Chapter 715 — Bank Holding Companies; Financial Holding Companies

 

2013 EDITION

 

 

BANK AND FINANCIAL HOLDING COMPANIES

 

FINANCIAL INSTITUTIONS

 

715.012     Application to become financial holding company or bank holding company of Oregon stock bank; filing with Federal Reserve Board and director

 

715.017     Out-of-state financial holding companies; out-of-state bank holding companies

 

715.019     Mutual financial holding companies; mutual bank holding companies; authority; rules

 

715.045     Examination of certain financial holding companies or bank holding companies; payment of costs of examination

 

715.055     Submission of reports filed with Federal Reserve Board; additional information; rules; penalty for failure to submit

 

715.075     Authority of financial holding company or bank holding company to acquire corporation licensed as insurance producer; rules

 

715.090     Authority of financial holding company or bank holding company to share information concerning customers with controlled company

 

715.010 [Amended by 1973 c.797 §336; 1977 c.135 §27; 1979 c.88 §15; 1983 c.296 §9; 1985 c.12 §8; 1989 c.12 §1; 1989 c.447 §1; repealed by 1997 c.631 §567]

 

      715.012 Application to become financial holding company or bank holding company of Oregon stock bank; filing with Federal Reserve Board and director. (1) If a company proposes to become a financial holding company or a bank holding company of an Oregon stock bank, when the company files its application and any related materials with the Federal Reserve Board, the company shall submit to the Director of the Department of Consumer and Business Services copies of the application and related materials.

      (2) The director may submit comments and recommendations for approval or disapproval to the Federal Reserve Board concerning any application to become a financial holding company or a bank holding company of an Oregon stock bank that is filed with the Federal Reserve Board.

      (3) Following the filing of an application to become a financial holding company or a bank holding company and the submission to the director of the materials described in subsection (1) of this section, the company shall submit to the director copies of any written communications between itself and the Federal Reserve Board that relate to the application, including copies of any written approval or denial of the application. A copy of each such written communication shall be submitted to the director within 10 days after the original thereof is sent or received by the company. [1997 c.631 §329; 2001 c.377 §30]

 

      715.015 [1973 c.797 §337; 1975 c.544 §41; 1977 c.135 §28; 1979 c.88 §16; 1985 c.12 §9; 1985 c.786 §44; repealed by 1997 c.631 §567]

 

      715.017 Out-of-state financial holding companies; out-of-state bank holding companies. An out-of-state financial holding company or an out-of-state bank holding company may become the financial holding company or the bank holding company of:

      (1) An Oregon stock bank or an in-state federal stock bank, by itself or together with any predecessor, only if the Oregon stock bank or in-state federal stock bank has been engaged in the business of banking in this state for a period of not less than three years prior to the date on which the out-of-state financial holding company or the out-of-state bank holding company becomes the financial holding company or the bank holding company of the Oregon stock bank or in-state federal stock bank.

      (2) An Oregon stock bank organized under ORS 707.025 that has merged with or acquired all or substantially all of the assets and liabilities of an Oregon stock bank or in-state federal stock bank, by itself or together with any predecessor, only if the Oregon stock bank or in-state federal stock bank has been engaged in the business of banking in this state for a period of not less than three years prior to the date on which the out-of-state financial holding company or the out-of-state bank holding company becomes the financial holding company or the bank holding company of the Oregon stock bank. [1997 c.631 §330; 2001 c.377 §31]

 

      715.019 Mutual financial holding companies; mutual bank holding companies; authority; rules. (1) An Oregon nonstock bank may, pursuant to rules adopted by the Director of the Department of Consumer and Business Services, reorganize so that the resulting entities are an Oregon stock savings bank, controlled by a mutual financial holding company or a mutual bank holding company. For purposes of this section, a “mutual financial holding company or a mutual bank holding company” is a financial holding company or a bank holding company that does not issue capital stock. The mutual financial holding company shall be mutually owned by the depositors of the reorganizing Oregon nonstock bank and shareholders of other companies under the control of the mutual financial holding company. The mutual bank holding company shall be mutually owned by the depositors of the reorganizing Oregon nonstock bank.

      (2) A mutual bank holding company may acquire or invest in the stock of one or more stock savings banks.

      (3) A mutual bank holding company may merge with or acquire another mutual bank holding company.

      (4) A mutual bank holding company formed under this section shall be subject to the provisions of this chapter.

      (5) The director is authorized to adopt rules to carry out the provisions of this section. [1997 c.631 §330a; 2001 c.377 §32]

 

      715.020 [Repealed by 1973 c.797 §428]

 

      715.025 [1973 c.797 §338; 1985 c.12 §10; repealed by 1997 c.631 §567]

 

      715.030 [Repealed by 1973 c.797 §428]

 

      715.035 [1973 c.797 §339; 1977 c.135 §29; 1983 c.37 §24; 1985 c.786 §45; repealed by 1997 c.631 §567]

 

      715.040 [Repealed by 1973 c.797 §428]

 

      715.045 Examination of certain financial holding companies or bank holding companies; payment of costs of examination. (1) The Director of the Department of Consumer and Business Services may examine the books, accounts, records and files of a financial holding company or a bank holding company of an Oregon stock bank when the director considers it necessary to evaluate the condition of the Oregon stock bank that is a subsidiary of the financial holding company or the bank holding company.

