2007 Oregon Code - Chapter 708a :: Chapter 708A - Regulation of Institutions Generally
Chapter 708A
— Regulation of Institutions Generally
2007 EDITION
REGULATION OF INSTITUTIONS GENERALLY
FINANCIAL INSTITUTIONS
POWERS OF INSTITUTIONS
708A.005Â Powers
of institutions; insurance transactions; rules
708A.010Â Investments
and activities of
708A.115Â Investment
in government obligations
708A.120Â Investment
in stock of other corporations; rules
708A.125Â Stock
in corporations acquired to strengthen capital or eliminate undesirable assets
708A.130Â Definition
for ORS 708A.135 to 708A.145
708A.135Â Investment
in bank service corporation
708A.140Â Discrimination
by bank service corporation prohibited against nonstockholding depository
institution; permitted conduct
708A.145Â Authorized
services of bank service corporations; sale of insurance; regulation of
services
708A.150Â Community
development corporations; authority to invest or organize; conditions;
corporate form; functions
708A.155Â Investment
in foreign banks
708A.160Â Corporation
created to establish ATMs; banking institution as stockholder
708A.165Â Membership
in Federal Reserve System; member bank, officers, directors and shareholders
subject to duties and liabilities imposed by laws of this state
708A.170Â Securities
powers
708A.175Â Right
to purchase, hold and dispose of real and personal property
708A.180Â Acquisition
of personal property for leasing purposes
708A.185Â Purchase
of real estate contracts
708A.190Â Acceptance
of drafts and bills of exchange; issuance of letters of credit; obligation for
participation share in bills; rules
708A.195Â Disposition
of real and personal property
708A.210Â Challenge
to validity of institution action; prohibition; exceptions
LOANS GENERALLY
708A.250Â Lending
money
708A.255Â Interest
rates on loans or uses of money; late charges
708A.260Â Accepting
own stock as collateral
708A.265Â Accepting
stock of other institutions as collateral
708A.270Â Real
estate loans
708A.275Â Establishment
of loan production office; notice; fee
LOAN AND OTHER OBLIGATION LIMITS
708A.290 “Capital”
defined for ORS 708A.290 to 708A.375
708A.295Â Limitations
on amount of obligations to
708A.300Â Obligations
secured by readily marketable collateral
708A.305Â Obligations
of other financial institutions
708A.310Â Obligations
of indorser of discounted commercial paper
708A.315Â Noncommercial
short-term notes
708A.320Â Obligations
secured by shipping documents
708A.325Â Installment
consumer paper
708A.330Â BankersÂ’
acceptances of other financial institutions
708A.335Â Obligations
secured by documents covering readily marketable staples
708A.340Â Obligations
secured by documents covering livestock
708A.345Â Obligations
secured by government obligations or shares of mutual fund or unit trust
708A.350Â Obligations
secured by government bonds
708A.355Â Insured
and guaranteed obligations
708A.360Â Obligations
secured by deposits
708A.365Â Obligations
secured by life insurance policy values
708A.370Â Obligations
secured by first lien on real estate
708A.375Â Obligations
of guarantors
DEPOSITS
708A.400Â Deposit
accounts
708A.405Â Deposits;
FDIC insurance required
708A.410Â Savings
accounts; conditions for withdrawal; interest rate
708A.415Â Securing
deposits by surety bond, letter of credit or insurance
708A.420Â Notice
to depositor upon change in terms, charges, withdrawal conditions or decrease
in interest rate; exception
708A.425Â Deposit
made in name of minor
708A.430Â Disposition
of deposit on death of depositor
708A.435Â Adverse
claim to deposit; notice; restraining order or other process; indemnity bond or
letter of credit
708A.440Â Checks
drawn by agents presumed to be in authorized manner
708A.445Â Checks
of intoxicated or drugged persons
708A.450Â Certified
checks
708A.455Â Definitions
for ORS 708A.455 to 708A.515
708A.460Â Application
of ORS 708A.465 to 708A.475; liability and setoff rights of financial
institutions
708A.465Â Ownership
of multiple-party accounts
708A.470Â Multiple-party
accounts; disposition of deposit upon death of party or trustee; effect of will
708A.475Â Right
of survivorship based on form of account; alteration of form of account
708A.480Â Transfer
of moneys upon death of depositor or trustee is not testamentary disposition
708A.485Â Payment
of deposit in multiple-party account to one or more parties; institution not
required to determine source or use of funds in account
708A.490Â Joint
account; payment to any party to account; payment to others
708A.495Â P.O.D.
account; payment to any original party; payment to others
708A.500Â Trust
account; payment to any trustee; payment to others
708A.505Â Discharge
of institution from liability for payments made; conditions
708A.510Â Right
of institution to setoff; amount
708A.515Â Designation
of agent for account; powers of agent
GRANTING SECURITY INTERESTS IN INSTITUTION
ASSETS
708A.535Â Granting
security interests in institution assets
REGULATORY ACCOUNTING
708A.555Â Generally
accepted accounting principles
708A.560Â Real
and personal property used in institutionÂ’s business
708A.565Â Certain
stock
708A.570Â Community
development corporations
708A.575Â Market-making
corporations
708A.580Â Capital-strengthening
corporations
708A.585Â Claims
and judgments as assets
708A.590Â Charging
off real estate assets
708A.595Â Charging
off personal property assets
708A.600Â Charging
off bad debts
708A.605Â Separate
accounts for foreign branches
MISCELLANEOUS PROVISIONS
708A.630Â Negligent,
excessive, dishonest or unlawful loans; civil liability of officer, director or
employee
708A.635Â Written
policies regarding reporting to and obtaining approval of board; duty to report
708A.640Â Receiving
illegal compensation; misapplication of property and credit
708A.645Â Illegal
guaranty or indorsement
708A.650Â Banking
days; holidays
708A.655Â Procedures
for opening safe deposit box after death of person who was sole lessee or last
surviving lessee of box
PENALTIES
708A.990Â Civil
penalties
708A.995Â Criminal
penalties
POWERS OF INSTITUTIONS
     708A.005
Powers of institutions; insurance transactions; rules. (1) Except as otherwise limited in the Bank
Act or the articles of incorporation of an institution, an institution shall
have:
     (a) Perpetual duration and succession in
its corporate name, unless a limited period of duration is stated in its
articles of incorporation;
     (b) The power to do all things necessary
or convenient to carry out its business and affairs including, without
limitation, the power to:
     (A) Sue and be sued and complain and
defend in its corporate name;
     (B) Have a corporate seal, which may be
altered at will, and use it or a facsimile thereof by impressing, affixing or
reproducing it in any other manner;
     (C) Make contracts, incur liabilities,
borrow money, issue its notes, bonds and other obligations that may be
convertible into other securities of the institution or include the option to
purchase other securities of the institution;
     (D) Conduct its business, locate offices
and exercise the powers granted by the Bank Act within or without this state;
     (E) Elect or appoint directors, officers,
employees and agents of the institution;
     (F) Make and amend bylaws not inconsistent
with its articles of incorporation or with the laws of this state for managing
the business and regulating the affairs of the institution;
     (G) Make donations for the public welfare
or for charitable, scientific or educational purposes;
     (H) Transact any business permitted by the
Bank Act; and
     (I) Pay pensions and establish pension
plans, and share option plans and benefit or incentive plans for any or all of
its current or former directors, officers, employees and agents;
     (c) The powers granted to institutions by
the Bank Act;
     (d) The power to be licensed as an
insurance producer as required by ORS 744.053 to transact one or more of the
classes of insurance described in ORS 744.062 except for title insurance; and
     (e) All powers necessary or convenient to
effect any or all of the purposes for which the institution is organized or to
perform any or all of the acts expressly or impliedly authorized or required
under the Bank Act.
     (2) With respect to any exercise of the
power granted under subsection (1)(d) of this section, other than the licensing
of the institution to transact types of limited class insurance, as that term
is defined in ORS 744.052, designated by the Director of the Department of
Consumer and Business Services:
     (a) The conduct by the institution of
insurance producer activities shall be subject to the approval of the director.
The director shall base consideration for approval on the condition of the
institution, the adequacy of a formal business plan for the insurance
activities and the existence of satisfactory management for the insurance
activity.
     (b) The director may revoke or restrict
the ongoing authority of the institution to engage in the insurance producer
activity if the condition of the institution substantially deteriorates or if
the insurance activities are adversely affecting the institution.
     (c) The institution shall file a written
report with the director no later than March 31 of each year disclosing the insurance
activities of the institution. The required contents of the report shall be
established by the director by rule. Reports filed with the director under this
paragraph shall be available for public inspection in the office of the
director.
     (3) An institution licensed as an
insurance producer, as that term is defined in ORS 731.104, shall not in any
manner use customer information obtained from another insurance producer to
promote, develop or solicit insurance business for the institution unless the other
insurance producer consents to such use of the customer information. [1997
c.631 §116; 1997 c.831 §1a; 2001 c.191 §51; 2003 c.363 §6; 2003 c.364 §58a]
     708A.010
Investments and activities of
     (a) Engage as principal in those
activities in which national banks may engage as principal and acquire and
retain those investments that national banks may acquire and retain, subject to
conditions and restrictions that apply to national banks; and
     (b) Engage as principal in those
activities and acquire and retain those investments that are permissible for
state chartered banks under 12 C.F.R. 362.3(b) and 12 C.F.R. 362.4(c), subject
to conditions and restrictions provided in 12 U.S.C. 1831a, 12 C.F.R. 362, and
other applicable federal law.
     (2) Notwithstanding any provision of the
Bank Act to the contrary, subsidiaries of
     (a) Engage as principal in those
activities in which subsidiaries of national banks may engage as principal and
acquire and retain those investments that subsidiaries of national banks may
acquire and retain, subject to conditions and restrictions that apply to subsidiaries
of national banks; and
     (b) Engage as principal in those
activities and acquire and retain those investments that are permissible for
subsidiaries of state chartered bank subsidiaries under 12 C.F.R. 362.3(b) and
12 C.F.R. 362.4(c), subject to conditions and restrictions provided in 12
U.S.C. 1831a, 12 C.F.R. 362, and other applicable federal law.
