71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 943
Senate Bill 305
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Consumer and Business Services)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Abolishes Banking Education Assessment Account in Consumer and
Business Services Fund. Expands sources of revenue for separate
subaccount in Consumer and Business Services Fund. Expands
regulatory purposes for which amounts in subaccount may be
expended. Requires Director of Department of Consumer and
Business Services to set certain fees by rule under Bank Act,
credit union law and savings association law. Specifies operative
date.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to the Department of Consumer and Business Services;
creating new provisions; amending ORS 697.842, 705.145,
705.165, 707.070, 708A.275, 709.005, 711.130, 711.155, 711.170,
713.150, 713.240, 713.300, 714.025, 714.035, 716.028, 722.602,
723.012 and 723.032; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 705.145 is amended to read:
705.145. (1) There is created in the State Treasury a fund to
be known as the Consumer and Business Services Fund, separate
from the General Fund. All moneys collected or received by the
Department of Consumer and Business Services, except moneys
collected pursuant to ORS 735.612 and those moneys required to be
paid into the Workers' Benefit Fund, shall be paid into the State
Treasury and credited to the Consumer and Business Services Fund.
Moneys in the fund may be invested in the same manner as other
state moneys and any interest earned shall be credited to the
fund.
(2) The department shall keep a record of all moneys deposited
in the Consumer and Business Services Fund which shall indicate,
by separate account, the source from which the moneys are
derived, the interest earned and the activity or program against
which any withdrawal is charged.
(3) Should moneys credited to any one account be withdrawn,
transferred or otherwise used for purposes other than the program
or activity for which the account is established, interest shall
accrue on the amount withdrawn from the date of withdrawal and
until such funds are restored.
(4) Moneys in the fund shall provide and are appropriated for
the administrative expenses of the department and for its
expenses in carrying out its functions and duties under any
provision of law.
(5) { + Except as provided in ORS 705.165, + } it is the
intention of the Legislative Assembly that the performance of the
various duties and functions of the department in connection with
each of its programs shall be financed by the fees, assessments
and charges established and collected in connection with those
programs.
(6) There is created by transfer from the Consumer and Business
Services Fund a revolving administrative account in the amount of
$100,000. The revolving account shall be disbursed by checks or
orders issued by the director or the Workers' Compensation Board
and drawn upon the State Treasury, to carry on the duties and
functions of the department and the board. All checks or orders
paid from the revolving account shall be reimbursed by a warrant
drawn in favor of the department charged against the Consumer and
Business Services Fund and recorded in the appropriate subsidiary
record.
(7) For the purposes of ORS chapter 656, the revolving account
created pursuant to subsection (6) of this section may also be
used to:
(a) Pay compensation benefits; and
(b) Refund to employers amounts paid to the Consumer and
Business Services Fund in excess of the amounts required by ORS
chapter 656.
{ - (8) There is established in the Consumer and Business
Services Fund the Banking Education Assessment Account. All
moneys in the account are appropriated continuously for use by
the Conference of State Bank Supervisors Education Foundation to
provide quality training and education for state bank
examiners. - }
{ - (9) - } { + (8) + } There is established in the
Consumer and Business Services Fund the Manufactured Structures
and Parks Education Account. Moneys that are specifically
designated as training fees and that are collected under ORS
446.176 and 455.220 (1) shall be deposited in the account. All
moneys in the account are appropriated continuously for use by
the Department of Consumer and Business Services to provide
quality training and education for persons employed in producing,
selling, installing, delivering or inspecting manufactured
structures or buildings, or inspecting parks or camps.
Notwithstanding the applicable provisions of ORS chapter 279, the
department may, with the advice of the Manufactured Structures
and Parks Advisory Board established under ORS 446.280, contract
with a public or private person to develop or provide training
and education programs.
