USA Statutes : oregon
Title : TITLE 53 FINANCIAL INSTITUTIONS
Chapter : Chapter 714 Branch Banking; Automated Teller Machines
Banking institutions shall not establish or maintain branches
except as expressly authorized in ORS 714.025 to 714.079 and 714.995.
[1997 c.631 §312]
(1) A banking institution may establish
and operate one or more branches within or outside the State of Oregon.
The board of directors of a banking institution desiring to establish a
branch shall file an application with the Director of the Department of
Consumer and Business Services. The application shall be in the form the
banking institution is required to file with the Federal Reserve System
or the Federal Deposit Insurance Corporation to establish a branch at
such location, as the case may be, or in such other form as the director
may require. The application shall be accompanied by a $500 fee, which
fee shall only apply to the establishment of new branches and not to the
acquisition or relocation of existing branches. The director shall
promptly advise the banking institution if the application is incomplete
or if the director requires additional information.
(2) Mobile banking facilities described in ORS 714.035 and
temporary branches are considered branches for purposes of this section.
A temporary branch is a branch that operates for a period not to exceed
60 days, which period shall not be extended. The application fee for a
temporary branch shall be $100. The director may establish rules
regarding temporary branches.
(3) Branches to be located in other countries or to be located in
dependencies or insular possessions of the United States are subject to
the requirements of this section and ORS 714.045. [1997 c.631 §313] A banking institution may,
in accordance with ORS 714.025, establish one or more mobile facilities
to engage in the banking business or to transact trust business. Mobile
banking facilities may operate within the State of Oregon and in other
states. An application under ORS 714.025 shall not be required for mobile
facilities that exercise permissible powers or engage in permissible
activities that do not constitute engaging in the banking business or
transacting trust business. The application fee for each facility is
$500. [1997 c.631 §314](1) A banking institution may establish
branches in foreign countries or dependencies or insular possessions of
the United States in accordance with ORS 714.025 if it possesses
stockholder’s equity of at least $1 million.
(2) A banking institution operating such branches shall furnish
information concerning the condition of the branches to the Director of
the Department of Consumer and Business Services upon demand.
(3) The director may order special examinations of such branches.
(4) The director may promulgate rules regarding such branches
pursuant to ORS 183.310, 183.315, 183.330, 183.335, 183.341 and 183.410.
[1997 c.631 §315] (1) The
Director of the Department of Consumer and Business Services shall
investigate each application to establish a branch. With respect to
applications covering branches to be located outside the State of Oregon,
the director shall promptly provide the local bank supervisory agency or
regulator with a copy of the application and an opportunity to comment on
the application. The director shall not be bound by any such comments.
(2) In determining whether to approve or disapprove an application
to establish a branch, the director shall consider such factors as the
director deems appropriate, including the likely impact of the branch on
the safety and soundness of the banking institution, the adequacy of the
capital of the banking institution, the institution’s record of complying
with applicable law, and the results of supervisory examinations of the
banking institution.
(3) The director’s decision to disapprove an application is subject
to appeal in the manner provided in ORS 707.080 for the organization of
an institution. [1997 c.631 §316]With respect to applications to establish branches in
the State of Oregon or in a state outside of the State of Oregon, the
Director of the Department of Consumer and Business Services may approve
or disapprove the application, provided however, that failure to
disapprove an application within 30 days after receipt of a complete
application shall be deemed an approval of the application. With respect
to applications by banking institutions to establish branches in foreign
countries or dependencies or insular possessions of the United States,
the director may approve or disapprove an application, provided however,
that failure to disapprove an application within 90 days after receipt of
a complete application shall be deemed an approval of the application.
[1997 c.631 §317] Upon
the request of a banking institution, the Director of the Department of
Consumer and Business Services shall issue and deliver a certificate
authorizing each approved branch to conduct business. [1997 c.631 §318] A branch shall commence business
within one year after the application for the branch has been approved or
deemed approved by the Director of the Department of Consumer and
Business Services. The director may extend the period within which the
branch may open up to one additional year. If a branch fails to commence
business within the year or any extension of time granted by the
director, the approval of the application shall be deemed withdrawn and
the branch may not open or operate. [1997 c.631 §319] (1) A
banking institution may exercise the same powers and engage in the same
activities at a branch or branches located in states outside this state
as are permitted the banking institution within this state.
