2007 Oregon Code - Chapter 713 :: Chapter 713 - Out-of-State Banks and Extranational Institutions
Chapter 713 —
Out-of-State Banks and Extranational Institutions
2007 EDITION
OUT-OF-STATE AND EXTRANATIONAL INSTITUTIONS
FINANCIAL INSTITUTIONS
713.010Â Â Â Â Application
of Bank Act to out-of-state banks and extranational institutions; powers of
out-of-state bank
713.016Â Â Â Â Requirements
for conducting banking business; deposit insurance
713.020Â Â Â Â Certificate
of authority to conduct banking business
713.025Â Â Â Â Assets
requirement for extranational institutions; type; amount
713.035Â Â Â Â Failure
to maintain required assets; notice to director; effect of deficiency
713.045Â Â Â Â Distribution
of assets of extranational institution by director after insolvency or
liquidation
713.090Â Â Â Â Reports;
fees; examination and regulation
713.130Â Â Â Â Name
of bank or institution
713.140Â Â Â Â Contents
of application for certificate of authority; rules; authority to transact
business under other laws
713.150Â Â Â Â Submission
of application; fee; issuance of certificate of authority
713.160Â Â Â Â Transaction
of business under certificate of authority
713.170Â Â Â Â Registered
office, agent or representative
713.190Â Â Â Â Service
of process on agent; director as agent; fee
713.200Â Â Â Â Delivery
of documents filed with Secretary of State; change of name or duration
713.210Â Â Â Â Withdrawal
from state
713.220Â Â Â Â Application
for withdrawal; effect of filing
713.230Â Â Â Â Revocation
of certificate of authority
713.240Â Â Â Â Procedure
for revocation of certificate of authority; restoration; reinstatement; fee
713.250Â Â Â Â Limits
on banks and institutions without certificates of authority
713.260Â Â Â Â Merger
or consolidation
713.270Â Â Â Â Out-of-state
bank conducting banking business at a branch
713.280Â Â Â Â Effect
of laws of state or country in which out-of-state bank or extranational
institution is organized
713.290Â Â Â Â Requirements
for deposits at office of extranational institution
713.300Â Â Â Â Activities
of out-of-state bank, extranational institution or foreign association that do
not constitute transacting business in this state; filing statement with
director; fee
713.990Â Â Â Â Civil
penalties
     713.010
Application of Bank Act to out-of-state banks and extranational institutions;
powers of out-of-state bank.
(1) Every activity engaged in by every out-of-state bank and extranational
institution conducting a banking business in this state is subject to all of
the applicable provisions of the Bank Act.
     (2) An out-of-state state bank that opens,
occupies or maintains a branch in this state pursuant to and in accordance with
the requirements of ORS 713.270 and that has been issued a certificate of
authority by the Director of the Department of Consumer and Business Services
to conduct a banking business in this state pursuant to ORS 713.020, and
713.140 to 713.160, shall have the same powers to engage in any activity in
this state as permitted to the out-of-state state bank under the laws of its
home state, except that an out-of-state state bank may not transact trust
business in this state unless it complies with ORS chapter 709. When there is a
conflict between the provisions of this chapter and the provisions of the laws
of the home state of the out-of-state state bank, the laws of that home state
control. [Amended by 1965 c.170 §2; 1967 c.333 §1; 1973 c.797 §307; 1975 c.725 §8;
1979 c.88 §13; 1997 c.631 §283]
     713.011 [1993 c.229 §14; repealed by 1997 c.631 §567]
     713.012 [1973 c.797 §308; 1975 c.725 §9; 1979 c.362 §1;
1981 c.192 §22; 1983 c.37 §22; 1987 c.445 §16; repealed by 1997 c.631 §567]
     713.016
Requirements for conducting banking business; deposit insurance. (1) An out-of-state state bank shall not
conduct banking business in this state unless its insurable deposits are
insured by the Federal Deposit Insurance Corporation and the out-of-state state
bank has received a certificate of authority to conduct banking business
pursuant to ORS 713.020 and 713.140 to 713.160.