SECTION 2. ORS 705.165 is amended to read:
705.165. (1) Except as provided in ORS 59.255, 59.890, { +
59.995, + } 59.996 { + , + } { - and - } 645.950 { + and
697.832 + }, the net amount accruing to the Department of
Consumer and Business Services from all fees, charges, interest,
fines, penalties and miscellaneous revenues from all sources
under ORS { - chapter - } { + chapters 59, + }645 { + , 706
to 716, 722, 723, 725 and 726 + } and ORS { - 59.005 to 59.451,
59.660 to 59.830, 59.840 to 59.965, 59.991, - } { + 646.382 to
646.396, + } 650.005 to 650.085 { + , 697.005 to 697.095, 697.602
to 697.842, + } { - and - } 705.350 { + and 717.200 to
717.320 + }shall, after deduction of refunds, be paid over to
the State Treasurer and deposited in a separate subaccount in the
Consumer and Business Services Fund created under ORS 705.145 at
least monthly and is appropriated only for the expenses of the
department in carrying out its functions and duties under ORS
{ - chapter - } { + chapters 59, + }645 { + , 706 to 716,
722, 723, 725 and 726 + } and ORS { - 59.005 to 59.451, 59.660
to 59.830, 59.840 to 59.965, 59.991, 59.995, - } { + 646.382 to
646.396, + } 650.005 to 650.085 { + , 697.005 to 697.095, 697.602
to 697.842, + } { - and - } 705.350 { + and 717.200 to
717.320 + }.
(2) Any amount deposited in the separate subaccount in the
Consumer and Business Services Fund as provided in subsection (1)
of this section that at the end of each quarter is determined by
the Director of the Department of Consumer and Business Services
to be in excess of the amount needed to administer ORS
{ - chapter - } { + chapters 59, + }645 { + , 706 to 716,
722, 723, 725 and 726 + } and ORS
{ - 59.005 to 59.451, 59.660 to 59.830, 59.840 to 59.965,
59.991, 59.995 - } { + 646.382 to 646.396, + } { - and - }
650.005 to 650.085 { + , 697.005 to 697.095, 697.602 to 697.842
and 717.200 to 717.320 + } shall be transferred to the General
Fund and shall become available for general governmental
expenses.
SECTION 3. ORS 697.842 is amended to read:
697.842. All moneys received by the Director of the Department
of Consumer and Business Services or the department under ORS
697.005 to 697.095 or 697.602 to 697.842, excepting any penalties
received under ORS 697.832, shall be paid into the State Treasury
{ - , - } { + and + } deposited in the Consumer and Business
Services Fund created by ORS 705.145 { - and used exclusively
for the purposes of ORS 697.005 to 697.095 and 697.602 to
697.842 - } .
SECTION 4. ORS 707.070 is amended to read:
707.070. Any number of persons, not less than five, desiring to
organize a banking institution shall, as prospective
incorporators, first submit an application to the Director of the
Department of Consumer and Business Services for a permit to
organize a banking institution. The applicants shall pay to the
director at the time of their application a
{ + nonrefundable + } fee { - of $2,500, no part of which
shall be refunded - } { + in an amount established by the
director by rule + }. The application shall be signed by one of
the applicants and shall include the following information:
(1) The proposed location of the initial principal place of
business.
(2) The class or classes of stock proposed to be issued, the
proposed offering price per share and the aggregate dollar amount
of the proposed initial paid-in capital.
(3) The corporate name.
(4) The names of the proposed senior officers and the initial
directors, at least three of whom shall also be among the
incorporators.
(5) The residence addresses and occupations of the proposed
incorporators and directors.
(6) The proposed articles of incorporation meeting the
requirements of ORS 707.110.
(7) The number of shares of voting stock proposed to be
subscribed for by the incorporators and each of the proposed
directors and senior officers, and the names of any other persons
who are expected to subscribe for, to own or to control more than
10 percent of the voting stock and the amount of stock for which
each proposes to subscribe.
(8) Evidence satisfactory to the director of the character,
financial responsibility and ability of the incorporators,
directors and senior officers.
(9) Evidence satisfactory to the director, in the form of a
business plan and such additional information as the director may
require, demonstrating that the proposed banking institution is
likely to be financially successful.
(10) The proposed operating policies of the banking
institution.
(11) A statement as to whether the banking institution is to be
a trust company, an Oregon commercial bank or an Oregon stock
savings bank, and, if the proposed Oregon commercial bank or
Oregon stock savings bank is applying for trust powers, a
statement to that effect.
(12) Any other information that the director may require.
