(1) Except
as otherwise limited in the Bank Act or the articles of incorporation of
an institution, an institution shall have:
(a) Perpetual duration and succession in its corporate name, unless
a limited period of duration is stated in its articles of incorporation;
(b) The power to do all things necessary or convenient to carry out
its business and affairs including, without limitation, the power to:
(A) Sue and be sued and complain and defend in its corporate name;
(B) Have a corporate seal, which may be altered at will, and use it
or a facsimile thereof by impressing, affixing or reproducing it in any
other manner;
(C) Make contracts, incur liabilities, borrow money, issue its
notes, bonds and other obligations that may be convertible into other
securities of the institution or include the option to purchase other
securities of the institution;
(D) Conduct its business, locate offices and exercise the powers
granted by the Bank Act within or without this state;
(E) Elect or appoint directors, officers, employees and agents of
the institution;
(F) Make and amend bylaws not inconsistent with its articles of
incorporation or with the laws of this state for managing the business
and regulating the affairs of the institution;
(G) Make donations for the public welfare or for charitable,
scientific or educational purposes;
(H) Transact any business permitted by the Bank Act; and
(I) Pay pensions and establish pension plans, and share option
plans and benefit or incentive plans for any or all of its current or
former directors, officers, employees and agents;
(c) The powers granted to institutions by the Bank Act;
(d) The power to be licensed as an insurance producer as required
by ORS 744.053 to transact one or more of the classes of insurance
described in ORS 744.062 except for title insurance; and
(e) All powers necessary or convenient to effect any or all of the
purposes for which the institution is organized or to perform any or all
of the acts expressly or impliedly authorized or required under the Bank
Act.
(2) With respect to any exercise of the power granted under
subsection (1)(d) of this section, other than the licensing of the
institution to transact types of limited class insurance, as that term is
defined in ORS 744.052, designated by the Director of the Department of
Consumer and Business Services:
(a) The conduct by the institution of insurance producer activities
shall be subject to the approval of the director. The director shall base
consideration for approval on the condition of the institution, the
adequacy of a formal business plan for the insurance activities and the
existence of satisfactory management for the insurance activity.
(b) The director may revoke or restrict the ongoing authority of
the institution to engage in the insurance producer activity if the
condition of the institution substantially deteriorates or if the
insurance activities are adversely affecting the institution.
(c) The institution shall file a written report with the director
no later than March 31 of each year disclosing the insurance activities
of the institution. The required contents of the report shall be
established by the director by rule. Reports filed with the director
under this paragraph shall be available for public inspection in the
office of the director.
(3) An institution licensed as an insurance producer, as that term
is defined in ORS 731.104, shall not in any manner use customer
information obtained from another insurance producer to promote, develop
or solicit insurance business for the institution unless the other
insurance producer consents to such use of the customer information.
[1997 c.631 §116; 1997 c.831 §1a; 2001 c.191 §51; 2003 c.363 §6; 2003
c.364 §58a] (1)
Notwithstanding any provision of the Bank Act to the contrary, Oregon
commercial banks are authorized to:
(a) Engage as principal in those activities in which national banks
may engage as principal and acquire and retain those investments that
national banks may acquire and retain, subject to conditions and
restrictions that apply to national banks; and
(b) Engage as principal in those activities and acquire and retain
those investments that are permissible for state chartered banks under 12
C.F.R. 362.3(b) and 12 C.F.R. 362.4(c), subject to conditions and
restrictions provided in 12 U.S.C. 1831a, 12 C.F.R. 362, and other
applicable federal law.
(2) Notwithstanding any provision of the Bank Act to the contrary,
subsidiaries of Oregon commercial banks are authorized to:
(a) Engage as principal in those activities in which subsidiaries
of national banks may engage as principal and acquire and retain those
investments that subsidiaries of national banks may acquire and retain,
subject to conditions and restrictions that apply to subsidiaries of
national banks; and
(b) Engage as principal in those activities and acquire and retain
those investments that are permissible for subsidiaries of state
chartered bank subsidiaries under 12 C.F.R. 362.3(b) and 12 C.F.R.
362.4(c), subject to conditions and restrictions provided in 12 U.S.C.
1831a, 12 C.F.R. 362, and other applicable federal law.
(3) Activities and investments referred to in subsections (1) and
(2) of this section that require notice to or approval of the Comptroller
of the Currency shall not require such notice or approval but shall
require notice to or approval of the Director of the Department of
Consumer and Business Services. For purposes of this section, references
in federal statutes, regulations and other authorities that prescribe the
permissible activities and investments of national banks and subsidiaries
of national banks shall be deemed whenever practicable to refer to
comparable provisions of Oregon law. The director may approve an activity
or investment that requires director approval, subject to such conditions
as the director deems appropriate.
(4) The purpose of this section is to grant Oregon commercial banks
and their subsidiaries all investment and activity power and authority,
as principal, permitted state chartered banks under federal law. [1997
c.631 §117] (1) Institutions may
invest, without regard to any limitation based on stockholders’ equity,
in:
(a) Obligations of the United States, including those of its
agencies and instrumentalities;
(b) Obligations of public housing agencies issued pursuant to the
United States Housing Act of 1937, as amended; and
(c) Obligations of the State of Oregon or any county, city, school
district, port district or other public body with the power to levy taxes
issued pursuant to the Constitution or statutes of the State of Oregon or
the charter or ordinances of any county or city within the State of
Oregon, if the issuing body has not been in default with respect to the
payment of principal or interest on any of its obligations within five
years preceding the date of the investment.
(2) Subject to a limitation of 20 percent of stockholders’ equity,
institutions may invest in obligations of any other state of the United
States or obligations of any out-of-state county, city, school district,
port district or other public body in the United States payable from ad
valorem taxes, if the obligations are rated in one of the four highest
grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years
in rating state and municipal obligations.
(3) Obligations received in satisfaction of debts previously
contracted in good faith are not subject to the limitations of this
section, if the book value of such obligations in excess of the
limitations of this section is reduced to the amount allowed under this
section within six months after the date the obligations are acquired.
[1997 c.631 §118; 1999 c.59 §215] (1) An
institution shall not invest any of its assets in the capital stock of
any other corporation, except:
(a) In the capital stock of the Federal Reserve Bank.
(b) In stock acquired or purchased to save a loss on a preexisting
debt. The stock shall be sold within two years of the date acquired or
purchased. The Director of the Department of Consumer and Business
Services may extend the time if the director finds that an extension will
not be detrimental to the public interest and will not contravene any
other law.
(c) In the capital stock of any safe deposit company doing an
exclusive safe deposit business on premises owned or leased by the
institution upon 30 days’ advance notice to the director subject to the
same limitations applicable to a national bank.
(d) In the capital stock of agricultural and livestock finance
companies, subject to the same limitations applicable to national banks
and to the approval of the director.
(e) In the capital stock, eligible for purchase by national banks,
of small business investment companies, but the aggregate investment in
the stock shall not exceed two percent of the capital of the institution.
(f) In the common stock of any federally chartered corporation that
is chartered for the purpose of providing secondary markets for the sale
of mortgages by institutions.
(g) In the stock of the Federal Home Loan Bank.
(h) In the capital stock of a corporation exclusively engaged in a
trust business or a banker’s bank, subject to the same limitations
applicable to national banks.
(i) In the capital stock of bank service corporations as provided
in ORS 708A.130 to 708A.145.
(j) In the capital stock of a community development corporation as
provided in ORS 708A.150.
(k) If a trust company is not engaged in a banking business and if
the investment is first approved by the director, the trust company may
invest an amount not to exceed 20 percent of the capital of the trust
company:
(A) In the capital stock of a subsidiary investment company defined
in the Investment Company Act of 1940, as amended; or
(B) In a company one of the purposes of which is to act as a
federal covered investment adviser or a state investment adviser, as
defined in ORS 59.015, with all the powers customarily exercised by a
federal covered investment adviser or a state investment adviser.
(L) In adjustable rate preferred stock of the Student Loan
Marketing Association established in 20 U.S.C. 1087-2, but the aggregate
investment in the stock shall not exceed 15 percent of the capital of the
institution.
(m) In the capital stock of a company acquired for the purpose of
strengthening the institution’s capital structure or the elimination of
undesirable assets as provided in ORS 708A.125.
(n) In the capital stock of banks and corporations engaged in
international or foreign banking or foreign banking in a dependency or
insular possession of the United States, as provided in ORS 708A.155.
(o) In the capital stock of a corporation created to establish ATMs
as provided in ORS 708A.160.
(2) An institution may invest its assets in shares of any mutual
fund, the assets of which are invested solely in obligations of the type
described in and limited under ORS 708A.115.
(3) An institution may, subject to the approval of the director,
acquire or continue to hold the fully paid stock of a corporation, one of
the purposes of which is to assist the institution in handling real
estate, claims, judgments or other assets or in holding title to the
assets.
(4) An institution may acquire or continue to hold the fully paid
stock of a corporation the purpose of which is to permit the institution
to engage in any business in which a financial holding company, a bank
holding company or a nonbank subsidiary of a financial holding company or
a bank holding company is authorized to engage. This subsection does not
apply unless the institution is the owner of at least 80 percent of the
common stock of the subsidiary corporation, except qualifying shares of
directors.
