Surety bond or letter of credit conditions
- • designation of escrow agent
(1) Any corporate surety bond or letter of credit filed with the Director of the Department of Consumer and Business Services as provided by ORS 722.032 (Function of initial board) shall be executed to the State of Oregon and shall be in a form and amount, not less than $100,000, approved by the director. The bond or letter of credit shall assure the safekeeping of the funds subscribed and collected and their delivery, plus earnings, to the association after the association has met all conditions and requirements of organization and doing business in this state, and has commenced public operation. In case the certificate of authority is not issued, or is revoked pursuant to ORS 722.052 (Revocation of certificate of authority) (2), the bond or letter of credit shall assure the return, to the respective subscribers or their assigns, of the amounts collected, plus earnings, less organizational expenses incurred and within the amount authorized. ORS 742.358 (Release of surety on official bonds by action of obligee) applies to cancellation of such a bond or letter of credit. Any letter of credit filed with the director under this section shall be an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008 (Additional definitions for Bank Act).
(2) Actual organizational expenses of the kind described by ORS 57.116 (1985 Replacement Part) may be paid as incurred from the funds collected under ORS 722.042 (Minimum capital or expense fund and pledged savings accounts). However, such payments in the aggregate shall not exceed an amount authorized by the director as reasonable for organizational expenses.
(3) The initial board of directors of an association shall, subject to the approval of the director, designate an escrow agent for the safekeeping and delivery of funds in accordance with this section. [1975 c.582 §42; 1981 c.472 §3; 1987 c.197 §13; 1991 c.331 §122; 1997 c.631 §530]
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information