SECTION 5. ORS 708A.275 is amended to read:
708A.275. (1) A financial institution shall file a notice with
the Director of the Department of Consumer and Business Services
within 30 days of establishing a loan production office in this
state. The notice shall include:
(a) The name of the financial institution and address of the
main office;
(b) The name and address of the loan production office; and
(c) The name and address of the officer of the financial
institution responsible for loan production office activities.
(2) A notice shall be filed for each loan production office in
this state.
(3) Each notice filed under subsection (1) of this section
shall be:
(a) Accompanied by a nonrefundable fee { - of $100 - } { +
in an amount established by the director by rule + }.
(b) Amended when there is a material change in the information
provided pursuant to subsection (1) of this section. No fee is
required for amendments.
(4) A financial institution shall notify the director of the
closure of a loan production office in this state, the date of
closure and the disposition of any records previously maintained
at the loan production office subject to closure. No fee is
required for a notice of closure.
SECTION 6. ORS 709.005 is amended to read:
709.005. (1) Except as provided in ORS 709.030 (4) or in
subsection (4) of this section, no company shall transact any
trust business in this state until the company has obtained a
certificate of authority from the Director of the Department of
Consumer and Business Services under this section, authorizing
the company to transact trust business in this state.
(2) To procure a certificate of authority to transact trust
business in this state, a company to whom this section applies
shall file a written application with the director, which shall
contain or be accompanied by:
(a) The name of the company.
(b) The state or country under the laws of which the company is
organized.
(c) The date of incorporation or other organization of the
company.
(d) The period of duration of the company, if the duration is
not perpetual.
(e) A mailing address to which the director may send notices.
(f) The address of the principal office of the company in the
state or country under the laws of which it is organized.
(g) The street address of the proposed registered office of the
company in this state and the name of its proposed registered
agent, who shall be amenable to service of process at that
address.
(h) A brief statement setting forth any background and
experience of the company in conducting a trust business in the
state or country in which it is organized, and its qualifications
to transact trust business in this state.
(i) The names and addresses of the chief executive officer and
the secretary of the company.
(j) Any additional information that the director may by rule
require.
(k) The verified signature of the chief executive officer of
the company, certifying that all information contained in the
application is true, accurate and complete.
(L) A certificate of existence, a certificate of good standing,
a status certificate or a document of similar import, current
within 60 days of making application under this section and duly
authenticated by the official with custody of the corporate or
other records in the state, province or country under the laws of
which the company is organized.
(m) A certificate of authorization for a foreign corporation,
or a copy of the application for authority to transact business
in this state as a foreign corporation as filed with the
Secretary of State, current within 60 days of making application
under this section and duly authenticated by the Secretary of
State evidencing the authorization of the company, or application
for authorization, to transact business as a foreign corporation
under ORS chapter 60.
(n) An application fee { - of $2,500 - } { + in an amount
established by the director by rule + }, provided that no
application fee shall be charged under this paragraph:
(A) If the applicant is concurrently applying for a charter
under ORS chapter 707; or
(B) If the director reduces or waives the application fee.
(3) If the director finds that the application conforms to the
requirements of subsection (2) of this section and that the
applicant is qualified by experience to transact trust business
in this state, the director shall direct the applicant to make
the security deposit required under ORS 709.030, and when the
deposit is made, the director shall issue and send to the company
a certificate of authority to transact business.
(4) The requirement to procure a certificate of authority under
this section shall not apply to the extent preempted by federal
law, or to any bank lawfully transacting trust business in this
state on October 4, 1997.
SECTION 7. ORS 711.130 is amended to read:
711.130. (1) For each Oregon stock bank that is a party to a
merger or that proposes to have its stock acquired through a
share exchange, the plan of merger or plan of share exchange
shall be approved by a majority of the entire board of directors
of each such Oregon stock bank. If an insured stock institution,
other than an Oregon stock bank, is a party to a merger with an
Oregon stock bank, the plan of merger shall be approved by such
merging insured stock institution's board of directors to the
extent required under the laws applicable to such insured stock
institution.
(2) A plan of merger shall contain at least:
(a) The name of each party to the merger and the name of the
resulting insured stock institution;
(b) The terms and conditions of the proposed merger;
(c) The manner and basis of converting the shares of each
merging insured stock institution into shares, obligations or
other securities of the resulting insured stock institution or a
holding company of the resulting insured stock institution or, in
whole or part, into cash or other property;
(d) A statement of any changes in the articles of incorporation
of the resulting insured stock institution to be put into effect
by the plan of merger; and
(e) Any other provisions with respect to the proposed merger
that the Director of the Department of Consumer and Business
Services determines to be necessary.