(5) An institution may, subject to the approval of the director and
to rules promulgated by the director, acquire and continue to hold at
least 80 percent of the fully paid stock of a corporation engaged in any
business in which an institution is authorized to engage. Except as
otherwise permitted by statute or rule, the investment limitations
applicable to the institution apply to the subsidiary.
(6) An institution may, subject to the approval of the director and
under rules promulgated by the director, acquire and continue to hold all
the fully paid stock of a subsidiary corporation engaged in the business
of purchasing the stock of the institution for purposes of holding that
stock and making a market for that stock, if not more than 20 percent of
the net profit of the banking institution is disbursed to the subsidiary
in any one fiscal year. Except as otherwise permitted by statute or rule,
the investment limitations applicable to the institution apply to the
subsidiary. Acquisitions under this subsection shall not exceed 15
percent of the capital of the institution.
(7) An institution may acquire and hold all or part of the stock of
a corporation that is or may thereafter be licensed as an insurance
producer as required by ORS 744.053 to transact one or more of the
classes of insurance described in ORS 744.062, subject to the following
requirements:
(a) The acquisition and holding of such stock shall be subject to
the approval of the director. The director shall base consideration for
approval on the condition of the institution, the adequacy of a formal
business plan for the insurance activities, and the existence of
satisfactory management for the corporation.
(b) The director may revoke or restrict the ongoing authority of
the institution to hold stock in the corporation if the condition of the
institution substantially deteriorates or if the insurance activities are
adversely affecting the institution.
(c) For each calendar year during which an institution owns all or
part of any corporation licensed as an insurance producer as required by
ORS 744.053, the institution shall file a written report with the
director. The report shall be filed no later than March 31 of the
following year and shall disclose the insurance activities of the
corporation. The required contents of the report shall be established by
the director by rule. The reports filed with the director under this
paragraph shall be available for public inspection in the office of the
director.
(d) The corporation shall not in any manner use customer
information obtained by the institution from another insurance producer
to promote, develop or solicit insurance business for the corporation
unless the other insurance producer consents to such use of the customer
information.
(e) The corporation shall be subject to the limitations applicable
to depository institutions under ORS 746.213 to 746.219. For the purpose
of this paragraph, “depository institution” has the meaning given that
term in ORS 746.213. [1997 c.631 §119; 1997 c.772 §31b; 1997 c.831 §2a;
2001 c.191 §52; 2001 c.377 §47; 2003 c.363 §7; 2003 c.364 §59a; 2005 c.80
§4; 2005 c.194 §1](1) Upon the written application of the
board of directors filed with the Director of the Department of Consumer
and Business Services and subject to the written approval of the director
and any limitations the director may prescribe, an institution may carry
fully paid and nonassessable capital stock of any other corporation as an
asset, if the stock is acquired for the purpose of strengthening the
institution’s capital structure or the elimination of undesirable assets.
(2) The stock may be held for such period as the director may
determine, but in no event longer than 15 years.
(3) This section is not applicable to any stock that may be
acquired in connection with the insurance of deposits, any stock that may
be acquired under ORS 708A.120, or any stock that may be purchased 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. [1997 c.631 §120] As used in ORS
708A.135 to 708A.145, unless the context requires otherwise, “invest”
includes any advance of funds to a bank service corporation, whether by
the purchase of stock, the making of a loan or otherwise, but does not
include a payment for rent earned, goods sold and delivered or services
rendered prior to the making of the payment. [1997 c.631 §121] An Oregon
commercial bank may invest not more than 10 percent of its capital in a
bank service corporation. An Oregon commercial bank shall not invest more
than five percent of its total assets in a bank service corporation.
[1997 c.631 §122]A bank
service corporation shall not unreasonably discriminate in the provision
of any services authorized under ORS 708A.130 to 708A.145 against any
financial institution that does not own stock in the bank service
corporation on the basis of the fact that the nonstockholding financial
institution is in competition with a financial institution that owns
stock in the bank service corporation, except that:
(1) It shall not be considered unreasonable discrimination for a
bank service corporation, at its option, to either:
(a) Provide services to nonstockholding financial institutions only
at a price that fully reflects all of the costs of offering those
services, including the cost of capital and a reasonable return thereon;
or
(b) If an Oregon commercial bank is authorized under ORS 708A.135
to invest in a bank service corporation, the bank service corporation may
require that the Oregon commercial bank invest in the stock of the bank
service corporation, in which case the bank service corporation shall
provide services to the Oregon commercial bank on the same basis as for
other stockholder financial institutions of the bank service corporation.
(2) A bank service corporation may refuse to provide services to a
nonstockholding financial institution if comparable services are
available from another source at competitive overall costs, or if the
providing of services would be beyond the practical capacity of the bank
service corporation. [1997 c.631 §123](1) A bank service corporation may
perform any of the following services for financial institutions:
(a) Check and deposit sorting and posting;
(b) Computation and posting of interest and other credits and
charges;
(c) Preparation and mailing of checks, statements, notices and
similar items; or
(d) Any other clerical, bookkeeping, accounting, statistical or
similar functions performed for a financial institution.
(2) In addition to the services that may be performed by a bank
service corporation for financial institutions under subsection (1) of
this section, a bank service corporation:
(a) May perform for any person any service that may lawfully be
performed by all shareholders of the bank service corporation, or by any
holding company or subsidiary of any such shareholder, except that a bank
service corporation shall not take deposits.
(b) With respect to the sale of insurance, shall be subject to the
limitations applicable to depository institutions under ORS 746.213 to
746.219. For the purpose of this paragraph, “depository institution” has
the meaning given that term in ORS 746.213.
(3) A banking institution may not cause to be performed, by
contract or otherwise, any of the services described in subsection (1) of
this section for itself, whether on or off its premises, unless
assurances satisfactory to the Director of the Department of Consumer and
Business Services are furnished to the director by both the banking
institution and the person performing the services that the performance
of the services will be subject to regulation and examination by the
director to the same extent as if the services were performed by the
banking institution itself on its own premises.
(4) The director may regulate and examine the performance of the
services described in subsection (1) of this section for financial
institutions, and may regulate and examine the performance by bank
service corporations of the services described in subsection (2) of this
section. [1997 c.631 §124; 2003 c.363 §8](1) As provided in this
section:
(a) A banking institution may invest its capital in a community
development corporation.
(b) A banking institution may organize a community development
corporation as a wholly owned subsidiary of the banking institution and
invest its capital in the corporation.
(2) A banking institution may invest in or organize and invest in a
community development corporation under subsection (1) of this section,
if the following conditions are satisfied:
(a) The projects undertaken by the community development
corporation must be predominantly of a civic, community or public nature,
and not merely of a private or entrepreneurial nature.
(b) The banking institution’s aggregate investment in community
development corporations and their projects must not exceed two percent
of its capital for any project and five percent of its capital for all
projects, or 10 percent of its capital for all projects with the approval
of the Director of the Department of Consumer and Business Services.
(c) The banking institution must submit to the director its
proposal for investing in or organizing and investing in a community
development corporation and the proposal must receive the director’s
approval.
(d) The membership of the board of directors of the community
development corporation must be representative of the community in which
the corporation is to operate.
(3) A community development corporation may be organized as a
for-profit corporation under ORS chapter 60 or as a nonprofit corporation
under the Oregon Nonprofit Corporation Law. A community development
corporation must be authorized under its articles of incorporation or
applicable law to:
(a) Acquire real estate. This paragraph does not authorize real
estate investment that is primarily speculative in nature.
(b) Make equity investments in small businesses and in development
projects that primarily benefit small businesses.
(c) Participate in joint ventures with outside partners.
(4) A banking institution wishing to invest in or organize and
invest in a community development corporation shall submit to the
director, on an application form designed by the director, a proposal
that describes in detail the nature and scope of development activities
the community development corporation intends to undertake.
(5) The director may submit an application to any appropriate state
agency or city, county or other local government for its advice and
assistance on determining the need and practicability of the projects
proposed in the application. [1997 c.631 §125] (1) Upon the approval of the
Director of the Department of Consumer and Business Services and subject
to rules promulgated by the director pursuant to ORS 183.310, 183.315,
183.330, 183.335 and 183.341 to 183.410, an institution may invest an
amount not exceeding in the aggregate 10 percent of its stockholders’
equity in the stock of banks or corporations chartered or incorporated
under the laws of the United States or of any other state. Such banks or
corporations shall be principally engaged in international or foreign
banking, or banking in a dependency or insular possession of the United
States, either directly or through the agency, ownership or control of
local institutions in foreign countries, or in such dependencies or
insular possessions, including the stock of one or more banks or
corporations chartered or incorporated under section 25(a) of the Federal
Reserve Act, as approved December 24, 1919.
(2) An institution shall file with the director an application for
permission to exercise the powers established in subsection (1) of this
section. The application shall specify the name, stockholders’ equity of
the institution filing it, the powers applied for and the place or places
where the banking operations are to be carried on.
(3) The director may approve or reject the application, in whole or
in part, if the granting of the application is considered inexpedient.
The director may increase or decrease the number of places where the
banking operations may be carried on.
(4) Before an institution may purchase stock in any corporation
mentioned in subsection (1) of this section, the corporation shall agree
to restrict its operations or conduct its business in the manner and
under the limitations prescribed by the director for the places in which
the business is to be conducted.
(5) If the director determines that the limitations prescribed are
not being complied with, the director may investigate the matter. If the
investigation shows that the corporation, or the institution holding
stock in the corporation, has not complied with the limitations, the
director may require the institution to dispose of stock holdings in the
corporation.