(2) A banking institution may exercise the same powers and engage
in the same activities at a branch or branches located in foreign
countries and dependencies or insular possessions of the United States as
are permitted the banking institution within this state and in addition
may exercise such additional powers as are permitted to such branches
under 12 C.F.R. 211.3(b), 12 C.F.R. 347.3(c) and other applicable federal
law. This subsection shall not be construed to permit a banking
institution that opens, occupies or maintains one or more branches in a
foreign country or dependency or insular possession of the United States
to use the branch or branches or engage in any activities within this
state that are not permitted to the banking institution under the laws of
this state. [1997 c.631 §320] Upon the call for a
report of condition by the Director of the Department of Consumer and
Business Services:
(1) Each Oregon commercial bank and Oregon savings bank shall
report to the director the total deposits held at each of its branches;
and
(2) Each non-Oregon institution and each federal bank that in
either case holds deposits of the State of Oregon or any political
subdivision thereof, or that underwrites bonds or other debt instruments
issued by the state or any political subdivision thereof, shall report to
the director the total deposits held at each of its branches located in
the State of Oregon. [1997 c.631 §321] A banking institution
may close and relocate branches provided the banking institution provides
the Director of the Department of Consumer and Business Services with a
copy of any notice required under 12 U.S.C. 1831r-1(a), or comparable
federal law, at the time and in the form required by such law or laws.
[1997 c.631 §322](Oregon Branches of Out-of-State Banks and Extranational Institutions)(1) An out-of-state bank may
occupy and maintain its initial branches in this state if and only if the
branches are acquired by the out-of-state bank in accordance with ORS
chapters 711 and 713.
(2) An out-of-state bank that is properly occupying and maintaining
one or more branches in Oregon in accordance with ORS chapters 711 and
713 may thereafter open, occupy and maintain one or more additional
branches in this state. The out-of-state bank shall not be required to
file an application under ORS 714.025 to establish such additional
branches.
(3) An out-of-state bank that acquires branches in accordance with
ORS chapters 711 and 713 shall be entitled to exercise powers and engage
in activities at its branches in this state as provided in ORS 713.010
and applicable federal law. [1997 c.631 §324](1) An extranational
banking institution may occupy and maintain branches in this state as
permitted by ORS chapter 713 and applicable federal law.
(2) An extranational banking institution may exercise powers and
engage in activities at branches located in this state as permitted by
ORS chapter 713 and applicable federal law. [1997 c.631 §325]AUTOMATED TELLER MACHINES; NIGHT DEPOSIT FACILITIES (1)
If the operator of an ATM charges a fee to any person to use the ATM, the
operator shall disclose to persons using the ATM that a fee will be
imposed for the ATM transaction.
(2) Subject to subsection (3) of this section, the disclosure
required under subsection (1) of this section shall be made
electronically during the ATM transaction and shall allow the person who
will be charged a fee to cancel the ATM transaction without incurring a
fee. The disclosure shall also be printed on the ATM transaction receipt.
(3) The Director of the Department of Consumer and Business
Services may adopt rules conforming the disclosure requirements of
subsection (2) of this section to disclosure requirements contained in:
(a) Any law enacted by the Congress of the United States; or
(b) Any regulation adopted by any federal agency having regulatory
authority over ATMs. [1997 c.631 §310b](1) A banking institution, through its own facilities or those of an
entity described in ORS 708A.160, may make available for use by its
customers and others one or more ATMs. Every transaction initiated
through an ATM shall be subject to verification by the banking
institution either by direct wire transmission or otherwise.
(2) ORS 714.025 does not apply to the establishment and maintenance
of ATMs. [1975 c.193 §3; 1993 c.381 §2; 1997 c.631 §309] No
person shall use or attempt to use an ATM facility for the purpose of
obtaining any information concerning an account or line of credit other
than the person’s own account or line of credit without the prior
approval of an authorized signer on the account or line of credit. No
person having received prior approval of the customer shall utilize such
authority to obtain through the use of the ATM any information not
necessary to the transaction which the customer seeks to accomplish
through its use. [1975 c.193 §9; 1993 c.381 §7; 1997 c.631 §310]
(1) It is the intent of the Legislative Assembly in enacting ORS 714.280
to 714.315 to enhance the safety of consumers using ATMs and night
deposit facilities in Oregon without discouraging the siting of ATMs and
night deposit facilities in locations convenient to consumers’ homes and
workplaces. Since decisions concerning safety at ATMs and night deposit
facilities are inherently subjective, the Legislative Assembly intends to
establish as the standard of care applicable to operators of ATMs and
night deposit facilities in connection with user safety, the compliance
with the objective standards and information requirements of ORS 714.280
to 714.315. The Legislative Assembly further recognizes the need for
uniformity as to the establishment of safety standards for ATMs and night
deposit facilities and intends with ORS 714.280 to 714.315 to supersede
and preempt any rule, regulation, code or ordinance of any city, county,
municipality or local agency regarding customer safety at ATMs and night
deposit facilities in this state.
(2) It is not the intent of the Legislative Assembly in enacting
ORS 714.280 to 714.315 to impose a duty to relocate or modify ATMs or
night deposit facilities upon the occurrence of any particular events or
circumstances, but rather to establish a means for the evaluation of all
ATMs and night deposit facilities as provided in ORS 714.210 to 714.992.
