2005 Oregon Code - Chapter 714 :: Chapter 714 - Branch Banking - Automated Teller Machines
Chapter 714 — Branch Banking; Automated Teller Machines
2005 EDITION
BRANCH BANKING; AUTOMATED TELLER MACHINES
FINANCIAL INSTITUTIONS
BRANCH BANKING
(Branches of Banking Institutions)
714.015Â Â Â Â Branches not in compliance with ORS 714.025 to 714.079 prohibited
714.025Â Â Â Â Application required to establish branches in Oregon or outside of Oregon; fee; rules
714.035Â Â Â Â Mobile banking facilities; fee
714.045Â Â Â Â Application to establish foreign branches; furnishing information; examination; rules
714.049Â Â Â Â Investigating applications; soliciting comments
714.054Â Â Â Â Approval or disapproval of application; when application deemed approved
714.059Â Â Â Â Certificate authorizing branch to conduct business
714.064Â Â Â Â Time to commence business
714.069Â Â Â Â Activities and powers at branches outside this state
714.075Â Â Â Â Reports of deposits held at branches
714.079Â Â Â Â Closure and relocation of branches
(Oregon Branches of Out-of-State Banks and Extranational Institutions)
714.095Â Â Â Â Establishment of branches by out-of-state banks in this state; powers and activities at branches
714.105Â Â Â Â Establishment of branches by extranational institutions in this state; powers and activities at branches
AUTOMATED TELLER MACHINES; NIGHT DEPOSIT FACILITIES
714.205Â Â Â Â Disclosure of fees for ATM transaction; method; rules
714.210Â Â Â Â Use of ATMs; verification; application of branch banking law
714.270Â Â Â Â Prohibitions on use of ATM for banking information
714.280Â Â Â Â Legislative intent of ATM and night deposit facility law
714.285Â Â Â Â Adoption of procedures for evaluating safety of ATM or night deposit facilities
714.290Â Â Â Â Deadlines for compliance with ORS 714.295
714.295Â Â Â Â Lighting requirements for ATMs and night deposit facilities
714.300Â Â Â Â Issuance of safety information to customers of ATMs and night deposit facilities
714.305Â Â Â Â Exempted ATMs and night deposit facilities
714.310Â Â Â Â Preemption of local regulation
714.315Â Â Â Â Creation of rebuttable presumption
PENALTIES
714.992Â Â Â Â Criminal penalty
714.995Â Â Â Â Civil penalty
     714.010 [Repealed by 1973 c.797 §428]
BRANCH BANKING
(Branches of Banking Institutions)
     714.015
Branches not in compliance with ORS 714.025 to 714.079 prohibited. Banking
institutions shall not establish or maintain branches except as expressly
authorized in ORS 714.025 to 714.079 and 714.995. [1997 c.631 §312]
     714.020
[Repealed by 1973 c.797 §428]
     714.025
Application required to establish branches in Oregon or outside of Oregon; fee;
rules. (1) A banking institution may establish and operate one or more
branches within or outside the State of Oregon. The board of directors of a
banking institution desiring to establish a branch shall file an application
with the Director of the Department of Consumer and Business Services. The
application shall be in the form the banking institution is required to file
with the Federal Reserve System or the Federal Deposit Insurance Corporation to
establish a branch at such location, as the case may be, or in such other form
as the director may require. The application shall be accompanied by a $500
fee, which fee shall only apply to the establishment of new branches and not to
the acquisition or relocation of existing branches. The director shall promptly
advise the banking institution if the application is incomplete or if the
director requires additional information.
     (2) Mobile banking facilities described in ORS 714.035 and temporary branches are considered branches for purposes of this section. A temporary branch is a branch that operates for a period not to exceed 60 days, which period shall not be extended. The application fee for a temporary branch shall be $100. The director may establish rules regarding temporary branches.
