2007 Oregon Code - Chapter 128 :: Chapter 128 - Trusts - Charitable Activities
Chapter 128 —
Trusts; Charitable Activities
2007 EDITION
TRUSTS; CHARITABLE ACTIVITIES
PROTECTIVE PROCEEDINGS; POWERS OF ATTORNEY;
TRUSTS
(Temporary provisions relating to court-appointed trustees are compiled
as notes preceding ORS 128.001)
PREPARATION OF TRUSTS
128.001Â Â Â Â Limitations
on accepting payment for preparation of trust
PRIVATE FOUNDATION AND
128.085Â Â Â Â Limitations
on trustee’s administration of “private foundation” trust
128.090Â Â Â Â Limitations
on trustee’s administration of “split-interest” trust
128.095Â Â Â Â Trustee
may amend governing instrument of “private foundation” or “split-interest”
trust with prior consent of Attorney General and benefited organizations
DEPOSIT OF SECURITIES IN CLEARING
CORPORATIONS
128.100Â Â Â Â Authority
of fiduciary to deposit securities in clearing corporation
UNIFORM PRUDENT MANAGEMENT OF INSTITUTIONAL
FUNDS ACT
128.305Â Â Â Â Short
title
128.316Â Â Â Â Definitions
for ORS 128.305 to 128.336
128.318Â Â Â Â Standard
of conduct in managing and investing institutional fund
128.322Â Â Â Â Appropriation
for expenditure or accumulation of endowment fund; rules of construction
128.326Â Â Â Â Delegation
of management and investment functions
128.328Â Â Â Â Release
or modification of restrictions on management, investment or purpose
128.332Â Â Â Â Reviewing
compliance
128.334Â Â Â Â Relation
to Electronic Signatures in Global and National Commerce Act
128.336Â Â Â Â Uniformity
of application and construction
EMPLOYEESÂ’ TRUSTS
128.510Â Â Â Â Definitions
for ORS 128.520
128.520Â Â Â Â EmployeesÂ’
trust may be in perpetuity; accumulation of income
BUSINESS TRUSTS
128.560    “Business
trust” described
128.565Â Â Â Â Business
trust permitted
128.570Â Â Â Â Business
trusts and trustees not subject to bank and trust company regulations
128.573Â Â Â Â Forms;
rules
128.575Â Â Â Â Filing
with Office of Secretary of State required; fees; amendments
128.580Â Â Â Â Business
trusts subject to certain corporate laws
128.585Â Â Â Â Personal
liability of trustees, shareholders or beneficiaries of business trust
128.590Â Â Â Â Filing
of trust instrument as conclusive evidence of compliance with laws; exception
128.595Â Â Â Â Annual
report; due date; content; notice of requirement; effect of failure to file
128.597Â Â Â Â Inactivation
of business trust
128.599Â Â Â Â Reinstatement
of business trust following inactivation
128.600Â Â Â Â Filing,
service, copying and certification fees
CHARITABLE TRUST AND CORPORATION ACT
128.610Â Â Â Â Short
title
128.620Â Â Â Â Definitions
for ORS 128.610 to 128.750
128.630Â Â Â Â Application
of ORS 128.610 to 128.750
128.640Â Â Â Â Exemptions
from application of ORS 128.610 to 128.750
128.650Â Â Â Â Register
of charitable organizations; authority of Attorney General to maintain register
128.660Â Â Â Â Filing
of articles of incorporation or other instrument with Attorney General
128.670Â Â Â Â Filing
of reports; rules; fees; authority of Attorney General relating to reports;
civil penalty
128.680Â Â Â Â Investigatory
authority of Attorney General
128.690Â Â Â Â Order
for attendance by Attorney General; effect
128.710Â Â Â Â Enforcement;
jurisdiction of court
128.720Â Â Â Â Copies
of certain documents and notice to be provided Attorney General
128.730Â Â Â Â List
of certain claims for exemptions from taxation to be provided Attorney General
128.735Â Â Â Â Attorney
fees in action to enforce fiduciary or other duty
128.750Â Â Â Â Uniformity
of interpretation
CHARITABLE SOLICITATIONS ACT
128.801Â Â Â Â Definitions
for ORS 128.801 to 128.898
128.802Â Â Â Â Registration
of professional fund raising firms required; fee; renewal; notice of change of
information
128.804Â Â Â Â Fund
raising notice; contents
128.807Â Â Â Â Required
submission of financial plan to nonprofit beneficiary
128.809Â Â Â Â Required
disclosure of agency by solicitors
128.812Â Â Â Â Required
submission of financial report after campaign
128.814Â Â Â Â Presumption
of breach of fiduciary duty by officer or director of nonprofit beneficiary
128.821Â Â Â Â Registration
of commercial fund raising firms required; fee; renewal; notice of change in
information
128.823Â Â Â Â Designation
of amount to be paid to beneficiaries; manner of specification; minimum amount
payable
128.824Â Â Â Â Disclosures
required in commercial fund raising solicitations
128.826Â Â Â Â Commercial
fund raising contracts and notice; filing
128.841Â Â Â Â Commercial
fund raising firm financial reports; contents; filing
128.846Â Â Â Â Maintenance
of records by commercial fund raising firm
128.848Â Â Â Â Accountings
required of commercial coventurer
128.856Â Â Â Â Written
consent by beneficiary to use of name
128.861Â Â Â Â Written
consent required for representations about use of tickets
128.866Â Â Â Â Injunction
by Attorney General
128.871Â Â Â Â Denial
or revocation of registration
128.876Â Â Â Â Rules
128.881Â Â Â Â Deposit
of fees and penalties; use
128.886Â Â Â Â False
or misleading representations prohibited
128.891Â Â Â Â Prohibited
representations; written notice
128.893Â Â Â Â Use
of in-state address
128.898Â Â Â Â Short
title
CIVIL PENALTIES
128.899Â Â Â Â Civil
penalties for violation of ORS 128.610 to 128.750
CRIMINAL PENALTIES
128.992Â Â Â Â Penalties
for ORS 128.610 to 128.750
128.995Â Â Â Â Penalties
for ORS 128.801 to 128.898
(Temporary provisions relating to
court-appointed trustees)
     Note: Sections 1 to 5, chapter 472, Oregon Laws
2005, provide:
     Sec.
1. (1) Before appointing any
person to serve as trustee, a court shall require that the person submit a
statement that includes:
     (a) The full name of the person, including
any business name used by the person;
     (b) The address and telephone number of
the person;
     (c) The educational credentials and
professional experience of the person;
     (d) Identification of any other trusts
administered by the person;
     (e) The aggregate dollar value of all
assets currently under the personÂ’s supervision;
     (f) A disclosure of whether the person has
ever been removed by a court as trustee for cause or has resigned as court
appointed trustee in a specific case and, if so, the circumstances of the
removal or resignation, the case name and number and the address of the court;
and
     (g) Other information required by court
rule.
     (2) Any person who is required to provide
a statement under this section must notify the court within 30 days of any
change to the information contained in the statement.
     (3) If the person provides false
information in a statement required under this section, or fails to comply with
subsection (2) of this section, the court may remove the person as trustee and
impose such sanction as may be appropriate.
     (4) The provisions of this section do not
apply to:
     (a) A trust company as defined in ORS
706.008, or an employee of the trust company while the employee is employed by
the trust company.
     (b) An institution insured by the Federal
Deposit Insurance Corporation, a holding company or affiliate of the
institution or an employee of the institution while the employee is employed by
the institution.
     (c) Any other trust identified by a rule
of the Chief Justice of the Supreme Court. [2005 c.472 §1]
     Sec.
2. Upon removing any person
as trustee who was required to provide a statement under section 1 of this 2005
Act, a court shall give written notice to the State Court Administrator of the
removal and provide such other information as may be required by the State
Court Administrator. The State Court Administrator shall maintain a record of
the information in a format that is easily accessible by judges of this state
and members of the public. The State Court Administrator shall retain
information submitted under this section for at least five years. [2005 c.472 §2]
     Sec.
3. Sections 1 and 2 of this
2005 Act do not affect the ability of the Chief Justice of the Supreme Court,
by rule or order, to require that courts of this state provide information to
the State Court Administrator relating to guardians, conservators and other
court appointed fiduciaries. [2005 c.472 §3]
     Sec.
4. Notwithstanding section 2
of this 2005 Act, upon the repeal of sections 1, 2 and 3 of this 2005 Act by
section 5 of this 2005 Act, the State Court Administrator may destroy all
records maintained by the State Court Administrator under section 2 of this
2005 Act. [2005 c.472 §4]
     Sec.
5. Sections 1, 2 and 3 of
this 2005 Act are repealed January 2, 2010. [2005 c.472 §5]
PREPARATION
OF TRUSTS
     128.001
Limitations on accepting payment for preparation of trust. (1) Except as provided in this section, a
person may not accept anything of value in exchange for the preparation of a
trust.
     (2) Subsection (1) of this section does
not apply to an attorney who charges and accepts a fee for the preparation of a
trust for a client in the course of representing that client.
     (3) Subsection (1) of this section does
not apply to any trust company or financial institution as defined in ORS
chapter 706.
     (4) Subsection (1) of this section does
not apply to a resulting or constructive trust, a business trust that provides
for certificates to be issued to the beneficiary, an investment trust, a voting
trust, a security instrument, a trust created by the judgment of a court, a
liquidation trust, a trust for the primary purpose of paying dividends,
interests, interest coupons, salaries, wages, pensions, profits or employee
benefits of any kind, an instrument in which a person is nominee or escrowee
for another person or a trust created in deposits in any financial institution.