     (3) Activities and investments referred to
in subsections (1) and (2) of this section that require notice to or approval
of the Comptroller of the Currency shall not require such notice or approval
but shall require notice to or approval of the Director of the Department of
Consumer and Business Services. For purposes of this section, references in
federal statutes, regulations and other authorities that prescribe the
permissible activities and investments of national banks and subsidiaries of
national banks shall be deemed whenever practicable to refer to comparable
provisions of
     (4) The purpose of this section is to
grant
     708A.115
Investment in government obligations. (1) Institutions may invest, without regard to any limitation based on
stockholdersÂ’ equity, in:
     (a) Obligations of the
     (b) Obligations of public housing agencies
issued pursuant to the United States Housing Act of 1937, as amended; and
     (c) Obligations of the State of Oregon or
any county, city, school district, port district or other public body with the
power to levy taxes issued pursuant to the Constitution or statutes of the
State of Oregon or the charter or ordinances of any county or city within the
State of Oregon, if the issuing body has not been in default with respect to
the payment of principal or interest on any of its obligations within five
years preceding the date of the investment.
     (2) Subject to a limitation of 20 percent
of stockholdersÂ’ equity, institutions may invest in obligations of any other
state of the United States or obligations of any out-of-state county, city,
school district, port district or other public body in the United States
payable from ad valorem taxes, if the obligations are rated in one of the four
highest grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years in
rating state and municipal obligations.
     (3) Obligations received in satisfaction
of debts previously contracted in good faith are not subject to the limitations
of this section, if the book value of such obligations in excess of the
limitations of this section is reduced to the amount allowed under this section
within six months after the date the obligations are acquired. [1997 c.631 §118;
1999 c.59 §215]
     708A.120
Investment in stock of other corporations; rules. (1) An institution shall not invest any of
its assets in the capital stock of any other corporation, except:
     (a) In the capital stock of the Federal
Reserve Bank.
     (b) In stock acquired or purchased to save
a loss on a preexisting debt. The stock shall be sold within two years of the
date acquired or purchased. The Director of the Department of Consumer and
Business Services may extend the time if the director finds that an extension
will not be detrimental to the public interest and will not contravene any
other law.
     (c) In the capital stock of any safe
deposit company doing an exclusive safe deposit business on premises owned or
leased by the institution upon 30 daysÂ’ advance notice to the director subject
to the same limitations applicable to a national bank.
     (d) In the capital stock of agricultural
and livestock finance companies, subject to the same limitations applicable to
national banks and to the approval of the director.
     (e) In the capital stock, eligible for
purchase by national banks, of small business investment companies, but the
aggregate investment in the stock shall not exceed two percent of the capital
of the institution.
     (f) In the common stock of any federally
chartered corporation that is chartered for the purpose of providing secondary
markets for the sale of mortgages by institutions.
     (g) In the stock of the Federal Home Loan
Bank.
     (h) In the capital stock of a corporation
exclusively engaged in a trust business or a bankerÂ’s bank, subject to the same
limitations applicable to national banks.
     (i) In the capital stock of bank service
corporations as provided in ORS 708A.130 to 708A.145.
     (j) In the capital stock of a community
development corporation as provided in ORS 708A.150.
     (k) If a trust company is not engaged in a
banking business and if the investment is first approved by the director, the
trust company may invest an amount not to exceed 20 percent of the capital of
the trust company:
     (A) In the capital stock of a subsidiary
investment company defined in the Investment Company Act of 1940, as amended;
or
     (B) In a company one of the purposes of
which is to act as a federal covered investment adviser or a state investment
adviser, as defined in ORS 59.015, with all the powers customarily exercised by
a federal covered investment adviser or a state investment adviser.
     (L) In adjustable rate preferred stock of
the Student Loan Marketing Association established in 20 U.S.C. 1087-2, but the
aggregate investment in the stock shall not exceed 15 percent of the capital of
the institution.
     (m) In the capital stock of a company
acquired for the purpose of strengthening the institutionÂ’s capital structure
or the elimination of undesirable assets as provided in ORS 708A.125.
     (n) In the capital stock of banks and
corporations engaged in international or foreign banking or foreign banking in
a dependency or insular possession of the United States, as provided in ORS
708A.155.
     (o) In the capital stock of a corporation
created to establish ATMs as provided in ORS 708A.160.
     (2) An institution may invest its assets
in shares of any mutual fund, the assets of which are invested solely in
obligations of the type described in and limited under ORS 708A.115.
     (3) An institution may, subject to the
approval of the director, acquire or continue to hold the fully paid stock of a
corporation, one of the purposes of which is to assist the institution in
handling real estate, claims, judgments or other assets or in holding title to
the assets.
     (4) An institution may acquire or continue
to hold the fully paid stock of a corporation the purpose of which is to permit
the institution to engage in any business in which a financial holding company,
a bank holding company or a nonbank subsidiary of a financial holding company
or a bank holding company is authorized to engage. This subsection does not
apply unless the institution is the owner of at least 80 percent of the common
stock of the subsidiary corporation, except qualifying shares of directors.
     (5) An institution may, subject to the
approval of the director and to rules promulgated by the director, acquire and
continue to hold at least 80 percent of the fully paid stock of a corporation
engaged in any business in which an institution is authorized to engage. Except
as otherwise permitted by statute or rule, the investment limitations
applicable to the institution apply to the subsidiary.
     (6) An institution may, subject to the
approval of the director and under rules promulgated by the director, acquire
and continue to hold all the fully paid stock of a subsidiary corporation
engaged in the business of purchasing the stock of the institution for purposes
of holding that stock and making a market for that stock, if not more than 20
percent of the net profit of the banking institution is disbursed to the
subsidiary in any one fiscal year. Except as otherwise permitted by statute or
rule, the investment limitations applicable to the institution apply to the
subsidiary. Acquisitions under this subsection shall not exceed 15 percent of
the capital of the institution.
     (7) An institution may acquire and hold
all or part of the stock of a corporation that is or may thereafter be licensed
as an insurance producer as required by ORS 744.053 to transact one or more of
the classes of insurance described in ORS 744.062, subject to the following
requirements:
     (a) The acquisition and holding of such
stock shall be subject to the approval of the director. The director shall base
consideration for approval on the condition of the institution, the adequacy of
a formal business plan for the insurance activities, and the existence of
satisfactory management for the corporation.
     (b) The director may revoke or restrict
the ongoing authority of the institution to hold stock in the corporation if
the condition of the institution substantially deteriorates or if the insurance
activities are adversely affecting the institution.
     (c) For each calendar year during which an
institution owns all or part of any corporation licensed as an insurance
producer as required by ORS 744.053, the institution shall file a written
report with the director. The report shall be filed no later than March 31 of
the following year and shall disclose the insurance activities of the
corporation. The required contents of the report shall be established by the
director by rule. The reports filed with the director under this paragraph
shall be available for public inspection in the office of the director.
     (d) The corporation shall not in any
manner use customer information obtained by the institution from another
insurance producer to promote, develop or solicit insurance business for the
corporation unless the other insurance producer consents to such use of the
customer information.
     (e) The corporation shall be subject to
the limitations applicable to depository institutions under ORS 746.213 to
746.219. For the purpose of this paragraph, “depository institution” has the
meaning given that term in ORS 746.213. [1997 c.631 §119; 1997 c.772 §31b; 1997
c.831 §2a; 2001 c.191 §52; 2001 c.377 §47; 2003 c.363 §7; 2003 c.364 §59a; 2005
c.80 §4; 2005 c.194 §1]
     708A.125
Stock in corporations acquired to strengthen capital or eliminate undesirable
assets. (1) Upon the written
application of the board of directors filed with the Director of the Department
of Consumer and Business Services and subject to the written approval of the
director and any limitations the director may prescribe, an institution may
carry fully paid and nonassessable capital stock of any other corporation as an
asset, if the stock is acquired for the purpose of strengthening the
institutionÂ’s capital structure or the elimination of undesirable assets.
     (2) The stock may be held for such period
as the director may determine, but in no event longer than 15 years.
     (3) This section is not applicable to any
stock that may be acquired in connection with the insurance of deposits, any
stock that may be acquired under ORS 708A.120, or any stock that may be
purchased as a part of any transaction in which an institution borrows from the
United States or an agency of the United States. This section does not repeal
or in any way limit or modify ORS 711.470. [1997 c.631 §120]
     708A.130
Definition for ORS 708A.135 to 708A.145. As used in ORS 708A.135 to 708A.145, unless the context requires
otherwise, “invest” includes any advance of funds to a bank service
corporation, whether by the purchase of stock, the making of a loan or
otherwise, but does not include a payment for rent earned, goods sold and
delivered or services rendered prior to the making of the payment. [1997 c.631 §121]
     708A.135
Investment in bank service corporation. An
     708A.140
Discrimination by bank service corporation prohibited against nonstockholding
depository institution; permitted conduct. A bank service corporation shall not unreasonably discriminate in the
provision of any services authorized under ORS 708A.130 to 708A.145 against any
financial institution that does not own stock in the bank service corporation
on the basis of the fact that the nonstockholding financial institution is in
competition with a financial institution that owns stock in the bank service
corporation, except that:
     (1) It shall not be considered
unreasonable discrimination for a bank service corporation, at its option, to either:
     (a) Provide services to nonstockholding
financial institutions only at a price that fully reflects all of the costs of
offering those services, including the cost of capital and a reasonable return
thereon; or
     (b) If an Oregon commercial bank is authorized
under ORS 708A.135 to invest in a bank service corporation, the bank service
corporation may require that the Oregon commercial bank invest in the stock of
the bank service corporation, in which case the bank service corporation shall
provide services to the Oregon commercial bank on the same basis as for other
stockholder financial institutions of the bank service corporation.
     (2) A bank service corporation may refuse
to provide services to a nonstockholding financial institution if comparable services
are available from another source at competitive overall costs, or if the
providing of services would be beyond the practical capacity of the bank
service corporation. [1997 c.631 §123]
     708A.145
Authorized services of bank service corporations; sale of insurance; regulation
of services. (1) A bank
service corporation may perform any of the following services for financial
institutions:
     (a) Check and deposit sorting and posting;
     (b) Computation and posting of interest
and other credits and charges;
     (c) Preparation and mailing of checks,
statements, notices and similar items; or
     (d) Any other clerical, bookkeeping,
accounting, statistical or similar functions performed for a financial
institution.