(6) An institution investing in the capital stock of banks or
corporations, as provided in subsection (1) of this section, shall
furnish information concerning the condition of the banks or corporations
to the director upon demand, and the director may order special
examinations of the banks or corporations. [1997 c.631 §126; 1999 c.59
§216]A banking institution may, subject to the approval of the
Director of the Department of Consumer and Business Services, acquire and
continue to hold a membership in or the fully paid stock of a corporation
created to establish and operate ATM facilities. [1997 c.631 §127](1) Any Oregon commercial bank may
subscribe to the capital stock and become a member of a Federal Reserve
Bank.
(2) An Oregon commercial bank that is a member of a Federal Reserve
Bank is subject to supervision and examination required by the laws of
this state. The Federal Reserve Board may also examine such Oregon
commercial banks. The authorities of this state having supervisory
authority over an Oregon commercial bank may disclose to the Federal
Reserve Board, or to examiners appointed by it, all information in
reference to the affairs of any Oregon commercial bank that has become,
or desires to become, a member of a Federal Reserve Bank.
(3) An Oregon commercial bank that is a member bank and its
directors, principal officers and stockholders are subject to all
liabilities and duties imposed upon them by the laws of this state. [1997
c.631 §128] An institution may, with the approval
of the Director of the Department of Consumer and Business Services,
purchase, sell, issue, underwrite and deal in securities to the same
extent national banks may do so. [1997 c.631 §129]An institution may purchase, hold, convey, sell or lease:
(1) The real estate and improvements thereto in which the business
of the institution is carried on, including, with its offices, other
space in the same building to rent as a source of income.
(2) Furniture, fixtures, vaults, safe deposit boxes and other
personal property necessary or convenient to carrying on the business of
the institution.
(3) Real or personal property purchased by or conveyed to the
institution in satisfaction of or on account of debts previously
contracted in the course of its business, or otherwise acquired in the
course of collecting debts.
(4) Real estate purchased at execution sale or under a judgment.
(5) Real estate conveyed to the institution in connection with its
purchase of a bona fide contract of sale covering the real estate
conveyed.
(6) Real estate purchased with the approval of the Director of the
Department of Consumer and Business Services for the purpose of future
location or expansion of the business of the institution.
(7) Real estate held in trust and real estate purchased with assets
other than those of the institution. [1997 c.631 §131; 2003 c.576 §545] An
Oregon commercial bank may acquire and lease personal property at the
request of a lessee who wishes to lease it upon terms requiring payment,
during the minimum period of the lease, of rents which exceed the total
expenditures by the Oregon commercial bank in the acquisition, ownership,
financing and protection of the property. Rents may include residual
values, the payment of which is guaranteed by a responsible third party.
[1997 c.631 §132] Institutions may
purchase the vendor’s interest in bona fide contracts covering the sale
of real estate that comply with the requirements of ORS 708A.270. [1997
c.631 §133](1) An
Oregon commercial bank may accept drafts or bills of exchange drawn upon
it having not more than six months’ sight to run, exclusive of days of
grace, that grow out of transactions involving the importation or
exportation of goods, or that grow out of the domestic shipment of goods,
or that are secured at the time of acceptance by a warehouse receipt or
other such document conveying or securing title covering readily
marketable staples.
(2) An Oregon commercial bank shall not accept drafts or bills of
exchange or issue letters of credit, whether in a foreign or domestic
transaction, for any one person to an amount equal at any one time in the
aggregate to more than 20 percent of its capital, unless the Oregon
commercial bank is fully secured either by attached documents or by some
other actual security growing out of the same transaction as the
acceptance or letter of credit.
(3) Except as provided in subsection (5) of this section, an Oregon
commercial bank shall not accept bills or issue letters of credit, or be
obligated for a participation share in bills, to an amount equal at any
time in the aggregate to more than 150 percent of its capital. The
aggregate of acceptances or bills, including obligations for a
participation share in such acceptances, growing out of domestic
transactions shall not exceed 50 percent of the aggregate of all
acceptances, including obligations for a participation share in such
acceptances, authorized for the Oregon commercial bank under this section.
(4) An Oregon commercial bank may accept drafts or bills of
exchange drawn upon it having not more than six months’ sight to run,
exclusive of days of grace, drawn under rules prescribed by the Director
of the Department of Consumer and Business Services or bankers in foreign
countries or dependencies or insular possessions of the United States for
the purpose of furnishing dollar exchange, as required by the usages of
trade in the respective countries, dependencies or insular possessions.
An Oregon commercial bank shall not accept the drafts or bills of
exchange for any one bank to any amount exceeding in the aggregate 20
percent of the capital of the accepting Oregon commercial bank, unless
the draft or bill of exchange is accompanied by documents conveying or
securing the title or by some other adequate security. An Oregon
commercial bank shall not accept the drafts or bills of exchange in an
amount exceeding at any time the aggregate of its capital.
(5) The director, under such conditions as the director may
prescribe, may authorize, by rule or order, any Oregon commercial bank to
accept bills and issue letters of credit, or be obligated for a
participation share in bills, in an amount not exceeding at any time in
the aggregate 200 percent of its capital. [1997 c.631 §134] (1) An
institution shall promptly dispose of all real and personal property that
the institution is not authorized to own or hold under the Bank Act.
(2) All real estate acquired by an institution pursuant to ORS
708A.175 (3) and (4) shall be sold or exchanged for other real estate
within 15 years after title has vested in it, unless the time is extended
by the Director of the Department of Consumer and Business Services.
Title is deemed vested for purposes of this section on the date the
institution is first entitled to receive a deed to the real estate. Real
estate may not be exchanged for other real estate without the prior
written consent of the director. An institution may hold real estate
taken in exchange for other real estate for such period of time as the
director may fix, not to exceed 15 years from the date of the exchange.
(3) All personal property acquired by an institution pursuant to
ORS 708A.175 (3) shall be promptly disposed of. [1997 c.631 §135](1) Except as provided in subsection (2) of this section, the
validity of an institution’s action may not be challenged on the grounds
that the institution lacks or lacked power to act.
(2) An institution’s power to act may be challenged:
(a) In a proceeding by a stockholder against the institution to
enjoin the act;
(b) In a proceeding by the institution, directly, derivatively or
through a receiver, trustee or other legal representative, against an
incumbent or former director, officer, employee or agent of the
institution; or
(c) By the Director of the Department of Consumer and Business
Services.
(3) In a stockholder’s proceeding under subsection (2)(a) of this
section to enjoin an unauthorized act, the court may enjoin or set aside
the act if equitable and if all affected persons are parties to the
proceeding, and may award damages for loss other than anticipated profits
suffered by the institution or another party because of enjoining the
unauthorized act. [1997 c.631 §137]LOANS GENERALLY Except as specifically limited by the Bank
Act and other applicable law, institutions have the general power to loan
money upon terms and conditions that are consistent with safe and sound
banking practices. [1997 c.631 §138]
(1) Except as otherwise provided in this section, there is no limitation
on the rate of interest or on the amount of other charges that a
financial institution may contract for and receive for a loan or use of
money.
(2) If a loan made by a financial institution is repaid before
maturity, the unearned portion of the charges, if any, shall be refunded
or credited to the borrower as provided in this subsection. The amount of
the refund shall not be less than the total interest contracted for to
maturity, less the greater of:
(a) Ten percent of the amount financed, or $75, whichever is less;
or
(b) The interest earned to the installment due date nearest the
date of prepayment, computed by applying the simple interest rate of the
loan to the actual principal balances outstanding, for the periods of
time the balances were actually outstanding. For purposes of rebate
computations under this paragraph, the installment due date preceding the
date of prepayment shall be considered to be nearest if prepayment occurs
15 days or less after that installment date. If prepayment occurs more
than 15 days after the preceding installment due date, the next
succeeding installment due date shall be considered to be nearest the
date of prepayment. In determining the simple interest rate, the lender
may apply to the scheduled payments the actuarial method, by which each
scheduled payment is applied first to accrued and unpaid interest and any
amount remaining is applied to reduction of the principal balance.
(3) Any installment of an installment loan or payment under an
open-end credit arrangement that is not paid when due shall continue to
bear interest until paid. In addition, if the installment or payment is
not paid when due, the installment or payment may bear a late charge in
such amount as is agreed to by the lender and the borrower. However,
except for loans secured by real property, the lender may impose a late
charge only if:
(a) The installment or payment is not received by the lender within
10 days after the due date or, if the open-end credit arrangement is a
credit card account, the payment is not received by the lender on or
before the due date;
(b) The loan agreement or open-end credit arrangement provides for
a late charge upon delinquent installments or payments; and
(c) A monthly billing, coupon or notice is provided by the lender
disclosing the date on which installments or payments are due and that a
late charge may be imposed if payment is not received by the lender
within 10 days thereafter or, in the case of an open-end credit
arrangement that is a credit card account, that a late charge may be
imposed if payment is not received by the lender on or before the date on
which the payment is due. However, if the lender and the borrower have
provided in the note or other written loan agreement that the payments on
the loan shall be made by the means of automatic deductions from a
deposit account maintained by the borrower, the lender shall not be
required to provide the borrower with a monthly billing, coupon or notice
under this paragraph with respect to any occasion on which there are
insufficient funds in the borrower’s account to cover the amount of a
loan payment on the date the loan payment becomes due and within the
periods described in paragraph (a) of this subsection. [1997 c.631 §139;
1997 c.631 §139a; 2001 c.440 §1] An institution shall
not accept as collateral its own capital stock, except where the taking
of such collateral is necessary to prevent loss upon an indebtedness
previously contracted in good faith. If such indebtedness is not paid in
full within six months from the date such stock was taken as collateral,
the stock shall be promptly sold by the institution. [1997 c.631 §140] An
institution shall not accept or hold as loan collateral in the aggregate
more than 25 percent of the capital stock of any other insured stock
institution. [1997 c.631 §141] (1) With respect to any loans secured
primarily by real estate, an Oregon commercial bank shall maintain a file
containing such appraisal, evidence of merchantable title and insurance
as may be required by the Director of the Department of Consumer and
Business Services.