      (2) The financial holding company or the bank holding company examined shall pay to the director the actual cost of the examination, as determined by the director. [1973 c.797 §340; 1997 c.631 §326; 2001 c.377 §33]

 

      715.050 [Repealed by 1973 c.797 §428]

 

      715.055 Submission of reports filed with Federal Reserve Board; additional information; rules; penalty for failure to submit. (1) A financial holding company or a bank holding company of an Oregon stock bank shall submit to the Director of the Department of Consumer and Business Services, in a form and format specified by the director, a copy of specified reports that the financial holding company or the bank holding company is required to submit to the Federal Reserve Board. The financial holding company or bank holding company shall submit the copies to the director within the time periods required by applicable federal law and regulation for filing the originals with the Federal Reserve Board.

      (2) The director may call for additional information from a financial holding company or a bank holding company, in a form and format that the director may prescribe by rule or order, if the director considers the additional information necessary in order to obtain full knowledge of the condition of the Oregon stock bank that the financial holding company or the bank holding company controls. The financial holding company or the bank holding company shall submit the additional information to the director within the time period prescribed by the director.

      (3) If a financial holding company or a bank holding company fails to submit a report or additional information as required by this section, the financial holding company or the bank holding company shall pay to the director a penalty of up to $1,000 for each day the financial holding company or bank holding company fails to comply. If the financial holding company or the bank holding company delays or refuses to pay the penalty upon demand by the director, the director may maintain an action in the director’s name against the delinquent financial holding company or bank holding company for the recovery of the penalty. [1973 c.797 §341; 1997 c.631 §327; 2001 c.377 §34; 2009 c.541 §36]

 

      715.065 [1985 c.12 §12; 1987 c.371 §3; 1995 c.6 §4; repealed by 1997 c.631 §567]

 

      715.070 [1985 c.12 §13; 1987 c.371 §4; repealed by 1997 c.631 §567]

 

      715.075 Authority of financial holding company or bank holding company to acquire corporation licensed as insurance producer; rules. A financial holding company or a bank holding company may acquire and hold all or part of the stock of a corporation that is or may thereafter be licensed as an insurance producer as required by ORS 744.053 to transact one or more of the classes of insurance described in ORS 744.062, subject to the following requirements:

      (1) The acquisition and holding of such stock shall be subject to the approval of the Director of the Department of Consumer and Business Services. The director shall base consideration for approval on the condition of the financial holding company or the bank holding company, the adequacy of a formal business plan for the insurance activities and the existence of satisfactory management for the corporation.

      (2) The director may revoke or restrict the ongoing authority of the financial holding company or the bank holding company to hold stock in the corporation if the condition of the financial holding company or the bank holding company or of any bank owned by it substantially deteriorates or if the insurance activities are adversely affecting the financial holding company or the bank holding company or any bank owned by it.

      (3) For each calendar year during which a financial holding company or a bank holding company owns all or part of any corporation licensed as an insurance producer as required by ORS 744.053, the financial holding company or the bank holding company shall file a written report with the director. The report shall be filed no later than March 31 of the following year and shall disclose the insurance activities of the corporation. The required contents of the report shall be established by the director by rule. The reports filed with the director under this subsection shall be available for public inspection in the office of the director.

      (4) The corporation shall not in any manner use customer information obtained by the institution from another insurance producer to promote, develop or solicit insurance business for the corporation unless the other insurance producer consents to such use of the customer information.

      (5) The corporation shall be subject to the limitations applicable to depository institutions under ORS 746.213 to 746.219. For the purpose of this subsection, “depository institution” has the meaning given that term in ORS 746.213. [1987 c.916 §4; 1989 c.331 §30; 1989 c.701 §66; 1997 c.831 §3; 2001 c.191 §54; 2001 c.377 §35; 2003 c.363 §9; 2003 c.364 §60a; 2005 c.194 §2]

 

      715.090 Authority of financial holding company or bank holding company to share information concerning customers with controlled company. (1) A financial holding company or bank holding company may share financial and credit information concerning its customers with any company of which it directly or indirectly controls 50 percent or more of the voting shares. Any company so controlled by a financial holding company or bank holding company may share information concerning its customers with the financial holding company or bank holding company and with any other company so controlled by the same financial holding company or bank holding company. This section shall not be construed as otherwise permitting or limiting the sharing or disclosure of information.

      (2) For purposes of this section, “customers” includes but is not limited to depositors, borrowers, credit card holders, lessees, purchasers under contracts and applicants for credit. [1985 c.357 §2; 2001 c.377 §36]

 

      715.100 [1985 c.12 §17; repealed by 1987 c.371 §5]

 

      715.910 [1975 c.544 §43; repealed by 1997 c.631 §567]

 

      715.990 [Amended by 1973 c.797 §342; repealed by 1975 c.544 §62]

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