     (2) In addition to the services that may
be performed by a bank service corporation for financial institutions under
subsection (1) of this section, a bank service corporation:
     (a) May perform for any person any service
that may lawfully be performed by all shareholders of the bank service
corporation, or by any holding company or subsidiary of any such shareholder,
except that a bank service corporation shall not take deposits.
     (b) With respect to the sale of insurance,
shall be subject to the limitations applicable to depository institutions under
ORS 746.213 to 746.219. For the purpose of this paragraph, “depository
institution” has the meaning given that term in ORS 746.213.
     (3) A banking institution may not cause to
be performed, by contract or otherwise, any of the services described in
subsection (1) of this section for itself, whether on or off its premises,
unless assurances satisfactory to the Director of the Department of Consumer
and Business Services are furnished to the director by both the banking
institution and the person performing the services that the performance of the
services will be subject to regulation and examination by the director to the
same extent as if the services were performed by the banking institution itself
on its own premises.
     (4) The director may regulate and examine
the performance of the services described in subsection (1) of this section for
financial institutions, and may regulate and examine the performance by bank
service corporations of the services described in subsection (2) of this
section. [1997 c.631 §124; 2003 c.363 §8]
     708A.150
Community development corporations; authority to invest or organize;
conditions; corporate form; functions. (1) As provided in this section:
     (a) A banking institution may invest its
capital in a community development corporation.
     (b) A banking institution may organize a
community development corporation as a wholly owned subsidiary of the banking
institution and invest its capital in the corporation.
     (2) A banking institution may invest in or
organize and invest in a community development corporation under subsection (1)
of this section, if the following conditions are satisfied:
     (a) The projects undertaken by the
community development corporation must be predominantly of a civic, community
or public nature, and not merely of a private or entrepreneurial nature.
     (b) The banking institution’s aggregate
investment in community development corporations and their projects must not
exceed two percent of its capital for any project and five percent of its
capital for all projects, or 10 percent of its capital for all projects with
the approval of the Director of the Department of Consumer and Business
Services.
     (c) The banking institution must submit to
the director its proposal for investing in or organizing and investing in a
community development corporation and the proposal must receive the directorÂ’s
approval.
     (d) The membership of the board of
directors of the community development corporation must be representative of
the community in which the corporation is to operate.
     (3) A community development corporation
may be organized as a for-profit corporation under ORS chapter 60 or as a
nonprofit corporation under the Oregon Nonprofit Corporation Law. A community
development corporation must be authorized under its articles of incorporation
or applicable law to:
     (a) Acquire real estate. This paragraph
does not authorize real estate investment that is primarily speculative in
nature.
     (b) Make equity investments in small
businesses and in development projects that primarily benefit small businesses.
     (c) Participate in joint ventures with
outside partners.
     (4) A banking institution wishing to
invest in or organize and invest in a community development corporation shall
submit to the director, on an application form designed by the director, a
proposal that describes in detail the nature and scope of development
activities the community development corporation intends to undertake.
     (5) The director may submit an application
to any appropriate state agency or city, county or other local government for
its advice and assistance on determining the need and practicability of the
projects proposed in the application. [1997 c.631 §125]
     708A.155
Investment in foreign banks. (1)
Upon the approval of the Director of the Department of Consumer and Business
Services and subject to rules promulgated by the director pursuant to ORS
183.310, 183.315, 183.330, 183.335 and 183.341 to 183.410, an institution may
invest an amount not exceeding in the aggregate 10 percent of its stockholdersÂ’
equity in the stock of banks or corporations chartered or incorporated under
the laws of the United States or of any other state. Such banks or corporations
shall be principally engaged in international or foreign banking, or banking in
a dependency or insular possession of the United States, either directly or
through the agency, ownership or control of local institutions in foreign
countries, or in such dependencies or insular possessions, including the stock
of one or more banks or corporations chartered or incorporated under section
25(a) of the Federal Reserve Act, as approved December 24, 1919.
     (2) An institution shall file with the
director an application for permission to exercise the powers established in
subsection (1) of this section. The application shall specify the name,
stockholdersÂ’ equity of the institution filing it, the powers applied for and
the place or places where the banking operations are to be carried on.
     (3) The director may approve or reject the
application, in whole or in part, if the granting of the application is
considered inexpedient. The director may increase or decrease the number of
places where the banking operations may be carried on.
     (4) Before an institution may purchase
stock in any corporation mentioned in subsection (1) of this section, the
corporation shall agree to restrict its operations or conduct its business in
the manner and under the limitations prescribed by the director for the places
in which the business is to be conducted.
     (5) If the director determines that the
limitations prescribed are not being complied with, the director may
investigate the matter. If the investigation shows that the corporation, or the
institution holding stock in the corporation, has not complied with the
limitations, the director may require the institution to dispose of stock
holdings in the corporation.
     (6) An institution investing in the
capital stock of banks or corporations, as provided in subsection (1) of this
section, shall furnish information concerning the condition of the banks or
corporations to the director upon demand, and the director may order special
examinations of the banks or corporations. [1997 c.631 §126; 1999 c.59 §216]
     708A.160
Corporation created to establish ATMs; banking institution as stockholder. A banking institution may, subject to the
approval of the Director of the Department of Consumer and Business Services,
acquire and continue to hold a membership in or the fully paid stock of a
corporation created to establish and operate ATM facilities. [1997 c.631 §127]
     708A.165
Membership in Federal Reserve System; member bank, officers, directors and
shareholders subject to duties and liabilities imposed by laws of this state. (1) Any
     (2) An
     (3) An
     708A.170
Securities powers. An
institution may, with the approval of the Director of the Department of
Consumer and Business Services, purchase, sell, issue, underwrite and deal in
securities to the same extent national banks may do so. [1997 c.631 §129]
     708A.175
Right to purchase, hold and dispose of real and personal property. An institution may purchase, hold, convey,
sell or lease:
     (1) The real estate and improvements
thereto in which the business of the institution is carried on, including, with
its offices, other space in the same building to rent as a source of income.
     (2) Furniture, fixtures, vaults, safe
deposit boxes and other personal property necessary or convenient to carrying
on the business of the institution.
     (3) Real or personal property purchased by
or conveyed to the institution in satisfaction of or on account of debts
previously contracted in the course of its business, or otherwise acquired in
the course of collecting debts.
     (4) Real estate purchased at execution
sale or under a judgment.
     (5) Real estate conveyed to the
institution in connection with its purchase of a bona fide contract of sale
covering the real estate conveyed.
     (6) Real estate purchased with the
approval of the Director of the Department of Consumer and Business Services
for the purpose of future location or expansion of the business of the
institution.
     (7) Real estate held in trust and real
estate purchased with assets other than those of the institution. [1997 c.631 §131;
2003 c.576 §545]
     708A.180
Acquisition of personal property for leasing purposes. An
     708A.185
Purchase of real estate contracts. Institutions may purchase the vendorÂ’s interest in bona fide contracts
covering the sale of real estate that comply with the requirements of ORS
708A.270. [1997 c.631 §133]
     708A.190
Acceptance of drafts and bills of exchange; issuance of letters of credit;
obligation for participation share in bills; rules. (1) An Oregon commercial bank may accept
drafts or bills of exchange drawn upon it having not more than six monthsÂ’
sight to run, exclusive of days of grace, that grow out of transactions
involving the importation or exportation of goods, or that grow out of the
domestic shipment of goods, or that are secured at the time of acceptance by a
warehouse receipt or other such document conveying or securing title covering
readily marketable staples.
     (2) An Oregon commercial bank shall not
accept drafts or bills of exchange or issue letters of credit, whether in a
foreign or domestic transaction, for any one person to an amount equal at any
one time in the aggregate to more than 20 percent of its capital, unless the
Oregon commercial bank is fully secured either by attached documents or by some
other actual security growing out of the same transaction as the acceptance or
letter of credit.
     (3) Except as provided in subsection (5)
of this section, an
     (4) An Oregon commercial bank may accept
drafts or bills of exchange drawn upon it having not more than six monthsÂ’
sight to run, exclusive of days of grace, drawn under rules prescribed by the
Director of the Department of Consumer and Business Services or bankers in
foreign countries or dependencies or insular possessions of the United States
for the purpose of furnishing dollar exchange, as required by the usages of trade
in the respective countries, dependencies or insular possessions. An
     (5) The director, under such conditions as
the director may prescribe, may authorize, by rule or order, any
     708A.195
Disposition of real and personal property. (1) An institution shall promptly dispose of all real and personal
property that the institution is not authorized to own or hold under the Bank
Act.
     (2) All real estate acquired by an
institution pursuant to ORS 708A.175 (3) and (4) shall be sold or exchanged for
other real estate within 15 years after title has vested in it, unless the time
is extended by the Director of the Department of Consumer and Business
Services. Title is deemed vested for purposes of this section on the date the
institution is first entitled to receive a deed to the real estate. Real estate
may not be exchanged for other real estate without the prior written consent of
the director. An institution may hold real estate taken in exchange for other
real estate for such period of time as the director may fix, not to exceed 15
years from the date of the exchange.
     (3) All personal property acquired by an
institution pursuant to ORS 708A.175 (3) shall be promptly disposed of. [1997
c.631 §135]
     708A.200 [1997 c.631 §136; 2001 c.191 §53; 2001 c.377
§48; repealed by 2003 c.363 §16]
     708A.210
Challenge to validity of institution action; prohibition; exceptions. (1) Except as provided in subsection (2) of
this section, the validity of an institutionÂ’s action may not be challenged on
the grounds that the institution lacks or lacked power to act.
     (2) An institution’s power to act may be
challenged:
     (a) In a proceeding by a stockholder
against the institution to enjoin the act;
     (b) In a proceeding by the institution,
directly, derivatively or through a receiver, trustee or other legal
representative, against an incumbent or former director, officer, employee or
agent of the institution; or
     (c) By the Director of the Department of
Consumer and Business Services.