(2) All loans made by an Oregon commercial bank to finance the
construction of buildings and the improvements appurtenant thereto shall
be subject to such requirements as the director may determine. [1997
c.631 §142] (1)
A financial institution shall file a notice with the Director of the
Department of Consumer and Business Services within 30 days of
establishing a loan production office in this state. The notice shall
include:
(a) The name of the financial institution and address of the main
office;
(b) The name and address of the loan production office; and
(c) The name and address of the officer of the financial
institution responsible for loan production office activities.
(2) A notice shall be filed for each loan production office in this
state.
(3) Each notice filed under subsection (1) of this section shall be:
(a) Accompanied by a nonrefundable fee of $100.
(b) Amended when there is a material change in the information
provided pursuant to subsection (1) of this section. No fee is required
for amendments.
(4) A financial institution shall notify the director of the
closure of a loan production office in this state, the date of closure
and the disposition of any records previously maintained at the loan
production office subject to closure. No fee is required for a notice of
closure. [1999 c.107 §5]LOAN AND OTHER OBLIGATION LIMITS As used in
ORS 708A.290 to 708A.375, the term “capital,” when referring to an Oregon
commercial bank, means tier 1 and tier 2 capital, as defined under the
federal risk-based capital guidelines of the appropriate federal banking
agency and issued under 12 U.S.C. 1813, plus the balance of allowance for
loan and lease losses excluded from tier 2 capital. The amounts described
in this section shall be determined from the most recent consolidated
report of condition and income filed under 12 U.S.C. 1817(a)(3). [1997
c.631 §143]Except as provided in ORS 708A.300 to 708A.375, the
loans and other obligations of a person to an Oregon commercial bank
outstanding at any time shall not exceed 15 percent of the Oregon
commercial bank’s capital. Any loan made or other obligation acquired in
accordance with ORS 708A.300 to 708A.375 shall be in addition to and
shall not be applied against the 15 percent limitation. Any loan made or
obligation acquired that complies with ORS 708A.290 to 708A.375 when made
or acquired shall not be considered out of compliance on account of a
subsequent decline in the capital of the Oregon commercial bank.
Obligations in the name of one person for the benefit of another person
shall be considered obligations of both the named person and the
benefited person. [1997 c.631 §144] In
addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to or acquire other obligations of a
person, not to exceed 10 percent of its capital, if:
(1) The loans or obligations are fully secured by readily
marketable collateral having a market value that may be determined by
reliable and continuously available price quotations;
(2) The market value is at least 15 percent greater than the amount
of the obligation at the time it is incurred; and
(3) The market value is at all times while the obligation is
outstanding at least 100 percent of the balance of principal, interest
and other charges applicable to the obligation. [1997 c.631 §145] In addition
to obligations permitted under ORS 708A.295, an Oregon commercial bank
may acquire obligations of other financial institutions without regard to
amount in the form of time or demand deposits that it places with such
other financial institutions. [1997 c.631 §146]
(1) In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may acquire obligations of a person without regard to
amount as an indorser, arising out of the discount of commercial or
business paper owned by the person negotiating the paper.
(2) As used in this section, “commercial or business paper” means
negotiable notes, drafts, acceptances or bills of exchange having a
maturity of not more than six months, that have been given by one person
to another in settlement of a commercial or business transaction
involving the purchase of goods, and upon which both parties to the
transaction are liable either as maker, drawer, acceptor or indorser.
[1997 c.631 §147] In addition to obligations
permitted under ORS 708A.295, an Oregon commercial bank may acquire
obligations of a person, not to exceed 15 percent of the bank’s capital,
as an indorser or guarantor of notes, other than commercial or business
paper excepted under ORS 708A.310, having a maturity of not more than six
months, and owned by the person indorsing and negotiating the same. [1997
c.631 §148] In addition to
obligations permitted under ORS 708A.295, an Oregon commercial bank may
make loans to or acquire other obligations of a person without regard to
amount, provided the obligations are fully secured by shipping documents
conveying or securing title to goods or commodities in process of
shipment. [1997 c.631 §149] (1) In addition to obligations
permitted under ORS 708A.295, an Oregon commercial bank may acquire
obligations of a person, not to exceed 25 percent of the Oregon
commercial bank’s capital, as an indorser or guarantor of negotiable or
nonnegotiable installment consumer paper that carries a full or partial
recourse indorsement or unconditional guarantee by the person
transferring the obligation and conforms to rules prescribed by the
Director of the Department of Consumer and Business Services.
(2) The 25 percent limitation of subsection (1) of this section
does not apply to the extent the Oregon commercial bank relies primarily
on the obligors on the consumer paper for the payment of the consumer
paper, the Oregon commercial bank has reasonably adequate knowledge of
the financial condition of the obligors on the consumer paper and an
officer of the Oregon commercial bank certifies in writing that the
creditworthiness of the obligors on the consumer paper has been
evaluated. The certificate shall be retained as part of the records of
the Oregon commercial bank. [1997 c.631 §150] In
addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may acquire obligations of a person without regard to
amount in the form of bankers’ acceptances of other financial
institutions of the kind described in section 13 of the Federal Reserve
Act. [1997 c.631 §151](1) 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:
(a) 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.
(b) 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.
(c) 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.
(d) 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.
(e) 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.
(2) If it is customary to insure the staples mentioned in
subsection (1) of this section, the staples shall be fully covered by
insurance.
(3) This section does not apply to obligations of a person secured
by the same staples for more than 10 months.
(4) Staples, for purposes of this section, in addition to being
readily marketable, must be either:
(a) Nonperishable; or
(b) Perishable, but frozen, freeze-dried, irradiated or
refrigerated for the purpose of protecting the staple against
deterioration. [1997 c.631 §152] In
addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to and acquire other obligations of a
person, not to exceed 15 percent of the Oregon commercial bank’s capital,
secured by documents of title covering livestock if the principal amount
of the obligation is not more than 80 percent of the market value of the
livestock. Turkeys are considered livestock within the meaning of this
section. [1997 c.631 §153]In addition to obligations permitted under ORS
708A.295, an Oregon commercial bank may make loans to and acquire other
obligations of any person if the obligation is secured by one or more of
the following types of security and the principal amount of the
obligation is not more than 90 percent of the market value of the
security:
(1) Obligations of the United States, including those of its
agencies and instrumentalities;
(2) Obligations of public housing agencies issued pursuant to the
United States Housing Act of 1937, as amended;
(3) Obligations of the State of Oregon or any county, city, school
district, port district or other public body with the power to levy taxes
issued pursuant to the Constitution or statutes of the State of Oregon or
the charter or ordinances of any county or city within the State of
Oregon, if the issuing body has not been in default with respect to the
payment of principal or interest on any of its obligations within five
years preceding the date of the investment; or
(4) Shares in any mutual fund or unit trust, the assets of which
are invested solely in obligations of the type described in subsections
(1) to (3) of this section. [1997 c.631 §154] In addition to
obligations permitted under ORS 708A.295, an Oregon commercial bank may
make loans to and accept other obligations of a person, not to exceed 20
percent of the Oregon commercial bank’s capital, if:
(1) The obligation is secured by bonds of any state of the United
States or bonds of any county, city, school district, port district or
other public body in the United States;
(2) The principal amount of the obligation is not more than 90
percent of the market value of the bonds that secure the obligation;
(3) The bonds are payable from ad valorem taxes; and
(4) The bonds are rated in one of the four highest grades by a
recognized investment service organization that has been engaged
regularly and continuously for a period of not less than 10 years in
rating state and municipal bonds. [1997 c.631 §155] In addition to
obligations permitted under ORS 708A.295, an Oregon commercial bank may
make loans to and acquire other obligations of a person without regard to
amount to the extent the obligations are insured, guaranteed or covered
by commitments or agreements to take over or purchase made by a private
mortgage insurance company, the State of Oregon, any Federal Reserve
Bank, the United States or any department, bureau, board, commission or
agency of the United States, including any corporation wholly owned,
directly or indirectly, by the United States. [1997 c.631 §156] (1) In addition to
obligations permitted under ORS 708A.295, an Oregon commercial bank may
make loans to and acquire other obligations of a person without regard to
amount to the extent the obligations are fully secured by any kind of
deposit held by the Oregon commercial bank, including but not limited to
deposits held in an automatic savings to checking transfer account or a
negotiable order of withdrawal account.