     (2) Unless it complies with the
requirements of ORS 713.025, an extranational institution shall not conduct
banking business in this state. This subsection and ORS 713.025 do not apply to
any extranational institution having a branch office in this state and lawfully
conducting banking business on December 31, 1966. [1973 c.797 §309; 1975 c.725 §10;
1997 c.631 §286]
     713.020
Certificate of authority to conduct banking business. The Director of the Department of Consumer
and Business Services shall issue to an out-of-state state bank or
extranational institution that applies and that complies with the requirements
of this chapter a certificate of authority to transact business in this state,
provided for in ORS 713.140 to 713.160. [Amended by 1965 c.170 §3; 1973 c.797 §310;
1975 c.725 §11; 1983 c.37 §23; 1987 c.197 §8; 1989 c.324 §55; 1991 c.67 §190;
1997 c.631 §287]
     713.025
Assets requirement for extranational institutions; type; amount. (1) Except as provided in subsection (4) of
this section and ORS 713.300, every extranational institution with one or more
offices in this state shall deposit with the Director of the Department of
Consumer and Business Services in an office located in this state of another
bank approved by the director under an agreement satisfactory to the director
for the protection of depositors of the extranational institution, free and
clear of all other liens and encumbrances, assets in an amount set forth in
subsection (2) of this section of the following types:
     (a) Cash;
     (b) Interest-bearing bonds, notes or
obligations of the United States, including those of its agencies and
instrumentalities, or bonds, notes or obligations for which the faith of the
United States is pledged for the payment of the principal and interest;
     (c) Bonds or other obligations of the
State of Oregon, any county of this state or any incorporated city, town or
school or port district of this state having a population of not less than
2,000 as shown by the last federal census, or bonds of any other state, any county,
incorporated city, town or school or port district therein having a population
of not less than 25,000, as shown by the last federal census, if:
     (A) The bonds or obligations are issued in
compliance with the constitution and laws of the applicable state;
     (B) The bonds or obligations are general
obligations of the state, city, town or school or port district issuing the
bonds; and
     (C) There has been no default in payment
of either principal or interest on any of the general obligations of the state,
county, incorporated city, town or school or port district for a period of five
years preceding the date of the deposit;
     (d) A surety bond issued by a surety
company authorized to transact business in this state and in a form approved by
the director, under which the principal and surety indemnify the depositors and
creditors of the extranational institution against loss due to nonpayment by
the extranational institution, including by reason of the failure of the
extranational institution;
     (e) An irrevocable letter of credit issued
by an insured institution, as defined in ORS 706.008, satisfactory to the
director; or
     (f) Any combination of cash, securities
complying with subsection (1)(b) and (c) of this section, surety bonds
complying with subsection (1)(d) of this section, and letters of credit
complying with subsection (1)(e) of this section.
     (2) The market value of the assets
deposited pursuant to subsection (1) of this section shall be not less than:
     (a) Five percent of the total liabilities
of the office including acceptances, but excluding accrued expenses and amounts
due to and other liabilities of offices, branches, agencies and subsidiaries of
the extranational institution; or
     (b) Such other amount as the director may
determine to be necessary for the protection of depositors and the public
interest.
     (3) The director shall determine the value
of the assets maintained for the purposes of this section and shall value
marketable securities according to accepted principles of accounting.
     (4) The deposit requirements of subsection
(1) of this section shall not apply to an office of an extranational
institution that is an insured branch as defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)). [1975 c.725 §3; 1997 c.631 §290;
1999 c.30 §5]
     713.030 [Repealed by 1973 c.797 §428]
     713.035
Failure to maintain required assets; notice to director; effect of deficiency. If at the close of any banking day an
extranational institution does not have on deposit the assets required to be
maintained under ORS 713.025, the managing officer in charge of the office of
the extranational institution shall immediately notify the Director of the
Department of Consumer and Business Services and the main office of the
extranational institution of the deficit. The extranational institution shall
have three banking days to eliminate the deficiency. If the deficiency is not
eliminated within the three-day period, the extranational institution is
prohibited from conducting banking business, making loans, issuing letters of
credit or accepting drafts or bills of exchange and the director may revoke its
certificate of authority. [1975 c.725 §4; 1997 c.631 §291]
     713.040 [Repealed by 1973 c.797 §428]
     713.045
Distribution of assets of extranational institution by director after insolvency
or liquidation. (1) If an
extranational institution becomes insolvent or goes into voluntary or
involuntary liquidation or cannot otherwise pay its deposit or other
liabilities, the Director of the Department of Consumer and Business Services
may take possession of the assets required to be deposited under ORS 713.025
directly or through the appointment of a receiver, free of any liens and other
claims. The assets shall be held by the director or receiver in trust.
