Oregon Statutes 708A.335 – Obligations secured by documents covering readily marketable staples
(1) In addition to obligations permitted under ORS § 708A.295, an Oregon commercial bank may make loans and acquire other obligations of a person secured by documents of title covering readily marketable staples, provided the obligation does not exceed:
Terms Used In Oregon Statutes 708A.335
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
(a) 15 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 85 percent of the market value of the staples.
(b) 20 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 80 percent of the market value of the staples.
(c) 25 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 75 percent of the market value of the staples.
(d) 35 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 70 percent of the market value of the staples.
(e) 40 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 65 percent of the market value of the staples.
(2) If it is customary to insure the staples mentioned in subsection (1) of this section, the staples shall be fully covered by insurance.
(3) This section does not apply to obligations of a person secured by the same staples for more than 10 months.
(4) Staples, for purposes of this section, in addition to being readily marketable, must be either:
(a) Nonperishable; or
(b) Perishable, but frozen, freeze-dried, irradiated or refrigerated for the purpose of protecting the staple against deterioration. [1997 c.631 § 152]