Oregon Statutes 723.122 – Bond or letter of credit; rules
(1) A credit union shall obtain and maintain a fidelity bond or irrevocable letter of credit issued by an insured institution, as defined in ORS § 706.008, that includes coverage in accordance with rules of the Director of the Department of Consumer and Business Services, to protect the credit union against losses caused by occurrences such as fraud, dishonesty, forgery, embezzlement, misappropriation, misapplication of duty and all acts of agents, directors, officers, committee members, employees or attorneys of the credit union. The minimum amount of the bond or letter of credit is based on the amount of the credit union’s total assets in accordance with the following table:
Terms Used In Oregon Statutes 723.122
- Department: means the Department of Consumer and Business Services. See Oregon Statutes 723.001
- Director: means the Director of the Department of Consumer and Business Services. See Oregon Statutes 723.001
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
(2) A fidelity bond or letter of credit must include a faithful performance clause to cover the chief financial officer. The director must approve the fidelity bond or letter of credit and may require additional amounts as the director considers necessary.
(3) Claims upon a fidelity bond or letter of credit that exceed one percent of the credit union’s reserves and undivided earnings or that are related to the errors or omissions of an officer, director or committee member must be reported to the director. [1975 c.652 § 15; 1987 c.286 § 2; 1991 c.331 § 124; 1995 c.319 § 1; 1997 c.249 § 216; 1997 c.631 § 542; 1997 c.832 § 2; 1999 c.185 § 10; 2001 c.308 § 1; 2009 c.234 § 2; 2013 c.480 § 1]
[1971 c.681 § 4; repealed by 1975 c.652 § 88]