     (2) Unless the deposited assets are
delivered to the Federal Deposit Insurance Corporation as receiver, the amount
available for distribution to the depositors under subsection (1) of this
section shall be allocated to the depositors of the office pro rata to the
extent of their deposits.
     (3) Any additional deposited assets
remaining after the distributions to depositors provided for in subsection (2)
of this section shall be available for distribution to the other creditors of
the extranational institution in accordance with ORS 711.530 to 711.570.
     (4) As used in this section, the term “depositor”
has the meaning given that term in ORS 711.515. [1975 c.725 §5; 1997 c.631 §292;
2007 c.71 §231]
     713.050 [Amended by 1973 c.797 §313; repealed by
1997 c.631 §567]
     713.060 [Amended by 1973 c.797 §314; 1974 s.s. c.15 §1;
1975 c.725 §12; 1979 c.88 §14; repealed by 1997 c.631 §567]
     713.070 [Amended by 1973 c.797 §315; 1975 c.725 §13;
repealed by 1997 c.631 §567]
     713.080 [Amended by 1973 c.797 §316; 1975 c.725 §14;
1981 c.192 §23; repealed by 1997 c.631 §567]
     713.090
Reports; fees; examination and regulation. (1) Every out-of-state state bank and every extranational institution
conducting banking business in this state shall file reports under oath with
the Director of the Department of Consumer and Business Services in the form
and giving the information the director may require.
     (2) Every out-of-state state bank and
extranational institution conducting banking business shall be subject to the
fee provided in ORS 706.530 and to examination and regulation in the manner
provided in ORS 706.500. [Amended by 1973 c.797 §317; 1975 c.725 §15; 1997
c.631 §293; 1999 c.59 §222]
     713.100 [Amended by 1973 c.797 §318; 1975 c.725 §16;
repealed by 1997 c.631 §567]
     713.110 [Amended by 1973 c.797 §319; repealed by
1997 c.631 §567]
     713.120 [1989 c.324 §57; repealed by 1997 c.631 §567]
     713.130
Name of bank or institution.
(1) The Director of the Department of Consumer and Business Services shall not
issue a certificate of authority to an out-of-state state bank or extranational
institution if the name of the out-of-state state bank or extranational
institution does not conform to ORS 707.075, except as provided in subsection
(2) of this section.
     (2) If the director determines that the
name of the applicant out-of-state state bank or extranational institution is
deceptively similar to the name of another financial institution conducting a
banking business in this state, the director shall not issue a certificate of
authority to the applicant unless the out-of-state state bank or extranational
institution states the corporate name on the application for a certificate of
authority under ORS 713.140 (1)(a) and in the filings required by ORS 713.140
(3) as “_________ (name under which organized), an institution of ________
(place of organization),” the entirety of which shall be the “real and true
name” of the out-of-state state bank or extranational institution under ORS
chapter 648.
     (3) Nothing contained in this section
shall preclude an out-of-state state bank or extranational institution from
transacting business under one or more assumed business names, if the names
meet the requirements of subsection (1) of this section, unless the director
determines that the names will be confusingly similar to any financial
institution, corporate, professional corporate, nonprofit corporate,
cooperative, limited liability company, limited partnership, business trust,
reserved or registered name currently on file with the Secretary of State or
Director of the Department of Consumer and Business Services, or an assumed
business name registered as provided in ORS 648.010. The name designated under
this section shall be accorded the same legal effect under ORS 707.075 and ORS
chapters 647 and 648 as the name of an
     713.140
Contents of application for certificate of authority; rules; authority to
transact business under other laws. (1) To procure a certificate of authority to conduct banking business
in this state, an out-of-state state bank or extranational institution shall
apply to the Director of the Department of Consumer and Business Services. The
application shall state:
     (a) The name as designated under ORS
713.130.
