75th OREGON LEGISLATIVE ASSEMBLY--2009 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 793
House Bill 2199
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski 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.
Authorizes Director of Department of Consumer and Business
Services to set different fees for different financial
institutions and to share information with federal agencies that
regulate financial institutions.
Authorizes director to determine finance charge for consumer
loans on date preceding calendar year in which finance charge
will apply. Removes requirement to post consumer finance license
application for 30 days.
Gives director authority to oversee financial holding companies
and bank holding companies.
Repeals regulations governing savings associations.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to financial regulation; creating new provisions;
amending ORS 56.080, 112.810, 113.238, 114.535, 180.540,
183.635, 192.502, 192.555, 205.460, 293.353, 293.701, 293.718,
293.723, 294.831, 294.882, 294.895, 311.780, 317.057, 317.147,
399.240, 456.548, 458.670, 646A.628, 705.137, 705.635, 705.638,
705.640, 705.642, 706.515, 706.530, 706.720, 713.300, 715.055,
717.235, 723.014, 723.114, 723.118, 723.136, 723.752, 725.120,
725.145, 725.185, 725.340, 726.075 and 732.145; repealing ORS
705.620, 722.004, 722.008, 722.012, 722.014, 722.016, 722.018,
722.022, 722.024, 722.026, 722.028, 722.032, 722.034, 722.036,
722.038, 722.042, 722.044, 722.046, 722.048, 722.052, 722.056,
722.058, 722.062, 722.064, 722.066, 722.068, 722.072, 722.074,
722.102, 722.104, 722.106, 722.107, 722.108, 722.112, 722.113,
722.114, 722.116, 722.118, 722.122, 722.124, 722.132, 722.134,
722.136, 722.138, 722.142, 722.152, 722.154, 722.156, 722.162,
722.164, 722.202, 722.204, 722.206, 722.208, 722.212, 722.214,
722.252, 722.254, 722.256, 722.257, 722.258, 722.262, 722.264,
722.266, 722.268, 722.302, 722.304, 722.306, 722.308, 722.309,
722.311, 722.312, 722.314, 722.322, 722.324, 722.326, 722.328,
722.332, 722.334, 722.336, 722.338, 722.342, 722.352, 722.354,
722.356, 722.408, 722.416, 722.419, 722.432, 722.434, 722.436,
722.438, 722.442, 722.444, 722.446, 722.448, 722.452, 722.454,
722.456, 722.457, 722.458, 722.459, 722.462, 722.464, 722.468,
722.474, 722.476, 722.478, 722.482, 722.484, 722.502, 722.504,
722.506, 722.508, 722.512, 722.514, 722.516, 722.602, 722.606,
722.652, 722.654, 722.656, 722.658, 722.660 and 722.991; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 56.080 is amended to read:
56.080. (1) Except as provided in subsections (2), (3) and (4)
of this section, the Secretary of State, within one year after a
filing and not less than 20 days after written notice to the
company or individual who submitted the document to the office,
may withdraw any certificate issued or document filed by the
Secretary of State, except filings pursuant to ORS chapter 647,
on any ground existing at the time of the filing for which the
Secretary of State could have originally refused to issue the
certificate or file the document. The written notice shall state
the reason for the proposed withdrawal.
(2) The Secretary of State, within one year after a filing, may
withdraw from filing any document filed by the Secretary of State
when the person who submitted the document advises the office
that the document was submitted prematurely or by inadvertence or
mistake. The person requesting the withdrawal shall accompany the
request with a written statement reflecting the basis of the
person's authority to initiate the withdrawal.
(3) The Secretary of State may withdraw without notice or
hearing a certificate that the Secretary of State has issued or a
document the Secretary of State has filed when the fee was paid
with a check that was returned to the office for lack of
sufficient funds. Such withdrawal shall be retroactive to the
date of filing.
(4) The Secretary of State shall withdraw a certificate the
Secretary of State has issued or a document the Secretary of
State has filed if the Secretary of State receives a final
written order from the Director of the Department of Consumer and
Business Services that establishes that the person named in the
certificate or document has violated ORS 705.638, 707.005
{ - , - } { + or + } 707.010 { + . + } { - or 722.012. - }
(5) Any decision under this section may be reviewed in
accordance with the provisions of ORS chapter 183.