     (3) In a stockholder’s proceeding under
subsection (2)(a) of this section to enjoin an unauthorized act, the court may
enjoin or set aside the act if equitable and if all affected persons are
parties to the proceeding, and may award damages for loss other than
anticipated profits suffered by the institution or another party because of
enjoining the unauthorized act. [1997 c.631 §137]
LOANS
GENERALLY
     708A.250
Lending money. Except as
specifically limited by the Bank Act and other applicable law, institutions
have the general power to loan money upon terms and conditions that are
consistent with safe and sound banking practices. [1997 c.631 §138]
     708A.255
Interest rates on loans or uses of money; late charges. (1) Except as otherwise provided in this
section, there is no limitation on the rate of interest or on the amount of
other charges that a financial institution may contract for and receive for a
loan or use of money.
     (2) If a loan made by a financial
institution is repaid before maturity, the unearned portion of the charges, if
any, shall be refunded or credited to the borrower as provided in this
subsection. The amount of the refund shall not be less than the total interest
contracted for to maturity, less the greater of:
     (a) Ten percent of the amount financed, or
$75, whichever is less; or
     (b) The interest earned to the installment
due date nearest the date of prepayment, computed by applying the simple
interest rate of the loan to the actual principal balances outstanding, for the
periods of time the balances were actually outstanding. For purposes of rebate
computations under this paragraph, the installment due date preceding the date
of prepayment shall be considered to be nearest if prepayment occurs 15 days or
less after that installment date. If prepayment occurs more than 15 days after
the preceding installment due date, the next succeeding installment due date shall
be considered to be nearest the date of prepayment. In determining the simple
interest rate, the lender may apply to the scheduled payments the actuarial
method, by which each scheduled payment is applied first to accrued and unpaid
interest and any amount remaining is applied to reduction of the principal
balance.
     (3) Any installment of an installment loan
or payment under an open-end credit arrangement that is not paid when due shall
continue to bear interest until paid. In addition, if the installment or
payment is not paid when due, the installment or payment may bear a late charge
in such amount as is agreed to by the lender and the borrower. However, except
for loans secured by real property, the lender may impose a late charge only
if:
     (a) The installment or payment is not
received by the lender within 10 days after the due date or, if the open-end
credit arrangement is a credit card account, the payment is not received by the
lender on or before the due date;
     (b) The loan agreement or open-end credit
arrangement provides for a late charge upon delinquent installments or
payments; and
     (c) A monthly billing, coupon or notice is
provided by the lender disclosing the date on which installments or payments
are due and that a late charge may be imposed if payment is not received by the
lender within 10 days thereafter or, in the case of an open-end credit
arrangement that is a credit card account, that a late charge may be imposed if
payment is not received by the lender on or before the date on which the
payment is due. However, if the lender and the borrower have provided in the
note or other written loan agreement that the payments on the loan shall be
made by the means of automatic deductions from a deposit account maintained by
the borrower, the lender shall not be required to provide the borrower with a
monthly billing, coupon or notice under this paragraph with respect to any
occasion on which there are insufficient funds in the borrowerÂ’s account to
cover the amount of a loan payment on the date the loan payment becomes due and
within the periods described in paragraph (a) of this subsection. [1997 c.631 §139;
1997 c.631 §139a; 2001 c.440 §1]
     708A.260
Accepting own stock as collateral. An institution shall not accept as collateral its own capital stock,
except where the taking of such collateral is necessary to prevent loss upon an
indebtedness previously contracted in good faith. If such indebtedness is not
paid in full within six months from the date such stock was taken as
collateral, the stock shall be promptly sold by the institution. [1997 c.631 §140]
     708A.265
Accepting stock of other institutions as collateral. An institution shall not accept or hold as
loan collateral in the aggregate more than 25 percent of the capital stock of
any other insured stock institution. [1997 c.631 §141]
     708A.270
Real estate loans. (1) With
respect to any loans secured primarily by real estate, an
     (2) All loans made by an
     708A.275
Establishment of loan production office; notice; fee. (1) A financial institution shall file a
notice with the Director of the Department of Consumer and Business Services
within 30 days of establishing a loan production office in this state. The
notice shall include:
     (a) The name of the financial institution
and address of the main office;
     (b) The name and address of the loan
production office; and
     (c) The name and address of the officer of
the financial institution responsible for loan production office activities.
     (2) A notice shall be filed for each loan
production office in this state.
     (3) Each notice filed under subsection (1)
of this section shall be:
     (a) Accompanied by a nonrefundable fee of
$100.
     (b) Amended when there is a material
change in the information provided pursuant to subsection (1) of this section.
No fee is required for amendments.
     (4) A financial institution shall notify
the director of the closure of a loan production office in this state, the date
of closure and the disposition of any records previously maintained at the loan
production office subject to closure. No fee is required for a notice of
closure. [1999 c.107 §5]
LOAN AND
OTHER OBLIGATION LIMITS
     708A.290
“Capital” defined for ORS 708A.290 to 708A.375. As used in ORS 708A.290 to 708A.375, the
term “capital,” when referring to an Oregon commercial bank, means tier 1 and
tier 2 capital, as defined under the federal risk-based capital guidelines of
the appropriate federal banking agency and issued under 12 U.S.C. 1813, plus
the balance of allowance for loan and lease losses excluded from tier 2
capital. The amounts described in this section shall be determined from the
most recent consolidated report of condition and income filed under 12
U.S.C. 1817(a)(3). [1997 c.631 §143]
     708A.295
Limitations on amount of obligations to
     708A.300
Obligations secured by readily marketable collateral. In addition to obligations permitted under
ORS 708A.295, an Oregon commercial bank may make loans to or acquire other
obligations of a person, not to exceed 10 percent of its capital, if:
     (1) The loans or obligations are fully
secured by readily marketable collateral having a market value that may be
determined by reliable and continuously available price quotations;
     (2) The market value is at least 15
percent greater than the amount of the obligation at the time it is incurred;
and
     (3) The market value is at all times while
the obligation is outstanding at least 100 percent of the balance of principal,
interest and other charges applicable to the obligation. [1997 c.631 §145]
     708A.305
Obligations of other financial institutions. In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may acquire obligations of other financial institutions without
regard to amount in the form of time or demand deposits that it places with
such other financial institutions. [1997 c.631 §146]
     708A.310
Obligations of indorser of discounted commercial paper. (1) In addition to obligations permitted
under ORS 708A.295, an Oregon commercial bank may acquire obligations of a
person without regard to amount as an indorser, arising out of the discount of
commercial or business paper owned by the person negotiating the paper.
     (2) As used in this section, “commercial
or business paper” means negotiable notes, drafts, acceptances or bills of
exchange having a maturity of not more than six months, that have been given by
one person to another in settlement of a commercial or business transaction
involving the purchase of goods, and upon which both parties to the transaction
are liable either as maker, drawer, acceptor or indorser. [1997 c.631 §147]
     708A.315
Noncommercial short-term notes.
In addition to obligations permitted under ORS 708A.295, an Oregon commercial
bank may acquire obligations of a person, not to exceed 15 percent of the bankÂ’s
capital, as an indorser or guarantor of notes, other than commercial or business
paper excepted under ORS 708A.310, having a maturity of not more than six
months, and owned by the person indorsing and negotiating the same. [1997 c.631
§148]
     708A.320
Obligations secured by shipping documents. In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to or acquire other obligations of a person
without regard to amount, provided the obligations are fully secured by
shipping documents conveying or securing title to goods or commodities in process
of shipment. [1997 c.631 §149]
     708A.325
Installment consumer paper.
(1) In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may acquire obligations of a person, not to exceed 25 percent
of the Oregon commercial bankÂ’s capital, as an indorser or guarantor of
negotiable or nonnegotiable installment consumer paper that carries a full or
partial recourse indorsement or unconditional guarantee by the person
transferring the obligation and conforms to rules prescribed by the Director of
the Department of Consumer and Business Services.
     (2) The 25 percent limitation of
subsection (1) of this section does not apply to the extent the Oregon
commercial bank relies primarily on the obligors on the consumer paper for the
payment of the consumer paper, the Oregon commercial bank has reasonably
adequate knowledge of the financial condition of the obligors on the consumer
paper and an officer of the Oregon commercial bank certifies in writing that
the creditworthiness of the obligors on the consumer paper has been evaluated.
The certificate shall be retained as part of the records of the
     708A.330
BankersÂ’ acceptances of other financial institutions. In addition to obligations permitted under
ORS 708A.295, an
     708A.335
Obligations secured by documents covering readily marketable staples. (1) In addition to obligations permitted
under ORS 708A.295, an
     (a) 15 percent of the
     (b) 20 percent of the
     (c) 25 percent of the
     (d) 35 percent of the
     (e) 40 percent of the
     (2) If it is customary to insure the
staples mentioned in subsection (1) of this section, the staples shall be fully
covered by insurance.
     (3) This section does not apply to
obligations of a person secured by the same staples for more than 10 months.
     (4) Staples, for purposes of this section,
in addition to being readily marketable, must be either:
     (a) Nonperishable; or
     (b) Perishable, but frozen, freeze-dried,
irradiated or refrigerated for the purpose of protecting the staple against
deterioration. [1997 c.631 §152]
     708A.340
Obligations secured by documents covering livestock. In addition to obligations permitted under
ORS 708A.295, an Oregon commercial bank may make loans to and acquire other
obligations of a person, not to exceed 15 percent of the Oregon commercial bankÂ’s
capital, secured by documents of title covering livestock if the principal
amount of the obligation is not more than 80 percent of the market value of the
livestock.