     (b) The state or country under the laws of
which the out-of-state state bank or extranational institution was organized.
     (c) The date of organization.
     (d) The period of duration of the
out-of-state state bank or extranational institution, if the duration is not
perpetual.
     (e) A mailing address to which the
director may send notices.
     (f) The address of the main office of the
out-of-state state bank or extranational institution in the state or country
under the laws of which it is organized.
     (g) Unless the out-of-state state bank or
extranational institution is a corporation, limited partnership, limited
liability company or business trust, the street address of the proposed
registered office of the institution in this state, and the name of its
proposed registered agent, who shall be amenable to service of process at the
address.
     (h) The names and respective addresses of
the president and secretary of the out-of-state state bank or extranational institution.
     (i) Any additional information that the
director may by rule require.
     (2) The director may prescribe and furnish
forms for the application. The president or a vice president and secretary or
an assistant secretary of the out-of-state state bank or extranational
institution shall sign the application.
     (3) The out-of-state state bank or
extranational institution shall also take the steps necessary to become
authorized to transact business:
     (a) If a corporation, as a foreign
corporation under ORS chapter 60;
     (b) If a limited partnership, as a foreign
limited partnership under ORS chapter 70;
     (c) If a limited liability company, as a
foreign limited liability company under ORS chapter 63; or
     (d) If a business trust, as a business
trust under ORS 128.560 to 128.600.
     (4) If the out-of-state state bank is an
unincorporated company, partnership or association, it shall register its name
as an assumed business name as provided in ORS chapter 648. [1989 c.324 §59;
1997 c.631 §295]
     713.150
Submission of application; fee; issuance of certificate of authority. (1) The out-of-state state bank or
extranational institution shall submit the application for a certificate of
authority, together with an application fee of $500, to the Director of the
Department of Consumer and Business Services for filing. The out-of-state state
bank or extranational institution shall also deliver with the completed
application a certificate of existence or a document of similar import, duly
authenticated by the official with custody of records in the state or country
under whose law it is organized and a copy of the documents filed to comply
with ORS 713.140 (3) evidencing filing of such documents by the Secretary of
State.
     (2) If the director finds that such
application conforms to this chapter, the director, when all fees and charges
have been paid, shall issue and return to the sender a certificate of authority
to conduct banking business in this state with the copy of the filed
application. [1989 c.324 §60; 1997 c.631 §296]
     713.160
Transaction of business under certificate of authority. Upon the issuance of a certificate of
authority by the Director of the Department of Consumer and Business Services,
the out-of-state state bank or extranational institution shall be authorized to
conduct a banking business in this state, subject, however, to the right of
this state to suspend or revoke the authority as provided in ORS 713.230. [1989
c.324 §61; 1997 c.631 §297]
     713.170
Registered office, agent or representative. Each out-of-state state bank and each extranational institution
authorized to conduct banking business in this state shall have and
continuously maintain in this state:
     (1) A registered office that may be, but
need not be, the same as its place of business in this state.
     (2) A registered agent or authorized
representative, in compliance with the requirements imposed by ORS 713.140 (3).
[1989 c.324 §62; 1997 c.631 §298]
     713.180 [1989 c.324 §63; repealed by 1997 c.631 §567]
     713.190
Service of process on agent; director as agent; fee. (1) The registered agent appointed by an
out-of-state state bank or extranational institution authorized to transact
business in this state shall be an agent of such institution upon whom any
process, notice or demand required or permitted by law to be served upon the
institution may be served.