(3) A plan of share exchange shall contain at least:
(a) The name of the Oregon stock bank whose shares will be
acquired and the name of the acquiring company;
(b) The terms and conditions of the proposed share exchange;
(c) The manner and basis of the exchange of shares of the
Oregon stock bank for shares, obligations or other securities of
the acquiring company or of any other company or for cash or for
other property in full or in part;
(d) A statement of any changes in the articles of incorporation
of the acquired Oregon stock bank to be put into effect by the
plan of share exchange; and
(e) Any other provision with respect to the proposed share
exchange that the director determines to be necessary.
(4) After approval by the board of directors, the plan of
merger or plan of share exchange shall be submitted to the
director for approval, with a nonrefundable application fee
{ - of $3,000 - } { + in an amount established by the director
by rule + }. Certified copies of the authorizing resolutions of
each board of directors, if any such resolutions are required
under applicable law, showing approval of the plan of merger or
plan of share exchange in accordance with subsection (1) of this
section shall also be submitted. For each Oregon stock bank that
is a party to a merger or is to be acquired through a share
exchange, the certified copies of the board resolutions shall
also show that the resolutions were approved by a majority of the
entire board.
SECTION 8. ORS 711.155 is amended to read:
711.155. (1) For each Oregon nonstock bank that is a party to a
merger, the plan of merger shall be approved by a majority of the
entire board of directors of each such Oregon nonstock bank. If
an insured nonstock institution, other than an Oregon nonstock
bank, is a party to a merger with an Oregon nonstock bank, the
plan of merger shall be approved by such insured nonstock
institution's board of directors to the extent required under the
laws applicable to such insured nonstock institution.
(2) The plan of merger shall contain:
(a) The name of each party to the merger and the name of the
resulting insured nonstock institution;
(b) The terms and conditions of the proposed merger;
(c) The manner and basis of converting the obligations or
securities of each merging insured nonstock institution into
obligations or other securities of the resulting insured nonstock
institution or, in whole or part, into cash or other property;
(d) A statement of any changes in the articles of incorporation
of the resulting insured nonstock institution to be put into
effect by the plan of merger; and
(e) Any other provisions with respect to the proposed merger
that the Director of the Department of Consumer and Business
Services determines to be necessary.
(3) After approval by the board of directors, the plan of
merger shall be submitted to the director for approval with a
nonrefundable application fee { - of $3,000 - } { + in an
amount established by the director by rule + }. Certified copies
of the authorizing resolutions of each board of directors, if any
such resolutions are required under applicable law, showing
approval of the plan of merger in accordance with subsection (1)
of this section shall also be submitted. For each Oregon nonstock
bank that is a party to a merger, the certified copies of the
board resolutions shall also show that the resolutions were
approved by a majority of the entire board.
(4) After approval by each board of directors of the plan of
merger, notice of the merger shall be delivered to the household
of each depositor of each Oregon nonstock bank unless the Oregon
nonstock bank is the resulting insured nonstock institution. Such
notice shall include at least the name of the resulting insured
nonstock institution and the location of its head office and may
be included in any account statement regularly delivered to such
depositors.
SECTION 9. ORS 711.170 is amended to read:
711.170. (1) Subject to the provisions set forth in this
section and ORS 713.270, an Oregon bank may sell all or any
portion of its assets or transfer all or any portion of its
liabilities, other than deposit liabilities, to any person and
may transfer all or any portion of its deposit liabilities to any
insured institution.
(2) An Oregon bank may sell all or substantially all of its
assets outside the ordinary course of business, transfer all or
substantially all the deposit liabilities of any of its branches
or principal place of business, or both, only with the prior
written approval of the Director of the Department of Consumer
and Business Services.
(3) An acquisition transaction agreement shall be approved by a
majority of the entire board of directors of each Oregon bank
that:
(a) Is selling assets or transferring deposit liabilities, or
both, requiring approval of the director under subsection (2) of
this section; or
(b) Is acquiring all or substantially all of the assets outside
the ordinary course of business, all or substantially all of the
deposit liabilities, or both, of another insured institution.
