Oregon Administrative Rules › Chapter 441 - DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, FINANCE AND SECURITIES REGULATION › Division 720 - CREDIT UNIONS › Section 441-720-0150 - Required Reserve Transfers

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 The amount that the corporate central credit union is required to transfer or
			 set aside in corporate reserves is based on both the corporate central credit
			 union's primary and total capital ratios.
(2) Ranges of capital ratios have been
			 established as set forth in OAR 441-720-0130. These ratios shall be associated
			 with one of the six corresponding categories set forth in section (5) of this
			 rule in determining the required reserve transfer.
(3) To qualify for a lower reserve transfer
			 category, the capital ratios must fall in both the primary and total capital
			 ratio ranges of the applicable category.
(4) The corporate central credit union shall
			 set aside an amount equal to the appropriate required reserve transfer
			 percentage times the corporate central credit union's average daily assets for
			 the transfer period times the number of days in the transfer period divided by
			 365. Until January 1, 1994, transfers shall be based on the level of primary
			 capital only.
(5) For purposes of
			 determining the required reserve transfer, the following categories are
			 established:
(a) Category 1. Category 1
			 requires a corporate reserve transfer percentage of at least 25 basis points of
			 average daily assets when either the primary capital ratio is less than four
			 percent or the total capital ratio is less than eight percent. A corporate
			 reserve transfer percentage greater than 25 basis points of average daily
			 assets is required if needed to bring either or both of the capital ratios up
			 to the minimum acceptable level, or the corporate central credit union would
			 have to obtain approval from the Director to operate below the minimum capital
			 levels;
(b) Category 2. Category 2
			 requires a corporate reserve transfer percentage of 20 basis points of average
			 daily assets when either the primary capital ratio is greater than four percent
			 and less than six percent or the total capital ratio is greater than eight
			 percent and less than nine percent;
(c) Category 3. Category 3 requires a
			 corporate reserve transfer percentage of 15 basis points of average daily
			 assets when either the primary capital ratio is greater than six percent and
			 less than eight percent or the total capital ratio is greater than nine percent
			 and less than 12 percent;
(d)
			 Category 4. Category 4 requires a corporate reserve transfer percentage of ten
			 basis points of average daily assets when either the primary capital ratio is
			 greater than eight percent and less than 10 percent or the total capital ratio
			 is greater than 12 percent and less than 15 percent;
(e) Category 5. Category 5 requires a
			 corporate reserve transfer percentage of five basis points of average daily
			 assets when either the primary capital ratio is greater than ten percent and
			 less than 12 percent or the total capital ratio percentage is greater than 15
			 percent and less than 18 percent;
(f) Category 6. Category 6 requires a
			 corporate reserve transfer percentage of zero basis points when the primary
			 capital ratio is greater than 12 percent and the total capital ratio percentage
			 is greater than 18 percent.