(2) In addition to obligations permitted under ORS 708A.295, an
Oregon commercial bank may make loans to and acquire other obligations of
a person without regard to amount to the extent the obligations are fully
secured at all times by any kind of deposit, including but not limited to
deposits held in an automatic savings to checking transfer account or a
negotiable order of withdrawal account that are fully insured, guaranteed
or underwritten by the United States Government or any agency or
instrumentality of the United States by virtue of any Act of Congress or
amendments thereto. [1997 c.631 §157] In
addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to and acquire obligations of a person not
to exceed 10 percent of the Oregon commercial bank’s capital that are
secured by a life insurance policy having a cash surrender value of not
less than 100 percent of the amount of the obligations, plus an amount
equal to one annual premium on the insurance policy. [1997 c.631 §158] In
addition to obligations permitted by ORS 708A.295, an Oregon commercial
bank may make loans to and acquire other obligations of a person not to
exceed 10 percent of the Oregon commercial bank’s capital that are
secured by a first lien on real estate if the obligation does not exceed
80 percent of the fair market value of the real estate as determined by
an independent appraisal. Obligations secured by a first lien on real
estate that are subject to ORS 708A.295 may become exempt from ORS
708A.295 if:
(1) Title to the real estate has, in good faith, passed to another
and the original maker of the note is no longer either directly or
through some other person the owner of the real estate;
(2) The new owner has assumed the obligation and the Oregon
commercial bank looks to the owner of the real estate rather than the
maker of the obligation for payment;
(3) The obligation is not in default at the time the obligation
becomes no longer subject to ORS 708A.295; and
(4) The obligation does not exceed 80 percent of the fair market
value of the real estate at the time the obligation becomes no longer
subject to ORS 708A.295. [1997 c.631 §159]:RF10 In addition to obligations
permitted by ORS 708A.295, an Oregon commercial bank may acquire
obligations of a person, in the form of a guaranty or otherwise, without
regard to amount, on account of obligations previously contracted in good
faith or to reduce the risk of loss. Any such obligations shall, however,
be subject to ORS 708A.295 in determining whether the Oregon commercial
bank may make additional loans to or acquire other obligations of the
person. [1997 c.631 §160]DEPOSITS Oregon commercial banks may, consistent
with applicable law and safe and sound banking practices, offer deposit
accounts upon such terms and conditions as they consider appropriate.
[1997 c.631 §161] Oregon commercial banks
shall secure insurance for their deposits from the Federal Deposit
Insurance Corporation or a similar organization organized under the laws
of the United States. [1997 c.631 §162](1) Within the limits established under applicable federal statutes
and regulations, an Oregon commercial bank receiving savings accounts
shall prescribe by its bylaws or by contract with its depositors, the
time and conditions on which repayment is to be made to depositors or to
their order.
(2) A bank may require 30 days’ notice to withdraw any sum up to
$5,000, 90 days’ notice to withdraw any sum over $5,000 and not over
$50,000, and 180 days’ notice to withdraw any sum over $50,000.
Withdrawals during a specified time period may be limited in the
aggregate to the amount designated for that time period.
(3) Except for negotiable orders of withdrawal and similar deposit
accounts, withdrawal from which is made subject to check, an Oregon
commercial bank shall not knowingly permit a depositor to overdraw the
depositor’s savings account. [1997 c.631 §163](1) An Oregon commercial bank may secure any of the funds
deposited with the Oregon commercial bank by giving a surety bond, an
irrevocable letter of credit issued by an insured institution, as defined
in ORS 706.008, or a policy of insurance under which some person other
than the Oregon commercial bank becomes liable for deposits, provided
that the aggregate face amount of the bonds, letters of credit and
policies of insurance does not exceed 20 percent of the capital of the
Oregon commercial bank.
(2) A depositor may insure any deposit if the Oregon commercial
bank is not a party to the insurance and does not pay any premium or
other charges. [1997 c.631 §164](1) If an
Oregon commercial bank changes the terms, service charges or conditions
for withdrawal of any deposit account, the Oregon commercial bank shall
notify the depositor in writing before the change is effective. If an
Oregon commercial bank decreases the interest rate on any deposit
account, other than an account that by its terms provides for a floating,
variable or indexed rate of interest, the Oregon commercial bank shall
notify the depositor in writing before the change is effective. With
respect to deposit accounts that by their terms provide for a floating,
variable or indexed rate of interest, the Oregon commercial bank shall
not be required to give notice to the depositor concerning changes in the
interest rate other than by means of account statements provided to the
depositor in the ordinary course, not less than once each calendar
quarter. Any notice required by this section may be given to the
depositor in person or sent to the depositor by regular mail at the last
address shown on the Oregon commercial bank’s deposit account records. In
the case of accounts held in the names of two or more depositors, the
Oregon commercial bank may give or send the notice to any of the
depositors.
(2) The provisions of subsection (1) of this section shall not
apply to any change in the interest rate payable upon an account as
described in ORS 86.245. [1997 c.631 §165] Any deposit to a financial
institution made to an account in the name of a minor shall be held for
the exclusive right and benefit of the minor free from the control or
lien of all other persons, except other parties to the account and
creditors, and shall be paid, in accordance with the terms of the
account, together with any interest thereon, to or upon the order of the
minor. [1997 c.631 §166] (1) On the
death of a depositor of a financial institution, if the deposit is
$25,000 or less, the financial institution may, upon receipt of an
affidavit from the person claiming the deposit as provided in subsection
(2) of this section, pay the moneys on deposit to the credit of the
deceased depositor:
(a) To the surviving spouse;
(b) If there is no surviving spouse, to the Department of Human
Services, on demand of the department within 60 days from the death of
the depositor where there is a preferred claim arising under ORS 411.708,
411.795 or 414.105, or if there is no claim by the department, to the
surviving children 18 years of age or older;
(c) If the depositor left no surviving spouse, Department of Human
Services claim or surviving children, to the depositor’s surviving
parents; or
(d) If there is no surviving spouse, Department of Human Services
claim, surviving child or surviving parent, to the depositor’s surviving
brothers and sisters 18 years of age or older.
(2) The affidavit shall:
(a) State where and when the depositor died;
(b) State that the total deposits of the deceased depositor in all
financial institutions in Oregon do not exceed $25,000;
(c) Show the relationship of the affiant or affiants to the
deceased depositor; and
(d) Embody a promise to pay the expenses of last sickness, funeral
expenses and just debts of the deceased out of the deposit to the full
extent of the deposit if necessary, in the order of priority prescribed
by ORS 115.125, and to distribute any remaining moneys to the persons who
are entitled to those moneys by law.
(3) In the event the decedent died intestate without known heirs,
an estate administrator of the Department of State Lands appointed under
ORS 113.235 shall be the affiant and shall receive the moneys as escheat
property.
(4) The financial institution shall determine the relationship of
the affiant to the deceased depositor, however payment of such moneys in
good faith to the affiant or affiants shall discharge and release the
transferor from any liability or responsibility for the transfer in the
same manner and with the same effect as if the property had been
transferred, delivered or paid to a personal representative of the estate
of the decedent.
(5) A probate proceeding is not necessary to establish the right of
the surviving spouse, Department of Human Services claim, surviving
child, surviving parent, surviving brothers and sisters or an estate
administrator of the Department of State Lands to withdraw the deposits
upon the filing of the affidavit. If a personal representative is
appointed in an estate where a withdrawal of deposits was made under this
section, the person withdrawing the deposits shall account for them to
the personal representative.
(6) When a financial institution transfers moneys under subsection
(1) of this section, the transferor may require the transferee to furnish
the transferor a written indemnity agreement, indemnifying the transferor
against loss for moneys paid to the extent of the amount of the deposit.
(7) This section is subject to the rights of other parties in the
account under ORS 708A.455 to 708A.515. [1997 c.631 §167; 2003 c.395 §20;
2005 c.381 §26](1) An Oregon
operating institution shall be obligated to recognize an adverse claim to
a deposit it holds only if the adverse claimant gives notice to the
Oregon operating institution of its claim and:
(a) Procures a restraining order, injunction or other appropriate
process against the Oregon operating institution in an action wherein the
person to whose credit the deposit stands is made a party and served with
summons; or
(b) Delivers to the Oregon operating institution in a form, and
with sureties acceptable to the Oregon operating institution, a bond or
an irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008, indemnifying the Oregon operating institution
from any liability, damage and expenses on account of the payment of the
adverse claim or the dishonor of the check or other order of the person
to whose credit the deposit stands.
(2) This section does not apply where the person in whose name the
account is carried is a fiduciary for the adverse claimant, and the
affidavit of the adverse claimant states the facts constituting the
fiduciary relationship and the facts showing reasonable cause of belief
on the part of the claimant that the fiduciary is about to misappropriate
the deposit.
(3) An Oregon operating institution may, at its option, interplead
a deposit that is subject to an adverse claim. [1997 c.631 §168]If a person who owns a deposit account subject to check
authorizes another person as agent to draw checks against the account,
the financial institution, in the absence of written notice to the
contrary, may presume that any check drawn by the agent in the manner
authorized by the terms and conditions of the account, including checks
drawn to the personal order of the agent, is drawn for a purpose
authorized by the principal and within the scope of the authority
conferred upon the agent. [1997 c.631 §169] An Oregon
commercial bank or a national bank may refuse to pay any check, draft or
order drawn upon it when the officers or employees of the bank have
reason to believe that the person signing or indorsing the instrument was
so under the influence of liquor, drugs or controlled substances or that
the person is otherwise so incapacitated as to make it reasonably
doubtful whether the person was at the time of signing or indorsing the
check, draft or order capable of transacting business. [1997 c.631 §170] (1) An Oregon commercial bank shall
certify a check only if the amount of the check actually stands to the
credit of the drawer in collected funds on the books of the Oregon
commercial bank.
