2007 Oregon Code - Chapter 706 :: TITLE 53
TITLE 53
FINANCIAL
INSTITUTIONS
Chapter 706. Administration and Enforcement of Banking
Laws Generally
707. Organization to Conduct Banking Business;
Stockholders, Directors and Officers
708A. Regulation of Institutions Generally
709. Regulation of Trust Business
711. Merger; Conversion; Share Exchange;
Acquisition; Liquidation; Insolvency
713. Out-of-State Banks and Extranational
Institutions
714. Branch Banking; Automated Teller Machines
715. Bank Holding Companies; Financial Holding
Companies
716. Savings Banks
717. Money Transmission
_______________
Chapter 706
Administration and Enforcement of Banking Laws Generally
2007 EDITION
ADMINISTRATION OF BANKING LAWS GENERALLY
FINANCIAL INSTITUTIONS
GENERAL PROVISIONS
706.005 Definitions
for Bank Act
706.008 Additional
definitions for Bank Act
706.015 Bank
Act references to federal statutes and regulations; rules
SUPERVISION OF BANKING INSTITUTIONS
706.500 Examination
of banking institutions and non-Oregon institutions; examination program with
federal regulators
706.515 Agreements
with other bank supervisory agencies; contracts for use of bank examiners;
joint examination or enforcement; fees
706.520 Request
by directors or stockholders for examination; costs
706.530 Annual
fees paid by banking institutions and non-Oregon institutions; rules
706.544 Costs
for special examination or other actions taken
706.560 Appraisal
of securities and audit
706.570 Requiring
banking institution and non-Oregon institution to keep proper records and accounts;
civil penalty
706.575 Certificate
as evidence that document is filed with director
706.580 Illegal,
unauthorized or unsafe practices; authority of director
706.600 Authority
to protect creditors and depositors of banking institution or non-Oregon
institution
706.610 Examiners
required to report insolvency of
706.620 Records
706.630 Regular
reports of condition; additional reports as required by director
706.650 Delay
or failure to furnish reports of condition; penalty
706.655 Records
of extensions of credit by banking institutions; rules
706.660 Report
of earnings and dividends
706.680 Failure
to make reports of earnings and dividends; penalty
706.690 Transfer
of stock or controlling interest; notice to and approval by director;
applicability to financial holding companies and bank holding companies
706.700 Resignation
or retirement of director, president or chief executive officer; notice to
director
706.710 Waiver
of retirement or resignation notices; modifying effective date
706.720 Reports
filed with director; public inspection of records; exemptions; confidentiality;
forms
706.723 Compliance
review documents confidential; review by court
706.725 False
statements, reports and book entries
706.730 Depositor
and debtor information confidential; disclosure prohibited; exceptions
706.775 Enforcement
of Bank Act; production of witnesses and evidence; fees and mileage of
witnesses
706.780 Notice
to law enforcement officers of Bank Act violations; exception
706.785 Attorney
General to conduct actions; assistance of district attorneys
706.790 Rules
706.795 Rules
authorizing banking institutions to exercise powers of certain financial
institutions
706.815 Single
account for moneys relating to supervision of
PENALTIES
706.980 Civil
penalties
706.990 Criminal
penalties
GENERAL PROVISIONS
706.005
Definitions for Bank Act. 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
institutions or banks 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 customers 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
institutions 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
(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]
706.008
Additional definitions for Bank Act. 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
(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
(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
(12) Institution means an
(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
(b) An out-of-state trust company
transacting trust business in
(c) An extranational institution engaging
in banking business in
(18) Nonstock bank means a bank that
does not issue capital stock.
