An institution is insolvent if any of the following occurs:

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Terms Used In Oregon Statutes 711.405

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.

(1) The fair market value of the institution’s assets is insufficient to pay the institution’s liabilities, excluding any liability on account of capital debentures.

(2) An Oregon stock bank fails to make good the Oregon stock bank’s reserve requirements under applicable law for a period of 30 days.

(3) The institution cannot meet the institution’s obligations or demands upon the institution as the obligations or demands become due. [Amended by 1973 c.797 § 251; 1975 c.544 § 35; 1997 c.631 § 242; 2015 c.244 § 83]