Dentel v. Fidelity Savings and Loan Association

The issue is whether the directors of a state authorized savings and loan association can eliminate the voting rights of depositors and borrowers, granted by the association’s- bylaws, by amending the bylaws.

ORS 722.310(2) provides that members of savings and loan associations shall be stockholders “and such others as the bylaws may prescribe. Memberships may be issued to borrowers of and investors in the association with such rights and liabilities as may be allowed by the bylaws.”

The bylaws of the defendant association provided that savings account holders and borrowers would be members.…