2007 Oregon Code - Chapter 714 :: Chapter 714 - Branch Banking - Automated Teller Machines
Chapter 714 —
Branch Banking; Automated Teller Machines
2007 EDITION
BRANCH BANKING; AUTOMATED TELLER MACHINES
FINANCIAL INSTITUTIONS
BRANCH BANKING
(Branches of Banking Institutions)
714.015Â Â Â Â Branches
not in compliance with ORS 714.025 to 714.079 prohibited
714.025Â Â Â Â Application
required to establish branches in
714.035Â Â Â Â Mobile
banking facilities; fee
714.045Â Â Â Â Application
to establish foreign branches; furnishing information; examination; rules
714.049Â Â Â Â Investigating
applications; soliciting comments
714.054Â Â Â Â Approval
or disapproval of application; when application deemed approved
714.059Â Â Â Â Certificate
authorizing branch to conduct business
714.064Â Â Â Â Time
to commence business
714.069Â Â Â Â Activities
and powers at branches outside this state
714.075Â Â Â Â Reports
of deposits held at branches
714.079Â Â Â Â Closure
and relocation of branches
(
714.095Â Â Â Â Establishment
of branches by out-of-state banks in this state; powers and activities at
branches
714.105Â Â Â Â Establishment
of branches by extranational institutions in this state; powers and activities
at branches
AUTOMATED TELLER MACHINES; NIGHT DEPOSIT
FACILITIES
714.205Â Â Â Â Disclosure
of fees for ATM transaction; method; rules
714.210Â Â Â Â Use
of ATMs; verification; application of branch banking law
714.270Â Â Â Â Prohibitions
on use of ATM for banking information
714.280Â Â Â Â Legislative
intent of ATM and night deposit facility law
714.285Â Â Â Â Adoption
of procedures for evaluating safety of ATM or night deposit facilities
714.290Â Â Â Â Deadlines
for compliance with ORS 714.295
714.295Â Â Â Â Lighting
requirements for ATMs and night deposit facilities
714.300Â Â Â Â Issuance
of safety information to customers of ATMs and night deposit facilities
714.305Â Â Â Â Exempted
ATMs and night deposit facilities
714.310Â Â Â Â Preemption
of local regulation
714.315Â Â Â Â Creation
of rebuttable presumption
PENALTIES
714.992Â Â Â Â Criminal
penalty
714.995Â Â Â Â Civil
penalty
     714.010 [Repealed by 1973 c.797 §428]
BRANCH BANKING
(Branches of Banking Institutions)
     714.015
Branches not in compliance with ORS 714.025 to 714.079 prohibited. Banking institutions shall not establish or
maintain branches except as expressly authorized in ORS 714.025 to 714.079 and
714.995. [1997 c.631 §312]
     714.020 [Repealed by 1973 c.797 §428]
     714.025
Application required to establish branches in
     (2) Mobile banking facilities described in
ORS 714.035 and temporary branches are considered branches for purposes of this
section. A temporary branch is a branch that operates for a period not to
exceed 60 days, which period shall not be extended. The application fee for a
temporary branch shall be $100. The director may establish rules regarding
temporary branches.
     (3) Branches to be located in other
countries or to be located in dependencies or insular possessions of the
     714.030 [Amended by 1973 c.797 §321; 1975 c.725 §17;
1993 c.229 §15; repealed by 1997 c.631 §567]
     714.035
Mobile banking facilities; fee.
A banking institution may, in accordance with ORS 714.025, establish one or
more mobile facilities to engage in the banking business or to transact trust
business. Mobile banking facilities may operate within the State of
     714.040 [Amended by 1971 c.68 §4; 1973 c.797 §322;
1975 c.544 §40a; 1977 c.135 §26; 1993 c.255 §2; repealed by 1997 c.631 §567]
     714.045
Application to establish foreign branches; furnishing information; examination;
rules. (1) A banking
institution may establish branches in foreign countries or dependencies or
insular possessions of the
     (2) A banking institution operating such
branches shall furnish information concerning the condition of the branches to
the Director of the Department of Consumer and Business Services upon demand.
     (3) The director may order special
examinations of such branches.
     (4) The director may promulgate rules
regarding such branches pursuant to ORS 183.310, 183.315, 183.330, 183.335,
183.341 and 183.410. [1997 c.631 §315]
     714.049
Investigating applications; soliciting comments. (1) The Director of the Department of
Consumer and Business Services shall investigate each application to establish
a branch. With respect to applications covering branches to be located outside
the State of
     (2) In determining whether to approve or
disapprove an application to establish a branch, the director shall consider
such factors as the director deems appropriate, including the likely impact of the
branch on the safety and soundness of the banking institution, the adequacy of
the capital of the banking institution, the institutionÂ’s record of complying
with applicable law, and the results of supervisory examinations of the banking
institution.
