USA Statutes : oregon
Title : TITLE 53 FINANCIAL INSTITUTIONS
Chapter : Chapter 706 Administration and Enforcement of Banking Laws Generally
As used in the Bank Act, unless
the context requires otherwise:

(1) “Access area” means any paved walkway or sidewalk within 50
feet of an automated teller machine or night deposit facility. “Access
area” does not include publicly maintained sidewalks or roads.

(2) “Access device” means:

(a) An “access device” as defined in Federal Reserve Board
Regulation E (12 C.F.R. Part 205) adopted under the Electronic Fund
Transfer Act (15 U.S.C. 1601, et seq.); or

(b) A key or other mechanism issued by a financial institution to a
customer to give the customer access to the institution’s or bank’s night
deposit facility.

(3) “Acquisition transaction” means:

(a) The sale and purchase of all or substantially all of the assets
of a bank that is not in the ordinary course of business of such bank; or

(b) The transfer and assumption of all or substantially all of the
liabilities of a bank.

(4) “Automated teller machine” or “ATM” means any electronic
information processing device located in this state that:

(a) Accepts or dispenses cash in connection with a credit, deposit
or convenience account, provides information and initiates transactions
in accordance with the request or instruction of a customer or the
customer’s agent; and

(b) Is unstaffed except for persons installing the device,
providing security or providing periodic servicing, maintenance or
repair. The term does not include devices used solely to facilitate check
guarantees or check authorizations, or used in connection with the
acceptance or dispensing of cash on a person to person basis, such as by
a store cashier.

(5) “Bank Act” means ORS chapters 706 to 716.

(6) “Banking business” or “business of banking” means the business
of receiving or accepting money or its equivalent on deposit as a regular
business whether the deposit is made subject to check or is evidenced by
a certificate of deposit, a pass book or other writing or evidence, but
does not include:

(a) Depositing money or its equivalent in escrow or with an agent,
pending investments in real estate or securities for or on account of a
principal;

(b) The business of a savings and loan association or a credit
union;

(c) Deposits accepted in connection with the purchase or lease of
property or services; or

(d) Accepting deposits through an ATM or night deposit facility.

(7) “Banking day” has the meaning given that term in ORS 708A.650.

(8) “Branch” means an office or other place, except a principal
place of business or an ATM, at which:

(a) A bank engages in banking business; or

(b) A trust company transacts trust business.

(9) “Candlefoot power” means a light intensity of candles on a
horizontal plane at 36 inches above ground level and 5 feet in front of
the area to be measured.

(10) “Capital debentures” means capital notes, capital debentures
and any other form of unsecured obligations issued by an institution or
stock savings bank to evidence borrowings where the rights of the lender
are subordinate to the rights of the depositors.

(11)(a) “Defined parking area” means that portion of any parking
area opened for customer parking that is:

(A) Contiguous to the access area of an ATM or night deposit
facility;

(B) Regularly, principally and lawfully used for parking by users
of the ATM or night deposit facility while the users conduct transactions
during hours of darkness; and

(C) Owned or leased by the operator of the ATM or night deposit
facility or owned or controlled by the party leasing the ATM or night
deposit facility site to the operator.

(b) “Defined parking area” does not include any parking area that
is not open or regularly used for parking by users of the ATM or night
deposit facility who are conducting transactions during the hours of
darkness. A parking area is not open if it is physically closed to access
or if conspicuous signs indicate that it is closed. If a multiple level
parking area satisfies the conditions of paragraph (a) of this subsection
and would therefore otherwise be a defined parking area, only the single
parking level designated by the operator of the ATM and night deposit
facility to be the most directly accessible to the users of the ATM and
night deposit facility shall be a defined parking area.

(12) “Department” means the Department of Consumer and Business
Services.

(13) “Director” means the Director of the Department of Consumer
and Business Services.

(14) “Document of title” means document of title as defined in ORS
71.2010.

(15) “Federal Reserve Act” means the Act of Congress approved
December 23, 1913 (38 Stat. 251), as amended.

(16) “Federal Reserve Bank” means the Federal Reserve Banks created
and organized under the authority of the Federal Reserve Act.

(17) “Federal Reserve Board” means the Federal Reserve Board
created and described in the Federal Reserve Act.

(18) “Home state” means:

(a) With respect to a state bank, the state under the laws of which
the state bank is incorporated or otherwise organized;

(b) With respect to a federal bank, the state in which the main
office of the federal bank is located;

(c) With respect to an extranational institution, the state
determined to be the home state by election of the extranational
institution, or in default of such election, by the Board of Governors of
the Federal Reserve System; and

(d) With respect to a financial holding company or a bank holding
company, the state in which the total deposits of all banking
subsidiaries of such company are the largest on the date on which the
company becomes a financial holding company or a bank holding company.

(19) “Hours of darkness” means the period that commences 30 minutes
after sunset and ends 30 minutes before sunrise.

(20) “Loan production office” means a physical location in this
state at which representatives of a financial institution hold themselves
out to the public as providing loan origination services, leasing
services or services of a similar nature, but at which representatives of
the financial institution do not conduct banking business.

(21) “Merger” includes consolidation.

(22) “Night deposit facility” means a receptacle that is provided
by a financial institution for the use of the institution’s customers in
delivering cash, checks and other items to the financial institution.

(23) “Obligations” includes:

(a) The direct liability of the maker or acceptor of paper
discounted with or sold to an institution;

(b) The liability of the drawer, indorser or assignor;

(c) If obligations of a copartnership or association, the
obligations of the several members of the copartnership or association;

(d) If obligations of a corporation, the obligations of all
subsidiaries of the corporation in which the corporation owns or controls
50 percent or more of the capital stock; and

(e) The liability of a lessee under a lease.

(24) “Officer” of a banking institution means a chief executive
officer, president, any vice president, secretary, treasurer or cashier.

(25) “Operator” means any financial institution or other business
entity, or any person who operates an ATM or night deposit facility.