     (2) The Director of the Department of
Consumer and Business Services shall be an agent of an out-of-state state bank
or extranational institution upon whom any process, notice or demand may be served,
if:
     (a) The out-of-state state bank or
extranational institution is authorized to conduct banking business in this
state, and:
     (A) It fails to appoint or maintain a
registered agent in this state;
     (B) Its registered agent cannot with
reasonable diligence be found at the registered office;
     (C) Its certificate of authority has been
suspended or revoked; or
     (D) It is an unincorporated company,
partnership or association;
     (b) The out-of-state state bank or
extranational institution is conducting banking business in this state without
the authorization provided by this chapter;
     (c) The out-of-state state bank or
extranational institution has been authorized to conduct banking business in
this state and has withdrawn and consented to service on the director as
prescribed in this chapter; or
     (d) The out-of-state state bank or
extranational institution has conducted banking business in this state without
the authorization to do so, has ceased to conduct banking business and has
become subject to service on the director as prescribed in this chapter.
     (3) Except as provided in subsection (4)
of this section, service on the director of any such process, notice or demand
shall be made by:
     (a) Service on the director or a clerk on
duty in any office of the director of a copy of the process, notice or demand
with any papers required by law to be delivered in connection with the service,
or by mailing to the director a copy of the process, notice or demand by
certified or registered mail, and a $2 fee for each document being served; or
     (b) Transmittal by the person instituting
the proceedings of notice of the service on the director and a copy of the
process, notice or demand and accompanying papers to the out-of-state state
bank or extranational institution being served by certified or registered mail:
     (A) At the last-registered office of the
out-of-state state bank or extranational institution as shown by the records of
the director;
     (B) At such address, the use of which the
person initiating the proceedings knows or, on the basis of reasonable inquiry,
has reason to believe is most likely to result in actual notice; and
     (C) Filing with the appropriate court or
other body, as part of the return of service, the return receipt of mailing and
an affidavit of the person initiating the proceedings stating compliance with
this section.
     (4) When the out-of-state state bank or
extranational institution that is being served with the process, notice or
demand is not authorized to conduct banking business in this state and was not
authorized to conduct banking business in this state at the time the
transaction, event or occurrence upon which the suit or proceeding is based
occurred, service shall be made in the same manner as provided in subsection
(3) of this section, except that the copy of the process, notice or demand
shall be sent forthwith by registered or certified mail by the plaintiff or the
attorney of the plaintiff to the principal office or place of business of the
out-of-state state bank or extranational institution, instead of the
last-registered office of the out-of-state state bank or extranational
institution.
     (5) The director shall keep a record of
all processes, notices and demands served upon the director under this section.
     (6) Nothing contained in this section
shall limit or affect the right to serve any process, notice or demand required
or permitted by law to be served upon an out-of-state state bank or
extranational institution in any other manner now or hereafter permitted by
law, or enlarge the purposes for which service on the director is permitted
where such purposes are limited by other provisions of law. [1989 c.324 §64;
1997 c.631 §299]
     713.200
Delivery of documents filed with Secretary of State; change of name or
duration. (1) Every out-of-state
state bank and every extranational institution that has been issued a
certificate of authority to conduct banking business in this state shall
deliver to the Director of the Department of Consumer and Business Services,
promptly after filing with the Secretary of State, all documents filed by the
out-of-state state bank or extranational institution with the Secretary of
State pursuant to ORS chapters 60, 63, 70 and 648 and ORS 128.560 to 128.600.
     (2) If an out-of-state state bank or an
extranational institution that has been issued a certificate of authority to
conduct banking business in this state changes its name or duration, it shall
apply to the director to amend its certificate of authority.
     (3) The requirements in respect to the
form and contents of the application, the manner of its signing and the
submission of the application referred to in subsection (2) of this section to
the director shall be the same as in the case of an original application for a
certificate of authority under ORS 713.140. The filing of the application for
the amended certificate of authority by the director shall have the same legal
effect as the filing of the original certificate of authority. [1989 c.324 §65;
1997 c.631 §300]
     713.210
Withdrawal from state. (1) An
out-of-state state bank or extranational institution that has been issued a
certificate of authority to conduct banking business in this state may withdraw
from this state by applying to the Director of the Department of Consumer and
Business Services to withdraw. An application to withdraw shall set forth:
     (a) The name of the out-of-state state
bank or extranational institution and the state or country under the laws of
which it is organized.