     (3) Branches to be located in other countries or to be located in dependencies or insular possessions of the United States are subject to the requirements of this section and ORS 714.045. [1997 c.631 §313]
     714.030
[Amended by 1973 c.797 §321; 1975 c.725 §17; 1993 c.229 §15; repealed by 1997
c.631 §567]
     714.035
Mobile banking facilities; fee. A banking institution may, in accordance
with ORS 714.025, establish one or more mobile facilities to engage in the
banking business or to transact trust business. Mobile banking facilities may
operate within the State of Oregon and in other states. An application under
ORS 714.025 shall not be required for mobile facilities that exercise
permissible powers or engage in permissible activities that do not constitute
engaging in the banking business or transacting trust business. The application
fee for each facility is $500. [1997 c.631 §314]
     714.040
[Amended by 1971 c.68 §4; 1973 c.797 §322; 1975 c.544 §40a; 1977 c.135 §26;
1993 c.255 §2; repealed by 1997 c.631 §567]
     714.045
Application to establish foreign branches; furnishing information; examination;
rules. (1) A banking institution may establish branches in foreign
countries or dependencies or insular possessions of the United States in
accordance with ORS 714.025 if it possesses stockholderÂ’s equity of at least $1
million.
     (2) A banking institution operating such branches shall furnish information concerning the condition of the branches to the Director of the Department of Consumer and Business Services upon demand.
     (3) The director may order special examinations of such branches.
     (4) The director may promulgate rules regarding such branches pursuant to ORS 183.310, 183.315, 183.330, 183.335, 183.341 and 183.410. [1997 c.631 §315]
     714.049
Investigating applications; soliciting comments. (1) The Director of the
Department of Consumer and Business Services shall investigate each application
to establish a branch. With respect to applications covering branches to be
located outside the State of Oregon, the director shall promptly provide the
local bank supervisory agency or regulator with a copy of the application and
an opportunity to comment on the application. The director shall not be bound
by any such comments.
     (2) In determining whether to approve or disapprove an application to establish a branch, the director shall consider such factors as the director deems appropriate, including the likely impact of the branch on the safety and soundness of the banking institution, the adequacy of the capital of the banking institution, the institution’s record of complying with applicable law, and the results of supervisory examinations of the banking institution.
     (3) The director’s decision to disapprove an application is subject to appeal in the manner provided in ORS 707.080 for the organization of an institution. [1997 c.631 §316]
     714.050
[Amended by 1973 c.797 §323; repealed by 1979 c.826 §1]
     714.054
Approval or disapproval of application; when application deemed approved.
With respect to applications to establish branches in the State of Oregon or in
a state outside of the State of Oregon, the Director of the Department of
Consumer and Business Services may approve or disapprove the application,
provided however, that failure to disapprove an application within 30 days
after receipt of a complete application shall be deemed an approval of the
application. With respect to applications by banking institutions to establish
branches in foreign countries or dependencies or insular possessions of the
United States, the director may approve or disapprove an application, provided
however, that failure to disapprove an application within 90 days after receipt
of a complete application shall be deemed an approval of the application. [1997
c.631 §317]
     714.055
[1973 c.797 §324; repealed by 1979 c.826 §1]
     714.059
Certificate authorizing branch to conduct business. Upon the request of a
banking institution, the Director of the Department of Consumer and Business
Services shall issue and deliver a certificate authorizing each approved branch
to conduct business. [1997 c.631 §318]
     714.060
[Amended by 1973 c.797 §325; 1985 c.12 §7; 1993 c.229 §16; 1993 c.255 §3;
repealed by 1997 c.631 §567]
     714.064
Time to commence business. A branch shall commence business within one year
after the application for the branch has been approved or deemed approved by
the Director of the Department of Consumer and Business Services. The director
may extend the period within which the branch may open up to one additional
year. If a branch fails to commence business within the year or any extension
of time granted by the director, the approval of the application shall be
deemed withdrawn and the branch may not open or operate. [1997 c.631 §319]
     714.065
[1973 c.797 §326; repealed by 1975 c.193 §13]
     714.069
Activities and powers at branches outside this state. (1) A banking
institution may exercise the same powers and engage in the same activities at a
branch or branches located in states outside this state as are permitted the
banking institution within this state.