(26) “Paid-in capital” means the aggregate amount received by an
institution or stock savings bank from the issuance of its stock or
transferred from retained earnings.

(27) “Person” means an individual, corporation, limited liability
company, partnership, association, joint stock company, business trust or
unincorporated organization.

(28) “Stockholders’ equity” means the aggregate of paid-in capital
and retained earnings of an institution or Oregon stock savings bank.

(29) “Trust business” means:

(a) Acting as a trustee of a trust;

(b) Acting as a fiduciary, as defined in ORS 125.005;

(c) Acting as a personal representative, as defined in ORS 111.005;

(d) Acting as a receiver, trustee or assignee for the benefit of
creditors; or

(e) Acting in a court-appointed position of trust or any other
position of trust. [1973 c.797 §2; 1975 c.193 §1; 1975 c.725 §1; 1983
c.37 §1; 1985 c.12 §1; 1985 c.451 §1; 1985 c.627 §3; 1985 c.762 §16; 1987
c.373 §47; 1987 c.371 §1; 1987 c.445 §7; 1991 c.331 §109; 1993 c.229 §1;
1993 c.318 §6; 1993 c.744 §22; 1995 c.313 §1; 1997 c.631 §1; 1999 c.107
§1; 2001 c.377 §45; 2005 c.348 §123] As used in the Bank
Act, unless the context requires otherwise:

(1) “Bank” means a company, other than an extranational
institution, that accepts deposits insured to any extent by the Bank
Insurance Fund under the provisions of the Federal Deposit Insurance Act,
as amended, 12 U.S.C. 1811, et seq.

(2) “Bank holding company” means any company that is a bank holding
company under the federal Bank Holding Company Act of 1956, as amended,
12 U.S.C. 1841, et seq.

(3) “Bank service corporation” means a corporation, all of the
capital stock of which is owned by one or more banking institutions or
national banks, that is organized to perform services authorized by ORS
708A.145.

(4) “Banking institution” means an Oregon commercial bank, an
Oregon trust company or an Oregon savings bank.

(5) “Company” means an entity that is a company under the federal
Bank Holding Company Act of 1956, as amended, 12 U.S.C. 1841, et seq.

(6) “Extranational institution” means a corporation, unincorporated
company, partnership or association of two or more persons organized
under the laws of a nation other than the United States, any territory of
the United States, Puerto Rico, Guam, American Samoa or the Virgin
Islands, that engages directly in a banking business.

(7) “Federal bank” means a national bank or any other bank
organized under the laws of the United States.

(8) “Federal savings bank” means a corporation chartered as a
federal savings bank under the provisions of 12 U.S.C. 1464.

(9) “Financial holding company” means a company as referred to in
section 103 of the federal Gramm-Leach-Bliley Act (P.L. 106-102).

(10) “Financial institution” means insured institutions,
extranational institutions, credit unions as defined in ORS 723.006,
out-of-state credit unions under ORS 723.042 and federal credit unions.

(11) “In-state federal stock bank” means a federal bank that issues
capital stock, the home state of which is Oregon.

(12) “Institution” means an Oregon commercial bank or an Oregon
trust company.

(13) “Insured institution” means a company, the deposits of which
are insured under the provisions of the Federal Deposit Insurance Act, as
amended, 12 U.S.C. 1811, et seq.

(14) “Insured nonstock institution” means an insured institution
that does not issue capital stock.

(15) “Insured stock institution” means an insured institution that
issues capital stock.

(16) “National bank” means a bank that was organized under the
provisions of the National Bank Act, as amended, 12 U.S.C. 21, et seq.

(17) “Non-Oregon institution” means:

(a) An out-of-state state bank engaging in banking business in
Oregon;

(b) An out-of-state trust company transacting trust business in
Oregon; and

(c) An extranational institution engaging in banking business in
Oregon.

(18) “Nonstock bank” means a bank that does not issue capital stock.

(19) “Oregon bank” means an Oregon stock bank or Oregon nonstock
bank.

(20) “Oregon commercial bank” means an Oregon stock bank that was
chartered under ORS chapter 707 as a bank other than a stock savings bank.

(21) “Oregon nonstock bank” means a state nonstock bank, the home
state of which is Oregon.

(22) “Oregon operating institution” means:

(a) A bank that is engaging in banking business in this state;

(b) An extranational institution that is engaging in banking
business in this state; or

(c) A trust company that is transacting trust business in this
state.

(23) “Oregon savings bank” or “savings bank” means an Oregon stock
savings bank or an Oregon nonstock bank.

(24) “Oregon stock bank” means a state stock bank, the home state
of which is Oregon.

(25) “Oregon stock savings bank” means an Oregon stock bank that
was initially chartered as or was converted to a stock savings bank under
the Bank Act.

(26) “Oregon trust company” means a trust company that was
organized under the provisions of ORS chapter 707.

(27) “Out-of-state bank” means an out-of-state state bank or an
out-of-state federal bank.

(28) “Out-of-state bank holding company” means a bank holding
company whose home state is not Oregon, and that is not the bank holding
company of an Oregon stock bank or an in-state federal stock bank.

(29) “Out-of-state federal bank” means a federal bank, the home
state of which is a state other than Oregon.

(30) “Out-of-state financial holding company” means a financial
holding company whose home state is not Oregon, and that is not the
financial holding company of an Oregon stock bank or an in-state federal
stock bank.

(31) “Out-of-state state bank” means a state bank, the home state
of which is a state other than Oregon.

(32) “Out-of-state trust company” means a trust company that was
organized under the laws of another state.

(33) “State bank” means a bank that was organized under the laws of
a state.

(34) “State nonstock bank” means a nonstock bank that was organized
under the laws of a state.

(35) “State stock bank” means a stock bank that was organized under
the laws of a state.

(36) “Stock bank” means a bank that issues capital stock.