     (3) The director’s decision to disapprove
an application is subject to appeal in the manner provided in ORS 707.080 for
the organization of an institution. [1997 c.631 §316]
     714.050 [Amended by 1973 c.797 §323; repealed by
1979 c.826 §1]
     714.054
Approval or disapproval of application; when application deemed approved. With respect to applications to establish
branches in the State of Oregon or in a state outside of the State of Oregon,
the Director of the Department of Consumer and Business Services may approve or
disapprove the application, provided however, that failure to disapprove an
application within 30 days after receipt of a complete application shall be
deemed an approval of the application. With respect to applications by banking
institutions to establish branches in foreign countries or dependencies or
insular possessions of the
     714.055 [1973 c.797 §324; repealed by 1979 c.826 §1]
     714.059
Certificate authorizing branch to conduct business. Upon the request of a banking institution,
the Director of the Department of Consumer and Business Services shall issue
and deliver a certificate authorizing each approved branch to conduct business.
[1997 c.631 §318]
     714.060 [Amended by 1973 c.797 §325; 1985 c.12 §7;
1993 c.229 §16; 1993 c.255 §3; repealed by 1997 c.631 §567]
     714.064
Time to commence business. A
branch shall commence business within one year after the application for the
branch has been approved or deemed approved by the Director of the Department
of Consumer and Business Services. The director may extend the period within
which the branch may open up to one additional year. If a branch fails to
commence business within the year or any extension of time granted by the
director, the approval of the application shall be deemed withdrawn and the
branch may not open or operate. [1997 c.631 §319]
     714.065 [1973 c.797 §326; repealed by 1975 c.193 §13]
     714.069
Activities and powers at branches outside this state. (1) A banking institution may exercise the
same powers and engage in the same activities at a branch or branches located
in states outside this state as are permitted the banking institution within
this state.
     (2) A banking institution may exercise the
same powers and engage in the same activities at a branch or branches located
in foreign countries and dependencies or insular possessions of the United
States as are permitted the banking institution within this state and in
addition may exercise such additional powers as are permitted to such branches
under 12 C.F.R. 211.3(b), 12 C.F.R. 347.3(c) and other applicable federal law.
This subsection shall not be construed to permit a banking institution that
opens, occupies or maintains one or more branches in a foreign country or
dependency or insular possession of the United States to use the branch or
branches or engage in any activities within this state that are not permitted
to the banking institution under the laws of this state. [1997 c.631 §320]
     714.070 [Repealed by 1973 c.797 §428]
     714.075
Reports of deposits held at branches. Upon the call for a report of condition by the Director of the
Department of Consumer and Business Services:
     (1) Each Oregon commercial bank and Oregon
savings bank shall report to the director the total deposits held at each of
its branches; and
     (2) Each non-Oregon institution and each
federal bank that in either case holds deposits of the State of Oregon or any
political subdivision thereof, or that underwrites bonds or other debt
instruments issued by the state or any political subdivision thereof, shall report
to the director the total deposits held at each of its branches located in the
State of Oregon. [1997 c.631 §321]
     714.079
Closure and relocation of branches. A banking institution may close and relocate branches provided the
banking institution provides the Director of the Department of Consumer and
Business Services with a copy of any notice required under 12 U.S.C.
1831r-1(a), or comparable federal law, at the time and in the form required by
such law or laws. [1997 c.631 §322]
     714.080 [Amended by 1973 c.797 §327; repealed by
1997 c.631 §567]
     714.090 [Amended by 1971 c.68 §5; repealed by 1973
c.797 §428]
(
     714.095
Establishment of branches by out-of-state banks in this state; powers and
activities at branches. (1)
An out-of-state bank may occupy and maintain its initial branches in this state
if and only if the branches are acquired by the out-of-state bank in accordance
with ORS chapters 711 and 713.
     (2) An out-of-state bank that is properly
occupying and maintaining one or more branches in Oregon in accordance with ORS
chapters 711 and 713 may thereafter open, occupy and maintain one or more
additional branches in this state. The out-of-state bank shall not be required
to file an application under ORS 714.025 to establish such additional branches.
     (3) An out-of-state bank that acquires
branches in accordance with ORS chapters 711 and 713 shall be entitled to
exercise powers and engage in activities at its branches in this state as
provided in ORS 713.010 and applicable federal law. [1997 c.631 §324]
     714.100 [Amended by 1963 c.195 §11; 1969 c.360 §1;
1973 c.797 §328; repealed by 1993 c.255 §4]
     714.105
Establishment of branches by extranational institutions in this state; powers
and activities at branches.
(1) An extranational banking institution may occupy and maintain branches in
this state as permitted by ORS chapter 713 and applicable federal law.