     (2) A banking institution may exercise the same powers and engage in the same activities at a branch or branches located in foreign countries and dependencies or insular possessions of the United States as are permitted the banking institution within this state and in addition may exercise such additional powers as are permitted to such branches under 12 C.F.R. 211.3(b), 12 C.F.R. 347.3(c) and other applicable federal law. This subsection shall not be construed to permit a banking institution that opens, occupies or maintains one or more branches in a foreign country or dependency or insular possession of the United States to use the branch or branches or engage in any activities within this state that are not permitted to the banking institution under the laws of this state. [1997 c.631 §320]
     714.070
[Repealed by 1973 c.797 §428]
     714.075
Reports of deposits held at branches. Upon the call for a report of
condition by the Director of the Department of Consumer and Business Services:
     (1) Each Oregon commercial bank and Oregon savings bank shall report to the director the total deposits held at each of its branches; and
     (2) Each non-Oregon institution and each federal bank that in either case holds deposits of the State of Oregon or any political subdivision thereof, or that underwrites bonds or other debt instruments issued by the state or any political subdivision thereof, shall report to the director the total deposits held at each of its branches located in the State of Oregon. [1997 c.631 §321]
     714.079
Closure and relocation of branches. A banking institution may close and
relocate branches provided the banking institution provides the Director of the
Department of Consumer and Business Services with a copy of any notice required
under 12 U.S.C. 1831r-1(a), or comparable federal law, at the time and in the
form required by such law or laws. [1997 c.631 §322]
     714.080
[Amended by 1973 c.797 §327; repealed by 1997 c.631 §567]
     714.090
[Amended by 1971 c.68 §5; repealed by 1973 c.797 §428]
(Oregon Branches of Out-of-State Banks and Extranational Institutions)
     714.095
Establishment of branches by out-of-state banks in this state; powers and
activities at branches. (1) An out-of-state bank may occupy and maintain
its initial branches in this state if and only if the branches are acquired by
the out-of-state bank in accordance with ORS chapters 711 and 713.
     (2) An out-of-state bank that is properly occupying and maintaining one or more branches in Oregon in accordance with ORS chapters 711 and 713 may thereafter open, occupy and maintain one or more additional branches in this state. The out-of-state bank shall not be required to file an application under ORS 714.025 to establish such additional branches.
     (3) An out-of-state bank that acquires branches in accordance with ORS chapters 711 and 713 shall be entitled to exercise powers and engage in activities at its branches in this state as provided in ORS 713.010 and applicable federal law. [1997 c.631 §324]
     714.100
[Amended by 1963 c.195 §11; 1969 c.360 §1; 1973 c.797 §328; repealed by 1993
c.255 §4]
     714.105
Establishment of branches by extranational institutions in this state; powers
and activities at branches. (1) An extranational banking institution may
occupy and maintain branches in this state as permitted by ORS chapter 713 and
applicable federal law.
     (2) An extranational banking institution may exercise powers and engage in activities at branches located in this state as permitted by ORS chapter 713 and applicable federal law. [1997 c.631 §325]
     714.110
[Amended by 1973 c.797 §329; repealed by 1997 c.631 §567]
     714.120
[Repealed by 1963 c.402 §11]
     714.130
[Amended by 1973 c.797 §330; repealed by 1997 c.631 §567]
     714.133
[1993 c.229 §18; repealed by 1997 c.631 §567]
     714.135
[1993 c.229 §19; repealed by 1997 c.631 §567]
     714.140
[Amended by 1973 c.797 §331; repealed by 1997 c.631 §567]
     714.150
[Amended by 1973 c.797 §332; repealed by 1997 c.631 §567]
     714.160
[Amended by 1973 c.797 §333; repealed by 1997 c.631 §567]
     714.170
[Amended by 1973 c.797 §334; repealed by 1997 c.631 §567]
     714.180
[1991 c.31 §2; repealed by 1997 c.631 §567]
AUTOMATED TELLER MACHINES; NIGHT DEPOSIT FACILITIES
     714.200
[1975 c.193 §11; 1985 c.762 §45; 1993 c.381 §1; repealed by 1997 c.631 §567]
     714.205
Disclosure of fees for ATM transaction; method; rules. (1) If the operator
of an ATM charges a fee to any person to use the ATM, the operator shall
disclose to persons using the ATM that a fee will be imposed for the ATM
transaction.
     (2) Subject to subsection (3) of this section, the disclosure required under subsection (1) of this section shall be made electronically during the ATM transaction and shall allow the person who will be charged a fee to cancel the ATM transaction without incurring a fee. The disclosure shall also be printed on the ATM transaction receipt.