     (b) A statement that the out-of-state
state bank or extranational institution no longer conducts banking business in
this state.
     (c) A statement that the out-of-state
state bank or extranational institution surrenders its authority to conduct
banking business in this state.
     (d) A statement that the out-of-state state
bank or extranational institution revokes the authority of its registered agent
in this state to accept service of process, notice or demand and consents that
service of process, notice or demand in any action, suit or proceeding based
upon any transaction, event or occurrence which took place in this state prior
to the filing of the application to withdraw may thereafter be made on such
out-of-state state bank or extranational institution by service thereof on the
director.
     (e) A mailing address to which the person
initiating any proceedings may mail a copy of any process, notice or demand,
which has been served on the director, to the out-of-state state bank or
extranational institution.
     (f) Such additional information as may be
necessary or appropriate to enable the director to determine and assess any
unpaid fees or charges payable by such out-of-state state bank or extranational
institution as prescribed in the Bank Act.
     (2) The application for withdrawal may be
made on forms prescribed or furnished by the director and shall be signed by
the out-of-state state bank or extranational institution by its president or a
vice president and by its secretary or an assistant secretary, and verified by
one of the officers signing the application or, if the out-of-state state bank
or extranational institution is in the hands of a receiver or trustee, shall be
signed on behalf of the institution and verified by the receiver or trustee.
     (3) An out-of-state state bank or
extranational institution that conducted banking business in this state without
the authorization provided by this chapter will be subject to service after it
has ceased to conduct banking business in this state in the same manner as
though it had been authorized to conduct banking business, had later withdrawn
and, in connection with such withdrawal, had filed a consent to service in the
manner required by subsection (1)(d) of this section. [1989 c.324 §66; 1997
c.631 §301]
     713.220
Application for withdrawal; effect of filing. (1) The application to withdraw shall be delivered to the Director of
the Department of Consumer and Business Services. If the director finds that
such application conforms to the provisions of this chapter, the director, when
all fees and charges have been paid, shall file the application to withdraw and
return the copy marked “Filed” to the sender.
     (2) Upon the filing of the application to
withdraw, the authority of the out-of-state state bank or extranational
institution to conduct banking business in this state shall cease. [1989 c.324 §67;
1997 c.631 §302]
     713.230
Revocation of certificate of authority. The certificate of authority of an out-of-state state bank or
extranational institution to conduct banking business in this state may be
revoked when:
     (1) The out-of-state state bank or
extranational institution has not filed any report which it is required to file
under the Bank Act or has not paid any fee which it is required to pay under
the Bank Act;
     (2) The out-of-state state bank or
extranational institution has failed to appoint or maintain a registered agent
or office in this state as required by ORS 713.170 or has failed to maintain
authority to transact business as required by ORS 713.140 (3);
     (3) The out-of-state state bank or
extranational institution has changed its registered office or registered agent
and has failed to submit to the Director of the Department of Consumer and
Business Services a statement of the change as required by ORS 713.200 (1);
     (4) A misrepresentation has been made of
any material matter in any application, report, affidavit or other document
submitted by such out-of-state state bank or extranational institution pursuant
to the Bank Act;
     (5) The out-of-state state bank or
extranational institution has failed to submit for filing an application to
amend its certificate of authority as required by ORS 713.200 (2); or
     (6) The out-of-state state bank or
extranational institution has failed to submit for filing a certificate of
merger or consolidation as required by ORS 713.260. [1989 c.324 §68; 1997 c.631
§303]
     713.240
Procedure for revocation of certificate of authority; restoration;
reinstatement; fee. (1)
Whenever an out-of-state state bank or extranational institution has given
cause for revocation of its certificate of authority as provided in ORS 713.230
and has failed to correct the neglect, omission, misrepresentation or
delinquency, the Director of the Department of Consumer and Business Services
may revoke the right of the out-of-state state bank or extranational institution
to conduct banking business in this state. The director shall mail a notice of
the revocation to the mailing address shown for the out-of-state state bank or
extranational institution in the current records of the director to the
out-of-state state bank or extranational institution at its registered office
in this state or its principal office in its home state.