     (5) Nothing in this section authorizes any
person to engage in the practice of law in violation of ORS 9.160. [1997 c.806 §1;
2003 c.576 §383]
     128.003 [1977 c.614 §10; repealed by 2005 c.348 §128]
     128.005 [1977 c.614 §1; 2003 c.576 §384; repealed by
2005 c.348 §128]
     128.007 [1977 c.614 §2; 1995 c.157 §18; repealed by
2005 c.348 §128]
     128.009 [1977 c.614 §3; 1981 c.915 §1; 1989 c.73 §1;
1993 c.228 §1; 1995 c.157 §19; 2003 c.84 §13; repealed by 2005 c.348 §128]
     128.010 [Renumbered 128.055]
     128.015 [1977 c.614 §4; 1993 c.228 §2; repealed by
2005 c.348 §128]
     128.020 [Amended by 1969 c.267 §1; renumbered
128.057]
     128.021 [1977 c.614 §5; 1995 c.157 §20; repealed by
2005 c.348 §128]
     128.025 [1969 c.267 §3; renumbered 128.061]
     128.026 [1977 c.614 §6; 1995 c.157 §21; repealed by
2005 c.348 §128]
     128.030 [Amended by 1977 c.614 §13; renumbered
128.065]
     128.031 [1977 c.614 §7; repealed by 2005 c.348 §128]
     128.035 [1977 c.614 §8; repealed by 2005 c.348 §128]
     128.040 [Repealed by 1977 c.614 §14]
     128.041 [1977 c.614 §9; repealed by 2005 c.348 §128]
     128.045 [1977 c.614 §11; repealed by 2005 c.348 §128]
     128.047 [1993 c.226 §3; repealed by 2005 c.348 §128]
     128.050 [Repealed by 1977 c.614 §14]
     128.051 [1977 c.614 §12; repealed by 2005 c.348 §128]
     128.055 [Formerly 128.010; repealed by 2005 c.348 §128]
     128.057 [Formerly 128.020; 1979 c.382 §1; repealed
by 1995 c.157 §26]
     128.060 [Amended by 1973 c.827 §19; repealed by 1977
c.614 §14]
     128.061 [1969 c.267 §3; formerly 128.025; repealed
by 1979 c.382 §2]
     128.065 [Formerly 128.030; 1995 c.157 §22; repealed
by 2005 c.348 §128]
     128.070 [Repealed by 1973 c.506 §46]
     128.075 [1973 c.367 §16; renumbered 128.595]
     128.080 [Amended by 1973 c.177 §2; repealed by 1973
c.506 §46]
PRIVATE
FOUNDATION AND
     128.085
Limitations on trustee’s administration of “private foundation” trust. Notwithstanding any provision to the
contrary in the governing instrument or any law of this state, the trustee of a
trust which is a “private foundation” as defined in section 509 of the Internal
Revenue Code of 1954 (including nonexempt charitable trusts as defined in
section 4947 (a) (1) of the Internal Revenue Code of 1954) shall not engage in
any act of self dealing as defined in section 4941 (d) of the Internal Revenue
Code of 1954; shall distribute its income and, when necessary, amounts from
principal at such time and in such manner as not to subject the trust to the
taxes on failure to distribute income imposed by section 4942 of the Internal
Revenue Code of 1954; shall not retain any excess business holdings as defined
in section 4943 (c) of the Internal Revenue Code of 1954; shall not make any
investments in such manner as to subject the trust to the taxes on investments
which jeopardize charitable purpose imposed by section 4944 of the Internal
Revenue Code of 1954; and shall not make any taxable expenditures as defined in
section 4945 (d) of the Internal Revenue Code of 1954. [1971 c.197 §1]
     128.090
Limitations on trustee’s administration of “split-interest” trust. (1) Notwithstanding any provision to the
contrary in the governing instrument or any law of this state, the trustee of a
trust which is a “split-interest trust” as defined in section 4947 (a) (2) of
the Internal Revenue Code of 1954, shall not engage in any act of self dealing
as defined in section 4941 (d) of the Internal Revenue Code of 1954; shall not
retain any excess business holdings as defined in section 4943 (c) of the
Internal Revenue Code of 1954, unless the trust is one exempted from the
requirements of section 4943 by section 4947 (b) (3) of the Internal Revenue
Code of 1954; shall not make any investment in such manner as to subject the
trust to the taxes on investments which jeopardize charitable purpose imposed
by section 4944 of the Internal Revenue Code of 1954, unless the trust is one
exempted from the requirements of section 4944 by section 4947 (b) (3) of the
Internal Revenue Code of 1954; and shall not make any taxable expenditures as
defined in section 4945 (d) of the Internal Revenue Code of 1954.
     (2) This section shall not apply with
respect to:
     (a) Any amounts payable under the terms of
a trust to income beneficiaries, unless a deduction was allowed under section
170 (f) (2) (B), section 2055 (e) (2) (B), or section 2522 (c) (2) (B) of the
Internal Revenue Code of 1954;
     (b) Any amounts in trust other than
amounts for which a deduction was allowed under section 170, section 545 (b)
(2), section 556 (b) (2), section 642 (c), section 2055, section 2106 (a) (2)
or section 2522 of the Internal Revenue Code of 1954, if such other amounts are
segregated from amounts for which no deduction was allowable; or
     (c) Any amounts transferred in trust
before May 27, 1969. [1971 c.197 §2]
     128.095
Trustee may amend governing instrument of “private foundation” or “split-interest”
trust with prior consent of Attorney General and benefited organizations. The trustee of a trust which is a private
foundation to which ORS 128.085 applies or a split-interest trust to which ORS
128.090 applies may, with the prior consent of the Attorney General, amend the
terms of the governing instrument to the extent necessary (1) to assure
conformity of the governing instrument with the requirements for exemption from
the taxes imposed by sections 4941 to 4945 of the Internal Revenue Code of
1954, including amendments which broaden, extend, reduce or limit the
charitable purposes for which the trust is administered, or (2) to terminate
the status of the trust as a private foundation in a manner described in section
507 (b) (1) of the Internal Revenue Code of 1954. Prior to giving consent, the
Attorney General shall determine that the proposed amendments are necessary or
appropriate to achieve the charitable purposes of the trust. If the trust is
for the exclusive benefit of one or more charitable organizations, the trustee
shall also obtain the prior consent of such organizations prior to amending the
terms of the governing instrument in the manner set forth in this section. [1971
c.197 §3]
DEPOSIT OF
SECURITIES IN CLEARING CORPORATIONS
     128.100
Authority of fiduciary to deposit securities in clearing corporation. (1) Notwithstanding any other provision of
law, any fiduciary holding securities in a fiduciary capacity, any financial
institution or trust company holding securities as a custodian or managing
agent, and any financial institution or trust company holding securities as
custodian for a fiduciary is authorized to deposit or arrange for the deposit
of the securities in a clearing corporation as defined in ORS 78.1020. When the
securities are deposited, certificates representing securities of the same
class of the same issuer may be merged and held in bulk in the name of the
nominee of the clearing corporation with any other securities of the same class
deposited in the clearing corporation by any person regardless of the ownership
of the securities, and certificates of small denomination may be merged into
one or more certificates of larger denomination. The records of the fiduciary
and the records of the financial institution or trust company acting as
custodian, as managing agent or as custodian for a fiduciary shall at all times
show the name of the party for whose account the securities are deposited.
Ownership of, and other interests in, the securities may be transferred by
bookkeeping entry on the books of the clearing corporation without physical
delivery of certificates representing the securities. A financial institution
or trust company depositing securities pursuant to this section shall be
subject to the rules and regulations as, in the case of state-chartered
institutions, the Department of Consumer and Business Services and, in the case
of national banking associations, the Comptroller of the Currency may from time
to time issue. A financial institution or a trust company acting as custodian
for a fiduciary shall, on demand by the fiduciary, certify in writing to the
fiduciary the securities deposited by the financial institution or trust
company in the clearing corporation for the account of the fiduciary. A
fiduciary shall, on demand by any party to a judicial proceeding for the
settlement of the fiduciaryÂ’s account or on demand by the attorney for the
party, certify in writing to the party the securities deposited by the
fiduciary in the clearing corporation for its account as the fiduciary.
     (2) This section shall apply to any
fiduciary holding securities in a fiduciary capacity, and to any financial
institution or trust company holding securities as a custodian, managing agent
or custodian for a fiduciary, acting on October 5, 1973, or who thereafter may
act regardless of the date of the agreement, instrument or court order by which
it is appointed and regardless of whether or not the fiduciary, custodian,
managing agent or custodian for a fiduciary owns capital stock of the clearing
corporation. [1973 c.365 §§1,2; 1985 c.676 §59; 1985 c.762 §177; 1997 c.631 §414]
     128.102 [1993 c.226 §5; 1997 c.659 §1; repealed by
2005 c.348 §128]
     128.110 [Amended by 1979 c.284 §108; repealed by
1981 c.66 §8]
     128.115 [1981 c.66 §1; repealed by 2005 c.348 §128]
     128.120 [Repealed by 1981 c.66 §8]
     128.125 [1981 c.66 §2; repealed by 2005 c.348 §128]
     128.130 [Amended by 1979 c. 284 §109; repealed by
1981 c.66 §8]
     128.135 [1981 c.66 §3; 1993 c.222 §6; 2003 c.279 §33a;
repealed by 2005 c.348 §128]
     128.140 [Repealed by 1981 c.66 §8]
     128.145 [1981 c.66 §4; repealed by 2005 c.348 §128]
     128.150 [Repealed by 1981 c.66 §8]
     128.155 [1981 c.66 §5; 1991 c.331 §42; 1997 c.631 §415;
repealed by 2005 c.348 §128]
     128.160 [Repealed by 1981 c.66 §8]
     128.165 [1981 c.66 §6; repealed by 2005 c.348 §128]
     128.170 [Repealed by 1981 c.66 §8]
     128.175 [1981 c.66 §7; repealed by 2005 c.348 §128]
     128.177 [1993 c.222 §2; repealed by 2005 c.348 §128]
     128.179 [1993 c.222 §3; repealed by 2005 c.348 §128]
     128.180 [Repealed by 1981 c.66 §8]
     128.181 [1993 c.222 §4; repealed by 2005 c.348 §128]
     128.183 [1993 c.222 §5; repealed by 2005 c.348 §128]
     128.185 [1993 c.222 §7; repealed by 2005 c.348 §128]
     128.190 [Repealed by 1981 c.66 §8]
     128.192 [1995 c.157 §1; repealed by 2005 c.348 §128]
     128.194 [1995 c.157 §2; repealed by 2005 c.348 §128]
     128.196 [1995 c.157 §3; repealed by 2005 c.348 §128]
     128.198 [1995 c.157 §4; repealed by 2005 c.348 §128]
     128.200 [Repealed by 1981 c.66 §8]
     128.202 [1995 c.157 §5; repealed by 2005 c.348 §128]
     128.204 [1995 c.157 §§6,7; repealed by 2005 c.348 §128]
     128.206 [1995 c.157 §8; repealed by 2005 c.348 §128]
     128.208 [1995 c.157 §9; repealed by 2005 c.348 §128]
     128.210 [Repealed by 1981 c.66 §8]
     128.212 [1995 c.157 §10; repealed by 2005 c.348 §128]
     128.214 [1995 c.157 §11; repealed by 2005 c.348 §128]
     128.216 [1995 c.157 §§12,14; repealed by 2005 c.348 §128]
     128.218 [1995 c.157 §13; repealed by 2005 c.348 §128]
     128.220 [Repealed by 1981 c.66 §8]
     128.230 [Repealed by 1981 c.66 §8]
     128.232 [1995 c.679 §1; repealed by 2005 c.348 §128]
     128.234 [1995 c.679 §2; repealed by 2005 c.348 §128]
     128.236 [1995 c.679 §3; repealed by 2005 c.348 §128]
     128.238 [1995 c.679 §4; repealed by 2005 c.348 §128]
     128.240 [Repealed by 1981 c.66 §8]
     128.242 [1995 c.679 §5; repealed by 2005 c.348 §128]
     128.244 [1995 c.679 §6; repealed by 2005 c.348 §128]
     128.246 [1995 c.679 §7; repealed by 2005 c.348 §128]
     128.250 [Amended by 1979 c.284 §110; repealed by
1981 c.66 §8]
     128.255 [1997 c.151 §4; repealed by 2005 c.348 §128]
     128.256 [2001 c.593 §1; 2005 c.348 §99; renumbered
130.350 in 2005]
     128.258 [2001 c.593 §1a; 2005 c.348 §100; renumbered
130.355 in 2005]
     128.260 [Amended by 1979 c.284 §111; repealed by
1981 c.66 §8]
     128.262 [2001 c.593 §2; renumbered 130.360 in 2005]
     128.264 [2001 c.593 §3; 2005 c.348 §101; renumbered
130.365 in 2005]
     128.266 [2001 c.593 §4; 2003 c.14 §45; 2005 c.348 §102;
renumbered 130.370 in 2005]
     128.268 [2001 c.593 §5; renumbered 130.375 in 2005]
     128.270 [Repealed by 1981 c.66 §8]
     128.272 [2001 c.593 §6; 2005 c.348 §103; renumbered
130.380 in 2005]
     128.274 [2001 c.593 §7; renumbered 130.385 in 2005]
     128.276 [2001 c.593 §7a; renumbered 130.390 in 2005]
     128.278 [2001 c.593 §8; renumbered 130.395 in 2005]
     128.280 [2001 c.593 §9; 2005 c.348 §121; renumbered
130.400 in 2005]
     128.282 [2001 c.593 §9a; renumbered 130.405 in 2005]
     128.284 [2001 c.593 §9b; renumbered 130.410 in 2005]
     128.286 [2001 c.593 §9c; renumbered 130.415 in 2005]
     128.288 [2001 c.593 §9d; 2005 c.348 §104; renumbered
130.420 in 2005]
     128.290 [2001 c.593 §10; 2005 c.348 §105; renumbered
130.425 in 2005]
     128.292 [2001 c.593 §11; renumbered 130.430 in 2005]
     128.294 [2001 c.593 §12; 2005 c.348 §106; renumbered
130.435 in 2005]
     128.296 [2001 c.593 §13; renumbered 130.440 in 2005]
     128.298 [2001 c.593 §14; renumbered 130.445 in 2005]
     128.300 [2001 c.593 §15; 2005 c.348 §107; renumbered
130.450 in 2005]
UNIFORM
PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS ACT
     128.305
Short title. ORS 128.305 to
128.336 may be cited as the Uniform Prudent Management of Institutional Funds
Act. [2007 c.554 §10]
     128.308 [2001 c.636 §1; repealed by 2005 c.348 §128]
     128.310 [1975 c.707 §11; repealed by 2007 c.554 §11]
     128.315 [1975 c.707 §2; repealed by 2007 c.554 §11]
     128.316
Definitions for ORS 128.305 to 128.336. As used in ORS 128.305 to 128.336:
     (1) “Charitable purpose” means the relief
of poverty, the advancement of education or religion, the promotion of health,
the promotion of a governmental purpose or any other purpose the achievement of
which is beneficial to the community.
