Oregon Administrative Code

441-710-0240 Limitations on Ownership of Fixed Assets Under ORS 723.152(4), a credit union has the power to acquire, lease, hold and dispose of property necessary or incidental to its operations. A credit union’s ownership of fixed assets is limited as described by OAR 441-710-02…

441-710-0260 Investment in Fixed Assets (1) A credit union shall not, without the prior approval of the Director, invest in fixed assets if the aggregate of all such investments exceeds five percent of total assets. (2) A credit union shall submit such statements and reports as t…

441-710-0270 Investment in Premises (1) When real property is acquired for future expansion, at least partial utilization should be accomplished within a reasonable period, which shall not exceed three years unless otherwise approved in writing by the Director. (2) When a credit …

441-710-0305 Compensation of Boards of Directors and Supervisory Committee Members (1) For purposes of this rule, unless the context requires otherwise: (a) “Compensation” includes anything of value given in exchange for service as a member of the credit union’s board of director…

441-710-0325 Housing Agency Low Income Rental Housing Fund Client Trust Accounts (1) Every financial institution as defined in ORS 706.008, authorized by law to offer client trust accounts established pursuant to ORS 696.241 and to accept deposits to such accounts in Oregon may: …

441-710-0400 Loans to Officials (1) Any single loan to a person described in ORS 723.532(2) or the aggregate of all outstanding loans for which such person is directly or indirectly obligated to repay which exceeds $100,000 shall be approved by the Board of Directors. (2) If the …

441-710-0450 Mergers of Community Charters (1) A community charter credit union may not merge into an occupational or associational credit union unless: (a) The situation involves a well-defined local community, neighborhood or rural district that is underserved by other deposito…

441-710-0460 Notice to Members of Merger Plan (1) After approval of a plan of merger by the board of directors of two or more credit unions, the plan of merger, in summary form, must be presented to the members of the merging credit union(s) prior to the affirmative vote required…

441-710-0500 Fees and Charges Credit Unions Pay the Director (1) Effective February 1, 2023, the annual regulatory fee under ORS 723.114(1), which is due and payable on April 1 of each calendar year, by each credit union, with assets of: (a) Less than $10 million, is $170 plus .0…

441-710-0505 Late Charge Fees The following charges apply to late reports filed by the credit union with the director. The fine is for each day the report is late: (1) Quarterly call reports; $100; (2) Supervisory Committee Report, $10; (3) Examination report reply, $10; (4) Mont…

441-710-0510 Annual Audit; Qualified Persons to Perform; Content; Time for Filing, Reporting Action Taken (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 appr…

441-710-0515 Required “Additional Reports” Defined (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 repo…

441-710-0520 Reports and Filings When Credit Union Invests in CUSO (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 o…

441-710-0525 Duty to Report Changes in Accounting Systems, Methods or Procedures (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 permi…

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 regula…

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. 8-25-0…

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…

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 numbe…

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 7…

441-720-0110 Definitions 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.…

441-720-0120 Risk Weights and Risk Categories 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 an…

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 th…

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 ass…

441-720-0150 Required Reserve Transfers (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…

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 rul…

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…

441-720-0210 Adoption of Federal Regulations Concerning Purchase, Sale and Pledge of Eligible Obligations (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, fr…

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 i…

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 repur…

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) T…

441-720-0230 Adoption of Federal Statutes and Regulations Concerning Loan Participations (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’ w…

441-720-0300 Definitions (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 …

441-720-0310 Board of Directors and Management Responsibilities 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:…

441-720-0315 Commercial Loan Policies and Procedures 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 poli…

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 appropria…

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 …

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 …

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…

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 po…

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 …

441-720-0355 Construction and Development Lending In addition to the foregoing, the following requirements apply to a construction and development loan made by a credit union. (1) For the purposes of this section, a construction or development loan means any financing arrangement…

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) g…

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 lend…

441-730-0000 Statutory Authority; Purpose (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 enfor…

441-730-0010 Definitions (1) "Annual percentage rate” or “APR” means the annual percentage rate that every licensee is required by Regulation Z of the Federal Truth in Lending Act (Title I of the Consumer Credit Protection Act) to disclose to each of its credit customers. (2) "Bo…

441-730-0015 Licensee Lending Characteristics and Practices (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…

441-730-0025 License Applications (1) For purposes of ORS 725.120, an applicant for a license must submit an application attested to by an authorized owner or officer of the applicant through the Nationwide Mortgage Licensing System and Registry (NMLS). (2) Applicants and license…

441-730-0026 Corporate Surety Bond for Consumer Finance Licensees Employing a Mortgage Loan Originator (1) This rule applies to a consumer finance company licensed under ORS 725.010 to 725.270 and OAR chapter 441, division 730 that employs one or more mortgage loan originators. T…

441-730-0027 State Criminal Records Check (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…

441-730-0030 Fees, Charges Licensees Pay the Director (1) In addition to any fees required to register with and participate in NMLS, an applicant or licensee shall pay: (a) $600 for an initial application for each location to be licensed; and (b) $600 for renewal for each license…