(6) A withdrawal from filing of a document under this section
is retroactive to the date of the filing but { - shall - }
{ + does + } not relieve a person of any liability the person
may have incurred while the document was filed with the office.
The Secretary of State is not required to refund any fees paid in
conjunction with the document withdrawn.
(7) At any time prior to a delayed effective date specified in
a document, upon written request of the person or persons who
originally filed the document with the Secretary of State, the
document shall be withdrawn. Upon such withdrawal of a document,
the document { - shall have - } { + has + } no further effect
and shall be treated as if { - it - } { + the document + }
had not been filed. The person requesting the withdrawal shall
accompany the request with a written statement reflecting the
basis of the person's authority to initiate the withdrawal.
SECTION 2. ORS 112.810 is amended to read:
112.810. (1) Any person having custody of a will:
(a) Shall deliver the will to the testator upon demand from the
testator, unless the person having custody of the will is an
attorney and is entitled to retain the will pursuant to ORS
87.430;
(b) May at any time deliver the will to the testator;
(c) Upon demand from the conservator, shall deliver the will to
a conservator for the testator;
(d) Upon demand from the attorney-in-fact, shall deliver the
will to an attorney-in-fact acting under a durable power of
attorney signed by the testator expressly authorizing the
attorney-in-fact to demand custody of the will;
(e) May deliver the will to any attorney licensed to practice
law in Oregon willing to accept delivery of the will if the
person does not know or cannot ascertain, upon diligent inquiry,
the address of the testator; or
(f) Shall deliver the will to a court having jurisdiction of
the estate of the testator or to a personal representative named
in the will within 30 days after the date of receiving
information that the testator is dead.
(2) With respect to a will held in a safe deposit box,
compliance with ORS 708A.655 { - , 722.660 - } or 723.844 by
the financial institution, trust company, savings association or
credit union within which the box is located shall be deemed to
be compliance with the requirements of this section.
SECTION 3. ORS 113.238 is amended to read:
113.238. (1) { - Any - } { + A + } person who has knowledge
that a decedent died wholly intestate, that the decedent owned
property subject to probate in Oregon and that the decedent died
without a known heir shall give notice of the death within 48
hours after acquiring that knowledge to an estate administrator
of the Department of State Lands appointed under ORS 113.235.
(2) Except as provided by ORS 708A.430 { - , 722.262 - } and
723.466, a person may not dispose of or diminish any assets of
the estate of a decedent who has died wholly intestate, who owned
property subject to probate in Oregon and who died without a
known heir unless the person has prior written approval of an
estate administrator of the Department of State Lands appointed
under ORS 113.235. The prohibition of this subsection:
(a) Applies to a guardian or conservator for the decedent; and
(b) Does not apply to a personal representative appointed under
ORS 113.085 (3) or to an affiant authorized under ORS 114.520 to
file an affidavit under ORS 114.515.
(3) For purposes of this section, a known heir is an heir who
has been identified and found.
SECTION 4. ORS 114.535 is amended to read:
114.535. (1) { - Any - } { + A + } person indebted to the
decedent or having possession of personal property belonging to
the estate, to whom a certified copy of the affidavit filed under
ORS 114.515 is delivered by the affiant on or after the 10th day
following the filing of the affidavit, shall pay, transfer or
deliver the personal property to the affiant. { - Any - } { +
A + } person who has received property of the decedent under ORS
446.616 { - , 722.262 - } or 803.094, or { - any - } { +
a + } similar statute providing for the transfer of property of
an estate { - which - } { + that + } is not being
probated { + , + } shall pay, transfer or deliver the property to
the affiant if the person would be required to pay, transfer or
deliver the property to a personal representative of the estate.
The transferor is discharged and released from any liability or
responsibility for the transfer in the same manner and with the
same effect as if the property had been transferred, delivered or
paid to a personal representative of the estate of the decedent.