     (3) The Director of the Department of Consumer and Business Services may adopt rules conforming the disclosure requirements of subsection (2) of this section to disclosure requirements contained in:
     (a) Any law enacted by the Congress of the United States; or
     (b) Any regulation adopted by any federal agency having regulatory authority over ATMs. [1997 c.631 §310b]
     714.210
Use of ATMs; verification; application of branch banking law. (1) A banking
institution, through its own facilities or those of an entity described in ORS
708A.160, may make available for use by its customers and others one or more
ATMs. Every transaction initiated through an ATM shall be subject to
verification by the banking institution either by direct wire transmission or
otherwise.
     (2) ORS 714.025 does not apply to the establishment and maintenance of ATMs. [1975 c.193 §3; 1993 c.381 §2; 1997 c.631 §309]
     714.220
[1975 c.193 §4; 1993 c.381 §3; repealed by 1997 c.631 §567]
     714.230
[1975 c.193 §5; repealed by 1989 c.245 §1]
     714.240
[1975 c.193 §6; 1979 c.810 §1; 1989 c.245 §2; 1993 c.381 §4; repealed by 1997
c.631 §567]
     714.250
[1975 c.193 §7; 1979 c.810 §2; 1993 c.381 §5; repealed by 1997 c.631 §567]
     714.260
[1975 c.193 §8; 1993 c.381 §6; repealed by 1997 c.631 §567]
     714.270
Prohibitions on use of ATM for banking information. No person shall use or
attempt to use an ATM facility for the purpose of obtaining any information
concerning an account or line of credit other than the personÂ’s own account or
line of credit without the prior approval of an authorized signer on the
account or line of credit. No person having received prior approval of the
customer shall utilize such authority to obtain through the use of the ATM any
information not necessary to the transaction which the customer seeks to
accomplish through its use. [1975 c.193 §9; 1993 c.381 §7; 1997 c.631 §310]
     714.280
Legislative intent of ATM and night deposit facility law. (1) It is the
intent of the Legislative Assembly in enacting ORS 714.280 to 714.315 to
enhance the safety of consumers using ATMs and night deposit facilities in
Oregon without discouraging the siting of ATMs and night deposit facilities in
locations convenient to consumersÂ’ homes and workplaces. Since decisions
concerning safety at ATMs and night deposit facilities are inherently
subjective, the Legislative Assembly intends to establish as the standard of
care applicable to operators of ATMs and night deposit facilities in connection
with user safety, the compliance with the objective standards and information
requirements of ORS 714.280 to 714.315. The Legislative Assembly further
recognizes the need for uniformity as to the establishment of safety standards
for ATMs and night deposit facilities and intends with ORS 714.280 to 714.315
to supersede and preempt any rule, regulation, code or ordinance of any city, county,
municipality or local agency regarding customer safety at ATMs and night
deposit facilities in this state.
     (2) It is not the intent of the Legislative Assembly in enacting ORS 714.280 to 714.315 to impose a duty to relocate or modify ATMs or night deposit facilities upon the occurrence of any particular events or circumstances, but rather to establish a means for the evaluation of all ATMs and night deposit facilities as provided in ORS 714.210 to 714.992. [1993 c.381 §§9,11]
     714.285
Adoption of procedures for evaluating safety of ATM or night deposit
facilities. Before installing any ATM or night deposit facility, the
operator shall adopt procedures for evaluating the safety of the ATM or night
deposit facility. For ATMs and night deposit facilities installed on or before
July 1, 1994, operators shall adopt procedures not later than July 1, 1994. The
procedures shall include a consideration of the following:
     (1) The extent to which the lighting for the ATM or night deposit facility complies or will comply with the standards required by ORS 714.290 and 714.295.
     (2) The presence of landscaping, vegetation or other obstructions in the area of the ATM or night deposit facility, the access area and the defined parking area.
     (3) The incidence of crimes of violence in the immediate neighborhood of the ATM or night deposit facility, as reflected in the records of the local law enforcement agency and of which the operator has actual knowledge. [1993 c.381 §10]
     714.290
Deadlines for compliance with ORS 714.295. (1) Each operator of an ATM or
night deposit facility installed after July 1, 1994, shall comply with ORS
714.295. Compliance with ORS 714.295 by operators of ATMs and night deposit
facilities existing on or before July 1, 1994, shall be optional until July 1,
1996, and mandatory thereafter. This section shall apply to an operator of an
ATM or night deposit facility only to the extent that the operator controls the
access area or defined parking area to be lighted.