(37) “Trust company” means any company that is authorized under the
provisions of ORS chapter 709 to transact trust business, and includes
the trust department of a bank, but does not include a corporation
appointed by a United States Bankruptcy Court to serve as a bankruptcy
trustee under Title 11, United States Code, when the corporation is
acting in its capacity as a bankruptcy trustee. [1997 c.631 §3; 2001
c.377 §29]References in the Bank Act to federal statutes and regulations
shall, except as otherwise provided in the Bank Act, be construed to
refer to the statutes or regulations as they are in effect on January 1,
2002. The Director of the Department of Consumer and Business Services
may adopt rules providing that one or more of the federal statutes and
regulations shall be construed to refer to the statutes and regulations
as they are in effect on a later date. [1997 c.631 §28; 1999 c.107 §1a;
2001 c.377 §56]SUPERVISION OF BANKING INSTITUTIONS(1) Each
banking institution is subject to the inspection of the Director of the
Department of Consumer and Business Services. The director shall conduct
an examination of the condition and resources of each banking
institution, and determine whether the banking institution is complying
with the laws of this state and such other matters as the director may
prescribe. Except as provided in subsections (3) and (5) of this section,
the examinations shall be conducted not more than 24 months apart.

(2) Subject to ORS 706.515, the director shall have the power at
any time in the discretion of the director to examine every branch of a
non-Oregon institution located in this state, for the same purposes and
to the same extent as provided in the case of banking institutions.

(3) The director may participate in any program offered by the
Federal Deposit Insurance Corporation or the Federal Reserve Board that
provides for joint or alternate examinations of banking institutions and
non-Oregon institutions by the director and the Federal Deposit Insurance
Corporation or the Federal Reserve Board.

(4) In addition to the examinations under subsection (1), (2) or
(3) of this section, the director may conduct examinations of a banking
institution at any other time.

(5) Instead of making an examination of a banking institution or
non-Oregon institution under subsection (1), (2) or (3) of this section,
the director may accept an examination or report made under the Federal
Reserve Act or under other statutes of the United States authorizing
insurance of deposits. [Amended by 1973 c.797 §22; 1981 c.192 §4; 1985
c.786 §7; 1997 c.631 §3a](1)
The Director of the Department of Consumer and Business Services may
enter into cooperative, coordinating and information sharing agreements
with any other bank supervisory agencies or any organization affiliated
with or representing one or more bank supervisory agencies with respect
to the periodic examination or other supervision of any branch or other
office or place of business in this state of any non-Oregon institution,
or any branch of a banking institution located in any other state. The
director may accept such supervisory agencies’ reports of examination and
reports of investigation in lieu of conducting the director’s own
examinations or investigations. The agreement may resolve conflicts of
laws and specify the manner in which examination, supervision and
application processes shall be coordinated between this state and the
home state of the non-Oregon institution.

(2) The director may enter into contracts with any bank supervisory
agency that has concurrent jurisdiction over a banking institution or
non-Oregon institution operating a branch or other office or place of
business in this state, to engage the services of such agency’s examiners
at a reasonable rate of compensation, or to provide the services of the
director’s examiners to such agency at a reasonable rate of compensation.
Any such contract shall be deemed exempt from competitive bidding
requirements under the provisions of ORS 279.835 to 279.855 and ORS
chapters 279A and 279B. The contract may resolve conflicts of laws and
specify the manner in which examination, supervision and application
processes shall be coordinated between this state and the home state of
the non-Oregon institution.

(3) The director may enter into joint examinations or joint
enforcement actions with other bank supervisory agencies having
concurrent jurisdiction over any branch or other office or place of
business in this state of a non-Oregon institution, or any branch of a
banking institution located in any other state, provided that the
director may at any time take such actions independently if the director
deems such actions to be necessary or appropriate to carry out the
director’s responsibilities or to ensure compliance with the laws of this
state, but provided further, that in the case of a non-Oregon
institution, the director shall recognize:

(a) The exclusive authority of the banking supervisory agency of
the home state or country of the non-Oregon institution over corporate
governance matters; and

(b) The primary responsibility of the banking supervisory agency of
the home state or country of the non-Oregon institution over safety and
soundness matters.

(4) Any fees collected by the director from non-Oregon institutions
under the provisions of the Bank Act may be shared with other bank
supervisory agencies or any organization affiliated with or representing
one or more bank supervisory agencies in accordance with agreements
between such parties and the director. [1997 c.631 §27; 2003 c.794 §323]When requested in writing by the board of directors of a banking
institution or stockholders owning a majority of the capital stock of an
institution or an Oregon stock savings bank, the Director of the
Department of Consumer and Business Services may make or cause to be made
an examination into the affairs and conditions of the banking institution
or Oregon stock savings bank. The banking institution or Oregon stock
savings bank shall pay the actual costs of the examination as provided in
ORS 706.544. [Amended by 1973 c.797 §23; 1985 c.762 §26; 1985 c.786 §8;
1997 c.631 §4; 1999 c.59 §214]Each banking institution and each non-Oregon institution
shall pay each year to the Director of the Department of Consumer and
Business Services the fee determined by reference to the schedule adopted
by the director under ORS 705.620. The fee shall be paid by the date set
by the director in the rule establishing the schedule. [Amended by 1969
c.94 §1; 1971 c.68 §1; 1973 c.797 §24; 1977 c.135 §8; 1985 c.762 §27a;
1985 c.786 §9; 1987 c.171 §3; 1987 c.373 §48; 1993 c.229 §3; 1993 c.264
§4; 1997 c.631 §5] A
banking institution or a non-Oregon institution shall pay to the Director
of the Department of Consumer and Business Services the actual costs of
the Department of Consumer and Business Services, as determined by the
director, for conducting any special examination or taking any action
under ORS 706.600. [1973 c.797 §25a; 1977 c.135 §10; 1985 c.762 §30a;
1985 c.786 §11; 1997 c.631 §6] (1) When a banking
institution or a non-Oregon institution has been examined by an examiner
and the examiner finds securities that are of doubtful value, the
examiner shall report the same to the Director of the Department of
Consumer and Business Services, who may, at the expense of the banking
institution or non-Oregon institution, investigate and appraise the
securities.

