Oregon Statutes 708A.350 – Obligations secured by government bonds
In addition to obligations permitted under ORS § 708A.295, an Oregon commercial bank may make loans to and accept other obligations of a person, not to exceed 20 percent of the Oregon commercial bank’s capital, if:
Terms Used In Oregon Statutes 708A.350
- City: includes any incorporated village or town. See Oregon Statutes 174.100
- 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
- public body: means state government bodies, local government bodies and special government bodies. See Oregon Statutes 174.109
- United States: includes territories, outlying possessions and the District of Columbia. See Oregon Statutes 174.100
(1) The obligation is secured by bonds of any state of the United States or bonds of any county, city, school district, port district or other public body in the United States;
(2) The principal amount of the obligation is not more than 90 percent of the market value of the bonds that secure the obligation;
(3) The bonds are payable from ad valorem taxes; and
(4) The bonds are rated in one of the four highest grades by a recognized investment service organization that has been engaged regularly and continuously for a period of not less than 10 years in rating state and municipal bonds. [1997 c.631 § 155]