[1993 c.381 §§9,11]Before installing any ATM or night deposit
facility, the operator shall adopt procedures for evaluating the safety
of the ATM or night deposit facility. For ATMs and night deposit
facilities installed on or before July 1, 1994, operators shall adopt
procedures not later than July 1, 1994. The procedures shall include a
consideration of the following:
(1) The extent to which the lighting for the ATM or night deposit
facility complies or will comply with the standards required by ORS
714.290 and 714.295.
(2) The presence of landscaping, vegetation or other obstructions
in the area of the ATM or night deposit facility, the access area and the
defined parking area.
(3) The incidence of crimes of violence in the immediate
neighborhood of the ATM or night deposit facility, as reflected in the
records of the local law enforcement agency and of which the operator has
actual knowledge. [1993 c.381 §10] (1) Each
operator of an ATM or night deposit facility installed after July 1,
1994, shall comply with ORS 714.295. Compliance with ORS 714.295 by
operators of ATMs and night deposit facilities existing on or before July
1, 1994, shall be optional until July 1, 1996, and mandatory thereafter.
This section shall apply to an operator of an ATM or night deposit
facility only to the extent that the operator controls the access area or
defined parking area to be lighted.
(2) If an access area or a defined parking area is not controlled
by the operator of an ATM or night deposit facility, and if the person
who leased the ATM or night deposit facility site to the operator
controls the access area or defined parking area, the person who controls
the access area or defined parking area shall comply with ORS 714.295
regarding any ATM or night deposit facility installed after July 1, 1994.
Regarding any ATM or night deposit facility installed on or before July
1, 1994, the person shall comply with ORS 714.295 no later than July 1,
1996. [1993 c.381 §12]The operator, owner or other person responsible for the ATM
or night deposit facility shall provide lighting during hours of darkness
for an open and operating ATM or night deposit facility and any defined
parking area, access area and the exterior of an enclosed ATM or night
deposit facility installation according to the following standards:
(1) There shall be a minimum of 10 candlefoot power at the face of
the ATM or night deposit facility and extending in an unobstructed
direction outward five feet.
(2) There shall be a minimum of two candlefoot power within 50 feet
in all unobstructed directions from the face of the ATM or night deposit
facility. In the event the ATM or night deposit facility is located
within 10 feet of the corner of the building and the ATM or night deposit
facility is generally accessible from the adjacent side, there shall be
minimum of two candlefoot power along the first 40 unobstructed feet of
the adjacent side of the building.
(3) There shall be a minimum of two candlefoot power in that
portion of the defined parking area within 60 feet of the ATM or night
deposit facility. [1993 c.381 §13]The issuers of access devices shall furnish
customers receiving the devices with notices of basic safety precautions
which customers should employ while using an ATM or night deposit
facility. This information shall be furnished by personally delivering or
by mailing the information to each customer whose mailing address as to
the account to which the access device relates is in this state. This
information shall be furnished with respect to access devices issued
after July 1, 1994, at or before the time the customer is furnished with
his or her access device. With respect to a customer to whom an access
device has been issued on or before July 1, 1994, the information shall
be delivered or mailed to the customer on or before December 31, 1994.
Only one notice need be furnished per household, and if access devices
are furnished to more than one customer for a single account or set of
accounts or on the basis of a single application or other request for the
access devices, only a single notice need be furnished in satisfaction of
the notification responsibilities as to all those customers. The
information may be included with other disclosures related to the access
device furnished to the customer, such as with any initial or periodic
disclosure statement furnished pursuant to the Electronic Fund Transfer
Act (15 U.S.C. 1501 et seq.). [1993 c.381 §14] The
requirements of ORS 714.280 (2) and 714.285 to 714.295 shall not apply to
any ATM or night deposit facility that is:
(1) Located inside of a building, unless it is a freestanding
installation that exists for the sole purpose of providing an enclosure
for the ATM or night deposit facility.
(2) Located inside of a building, except to the extent that a
transaction can be conducted from outside the building.
(3) Located in any area, including any access area, building,
enclosed space or parking area that is not controlled by the operator.
[1993 c.381 §15]ORS 714.210 to 714.315
supersede and preempts all rules, regulations, codes, statutes or
ordinances of all cities, counties, municipalities and local agencies
regarding customer safety at ATMs or night deposit facilities located in
Oregon. [1993 c.381 §16] Compliance with ORS
714.280 to 714.300 shall create a rebuttable presumption that the
operator of the ATM or night deposit facility in question has provided
adequate measures for the safety of users of the ATM or night deposit
facility. [1993 c.381 §17]PENALTIESViolation knowingly of ORS 714.270 is a
Class C felony. [1975 c.193 §10] Each day a banking institution operates a
branch that has not been approved or deemed approved by the Director of
the Department of Consumer and Business Services, the banking institution
is subject to a penalty of up to $1,000. The penalty shall be assessed
and collected as prescribed in ORS 706.570 (2). [1997 c.631 §323]
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