     (2) “Endowment fund” means an
institutional fund or part of an institutional fund that, under the terms of a
gift instrument, is not wholly expendable by the institution on a current
basis. “Endowment fund” does not include assets that an institution designates
as an endowment fund for the institutionÂ’s own use.
     (3) “Gift instrument” means a record or
records, including an institutional solicitation, under which property is
granted to, transferred to or held by an institution as an institutional fund.
     (4) “Institution” means:
     (a) A person, other than an individual,
organized and operated exclusively for charitable purposes;
     (b) A government or governmental
subdivision, agency or instrumentality, to the extent that it holds funds
exclusively for a charitable purpose; and
     (c) A trust that had both charitable and
noncharitable interests, after all noncharitable interests have terminated.
     (5) “Institutional fund” means a fund held
by an institution exclusively for charitable purposes. “Institutional fund”
does not include:
     (a) Program-related assets;
     (b) A fund held for an institution by a
trustee that is not an institution;
     (c) A fund in which a beneficiary that is
not an institution has an interest, other than an interest that could arise
upon violation or failure of the purposes of the fund; or
     (d) A fund managed by the State Treasurer,
moneys held by the State Treasurer for investment or moneys managed or held for
investment by or on behalf of the State Treasurer under ORS chapter 293 or 348.
     (6) “Person” means an individual,
corporation, business trust, estate, trust, partnership, limited liability
company, association, joint venture, public corporation, government or
governmental subdivision, agency or instrumentality, or any other legal or
commercial entity.
     (7) “Program-related asset” means an asset
held by an institution primarily to accomplish a charitable purpose of the
institution and not primarily for investment.
     (8) “Record” means information that is
inscribed on a tangible medium or that is stored in an electronic or other
medium and is retrievable in perceivable form. [2007 c.554 §1]
     128.318
Standard of conduct in managing and investing institutional fund. (1) Subject to the intent of a donor
expressed in a gift instrument, an institution, in managing and investing an
institutional fund, shall consider the charitable purposes of the institution
and the purposes of the institutional fund.
     (2) In addition to complying with the duty
of loyalty imposed by law other than ORS 128.305 to 128.336, each person
responsible for managing and investing an institutional fund shall manage and
invest the fund in good faith and with the care an ordinarily prudent person in
a like position would exercise under similar circumstances.
     (3) In managing and investing an
institutional fund, an institution:
     (a) May incur only costs that are appropriate
and reasonable in relation to the assets, the purposes of the institution and
the skills available to the institution; and
     (b) Shall make a reasonable effort to
verify facts relevant to the management and investment of the fund.
     (4) An institution may pool two or more
institutional funds for purposes of management and investment.
     (5) Except as otherwise provided by a gift
instrument, the following rules apply:
     (a) In managing and investing an
institutional fund, the following factors, if relevant, must be considered:
     (A) General economic conditions;
     (B) The possible effect of inflation or
deflation;
     (C) The expected tax consequences, if any,
of investment decisions or strategies;
     (D) The role that each investment or
course of action plays within the overall investment portfolio of the fund;
     (E) The expected total return from income
and the appreciation of investments;
     (F) Other resources of the institution;
     (G) The needs of the institution and the
fund to make distributions and to preserve capital; and
     (H) An asset’s special relationship or
special value, if any, to the charitable purposes of the institution.
     (b) Management and investment decisions
about an individual asset must be made not in isolation, but instead in the
context of the institutional fundÂ’s portfolio of investments as a whole and as
a part of an overall investment strategy having risk and return objectives
reasonably suited to the fund and to the institution.
     (c) Except as otherwise provided by law
other than ORS 128.305 to 128.336, an institution may invest in any kind of
property or type of investment consistent with this section.
     (d) An institution shall diversify the
investments of an institutional fund unless the institution reasonably
determines that, because of special circumstances, the purposes of the fund are
better served without diversification.
     (e) Within a reasonable time after
receiving property, an institution shall make and carry out decisions
concerning the retention or disposition of the property or to rebalance a
portfolio, in order to bring the institutional fund into compliance with the
purposes, terms and distribution requirements of the institution as necessary
to meet other circumstances of the institution and the requirements of ORS
128.305 to 128.336.
     (f) A person that has special skills or
expertise, or is selected in reliance upon the personÂ’s representation that the
person has special skills or expertise, has a duty to use those skills or that
expertise in managing and investing institutional funds. [2007 c.554 §2]
     128.320 [1975 c.707 §3; 1995 c.79 §47; repealed by
2007 c.554 §11]
     128.322
Appropriation for expenditure or accumulation of endowment fund; rules of
construction. (1) Subject to
subsection (4) of this section and the intent of a donor expressed in the gift
instrument, an institution may appropriate for expenditure or accumulate so
much of an endowment fund as the institution determines is prudent for the
uses, benefits, purposes and duration for which the endowment fund is established.
Unless stated otherwise in the gift instrument, the assets in an endowment fund
are donor-restricted assets until appropriated for expenditure by the
institution. In making a determination to appropriate or accumulate, the
institution shall act in good faith, with the care that an ordinarily prudent
person in a like position would exercise under similar circumstances, and shall
consider, if relevant, the following factors:
     (a) The duration and preservation of the
endowment fund;
     (b) The purposes of the institution and
the endowment fund;
     (c) General economic conditions;
     (d) The possible effect of inflation or
deflation;
     (e) The expected total return from income
and the appreciation of investments;
     (f) Other resources of the institution;
and
     (g) The investment policy of the
institution.
     (2) To limit the authority to appropriate
for expenditure or accumulate under subsection (1) of this section, a gift
instrument must specifically state the limitation.
     (3) Terms in a gift instrument designating
a gift as an endowment, or a direction or authorization in the gift instrument
to use only “income,” “interest,” “dividends” or “rents, issues or profits,” or
“to preserve the principal intact,” or words of similar import:
     (a) Create an endowment fund of permanent
duration unless other language in the gift instrument limits the duration or
purpose of the fund; and
     (b) Do not otherwise limit the authority
to appropriate for expenditure or accumulate under subsection (1) of this
section.
     (4) The appropriation for expenditure in
any year of an amount greater than seven percent of the fair market value of an
endowment fund, calculated on the basis of market values determined at least
quarterly and averaged over a period of not less than three years immediately preceding
the year in which the appropriation for expenditure was made, creates a
rebuttable presumption of imprudence. For an endowment fund in existence for
fewer than three years, the fair market value of the endowment fund must be
calculated for the period the endowment fund has been in existence. This
subsection does not:
     (a) Apply to an appropriation for
expenditure permitted under law other than ORS 128.305 to 128.336 or by the
gift instrument; or
     (b) Create a presumption of prudence for
an appropriation for expenditure of an amount less than or equal to seven
percent of the fair market value of the endowment fund. [2007 c.554 §3]
     128.325 [1975 c.707 §4; repealed by 2007 c.554 §11]
     128.326
Delegation of management and investment functions. (1) Subject to any specific limitation set
forth in a gift instrument or in law other than ORS 128.305 to 128.336, an
institution may delegate to an external agent the management and investment of
an institutional fund to the extent that an institution could prudently
delegate under the circumstances. An institution shall act in good faith, with
the care that an ordinarily prudent person in a like position would exercise
under similar circumstances, in:
     (a) Selecting an agent;
     (b) Establishing the scope and terms of
the delegation, consistent with the purposes of the institution and the
institutional fund; and
     (c) Periodically reviewing the agent’s
actions in order to monitor the agentÂ’s performance and compliance with the
scope and terms of the delegation.
     (2) In performing a delegated function, an
agent owes a duty to the institution to exercise reasonable care to comply with
the scope and terms of the delegation.
     (3) An institution that complies with
subsection (1) of this section is not liable for the decisions or actions of an
agent to which the function was delegated.
     (4) By accepting delegation of a
management or investment function from an institution that is subject to the
laws of this state, an agent submits to the jurisdiction of the courts of this
state in all proceedings arising from or related to the delegation or the
performance of the delegated function.
     (5) An institution may delegate management
and investment functions to its committees, officers or employees as authorized
by law of this state other than ORS 128.305 to 128.336. [2007 c.554 §4]
     128.328
Release or modification of restrictions on management, investment or purpose. (1) If the donor consents in a record, an
institution may release or modify, in whole or in part, a restriction contained
in a gift instrument on the management, investment or purpose of an
institutional fund. A release or modification may not allow a fund to be used
for a purpose other than a charitable purpose of the institution.