(2) The director may, in the discretion of the director or whenever
requested to do so by a banking institution or non-Oregon institution,
make an audit of the affairs of the banking institution or non-Oregon
institution. The Department of Consumer and Business Services shall be
reimbursed by the banking institution or non-Oregon institution for all
costs incurred by the department in conducting the audit. [Amended by
1973 c.797 §29; 1997 c.631 §7](1) If upon examination
of a banking institution or non-Oregon institution it appears that the
banking institution or non-Oregon institution does not keep books and
accounts in such a manner as to enable the Director of the Department of
Consumer and Business Services to readily ascertain the true condition of
the banking institution or non-Oregon institution, the Director of the
Department of Consumer and Business Services may require any officer of
the banking institution or non-Oregon institution to open and keep books
or accounts as the director prescribes.

(2) If a banking institution or non-Oregon institution fails to
open and keep the books and accounts prescribed by the director, the
director shall send written notice to the banking institution or
non-Oregon institution of intent to assess and collect the penalty under
this subsection. For each day the banking institution or non-Oregon
institution fails to open and keep the books and accounts after receiving
notice from the director, the banking institution or non-Oregon
institution is subject to a penalty of $1,000. The penalty shall be paid
by the banking institution or non-Oregon institution when it receives a
notice and demand for the amount of the penalty from the director. If the
banking institution or non-Oregon institution delays or refuses to pay
the penalty upon demand, the penalty shall be recovered in the name of
the director in an action brought by the Attorney General. All sums
collected for penalties imposed by this section shall be paid into the
Consumer and Business Services Fund created by ORS 705.145. [Amended by
1973 c.797 §30; 1985 c.762 §31; 1987 c.373 §50; 1997 c.631 §8](1) A certificate attached to a copy of a document filed by the
Director of the Department of Consumer and Business Services, bearing the
director’s signature, which may be in facsimile, is conclusive evidence
that the original document or a facsimile thereof is on file with the
office.

(2) All certificates issued by the director in accordance with the
provisions of this chapter and all copies of documents filed in the
office of the director in accordance with the provisions of this chapter,
when certified by the director, shall be taken and received in all
courts, public offices and official bodies as prima facie evidence of the
facts stated in the certificates or documents. A certificate by the
director, as to the existence or nonexistence of the facts relating to
financial institutions that would appear from the presence or absence of
documents filed in the office of the director or the compliance or
noncompliance with provisions of this chapter, shall be taken and
received in all courts, public offices and official bodies as prima facie
evidence of the existence or nonexistence of the facts stated in the
certificates or documents. [1989 c.324 §2; 1997 c.631 §9]When it appears to the Director of the Department of Consumer
and Business Services that a banking institution or non-Oregon
institution is violating any law or duly issued order of the director, is
conducting its business in an unsafe or unauthorized manner, or has
refused to submit its records for inspection by an examiner or
examination by the Department of Consumer and Business Services:

(1) The director may:

(a) Notify the appropriate bank supervisory agency, with respect to
such banking institution or non-Oregon institution, of the director’s
determination and the facts and circumstances on which such determination
is based;

(b) Provide the banking institution or non-Oregon institution with
a statement of the charges on the basis of which the determination was
made that the banking institution or non-Oregon institution is violating
the law or conducting its business in an unsafe or unauthorized manner;

(c) Notify the banking institution or non-Oregon institution of the
date and place of a hearing before the director, or any person designated
by the director, with respect to the charges against the banking
institution or non-Oregon institution; and

(d) Conduct a hearing pursuant to the notice given to the banking
institution or non-Oregon institution under subsection (1)(c) of this
section, and make findings with respect to each of the charges specified
in the notice to the banking institution or non-Oregon institution.

(2) The director may:

(a) By an order in writing:

(A) Direct the discontinuance of the illegal, unsafe or
unauthorized practices; and

(B) Direct the banking institution or non-Oregon institution to
take affirmative action to correct or remedy any conditions resulting
from the illegal, unsafe or unauthorized practice;

(b) Apply for and obtain an injunction or other appropriate order
from a court having jurisdiction over the matter, enforcing the
director’s order issued under subsection (2)(a) of this section;

(c) Publish notice of any order issued by the director pursuant to
subsection (2)(a) of this section; and

(d) Suspend or revoke the authority of a non-Oregon institution to
open, occupy or maintain a branch or branches in this state. [Amended by
1973 c.797 §31; 1997 c.631 §10](1) The Director of the Department
of Consumer and Business Services may take one or more of the actions
described in this section to protect the interest of the creditors and
depositors of a banking institution or non-Oregon institution if any of
the following occurs:

(a) It is unsafe or inexpedient for the banking institution or
non-Oregon institution to continue to transact business.

(b) Extraordinary withdrawals of money are jeopardizing the
interests of remaining depositors.

(c) A director or officer has abused that person’s trust or has
been guilty of misconduct in an official position injurious to the
banking institution or non-Oregon institution.

(d) The banking institution or non-Oregon institution has suffered
a serious loss by fire, floods, burglary, disaster or otherwise.

(e) The banking institution or non-Oregon institution neglects or
refuses to observe an order of the director under ORS 706.580 or refuses
to submit to the inspection of an examiner.

(f) A director or officer refuses to be examined under oath
regarding the affairs of the banking institution or non-Oregon
institution.

(2) For purposes of subsection (1) of this section and subject to
subsection (5) of this section, the director may take any of the
following actions in regard to a banking institution:

(a) Take immediate possession and control of the property and
affairs of the banking institution.

(b) If the director has issued an order under ORS 706.580, enter
the banking institution to monitor and enforce implementation of the
order.