     (2) If an access area or a defined parking area is not controlled by the operator of an ATM or night deposit facility, and if the person who leased the ATM or night deposit facility site to the operator controls the access area or defined parking area, the person who controls the access area or defined parking area shall comply with ORS 714.295 regarding any ATM or night deposit facility installed after July 1, 1994. Regarding any ATM or night deposit facility installed on or before July 1, 1994, the person shall comply with ORS 714.295 no later than July 1, 1996. [1993 c.381 §12]
     714.295
Lighting requirements for ATMs and night deposit facilities. The operator,
owner or other person responsible for the ATM or night deposit facility shall
provide lighting during hours of darkness for an open and operating ATM or
night deposit facility and any defined parking area, access area and the
exterior of an enclosed ATM or night deposit facility installation according to
the following standards:
     (1) There shall be a minimum of 10 candlefoot power at the face of the ATM or night deposit facility and extending in an unobstructed direction outward five feet.
     (2) There shall be a minimum of two candlefoot power within 50 feet in all unobstructed directions from the face of the ATM or night deposit facility. In the event the ATM or night deposit facility is located within 10 feet of the corner of the building and the ATM or night deposit facility is generally accessible from the adjacent side, there shall be minimum of two candlefoot power along the first 40 unobstructed feet of the adjacent side of the building.
     (3) There shall be a minimum of two candlefoot power in that portion of the defined parking area within 60 feet of the ATM or night deposit facility. [1993 c.381 §13]
     714.300
Issuance of safety information to customers of ATMs and night deposit
facilities. The issuers of access devices shall furnish customers receiving
the devices with notices of basic safety precautions which customers should
employ while using an ATM or night deposit facility. This information shall be
furnished by personally delivering or by mailing the information to each
customer whose mailing address as to the account to which the access device
relates is in this state. This information shall be furnished with respect to
access devices issued after July 1, 1994, at or before the time the customer is
furnished with his or her access device. With respect to a customer to whom an
access device has been issued on or before July 1, 1994, the information shall
be delivered or mailed to the customer on or before December 31, 1994. Only one
notice need be furnished per household, and if access devices are furnished to
more than one customer for a single account or set of accounts or on the basis
of a single application or other request for the access devices, only a single
notice need be furnished in satisfaction of the notification responsibilities
as to all those customers. The information may be included with other
disclosures related to the access device furnished to the customer, such as
with any initial or periodic disclosure statement furnished pursuant to the
Electronic Fund Transfer Act (15 U.S.C. 1501 et seq.). [1993 c.381 §14]
     714.305
Exempted ATMs and night deposit facilities. The requirements of ORS 714.280
(2) and 714.285 to 714.295 shall not apply to any ATM or night deposit facility
that is:
     (1) Located inside of a building, unless it is a freestanding installation that exists for the sole purpose of providing an enclosure for the ATM or night deposit facility.
     (2) Located inside of a building, except to the extent that a transaction can be conducted from outside the building.
     (3) Located in any area, including any access area, building, enclosed space or parking area that is not controlled by the operator. [1993 c.381 §15]
     714.310
Preemption of local regulation. ORS 714.210 to 714.315 supersede and
preempts all rules, regulations, codes, statutes or ordinances of all cities,
counties, municipalities and local agencies regarding customer safety at ATMs
or night deposit facilities located in Oregon. [1993 c.381 §16]
     714.315
Creation of rebuttable presumption. Compliance with ORS 714.280 to 714.300
shall create a rebuttable presumption that the operator of the ATM or night
deposit facility in question has provided adequate measures for the safety of
users of the ATM or night deposit facility. [1993 c.381 §17]
PENALTIES
     714.990
[Repealed by 1973 c.797 §428]
     714.992
Criminal penalty. Violation knowingly of ORS 714.270 is a Class C felony.
[1975 c.193 §10]
     714.995
Civil penalty. Each day a banking institution operates a branch that has
not been approved or deemed approved by the Director of the Department of
Consumer and Business Services, the banking institution is subject to a penalty
of up to $1,000. The penalty shall be assessed and collected as prescribed in
ORS 706.570 (2). [1997 c.631 §323]
_______________
Disclaimer: These codes may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.