     708A.345
Obligations secured by government obligations or shares of mutual fund or unit
trust. In addition to
obligations permitted under ORS 708A.295, an Oregon commercial bank may make
loans to and acquire other obligations of any person if the obligation is
secured by one or more of the following types of security and the principal
amount of the obligation is not more than 90 percent of the market value of the
security:
     (1) Obligations of the
     (2) Obligations of public housing agencies
issued pursuant to the United States Housing Act of 1937, as amended;
     (3) Obligations of the State of Oregon or
any county, city, school district, port district or other public body with the
power to levy taxes issued pursuant to the Constitution or statutes of the
State of Oregon or the charter or ordinances of any county or city within the
State of Oregon, if the issuing body has not been in default with respect to
the payment of principal or interest on any of its obligations within five
years preceding the date of the investment; or
     (4) Shares in any mutual fund or unit
trust, the assets of which are invested solely in obligations of the type
described in subsections (1) to (3) of this section. [1997 c.631 §154]
     708A.350
Obligations secured by government bonds. In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to and accept other obligations of a person, not
to exceed 20 percent of the Oregon commercial bankÂ’s capital, if:
     (1) The obligation is secured by bonds of
any state of the United States or bonds of any county, city, school district,
port district or other public body in the United States;
     (2) The principal amount of the obligation
is not more than 90 percent of the market value of the bonds that secure the
obligation;
     (3) The bonds are payable from ad valorem
taxes; and
     (4) The bonds are rated in one of the four
highest grades by a recognized investment service organization that has been
engaged regularly and continuously for a period of not less than 10 years in
rating state and municipal bonds. [1997 c.631 §155]
     708A.355
Insured and guaranteed obligations. In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to and acquire other obligations of a person
without regard to amount to the extent the obligations are insured, guaranteed
or covered by commitments or agreements to take over or purchase made by a
private mortgage insurance company, the State of Oregon, any Federal Reserve
Bank, the United States or any department, bureau, board, commission or agency
of the United States, including any corporation wholly owned, directly or
indirectly, by the United States. [1997 c.631 §156]
     708A.360
Obligations secured by deposits. (1) In addition to obligations permitted under ORS 708A.295, an Oregon
commercial bank may make loans to and acquire other obligations of a person
without regard to amount to the extent the obligations are fully secured by any
kind of deposit held by the Oregon commercial bank, including but not limited
to deposits held in an automatic savings to checking transfer account or a
negotiable order of withdrawal account.
     (2) In addition to obligations permitted
under ORS 708A.295, an Oregon commercial bank may make loans to and acquire
other obligations of a person without regard to amount to the extent the
obligations are fully secured at all times by any kind of deposit, including
but not limited to deposits held in an automatic savings to checking transfer
account or a negotiable order of withdrawal account that are fully insured, guaranteed
or underwritten by the United States Government or any agency or
instrumentality of the United States by virtue of any Act of Congress or
amendments thereto. [1997 c.631 §157]
     708A.365
Obligations secured by life insurance policy values. In addition to obligations permitted under
ORS 708A.295, an Oregon commercial bank may make loans to and acquire
obligations of a person not to exceed 10 percent of the Oregon commercial bankÂ’s
capital that are secured by a life insurance policy having a cash surrender
value of not less than 100 percent of the amount of the obligations, plus an
amount equal to one annual premium on the insurance policy. [1997 c.631 §158]
     708A.370
Obligations secured by first lien on real estate. In addition to obligations permitted by ORS
708A.295, an Oregon commercial bank may make loans to and acquire other
obligations of a person not to exceed 10 percent of the Oregon commercial bankÂ’s
capital that are secured by a first lien on real estate if the obligation does
not exceed 80 percent of the fair market value of the real estate as determined
by an independent appraisal. Obligations secured by a first lien on real estate
that are subject to ORS 708A.295 may become exempt from ORS 708A.295 if:
     (1) Title to the real estate has, in good
faith, passed to another and the original maker of the note is no longer either
directly or through some other person the owner of the real estate;
     (2) The new owner has assumed the
obligation and the
     (3) The obligation is not in default at
the time the obligation becomes no longer subject to ORS 708A.295; and
     (4) The obligation does not exceed 80
percent of the fair market value of the real estate at the time the obligation
becomes no longer subject to ORS 708A.295. [1997 c.631 §159]
     708A.375
Obligations of guarantors. In addition to obligations permitted by ORS
708A.295, an Oregon commercial bank may acquire obligations of a person, in the
form of a guaranty or otherwise, without regard to amount, on account of
obligations previously contracted in good faith or to reduce the risk of loss.
Any such obligations shall, however, be subject to ORS 708A.295 in determining
whether the
DEPOSITS
     708A.400
Deposit accounts.
     708A.405
Deposits; FDIC insurance required.
     708A.410
Savings accounts; conditions for withdrawal; interest rate. (1) Within the limits established under
applicable federal statutes and regulations, an
     (2) A bank may require 30 days’ notice to
withdraw any sum up to $5,000, 90 daysÂ’ notice to withdraw any sum over $5,000
and not over $50,000, and 180 daysÂ’ notice to withdraw any sum over $50,000.
Withdrawals during a specified time period may be limited in the aggregate to
the amount designated for that time period.
     (3) Except for negotiable orders of
withdrawal and similar deposit accounts, withdrawal from which is made subject
to check, an
     708A.415
Securing deposits by surety bond, letter of credit or insurance. (1) An Oregon commercial bank may secure any
of the funds deposited with the Oregon commercial bank by giving a surety bond,
an irrevocable letter of credit issued by an insured institution, as defined in
ORS 706.008, or a policy of insurance under which some person other than the
Oregon commercial bank becomes liable for deposits, provided that the aggregate
face amount of the bonds, letters of credit and policies of insurance does not
exceed 20 percent of the capital of the Oregon commercial bank.
     (2) A depositor may insure any deposit if
the
     708A.420
Notice to depositor upon change in terms, charges, withdrawal conditions or
decrease in interest rate; exception. (1) If an
     (2) The provisions of subsection (1) of
this section shall not apply to any change in the interest rate payable upon an
account as described in ORS 86.245. [1997 c.631 §165]
     708A.425
Deposit made in name of minor.
Any deposit to a financial institution made to an account in the name of a
minor shall be held for the exclusive right and benefit of the minor free from
the control or lien of all other persons, except other parties to the account
and creditors, and shall be paid, in accordance with the terms of the account,
together with any interest thereon, to or upon the order of the minor. [1997
c.631 §166]
     708A.430
Disposition of deposit on death of depositor. (1) On the death of a depositor of a financial institution, if the
deposit is $25,000 or less, the financial institution may, upon receipt of an
affidavit from the person claiming the deposit as provided in subsection (2) of
this section, pay the moneys on deposit to the credit of the deceased
depositor:
     (a) To the surviving spouse on demand of
the surviving spouse at any time after the death of the depositor;
     (b) If there is no surviving spouse, to
the Department of Human Services, on demand of the department no less than 46
days and no more than 75 days from the death of the depositor when there is a
preferred claim arising under ORS 411.708, 411.795 or 414.105;
     (c) If there is no surviving spouse and no
department claim, to the depositorÂ’s surviving children 18 years of age or
older;
     (d) If there is no surviving spouse,
department claim or surviving child 18 years of age or older, to the depositorÂ’s
surviving parents; or
     (e) If there is no surviving spouse,
department claim, surviving child 18 years of age or older or surviving parent,
to the depositorÂ’s surviving brothers and sisters 18 years of age or older.
     (2) The affidavit shall:
     (a) State where and when the depositor
died;
     (b) State that the total deposits of the
deceased depositor in all financial institutions in
     (c) Show the relationship of the affiant
to the deceased depositor; and
     (d) Embody a promise to pay the expenses
of last sickness, funeral expenses and just debts of the deceased depositor out
of the deposit to the full extent of the deposit if necessary, in the order of
priority prescribed by ORS 115.125, and to distribute any remaining moneys to
the persons who are entitled to those moneys by law.
     (3) In the event the depositor died
intestate without known heirs, an estate administrator of the Department of
State Lands appointed under ORS 113.235 shall be the affiant and shall receive
the moneys as escheat property.
     (4) The financial institution shall
determine the relationship of the affiant to the deceased depositor. However,
payment of the moneys in good faith to the affiant discharges and releases the
transferor from any liability or responsibility for the transfer in the same
manner and with the same effect as if the property had been transferred,
delivered or paid to a personal representative of the estate of the deceased
depositor.
     (5) A probate proceeding is not necessary
to establish the right of the surviving spouse, department, surviving child,
surviving parent, surviving brothers and sisters or an estate administrator of
the Department of State Lands to withdraw the deposits upon the filing of the
affidavit. If a personal representative is appointed in an estate where a
withdrawal of deposits was made under this section, the person withdrawing the
deposits shall account for them to the personal representative.
     (6) When a financial institution transfers
moneys under subsection (1) of this section, the transferor may require the
transferee to furnish the transferor a written indemnity agreement,
indemnifying the transferor against loss for moneys paid to the extent of the
amount of the deposit.
     (7) This section is subject to the rights
of other parties in the account under ORS 708A.455 to 708A.515. [1997 c.631 §167;
2003 c.395 §20; 2005 c.381 §26; 2007 c.369 §1]
     708A.435
Adverse claim to deposit; notice; restraining order or other process; indemnity
bond or letter of credit.
(1) An Oregon operating institution shall be obligated to recognize an adverse
claim to a deposit it holds only if the adverse claimant gives notice to the
Oregon operating institution of its claim and:
     (a) Procures a restraining order,
injunction or other appropriate process against the Oregon operating
institution in an action wherein the person to whose credit the deposit stands
is made a party and served with summons; or
     (b) Delivers to the Oregon operating
institution in a form, and with sureties acceptable to the Oregon operating
institution, a bond or an irrevocable letter of credit issued by an insured
institution, as defined in ORS 706.008, indemnifying the Oregon operating
institution from any liability, damage and expenses on account of the payment
of the adverse claim or the dishonor of the check or other order of the person
to whose credit the deposit stands.
     (2) This section does not apply where the
person in whose name the account is carried is a fiduciary for the adverse
claimant, and the affidavit of the adverse claimant states the facts
constituting the fiduciary relationship and the facts showing reasonable cause
of belief on the part of the claimant that the fiduciary is about to
misappropriate the deposit.
     (3) An
     708A.440
Checks drawn by agents presumed to be in authorized manner. If a person who owns a deposit account
subject to check authorizes another person as agent to draw checks against the
account, the financial institution, in the absence of written notice to the
contrary, may presume that any check drawn by the agent in the manner
authorized by the terms and conditions of the account, including checks drawn
to the personal order of the agent, is drawn for a purpose authorized by the
principal and within the scope of the authority conferred upon the agent. [1997
c.631 §169]
     708A.445
Checks of intoxicated or drugged persons. An Oregon commercial bank or a national bank may refuse to pay any
check, draft or order drawn upon it when the officers or employees of the bank
have reason to believe that the person signing or indorsing the instrument was
so under the influence of liquor, drugs or controlled substances or that the
person is otherwise so incapacitated as to make it reasonably doubtful whether
the person was at the time of signing or indorsing the check, draft or order
capable of transacting business. [1997 c.631 §170]
     708A.450
Certified checks. (1) An
     (2) The amount of any certified check
shall be immediately charged to the drawer’s account. [1997 c.631 §171]
     708A.455
Definitions for ORS 708A.455 to 708A.515. As used in ORS 708A.455 to 708A.515, unless the context requires
otherwise:
     (1) “Account” means a contract of deposit
of funds between a depositor and a financial institution, and includes a
checking account, savings account, certificate of deposit and share account.