(c) Direct the sale of all or part of the banking institution’s
assets, or portions thereof, and the assumption of all or part of its
liabilities.

(d) Direct the conversion, reorganization or consolidation of the
banking institution, either with or without a merger.

(e) Direct the merger of the banking institution.

(f) Direct the sale of a banking institution.

(g) Direct the banking institution to develop and endeavor to
implement an acquisition plan, under which the banking institution will
acquire or be acquired by a national bank or banking institution, or a
state or federal savings association.

(h) Take any other action that the director determines is necessary
and expedient to facilitate the sale of the stock or assets of the
banking institution, or the sale, conversion, reorganization,
consolidation or merger of the banking institution.

(3) For purposes of subsection (1) of this section, and subject to
ORS 706.515, the director may take any one of the following actions in
regard to a non-Oregon institution:

(a) Take immediate possession and control of the property in this
state of the non-Oregon institution.

(b) If the director has issued an order under ORS 706.580, enter
the branches, offices or other places of business in this state of the
non-Oregon institution to monitor and enforce implementation of the order.

(c) Acting alone or in concert with another appropriate bank
supervisory agency, take any action authorized or permitted to be taken
under or pursuant to any agreement or contract between the director and
one or more bank supervisory agencies.

(4) Notwithstanding any other provision of law and pursuant to ORS
706.544, any actual costs incurred by the Department of Consumer and
Business Services under this section shall be paid by the banking
institution or non-Oregon institution to the director for deposit in the
Consumer and Business Services Fund. The moneys deposited in the Consumer
and Business Services Fund under this subsection shall not be considered
as a budget item on which a limitation is otherwise fixed by law, but
shall be in addition to any specific biennial appropriations or amounts
authorized to be expended from the Consumer and Business Services Fund
for any biennial period.

(5) Subsection (2)(c) to (h) of this section are available to the
director only when a banking institution is in immediate danger of
insolvency. [Amended by 1973 c.797 §32; 1985 c.786 §12; 1993 c.318 §7;
1997 c.631 §11]An examiner of the Department of Consumer and Business
Services, having knowledge of the insolvency or unsafe condition of an
Oregon operating institution shall report the fact in writing, over the
examiner’s signature, to the Director of the Department of Consumer and
Business Services. [Amended by 1973 c.797 §33; 1985 c.762 §32; 1997 c.631
§12] The Director of the Department of Consumer and
Business Services shall keep proper books showing the acts, matters and
things by the director done under the provisions of the Bank Act.
[Amended by 1973 c.797 §34](1) The Director of the Department of Consumer and
Business Services shall call for the report of condition of Oregon
operating institutions at the close of business on the same day on which
a report is required from national banks by the federal regulatory
agencies.

(2) The report of each Oregon operating institution required in
subsection (1) of this section shall:

(a) Show its assets and liabilities combined for all departments at
the close of business on the day specified.

(b) Be sworn to by an officer of the Oregon operating institution
making the report and attested by not less than two directors of the
Oregon operating institution.

(c) Exhibit in detail, and under appropriate heads, the total
liabilities and resources of the Oregon operating institution at the
close of business on the day specified.

(d) Be transmitted to the director within the time allowed by
federal regulations for submission of reports of national bank
associations to the federal regulatory agencies.

(3) The director may require additional reports of condition at any
time the director considers it necessary. The additional reports shall
meet the requirements of subsection (2) of this section.

(4) Trust companies not conducting a banking business are not
required to submit the reports required in subsection (1) of this
section, but shall submit reports as may be required by the director.
[Amended by 1973 c.797 §35; 1975 c.544 §3; 1975 c.725 §6a; 1977 c.135
§11; 1983 c.37 §2; 1989 c.269 §1; 1991 c.67 §188; 1997 c.631 §13]
If an Oregon operating institution delays or fails to furnish reports in
the manner required under ORS 706.630, the Oregon operating institution
is subject to a penalty of $250 a day for each day while in default. The
penalty shall be paid by the Oregon operating institution upon receiving
notice or demand for the amount of the penalty from the Director of the
Department of Consumer and Business Services. If the penalty is not paid
upon demand by the director, the director shall proceed to collect the
penalty in the manner prescribed by ORS 706.570 (2). If the director
determines that the default was unavoidable, the director may waive the
penalty. [Amended by 1973 c.797 §36; 1997 c.631 §14](1) Each banking institution shall submit to the Director of the
Department of Consumer and Business Services each calendar quarter a copy
of such records concerning extensions of credit by the banking
institution to its executive officers, directors and principal
shareholders, and the related interests of those persons, as are required
by rule of the director.

(2) The director may require a banking institution to file records
under subsection (1) of this section more often than quarterly, as the
director determines is necessary.

(3) The director shall adopt rules governing the submission of
records concerning extensions of credit, as required under subsections
(1) and (2) of this section, and the identification of the persons to
whom the extensions are made. The rules shall be consistent with
provisions of the Financial Institutions Regulatory and Interest Rate
Control Act of 1978 and regulations adopted by the Federal Reserve Board
and the Federal Deposit Insurance Corporation thereunder:

(a) In order that banking institutions may satisfy the requirements
of subsections (1) and (2) of this section by submitting copies of
records required to be maintained under such federal laws and
regulations; and

(b) In order to otherwise minimize the inconvenience to banking
institutions of having to maintain separate records for the federal
regulators and the director. [1985 c.786 §2] (1) Each banking
institution, non-Oregon institution and each branch in this state of
every extranational institution shall submit to the Director of the
Department of Consumer and Business Services a report of earnings and
dividends when called for by the director. The director shall call for a
report of earnings and dividends on the same day on which an earnings and
dividends report is required from national banks by the federal
regulatory agencies. The report shall be for a period designated by the
director in the call.

(2) The report shall be in the form prescribed by the director and
shall show all losses sustained, expenses and taxes paid, gross earnings
and profits, losses recovered since the last report, payments made by
stockholders and all amounts carried to surplus, undivided profits or
dividends paid.

