Oregon Statutes 708A.300 – Obligations secured by readily marketable collateral
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In addition to obligations permitted under ORS § 708A.295, an Oregon commercial bank may make loans to or acquire other obligations of a person, not to exceed 10 percent of its capital, if:
Terms Used In Oregon Statutes 708A.300
- 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
(1) The loans or obligations are fully secured by readily marketable collateral having a market value that may be determined by reliable and continuously available price quotations;
(2) The market value is at least 15 percent greater than the amount of the obligation at the time it is incurred; and
(3) The market value is at all times while the obligation is outstanding at least 100 percent of the balance of principal, interest and other charges applicable to the obligation. [1997 c.631 § 145]