(2) A transfer agent of any corporate security registered in
the name of the decedent shall change the registered ownership on
the books of the corporation to the person entitled thereto on
presentation of a certified copy of the affidavit filed under ORS
114.515.
(3) If a person to whom an affidavit is delivered refuses to
pay, deliver or transfer any personal property to the affiant or
the person entitled to the property as disclosed in the affidavit
filed under ORS 114.515, the property may be recovered or
{ - its - } payment, delivery or transfer { + of the property
may be + } compelled upon proof of the transferee's entitlement
in a proceeding brought for the purpose by or on behalf of the
transferee.
(4) If the affidavit was signed by the Director of Human
Services or a designee of the director, the director or the
designee may certify a copy of the affidavit for the purposes
described in subsection (1) or (2) of this section.
SECTION 5. ORS 180.540 is amended to read:
180.540. (1) Except as provided in subsection (2) of this
section, a seller or extender of credit may submit to the
Department of Justice { - any - } { + a + } consumer contract
issued by the seller or extender of credit for the purpose of
obtaining review of the consumer contract for { - its - } { +
the consumer contract's + } compliance with plain language
standards in ORS 180.545.
(2) For the purpose of obtaining a review of a consumer
contract for { - its - } { + the consumer contract's + }
compliance with plain language standards in ORS 180.545, if a
consumer contract:
(a) Is an insurance policy, the seller or extender of credit
issuing the policy may submit { - it - } { + the policy + }
to the Director of the Department of Consumer and Business
Services.
(b) Is an agreement for a loan or other extension of credit in
which the extender of credit is an insured institution, as
defined in ORS 706.008, the extender of credit under the
agreement may submit the agreement to the Director of the
Department of Consumer and Business Services.
(c) Is an agreement for a loan or other extension of credit in
which the extender of credit is a { - savings association or
federal association, as those terms are defined in ORS 722.004,
a - } credit union, as that term is defined in ORS 723.006, or a
licensee under ORS chapter 725, the extender of credit under the
agreement may submit the agreement to the Director of the
Department of Consumer and Business Services.
(3) For purposes of this section, a consumer contract is a
written contract made in the course of a consumer transaction to
the value of $50,000, excluding interest or finance charges, in
which the contract involves any of the following, primarily for
personal, family or household use:
(a) Real estate, goods or services as defined in ORS 646.605.
(b) Any extension of credit, including the lending of money.
SECTION 6. ORS 183.635 is amended to read:
183.635. (1) Except as provided in this section, all agencies
must use administrative law judges assigned from the Office of
Administrative Hearings established under ORS 183.605 to conduct
contested case hearings, without regard to whether those hearings
are subject to the procedural requirements for contested case
hearings.
(2) The following agencies need not use administrative law
judges assigned from the office:
(a) Attorney General.
(b) Boards of stewards appointed by the Oregon Racing
Commission.
(c) Bureau of Labor and Industries and the Commissioner of the
Bureau of Labor and Industries.
(d) Department of Corrections.
(e) Department of Education, State Board of Education and
Superintendent of Public Instruction.
(f) Department of Higher Education and institutions of higher
education listed in ORS 352.002.
(g) Department of Human Services for vocational rehabilitation
services cases under 29 U.S.C. 722(c) and disability
determination cases under 42 U.S.C. 405.
(h) Department of Revenue.
(i) Department of State Police.
(j) Employment Appeals Board.
(k) Employment Relations Board.
(L) Energy Facility Siting Council.
(m) Fair Dismissal Appeals Board.
(n) Governor.
(o) Land Conservation and Development Commission.
(p) Land Use Board of Appeals.
(q) Local government boundary commissions created pursuant to
ORS 199.430.
(r) Oregon Youth Authority.
(s) Psychiatric Security Review Board.
(t) Public Utility Commission.
(u) Secretary of State.
(v) State Accident Insurance Fund Corporation.
(w) State Apprenticeship and Training Council.
(x) State Board of Parole and Post-Prison Supervision.
(y) State Land Board.
(z) State Treasurer.
(aa) Wage and Hour Commission.