     (2) The court, upon application of an institution,
may modify a restriction contained in a gift instrument regarding the
management or investment of an institutional fund if the restriction has become
impracticable or wasteful, the restriction impairs the management or investment
of the fund or, because of circumstances not anticipated by the donor, a
modification of a restriction will further the purposes of the fund. The
institution shall notify the Attorney General of the application, and the
Attorney General must be given an opportunity to be heard. To the extent
practicable, any modification must be made in accordance with the donorÂ’s
probable intention.
     (3) If a particular charitable purpose or
a restriction contained in a gift instrument on the use of an institutional
fund becomes unlawful, impracticable, impossible to achieve or wasteful, the
court, upon application of an institution, may modify the purpose of the fund
or the restriction on the use of the fund in a manner consistent with the
charitable purposes expressed in the gift instrument. The institution shall
notify the Attorney General of the application, and the Attorney General must
be given an opportunity to be heard.
     (4) If an institution determines that a
restriction contained in a gift instrument on the management, investment or
purpose of an institutional fund is unlawful, impracticable, impossible to
achieve or wasteful, the institution, within 60 days after notification to the
Attorney General, may release or modify the restriction, in whole or part, if:
     (a) The institutional fund subject to the
restriction has a total value of less than $25,000;
     (b) More than 20 years have elapsed since
the fund was established; and
     (c) The institution uses the property in a
manner consistent with the charitable purposes expressed in the gift
instrument.
     (5) The provisions of this section apply
to property and other interests given by private donors as a gift to a public
body, as defined by ORS 174.109, or to any instrumentality of a public body.
This subsection does not limit any other authority that a public body or an
instrumentality of a public body may have to release or modify a restriction
contained in a gift instrument on the management, investment or purpose of
funds. [2007 c.554 §5]
     128.330 [1975 c.707 §5; repealed by 2007 c.554 §11]
     128.332
Reviewing compliance.
Compliance with ORS 128.305 to 128.336 is determined in light of the facts and
circumstances existing at the time a decision is made or action is taken, and
not by hindsight. [2007 c.554 §6]
     128.334
Relation to Electronic Signatures in Global and National Commerce Act. ORS 128.305 to 128.336 modify, limit and
supersede the Electronic Signatures in Global and National Commerce Act, 15
U.S.C. 7001 et seq., but do not modify, limit or supersede 15 U.S.C. 7001(a),
or authorize electronic delivery of any of the notices described in 15 U.S.C.
7003(b). [2007 c.554 §8]
     128.335 [1975 c.707 §6; repealed by 2007 c.554 §11]
     128.336
Uniformity of application and construction. In applying and construing ORS 128.305 to 128.336, consideration must
be given to the need to promote uniformity of the law with respect to its
subject matter among states that enact the Uniform Prudent Management of
Institutional Funds Act. [2007 c.554 §9]
     128.340 [1975 c.707 §7; repealed by 2007 c.554 §11]
     128.345 [1975 c.707 §8; repealed by 2007 c.554 §11]
     128.350 [1975 c.707 §10; repealed by 2007 c.554 §11]
     128.355 [1975 c.707 §9; repealed by 2007 c.554 §11]
     128.370 [2003 c.84 §1; 2005 c.348 §108; renumbered
130.520 in 2005]
     128.375 [2003 c.84 §2; 2005 c.348 §111; renumbered
130.530 in 2005]
     128.378 [2003 c.84 §3; 2005 c.348 §112; renumbered
130.535 in 2005]
     128.380 [2003 c.84 §4; renumbered 130.540 in 2005]
     128.382 [2003 c.84 §5; renumbered 130.545 in 2005]
     128.385 [2003 c.84 §6; 2005 c.348 §113; renumbered
130.550 in 2005]
     128.388 [2003 c.84 §7; 2005 c.348 §114; renumbered
130.555 in 2005]
     128.390 [2003 c.84 §8; 2005 c.348 §115; renumbered
130.560 in 2005]
     128.392 [2003 c.84 §9; renumbered 130.565 in 2005]
     128.395 [2003 c.84 §10; 2005 c.348 §116; renumbered
130.570 in 2005]
     128.397 [2003 c.84 §11; 2005 c.348 §117; renumbered
130.575 in 2005]
     128.398 [2003 c.84 §12; 2005 c.22 §99; 2005 c.348 §118;
renumbered 130.240 in 2005]
     128.400 [1987 c.813 §3; 1997 c.631 §416; 2001 c.796 §7;
renumbered 97.923 in 2001]
     128.405 [1987 c.813 §1; 2001 c.796 §16; renumbered
97.925 in 2001]
     128.407 [1987 c.813 §2; 2001 c.796 §17; renumbered
97.927 in 2001]
     128.410 [1953 c.639 §1; 1955 c.524 §1; 1959 c.691 §1;
1965 c.611 §14; 1967 c.359 §681; 1979 c.661 §1; repealed by 1987 c.813 §17]
     128.412 [1959 c.691 §2; 1967 c.359 §682; 1985 c.207 §23;
1987 c.813 §11; 1991 c.331 §43; 1997 c.631 §417; 1999 c.68 §1; 2001 c.796 §8;
renumbered 97.929 in 2001]
     128.414 [1993 c.467 §3; 1995 c.325 §2; 2001 c.796 §9;
renumbered 97.931 in 2001]
     128.415 [1953 c.639 §2; 1955 c.524 §2; 1959 c.691 §3;
1981 c.484 §1; 1985 c.207 §24; 1987 c.214 §1; 1987 c.813 §12; 1989 c.171 §14;
2001 c.796 §10; renumbered 97.937 in 2001]
     128.420 [1981 c.719 §9a; 1983 c.810 §26; 1987 c.158 §18b;
repealed by 1987 c.813 §17]
     128.421 [1987 c.813 §4; 1989 c.1048 §3; 2001 c.796 §11;
renumbered 97.939 in 2001]
     128.423 [1987 c.813 §5; 1989 c.1048 §1; 1995 c.720 §1;
2001 c.796 §12; renumbered 97.941 in 2001]
     128.425 [1987 c.813 §6; 1989 c.1048 §2; 1995 c.720 §2;
2001 c.796 §13; renumbered 97.943 in 2001]
     128.430 [1987 c.813 §7; 2001 c.796 §14; renumbered
97.944 in 2001]
     128.435 [1987 c.813 §8; 1995 c.144 §8; 2001 c.796 §15;
renumbered 97.945 in 2001]
     128.440 [1987 c.813 §8a; 2001 c.796 §18; renumbered
97.946 in 2001]
     128.460 [1971 c.182 §1; repealed by 2005 c.348 §128]
     128.470 [1971 c.182 §2; repealed by 2005 c.348 §128]
     128.480 [1971 c.182 §3; repealed by 2005 c.348 §128]
     128.490 [1971 c.182 §4; repealed by 2005 c.348 §128]
     128.500 [1971 c.182 §5; repealed by 2005 c.348 §128]
EMPLOYEESÂ’
TRUSTS
     128.510
Definitions for ORS 128.520.
As used in ORS 128.520, “employees’ trust” means a trust of real or personal
property forming part of a pension, profit sharing, stock bonus, annuity,
disability or death benefit plan of an employer or group of employers for the
benefit of the employees of the employer or group of employers, to which
contributions are made by such employers or employees, or both, for the purpose
of distributing income or principal, or both, to such employees or the
beneficiaries of such employees. [1955 c.586 §1]
     128.520
EmployeesÂ’ trust may be in perpetuity; accumulation of income. An employeesÂ’ trust may be permitted to
accumulate for such time as may be necessary to accomplish the purpose for
which it is created, and is not invalid as violating any rule of law against
perpetuities or the suspension of the power of alienation of title to property.
The income from any property held in an employeesÂ’ trust may continue in
perpetuity or in accordance with the terms of such trust, and the plan of which
such trust forms a part, for such time as may be necessary to accomplish the
purpose for which such trust is created. [1955 c.586 §2]
BUSINESS
TRUSTS
     128.560
“Business trust” described.
A “business trust” is any association, including a real estate investment
trust, engaged in or operating a business under a written trust agreement or
declaration of trust, the beneficial interest under which is divided into
transferable certificates of participation or shares, other than a trust
engaged solely in exercising the voting rights pertaining to corporate shares
or other securities in accordance with the terms of a written instrument. [1971
c.491 §1]
     128.565
Business trust permitted. A
business trust is permitted as a recognized form of association for the conduct
of business within the State of
     128.570
Business trusts and trustees not subject to bank and trust company regulations. Neither a business trust nor the trustees of
such trust are subject to the provisions of ORS chapters 706, 707 and 709. [1971
c.491 §3; 1997 c.631 §418]
     128.573
Forms; rules. Upon request,
the Secretary of State may furnish forms for documents required or permitted to
be filed under ORS 128.560 to 128.600. The Secretary of State may by rule
require the use of the forms. [1995 c.215 §23]
     128.575
Filing with Office of Secretary of State required; fees; amendments. (1) Any business trust desiring to do business
in this state shall first submit to the Office of Secretary of State a copy of
the trust instrument creating the trust and any subsequent amendments to the
trust and a document setting forth:
     (a) The business trust name and the state
or country of formation;
     (b) The names and addresses of its
trustees;
     (c) The street address of the business
trustÂ’s registered office in this state and the name of the registered agent;
     (d) A mailing address to which the
Secretary of State may mail notices; and
     (e) Any additional identifying information
that the Secretary of State by rule may require.
     (2) The filing described in subsection (1)
of this section shall be accompanied by the applicable filing fee.
     (3) If the Secretary of State finds that
the document contains the required information, the Secretary of State, when
all fees have been paid, shall file the trust instrument and document and
return an acknowledgment of filing to the sender.
     (4) If a business trust amends its trust
instrument it shall submit for filing a copy of the amendment to the Office of
Secretary of State. The amendment shall set forth:
     (a) The name of the business trust as
shown on the records of the Office of Secretary of State; and
     (b) The information as changed. [1971
c.491 §4; 1973 c.367 §12; 1985 c.351 §21; 1985 c.728 §81a; 1987 c.94 §128; 1995
c.215 §24; 1999 c.486 §18]
     128.580
Business trusts subject to certain corporate laws. Any business trust shall be subject to such
provisions of law, now or hereafter enacted, with respect to domestic and
foreign corporations, respectively, as relate to the issuance of securities,
filing of required statements or reports, service of process, general grants of
power to act, right to sue and be sued, limitation of individual liability of
shareholders and rights to acquire, mortgage, sell, lease, operate and
otherwise to deal in real and personal property. Except as otherwise provided
in its trust agreement or declaration of trust, or any amendments thereto, any
business trust shall also be subject to the other provisions of ORS chapter 60
and other rights and duties existing under the common law and statutes of this
state applicable to domestic and foreign corporations. Title to any real or
personal property may be held in the name of the trust, one or more of the
trustees or any other person as nominee. [1971 c.491 §5; 1973 c.367 §13; 1979
c.208 §6; 1987 c.94 §99]
     128.585
Personal liability of trustees, shareholders or beneficiaries of business
trust. The trustees,
shareholders or beneficiaries of a business trust shall not, as such, be
personally liable for any obligations of such business trust arising after June
25, 1971. Persons becoming trustees, shareholders or beneficiaries after June
25, 1971, shall not be personally liable, as such, for obligations of the
business trust existing on June 25, 1971. [1971 c.491 §6; 1973 c.367 §14]
     128.590
Filing of trust instrument as conclusive evidence of compliance with laws;
exception. For purposes of
ORS 128.585, filing of the trust instrument by the Secretary of State shall be
conclusive evidence that all conditions precedent required to be performed by
the business trust have been complied with and that the business trust is
authorized to do business in this state, except as against this state in a proceeding
to cancel or revoke the filing for violations of the provisions of ORS 128.580.
