and risk categories are established
				for purposes of OAR Chapter 441, Division 720:
(1) Category One. Zero Percent Risk Weight.
(a) Coin and currency on hand or physically
			 in transit;
(b) Balances due from
			 and claims on Federal Reserve Banks;
(c) Claims on and portions of claims that are
			 unconditionally guaranteed by the United States Government or its
			 agencies;
(d) Claims Collateralized
			 by cash or eligible deposits;
(e)
			 CLF subscriptions, including U.S. Central CLF Certificates, and CLF
			 Pass-Through Loans from the CLF through U.S. Central to the corporate central
			 credit union;
(f) Asset Accounts
			 related to Member Reverse Repurchase Agreements without indemnity
			 obligation;
(g) Claims on or
			 unconditionally guaranteed by sovereign central governments of "AAA" rated
			 countries; and
(h) Accrued interest
			 receivable on any of the above.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0130 - Minimum Capital Ratio

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0140 - Procedures, Risk-Weight Ratios and Computations

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0160 - Fidelity Bond Coverage for Corporate Credit Union

Current through Register Vol. 63, No. 7, July 1, 2024
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)
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0200 - Purpose, Authority for Federal Tie-In Rules

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Stat. Auth.: ORS
				  723.102
Stats. Implemented: ORS
				  723.156
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0210 - Adoption of Federal Regulations Concerning Purchase, Sale and Pledge of Eligible Obligations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A credit
			 union may purchase, in whole or in part, within the limitations of the board of
			 directors' written purchase policies:
(a)
			 Eligible obligations of its members, from any source, if either:
(A) They are loans it is empowered to grant;
			 or
(B) They are refinanced with the
			 consent of the borrowers, within 60 days after they are purchased, so that they
			 are loans it is empowered to grant.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0215 - Procedures Required Prior to Exercise of Certain Investment Powers

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 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

Current through Register Vol. 63, No. 7, July 1, 2024
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.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0225 - Adoption of Federal Statutes, Rulings, Policy Regarding Mortgage Assumptions

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0230 - Adoption of Federal Statutes and Regulations Concerning Loan Participations

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Federal Tie-In: A state credit union is authorized to participate in making
			 loans with financial institutions as defined in ORS
			 706.008 within the limitations
			 of the board of directors' written participation loan policies, provided:
(a) No credit union may obtain an interest in
			 a participation loan if the sum of that interest and any indebtedness owed to
			 the credit union by the borrower exceeds 10 per cent of the credit union's
			 unimpaired capital and surplus;
(b)
			 A written master participation agreement is properly executed, acted upon by
			 the credit union's board of directors, or if the board has so delegated in its
			 policy, by the investment committee or senior management official(s) and
			 retained in the credit union's office. The master agreement must include
			 provisions for identifying, either through a document that is incorporated by
			 reference into the master agreement, or directly in the master agreement, the
			 participation loan or loans prior to their sale; and
(c) A credit union may sell to or purchase
			 from any participant the servicing of any loan in which it owns a participation
			 interest.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0300 - Definitions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) "Associated
			 borrower" means any other person or entity with a shared ownership, investment,
			 or other pecuniary interest in a business or commercial endeavor with the
			 borrower. This means any person or entity named as a borrower or debtor in a
			 loan or extension of credit, or any other person or entity, such as a drawer,
			 endorser, or guarantor, engaged in a common enterprise with the borrower, or
			 deriving a direct benefit from the loan to the borrower.
(2) "Commercial loan" means:
(a) Any loan, line of credit, or letter of
			 credit, and any interest a credit union obtains in such loans made by another
			 lender, to individuals, sole proprietorships, partnerships, corporations, or
			 other business enterprises for commercial, industrial, agricultural, or
			 professional purposes, but not for personal expenditure purposes.
(b) Excluded from this definition are loans
			 made by a corporate credit union; loans made by a federally insured credit
			 union to another federally insured credit union; loans made by a credit union
			 to a credit union service organization; loans fully secured by shares,
			 including deposits, in the credit union making the extension of credit or in
			 other financial institutions; loans secured by a one-to-four (1-4) family
			 residential property (whether or not it is the borrower's primary residence);
			 loans secured by a vehicle manufactured for household use that will be used for
			 a commercial, corporate, other business investment property or venture, or
			 agricultural purpose (unless a fleet of six or more vehicles); and loans that
			 would otherwise meet the definition of commercial loan and which, when the
			 aggregate outstanding balances and unfunded commitments to a borrower or an
			 associated borrower, less any loans fully secured by shares, including
			 deposits, are equal to less than $50,000. The definition of "commercial loan"
			 also excludes covered loans issued under the Small Business Administration's
			 Paycheck Protection Program.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0305