     (2) After the director revokes the
certificate of authority, all powers that this state conferred upon the
out-of-state state bank or extranational institution shall cease, and
thereafter no person shall exercise or attempt to exercise in this state any
power under the revoked certificate of authority.
     (3) Whenever it is established to the
satisfaction of the director that any out-of-state state bank or extranational
institution, the certificate of authority of which has been revoked under
subsection (1) of this section, has corrected the cause for revocation, the
director shall restore the out-of-state state bank or extranational institution
to all its former rights and privileges in the same manner as the director
revoked the authority of the out-of-state state bank or extranational
institution.
     (4) Any out-of-state state bank or
extranational institution previously authorized to conduct banking business in
this state that has had its certificate of authority revoked and that has
corrected the cause for revocation under subsection (1) of this section may
apply for reinstatement of its certificate of authority within two years of the
date of revocation. The out-of-state state bank or extranational institution
shall pay all fees which accrued before the director revoked the certificate of
authority and a reinstatement filing fee of $100. The payment shall accompany
the application for reinstatement. If the director is satisfied that the cause
for revocation has been corrected, the director shall file the application for
reinstatement of the out-of-state state bank or extranational institution,
entitling it to resume its business in this state. The director shall not file
the application for reinstatement unless the name of the out-of-state state
bank or extranational institution conforms to ORS 713.130 and the application
is filed within two years of the date of revocation.
     (5) Reinstatement under this section
relates back to and takes effect as of the effective date of the revocation of
the certificate of authority, so that the existence of the out-of-state state
bank or extranational institution is deemed to have continued without
interruption from that date. [1989 c.324 §69; 1997 c.631 §304]
     713.250
Limits on banks and institutions without certificates of authority. (1) No out-of-state state bank or
extranational institution conducting banking business in this state without a
certificate of authority shall be permitted to maintain any action, suit or
proceeding in any court of this state until such out-of-state state bank or
extranational institution shall have obtained a certificate of authority.
     (2) The failure of an out-of-state state
bank or extranational institution to obtain a certificate of authority to
conduct banking business in this state shall not impair the validity of any
contract or act of such out-of-state state bank or extranational institution,
and shall not prevent such out-of-state state bank or extranational institution
from defending any action, suit or proceeding in any court of this state.
     (3) An out-of-state state bank or
extranational institution that conducts banking business in this state without
a certificate of authority shall be liable to this state for the years or parts
thereof during which it conducted banking business in this state without a
certificate of authority in an amount equal to all fees, assessments and other
charges which would have been imposed upon the out-of-state state bank or
extranational institution under the Bank Act had it duly applied for and
received a certificate of authority to conduct banking business in this state
as required by this chapter and thereafter filed all reports required by the Bank
Act, plus all penalties imposed under the Bank Act for failure to pay such fees
and charges. The Attorney General may bring proceedings to recover all amounts
due this state under the provisions of this section. [1989 c.324 §70; 1997
c.631 §305]
     713.260
Merger or consolidation.
Whenever an out-of-state state bank or extranational institution that has been
issued a certificate of authority under ORS 713.020 ceases to exist because of
a statutory merger or consolidation with any other out-of-state state bank,
extranational institution or other entity, it shall, within 60 days after the
effective date of such merger or consolidation, file with the Director of the
Department of Consumer and Business Services a certificate from the appropriate
public officer of the state, territory or country under the laws of which it is
organized, or other evidence satisfactory to the director, to the effect that
such out-of-state state bank or extranational institution has merged or
consolidated and has thereby ceased to exist. [1989 c.324 §71; 1997 c.631 §306]
     713.270
Out-of-state bank conducting banking business at a branch. (1) Notwithstanding any other provision of
the Bank Act, no out-of-state bank may conduct banking business at a branch
located in this state unless the out-of-state bank has converted from, has
assumed all or substantially all of Oregon deposit liabilities of or has merged
with an insured institution that, by itself or together with any predecessor,
has been engaged in banking business or otherwise has been lawfully accepting
deposits at an office in this state for a period of not less than three years
prior to the effective date of the conversion, assumption or merger.