[1971 c.491 §7; 1985 c.728 §82]
     128.595
Annual report; due date; content; notice of requirement; effect of failure to
file. (1) Each business
trust by the anniversary date shall file a report with the Secretary of State
accompanied by the annual fee.
     (2) The report shall contain the
following:
     (a) The name of the business trust and the
state or country under whose law it is formed;
     (b) The names and addresses of its
trustees;
     (c) The street address of the registered
office in this state and the name of the trustÂ’s registered agent at that
office;
     (d) A mailing address to which the
Secretary of State may mail notices;
     (e) The category of the classification
code as established by rule of the Secretary of State most closely designating
the primary business activity of the business trust; and
     (f) Any additional identifying information
that the Secretary of State by rule may require.
     (3) The annual report shall be on forms
prescribed and furnished by the Secretary of State. The information contained
in the annual report shall be current as of 30 days before the anniversary of
the business trust.
     (4) The Secretary of State shall mail the
report form to any address shown for the business trust in the current records
of the Office of the Secretary of State. The failure of the business trust to
receive the report form from the Secretary of State shall not relieve the
business trust of its duty to deliver a report as required by this section.
     (5) If the Secretary of State finds the
report conforms to the requirements of this section, the Secretary of State
shall file the report.
     (6) If the Secretary of State finds that
the report does not conform to the requirements of this section, the Secretary
of State shall return the report to the business trust. The business trust
shall correct the annual report and return it to the Secretary of State within
45 days after the Secretary of State returns the report.
     (7) If no report is filed by the reporting
date or if no corrected report is filed within the 45-day period, the Secretary
of State shall send to the business trust a final notice advising that no
report has been filed and it is, therefore, assumed that the business trust is
no longer active unless a report is filed within 45 days after the mailing of
such final notice.
     (8) Not less than 45 days after the date
of mailing of the final notice provided for by subsection (7) of this section,
the Secretary of State may assume and note on the records of the Secretary of
State that the business trust is inactive. [Formerly 128.075; 1983 c.717 §29;
1985 c.351 §22; 1985 c.728 §82b; 1987 c.94 §130; 1987 c.843 §18; 1993 c.190 §17;
1995 c.215 §25; 2007 c.186 §17]
     128.597
Inactivation of business trust.
The Secretary of State may commence a proceeding to inactivate the trust
instrument of a business trust if:
     (1) The business trust does not pay when
due any fees imposed by ORS 128.560 to 128.600;
     (2) The business trust does not deliver
its annual report to the Secretary of State when due;
     (3) The business trust is without a
registered agent or registered office in this state;
     (4) The business trust does not notify the
Secretary of State that its registered agent or registered office has been
changed, that its registered agent has resigned or that its registered office
has been discontinued; or
     (5) The business trust’s period of
duration stated in the trust instrument expires. [1995 c.215 §27]
     128.599
Reinstatement of business trust following inactivation. (1) A business trust inactivated under ORS
128.597 may apply to the Secretary of State for reinstatement within five years
from the date of inactivation. The application shall state:
     (a) The name of the business trust and
effective date of its administrative inactivation; and
     (b) That the ground or grounds for
inactivation either did not exist or have been eliminated.
     (2) If the Secretary of State determines
that the application contains the information required by subsection (1) of
this section, that the information is correct and that the business trustÂ’s
name satisfies the requirements of ORS 60.094, the Secretary of State shall
reinstate the business trust.
     (3) When the reinstatement is effective,
it relates back to and takes effect as of the effective date of the
administrative inactivation and the business trust is considered to resume
carrying on its business as if the administrative inactivation had never
occurred. [1995 c.215 §28]
     128.600
Filing, service, copying and certification fees. The Secretary of State shall collect the
fees described in ORS 56.140 for each document delivered for filing under ORS
128.560 to 128.600 and for process served on the secretary under ORS 128.560 to
128.600. The secretary may collect the fees described in ORS 56.140 for copying
any public record under ORS 128.560 to 128.600, certifying the copy or
certifying to other facts of record under ORS 128.560 to 128.600. [1987 c.94 §129;
1991 c.132 §14; 1995 c.215 §26; 1999 c.652 §15]
CHARITABLE TRUST
AND CORPORATION ACT
     128.610
Short title. ORS 128.610 to
128.750 may be cited as the Charitable Trust and Corporation Act. [1963 c.583 §1;
1971 c.589 §1; 1981 c.593 §1; 1985 c.729 §25; 1985 c.730 §4]
     128.620
Definitions for ORS 128.610 to 128.750. As used in ORS 128.610 to 128.750:
     (1) “Charitable corporation” means any
nonprofit corporation organized under the laws of this state for charitable or
eleemosynary purposes and any similar foreign corporation doing business or
holding property in this state for such purposes. The mere making of grants or
donations to institutions or beneficiaries within the State of Oregon, or the
investigation of applicants for such grants or donations, does not constitute
doing business in this state. However, the solicitation of funds for charitable
purposes in this state shall constitute doing business therein.
     (2) “Charitable organization” includes
charitable corporations, trustees and other charitable organizations not
specifically exempted from the application of ORS 128.610 to 128.750.
     (3) “Charitable purpose” means any purpose
to promote the well-being of the public at large, or for the benefit of an
indefinite number of persons, including but not limited to educational,
literary, or scientific purposes, or for the prevention of cruelty to children
or animals, or for the benefit of religion, rehabilitation services, public
recreation, civic improvement, or services which lessen the burdens of
government.
     (4) “Religious organization” means any
organized church or group organized for the purpose of divine worship,
religious teaching, or other directly ancillary purposes.
     (5) “Trustee” means:
     (a) Any individual, group of individuals,
corporation or other legal entity holding property in trust pursuant to any
charitable trust;
     (b) Any corporation that has accepted
property to be used for a particular charitable corporate purpose as
distinguished from the general purposes of the corporation; and
     (c) A corporation formed for the
administration of a charitable trust, pursuant to the directions of the settlor
or at the instance of the trustee. [1963 c.583 §§3,4; 1971 c.589 §2; 1981 c.593
§2; 1985 c.730 §5; 1989 c.334 §1; 2007 c.571 §2]
     128.630
Application of ORS 128.610 to 128.750. (1) ORS 128.610 to 128.750 apply to all charitable organizations
holding property for charitable purposes over which the state or the Attorney
General has enforcement or supervisory powers.
     (2) ORS 128.610 to 128.750 shall apply
regardless of any contrary provisions of any instrument. [1963 c.583 §§2,14;
1971 c.589 §3; 1981 c.593 §3; 1985 c.729 §27; 1985 c.730 §6; 2007 c.571 §3]
     128.640
Exemptions from application of ORS 128.610 to 128.750. (1) ORS 128.610 to 128.750 do not apply to
the United States, any state, territory or possession of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, or to any of their
agencies or governmental subdivisions.
     (2) ORS 128.650 to 128.670 and 128.720 do
not apply to:
     (a) Any religious corporation sole or
other religious corporation or organization which holds property for religious
purposes, or to any officer, director or trustee thereof who holds property for
like purposes;
     (b) A cemetery that is registered with the
State Mortuary and Cemetery Board under ORS 692.275 or a historic cemetery
listed with the Oregon Commission on Historic Cemeteries under ORS 97.782;
     (c) A trustee that holds property for
charitable purposes in the event that the sole beneficiary of a charitable
remainder trust serves as trustee; or
     (d) A child-caring agency regulated under
ORS 418.215 to 418.265. [1963 c.583 §5; 1971 c.589 §4; 1981 c.593 §4; 1985
c.730 §7; 1989 c.334 §2; 1999 c.731 §10; 2003 c.173 §8]
     128.650
Register of charitable organizations; authority of Attorney General to maintain
register. The Attorney
General shall establish and maintain a register of charitable organizations
subject to ORS 128.610 to 128.750 and of the particular trust or other
relationship under which the charitable organizations hold property for
charitable purposes and, to that end, may conduct whatever investigation is
necessary, and shall obtain from public records, court officers, taxing
authorities, trustees, and other sources, whatever information, copies of
instruments, reports and records that are needed for the establishment and
maintenance of the register. [1963 c.583 §6; 1971 c.589 §5; 1981 c.593 §5; 1985
c.729 §29; 1985 c.730 §8; 2007 c.571 §4]
     128.660
Filing of articles of incorporation or other instrument with Attorney General. Every charitable organization subject to ORS
128.610 to 128.750 that has received property for charitable purposes shall
file with the Attorney General, upon receiving possession or control of such
property, a copy of the articles of incorporation, trust agreement or other
instrument providing for title, powers or duties. [1963 c.583 §7; 1971 c.589 §6;
1981 c.593 §6; 2007 c.571 §5]
     128.670
Filing of reports; rules; fees; authority of Attorney General relating to
reports; civil penalty. (1)
Except as otherwise provided, every charitable organization subject to ORS
128.610 to 128.750 shall, in addition to filing copies of the instruments
previously required, file with the Attorney General periodic written reports
setting forth information as to the nature of the assets held for charitable
purposes and the administration thereof by the corporation or trustee.
     (2) The Attorney General may classify
trusts and other relationships concerning property held for a charitable
purpose as to purpose, nature of assets, duration of the trust or other
relationship, amount of assets, amounts to be devoted to charitable purposes,
nature of trustee, or otherwise, and may establish different rules for the
different classes as to time and nature of the reports required to the ends
that:
     (a) The Attorney General shall receive
reasonably current, periodic reports as to all charitable trusts or other
relationships of a similar nature, which will enable the Attorney General to
ascertain whether they are being properly administered; and
     (b) Periodic reports shall not
unreasonably add to the expense of the administration of charitable trusts and
similar relationships.
     (3) The Attorney General may suspend the
filing of reports as to a particular charitable trust or relationship for a
reasonable, specifically designated time after the Attorney General has filed
in the register of charitable trusts a written statement that the interests of
the beneficiaries will not be prejudiced thereby and that periodic reports are
not required for proper supervision by the Attorney GeneralÂ’s office.
     (4) A copy of an account filed by the
trustee in any court having jurisdiction of the trust or other relationship, if
the account substantially complies with the rules of the Attorney General, may
be filed as a report required by this section.