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  723.102 &
				  723.156
Stats. Implemented: ORS
				  723.156 &
				  723.502
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0310 - Board of Directors and Management Responsibilities

Current through Register Vol. 63, No. 7, July 1, 2024
Prior to engaging in commercial lending, a credit union must
				address the following board responsibilities and operational requirements:
(1) Board of directors. A credit
			 union's board of directors, at a minimum, must:
(a) Approve a commercial loan policy that
			 complies with OAR 441-720-0315. The board must review its policy on an annual
			 basis, prior to any material change in the credit union's commercial lending
			 program or related organizational structure, and in response to any material
			 change in portfolio performance or economic conditions, and update it when
			 warranted.
(b) Ensure the credit
			 union appropriately staffs its commercial lending program in compliance with
			 paragraph (2)(b) of this section.
(c) Understand and remain informed, through
			 periodic briefings from responsible staff and other methods, about the nature
			 and level of risk in the credit union's commercial loan portfolio, including
			 its potential impact on the credit union's earnings and net worth.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0315 - Commercial Loan Policies and Procedures

Current through Register Vol. 63, No. 7, July 1, 2024
Prior to engaging in commercial lending, a credit union board
				must approve policies, and management must prepare procedures, for the types of
				loans the credit union is originating (or plans to originate). At a minimum,
				the policies and procedures should address the following:
(1) Types of loans to be made;
(2) Identification of trade area to be
			 served;
(3) The maximum amount of
			 net worth that will be invested in commercial loans;
(4) The maximum amount of net worth that will
			 be invested in a given category or type of commercial loan;
(5) The maximum amount of net worth that will
			 be loaned to any one member (including those loans that the member guarantees)
			 and group of associated borrowers, subject to OAR 441-720-0330;
(6) Qualifications and experience
			 requirements for personnel involved in underwriting, processing, approving,
			 administering, and collecting commercial loans;
(7) Initial and ongoing analysis and
			 documentation of the ability of the borrower to repay the loan;
(8) Periodic receipt and analysis of the
			 financial statements and other documents, including tax returns, of the
			 borrower(s) and guarantor(s);
(9)
			 Considerations governing the quality and complexity of the financial
			 statements;
(10) Documentation
			 sufficient to support each request for an extension of credit, or an increase
			 in an existing loan or line of credit, except where the credit union finds that
			 the required documentation is generally not available for a particular type of
			 loan and states the reasons for those findings in the credit union's written
			 policies. The documentation is expected to include the following:
(a) Understanding and history of the
			 borrower(s) and guarantor(s) and the business operation and
			 ownership;
(b) Balance sheet,
			 income statement, and tax returns;
(c) Analysis of financial statements, cash
			 flow, and leverage position; debt service coverage ratio guidelines including,
			 but not limited to, the lessees of non-owner occupied property; and the global
			 financial ability to repay;
(d)
			 Comparison with industry average or similar analysis;
(e) Explanation of the related debt with the
			 credit union;
(f) A detailed
			 explanation of the complexity of the loan purpose, repayment, collateral, loan
			 structure, conditions, capacity, relationship, strengths and weaknesses, and
			 associated risks; and
(g) Borrower
			 documentation such as loan agreement and covenants, note, security agreement,
			 borrowing authority, and commitment letter.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0320 - Collateral and Security Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0325 - Recordkeeping Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0330 - Aggregate Lending Limit to a Member and Associated Borrowers

Current through Register Vol. 63, No. 7, July 1, 2024
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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0335 - Calculation of the Aggregate 15% Lending Limit

Current through Register Vol. 63, No. 7, July 1, 2024
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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0340 - Aggregate (Net) Member Business Loan Limit

Current through Register Vol. 63, No. 7, July 1, 2024
(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).
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0345 - Exceptions to the Aggregate (Net) Member Business Loan Limit

Current through Register Vol. 63, No. 7, July 1, 2024
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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0350

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  723.102 &
				  723.156
Stats. Implemented: ORS
				  723.156 &
				  723.502
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0360 - Commercial Loan Risk Classifications

Current through Register Vol. 63, No. 7, July 1, 2024
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
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0365