     (2) “Beneficiary” means a person named in
a trust account as one for whom a party to the account is named as trustee.
     (3) “Joint account” means an account
payable on request to one or more of two or more parties whether or not mention
is made of any right of survivorship.
     (4) “Multiple-party account” means a joint
account, a P.O.D. account or a trust account. “Multiple-party account” does not
include accounts established for deposit of funds of a partnership, joint
venture or other association for business purposes, or accounts controlled by
one or more persons as the duly authorized agent or trustee for a corporation,
unincorporated association, charitable or civic organization or a regular
fiduciary or trust account where the relationship is established other than by
deposit agreement.
     (5) “Net contribution” of a party to a
joint account as of any given time means the sum of all deposits thereto made
by or for the party, less all withdrawals made by or for the party that have
not been paid to or applied to the use of any other party, plus a pro rata
share of any interest or dividends included in the current balance. The term
includes, in addition, any proceeds of deposit life insurance added to the
account by reason of the death of the party whose net contribution is in
question.
     (6) “Party” means a person who, by the
terms of the account, has a present right, subject to request, to payment from
a multiple-party account. A P.O.D. payee or beneficiary of a trust account is a
party only after the account becomes payable to the payee or beneficiary by
reason of the payeeÂ’s or beneficiaryÂ’s surviving the original party or trustee.
Unless the context requires otherwise, “party” includes a guardian,
conservator, personal representative or assignee, including an attaching
creditor, of a party. “Party” also includes a person identified as a trustee of
an account for another whether or not a beneficiary is named, but it does not
include any named beneficiary unless the named beneficiary has a present right
of withdrawal.
     (7) “Payment” of sums on deposit includes
withdrawal, payment on check or other directive of a party, and any pledge of
sums on deposit by a party and any setoff, reduction or other disposition of
all or part of an account pursuant to a pledge.
     (8) “P.O.D. account” means an account
payable on request to one person during the lifetime of the person and on the
death of the person to one or more P.O.D. payees, or to one or more persons
during their lifetimes and on the death of all of them to one or more P.O.D.
payees.
     (9) “P.O.D. payee” means a person designated
on a P.O.D. account as one to whom the account is payable on request after the
death of one or more persons.
     (10) “Request” means a proper request for
withdrawal, or a check or order for payment, that complies with all conditions
of the account, including special requirements concerning necessary signatures
and regulations of the financial institution. If the financial institution
conditions withdrawal or payment on advance notice, for purposes of ORS
708A.455 to 708A.515, the request for withdrawal or payment is treated as
immediately effective and a notice of intent to withdraw is treated as a
request for withdrawal.
     (11) “Sums on deposit” means the balance
payable on a multiple-party account including interest, dividends and, in
addition, any deposit life insurance proceeds added to the account by reason of
the death of a party.
     (12) “Trust account” means an account in
the name of one or more parties as trustee for one or more beneficiaries where
the relationship is established by the form of the account and the deposit
agreement with the financial institution, and there is no subject of the trust
other than the sums on deposit in the account. It is not essential that payment
to the beneficiary be mentioned in the deposit agreement. A trust account does
not include a regular trust account under a testamentary trust or a trust
agreement that has significance apart from the account, or a fiduciary account
arising from a fiduciary relationship such as attorney-client.
     (13) “Withdrawal” includes payment to a
third person pursuant to check or other directive of a party. [1997 c.631 §172]
     708A.460
Application of ORS 708A.465 to 708A.475; liability and setoff rights of financial
institutions. The provisions
of ORS 708A.465 to 708A.475 concerning beneficial ownership as between parties,
or as between parties and P.O.D. payees or beneficiaries of multiple-party
accounts, are relevant only to controversies between those persons and their
creditors and other successors, and have no bearing on the power of withdrawal
of those persons as determined by the terms of account contracts. The
provisions of ORS 708A.485 to 708A.510 govern the liability of financial
institutions that make payments pursuant thereto, and their setoff rights. [1997
c.631 §173]
     708A.465
Ownership of multiple-party accounts. (1) A joint account belongs, during the lifetime of all parties, to
the parties in proportion to the net contributions by each to the sums on
deposit, unless there is clear and convincing evidence of a different intent.
     (2) A P.O.D. account belongs to the
original party during the lifetime of the party and not to the P.O.D. payee or
payees. If two or more persons are named as original parties, during their
lifetimes, rights as between them are governed by subsection (1) of this
section.
     (3) Unless a contrary intent is manifested
by the terms of the account or the deposit agreement or there is other clear
and convincing evidence of an irrevocable trust, a trust account belongs
beneficially to the trustee during the lifetime of the trustee. If two or more
parties are named as trustees on the account, during their lifetimes beneficial
rights as between them are governed by subsection (1) of this section. If there
is an irrevocable trust, the account belongs beneficially to the beneficiary. [1997
c.631 §174]
     708A.470
Multiple-party accounts; disposition of deposit upon death of party or trustee;
effect of will. (1) Sums
remaining on deposit in a bank at the death of a party to a joint account are
rebuttably presumed to belong to the surviving party or parties as against the
estate of the decedent. If there are two or more surviving parties, their
respective ownerships during their lifetimes shall be in proportion to their
previous ownership interests under ORS 708A.465 augmented by an equal share for
each survivor of any interest the decedent may have owned in the account
immediately before death. The right of survivorship continues between the
surviving parties.
     (2) If the account is a P.O.D. account:
     (a) On the death of one of two or more
original parties, the rights to any sums remaining on deposit are governed by
subsection (1) of this section.
     (b) On the death of the sole original
party or the survivor of two or more original parties, any sums remaining on
deposit belong to the P.O.D. payee or payees, if surviving, or to the survivor
of them if one or more die before the original party. If two or more P.O.D.
payees survive, there is no right of survivorship in the event of death of a
P.O.D. payee thereafter unless the terms of the account or deposit agreement
expressly provide for survivorship between them.
     (3) If the account is a trust account:
     (a) On the death of one of two or more
trustees, the rights to any sums remaining on deposit are governed by
subsection (1) of this section.
     (b) On the death of the sole trustee or
the survivor of two or more trustees, any sums remaining on deposit belong to
the person or persons named as beneficiaries, if surviving, or to the survivor
of them if one or more die before the trustee, unless there is clear and
convincing evidence of a contrary intent. If two or more beneficiaries survive,
there is no right of survivorship in event of death of any beneficiary
thereafter unless the terms of the account or deposit agreement expressly provide
for survivorship between them.
     (4) In other cases, the death of any party
to a multiple-party account has no effect on beneficial ownership of the
account, other than to transfer the rights of the decedent as part of the
estate of the decedent.
     (5) A right of survivorship arising from
the express terms of the account or under this section, a beneficiary
designation in a trust account, or a P.O.D. payee designation, cannot be
changed by will.
     (6) The rebuttable presumption under
subsection (1) of this section may be overcome by evidence establishing that:
     (a) The deceased party intended a
different result; or
     (b) The deceased party lacked capacity
when the joint account was established.
     (7) A bank is not liable for distributing
sums remaining on deposit at the death of a party to a joint account to a
surviving party or parties in accordance with the account agreement unless,
prior to distributing sums to a surviving party or parties:
     (a) The bank has received notice of an
adverse claim under ORS 708A.435; and
     (b) The adverse claimant proceeds as
required under ORS 708A.435. [1997 c.631 §175; 2003 c.256 §1]
     708A.475
Rights of survivorship based on form of account; alteration of form of account. The provisions of ORS 708A.470 as to rights
of survivorship are determined by the form of the account at the death of a
party. Subject to satisfaction of the requirements of the financial
institution, the form of an account may be altered by written order given by a
party to the financial institution. The order must be signed by a party,
received by the financial institution during the partyÂ’s lifetime, and not
countermanded by other written order of the same party during the lifetime of
the party. [1997 c.631 §176]
     708A.480
Transfer of moneys upon death of depositor or trustee is not testamentary
disposition. Any transfers
resulting from the application of ORS 708A.470 are effective by reason of the
account contracts involved and ORS 708A.470, and are not to be considered as
testamentary or subject to administration in the estate of a deceased party. [1997
c.631 §177]
     708A.485
Payment of deposit in multiple-party account to one or more parties;
institution not required to determine source or use of funds in account. Financial institutions may enter into multiple-party
accounts to the same extent that they may enter into single-party accounts. Any
multiple-party account may be paid, on request, to any one or more of the
parties. A financial institution shall not be required to inquire as to the
source of funds received for deposit to a multiple-party account, or to inquire
as to the proposed application of any sum withdrawn from an account, for
purposes of establishing net contributions. [1997 c.631 §178]
     708A.490
Joint account; payment to any party to account; payment to others. Any sums in a joint account may be paid, on
request, to any party without regard to whether any other party is
incapacitated or deceased at the time the payment is demanded. Payment may not
be made to the personal representative or heirs of a deceased party unless
proofs of death are presented to the financial institution showing that the
decedent was the last surviving party or unless there is no right of
survivorship under ORS 708A.470. [1997 c.631 §179]
     708A.495
P.O.D. account; payment to any original party; payment to others. Any P.O.D. account may be paid, on request,
to any original party to the account. Payment may be made, on request, to the
P.O.D. payee or to the personal representative or heirs of a deceased P.O.D.