     (2) An extranational banking institution
may exercise powers and engage in activities at branches located in this state
as permitted by ORS chapter 713 and applicable federal law. [1997 c.631 §325]
     714.110 [Amended by 1973 c.797 §329; repealed by
1997 c.631 §567]
     714.120 [Repealed by 1963 c.402 §11]
     714.130 [Amended by 1973 c.797 §330; repealed by
1997 c.631 §567]
     714.133 [1993 c.229 §18; repealed by 1997 c.631 §567]
     714.135 [1993 c.229 §19; repealed by 1997 c.631 §567]
     714.140 [Amended by 1973 c.797 §331; repealed by
1997 c.631 §567]
     714.150 [Amended by 1973 c.797 §332; repealed by
1997 c.631 §567]
     714.160 [Amended by 1973 c.797 §333; repealed by
1997 c.631 §567]
     714.170 [Amended by 1973 c.797 §334; repealed by
1997 c.631 §567]
     714.180 [1991 c.31 §2; repealed by 1997 c.631 §567]
AUTOMATED
TELLER MACHINES; NIGHT DEPOSIT FACILITIES
     714.200 [1975 c.193 §11; 1985 c.762 §45; 1993 c.381 §1;
repealed by 1997 c.631 §567]
     714.205
Disclosure of fees for ATM transaction; method; rules. (1) If the operator of an ATM charges a fee
to any person to use the ATM, the operator shall disclose to persons using the
ATM that a fee will be imposed for the ATM transaction.
     (2) Subject to subsection (3) of this
section, the disclosure required under subsection (1) of this section shall be
made electronically during the ATM transaction and shall allow the person who
will be charged a fee to cancel the ATM transaction without incurring a fee.
The disclosure shall also be printed on the ATM transaction receipt.
     (3) The Director of the Department of
Consumer and Business Services may adopt rules conforming the disclosure
requirements of subsection (2) of this section to disclosure requirements
contained in:
     (a) Any law enacted by the Congress of the
     (b) Any regulation adopted by any federal
agency having regulatory authority over ATMs. [1997 c.631 §310b]
     714.210
Use of ATMs; verification; application of branch banking law. (1) A banking institution, through its own
facilities or those of an entity described in ORS 708A.160, may make available
for use by its customers and others one or more ATMs. Every transaction
initiated through an ATM shall be subject to verification by the banking
institution either by direct wire transmission or otherwise.
     (2) ORS 714.025 does not apply to the
establishment and maintenance of ATMs. [1975 c.193 §3; 1993 c.381 §2; 1997
c.631 §309]
     714.220 [1975 c.193 §4; 1993 c.381 §3; repealed by
1997 c.631 §567]
     714.230 [1975 c.193 §5; repealed by 1989 c.245 §1]
     714.240 [1975 c.193 §6; 1979 c.810 §1; 1989 c.245 §2;
1993 c.381 §4; repealed by 1997 c.631 §567]
     714.250 [1975 c.193 §7; 1979 c.810 §2; 1993 c.381 §5;
repealed by 1997 c.631 §567]
     714.260 [1975 c.193 §8; 1993 c.381 §6; repealed by
1997 c.631 §567]
     714.270
Prohibitions on use of ATM for banking information. No person shall use or attempt to use an ATM
facility for the purpose of obtaining any information concerning an account or
line of credit other than the personÂ’s own account or line of credit without
the prior approval of an authorized signer on the account or line of credit. No
person having received prior approval of the customer shall utilize such
authority to obtain through the use of the ATM any information not necessary to
the transaction which the customer seeks to accomplish through its use. [1975
c.193 §9; 1993 c.381 §7; 1997 c.631 §310]
     714.280
Legislative intent of ATM and night deposit facility law. (1) It is the intent of the Legislative
Assembly in enacting ORS 714.280 to 714.315 to enhance the safety of consumers
using ATMs and night deposit facilities in
     (2) It is not the intent of the
Legislative Assembly in enacting ORS 714.280 to 714.315 to impose a duty to
relocate or modify ATMs or night deposit facilities upon the occurrence of any
particular events or circumstances, but rather to establish a means for the
evaluation of all ATMs and night deposit facilities as provided in ORS 714.210
to 714.992. [1993 c.381 §§9,11]
     714.285
Adoption of procedures for evaluating safety of ATM or night deposit
facilities. Before
installing any ATM or night deposit facility, the operator shall adopt
procedures for evaluating the safety of the ATM or night deposit facility. For
ATMs and night deposit facilities installed on or before July 1, 1994,
operators shall adopt procedures not later than July 1, 1994. The procedures
shall include a consideration of the following:
     (1) The extent to which the lighting for
the ATM or night deposit facility complies or will comply with the standards
required by ORS 714.290 and 714.295.
     (2) The presence of landscaping,
vegetation or other obstructions in the area of the ATM or night deposit
facility, the access area and the defined parking area.