(2) The amount of any certified check shall be immediately charged
to the drawer’s account. [1997 c.631 §171] As used in ORS
708A.455 to 708A.515, unless the context requires otherwise:
(1) “Account” means a contract of deposit of funds between a
depositor and a financial institution, and includes a checking account,
savings account, certificate of deposit and share account.
(2) “Beneficiary” means a person named in a trust account as one
for whom a party to the account is named as trustee.
(3) “Joint account” means an account payable on request to one or
more of two or more parties whether or not mention is made of any right
of survivorship.
(4) “Multiple-party account” means a joint account, a P.O.D.
account or a trust account. “Multiple-party account” does not include
accounts established for deposit of funds of a partnership, joint venture
or other association for business purposes, or accounts controlled by one
or more persons as the duly authorized agent or trustee for a
corporation, unincorporated association, charitable or civic organization
or a regular fiduciary or trust account where the relationship is
established other than by deposit agreement.
(5) “Net contribution” of a party to a joint account as of any
given time means the sum of all deposits thereto made by or for the
party, less all withdrawals made by or for the party that have not been
paid to or applied to the use of any other party, plus a pro rata share
of any interest or dividends included in the current balance. The term
includes, in addition, any proceeds of deposit life insurance added to
the account by reason of the death of the party whose net contribution is
in question.
(6) “Party” means a person who, by the terms of the account, has a
present right, subject to request, to payment from a multiple-party
account. A P.O.D. payee or beneficiary of a trust account is a party only
after the account becomes payable to the payee or beneficiary by reason
of the payee’s or beneficiary’s surviving the original party or trustee.
Unless the context requires otherwise, “party” includes a guardian,
conservator, personal representative or assignee, including an attaching
creditor, of a party. “Party” also includes a person identified as a
trustee of an account for another whether or not a beneficiary is named,
but it does not include any named beneficiary unless the named
beneficiary has a present right of withdrawal.
(7) “Payment” of sums on deposit includes withdrawal, payment on
check or other directive of a party, and any pledge of sums on deposit by
a party and any setoff, reduction or other disposition of all or part of
an account pursuant to a pledge.
(8) “P.O.D. account” means an account payable on request to one
person during the lifetime of the person and on the death of the person
to one or more P.O.D. payees, or to one or more persons during their
lifetimes and on the death of all of them to one or more P.O.D. payees.
(9) “P.O.D. payee” means a person designated on a P.O.D. account as
one to whom the account is payable on request after the death of one or
more persons.
(10) “Request” means a proper request for withdrawal, or a check or
order for payment, that complies with all conditions of the account,
including special requirements concerning necessary signatures and
regulations of the financial institution. If the financial institution
conditions withdrawal or payment on advance notice, for purposes of ORS
708A.455 to 708A.515, the request for withdrawal or payment is treated as
immediately effective and a notice of intent to withdraw is treated as a
request for withdrawal.
(11) “Sums on deposit” means the balance payable on a
multiple-party account including interest, dividends and, in addition,
any deposit life insurance proceeds added to the account by reason of the
death of a party.
(12) “Trust account” means an account in the name of one or more
parties as trustee for one or more beneficiaries where the relationship
is established by the form of the account and the deposit agreement with
the financial institution, and there is no subject of the trust other
than the sums on deposit in the account. It is not essential that payment
to the beneficiary be mentioned in the deposit agreement. A trust account
does not include a regular trust account under a testamentary trust or a
trust agreement that has significance apart from the account, or a
fiduciary account arising from a fiduciary relationship such as
attorney-client.
(13) “Withdrawal” includes payment to a third person pursuant to
check or other directive of a party. [1997 c.631 §172]475; liability and
setoff rights of financial institutions. The provisions of ORS 708A.465
to 708A.475 concerning beneficial ownership as between parties, or as
between parties and P.O.D. payees or beneficiaries of multiple-party
accounts, are relevant only to controversies between those persons and
their creditors and other successors, and have no bearing on the power of
withdrawal of those persons as determined by the terms of account
contracts. The provisions of ORS 708A.485 to 708A.510 govern the
liability of financial institutions that make payments pursuant thereto,
and their setoff rights. [1997 c.631 §173] (1) A joint account
belongs, during the lifetime of all parties, to the parties in proportion
to the net contributions by each to the sums on deposit, unless there is
clear and convincing evidence of a different intent.
(2) A P.O.D. account belongs to the original party during the
lifetime of the party and not to the P.O.D. payee or payees. If two or
more persons are named as original parties, during their lifetimes,
rights as between them are governed by subsection (1) of this section.
(3) Unless a contrary intent is manifested by the terms of the
account or the deposit agreement or there is other clear and convincing
evidence of an irrevocable trust, a trust account belongs beneficially to
the trustee during the lifetime of the trustee. If two or more parties
are named as trustees on the account, during their lifetimes beneficial
rights as between them are governed by subsection (1) of this section. If
there is an irrevocable trust, the account belongs beneficially to the
beneficiary. [1997 c.631 §174](1) Sums remaining on deposit in a
bank at the death of a party to a joint account are rebuttably presumed
to belong to the surviving party or parties as against the estate of the
decedent. If there are two or more surviving parties, their respective
ownerships during their lifetimes shall be in proportion to their
previous ownership interests under ORS 708A.465 augmented by an equal
share for each survivor of any interest the decedent may have owned in
the account immediately before death. The right of survivorship continues
between the surviving parties.
(2) If the account is a P.O.D. account:
(a) On the death of one of two or more original parties, the rights
to any sums remaining on deposit are governed by subsection (1) of this
section.
(b) On the death of the sole original party or the survivor of two
or more original parties, any sums remaining on deposit belong to the
P.O.D. payee or payees, if surviving, or to the survivor of them if one
or more die before the original party. If two or more P.O.D. payees
survive, there is no right of survivorship in the event of death of a
P.O.D. payee thereafter unless the terms of the account or deposit
agreement expressly provide for survivorship between them.
(3) If the account is a trust account:
(a) On the death of one of two or more trustees, the rights to any
sums remaining on deposit are governed by subsection (1) of this section.
(b) On the death of the sole trustee or the survivor of two or more
trustees, any sums remaining on deposit belong to the person or persons
named as beneficiaries, if surviving, or to the survivor of them if one
or more die before the trustee, unless there is clear and convincing
evidence of a contrary intent. If two or more beneficiaries survive,
there is no right of survivorship in event of death of any beneficiary
thereafter unless the terms of the account or deposit agreement expressly
provide for survivorship between them.
(4) In other cases, the death of any party to a multiple-party
account has no effect on beneficial ownership of the account, other than
to transfer the rights of the decedent as part of the estate of the
decedent.
(5) A right of survivorship arising from the express terms of the
account or under this section, a beneficiary designation in a trust
account, or a P.O.D. payee designation, cannot be changed by will.
(6) The rebuttable presumption under subsection (1) of this section
may be overcome by evidence establishing that:
(a) The deceased party intended a different result; or
(b) The deceased party lacked capacity when the joint account was
established.
(7) A bank is not liable for distributing sums remaining on deposit
at the death of a party to a joint account to a surviving party or
parties in accordance with the account agreement unless, prior to
distributing sums to a surviving party or parties:
(a) The bank has received notice of an adverse claim under ORS
708A.435; and
(b) The adverse claimant proceeds as required under ORS 708A.435.
[1997 c.631 §175; 2003 c.256 §1]The provisions of ORS 708A.470 as to
rights of survivorship are determined by the form of the account at the
death of a party. Subject to satisfaction of the requirements of the
financial institution, the form of an account may be altered by written
order given by a party to the financial institution. The order must be
signed by a party, received by the financial institution during the
party’s lifetime, and not countermanded by other written order of the
same party during the lifetime of the party. [1997 c.631 §176]Any transfers resulting from the
application of ORS 708A.470 are effective by reason of the account
contracts involved and ORS 708A.470, and are not to be considered as
testamentary or subject to administration in the estate of a deceased
party. [1997 c.631 §177]Financial institutions may enter into multiple-party
accounts to the same extent that they may enter into single-party
accounts. Any multiple-party account may be paid, on request, to any one
or more of the parties. A financial institution shall not be required to
inquire as to the source of funds received for deposit to a
multiple-party account, or to inquire as to the proposed application of
any sum withdrawn from an account, for purposes of establishing net
contributions. [1997 c.631 §178]Any sums in a joint account may be paid, on request, to any party
without regard to whether any other party is incapacitated or deceased at
the time the payment is demanded. Payment may not be made to the personal
representative or heirs of a deceased party unless proofs of death are
presented to the financial institution showing that the decedent was the
last surviving party or unless there is no right of survivorship under
ORS 708A.470. [1997 c.631 §179] account; payment to any original party; payment to
others. Any P.O.D. account may be paid, on request, to any original party
to the account. Payment may be made, on request, to the P.O.D. payee or
to the personal representative or heirs of a deceased P.O.D. payee upon
presentation to the financial institution of proof of death showing that
the P.O.D. payee survived all persons named as original parties. Payment
may be made to the personal representative or heirs of a deceased
original party if proof of death is presented to the financial
institution showing that the decedent was the survivor of all other
persons named on the account either as an original party or as P.O.D.