(3) The Workers' Compensation Board is exempt from using
administrative law judges assigned from the office for any
hearing conducted by the board under ORS chapters 147, 654 and
656. Except as specifically provided in this subsection, the
Department of Consumer and Business Services must use
administrative law judges assigned from the office only for
contested cases arising out of the department's powers and duties
under:
(a) ORS chapter 59;
(b) ORS 200.005 to 200.075;
(c) ORS chapter 455;
(d) ORS chapter 674;
(e) ORS chapters 706 to 716;
(f) ORS chapter 717;
(g) ORS chapters { - 722, - } 723, 725 and 726; and
(h) ORS chapters 731, 732, 733, 734, 735, 737, 742, 743, 743A,
744, 746, 748 and 750.
(4) Notwithstanding any other provision of law, in any
proceeding in which an agency is required to use an
administrative law judge assigned from the office, an officer or
employee of the agency may not conduct the hearing on behalf of
the agency.
(5) Notwithstanding any other provision of ORS 183.600 to
183.690, an agency is not required to use an administrative law
judge assigned from the office if:
(a) Federal law requires that a different administrative law
judge or hearing officer be used; or
(b) Use of an administrative law judge from the office could
result in a loss of federal funds.
(6) Notwithstanding any other provision of this section, the
Department of Environmental Quality must use administrative law
judges assigned from the office only for contested case hearings
conducted under the provisions of ORS 183.413 to 183.470.
SECTION 7. ORS 192.502 is amended to read:
192.502. The following public records are exempt from
disclosure under ORS 192.410 to 192.505:
(1) Communications within a public body or between public
bodies of an advisory nature to the extent that they cover other
than purely factual materials and are preliminary to any final
agency determination of policy or action. This exemption shall
not apply unless the public body shows that in the particular
instance the public interest in encouraging frank communication
between officials and employees of public bodies clearly
outweighs the public interest in disclosure.
(2) Information of a personal nature such as but not limited to
that kept in a personal, medical or similar file, if public
disclosure would constitute an unreasonable invasion of privacy,
unless the public interest by clear and convincing evidence
requires disclosure in the particular instance. The party seeking
disclosure shall have the burden of showing that public
disclosure would not constitute an unreasonable invasion of
privacy.
(3) Public body employee or volunteer addresses, Social
Security numbers, dates of birth and telephone numbers contained
in personnel records maintained by the public body that is the
employer or the recipient of volunteer services. This exemption:
(a) Does not apply to the addresses, dates of birth and
telephone numbers of employees or volunteers who are elected
officials, except that a judge or district attorney subject to
election may seek to exempt the judge's or district attorney's
address or telephone number, or both, under the terms of ORS
192.445;
(b) Does not apply to employees or volunteers to the extent
that the party seeking disclosure shows by clear and convincing
evidence that the public interest requires disclosure in a
particular instance;
(c) Does not apply to a substitute teacher as defined in ORS
342.815 when requested by a professional education association of
which the substitute teacher may be a member; and
(d) Does not relieve a public employer of any duty under ORS
243.650 to 243.782.
(4) Information submitted to a public body in confidence and
not otherwise required by law to be submitted, where such
information should reasonably be considered confidential, the
public body has obliged itself in good faith not to disclose the
information, and when the public interest would suffer by the
disclosure.
(5) Information or records of the Department of Corrections,
including the State Board of Parole and Post-Prison Supervision,
to the extent that disclosure would interfere with the
rehabilitation of a person in custody of the department or
substantially prejudice or prevent the carrying out of the
functions of the department, if the public interest in
confidentiality clearly outweighs the public interest in
disclosure.
(6) Records, reports and other information received or compiled
by the Director of the Department of Consumer and Business
Services in the administration of ORS chapters 723 and 725 not
otherwise required by law to be made public, to the extent that
the interests of lending institutions, their officers, employees
and customers in preserving the confidentiality of such
information outweighs the public interest in disclosure.
(7) Reports made to or filed with the court under ORS 137.077
or 137.530.
(8) Any public records or information the disclosure of which
is prohibited by federal law or regulations.
(9)(a) Public records or information the disclosure of which is
prohibited or restricted or otherwise made confidential or
privileged under Oregon law.