     (5) The first report for a trust or
similar relationship hereafter established, unless the filing thereof is
suspended as provided in subsection (3) of this section, shall be filed not
later than four months and 15 days following the close of the first calendar or
fiscal year in which any part of the income or principal is authorized or
required to be applied to a charitable purpose. Subsequent annual reports shall
be submitted not later than four months and 15 days following the close of each
calendar or fiscal year adopted by the charitable organization.
     (6) The Attorney General shall make rules
as to the time for filing reports, the contents thereof, and the manner of
executing and filing them. The Attorney General may make additional rules and
amend existing rules as necessary for the proper administration of the
Charitable Trust and Corporation Act.
     (7)(a) A charitable organization, when
filing a report required under this section, shall pay a fee to the Department
of Justice in accordance with a fee schedule established by the department by
rule.
     (b) The fee schedule shall consist of the
following elements:
     (A) A fee that the department shall set
according to a scale graduated on the basis of the charitable organizationÂ’s
receipts and income during the time covered by the report, with a lower fee
applying to lower receipts and income and a higher fee applying to higher
receipts and income. The minimum applicable fee is $10 and the maximum
applicable fee is $400.
     (B) A fee based on a percentage of the
fund balance the charitable organization has at the close of the organizationÂ’s
calendar or fiscal year. The department shall set the fee under this
subparagraph at not more than 0.02 of one percent of the fund balance or
$2,000, whichever is less.
     (c) The charitable organization shall pay
a fee that consists of both elements set forth in paragraph (b) of this
subsection at the time the organization files a report required under this
section.
     (d) In calculating the fee element set
forth in paragraph (b)(B) of this subsection, the department may not include in
the fund balance any fixed assets that the charitable organization uses for
operations.
     (e) The department shall ensure that the
aggregate amount of fees paid under this section is sufficient to pay the
departmentÂ’s expenses in administering ORS 128.610 to 128.750 and 128.801 to
128.898.
     (8)(a) If the charitable organization does
not pay the fee prescribed by rules adopted under subsection (7) of this
section or fails to file a report by the date due, the charitable organization,
in addition to the fee due, shall pay a delinquency fee in an amount the
department specifies by rule. The department may increase the delinquency fee
or charge additional delinquency fees based on the length of time the payment
or report is delinquent.
     (b) In addition to charging any
delinquency fee required under paragraph (a) of this subsection, the Attorney
General, in compliance with the procedures set forth in ORS chapter 183, may
take either or both of these actions:
     (A) Impose a civil penalty of not more
than $1,000 on any charitable organization that fails to file a delinquent
report or fails to pay a delinquency fee or a fee due under subsection (7) of
this section within 90 days after receiving notice of the delinquency; or
     (B) Order any charitable organization to
cease soliciting contributions until the charitable organization has paid a fee
or delinquency fee imposed under this section or has filed a report required
under this section.
     (c) In any judicial review of the order of
the Attorney General, the order shall be reversed or modified only if the court
finds that the Attorney General lacked authority to issue the order or impose
the penalty or that the amount of the penalty imposed was unconscionable in the
circumstances.
     (d) The Attorney General may grant an
extension of time for a reasonable period for filing a report upon written
application filed by or on behalf of the charitable organization stating the
reason that additional time should be allowed for filing the report beyond the
ordinary due date. If the request is submitted on or prior to the due date for
filing the report, the delinquency fee described in paragraph (a) of this
subsection will not be due unless the report and fee are thereafter not filed
within the extended period granted for filing the report, or, if the request is
denied, within 10 days after the denial is received by the corporation.
     (9) All fees and penalties received by the
Department of Justice under subsections (7) and (8) of this section shall be
paid over to the State Treasurer monthly for deposit in the Department of
Justice Operating Account created under the provisions of ORS 180.180. Amounts
deposited pursuant to this subsection are continuously appropriated to the
Attorney General to pay the expenses of the Department of Justice in
administering ORS 128.610 to 128.750 and 128.801 to 128.898 and for no other
purpose. [1963 c.583 §8; 1971 c.589 §7; 1973 c.506 §40; 1973 c.775 §4; 1975
c.388 §5; 1981 c.593 §7; 1985 c.730 §9; 1991 c.734 §7; 2007 c.571 §1]
     128.680
Investigatory authority of Attorney General. The Attorney General may investigate transactions and relationships of
charitable organizations subject to ORS 128.610 to 128.750 for the purpose of
ascertaining whether or not the purposes of the charitable organization are
being carried out in accordance with the terms and provisions of the articles
of incorporation or other instrument, whether a person or organization has
engaged in a violation of ORS 128.610 to 128.750 or whether such a person or
organization has breached a fiduciary duty arising under the common law. The
Attorney General may require any agent, trustee, fiduciary, beneficiary,
institution, association or corporation, or other person to appear, at a named
time and place, in the county designated by the Attorney General, where the
person resides or is found, to give information under oath and to produce
books, memoranda, papers, documents of title, and evidence of assets,
liabilities, receipts or disbursements in the possession or control of the
person ordered to appear. [1963 c.583 §10; 1971 c.589 §8; 1981 c.593 §9; 1985
c.729 §30; 1985 c.730 §11; 2007 c.571 §7]
     128.690
Order for attendance by Attorney General; effect. When the Attorney General requires the
attendance of any person, as provided in ORS 128.680, the Attorney General
shall issue an order setting forth the time when and the place where attendance
is required and shall cause the same to be delivered to or sent by registered
or certified mail to the person at least 14 days before the date fixed for
attendance. Such order shall have the same force and effect as a subpoena and,
upon application of the Attorney General, obedience to the order may be
enforced by any court having jurisdiction of charitable trusts in the county
where the trust may be in existence or administered or the person receiving it
resides or is found, in the same manner as though the notice were a subpoena.
The court, after hearing, for cause, and upon application of any person
aggrieved by the order, shall have the right to alter, amend, revise, suspend
or postpone all or any part of its provisions. [1963 c.583 §11]
     128.700 [1963 c.583 §12; repealed by 1973 c.794 §34]
     128.710
Enforcement; jurisdiction of court. (1) The Attorney General may institute appropriate proceedings to
secure compliance with ORS 128.610 to 128.750 and to invoke the jurisdiction of
the court. Willful failure to comply with an order of any court having
jurisdiction of charitable trusts requiring an accounting by a charitable
corporation or trustee shall constitute grounds for removal of the officers of
such charitable corporation or of such trustee and the appointment by the court
of successor officers or trustee. The powers and duties of the Attorney General
provided in ORS 128.610 to 128.750 are in addition to existing powers and
duties.
     (2) Nothing in ORS 128.610 to 128.750
shall impair or restrict the jurisdiction of any court with respect to any of
the matters covered by it, except that no court shall have jurisdiction to
modify or terminate any trust of property for charitable purposes unless the
Attorney General is a party to the proceedings. [1963 c.583 §13; 1971 c.589 §9;
1981 c.593 §10; 1985 c.729 §31; 1985 c.730 §12]
     128.720
Copies of certain documents and notice to be provided Attorney General. Every person who offers for probate any
instrument which establishes a testamentary trust of property for charitable
purposes or who records in any county any inter vivos transfer of property for
charitable purposes shall furnish a copy of such document to the Attorney
General. Upon filing the final account and petition for a judgment of
distribution of any estate through which a residuary testamentary trust for
charitable purposes is established, the personal representative shall mail a
copy thereof, and a copy of the notice fixing the time for filing objections
thereto, to the Attorney General not less than 20 days before the time fixed in
the notice. The custodian of the records of a court having jurisdiction of
probate matters or of charitable trusts shall furnish such copies of papers,
records and files of the office of the custodian relating to the subject of ORS
128.610 to 128.750 as the Attorney General requires. [1963 c.583 §15; 1971
c.589 §10; 2003 c.576 §385]
     128.730
List of certain claims for exemptions from taxation to be provided Attorney
General. Every officer,
agency, board or commission of this state, receiving applications for exemption
from taxation of any corporation, charitable trust or similar relationship in
which the corporation or trustee is subject to ORS 128.610 to 128.750 shall
annually file with the Attorney General a list of all applications received
during the year. [1963 c.583 §16; 1971 c.589 §11]
     128.735
Attorney fees in action to enforce fiduciary or other duty. (1) In any suit or action against a
charitable organization to enforce any fiduciary or other duty arising under
ORS 128.610 to 128.750 or to enforce any fiduciary duty arising under the
common law, the court in its discretion may award the prevailing party
reasonable attorney fees at trial and on appeal and, as part of costs and
disbursements, reasonable investigative expenses and reasonable expert witness
fees.
     (2) If the Attorney General prevails, the
attorney fees, costs and disbursements of the Attorney General may, in the
discretion of the court, be a judgment against the responsible officers of the
charitable corporation or trustee of a charitable trust, or may be paid out of
the corpus of the trust. [1985 c.730 §2; 2007 c.571 §6]
     128.740 [1963 c.583 §17; 1971 c.589 §12; repealed by
1975 c.388 §8]
     128.750
Uniformity of interpretation.
The Charitable Trust and Corporation Act, ORS 128.610 to 128.750, shall be so
construed as to effectuate its general purpose to make uniform the law of those
states which enact it. [1963 c.583 §19; 1981 c.593 §11; 1985 c.730 §14]
CHARITABLE
SOLICITATIONS ACT
     128.801
Definitions for ORS 128.801 to 128.898. As used in ORS 128.801 to 128.898:
     (1) “Charitable purpose” means any purpose
to promote the well-being of the public at large, or for the benefit of an
indefinite number of persons, including but not limited to educational,
literary or scientific purposes, or for the prevention of cruelty to children
or animals, or for the benefit of religion, rehabilitation services, public
recreation, civic improvement or services which lessen the burdens of
government.
     (2) “Commercial fund raising solicitation”
means the solicitation of funds for nonprofit beneficiaries, whether named or
unspecified, through the sale of goods or services, whether the goods or
services are delivered to a purchaser or donated to third parties, and where
the solicitation is conducted by a commercial fund raising firm or commercial
coventurer. If donors receive insubstantial items or other benefits in return
for contributions, such a solicitation of funds is not a commercial fund
raising solicitation if the items or benefits received are considered premiums
and do not affect the deductibility of the contributions for federal income tax
purposes. A solicitation is conducted by a commercial fund raising firm or
commercial coventurer if the soliciting agents are under the direction and
control of a commercial fund raising firm or commercial coventurer; the fact
that the solicitors are paid by the beneficiary is of no consequence.
     (3) “Commercial coventurer” means any sole
proprietorship, partnership, corporation or any other legal entity, organized
for profit or formed as a nonprofit mutual benefit corporation, who is
regularly and primarily engaged in trade or commerce in this state other than
in conjunction with the raising of funds for nonprofit purposes and who
conducts commercial fund raising solicitations on an infrequent basis.
     (4) “Commercial fund raising firm” means
any sole proprietorship, partnership, corporation or any other legal entity,
organized for profit or formed as a nonprofit mutual benefit corporation, who,
for compensation or other consideration regularly conducts commercial fund
raising solicitations.