payee. [1997 c.631 §180]
Any trust account may be paid, on request, to any trustee. Unless the
financial institution has received written notice that the beneficiary
has a vested interest not dependent upon the beneficiary’s surviving the
trustee, payment may be made to the personal representative or heirs of a
deceased trustee if proof of death is presented to the financial
institution showing that the decedent was the survivor of all other
persons named on the account either as trustee or beneficiary. Payment
may be made, on request, to the beneficiary upon presentation to the
financial institution of proof of death showing that the beneficiary or
beneficiaries survived all persons named as trustees. [1997 c.631 §181]Payment made pursuant to ORS 708A.485, 708A.490, 708A.495 or
708A.500 discharges the financial institution from all claims for amounts
so paid whether or not the payment is consistent with the beneficial
ownership of the account as between parties, P.O.D. payees or
beneficiaries, or their successors. The protection given by this section
does not extend to payments made after a financial institution has
received written notice from any party able to request present payment to
the effect that withdrawals in accordance with the terms of the account
should not be permitted. Unless the notice is withdrawn by the person
giving it, the successor of any deceased party must concur in any demand
for withdrawal if the financial institution is to be protected under this
section. No other notice or any other information shown to have been
available to a financial institution shall affect its right to the
protection provided by this section. The protection provided by this
section shall have no bearing on the rights of parties in disputes
between themselves or their successors concerning the beneficial
ownership of funds in, or withdrawn from, multiple-party accounts. [1997
c.631 §182] Without qualifying
any other statutory or common law right to setoff or lien and subject to
any contractual provision, if a party to a multiple-party account is
indebted to a financial institution, the financial institution has a
right to setoff against the account in which the party has or had
immediately before the death of the party a present right of withdrawal.
The amount of the account subject to setoff is that proportion to which
the debtor is, or was immediately before the death of the debtor,
beneficially entitled and, in the absence of proof of net contributions,
to an equal share with all parties having present rights of withdrawal.
[1997 c.631 §183] Nothing
in ORS 708A.455 to 708A.465, 716.024, 723.426 or 723.432 shall preclude a
party to an account from adding the name of another person to such an
account with the designation “agent.” Such agent shall have no present or
future interest in the sums on deposit in such account, but the financial
institution may honor requests for payment from such account by such
agent, unless the principal is deceased at the time the payment is
requested and the financial institution has actual knowledge of such
death. Payments from such account by such financial institution at the
request of such agent shall discharge such financial institution from all
claims for amounts so paid. [1997 c.631 §184]GRANTING SECURITY INTERESTS IN INSTITUTION ASSETS (1) An
institution may only grant security interests in its assets:
(a) To secure its indebtedness to a Federal Reserve Bank or Federal
Home Loan Bank.
(b) To secure its borrowings from others with a maturity of 90 days
or less, provided the value of the assets pledged shall not be more than
50 percent greater than the amount borrowed. If the value of the assets
pledged is more than 25 percent greater than the amount borrowed or if
the amount borrowed is greater than the stockholders’ equity of the bank,
the transaction shall first be approved in writing by the Director of the
Department of Consumer and Business Services.
(c) To secure its deposits that are not insured by the Federal
Deposit Insurance Corporation provided:
(A) The value of aggregate assets pledged does not exceed 20
percent of its stockholders’ equity; and
(B) The prior written approval of the director is obtained.
(d) To secure public funds, trust funds awaiting investment or
distribution, or trust funds deposited with it by an institution.
(2) Notwithstanding any other provision of state law, when an
institution grants a security interest in assets to secure public funds,
the depositor of the public funds and any bailee of pledged securities or
other assets shall be entitled to the status of a lien creditor as
defined in ORS 79.0102.
(3) An institution shall grant a security interest in its assets
only when authorized by a general or specific prior resolution or its
board of directors.
(4) As used in this section, “public funds” means deposits
belonging to:
(a) The State of Oregon that may be deposited to the official
credit of the State Treasurer, and funds that may be deposited in an
official capacity by any state officer, board or commission.
(b) Any county within this state deposited to the official credit
of the county treasurer, including the funds of any irrigation or
drainage district organized under the laws of this state, or any school
district within this state where funds of the school district are
deposited with the county treasurer, and funds that may be deposited in
an official capacity by any county officer.
(c) Any port, port commission, dock or dock commission within this
state that may be deposited to the credit of the port, port commission,
dock or dock commission, or the treasurer thereof.
(d) Any city within this state deposited to the official credit of
the city treasurer, and funds that may be deposited in an official
capacity by any officer of any municipal corporation.
(e) Any school district within this state.
(f) Any district organized under the laws of this state with the
power to levy taxes.
(g) Any housing authority organized and operating pursuant to ORS
456.055 to 456.235.
(h) The United States and any of its agencies and instrumentalities
to be deposited in the manner and under the rules prescribed by the
United States Government. [1997 c.631 §185; 2001 c.445 §180]Note: For transition provisions regarding secured transactions, see
notes under 79.0628.REGULATORY ACCOUNTING Except as
otherwise provided in the Bank Act or other applicable law, institutions
shall keep books and records in accordance with generally accepted
accounting principles consistently applied. [1997 c.631 §186]
(1) Real estate, furniture, fixtures, vaults and safe deposit boxes
necessary or convenient for the operation of an institution’s business
shall be carried on the books of the institution in an amount not to
exceed 50 percent of its capital, as defined in ORS 708A.290.
(2) Within guidelines established by rules promulgated under ORS
183.310, 183.315, 183.330, 183.335 and 183.341 to 183.410 the Director of
the Department of Consumer and Business Services may authorize an
institution to exceed the limitations prescribed in this section.
(3) Personal property acquired for lease to others in accordance
with ORS 708A.180 is not subject to the limitations of this section.
[1997 c.631 §187] Investments in stock of a company that
engages in activities in which a financial holding company, a bank
holding company or a nonbanking subsidiary of a financial holding company
or bank holding company could engage under ORS 708A.120 (4) shall be
carried on the books of the institution at a value not exceeding 15
percent of the stockholders’ equity of the institution. [1997 c.631 §188;
1999 c.59 §217; 2001 c.377 §49] Investments in
community development corporations under ORS 708A.150 must be accounted
for on an institution’s books as “other assets.” If the community
development corporation is organized under the Oregon Nonprofit
Corporation Law, the stock of the corporation purchased by the
institution, or the institution’s membership in the corporation if it
does not issue stock, shall be carried on the books of the institution at
a value not exceeding $1. [1997 c.631 §189] Investments in a corporation
engaged in the business of purchasing the stock of an institution for
purposes of holding and making a market for that stock shall be carried
on the books of the institution at a value not exceeding $1. [1997 c.631
§190] (1) The aggregate
amount of stock of a corporation acquired under ORS 708A.125 for the
purpose of strengthening the institution’s capital or eliminating
undesirable assets shall not be carried on the books in excess of 20
percent of the institution’s capital.
(2) The book value of the stock shall be amortized by not less than
five percent of its original book value each year. [1997 c.631 §191] Claims against the estates
of insolvent persons or deceased or incompetent persons and judgments
against any person shall not be carried as an asset upon the books of an
institution for more than two years, unless a written extension of time
is granted by the Director of the Department of Consumer and Business
Services. This section does not apply to loans made to the personal
representative, guardian or trustee of any estate. [1997 c.631 §192] (1) An institution that
owns or holds any real estate other than as permitted in the Bank Act
shall immediately charge the book value of real estate to profit and loss
or otherwise remove the real estate from its books.
(2) All real estate owned or held by an institution in accordance
with ORS 708A.175 (3) or (4) shall be reduced in book value by not less
than five percent of its original book value per year commencing the year
title is vested and continuing until the earlier of the year the real
estate is disposed of or the expiration of the period such real estate
may be owned or held under ORS 708A.195. Upon the expiration of the
period such real estate may be owned or held under ORS 708A.195, the
remaining book value shall be charged off. [1997 c.631 §193] Goods and chattels
owned by an institution on account of the collection of its debts shall
not be carried on the books of an institution for more than two years
after the property was acquired, unless such period is extended by the
Director of the Department of Consumer and Business Services. [1997 c.631
§194] An institution shall charge off
all debts:
(1) On which interest is past due and unpaid for 12 months, unless
the debt is fully secured and in process of collection;
(2) That are classified by an examiner as a bad debt; or
(3) Upon the instruction of the Director of the Department of
Consumer and Business Services. [1997 c.631 §195] An institution
shall maintain the accounts of each foreign branch independently of the
accounts of other foreign branches established by it and of its home
office. At the end of each year, the profit or loss accrued at each
branch shall be transferred to the general ledger as a separate item.
[1997 c.631 §196]MISCELLANEOUS PROVISIONSAny officer, director or
employee of an institution who knowingly or negligently loans the funds
of the institution in a dishonest or unlawful manner or permits the funds
of the institution to be so loaned, is liable for the full amount of the
loan and for all damages that the institution, its stockholders or any
other person has sustained in consequence thereof. The liability for the
loan continues until the loan, with interest, is paid in full without
loss to the institution. The amount of the liability may be collected by
suit or action without first attempting to collect from the debtor. [1997
c.631 §197a]Institutions shall develop written
policies regarding the types of matters that shall be reported to and
approved by the institution’s board of directors. An officer, director or
employee of an institution shall not conceal from or fail to report to
the board of directors of the institution any such matter. [1997 c.631
§198](1) An officer, director, agent or employee of an institution
shall not ask for, receive or agree to receive any money, property or
thing of value or of personal advantage, for:
(a) Procuring or endeavoring to procure for any person any loan
from, or the purchase or discount of any paper, note, draft, check or
bill of exchange by, the institution.
