Oregon § 723.122 Bond or letter of credit; rules

Oregon Statutes

§ 723.122 — Bond or letter of credit; rules

Oregon § 723.122

Vol.18

Title 54Credit Unions, Lending Institutions and Pawnbrokers

Ch. 723Credit Unions

This text of Oregon § 723.122 (Bond or letter of credit; rules) is published on Counsel Stack Legal Research, covering Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Or. Rev. Stat. § 723.122 (2026).

Text

(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: ______________________________________________________________________________ Total Assets Minimum Amount of Bond o

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(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:
______________________________________________________________________________
Total Assets Minimum Amount
of Bond
or Letter of Credit
$0 to $4,000,000 $250,000 or
coverage equal
to the credit
union’s total
assets, whichever
is less.
$4,000,001 to $50,000,000 $100,000 plus
$50,000 for each
$1,000,000 of total
assets or fraction
of total assets
over $1,000,000.
$50,000,001 to $500,000,000 $2,550,000 plus
$10,000 for each
$1,000,000 of total
assets or fraction
of total assets
over
$50,000,000,
with a maximum
of $5,000,000.
More than $500,000,000 1% of the credit
union’s total
assets rounded
to the nearest
$100,000,000,
with a maximum
of $9,000,000.
______________________________________________________________________________
(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.

Legislative History

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