(3) The director may require additional reports of earnings and
dividends at any time the director considers it necessary. The additional
reports shall meet the requirements of subsection (2) of this section.
[Amended by 1973 c.797 §37; 1979 c.88 §3; 1997 c.631 §15]
A banking institution, non-Oregon institution and any branch in this
state of an extranational institution that fails to make and submit any
report required by ORS 706.660 is subject to a penalty of $250 for each
day the reports are delayed beyond the time allowed by ORS 706.660. The
penalty shall be collected in the manner provided in ORS 706.570. If the
Director of the Department of Consumer and Business Services determines
that the default was unavoidable, the director may waive the penalty.
[Amended by 1973 c.797 §39; 1979 c.88 §4; 1997 c.631 §16](1) If the Director of the Department of Consumer
and Business Services determines that the condition of an institution or
Oregon stock savings bank is such that any transfer of the capital stock
of the institution or Oregon stock savings bank would jeopardize the
interest of its depositors, the director shall notify the institution or
Oregon stock savings bank in writing that when any shares of the capital
stock of the institution or Oregon stock savings bank are to be
transferred on the books or records of the institution or Oregon stock
savings bank, the officer proposing to make the transfer shall report in
writing to the director the proposed transfer of stock. A transfer of
stock shall not be made, after the date such a notice is issued, unless
the transfer agent first obtains the written consent of the director. The
director shall notify the institution or Oregon stock savings bank of the
director’s decision within 30 days after receiving the report.

(2) If a director or officer of an institution or Oregon stock
savings bank, a transfer agent, vendee or vendor has reason to believe
that a transfer of stock creates or changes a controlling interest in an
institution or Oregon stock savings bank, that person shall immediately
notify the director of the transfer. A transfer that creates a
controlling interest in, or changes the control of, an institution or
Oregon stock savings bank shall not be entered upon the books of the
institution or Oregon stock savings bank or become effective until:

(a) Notice has been received at the office of the director; and

(b) The sale, exchange or other disposition has been approved in
writing by the director.

(3) For purposes of this section, a controlling interest of an
institution or Oregon stock savings bank exists if a person, directly or
indirectly, acting through one or more other persons, owns or has power
to vote 25 percent or more of any class of voting stock of an institution
or Oregon stock savings bank or of a corporation that is or becomes a
financial holding company or a bank holding company as defined in ORS
706.008 unless:

(a) The stock of the institution or Oregon stock savings bank is
held in a fiduciary capacity and not for the benefit of the person or of
the stockholders, employees or members of the person; or

(b) The stock is acquired, not as a means of circumventing ORS
chapter 715, but by the person in the ordinary course of business to
secure or collect a debt previously contracted in good faith and the
person disposes of the stock within two years after the acquisition of
the stock. The director may extend the period if an extension will not be
detrimental to the public interest or in contravention of any other law.

(4) The director shall approve or disapprove the transfer in
accordance with the standards provided by ORS 707.080 (1). The director
also may disapprove a transfer under subsection (2) of this section if
any of the reasons stated by ORS 707.145 apply to the proposed new owner
of the shares.

(5) Notwithstanding subsections (2) to (4) of this section, if the
person acquiring a controlling interest in an institution or Oregon stock
savings bank is or will through such acquisition become a financial
holding company or a bank holding company, the provisions of ORS chapter
715 apply to the change in controlling interest in lieu of the provisions
of subsections (2) to (4) of this section. [Amended by 1973 c.797 §40;
1975 c.544 §4; 1977 c.135 §12; 1979 c.88 §5; 1985 c.12 §15; 1985 c.786
§13; 1997 c.631 §17; 2001 c.377 §46]A director, president or chief
executive officer of a banking institution who retires or resigns from
the position of director, president or chief executive officer shall give
30 days prior written notice to the Director of the Department of
Consumer and Business Services. [Amended by 1963 c.195 §1; 1973 c.797
§41; 1987 c.158 §150; 1995 c.316 §1]The Director of the Department of Consumer and Business
Services may, by writing, waive the notices provided for in ORS 706.690
and 706.700, or shorten the period after the notice when the resignation
or retirement becomes effective. [Amended by 1973 c.797 §42; 1975 c.544
§5; 1995 c.316 §2](1) The Director of the Department of
Consumer and Business Services shall receive and file in the Department
of Consumer and Business Services all reports required by the Bank Act.

(2) Except as provided in subsection (3) of this section and ORS
706.730, the records of the Department of Consumer and Business Services
pertaining to the administration of the Bank Act are available for public
inspection unless the director determines in the particular instance that
the public interest in disclosure of the records is outweighed by the
interests of an Oregon operating institution or its directors,
stockholders, officers, employees and customers in keeping the records
confidential, or that the records are exempt from disclosure under ORS
192.501 to 192.505. A determination by the director under this subsection
is subject to review under ORS 192.410 to 192.505.

(3) Except as provided in subsections (4) and (5) of this section,
the following records of the department are exempt from disclosure or
production and shall be treated as confidential as provided in ORS
705.137:

(a) Examination reports and work papers, directives, orders and
correspondence that relate to examination reports.

(b) Investigatory information concerning persons subject to
investigation by the director under ORS 707.070, 707.080, 707.110,
707.140, 707.145, 707.155 or 707.705 and financial statements of such
persons.

(c) Proprietary information.

(d) Reviews of financial statements submitted to the director.

(e) Reports filed under ORS 706.655.

(f) Stockholder lists.