     (3) The incidence of crimes of violence in
the immediate neighborhood of the ATM or night deposit facility, as reflected
in the records of the local law enforcement agency and of which the operator
has actual knowledge. [1993 c.381 §10]
     714.290
Deadlines for compliance with ORS 714.295. (1) Each operator of an ATM or night deposit facility installed after
July 1, 1994, shall comply with ORS 714.295. Compliance with ORS 714.295 by
operators of ATMs and night deposit facilities existing on or before July 1,
1994, shall be optional until July 1, 1996, and mandatory thereafter. This
section shall apply to an operator of an ATM or night deposit facility only to
the extent that the operator controls the access area or defined parking area
to be lighted.
     (2) If an access area or a defined parking
area is not controlled by the operator of an ATM or night deposit facility, and
if the person who leased the ATM or night deposit facility site to the operator
controls the access area or defined parking area, the person who controls the
access area or defined parking area shall comply with ORS 714.295 regarding any
ATM or night deposit facility installed after July 1, 1994. Regarding any ATM
or night deposit facility installed on or before July 1, 1994, the person shall
comply with ORS 714.295 no later than July 1, 1996. [1993 c.381 §12]
     714.295
Lighting requirements for ATMs and night deposit facilities. The operator, owner or other person
responsible for the ATM or night deposit facility shall provide lighting during
hours of darkness for an open and operating ATM or night deposit facility and
any defined parking area, access area and the exterior of an enclosed ATM or
night deposit facility installation according to the following standards:
     (1) There shall be a minimum of 10
candlefoot power at the face of the ATM or night deposit facility and extending
in an unobstructed direction outward five feet.
     (2) There shall be a minimum of two
candlefoot power within 50 feet in all unobstructed directions from the face of
the ATM or night deposit facility. In the event the ATM or night deposit
facility is located within 10 feet of the corner of the building and the ATM or
night deposit facility is generally accessible from the adjacent side, there
shall be minimum of two candlefoot power along the first 40 unobstructed feet
of the adjacent side of the building.
     (3) There shall be a minimum of two
candlefoot power in that portion of the defined parking area within 60 feet of
the ATM or night deposit facility. [1993 c.381 §13]
     714.300
Issuance of safety information to customers of ATMs and night deposit
facilities. The issuers of
access devices shall furnish customers receiving the devices with notices of
basic safety precautions which customers should employ while using an ATM or
night deposit facility. This information shall be furnished by personally
delivering or by mailing the information to each customer whose mailing address
as to the account to which the access device relates is in this state. This
information shall be furnished with respect to access devices issued after July
1, 1994, at or before the time the customer is furnished with his or her access
device. With respect to a customer to whom an access device has been issued on
or before July 1, 1994, the information shall be delivered or mailed to the
customer on or before December 31, 1994. Only one notice need be furnished per
household, and if access devices are furnished to more than one customer for a
single account or set of accounts or on the basis of a single application or
other request for the access devices, only a single notice need be furnished in
satisfaction of the notification responsibilities as to all those customers.
The information may be included with other disclosures related to the access
device furnished to the customer, such as with any initial or periodic
disclosure statement furnished pursuant to the Electronic Fund Transfer Act (15
U.S.C. 1501 et seq.). [1993 c.381 §14]
     714.305
Exempted ATMs and night deposit facilities. The requirements of ORS 714.280 (2) and 714.285 to 714.295 shall not
apply to any ATM or night deposit facility that is:
     (1) Located inside of a building, unless
it is a freestanding installation that exists for the sole purpose of providing
an enclosure for the ATM or night deposit facility.
     (2) Located inside of a building, except
to the extent that a transaction can be conducted from outside the building.
     (3) Located in any area, including any
access area, building, enclosed space or parking area that is not controlled by
the operator. [1993 c.381 §15]
     714.310
Preemption of local regulation.
ORS 714.210 to 714.315 supersede and preempts all rules, regulations, codes,
statutes or ordinances of all cities, counties, municipalities and local
agencies regarding customer safety at ATMs or night deposit facilities located
in Oregon. [1993 c.381 §16]
     714.315
Creation of rebuttable presumption. Compliance with ORS 714.280 to 714.300 shall create a rebuttable
presumption that the operator of the ATM or night deposit facility in question
has provided adequate measures for the safety of users of the ATM or night
deposit facility. [1993 c.381 §17]
PENALTIES
     714.990 [Repealed by 1973 c.797 §428]
     714.992
Criminal penalty. Violation
knowingly of ORS 714.270 is a Class C felony. [1975 c.193 §10]
     714.995
Civil penalty. Each day a
banking institution operates a branch that has not been approved or deemed
approved by the Director of the Department of Consumer and Business Services,
the banking institution is subject to a penalty of up to $1,000. The penalty
shall be assessed and collected as prescribed in ORS 706.570 (2). [1997 c.631 §323]
_______________
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