(b) Subject to ORS 192.423, paragraph (a) of this subsection
does not apply to factual information compiled in a public record
when:
(A) The basis for the claim of exemption is ORS 40.225;
(B) The factual information is not prohibited from disclosure
under any applicable state or federal law, regulation or court
order and is not otherwise exempt from disclosure under ORS
192.410 to 192.505;
(C) The factual information was compiled by or at the direction
of an attorney as part of an investigation on behalf of the
public body in response to information of possible wrongdoing by
the public body;
(D) The factual information was not compiled in preparation for
litigation, arbitration or an administrative proceeding that was
reasonably likely to be initiated or that has been initiated by
or against the public body; and
(E) The holder of the privilege under ORS 40.225 has made or
authorized a public statement characterizing or partially
disclosing the factual information compiled by or at the
attorney's direction.
(10) Public records or information described in this section,
furnished by the public body originally compiling, preparing or
receiving them to any other public officer or public body in
connection with performance of the duties of the recipient, if
the considerations originally giving rise to the confidential or
exempt nature of the public records or information remain
applicable.
(11) Records of the Energy Facility Siting Council concerning
the review or approval of security programs pursuant to ORS
469.530.
(12) Employee and retiree address, telephone number and other
nonfinancial membership records and employee financial records
maintained by the Public Employees Retirement System pursuant to
ORS chapters 238 and 238A.
(13) Records of or submitted to the State Treasurer, the Oregon
Investment Council or the agents of the treasurer or the council
relating to active or proposed publicly traded investments under
ORS chapter 293, including but not limited to records regarding
the acquisition, exchange or liquidation of the investments. For
the purposes of this subsection:
(a) The exemption does not apply to:
(A) Information in investment records solely related to the
amount paid directly into an investment by, or returned from the
investment directly to, the treasurer or council; or
(B) The identity of the entity to which the amount was paid
directly or from which the amount was received directly.
(b) An investment in a publicly traded investment is no longer
active when acquisition, exchange or liquidation of the
investment has been concluded.
(14)(a) Records of or submitted to the State Treasurer, the
Oregon Investment Council, the Oregon Growth Account Board or the
agents of the treasurer, council or board relating to actual or
proposed investments under ORS chapter 293 or 348 in a privately
placed investment fund or a private asset including but not
limited to records regarding the solicitation, acquisition,
deployment, exchange or liquidation of the investments including
but not limited to:
(A) Due diligence materials that are proprietary to an
investment fund, to an asset ownership or to their respective
investment vehicles.
(B) Financial statements of an investment fund, an asset
ownership or their respective investment vehicles.
(C) Meeting materials of an investment fund, an asset ownership
or their respective investment vehicles.
(D) Records containing information regarding the portfolio
positions in which an investment fund, an asset ownership or
their respective investment vehicles invest.
(E) Capital call and distribution notices of an investment
fund, an asset ownership or their respective investment vehicles.
(F) Investment agreements and related documents.
(b) The exemption under this subsection does not apply to:
(A) The name, address and vintage year of each privately placed
investment fund.
(B) The dollar amount of the commitment made to each privately
placed investment fund since inception of the fund.
(C) The dollar amount of cash contributions made to each
privately placed investment fund since inception of the fund.
(D) The dollar amount, on a fiscal year-end basis, of cash
distributions received by the State Treasurer, the Oregon
Investment Council, the Oregon Growth Account Board or the agents
of the treasurer, council or board from each privately placed
investment fund.
(E) The dollar amount, on a fiscal year-end basis, of the
remaining value of assets in a privately placed investment fund
attributable to an investment by the State Treasurer, the Oregon
Investment Council, the Oregon Growth Account Board or the agents
of the treasurer, council or board.
(F) The net internal rate of return of each privately placed
investment fund since inception of the fund.
(G) The investment multiple of each privately placed investment
fund since inception of the fund.
(H) The dollar amount of the total management fees and costs
paid on an annual fiscal year-end basis to each privately placed
investment fund.
(I) The dollar amount of cash profit received from each
privately placed investment fund on a fiscal year-end basis.