(4) Notwithstanding subsection (3) of this section, the director
may disclose any record of the department specified in this subsection
pertaining to an Oregon operating institution that has been liquidated
under ORS 711.400 to 711.615 if the director determines in the particular
instance that the public interest in disclosure of the record outweighs
the interests of the Oregon operating institution or its directors,
stockholders, officers, employees or customers in keeping the record
confidential. Under no circumstances, however, shall the director
disclose any such record or portion thereof that contains any proprietary
information or any information relating to the individual financial
activities or affairs of persons unless the director concludes that those
activities or affairs were a direct and substantial contributing factor
in the failure of the Oregon operating institution. This subsection
applies to the following records of the department:

(a) Examination reports and work papers, directives, orders and
correspondence relating to examination reports;

(b) Investigatory information concerning persons subject to
investigation by the director under ORS 707.070, 707.080, 707.110,
707.140, 707.145, 707.155 or 707.705;

(c) Reviews of financial statements; and

(d) Reports filed under ORS 706.655.

(5) Notwithstanding ORS 40.270, an officer of the department may be
examined concerning records that are exempt from disclosure under
subsection (2) or (3) of this section and ORS 706.730 and the records are
subject to production if the court before which a civil or criminal
action is pending finds that such examination and production is essential
for establishing a claim or defense. In making a finding under this
subsection, if the court views the records, the court shall do so in
camera.

(6) A civil penalty imposed by the director under the Bank Act
shall become subject to public inspection after the 20th day after the
director imposes the civil penalty.

(7) All records of the department pertaining to the condition of
Oregon operating institutions may be furnished to:

(a) The Federal Reserve Bank and its examiners.

(b) The Comptroller of the Currency of the United States and
national bank examiners.

(c) The Federal Deposit Insurance Corporation and its examiners.

(d) The Federal Home Loan Bank of which the operating institution
is a member or to which the operating institution has applied for
membership.

(e) The State Treasurer if the Oregon operating institution is a
depository of public fund deposits.

(f) Any supervisory authority that regulates financial
institutions, financial holding companies or bank holding companies.

(g) The respective Oregon operating institution, or the financial
holding company or bank holding company that controls an Oregon operating
institution.

(8) The director shall prescribe and furnish to interested persons
the forms for all reports required by the Bank Act.

(9) If the director is requested to disclose any record subject to
this section and the record contains both material that is exempt from
disclosure under this section or any other provision of law and material
that is not exempt from disclosure, the director shall separate the
exempt and nonexempt material and shall disclose only the nonexempt
material. [Amended by 1973 c.797 §43; 1975 c.515 §6; 1983 c.37 §3; 1983
c.367 §2; 1985 c.762 §33a; 1985 c.786 §14; 1987 c.373 §50a; 1993 c.318
§8; 1995 c.314 §2; 1997 c.631 §18; 1999 c.107 §2; 2001 c.377 §21]
(1) Notwithstanding any other provision of law:

(a) Compliance review documents shall be confidential as provided
in ORS 705.137 and shall not be discoverable or admissible as evidence in
any civil action or administrative proceeding.

(b) Compliance review documents delivered to a state, federal or
foreign governmental or regulatory agency remain confidential as provided
in ORS 705.137 and shall not be discoverable or admissible in any civil
action or administrative proceeding.

(c) A person serving on a compliance review committee or acting at
the request of a compliance review committee may not be required to
testify in any civil action as to:

(A) The contents or conclusions of a compliance review document; or

(B) The actions taken by a compliance review committee.

(2) This section does not limit the discovery or admissibility in
any civil action or administrative proceeding of any documents that are
not compliance review documents.

(3) Upon motion by any party, a court shall determine a claim of
confidentiality under this section after an in camera review of the
materials or information claimed to be confidential. If the court
determines that part, but not all, of the materials or information is
confidential under this section, the court shall ensure that only the
materials or information that is not confidential is disclosed.

(4) The provisions of this section do not affect the ability of a
person to claim any privilege that may be provided by law, including but
not limited to a claim of privilege under ORS 40.225.

(5) For the purposes of this section:

(a) “Compliance review committee” means a person or persons
assigned by a board of directors of a financial institution, or by the
management of a financial institution, to test, review or evaluate the
conduct of the financial institution, the transactions of the financial
institution or the potential transactions of the financial institution
for the purpose of monitoring, improving and enforcing compliance with:

(A) Safe, sound and fair lending practices;

(B) Financial reporting to state or federal regulatory agencies;

(C) The financial institution’s own policies and procedures; or

(D) Federal or state statutory or regulatory requirements relating
to financial institutions.

(b) “Compliance review document” means any document prepared for or
created by a compliance review committee. [1997 c.81 §2; 2001 c.377 §22] An officer,
director, stockholder or employee of any Oregon operating institution
shall not:

(1) Knowingly subscribe to or make or cause to be made any false
statement or report to the Director of the Department of Consumer and
Business Services or any false entry in the books or accounts of the
Oregon operating institution.

(2) Knowingly subscribe to or exhibit false papers with the intent
to deceive any person authorized to examine into the affairs of the
Oregon operating institution.

(3) Knowingly state or publish any false report or statement of the
Oregon operating institution or prepare any false minutes, with intent to
deceive the directors of the Oregon operating institution or any person
authorized to examine the affairs of the Oregon operating institution.

(4) Make improper or fail to make proper entry upon the books or
records or in any statement or report of the Oregon operating institution
with intent to deceive or conceal the true condition of the Oregon
operating institution. [1973 c.797 §44; 1997 c.631 §19](1) The name of a person who is a depositor or
debtor of a bank and the amount of the person’s deposit or debt are
confidential as provided in ORS 705.137. The Director of the Department
of Consumer and Business Services or any other person employed by the
Department of Consumer and Business Services shall not knowingly disclose
the name of a person who is a depositor or debtor of a bank, or the
amount of the person’s deposit or debt, except that the director or the
employee may disclose such information as may be required under ORS
706.720 (5) or as may be necessary in the performance of the director’s
or employee’s official duty including any duty under ORS 295.018.

