Oregon Bulletin
January 1, 2011
Rule
Caption: Clarification of When Five Percent
Charge-Off Occurs Under ORS 708.590(2).
Adm.
Order No.: FCS 11-2010
Filed with Sec. of
State: 11-29-2010
Certified to be
Effective: 12-1-10
Notice Publication
Date: 9-1-2010
Rules Adopted: 441-505-1135
Subject: The proposed rule clarifies when the first and
subsequent minimum five percent charge-offs under ORS 708A.590(2) must occur.
Under ORS 708A.590(2), the bank must reduce the book value of real property
acquired under ORS 708A.175(3) or (4) by five percent of its original book
value annually beginning in the year title is vested and continuing until the
earlier of when the bank disposes of the real estate, or the expiration of 15
years unless the DCBS director extends the 15-year time period, ORS 708A.195(2)
states that title is deemed “vested” on “the date the institution is first
entitled to receive a deed to the real estate.”
Rules Coordinator: Shelley Greiner—(503) 947-7484
441-505-1135
Charging Off Real Estate Assets
Effective December 1, 2010, an institution that owns or
holds real estate pursuant to ORS 708A.175(3) or (4) shall reduce the real
estate’s book value pursuant to ORS 708.590(2) by not less than five percent of
its original book value within 12 months from the date title to the real estate
is vested and by not less than an additional five percent of the original book
value during every 12-month period thereafter. ORS 708.195(2) states that title
is deemed vested on “the date the institution is first entitled to receive a
deed to the real estate.”
Stat. Auth.: ORS 706.790
Stats. Implemented: ORS
708A.590(2); 708A.175(3), (4); 708.195(2)
Hist.: FCS 11-2010, f. 11-29-10,
cert. ef. 12-1-10
Rule
Caption: Adopting Rules for Community
Charter Applications to Serve Former Group.
Adm.
Order No.: FCS 12-2010
Filed with Sec. of
State: 11-29-2010
Certified to be
Effective: 12-1-10
Notice Publication
Date: 9-1-2010
Rules Adopted: 441-710-0071
Rules Amended: 441-710-0035
Subject: The proposed rules allow a credit union that converts
to a community charter to offer credit union services to individuals located
outside the credit union’s community boundaries even if these individuals were
not credit union members of record at the time of the conversion and did not
live or work within the community boundaries
Rules Coordinator: Shelley Greiner—(503) 947-7484
441-710-0035
Community Charter Applications
A credit union applying for a community charter must
complete an application to include at least the following information:
(1) Written authorization for the application signed by
the Board of Directors.
(2) Bylaws or amendment to bylaws showing current and
revised field of membership.
(3) Identification of the area the credit union wishes
to serve and the total population of the proposed community. Quote source for
the population figures.
(4) If the area to be served consists of more than one
precinct, district, city, county, or other defined boundaries, a detailed
description of how the persons in the area interact or share interests.
(5) Map of proposed well-defined local community,
neighborhood or rural district.
(6) Most recent monthly financial statement, including
income and expense statement; and
(7) Business plan showing how credit union will provide
service to proposed community, pro forma financial statements for the first
three years of operation including assumptions used, and facility locations.
The plan should include information on services and products offered by the
institution.
(8) If the credit union applying for a community
charter wishes to continue credit union services to a former group or former
groups in accordance with ORS 723.172, the credit union must comply with the
application requirements set forth in OAR 441-710-0071.
Stat. Auth.: ORS 723.102
Stats Implemented: ORS 723.172(2)
& 723.172(5)
Hist.: FCS 6-2000; f. & cert.
ef. 3-31-00; FCS 12-2010, f. 11-29-10, cert. ef. 12-1-10
441-710-0071
Application to Serve Former
Occupational Groups and Associational Members
(1) In accordance with ORS 723.172, all community
credit unions that wish to continue credit union services to an occupational or
associational group or groups shall file an application to serve the these
groups on a form provided by the director. The application form shall require
the community credit union to supply the following information:
(a) The credit union’s name; the date of conversion;
and the communities it serves.
(b) The names of the former occupational or
associational group or groups that the credit union wishes to serve and
information showing that the occupational or associational group or groups have
offices within the credit union’s community boundaries.
(c) Information showing that the occupational or
associational group or groups were within the credit union’s field of
membership before it converted to a community charter and the date when the by-laws
were amended to include the occupational or associational group or groups in
the credit union’s field of membership.
(d) Information showing the number of individuals
within the occupational group or groups or association or associations that do
not live or work within the credit union’s geographic boundaries, and the basis
for credit union membership such as whether the individuals are directors,
officers, employees, members, partners, personal representatives, trustees or
volunteers of the corporation, limited liability company, partnership or
association, trust, estate or other entity.
(e) Information showing that the credit union has the
ability to serve the new credit union members who do not live or work within
the community boundaries without sacrificing safety and soundness requirements
including addressing the implications of how increased credit union membership,
deposits, and responsibilities may effect the credit union’s capital or net
worth ratio.
Stat. Auth.: ORS 723.172
Stats. Implemented: 2009 SB 438 §3
Hist.: FCS 12-2010, f. 11-29-10,
cert. ef. 12-1-10
Notes
1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2010.
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