(15) The monthly reports prepared and submitted under ORS
293.761 and 293.766 concerning the Public Employees Retirement
Fund and the Industrial Accident Fund may be uniformly treated as
exempt from disclosure for a period of up to 90 days after the
end of the calendar quarter.
(16) Reports of unclaimed property filed by the holders of such
property to the extent permitted by ORS 98.352.
(17) The following records, communications and information
submitted to the Oregon Economic and Community Development
Commission, the Economic and Community Development Department,
the State Department of Agriculture, the Oregon Growth Account
Board, the Port of Portland or other ports, as defined in ORS
777.005, by applicants for investment funds, loans or services
including, but not limited to, those described in ORS 285A.224:
(a) Personal financial statements.
(b) Financial statements of applicants.
(c) Customer lists.
(d) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this paragraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
(e) Production, sales and cost data.
(f) Marketing strategy information that relates to applicant's
plan to address specific markets and applicant's strategy
regarding specific competitors.
(18) Records, reports or returns submitted by private concerns
or enterprises required by law to be submitted to or inspected by
a governmental body to allow it to determine the amount of any
transient lodging tax payable and the amounts of such tax payable
or paid, to the extent that such information is in a form which
would permit identification of the individual concern or
enterprise. Nothing in this subsection shall limit the use which
can be made of such information for regulatory purposes or its
admissibility in any enforcement proceedings. The public body
shall notify the taxpayer of the delinquency immediately by
certified mail. However, in the event that the payment or
delivery of transient lodging taxes otherwise due to a public
body is delinquent by over 60 days, the public body shall
disclose, upon the request of any person, the following
information:
(a) The identity of the individual concern or enterprise that
is delinquent over 60 days in the payment or delivery of the
taxes.
(b) The period for which the taxes are delinquent.
(c) The actual, or estimated, amount of the delinquency.
(19) All information supplied by a person under ORS 151.485 for
the purpose of requesting appointed counsel, and all information
supplied to the court from whatever source for the purpose of
verifying the financial eligibility of a person pursuant to ORS
151.485.
(20) Workers' compensation claim records of the Department of
Consumer and Business Services, except in accordance with rules
adopted by the Director of the Department of Consumer and
Business Services, in any of the following circumstances:
(a) When necessary for insurers, self-insured employers and
third party claim administrators to process workers' compensation
claims.
(b) When necessary for the director, other governmental
agencies of this state or the United States to carry out their
duties, functions or powers.
(c) When the disclosure is made in such a manner that the
disclosed information cannot be used to identify any worker who
is the subject of a claim.
(d) When a worker or the worker's representative requests
review of the worker's claim record.
(21) Sensitive business records or financial or commercial
information of the Oregon Health and Science University that is
not customarily provided to business competitors.
(22) Records of Oregon Health and Science University regarding
candidates for the position of president of the university.
(23) The records of a library, including:
(a) Circulation records, showing use of specific library
material by a named person;
(b) The name of a library patron together with the address or
telephone number of the patron; and
(c) The electronic mail address of a patron.
(24) The following records, communications and information
obtained by the Housing and Community Services Department in
connection with the department's monitoring or administration of
financial assistance or of housing or other developments:
(a) Personal and corporate financial statements and
information, including tax returns.
(b) Credit reports.
(c) Project appraisals.
(d) Market studies and analyses.
(e) Articles of incorporation, partnership agreements and
operating agreements.
(f) Commitment letters.
(g) Project pro forma statements.
(h) Project cost certifications and cost data.
(i) Audits.
(j) Project tenant correspondence.
(k) Personal information about a tenant.
(L) Housing assistance payments.
(25) Raster geographic information system (GIS) digital
databases, provided by private forestland owners or their
representatives, voluntarily and in confidence to the State
Forestry Department, that is not otherwise required by law to be
submitted.