(2) Subsection (1) of this section does not prohibit disclosure of
the name of any debtor or the amount of the person’s debt included in
reports that are filed under ORS 706.655, if the reports were filed by a
banking institution that has been liquidated or is in the process of
being liquidated under ORS 711.400 to 711.615 and if disclosure is
otherwise allowed under ORS 706.720. [Amended by 1973 c.797 §45; 1975
c.515 §7; 1985 c.762 §§34,34a; 1985 c.786 §15; 1993 c.318 §9; 1997 c.631
§20; 2001 c.377 §23](1) For the purpose of an
investigation or proceeding under the Bank Act, the Director of the
Department of Consumer and Business Services may administer oaths and
affirmations, subpoena witnesses, compel their attendance, take evidence
and require the production of books, papers, correspondence, memoranda,
agreements or other documents or records that the director considers
relevant or material to the inquiry.

(2) If a person fails to comply with a subpoena so issued or a
party or witness refuses to testify on any matter, the judge of the
circuit court for any county, on the application of the director, shall
compel obedience by proceedings for contempt as in the case of
disobedience of the requirements of subpoena issued from the court or a
refusal to testify therein.

(3) Each witness who appears before the director under a subpoena
shall receive the fees and mileage provided for witnesses in ORS 44.415
(2), except that a witness subpoenaed at the instance of parties other
than the director or an examiner shall not be compensated for attendance
or travel unless the director certifies that the testimony of the witness
was material to the matter investigated.

(4) The director in any investigation may cause the depositions of
witnesses to be taken in the manner prescribed by law for like
depositions in civil suits in the circuit court. [Formerly 706.410; 1989
c.980 §19]If the Director of the Department of Consumer and Business
Services has reason to believe that a person has violated any provision
of the Bank Act for which criminal prosecution is provided, the director
shall give the information relative to the violation to the appropriate
federal, state or local law enforcement officer having jurisdiction of
the violation. However, this section does not apply when a director or
officer of an Oregon operating institution has reported the information
to the appropriate law enforcement agency under ORS 707.735. [Formerly
706.430; 1997 c.631 §21]The Attorney General shall conduct all actions begun by the
Director of the Department of Consumer and Business Services under
authority of the Bank Act, and may require the assistance of the district
attorney of the district in which the action is conducted. [Formerly
706.440] (1) In accordance with ORS chapter 183, the Director
of the Department of Consumer and Business Services may adopt rules for
the purpose of carrying out the Bank Act.

(2) In addition to the notice requirements of ORS chapter 183,
before the director adopts a rule, the director shall submit a copy of
the rule to each Oregon operating institution. [Formerly 706.460; 1997
c.631 §22]Notwithstanding any other provision of
law, the Director of the Department of Consumer and Business Services
may, in accordance with ORS 183.310, 183.315, 183.330, 183.335 and
183.341 to 183.410, make rules authorizing banking institutions to
exercise any of the powers conferred upon any financial institution that
is accepting deposits or transacting trust business in this state, if the
director finds that the exercise of the power:

(1) Serves the public convenience and advantage; and

(2) Equalizes and maintains the quality of competition between
banking institutions and other financial institutions. [Formerly 706.555;
1997 c.631 §23]Notwithstanding ORS 705.145 (2), moneys received
or expended by the Director of the Department of Consumer and Business
Services under this chapter relating to the supervision of Oregon
operating institutions may be deposited in or withdrawn from a single
account. The director need not establish a separate account in the
Consumer and Business Services Fund relating to the supervision of banks
and a separate account relating to the supervision of trust companies.
[1993 c.264 §2; 1997 c.631 §24]PENALTIES (1) Any person who violates any provision
of the Bank Act, or any lawful rule or final order of the Director of the
Department of Consumer and Business Services for which a civil penalty is
not expressly provided, shall forfeit a civil penalty in an amount
determined by the director of not more than $2,000 for each offense, or
$10,000 in the aggregate for all such offenses within any three-month
period. In the case of individuals, the civil penalty shall be not more
than $1,000 for each offense or $5,000 in the aggregate for all such
offenses within any three-month period. Each violation is a separate
offense.

(2) Any person who violates ORS 706.610 and 706.725 shall forfeit a
civil penalty in an amount determined by the director of not more than
$5,000. In addition, a person violating ORS 706.610 shall forfeit the
person’s office.

(3) Any person who violates ORS 706.730 shall forfeit a civil
penalty, in an amount determined by the director, of not more than
$1,000. In addition, the violator shall forfeit the violator’s office.

(4) All money forfeited under subsections (1), (2) and (3) of this
section shall be paid to the State Treasurer to be deposited in the
Consumer and Business Services Fund.

(5) In addition to any other civil penalty, any person who violates
any provision of the Bank Act or any lawful rule or final order of the
director may be required to forfeit and pay to the State Treasurer to be
deposited in the Consumer and Business Services Fund a civil penalty in
an amount determined by the director but not to exceed the amount by
which the person profited in any transaction which violates any such
provision, rule or order.

(6) The civil penalty may be recovered in an action brought thereon
in the name of the State of Oregon in any court of appropriate
jurisdiction or may be imposed as provided in ORS 183.745.

(7) In any court action with respect to a civil penalty, including
judicial review under ORS 183.745, the court may review the penalty as to
both liability and reasonableness of amount.

(8) If a civil penalty is assessed against a director, officer or
employee of a banking institution or non-Oregon institution, unless the
director provides otherwise, the director, officer or employee shall
forfeit the penalty and the penalty shall not be paid either directly or
indirectly by the banking institution or non-Oregon institution.

(9) The provisions of this section are in addition to and not in
lieu of any other enforcement provisions contained in the Bank Act.

(10) If a civil penalty is assessed against a director, officer or
employee of a non-Oregon institution, the director shall give notice of
the assessment to the bank supervisory agency having primary
responsibility for the supervision of the non-Oregon institution in the
state or country in which it is chartered or otherwise organized. [1975
c.544 §8; 1985 c.786 §18; 1991 c.734 §94; 1993 c.318 §10; 1997 c.631 §25]Violation of ORS 706.725 is a Class C
felony. [Amended by 1973 c.797 §48; 1975 c.544 §6]

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