payee upon presentation to the financial institution of proof of death showing
that the P.O.D. payee survived all persons named as original parties. Payment
may be made to the personal representative or heirs of a deceased original
party if proof of death is presented to the financial institution showing that
the decedent was the survivor of all other persons named on the account either
as an original party or as P.O.D. payee. [1997 c.631 §180]
     708A.500
Trust account; payment to any trustee; payment to others. Any trust account may be paid, on request,
to any trustee. Unless the financial institution has received written notice
that the beneficiary has a vested interest not dependent upon the beneficiaryÂ’s
surviving the trustee, payment may be made to the personal representative or
heirs of a deceased trustee if proof of death is presented to the financial
institution showing that the decedent was the survivor of all other persons
named on the account either as trustee or beneficiary. Payment may be made, on
request, to the beneficiary upon presentation to the financial institution of
proof of death showing that the beneficiary or beneficiaries survived all
persons named as trustees. [1997 c.631 §181]
     708A.505
Discharge of institution from liability for payments made; conditions. Payment made pursuant to ORS 708A.485,
708A.490, 708A.495 or 708A.500 discharges the financial institution from all
claims for amounts so paid whether or not the payment is consistent with the
beneficial ownership of the account as between parties, P.O.D. payees or
beneficiaries, or their successors. The protection given by this section does
not extend to payments made after a financial institution has received written
notice from any party able to request present payment to the effect that
withdrawals in accordance with the terms of the account should not be
permitted. Unless the notice is withdrawn by the person giving it, the
successor of any deceased party must concur in any demand for withdrawal if the
financial institution is to be protected under this section. No other notice or
any other information shown to have been available to a financial institution
shall affect its right to the protection provided by this section. The
protection provided by this section shall have no bearing on the rights of
parties in disputes between themselves or their successors concerning the
beneficial ownership of funds in, or withdrawn from, multiple-party accounts. [1997
c.631 §182]
     708A.510
Right of institution to setoff; amount. Without qualifying any other statutory or common law right to setoff
or lien and subject to any contractual provision, if a party to a
multiple-party account is indebted to a financial institution, the financial
institution has a right to setoff against the account in which the party has or
had immediately before the death of the party a present right of withdrawal.
The amount of the account subject to setoff is that proportion to which the
debtor is, or was immediately before the death of the debtor, beneficially
entitled and, in the absence of proof of net contributions, to an equal share
with all parties having present rights of withdrawal. [1997 c.631 §183]
     708A.515
Designation of agent for account; powers of agent. Nothing in ORS 708A.455 to 708A.465,
716.024, 723.426 or 723.432 shall preclude a party to an account from adding
the name of another person to such an account with the designation “agent.”
Such agent shall have no present or future interest in the sums on deposit in
such account, but the financial institution may honor requests for payment from
such account by such agent, unless the principal is deceased at the time the
payment is requested and the financial institution has actual knowledge of such
death. Payments from such account by such financial institution at the request
of such agent shall discharge such financial institution from all claims for
amounts so paid. [1997 c.631 §184]
GRANTING
SECURITY INTERESTS IN INSTITUTION ASSETS
     708A.535
Granting security interests in institution assets. (1) An institution may only grant security
interests in its assets:
     (a) To secure its indebtedness to a
Federal Reserve Bank or Federal Home Loan Bank.
     (b) To secure its borrowings from others
with a maturity of 90 days or less, provided the value of the assets pledged
shall not be more than 50 percent greater than the amount borrowed. If the
value of the assets pledged is more than 25 percent greater than the amount
borrowed or if the amount borrowed is greater than the stockholdersÂ’ equity of
the bank, the transaction shall first be approved in writing by the Director of
the Department of Consumer and Business Services.
     (c) To secure its deposits that are not
insured by the Federal Deposit Insurance Corporation provided:
     (A) The value of aggregate assets pledged
does not exceed 20 percent of its stockholdersÂ’ equity; and
     (B) The prior written approval of the
director is obtained.
     (d) To secure public funds pursuant to ORS
295.001 to 295.108, trust funds awaiting investment or distribution, or trust
funds deposited with it by an institution.
     (2) Notwithstanding any other provision of
state law, when an institution grants a security interest in assets to secure
public funds, the depositor of the public funds and any bailee of pledged
securities or other assets shall be entitled to the status of a lien creditor
as defined in ORS 79.0102.
     (3) An institution shall grant a security
interest in its assets only when authorized by a general or specific prior
resolution of its board of directors.
     (4) As used in this section, “public funds”
means deposits belonging to:
     (a) The State of
     (b) Any county within this state deposited
to the official credit of the county treasurer, including the funds of any
irrigation or drainage district organized under the laws of this state, or any
school district within this state where funds of the school district are deposited
with the county treasurer, and funds that may be deposited in an official
capacity by any county officer.
     (c) Any port, port commission, dock or
dock commission within this state that may be deposited to the credit of the
port, port commission, dock or dock commission, or the treasurer thereof.
     (d) Any city within this state deposited
to the official credit of the city treasurer, and funds that may be deposited
in an official capacity by any officer of any municipal corporation.
     (e) Any school district within this state.
     (f) Any district organized under the laws
of this state with the power to levy taxes.
     (g) Any housing authority organized and
operating pursuant to ORS 456.055 to 456.235.
     (h) The
     Note: The amendments to 708A.535 by section 31,
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 userÂ’s convenience.
     708A.535. (1) An institution may only grant security
interests in its assets:
     (a) To secure its indebtedness to a
Federal Reserve Bank or Federal Home Loan Bank.
     (b) To secure its borrowings from others
with a maturity of 90 days or less, provided the value of the assets pledged
shall not be more than 50 percent greater than the amount borrowed. If the
value of the assets pledged is more than 25 percent greater than the amount
borrowed or if the amount borrowed is greater than the stockholdersÂ’ equity of
the bank, the transaction shall first be approved in writing by the Director of
the Department of Consumer and Business Services.
     (c) To secure its deposits that are not
insured by the Federal Deposit Insurance Corporation provided:
     (A) The value of aggregate assets pledged
does not exceed 20 percent of its stockholdersÂ’ equity; and
     (B) The prior written approval of the
director is obtained.
     (d) To secure public funds, trust funds
awaiting investment or distribution, or trust funds deposited with it by an
institution.
     (2) Notwithstanding any other provision of
state law, when an institution grants a security interest in assets to secure
public funds, the depositor of the public funds and any bailee of pledged
securities or other assets shall be entitled to the status of a lien creditor
as defined in ORS 79.0102.
     (3) An institution shall grant a security
interest in its assets only when authorized by a general or specific prior
resolution or its board of directors.
     (4) As used in this section, “public funds”
means deposits belonging to:
     (a) The State of
     (b) Any county within this state deposited
to the official credit of the county treasurer, including the funds of any
irrigation or drainage district organized under the laws of this state, or any
school district within this state where funds of the school district are
deposited with the county treasurer, and funds that may be deposited in an
official capacity by any county officer.
     (c) Any port, port commission, dock or
dock commission within this state that may be deposited to the credit of the
port, port commission, dock or dock commission, or the treasurer thereof.
     (d) Any city within this state deposited
to the official credit of the city treasurer, and funds that may be deposited
in an official capacity by any officer of any municipal corporation.
     (e) Any school district within this state.
     (f) Any district organized under the laws
of this state with the power to levy taxes.
     (g) Any housing authority organized and
operating pursuant to ORS 456.055 to 456.235.
     (h) The
REGULATORY
ACCOUNTING
     708A.555
Generally accepted accounting principles. Except as otherwise provided in the Bank Act or other applicable law,
institutions shall keep books and records in accordance with generally accepted
accounting principles consistently applied. [1997 c.631 §186]
     708A.560
Real and personal property used in institutionÂ’s business. (1) Real estate, furniture, fixtures, vaults
and safe deposit boxes necessary or convenient for the operation of an
institutionÂ’s business shall be carried on the books of the institution in an
amount not to exceed 50 percent of its capital, as defined in ORS 708A.290.
     (2) Within guidelines established by rules
promulgated under ORS 183.310, 183.315, 183.330, 183.335 and 183.341 to 183.410
the Director of the Department of Consumer and Business Services may authorize
an institution to exceed the limitations prescribed in this section.
     (3) Personal property acquired for lease
to others in accordance with ORS 708A.180 is not subject to the limitations of
this section. [1997 c.631 §187]
     708A.565
Certain stock. Investments
in stock of a company that engages in activities in which a financial holding
company, a bank holding company or a nonbanking subsidiary of a financial
holding company or bank holding company could engage under ORS 708A.120 (4)
shall be carried on the books of the institution at a value not exceeding 15
percent of the stockholders’ equity of the institution. [1997 c.631 §188; 1999
c.59 §217; 2001 c.377 §49]
     708A.570
Community development corporations. Investments in community development corporations under ORS 708A.150
must be accounted for on an institution’s books as “other assets.” If the
community development corporation is organized under the Oregon Nonprofit
Corporation Law, the stock of the corporation purchased by the institution, or
the institutionÂ’s membership in the corporation if it does not issue stock,
shall be carried on the books of the institution at a value not exceeding $1. [1997
c.631 §189]
     708A.575
Market-making corporations.
Investments in a corporation engaged in the business of purchasing the stock of
an institution for purposes of holding and making a market for that stock shall
be carried on the books of the institution at a value not exceeding $1. [1997
c.631 §190]
     708A.580
Capital-strengthening corporations. (1) The aggregate amount of stock of a corporation acquired under ORS
708A.125 for the purpose of strengthening the institutionÂ’s capital or
eliminating undesirable assets shall not be carried on the books in excess of
20 percent of the institutionÂ’s capital.
     (2) The book value of the stock shall be
amortized by not less than five percent of its original book value each year. [1997
c.631 §191]
     708A.585
Claims and judgments as assets.
Claims against the estates of insolvent persons or deceased or incompetent
persons and judgments against any person shall not be carried as an asset upon
the books of an institution for more than two years, unless a written extension
of time is granted by the Director of the Department of Consumer and Business
Services. This section does not apply to loans made to the personal
representative, guardian or trustee of any estate. [1997 c.631 §192]
     708A.590
Charging off real estate assets. (1) An institution that owns or holds any real estate other than as
permitted in the Bank Act shall immediately charge the book value of real
estate to profit and loss or otherwise remove the real estate from its books.