(4) After approval of the acquisition transaction agreement by
the board of directors of each Oregon bank that is subject to
subsection (3) of this section, the following shall be submitted
to the director, if required under subsection (2) of this
section, for approval:
(a) A copy of the acquisition transaction agreement, which
shall contain the terms of conditions of the acquisition
transaction;
(b) A nonrefundable application fee { - of $3,000 - } { +
in an amount established by the director by rule + };
(c) Certified copies of the authorizing resolutions of the
board of directors of each such Oregon bank showing approval of
the acquisition transaction agreement in accordance with
subsection (3) of this section; and
(d) Such other information as the director may require.
(5) If an Oregon stock bank proposes to transfer all or
substantially all of its assets outside the ordinary course of
business, all or substantially all of its deposit liabilities, or
both, such Oregon stock bank shall send to each of its
stockholders, within 30 days after approval by its board of
directors, notice of the acquisition transaction and a copy of
ORS 711.175, 711.180 and 711.185. To be effective, each Oregon
stock bank that proposes to transfer all or substantially all of
its assets outside the ordinary course of business, all or
substantially all of its deposit liabilities, or both, shall have
such acquisition transaction approved by a vote of two-thirds of
the outstanding stock of each class of voting shares at a meeting
called to consider the acquisition transaction.
(6) Within 90 days after approval of the board of directors of
each Oregon nonstock bank that proposes to transfer all or
substantially all of its assets outside the ordinary course of
business, all or substantially all of its deposit liabilities, or
both, each such Oregon nonstock bank shall send notice of the
acquisition transaction to the household of each depositor of
each such Oregon nonstock bank. Such notice shall include at
least the name of the acquiring person or insured institution,
the address of the head office of such person or insured
institution, and a statement that all or substantially all of the
assets, deposit liabilities, or both, will be acquired. Such
notice may be included in any account statement sent to such
depositors.
(7) The director shall approve an acquisition transaction that
is subject to subsection (2) of this section if the director
finds that the acquisition transaction:
(a) Conforms with the provisions of the Bank Act;
(b) Will not be detrimental to the safety and soundness of an
Oregon bank that is a party to such an acquisition transaction;
(c) Is not contrary to the public interest; and
(d) If the acquiring person or insured institution is not an
Oregon bank, the director is satisfied that the acquisition
transaction is permitted by the supervisory authority, if any,
having jurisdiction over the acquiring person or insured
institution.
(8) If the director disapproves an acquisition transaction that
is subject to subsection (2) of this section, the director shall
state any objections in writing and give the parties to the
acquisition transaction an opportunity to take actions to obviate
the objections.
(9) Any party to an acquisition transaction agreement may
appeal the decision of the director as provided in ORS 183.415 to
183.500.
SECTION 10. ORS 713.150 is amended to read:
713.150. (1) The out-of-state state bank or extranational
institution shall submit the application for a certificate of
authority, together with an application fee { - of $500 - }
{ + in an amount established by the Director of the Department
of Consumer and Business Services by rule + }, to the director
{ - of the Department of Consumer and Business Services - } for
filing. The out-of-state state bank or extranational institution
shall also deliver with the completed application a certificate
of existence or a document of similar import, duly authenticated
by the official with custody of records in the state or country
under whose law it is organized and a copy of the documents filed
to comply with ORS 713.140 (3) evidencing filing of such
documents by the Secretary of State.
(2) If the director finds that such application conforms to
this chapter, the director, when all fees and charges have been
paid, shall issue and return to the sender a certificate of
authority to conduct banking business in this state with the copy
of the filed application.
SECTION 11. ORS 713.240 is amended to read:
713.240. (1) Whenever an out-of-state state bank or
extranational institution has given cause for revocation of its
certificate of authority as provided in ORS 713.230 and has
failed to correct the neglect, omission, misrepresentation or
delinquency, the Director of the Department of Consumer and
Business Services may revoke the right of the out-of-state state
bank or extranational institution to conduct banking business in
this state. The director shall mail a notice of the revocation to
the mailing address shown for the out-of-state state bank or
extranational institution in the current records of the director
to the out-of-state state bank or extranational institution at
its registered office in this state or its principal office in
its home state.