     (2) This section does not prohibit an
out-of-state bank lawfully conducting a banking business in this state on
October 4, 1997, from continuing to conduct banking business in this state. [1997
c.631 §284]
     713.280
Effect of laws of state or country in which out-of-state bank or extranational
institution is organized. An
out-of-state state bank or extranational institution shall not be denied a
certificate of authority by reason of the fact that the laws of the state or
country under which such out-of-state state bank or extranational institution
is organized, governing its organization and internal affairs differ from the
laws of this state. Nothing contained in this chapter shall be construed to
authorize this state to regulate the organization or internal affairs of such
out-of-state state bank or extranational institution. [1997 c.631 §285]
     713.290
Requirements for deposits at office of extranational institution. An extranational institution shall not
accept deposits at any office in this state in an amount less than $100,000,
unless the insurable deposits of that office are insured by the Federal Deposit
Insurance Corporation or no such insurance is required under the Federal
Deposit Insurance Act and the regulations of the Federal Deposit Insurance
Corporation thereunder. [1997 c.631 §289]
     713.300
Activities of out-of-state bank, extranational institution or foreign
association that do not constitute transacting business in this state; filing
statement with director; fee.
(1) For purposes of this section, “foreign association” means a foreign
association as defined in ORS 722.004 or a federal association as defined in
ORS 722.004, the home state of which is a state other than
     (2) Subject to subsection (3) of this
section, any out-of-state bank, extranational institution or foreign
association, without being authorized to transact banking business or savings
and loan business in this state, may take, acquire, hold and enforce notes
secured by mortgages or trust deeds and make commitments to purchase such
notes. The out-of-state bank, extranational institution or foreign association
may foreclose the mortgages or trust deeds in the courts of this state, acquire
the mortgaged property, hold, own and operate the property for a period not
exceeding five years and dispose of the property. The activities authorized
under this subsection by an out-of-state bank, extranational institution or
foreign association shall not constitute transacting business in this state for
the purposes of ORS chapter 60.
     (3) Before an out-of-state bank,
extranational institution or foreign association engages in any of the
activities described in subsection (2) of this section, the bank, institution
or association shall first file with the Department of Consumer and Business
Services a statement signed by its president, secretary, treasurer or general
manager indicating that the bank, institution or association designates the
Director of the Department of Consumer and Business Services its attorney for
service of process. The out-of-state bank, extranational institution or foreign
association shall pay an initial filing fee of $200 and an annual fee of $200.
The statement shall include the address of the principal place of business of
the out-of-state bank, extranational institution or foreign association.
     (4) The Director of the Department of
Consumer and Business Services, upon receiving service of process as authorized
by subsection (3) of this section, immediately shall forward all documents
served upon the director to the principal place of business of the out-of-state
bank, extranational institution or foreign association.
     (5) The filing requirements of subsection
(3) of this section do not apply to an out-of-state bank or extranational
institution that has obtained a certificate of authority to transact banking
business in this state under ORS 713.020, or to a foreign association that has
obtained a certificate of authority to transact savings and loan business in
this state under ORS 722.502. Notwithstanding subsection (3) of this section,
such an out-of-state bank, extranational institution or foreign association may
take, acquire, hold and enforce notes secured by mortgages or trust deeds, make
commitments to purchase such notes and participate with other lenders
authorized to do business in this state in the making of loans for which such
notes are executed and delivered.
     (6) An out-of-state bank, extranational
institution or foreign association that indirectly engages in the activities
described in subsection (2) of this section because of its beneficial interest
in a pool of notes secured by mortgages or trust deeds need not comply with
subsection (3) of this section. [1999 c.30 §4]
     713.990
Civil penalties. The
Director of the Department of Consumer and Business Services may impose on any
person violating any provision of this chapter a civil penalty of up to $1,000
for each day during which the offense continues. The penalty shall be assessed
and collected in the manner prescribed in ORS 706.570 (2). [1997 c.631 §308]
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