# ORS § 708a.125: 708A.125 Stock in corporations acquired to strengthen capital or eliminate undesirable assets

> Oregon · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.125

## Section

- **Citation:** ORS § 708a.125
- **Heading:** 708A.125 Stock in corporations acquired to strengthen capital or eliminate undesirable assets
- **Jurisdiction:** Oregon
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** OR Code / Title 53 / Chapter 708a / Section 708a.125

## Text

(1) An institution may carry fully paid and nonassessable capital stock of or membership interest in any other corporation or limited liability company as an asset, if:

(a) The institution’s board of directors applies in writing to the Director of the Department of Consumer and Business Services;

(b) The director approves the application in writing;

(c) The institution obeys any limitations the director specifies in the director’s approval; and

(d) The institution acquires the stock or membership interest for the purpose of strengthening the institution’s capital structure or eliminating undesirable assets.

(2) The institution may hold the stock or membership interest as long as the director may determine, but in no event longer than 15 years.

(3) This section does not apply to any stock or membership interest that an institution may acquire in connection with insuring deposits, under ORS 708A.120 (Investment in stock of other entity) , or in a purchase as a part of any transaction in which an institution borrows from the United States or an agency of the United States. This section does not repeal or in any way limit or modify ORS 711.470 (Subrogation rights of Federal Deposit Insurance Corporation) . [1997 c.631 §120; 2015 c.244 §35]

Source: Section 708A.125 — Stock in corporations acquired to strengthen capital or eliminate undesirable assets , https://www.­oregonlegislature.­gov/bills_laws/ors/ors708A.­html (accessed May 26, 2025).

## Nearby sections

- [ORS § 708a.005 708A.005 Powers of institutions](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.005.md)
- [ORS § 708a.010 708A.010 Investments and activities of Oregon commercial banks](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.010.md)
- [ORS § 708a.115 708A.115 Investment in government obligations](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.115.md)
- [ORS § 708a.120 708A.120 Investment in stock of other entity](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.120.md)
- [ORS § 708a.125 708A.125 Stock in corporations acquired to strengthen capital or eliminate undesirable assets](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.125.md)
- [ORS § 708a.130 708A.130 Definition for ORS 708A.135 to 708A.145](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.130.md)
- [ORS § 708a.135 708A.135 Investment in bank service corporation](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.135.md)
- [ORS § 708a.140 708A.140 Discrimination by bank service corporation prohibited against nonstockholding depository institution](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.140.md)
- [ORS § 708a.145 708A.145 Authorized services of bank service corporations](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.145.md)
- [ORS § 708a.150 708A.150 Community development corporations](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.150.md)
- [ORS § 708a.155 708A.155 Investment in foreign banks](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.155.md)
- [ORS § 708a.160 708A.160 Corporation or limited liability company created to establish ATMs](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.160.md)
- [ORS § 708a.165 708A.165 Membership in Federal Reserve System](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.165.md)
- [ORS § 708a.170 708A.170 Securities powers](https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.170.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_OR_T53_C708a_S708a.125. Check the current official text before relying on it. Not legal advice.