(2) After the director revokes the certificate of authority,
all powers that this state conferred upon the out-of-state state
bank or extranational institution shall cease, and thereafter no
person shall exercise or attempt to exercise in this state any
power under the revoked certificate of authority.
(3) Whenever it is established to the satisfaction of the
director that any out-of-state state bank or extranational
institution, the certificate of authority of which has been
revoked under subsection (1) of this section, has corrected the
cause for revocation, the director shall restore the out-of-state
state bank or extranational institution to all its former rights
and privileges in the same manner as the director revoked the
authority of the out-of-state state bank or extranational
institution.
(4) Any out-of-state state bank or extranational institution
previously authorized to conduct banking business in this state
that has had its certificate of authority revoked and that has
corrected the cause for revocation under subsection (1) of this
section may apply for reinstatement of its certificate of
authority within two years of the date of revocation. The
out-of-state state bank or extranational institution shall pay
all fees which accrued before the director revoked the
certificate of authority and a reinstatement filing fee { - of
$100 - } { + in amount established by the director by rule + }.
The payment shall accompany the application for reinstatement. If
the director is satisfied that the cause for revocation has been
corrected, the director shall file the application for
reinstatement of the out-of-state state bank or extranational
institution, entitling it to resume its business in this state.
The director shall not file the application for reinstatement
unless the name of the out-of-state state bank or extranational
institution conforms to ORS 713.130 and the application is filed
within two years of the date of revocation.
(5) Reinstatement under this section relates back to and takes
effect as of the effective date of the revocation of the
certificate of authority, so that the existence of the
out-of-state state bank or extranational institution is deemed to
have continued without interruption from that date.
SECTION 12. ORS 713.300 is amended to read:
713.300. (1) For purposes of this section, 'foreign
association' means a foreign association as defined in ORS
722.004 or a federal association as defined in ORS 722.004, the
home state of which is a state other than Oregon.
(2) Subject to subsection (3) of this section, any out-of-state
bank, extranational institution or foreign association, without
being authorized to transact banking business or savings and loan
business in this state, may take, acquire, hold and enforce notes
secured by mortgages or trust deeds and make commitments to
purchase such notes. The out-of-state bank, extranational
institution or foreign association may foreclose the mortgages or
trust deeds in the courts of this state, acquire the mortgaged
property, hold, own and operate the property for a period not
exceeding five years and dispose of the property. The activities
authorized under this subsection by an out-of-state bank,
extranational institution or foreign association shall not
constitute transacting business in this state for the purposes of
ORS chapter 60.
(3) Before an out-of-state bank, extranational institution or
foreign association engages in any of the activities described in
subsection (2) of this section, the bank, institution or
association shall first file with the Department of Consumer and
Business Services a statement signed by its president, secretary,
treasurer or general manager indicating that the bank,
institution or association designates the Director of the
Department of Consumer and Business Services its attorney for
service of process. The out-of-state bank, extranational
institution or foreign association shall pay an initial filing
fee { - of $200 - } and an annual fee { - of $200 - } { +
in amounts established by the director by rule + }. The statement
shall include the address of the principal place of business of
the out-of-state bank, extranational institution or foreign
association.
(4) The Director of the Department of Consumer and Business
Services, upon receiving service of process as authorized by
subsection (3) of this section, immediately shall forward all
documents served upon the director to the principal place of
business of the out-of-state bank, extranational institution or
foreign association.
(5) The filing requirements of subsection (3) of this section
do not apply to an out-of-state bank or extranational institution
that has obtained a certificate of authority to transact banking
business in this state under ORS 713.020, or to a foreign
association that has obtained a certificate of authority to
transact savings and loan business in this state under ORS
722.502. Notwithstanding subsection (3) of this section, such an
out-of-state bank, extranational institution or foreign
association may take, acquire, hold and enforce notes secured by
mortgages or trust deeds, make commitments to purchase such notes
and participate with other lenders authorized to do business in
this state in the making of loans for which such notes are
executed and delivered.
(6) An out-of-state bank, extranational institution or foreign
association that indirectly engages in the activities described
in subsection (2) of this section because of its beneficial
interest in a pool of notes secured by mortgages or trust deeds
need not comply with subsection (3) of this section.
SECTION 13. ORS 714.025 is amended to read:
714.025. (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 - } { + in an amount established by the director by rule.
