ORS 707.380 Limitation on dividends; exception

The board of directors of an institution or Oregon stock savings bank may, at any regular meeting, declare a dividend, but, except as provided in subsection (2) of this section, the amount of the dividend shall not be greater than its unreserved retained earnings, deducting therefrom, to the extent not already charged against earnings or reflected in a reserve, the following:

All bad debts, which are debts on which interest is past due and unpaid for at least six months, unless the debt is fully secured and in the process of collection.

All other assets charged off as required by the Director of the Department of Consumer and Business Services or a state or federal examiner.

All accrued expenses, interest and taxes of the institution or Oregon stock savings bank.

Notwithstanding subsection (1) of this section, an institution or Oregon stock savings bank may, by resolution of its board of directors and with the prior approval of the director, pay a dividend in an amount greater than the amount provided in subsection (1) of this section. The director may approve payment of such a dividend only if the director determines that the payment of the dividend would not result in the remaining stockholders’ equity of the institution or Oregon stock savings bank being inadequate for the safe and sound operation of the institution or Oregon stock savings bank.