     (5) “Professional fund raising firm” means
any sole proprietorship, partnership, corporation or any other legal entity,
organized for profit or as a nonprofit mutual benefit corporation, who, for
compensation or other consideration, manages or conducts the solicitation of
funds, not including commercial fund raising solicitations, on behalf of any
nonprofit organization.
     (6)(a) “Solicitation” means any oral or
written request for a contribution, including the solicitorÂ’s offer or attempt
to sell any property, rights, services or other thing, in connection with
which:
     (A) The name of any nonprofit organization
is used as an inducement for making the contribution or consummating the sale;
or
     (B) Any statement is made which implies
that the whole or any part of the contribution or proceeds from the sale will
be donated to any nonprofit organization.
     (b) “Solicitation” does not include the
making of any request or appeal on behalf of a candidate, political committee
or measure as defined in ORS 260.005, unless the appeal states or implies that
contributions will be used, in whole or in part, for a charitable purpose or
includes a representation that a ticket to an event may be donated by a
contributor to the solicitors for use by another. [1985 c.729 §3; 1991 c.532 §1]
     128.802
Registration of professional fund raising firms required; fee; renewal; notice
of change of information.
(1) No person shall act as a professional fund raising firm with respect to the
solicitation of funds in this state on behalf of any nonprofit organization
unless the professional fund raising firm is registered with the Attorney
General.
     (2) Applications for registration or
reregistration shall be in writing, under oath, on a form prescribed by the
Attorney General and shall be accompanied by a fee in the amount of $250.
     (3) The application shall contain such
information as the Attorney General shall require and which is consistent with
ORS 128.801 to 128.898, including:
     (a) The address of the principal place of
business of the applicant and any local addresses if the principal place of
business is not located in the state.
     (b) The form of the applicant’s
organization.
     (c) The names and personal addresses of
all principals of the organization, including all officers and all persons who
own a 10 percent or more interest in the organization.
     (4) Each registration is valid for one
year and may be renewed for additional one-year periods upon application to the
Attorney General and payment of the registration fee.
     (5) The Attorney General shall be notified
in writing of any change in the information contained in the application within
seven days after the change occurs. [1991 c.532 §17]
     128.804
Fund raising notice; contents.
(1) Prior to each solicitation campaign to be conducted in this state, where
the services of a professional fund raising firm are employed, the firm shall
file a completed fund raising notice on forms prescribed by the Attorney
General. A copy of the written fund raising plan, described in ORS 128.807 and
a copy of the written disclosure, when required by ORS 128.809, shall be
attached to the notice.
     (2) The fund raising notice shall be in
writing, under oath, and shall include a description of the solicitation
campaign, the projected starting date of the campaign, a description of the
role of the firm, the bank account number and location where the solicited
funds will be deposited, including the name of the organization or
organizations that control the account and the address and telephone number of
the headquarters for each campaign if different than the principal place of
business identified on the firmÂ’s registration form, as well as the person in
charge of each such location. If the solicitation is being conducted by agents
of the firm, the notice shall include a provision affirming that the
solicitation material has been approved by the nonprofit beneficiary. [1991
c.532 §18]
     128.805 [1971 c.589 §14; 1981 c.593 §12; repealed by
1985 c.729 §1; 1985 c.730 §15]
     128.806 [1985 c.729 §4; repealed by 1991 c.532 §26]
     128.807
Required submission of financial plan to nonprofit beneficiary. (1) A professional fund raising firm shall
not participate in a solicitation campaign in this state without first
submitting a written financial plan to the nonprofit beneficiary. A nonprofit
organization, utilizing the services of a professional fund raising firm, shall
not solicit in this state unless it has obtained such a written financial plan
from the firm. The written financial plan shall provide a good faith projection
of the total expenses and revenue for each solicitation campaign contemplated
by the agreement with the nonprofit beneficiary.
     (2) In the case of solicitation campaigns
which are directed at targeted individual donors, such as in telemarketing or
direct mail solicitations, the plan shall specify whether each campaign is
directed toward new donor acquisitions, individual donor renewals or some
combination thereof. [1991 c.532 §19]
     128.809
Required disclosure of agency by solicitors. No person shall engage in an in-person solicitation as an agent of a
professional fund raising firm, including a face-to-face or telephone
solicitation, unless it is disclosed orally in the course of the solicitation
but prior to asking for a commitment for a contribution from the solicitee, and
in writing to any solicitee that makes a pledge to be delivered within 10 days
of the date of the pledge that the solicitor is operating under the direction
and control of a named professional fund raising firm. [1991 c.532 §20]
     128.810 [1959 c.599 §1; repealed by 1967 c.359 §704]
     128.811 [1985 c.729 §5; repealed by 1991 c.532 §26]
     128.812
Required submission of financial report after campaign. Within 90 days after a solicitation campaign
has been completed, unless funds are to be collected by the nonprofit
beneficiary, the professional fund raising firm shall file with the Attorney
General a financial report for the campaign, including gross receipts and all
expenditures incurred in the solicitation campaign. The report shall be
completed on a form prescribed by the Attorney General. The report shall be
signed by an official of the professional fund raising firm and an official
from each beneficiary and they shall certify, under oath, that it is true to the
best of their knowledge. A similar interim financial report shall be filed one
year after the start of the solicitation campaign in the case of a solicitation
campaign still in progress on that date. [1991 c.532 §21]
     128.813 [1975 c.388 §2; repealed by 1985 c.729 §1;
1985 c.730 §15]
     128.814
Presumption of breach of fiduciary duty by officer or director of nonprofit
beneficiary. (1) There shall
be a rebuttable presumption of a breach of fiduciary duty if an officer or
director of a nonprofit beneficiary enters into an agreement with a
professional fund raising firm:
     (a) For a duration to exceed two years
unless the nonprofit beneficiary has obtained written proposals from at least
two other professional fund raising firms; or
     (b) Where one of the stated or implied
purposes of the solicitation campaign is to acquire an identified list of
donors for use as a donor base for future solicitations by the nonprofit
beneficiary, unless the nonprofit beneficiary has exclusive rights to the
ownership and use of the list of donors.
     (2) It shall be presumed that such donor
list acquisition is a purpose of the campaign unless the agreement specifies
otherwise.
     (3) This section shall not prohibit a
professional fund raising firm from retaining a security interest in a list for
the limited purpose of recovering amounts owed to it pursuant to the terms of
the contract. [1991 c.532 §22]
     128.815 [1971 c.589 §14a; 1981 c.593 §13; repealed
by 1985 c.729 §1; 1985 c.730 §15]
     128.816 [1985 c.729 §6; repealed by 1991 c.532 §26]
     128.820 [1959 c.599 §§2,3,4,5; 1967 c.359 §125;
renumbered 731.704]
     128.821
Registration of commercial fund raising firms required; fee; renewal; notice of
change in information. (1)
No person shall engage in solicitations for contributions for or on behalf of a
commercial fund raising firm unless the commercial fund raising firm is
registered with the Attorney General.
     (2) Applications for registration or
reregistration shall be in writing, under oath, on a form prescribed by the
Attorney General and shall be accompanied by a fee in the amount of $250.
     (3) The application shall contain such
information as the Attorney General shall require and which is consistent with
ORS 128.801 to 128.898, including:
     (a) The address of the principal place of
business of the applicant and any local addresses if the principal place of
business is not located in the state.
     (b) The form of the applicant’s
organization.
     (c) The names and personal addresses of
all principals of the organization, including all officers and all persons who
own a 10 percent or more interest in the organization.
     (4) Each registration is valid for one
year and may be renewed for additional one-year periods upon application to the
Attorney General and payment of the registration fee.
     (5) The Attorney General shall be notified
in writing of any change in the information contained in the application within
seven days after the change occurs. [1985 c.729 §7; 1991 c.532 §2]
     128.823
Designation of amount to be paid to beneficiaries; manner of specification;
minimum amount payable. (1)
No person shall engage in commercial fund raising solicitations unless there is
a designated amount to be paid to nonprofit beneficiaries. Where the nonprofit
beneficiary is identified in the solicitation campaign, the amount shall be
specified in a contract or letter of agreement with such a beneficiary. The
amount shall be specified in terms of:
     (a) An amount per unit of the goods or
services to be purchased;
     (b) A specified percentage of the gross
funds solicited; or
     (c) A good faith estimate of the gross
funds solicited.
     (2) Nonprofit beneficiaries shall receive
no less than 90 percent of the designated estimate under subsection (1)(c) of
this section. Any designated amount shall exclude any amount which the
nonprofit beneficiary is to pay as expenses of the solicitation campaign, such
as all costs of the goods or services sold or cost of fund raising events
staged. [1991 c.532 §5]
     128.824
Disclosures required in commercial fund raising solicitations. (1) All commercial fund raising
solicitations shall include a clear and conspicuous disclosure of the identity
of the commercial fund raising firm or commercial coventurer.
     (a) In the case of a vending machine, it
shall be disclosed on the device that the machine is owned and operated by the
commercial fund raising firm or commercial coventurer.
     (b) In the case of an in-person
solicitation, including a face-to-face or telephone solicitation, it shall be
disclosed orally in the course of the solicitation but prior to asking for a
commitment for a contribution from the solicitee, and in writing to any
solicitee that makes a pledge to be delivered within 10 days of the date of the
pledge that the solicitor is operating under the direction and control of a named
commercial fund raising firm or commercial coventurer.
     (c) In the case of a solicitation by
advertisement or mass distribution, including posters, leaflets, automatic
dialing machines, publications and audio or video broadcasts, it shall be
disclosed in the body of the solicitation material that the product or service
is marketed by a named commercial fund raising firm or commercial coventurer.
     (2) All commercial fund raising
solicitations shall include a clear and conspicuous disclosure of the amount of
the solicited funds to be paid to the nonprofit beneficiary as provided in ORS
128.823.
     (a) In the case of a vending machine, the
disclosure shall be on the device.
     (b) In the case of an in-person
solicitation, including a face-to-face or telephone solicitation, the
disclosure shall be in the form of a written statement to any solicitee who
makes a pledge, to be delivered within 10 days of the date of the pledge.
     (c) In the case of a solicitation by
advertisement or mass distribution, the disclosure shall be in the body of the
solicitation material. [1991 c.532 §6]
     128.825 [1971 c.589 §15; repealed by 1985 c.729 §1;
1985 c.730 §15]
     128.826
Commercial fund raising contracts and notice; filing. (1) At least 10 days prior to the
commencement of each commercial fund raising solicitation campaign, a
commercial fund raising firm shall file with the Attorney General a completed
fund raising notice on forms prescribed by the Attorney General. A copy of the
contract or letter of agreement with any beneficiary and a copy of the
disclosure material required by ORS 128.824 shall be attached to the notice.