The + } 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 - } { + an amount established by the director by
rule + }. 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.
SECTION 14. ORS 714.035 is amended to read:
714.035. 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 - } { + shall be an amount
established by the Director of the Department of Consumer and
Business Services by rule + }.
SECTION 15. ORS 716.028 is amended to read:
716.028. Any number of persons, not less than five, desiring to
organize an Oregon savings bank shall, as prospective
incorporators, first file an application with the Director of the
Department of Consumer and Business Services for authority to
organize an Oregon savings bank. The applicants shall pay to the
director at the time of their application a fee { - of
$2,500 - } { + in an amount established by the director by
rule + }, no part of which will be refunded. The application
shall be signed by one of the applicants. The following
information and documents shall be included in or with the
application:
(1) The corporate name.
(2) The proposed location of the initial principal place of
business.
(3) The name, occupation, residence and post-office address of
each prospective incorporator.
(4) The proposed articles of incorporation.
(a) If the Oregon savings bank is to be organized as an Oregon
stock savings bank, the articles of incorporation shall conform
to the provisions set forth in ORS 707.110.
(b) If the Oregon savings bank is to be organized as an Oregon
nonstock bank, the articles of incorporation shall conform to the
provisions set forth in ORS 716.040.
(5) The names and residence addresses of the proposed senior
officers and the names, occupations and residence addresses of
proposed initial directors.
(6) If the Oregon savings bank is being organized as an Oregon
stock savings bank, the number of shares of voting stock proposed
to be subscribed for by the incorporators and each of the
proposed directors and senior officers, and the names of any
other persons who are expected to subscribe for, to own or to
control more than 10 percent of the voting stock and the amount
of stock for which each proposes to subscribe.
(7) Evidence satisfactory to the director of the character,
financial responsibility and ability of the prospective
incorporators, directors and senior officers.
(8) Evidence satisfactory to the director, in the form of a
business plan and such additional information as the director may
require, demonstrating that the proposed Oregon savings bank is
likely to be financially successful.
(9) The proposed operating policies of the Oregon savings bank.
(10) Any other information that the director may require.
SECTION 16. ORS 722.602 is amended to read:
722.602. (1) The Director of the Department of Consumer and
Business Services shall charge and collect fees for filing:
(a) An application for a certificate of incorporation,
{ - $500 - } payable by the incorporators.
(b) An application for approval to establish a branch facility,
{ - $200, - } or to change the location of the principal office
or a branch facility { - , $100 - } .
(c) Proposed amendments to bylaws or articles of incorporation
for approval { - , $50 - } .
(d) An application by a foreign association for a certificate
of authority { - , $500 - } .
(e) An application for approval of a merger, consolidation,
exchange of shares or sale of assets, { - $500 - } payable by
the associations involved.
(f) An application for approval of a dissolution { - ,
$500 - } .
(g) An application by a domestic association for approval of a
conversion { - , $500 - } .
(h) An application by a foreign or federal association or a
savings bank for approval of a conversion { - , $500 - } .
(2) { + The director shall establish the amount of the fees
described in subsection (1) of this section by rule. + } No part
of a fee paid under subsection (1) of this section shall be
refunded if the application is denied or approval is refused.
(3) The director may by rule establish charges to be collected
from associations for examinations conducted under ORS 722.438.
SECTION 17. ORS 723.012 is amended to read:
723.012. (1) Any seven or more residents of this state or
another appropriate jurisdiction, of legal age, who have a common
bond referred to in ORS 723.172 may organize a credit union and
become charter members thereof by complying with this section.
(2) The incorporators shall execute the documents, including
the articles of incorporation, required by the Director of the
Department of Consumer and Business Services to apply for a
credit union charter. The articles shall state:
(a) The name, which shall include the words 'credit union ' and
which shall not be the same as that of any other existing credit
union in this state.
(b) The location where the proposed credit union is to have its
principal place of business.
(c) The par value, if any, of the shares of the credit union
shall be defined in the bylaws.
(d) The full name, residence and post-office address of each of
the incorporators.
(e) The number of its directors, which shall not be less than
five, and the names of the incorporators who shall be its
directors until the first annual meeting of shareholders.