(b) Permitting any person to overdraw any account with the
institution.
(2) An officer, director, stockholder, employee or agent of an
institution shall not abstract or willfully misapply any of the property
of the institution, or willfully misapply its credit. [1997 c.631 §199] An officer, director or
employee of an institution shall not make or deliver any guaranty or
indorsement on behalf of the institution whereby the institution becomes
liable upon any of its discounted notes, bills or obligations, in any sum
beyond the amount of loans and discounts that the institution may legally
make. [1997 c.631 §200] (1) As used in this section:
(a) “Bank” includes any banking institution, out-of-state state
bank, national bank or extranational institution doing a banking business
in this state.
(b) “Banking day” means any day that is not an optional bank
holiday.
(c) “Emergency” means any condition or occurrence which may
interfere with the conduct of normal business operations at one or more
of the offices of a bank, or which poses an imminent or existing threat
to the safety or security of persons or property.
(d) “Open for the general conduct of banking business” means the
office or offices of a bank are open to the public for carrying on
substantially all business functions of the bank.
(e) “Optional bank holiday” means:
(A) Each Saturday and Sunday.
(B) New Year’s Day on January 1.
(C) Martin Luther King, Jr.’s birthday on the third Monday in
January.
(D) Presidents Day on the third Monday in February.
(E) Memorial Day on the last Monday in May.
(F) Independence Day on July 4.
(G) Labor Day on the first Monday in September.
(H) Columbus Day on the second Monday in October.
(I) Veterans Day on November 11.
(J) Thanksgiving Day on the fourth Thursday in November.
(K) Christmas Day on December 25.
(2) When an optional bank holiday, other than a Saturday, falls on
a Saturday, the bank may observe the holiday either on that day or on the
preceding Friday. When an optional bank holiday, other than a Sunday,
falls on a Sunday, the bank may observe the holiday either on that day or
on the succeeding Monday.
(3) Except as otherwise provided in this section, banks shall be
open for the general conduct of banking business on each banking day.
(4) Any bank may remain closed on any optional bank holiday with
respect to all or any of its banking and other functions.
(5) Subject to any applicable federal law or regulation, an office
of a bank may be closed for any part or all of a banking day if the times
or days which the office is open are posted on the premises of the office.
(6) When the Director of the Department of Consumer and Business
Services determines that an emergency exists, the director may authorize
the closing of the principal office or branch of any bank which may be
affected by the emergency. The office or branch so closed may remain
closed until the director determines that the emergency has ended and for
such further time thereafter as may reasonably be required to prepare the
office or branch to reopen.
(7) When the officers of a bank determine that an emergency exists
which affects the principal office or a branch of the bank, they may
close the office or branch without the approval of the director for a
period not to exceed 48 hours, excluding holidays, during the
continuation of the emergency. A bank closing an office or branch under
this subsection shall give prompt notice of its action to the director,
or in the case of a national bank, to the Comptroller of the Currency.
(8) The principal officers of a bank may close the principal office
or any branch of the bank on any day designated, by proclamation of the
President of the United States or the Governor of this state, as a day of
mourning, rejoicing, or other special observance.
(9) When any obligation payable at, by or through a bank falls due
on a day on which the bank remains closed under this section, it shall be
due and payable on the next banking day on which the bank is open. Any
act authorized, required or permitted to be performed at, by or with
respect to any bank on a day on which the bank remains closed may be
performed on the next banking day on which the bank is open, and no
liability or loss of rights of any kind shall result from the closing.
[1997 c.631 §1c; 1999 c.59 §218](1) This
section applies to the safe deposit box of any person who is the sole
lessee or last surviving lessee of the box and who has died.
(2) Upon being furnished with a certified copy of the decedent’s
death certificate or other evidence of death satisfactory to the Oregon
operating institution, the Oregon operating institution within which the
box is located shall cause or permit the box to be opened and the
contents of the box examined at the request of an individual who
furnishes an affidavit stating:
(a) That the individual believes the box may contain the will of
the decedent, a trust instrument creating a trust of which the decedent
was a trustor or a trustee at the time of the decedent’s death, documents
pertaining to the disposition of the remains of the decedent, documents
pertaining to property of the estate of the decedent or property of the
estate of the decedent; and
(b) That the individual is an interested person as defined in this
section and wishes to open the box to conduct a will search or trust
instrument search, obtain documents relating to the disposition of the
decedent’s remains or inventory the contents of the box.
(3) For the purpose of this section, “interested person” means any
of the following:
(a) A person named as personal representative of the decedent in a
purported will of the decedent;
(b) The surviving spouse or any heir of the decedent;
(c) A person who was serving as the court-appointed guardian or
conservator of the decedent or as trustee for the decedent immediately
prior to the decedent’s death;
(d) A person named as successor trustee in a purported trust
instrument creating a trust of which the decedent was a trustor or a
trustee at the time of the decedent’s death;
(e) A person designated by the decedent in a writing that is
acceptable to the Oregon operating institution and is filed with it prior
to the decedent’s death;
(f) A person who immediately prior to the death of the decedent had
the right of access to the box as an agent of the decedent under a
durable power of attorney; or
(g) If there are no heirs of the decedent, an estate administrator
of the Department of State Lands appointed under ORS 113.235.
(4) If the box is opened for the purpose of conducting a will
search, the Oregon operating institution shall remove any document that
appears to be a will, make a true and correct copy of it and deliver the
original will to a person designated in the will to serve as the
decedent’s personal representative, or if no such person is designated or
the Oregon operating institution cannot, despite reasonable efforts,
determine the whereabouts of such person, the Oregon operating
institution shall retain the will or deliver it to a court having
jurisdiction of the estate of the decedent. A copy of the will shall be
retained in the box. At the request of the interested person, a copy of
the will, together with copies of any documents pertaining to the
disposition of the remains of the decedent, may be given to the
interested person.
(5) If the box is opened for the purpose of conducting a trust
instrument search, the Oregon operating institution shall remove any
document that appears to be a trust instrument creating a trust of which
the decedent was a trustor or trustee at the time of the decedent’s
death, make a true and correct copy of it and deliver the original trust
instrument to a person designated in the trust instrument to serve as the
successor trustee on the death of the decedent. If no such person is
designated or the Oregon operating institution cannot, despite reasonable
efforts, determine the whereabouts of such person, the Oregon operating
institution shall retain the trust instrument. A copy of the trust
instrument shall be retained in the box. At the request of any interested
person, a copy of the trust instrument may be given to the interested
person.
(6) If the box is opened for the purpose of obtaining documents
pertaining to the disposition of the decedent’s remains, the Oregon
operating institution shall comply with subsection (4) of this section
with respect to any will of the decedent found in the box, and may in its
discretion either:
(a) Make and retain in the box a copy of any documents pertaining
to the disposition of the remains of the decedent and tender the original
documents to the interested person; or
(b) Provide a copy of any documents pertaining to the disposition
of the remains of the decedent to the interested person and retain the
original documents in the box.
(7) If the box is opened for the purpose of making an inventory of
its contents, the Oregon operating institution shall comply with
subsection (4) or (5) of this section with respect to any will or trust
instrument of the decedent that is found in the box, and shall cause the
inventory to be made. The inventory shall be attested to by a
representative of the Oregon operating institution and may be attested to
by the interested person, if the interested person is present when the
inventory is made. The Oregon operating institution shall retain the
original inventory in the box, and shall furnish a copy of the inventory
to the interested person upon request.
(8) The Oregon operating institution may presume the truth of any
statement contained in the affidavit required to be furnished under this
section, and when acting in reliance upon such an affidavit, the Oregon
operating institution is discharged as if it had dealt with the personal
representative of the decedent. The Oregon operating institution is not
responsible for the adequacy of the description of any property included
in an inventory of the contents of a box, or for the conversion of the
property in connection with actions performed under this section, except
for conversion by intentional acts of the Oregon operating institution or
its employees, directors, officers or agents. If the Oregon operating
institution is not satisfied that the requirements of this section have
been satisfied, the Oregon operating institution may decline to open the
box.
(9) If the interested person does not furnish the key needed to
open the box, and the Oregon operating institution must incur expense in
gaining entry to the box, the Oregon operating institution may require
that the interested person pay the expense of opening the box.
(10) Any examination of the contents of a box under this section
shall be conducted in the presence of at least one employee of the Oregon
operating institution. [1999 c.506 §2; 2001 c.10 §1; 2003 c.395 §21]PENALTIES (1) An institution that violates:
(a) ORS 708A.560 shall forfeit a civil penalty in an amount
determined by the Director of the Department of Consumer and Business
Services of not more than $50,000.
(b) ORS 708A.420 shall forfeit a civil penalty in an amount
determined by the director of not more than $10,000. In addition, the
director may revoke the charter of the violating institution.
(2) All money forfeited under subsections (1) and (2) of this
section shall be paid to the State Treasurer to be deposited in the
Consumer and Business Services Fund.
(3) The civil penalty may be recovered as provided in ORS 706.980.
[1997 c.631 §201] Violation knowingly of any of the
provisions of ORS 708A.635 is a Class C felony. [1997 c.631 §202]
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