ORS 722.044¹
Restrictions on use of capital surplus or expense fund
  • repayment of expense fund
  • nonwithdrawable savings accounts of new associations

(1) Until a new stock association is on a profitable operating basis as determined by the Director of the Department of Consumer and Business Services, capital surplus collected by the association under ORS 722.042 (Minimum capital or expense fund and pledged savings accounts) shall be restricted and may be used only for payment of the expenses and charges of organization, as described by ORS 57.116 (1985 Replacement Part), and for payment of any net operating losses of the association, as determined after transfers to general reserves for losses.

(2) Until a new mutual association is on a profitable operating basis as determined by the director, the expense fund collected by the association under ORS 722.042 (Minimum capital or expense fund and pledged savings accounts) shall be used only for payment of the expenses and charges of organization, similar to those described by ORS 57.116 (1985 Replacement Part), and for payment of any net operating losses of the association as determined after transfers to general reserves for losses. When the director determines that the association is on a profitable operating basis, contributions made to the expense fund may be repaid pro rata to the contributors, first from the balance, if any, remaining in the expense fund and then from earned surplus.

(3) In case of the liquidation of a mutual association before contributions to the expense fund have been repaid, any balance in the expense fund remaining unexpended after the payment of expenses of liquidation, all creditors and the withdrawal value of all savings accounts shall be repaid to the contributors pro rata.

(4) Amounts paid in on savings accounts pledged to a new mutual association pursuant to ORS 722.042 (Minimum capital or expense fund and pledged savings accounts) shall not be withdrawable until the director, pursuant to subsection (2) of this section, determines that the association is on a profitable operating basis. [1975 c.582 §46; 1987 c.197 §14]

1 Legislative Counsel Committee, CHAPTER 722—Savings Associations, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors722.­pdf (2007) (last ac­cessed Feb. 12, 2009).
 
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
 
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