(26) Sensitive business, commercial or financial information
furnished to or developed by a public body engaged in the
business of providing electricity or electricity services, if the
information is directly related to a transaction described in ORS
261.348, or if the information is directly related to a bid,
proposal or negotiations for the sale or purchase of electricity
or electricity services, and disclosure of the information would
cause a competitive disadvantage for the public body or its
retail electricity customers. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
(27) Sensitive business, commercial or financial information
furnished to or developed by the City of Klamath Falls, acting
solely in connection with the ownership and operation of the
Klamath Cogeneration Project, if the information is directly
related to a transaction described in ORS 225.085 and disclosure
of the information would cause a competitive disadvantage for the
Klamath Cogeneration Project. This subsection does not apply to
cost-of-service studies used in the development or review of
generally applicable rate schedules.
(28) Personally identifiable information about customers of a
municipal electric utility or a people's utility district or the
names, dates of birth, driver license numbers, telephone numbers,
electronic mail addresses or Social Security numbers of customers
who receive water, sewer or storm drain services from a public
body as defined in ORS 174.109. The utility or district may
release personally identifiable information about a customer, and
a public body providing water, sewer or storm drain services may
release the name, date of birth, driver license number, telephone
number, electronic mail address or Social Security number of a
customer, if the customer consents in writing or electronically,
if the disclosure is necessary for the utility, district or other
public body to render services to the customer, if the disclosure
is required pursuant to a court order or if the disclosure is
otherwise required by federal or state law. The utility, district
or other public body may charge as appropriate for the costs of
providing such information. The utility, district or other public
body may make customer records available to third party credit
agencies on a regular basis in connection with the establishment
and management of customer accounts or in the event such accounts
are delinquent.
(29) A record of the street and number of an employee's address
submitted to a special district to obtain assistance in promoting
an alternative to single occupant motor vehicle transportation.
(30) Sensitive business records, capital development plans or
financial or commercial information of Oregon Corrections
Enterprises that is not customarily provided to business
competitors.
(31) Documents, materials or other information submitted to the
Director of the Department of Consumer and Business Services in
confidence by a state, federal, foreign or international
regulatory or law enforcement agency or by the National
Association of Insurance Commissioners, its affiliates or
subsidiaries under ORS 646A.250 to 646A.270, 697.005 to 697.095,
697.602 to 697.842, 705.137, 717.200 to 717.320, 717.900 or
717.905, ORS chapter 59, { - 722, - } 723, 725 or 726, the
Bank Act or the Insurance Code when:
(a) The document, material or other information is received
upon notice or with an understanding that it is confidential or
privileged under the laws of the jurisdiction that is the source
of the document, material or other information; and
(b) The director has obligated the Department of Consumer and
Business Services not to disclose the document, material or other
information.
(32) A county elections security plan developed and filed under
ORS 254.074.
(33) Information about review or approval of programs relating
to the security of:
(a) Generation, storage or conveyance of:
(A) Electricity;
(B) Gas in liquefied or gaseous form;
(C) Hazardous substances as defined in ORS 453.005 (7)(a), (b)
and (d);
(D) Petroleum products;
(E) Sewage; or
(F) Water.
(b) Telecommunication systems, including cellular, wireless or
radio systems.
(c) Data transmissions by whatever means provided.
(34) The information specified in ORS 25.020 (8) if the Chief
Justice of the Supreme Court designates the information as
confidential by rule under ORS 1.002.
SECTION 8. ORS 192.555 is amended to read:
192.555. (1) Except as provided in ORS 192.557, 192.559,
192.560, 192.565, 192.570 and 192.585 or as required by ORS
25.643 and 25.646 and the Uniform Disposition of Unclaimed
Property Act, ORS 98.302 to 98.436 and 98.992:
(a) { - No - } { + A + } financial institution
{ - shall - } { + may not + } provide
{ - any - } financial records of { - any - } { + a + }
customer to a state or local agency.
(b) { - No - } { + A + } state or local agency
{ - shall - } { + may not + } request or receive from a
financial institution { - any - } financial records of
customers.
(2) Subsection (1) of this section { - shall - } { +
does + } not preclude a financial institution, in { - its - }
{ + the + } discretion { + of the financial institution + },
from initiating contact with, and thereafter communicating with
and disclosing customer financial records to:
(a) Appropriate state or local agencies concerning
{ - any - } { + a + } suspected violation of the law.