     (2) All real estate owned or held by an
institution in accordance with ORS 708A.175 (3) or (4) shall be reduced in book
value by not less than five percent of its original book value per year
commencing the year title is vested and continuing until the earlier of the
year the real estate is disposed of or the expiration of the period such real
estate may be owned or held under ORS 708A.195. Upon the expiration of the
period such real estate may be owned or held under ORS 708A.195, the remaining
book value shall be charged off. [1997 c.631 §193]
     708A.595
Charging off personal property assets. Goods and chattels owned by an institution on account of the
collection of its debts shall not be carried on the books of an institution for
more than two years after the property was acquired, unless such period is
extended by the Director of the Department of Consumer and Business Services. [1997
c.631 §194]
     708A.600
Charging off bad debts. An
institution shall charge off all debts:
     (1) On which interest is past due and
unpaid for 12 months, unless the debt is fully secured and in process of
collection;
     (2) That are classified by an examiner as
a bad debt; or
     (3) Upon the instruction of the Director
of the Department of Consumer and Business Services. [1997 c.631 §195]
     708A.605
Separate accounts for foreign branches. An institution shall maintain the accounts of each foreign branch
independently of the accounts of other foreign branches established by it and
of its home office. At the end of each year, the profit or loss accrued at each
branch shall be transferred to the general ledger as a separate item. [1997
c.631 §196]
MISCELLANEOUS
PROVISIONS
     708A.630
Negligent, excessive, dishonest or unlawful loans; civil liability of officer,
director or employee. Any
officer, director or employee of an institution who knowingly or negligently
loans the funds of the institution in a dishonest or unlawful manner or permits
the funds of the institution to be so loaned, is liable for the full amount of
the loan and for all damages that the institution, its stockholders or any
other person has sustained in consequence thereof. The liability for the loan
continues until the loan, with interest, is paid in full without loss to the
institution. The amount of the liability may be collected by suit or action
without first attempting to collect from the debtor. [1997 c.631 §197a]
     708A.635
Written policies regarding reporting to and obtaining approval of board; duty
to report. Institutions
shall develop written policies regarding the types of matters that shall be
reported to and approved by the institutionÂ’s board of directors. An officer,
director or employee of an institution shall not conceal from or fail to report
to the board of directors of the institution any such matter. [1997 c.631 §198]
     708A.640
Receiving illegal compensation; misapplication of property and credit. (1) An officer, director, agent or employee
of an institution shall not ask for, receive or agree to receive any money,
property or thing of value or of personal advantage, for:
     (a) Procuring or endeavoring to procure
for any person any loan from, or the purchase or discount of any paper, note,
draft, check or bill of exchange by, the institution.
     (b) Permitting any person to overdraw any
account with the institution.
     (2) An officer, director, stockholder,
employee or agent of an institution shall not abstract or willfully misapply
any of the property of the institution, or willfully misapply its credit. [1997
c.631 §199]
     708A.645
Illegal guaranty or indorsement. An officer, director or employee of an institution shall not make or
deliver any guaranty or indorsement on behalf of the institution whereby the
institution becomes liable upon any of its discounted notes, bills or
obligations, in any sum beyond the amount of loans and discounts that the
institution may legally make. [1997 c.631 §200]
     708A.650
Banking days; holidays. (1)
As used in this section:
     (a) “Bank” includes any banking
institution, out-of-state state bank, national bank or extranational
institution doing a banking business in this state.
     (b) “Banking day” means any day that is
not an optional bank holiday.
     (c) “Emergency” means any condition or
occurrence which may interfere with the conduct of normal business operations
at one or more of the offices of a bank, or which poses an imminent or existing
threat to the safety or security of persons or property.
     (d) “Open for the general conduct of
banking business” means the office or offices of a bank are open to the public
for carrying on substantially all business functions of the bank.
     (e) “Optional bank holiday” means:
     (A) Each Saturday and Sunday.
     (B) New Year’s Day on January 1.
     (C) Martin Luther King, Jr.’s birthday on
the third Monday in January.
     (D) Presidents Day on the third Monday in
February.
     (E) Memorial Day on the last Monday in
May.
     (F) Independence Day on July 4.
     (G) Labor Day on the first Monday in
September.
     (H) Columbus Day on the second Monday in
October.
     (I) Veterans Day on November 11.
     (J) Thanksgiving Day on the fourth
Thursday in November.
     (K) Christmas Day on December 25.
     (2) When an optional bank holiday, other
than a Saturday, falls on a Saturday, the bank may observe the holiday either
on that day or on the preceding Friday. When an optional bank holiday, other
than a Sunday, falls on a Sunday, the bank may observe the holiday either on
that day or on the succeeding Monday.
     (3) Except as otherwise provided in this
section, banks shall be open for the general conduct of banking business on
each banking day.
     (4) Any bank may remain closed on any
optional bank holiday with respect to all or any of its banking and other
functions.
     (5) Subject to any applicable federal law
or regulation, an office of a bank may be closed for any part or all of a
banking day if the times or days which the office is open are posted on the
premises of the office.
     (6) When the Director of the Department of
Consumer and Business Services determines that an emergency exists, the
director may authorize the closing of the principal office or branch of any
bank which may be affected by the emergency. The office or branch so closed may
remain closed until the director determines that the emergency has ended and
for such further time thereafter as may reasonably be required to prepare the
office or branch to reopen.
     (7) When the officers of a bank determine
that an emergency exists which affects the principal office or a branch of the
bank, they may close the office or branch without the approval of the director
for a period not to exceed 48 hours, excluding holidays, during the
continuation of the emergency. A bank closing an office or branch under this
subsection shall give prompt notice of its action to the director, or in the
case of a national bank, to the Comptroller of the Currency.
     (8) The principal officers of a bank may
close the principal office or any branch of the bank on any day designated, by
proclamation of the President of the
     (9) When any obligation payable at, by or
through a bank falls due on a day on which the bank remains closed under this
section, it shall be due and payable on the next banking day on which the bank
is open. Any act authorized, required or permitted to be performed at, by or
with respect to any bank on a day on which the bank remains closed may be
performed on the next banking day on which the bank is open, and no liability
or loss of rights of any kind shall result from the closing. [1997 c.631 §1c;
1999 c.59 §218]
     708A.655
Procedures for opening safe deposit box after death of person who was sole
lessee or last surviving lessee of box. (1) This section applies to the safe deposit box of any person who is
the sole lessee or last surviving lessee of the box and who has died.
     (2) Upon being furnished with a certified
copy of the decedentÂ’s death certificate or other evidence of death
satisfactory to the Oregon operating institution, the Oregon operating
institution within which the box is located shall cause or permit the box to be
opened and the contents of the box examined at the request of an individual who
furnishes an affidavit stating:
     (a) That the individual believes the box
may contain the will of the decedent, a trust instrument creating a trust of
which the decedent was a trustor or a trustee at the time of the decedentÂ’s
death, documents pertaining to the disposition of the remains of the decedent,
documents pertaining to property of the estate of the decedent or property of
the estate of the decedent; and
     (b) That the individual is an interested
person as defined in this section and wishes to open the box to conduct a will
search or trust instrument search, obtain documents relating to the disposition
of the decedentÂ’s remains or inventory the contents of the box.
     (3) For the purpose of this section, “interested
person” means any of the following:
     (a) A person named as personal
representative of the decedent in a purported will of the decedent;
     (b) The surviving spouse or any heir of
the decedent;
     (c) A person who was serving as the
court-appointed guardian or conservator of the decedent or as trustee for the
decedent immediately prior to the decedentÂ’s death;
     (d) A person named as successor trustee in
a purported trust instrument creating a trust of which the decedent was a
trustor or a trustee at the time of the decedentÂ’s death;
     (e) A person designated by the decedent in
a writing that is acceptable to the
     (f) A person who immediately prior to the
death of the decedent had the right of access to the box as an agent of the
decedent under a durable power of attorney; or
     (g) If there are no heirs of the decedent,
an estate administrator of the Department of State Lands appointed under ORS
113.235.
     (4) If the box is opened for the purpose
of conducting a will search, the Oregon operating institution shall remove any
document that appears to be a will, make a true and correct copy of it and
deliver the original will to a person designated in the will to serve as the
decedentÂ’s personal representative, or if no such person is designated or the
Oregon operating institution cannot, despite reasonable efforts, determine the
whereabouts of such person, the Oregon operating institution shall retain the
will or deliver it to a court having jurisdiction of the estate of the
decedent. A copy of the will shall be retained in the box. At the request of
the interested person, a copy of the will, together with copies of any
documents pertaining to the disposition of the remains of the decedent, may be
given to the interested person.
     (5) If the box is opened for the purpose
of conducting a trust instrument search, the Oregon operating institution shall
remove any document that appears to be a trust instrument creating a trust of
which the decedent was a trustor or trustee at the time of the decedentÂ’s
death, make a true and correct copy of it and deliver the original trust
instrument to a person designated in the trust instrument to serve as the
successor trustee on the death of the decedent. If no such person is designated
or the
     (6) If the box is opened for the purpose
of obtaining documents pertaining to the disposition of the decedentÂ’s remains,
the
     (a) Make and retain in the box a copy of
any documents pertaining to the disposition of the remains of the decedent and
tender the original documents to the interested person; or
     (b) Provide a copy of any documents
pertaining to the disposition of the remains of the decedent to the interested
person and retain the original documents in the box.
     (7) If the box is opened for the purpose
of making an inventory of its contents, the
     (8) The
     (9) If the interested person does not
furnish the key needed to open the box, and the
     (10) Any examination of the contents of a
box under this section shall be conducted in the presence of at least one
employee of the
PENALTIES
     708A.990
Civil penalties. (1) An
institution that violates:
     (a) ORS 708A.560 shall forfeit a civil
penalty in an amount determined by the Director of the Department of Consumer
and Business Services of not more than $50,000.
     (b) ORS 708A.420 shall forfeit a civil
penalty in an amount determined by the director of not more than $10,000. In
addition, the director may revoke the charter of the violating institution.
     (2) All money forfeited under subsections
(1) and (2) of this section shall be paid to the State Treasurer to be
deposited in the Consumer and Business Services Fund.
     (3) The civil penalty may be recovered as
provided in ORS 706.980. [1997 c.631 §201]
     708A.995
Criminal penalties.
Violation knowingly of any of the provisions of ORS 708A.635 is a Class C
felony. [1997 c.631 §202]
_______________
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