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  723.102 &
				  723.156
Stats. Implemented: ORS
				  723.156 &
				  723.502
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0370 - Prohibited Commercial Loans

Current through Register Vol. 63, No. 7, July 1, 2024
(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.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0375

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  723.102 &
				  723.156
Stats. Implemented: ORS
				  723.156 &
				  723.502
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0380

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  723.102 &
				  723.156
Stats. Implemented: ORS
				  723.156 &
				  723.502
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0000 - Statutory Authority; Purpose

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 OAR 441-730-0000  to 441-730-0320  is adopted pursuant to the rulemaking
			 authority granted the director by ORS
			 725.320, and
			 725.505.
(2) The rules are considered necessary to
			 assure the proper conduct of the business regulated, to enforce the Consumer
			 Finance Act and to protect the public.
Stat. Auth.: ORS
				  725.320,
				  725.505
Stats. Implemented: ORS
				  725
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0015 - Licensee Lending Characteristics and Practices

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A licensee, making loans under that
			 license, must make a determination of the creditworthiness of a borrower based
			 on the information about the borrower's financial condition, such as his or her
			 income, assets, debts, and financial obligations, and the nature and value of
			 any collateral used to secure the loan for the majority of loans made under a
			 consumer finance license.
(2) A
			 licensee must ensure that the majority of secured or unsecured loans made under
			 a license have:
(a) Periodic
			 payments;
(b) Terms longer than 60
			 days;
(c) Loan underwriting;
			 and
(d) Full
			 amortization.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0025 - License Applications

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For
			 purposes of the investigation described in ORS
			 725.140(1), an
			 applicant for a license must submit the application form prescribed by the
			 director, signed by an authorized owner or officer of the applicant.
(2)
(a) An
			 applicant, including a person that currently has a license, must provide the
			 employment history for the proposed manager of the licensed office for the five
			 years immediately preceding the date of the application. A licensee employing a
			 new manager may be required to submit a resume to meet the requirements of this
			 section.
(b) The employment history
			 for a license applicant's proposed manager must demonstrate verifiable recent
			 experience in traditional lending, including but not limited to, experience
			 obtained in banking, consumer finance, or mortgage lending. For purposes of
			 this rule, "recent" means no less than three years out of the five years
			 immediately preceding the date of application. Short-term lending experience
			 alone is not a sufficient substitute for the required experience.
(c) At the request of the applicant and in
			 the sole discretion of the director, education, extensive training, or other
			 business experience may be substituted for the three out of five years of
			 traditional lending experience. Factors that the director may consider include
			 relevance of the education, or the number, complexity and types of transactions
			 handled in the substituted business experience. Short-term lending experience
			 alone is not a sufficient substitute for the required experience.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0027 - State Criminal Records Check

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A consumer finance company that makes or
			 offers to make residential mortgage loans must conduct a state criminal records
			 check of an employee prior to the person originating residential mortgage
			 loans.
(a) The consumer finance company must
			 search state records of all states where the individual has resided in the past
			 10 years using the person's full legal name, date of birth, place of birth, and
			 Social Security number.
(b) The
			 consumer finance company must use the services of law enforcement agencies or
			 an independent private company that complies with the federal Fair Credit
			 Reporting Act to conduct the state criminal records check.
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0030 - Fees, Charges Licensees Pay the Director

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The license fee for license applicants or
			 licensees is:
(a) $600 for an initial
			 application for each location to be licensed; and
(b) $600 for renewal for each licensed
			 location, due and payable on January 1 of each calendar year;
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0050 - Notes and Agreements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) All
			 forms of notes and agreements pertaining to loans and security for loans used
			 by a licensee must be so worded that they comply with all provisions of ORS
			 Chapter 725 and these rules.
(2)
			 Any forms or agreements required or authorized by federal statute or
			 regulations and in compliance with those statutes or regulations are considered
			 in compliance with and authorized by ORS Chapter 725.
Stat. Auth.: ORS
				  725.505
Stats. Implemented: ORS
				  725.120 &
				  725.320
Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 730 - CONSUMER FINANCE › Section 441-730-0060 - Loans Not to Be Payable on Demand; Exception

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Except as provided by section (2) of this
			 rule, a loan shall not be made payable on demand.
(2) A loan may provide that, if there is a
			 default under the note or collateral security agreement, the loan may become
			 due and payable immediately or on demand.
Stat. Auth.: ORS 725
Stats. Implemented: ORS
				  725.050