(f) The number of members of the supervisory committee, which
shall not be less than three, and the name, residence and
post-office address of the persons who are to serve as members
until the first meeting of directors.
(3) The incorporators shall prepare and adopt bylaws for the
general government of the credit union, which shall be consistent
with this chapter.
(4) The incorporators shall forward the articles of
incorporation and the bylaws to the Director of the Department of
Consumer and Business Services, together with a filing fee
{ - of $150 - } { + in an amount established by the director
by rule + }. The director shall issue a certificate of approval
if the articles and the bylaws are in conformity with this
chapter and the director is satisfied that the ability of the
proposed credit union to operate successfully is favorable. The
director shall return a copy of the bylaws and the articles to
the applicants or their representatives, which shall be preserved
in the permanent files of the credit union. The application shall
be acted upon by the director within 60 days.
(5) The subscribers for a credit union charter shall not
transact any business until formal approval of the articles and
bylaws has been received.
SECTION 18. ORS 723.032 is amended to read:
723.032. (1) A credit union may establish a place of business
or change its place of business within this state upon written
notice to the Director of the Department of Consumer and Business
Services.
(2) A credit union may establish additional places of business
upon written application to the Director of the Department of
Consumer and Business Services. The application shall be
accompanied by a { - $500 - } fee { + in an amount
established by the director by rule + }. The fee shall be paid
only with applications for the establishment of new places of
business. The fee is not required to be paid with applications
relating to the acquisition or relocation of existing places of
business. The director may approve or disapprove the application.
If the director does not disapprove an application within 30 days
after a completed application is received, the application shall
be considered approved.
(3) The director may limit or restrict the ability of a credit
union to establish additional places of business upon written
notice to the credit union if the director determines that the
safety and soundness of the credit union would be adversely
affected by any addition.
(4) A credit union may share office space with one or more
credit unions and contract with any person or corporation to
provide facilities or personnel.
SECTION 19. { + The Banking Education Assessment Account in
the Consumer and Business Services Fund described in ORS 705.145
(8) (1999 Edition) is abolished. Any unexpended balance of the
Banking Education Assessment Account is transferred to the
Consumer and Business Services Fund for expenditure as provided
under ORS 705.145 and 705.165, as amended by sections 1 and 2 of
this 2001 Act. + }
SECTION 20. { + (1) The amendments to ORS 705.165 by section 2
of this 2001 Act apply to amounts accruing to the Department of
Consumer and Business Services on or after the operative date of
this section, section 19 of this 2001 Act and the amendments to
statutes by sections 1 to 18 of this 2001 Act. Any unexpended
balance in the separate subaccount described in ORS 705.165 (1999
Edition) on the operative date of this section, section 19 of
this 2001 Act and the amendments to statutes by sections 1 to 18
of this 2001 Act may be expended by the department in carrying
out its functions and duties as described in ORS 705.165, as
amended by section 2 of this 2001 Act.
(2) The amendments to ORS 697.842 by section 3 of this 2001 Act
apply to moneys received by the Director of the Department of
Consumer and Business Services under ORS 697.005 to 697.095 or
697.602 to 697.842 on or after the operative date of this
section, section 19 of this 2001 Act and the amendments to
statutes by sections 1 to 18 of this 2001 Act. Moneys received
under ORS 697.842 (1999 Edition) prior to the operative date of
+ } { + this section, section 19 of this 2001 Act and the
amendments to statutes by sections 1 to 18 of this 2001 Act + }
{ + may be expended on or after the operative date of this
section, section 19 of this 2001 Act and the amendments to
statutes by sections 1 to 18 of this 2001 Act for the purposes
described in ORS 705.165, as amended by section 2 of this 2001
Act. + }
SECTION 21. { + (1) Sections 19 and 20 of this 2001 Act and
the amendments to statutes by sections 1 to 18 of this 2001 Act
become operative January 2, 2002.
(2) The Director of the Department of Consumer and Business
Services may take any action, including adopting rules, before
the operative date set forth in this section that is necessary to
enable the director to exercise, on and after the operative date
set forth in this section, all the duties, functions and powers
conferred on the director by sections 19 and 20 of this 2001 Act
and the amendments to statutes by sections 1 to 18 of this 2001
Act. + }
SECTION 22. { + This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2001 Act takes effect on
its passage. + }
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