ORS 708A.335 Obligations secured by documents covering readily marketable staples

In addition to obligations permitted under ORS 708A.295, an Oregon commercial bank may make loans and acquire other obligations of a person secured by documents of title covering readily marketable staples, provided the obligation does not exceed:

15 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 85 percent of the market value of the staples.

20 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 80 percent of the market value of the staples.

25 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 75 percent of the market value of the staples.

35 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 70 percent of the market value of the staples.

40 percent of the Oregon commercial bank’s capital, where the principal amount of the obligation does not exceed 65 percent of the market value of the staples.

If it is customary to insure the staples mentioned in subsection (1) of this section, the staples shall be fully covered by insurance.

This section does not apply to obligations of a person secured by the same staples for more than 10 months.

Staples, for purposes of this section, in addition to being readily marketable, must be either:

Nonperishable; or

Perishable, but frozen, freeze-dried, irradiated or refrigerated for the purpose of protecting the staple against deterioration.