     (2) The fund raising notice shall be in
writing, under oath, and shall include a description of the fund raising event
or campaign, the projected starting and ending dates of the campaign, the bank
account number and location where the solicited funds will be deposited,
including the name of the organization or organizations that control the
account, and the address and telephone number of the headquarters for each
commercial solicitation campaign if different than the principal place of
business identified on the commercial fund raising firmÂ’s registration form as
well as the person in charge of each such location. The notice shall include a
provision affirming that the disclosure material described in subsection (1) of
this section has been affirmed by all beneficiaries. [1985 c.729 §8; 1991 c.532
§3]
     128.830 [1959 c.599 §7; 1967 c.359 §126; renumbered
731.708]
     128.831 [1985 c.729 §9; repealed by 1991 c.532 §26]
     128.835 [1971 c.589 §16; 1981 c.593 §14; repealed by
1985 c.729 §1; 1985 c.730 §15]
     128.836 [1985 c.729 §10; repealed by 1991 c.532 §26]
     128.840 [1959 c.599 §6; repealed by 1967 c.359 §704]
     128.841
Commercial fund raising firm financial reports; contents; filing. Within 90 days after a commercial fund
raising solicitation campaign has been completed, the commercial fund raising
firm shall file with the Attorney General a financial report for the campaign,
including gross receipts and all expenditures incurred in the solicitation
campaign. The report shall be completed on a form prescribed by the Attorney
General. The report shall be signed by an official of the commercial fund
raising firm and an official from each beneficiary and they shall certify,
under oath, that it is true to the best of their knowledge. A similar interim
financial report shall be filed one year after the start of the solicitation
campaign in the case of a solicitation campaign still in progress on that date.
[1985 c.729 §11; 1991 c.532 §7]
     128.845 [1971 c.589 §17; 1981 c.593 §15; repealed by
1985 c.729 §1; 1985 c.730 §15]
     128.846
Maintenance of records by commercial fund raising firm. (1) A commercial fund raising firm shall
maintain for a period of not less than three years from the completion of each
fund raising campaign, the following records:
     (a) The name and address of each
contributor and the date and amount of the contribution, if the preceding is
known to the commercial fund raising firm.
     (b) The name and address of each paid
solicitor and the dates and amount of compensation paid to each such solicitor.
     (c) Records of all fund raising expenses
incurred in the course of the fund raising campaign.
     (2) If the commercial fund raising firm
sells tickets to an event and represents that tickets will be donated for use
by another, the commercial fund raising firm shall also maintain, for the same
period as specified in subsection (1) of this section, the following records:
     (a) The name and address of those
contributors donating tickets and the number of tickets donated by each
contributor; and
     (b) The name and address of all
organizations receiving donated tickets, including the number of tickets
received by each organization.
     (3) All records described in this section
shall be available for inspection by the Attorney General upon request. [1985
c.729 §12; 1991 c.532 §8]
     128.848
Accountings required of commercial coventurer. A commercial coventurer shall keep a final
accounting for each commercial fund raising solicitation that it conducts for a
period of three years following the completion of the campaign. A commercial
coventurer shall provide such an accounting for each commercial fund raising
solicitation it conducts not later than 20 days after it is requested by the
Attorney General or any nonprofit beneficiary. [1991 c.532 §16]
     128.850 [1959 c.599 §8; 1967 c.359 §128; renumbered
731.716]
     128.851 [1985 c.729 §13; repealed by 1991 c.532 §26]
     128.855 [1975 c.388 §3; 1977 c.467 §1; repealed by
1985 c.729 §1; 1985 c.730 §15]
     128.856
Written consent by beneficiary to use of name. No person, other than volunteers or
employees under the direction and control of a nonprofit beneficiary, shall
represent that any part of the contributions received will be given or donated
to any named nonprofit beneficiary unless such organization has consented in
writing to the use of its name, prior to the solicitation. The written consent
shall be signed by an officer, director or trustee of the organization. [1985
c.729 §14; 1991 c.532 §9]
     128.860 [1959 c.599 §11; 1967 c.359 §129; renumbered
731.720]
     128.861
Written consent required for representations about use of tickets. A commercial fund raising firm shall not
represent, in the course of its solicitation activities, that tickets to events
will be donated for use by another unless it has complied with the following
requirements:
     (1) The commercial fund raising firm shall
obtain commitments, in writing, from beneficiaries stating that they will
accept donated tickets and specifying the number of tickets they are willing to
accept;
     (2) The commercial fund raising firm shall
solicit and accept no more contributions of donated tickets than the number of
ticket commitments it has received from beneficiaries; and
     (3) A ticket commitment alone, as
described in this section, shall not constitute written consent to use the
organization’s name as described in ORS 128.856. [1985 c.729 §15; 1991 c.532 §10]
     128.865 [1975 c.388 §4; 1981 c.897 §37; repealed by
1985 c.729 §1; 1985 c.730 §15]
     128.866
Injunction by Attorney General.
The Attorney General may obtain an injunction against solicitation of
contributions until:
     (1) The charitable organization,
beneficiary, professional fund raising firm or commercial fund raising firm has
complied with all registration and reporting requirements of the Charitable
Solicitations Act and ORS 128.610 to 128.750; or
     (2) Breaches of fiduciary duties have been
corrected and the officers and directors responsible for the breaches have been
removed. [1985 c.729 §17; 1991 c.532 §11; 2003 c.40 §3]
     128.870 [1959 c.599 §12; repealed by 1967 c.359 §704]
     128.871
Denial or revocation of registration. Subject to ORS chapter 183, the Attorney General may deny registration
or revoke any registration issued pursuant to ORS 128.802 or 128.821 for a
period not to exceed five years, if the Attorney General finds:
     (1) A material misrepresentation or false
statement to be in the application for registration or any other statement
filed with the Attorney General as provided in ORS 128.801 to 128.898 and
128.995.
     (2) Any material violation of ORS 128.801
to 128.898 or the rules adopted by the Attorney General pursuant to ORS 128.801
to 128.898 and 128.995. [1985 c.729 §23; 1991 c.532 §12]
     128.876
Rules. The Attorney General
shall make rules as to the filing and execution of reports and registration
statements required by ORS 128.610 to 128.650, 128.680, 128.710, 128.801 to
128.899, 128.995 and 646.608 and to the contents thereof. The Attorney General
may make additional rules and amend existing rules as necessary for the proper
administration of the Charitable Solicitations Act. [1985 c.729 §18; 2003 c.14 §46]
     128.880 [1959 c.599 §9; 1967 c.359 §130; renumbered
731.724]
     128.881
Deposit of fees and penalties; use. All fees and penalties received by the Department of Justice under ORS
128.802 and 128.821 shall be paid over to the State Treasurer monthly for
deposit in the Department of Justice Operating Account created under the
provisions of ORS 180.180. Amounts deposited pursuant to this section are
continuously appropriated to the Attorney General to pay the expenses of the
Department of Justice in administering the Charitable Trust and Corporation Act
as established in ORS 128.610 and the Charitable Solicitations Act. [1985 c.729
§20; 1991 c.532 §13]
     128.886
False or misleading representations prohibited. (1) No person shall make any false or
misleading representations in the course of any solicitation of contributions.
     (2) A representation may be any manifestation
of any assertion by words or conduct, including, but not limited to, a failure
to disclose a fact.
     (3) No person shall have a cause of action
under ORS 646.638 for an alleged violation of any provision of this section if
the alleged false or misleading representation is made by a volunteer of an
organization which is exempt from federal taxation under section 501(c) of the
Internal Revenue Code of 1954, as amended, and the alleged false or misleading
representation is not made at the direction of paid personnel. [1985 c.729 §16;
1989 c.913 §2; 1991 c.532 §14]
     128.890 [1959 c.599 §10; repealed by 1967 c.359 §704]
     128.891
Prohibited representations; written notice. (1) No solicitation for contributions shall in any way use the fact or
requirement of registration, or any filing of any report pursuant to the
Charitable Solicitations Act or ORS 128.610 to 128.750, with the intent to
cause or in a manner tending to cause any person to believe that such
solicitation, the manner in which it is conducted, its purposes, any use to
which the proceeds will be applied, or the person or organization conducting it
have been or will be in any way indorsed, sanctioned or approved by the
Attorney General or any other governmental agency or office.
     (2) Any written or oral statement made in
connection with a solicitation of contributions that the person or organization
conducting the solicitation is registered or has filed, will file or is
required to file any report with the Attorney General, or any statement of similar
import, shall be immediately followed by a statement of equal prominence that
such registration or report in no way constitutes or implies any indorsement,
sanction or approval of the solicitation, its purposes, the manner in which it
is conducted or the person or organization conducting it, by the Attorney
General or any other governmental agency or officer. [1985 c.729 §19]
     128.893
Use of in-state address. (1)
A person may not use an address in this state, including a return address, in a
solicitation, or in written material issued in connection with a solicitation,
made on behalf of a nonprofit organization unless:
     (a) The nonprofit organization actually
maintains and staffs an office in this state; or
     (b) The solicitation, or written material
issued in connection with a solicitation, discloses:
     (A) The address of the actual headquarters
of the nonprofit organization; and
     (B) That the address in this state is a
mail drop or that the address in this state is solely the address of a mail
handling facility.
     (2) If the disclosures described in
subsection (1) of this section are required in a written solicitation, or in
written material issued in connection with a solicitation, the disclosures
shall be printed immediately proximate to the address in this state and in a
location and typeface no less prominent than the address in this state. [2003
c.40 §2]
     128.896 [1985 c.730 §13; 1991 c.734 §8; renumbered
128.899 in 1991]
     128.898
Short title. ORS 128.801 to
128.898 and 128.995 may be cited as the Charitable Solicitations Act. [1985
c.729 §2]
CIVIL
PENALTIES
     128.899
Civil penalties for violation of ORS 128.610 to 128.750. (1) The responsible officers or trustees of
a corporation or trust which fails to register or file a report required by ORS
128.610 to 128.750 or the Charitable Trust and Corporation Act may be assessed
a civil penalty not to exceed $1,000 by the Attorney General.
     (2) Civil penalties under this section
shall be imposed as provided in ORS 183.745.
     (3) All penalties recovered under this
section shall be credited to the Department of Justice Operating Account as
described in ORS 128.670 (9). [Formerly 128.896]
CRIMINAL
PENALTIES
     128.990 [1959 c.639 §3; subsections (2), (3), (4)
enacted as 1971 c.589 §18; 1975 c.388 §7; 1981 c.593 §16; 1985 c.729 §21; 1987
c.813 §13; renumbered 97.992 in 2001]
     128.991 [1987 c.813 §9; 1993 c.467 §4; 1995 c.325 §3;
2001 c.796 §19; renumbered 97.994 in 2001]
     128.992
Penalties for ORS 128.610 to 128.750. Filing or assisting in preparing or filing a statement or report
required by the Charitable Trust and Corporation Act, ORS 128.610 to 128.750,
that is false or fraudulent is a Class A misdemeanor. [1985 c.730 §3]
     128.995
Penalties for ORS 128.801 to 128.898. Violation of ORS 128.802, 128.821 or filing or assisting in preparing
or filing a statement or report required by ORS 128.801 to 128.898 that is
false or fraudulent is a Class A misdemeanor. [1985 c.729 §24; 1991 c.532 §23]
_______________
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