(19) Oregon bank means an
(20)
(21)
(22)
(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)
(24)
(25)
(26)
(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
(29) Out-of-state federal bank means a
federal bank, the home state of which is a state other than
(30) Out-of-state financial holding
company means a financial holding company whose home state is not
(31) Out-of-state state bank means a
state bank, the home state of which is a state other than
(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]
706.010 [Amended by 1971 c.743 §413; repealed by
1973 c.797 §428]
706.015
Bank Act references to federal statutes and regulations; rules. 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]
706.020 [Repealed by 1973 c.797 §428]
706.025 [1963 c.580 §68; repealed by 1973 c.797 §428]
706.030 [Repealed by 1973 c.797 §428]
706.040 [Repealed by 1973 c.797 §428]
706.050 [Repealed by 1973 c.797 §428]
706.060 [Repealed by 1973 c.797 §428]
706.070 [Repealed by 1973 c.797 §428]
706.080 [Repealed by 1973 c.797 §428]
706.090 [Repealed by 1973 c.797 §428]
706.100 [Amended by 1973 c.797 §3; 1975 c.544 §1;
1979 c.88 §1; 1981 c.192 §2; 1983 c.296 §1; 1983 c.367 §1; 1985 c.762 §17; 1985
c.796 §1; 1987 c.197 §1; 1987 c.414 §166a; repealed by 1989 c.324 §75]
706.205 [1963 c.580 §69; 1973 c.797 §4; repealed by
1985 c.762 §196]
706.210 [Repealed by 1963 c.580 §103]
706.215 [1963 c.580 §70; 1973 c.797 §5; repealed by
1985 c.762 §196]
706.218 [1973 c.797 §6; repealed by 1985 c.762 §196]
706.220 [Repealed by 1963 c.580 §103]
706.225 [1963 c.580 §71; 1973 c.797 §7; 1974 c.27 §1;
repealed by 1985 c.762 §196]
706.226 [1977 c.135 §7; repealed by 1985 c.762 §196]
706.228 [1973 c.797 §8; repealed by 1985 c.762 §196]
706.230 [Repealed by 1963 c.580 §103]
706.235 [1963 c.580 §72; 1973 c.797 §9; repealed by
1985 c.762 §196]
706.240 [Repealed by 1963 c.580 §103]
706.245 [1963 c.580 §73; 1969 c.314 §101; 1973 c.797
§10; 1985 c.786 §5; renumbered 706.900]
706.250 [Repealed by 1963 c.580 §103]
706.255 [1963 c.580 §75; 1973 c.797 §11; renumbered
706.905]
706.260 [Renumbered 706.285]
706.265 [1963 c.580 §76; 1973 c.797 §12; 1974 c.27 §2;
1985 c.762 §21a; 1985 c.786 §6; renumbered 706.910]
706.270 [Repealed by 1963 c.580 §103]
706.280 [Amended by 1959 c.210 §1; repealed by 1963
c.580 §103]
706.285 [Formerly 706.260; 1973 c.797 §13; 1981
c.192 §3; repealed by 1985 c.762 §196]
706.290 [Amended by 1973 c.797 §14; repealed by 1985
c.762 §196]
706.410 [Amended by 1973 c.797 §15; 1985 c.762 §23;
renumbered 706.775]
706.420 [Repealed by 1973 c.797 §428]
706.430 [Amended by 1973 c.797 §16; 1975 c.544 §2;
1979 c.88 §2; renumbered 706.780]
706.440 [Amended by 1973 c.797 §17; renumbered
706.785]
706.450 [Amended by 1963 c.580 §77; 1969 c.43 §1;
1973 c.797 §18; repealed by 1985 c.762 §196]
706.455 [1973 c.797 §19; repealed by 1985 c.762 §196]
706.460 [Amended by 1963 c.580 §78; 1971 c.734 §169;
1973 c.797 §20; 1985 c.762 §25; renumbered 706.790]
706.470 [Repealed by 1971 c.734 §21]
706.475 [1971 c.734 §171; 1973 c.797 §21; repealed
by 1985 c.762 §196]
706.480 [Amended by 1963 c.580 §79; repealed by 1971
c.743 §21]
706.490 [Repealed by 1973 c.797 §428]
SUPERVISION
OF BANKING INSTITUTIONS
706.500
Examination of banking institutions and non-Oregon institutions; examination
program with federal regulators. (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
706.510 [Repealed by 1973 c.797 §428]
706.515
Agreements with other bank supervisory agencies; contracts for use of bank
examiners; joint examination or enforcement; fees. (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 directors 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
agencys examiners at a reasonable rate of compensation, or to provide the
services of the directors 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 directors 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]
706.520
Request by directors or stockholders for examination; costs. 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
706.530
Annual fees paid by banking institutions and non-Oregon institutions; rules. 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]
706.540 [Amended by 1969 c.94 §2; 1971 c.68 §2; 1973
c.797 §25; 1977 c.135 §9; 1983 c.296 §1a; 1985 c.762 §28a; 1985 c.786 §10; 1987
c.171 §4; 1987 c.373 §49; repealed by 1993 c.264 §5]
706.544
Costs for special examination or other actions taken. 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]
706.548 [1973 c.797 §26; repealed by 1985 c.762 §196
and 1985 c.786 §69]
706.550 [Amended by 1963 c.580 §80; 1973 c.797 §27;
repealed by 1985 c.762 §196 and 1985 c.786 §69]
706.555 [1973 c.797 §28; 1985 c.796 §2; renumbered
706.795]
706.560
Appraisal of securities and audit. (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]
706.570
Requiring banking institution and non-Oregon institution to keep proper records
and accounts; civil penalty.
(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]
706.575
Certificate as evidence that document is filed with director. (1) A certificate attached to a copy of a
document filed by the Director of the Department of Consumer and Business
Services, bearing the directors 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]
706.580
Illegal, unauthorized or unsafe practices; authority of director. 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 directors 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 directors 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]
706.590 [Repealed by 1973 c.797 §428]
706.600
Authority to protect creditors and depositors of banking institution or
non-Oregon institution. (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
persons 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 institutions 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]
706.610
Examiners required to report insolvency of
706.620
Records. 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]
706.630
Regular reports of condition; additional reports as required by director. (1) The Director of the Department of
Consumer and Business Services shall call for the report of condition of
(2) The report of each
(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
(c) Exhibit in detail, and under
appropriate heads, the total liabilities and resources of the
(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]
706.640 [Repealed by 1973 c.797 §428]
706.650
Delay or failure to furnish reports of condition; penalty. If an
706.655
Records of extensions of credit by banking institutions; rules. (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]
706.660
Report of earnings and dividends. (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]
706.670 [Amended by 1973 c.797 §38; repealed by 1997
c.631 §567]
706.680
Failure to make reports of earnings and dividends; penalty. 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]
706.690
Transfer of stock or controlling interest; notice to and approval by director;
applicability to financial holding companies and bank holding companies. (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
(2) If a director or officer of an
institution or
(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]
706.700
Resignation or retirement of director, president or chief executive officer;
notice to director. 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]
706.710
Waiver of retirement or resignation notices; modifying effective date. 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]
706.720
Reports filed with director; public inspection of records; exemptions;
confidentiality; forms. (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
(a) The Federal Reserve Bank and its
examiners.
(b) The Comptroller of the Currency of the
(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
(f) Any supervisory authority that
regulates financial institutions, financial holding companies or bank holding
companies.
(g) The respective
(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; 2007 c.871 §30]
Note: The amendments to 706.720 by section 30,
chapter 871, Oregon Laws 2007, become operative July 1, 2008, and apply to all
public funds on deposit on or after July 1, 2008. See sections 36 and 37,
chapter 871, Oregon Laws 2007, as amended by sections 39 and 40, chapter 871,
Oregon Laws 2007. The text that is operative until July 1, 2008, is set forth
for the users convenience.
706.720. (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
(a) The Federal Reserve Bank and its
examiners.
(b) The Comptroller of the Currency of the
(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
(f) Any supervisory authority that
regulates financial institutions, financial holding companies or bank holding
companies.
(g) The respective
(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.
706.723
Compliance review documents confidential; review by court. (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 institutions 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]
706.725
False statements, reports and book entries. An officer, director, stockholder or employee of any
(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
(2) Knowingly subscribe to or exhibit
false papers with the intent to deceive any person authorized to examine into
the affairs of the
(3) Knowingly state or publish any false
report or statement of the
(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]
706.730
Depositor and debtor information confidential; disclosure prohibited;
exceptions. (1) The name of
a person who is a depositor or debtor of a bank and the amount of the persons
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 persons 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 directors or employees
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 persons
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]
706.740 [Amended by 1963 c.195 §2; 1963 c.580 §81;
1973 c.797 §46; repealed by 1985 c.762 §196]
706.775
Enforcement of Bank Act; production of witnesses and evidence; fees and mileage
of witnesses. (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]
706.780
Notice to law enforcement officers of Bank Act violations; exception. 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
706.785
Attorney General to conduct actions; assistance of district attorneys. 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]
706.790
Rules. (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
706.795
Rules authorizing banking institutions to exercise powers of certain financial
institutions.
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]
706.800 [1993 c.229 §21; repealed by 1997 c.631 §567]
706.805 [1993 c.229 §5; repealed by 1997 c.631 §567]
706.815
Single account for moneys relating to supervision of
706.900 [Formerly 706.245; 1987 c.373 §51; repealed by
1993 c.318 §2]
706.905 [Formerly 706.255; repealed by 1993 c.318 §2]
706.910 [Formerly 706.265; repealed by 1993 c.318 §2]
706.915 [1985 c.786 §16; repealed by 1993 c.318 §2]
706.920 [1985 c.786 §17; repealed by 1993 c.318 §2]
PENALTIES
706.980
Civil 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 persons 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 violators
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]
706.990 Criminal penalties. Violation of ORS 706.725 is a Class C
felony. [Amended by
1973 c.797 §48;
1975 c.544 §6]
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