(b) The office of the State Treasurer if the records relate to
state investments in commercial mortgages involving the customer.
The records and the information contained therein are public
records but { - shall be - } { + are + } exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest in disclosure clearly outweighs the public interest in
confidentiality. However, the following records in the office
{ - shall - } { + must + } remain open to public inspection:
(A) The contract or promissory note establishing a directly
held residential or commercial mortgage and information
identifying collateral;
(B) Any copy the office retains of the underlying mortgage note
in which the office purchases a participation interest; and
(C) { - Any - } Information showing that a directly held
loan is in default.
(c) An appropriate state or local agency in connection with any
business relationship or transaction between the financial
institution and the customer, if the disclosure is made in the
ordinary course of business of the financial institution and will
further the legitimate business interests of the customer or the
financial institution.
(3) { - Nothing in - } ORS 192.550 to 192.595 { + do not
prohibit + }
{ - prohibits - } any of the following:
(a) The dissemination of any financial information
{ - which - } { + that + } is not identified with, or
identifiable as being derived from, the financial records of a
particular customer.
(b) The examination by, or disclosure to, the Department of
Consumer and Business Services of financial records
{ - which - } { + that + } relate solely to the exercise of
{ - its - } { + the department's + } supervisory function. The
scope of the department's supervisory function shall be
determined by reference to statutes { - which - } { +
that + } grant authority to examine, audit, or require reports of
financial records or financial institutions.
(c) The furnishing to the Department of Revenue of information
by the financial institution, whether acting as principal or
agent, as required by ORS 314.360.
(d) Compliance with the provisions of ORS 708A.655 { - ,
722.660 - } or 723.844.
(4) Notwithstanding subsection (1) of this section, a financial
institution may:
(a) Enter into an agreement with the Oregon State Bar that
requires the financial institution to make reports to the Oregon
State Bar whenever a properly payable instrument is presented for
payment out of an attorney trust account that contains
insufficient funds, whether or not the instrument is honored by
the financial institution; and
(b) Submit reports to the Oregon State Bar concerning
instruments presented for payment out of an attorney trust
account under a trust account overdraft notification program
established under ORS 9.132.
SECTION 9. ORS 205.460 is amended to read:
205.460. (1) A person whose property is subject to an invalid
claim of encumbrance may petition the circuit court of the county
in which the person resides or in which the property is located
for an order, which may be granted ex parte, directing the
encumbrance claimant to appear at a hearing before the court and
show cause why the claim of encumbrance should not be stricken
and other relief provided by this section should not be granted.
The court shall schedule the hearing no earlier than seven days
after the date of the order. The scheduled date of the hearing
shall allow adequate time for notice of the hearing under
subsection (4) of this section.
(2) A petition under this section shall state the grounds upon
which relief is requested, and shall be supported by the
affidavit of the petitioner or the petitioner's attorney setting
forth a concise statement of the facts upon which the motion is
based.
(3) The petition and affidavit described in subsection (2) of
this section shall be in substantially the following form:
_________________________________________________________________
IN THE CIRCUIT COURT OF
THE STATE OF OREGON
FOR THE COUNTY OF ______
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
______
, )
Petitioner, Case No. ___
)
PETITION FOR AN
ORDER STRIKING
v. AND RELEASING
ENCUMBRANCES,
AWARDING COSTS
AND ATTORNEY FEES
______
, AND ORDER TO
Respondent. ) SHOW CAUSE
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
Petitioner, ______ (insert name), by and through ______ (insert
name and title of attorney for petitioner, if applicable),
petitions this court, pursuant to ORS 205.460, for an order
striking and releasing purported encumbrances, filed or recorded
against Petitioner by Respondent, ______ (insert name or names)
filed or recorded in book/reel/volume No. ___ on page ___ or
document/fee/file/ instrument/microfilm No. ___ in the ______
(insert name of office where document was filed or recorded),
and for an order, pursuant to ORS 205.460, for costs and attorney
fees required to bring this action, on the grounds that the
purported encumbrances have no basis in law or fact. Petitioner
further requests that this court enter an order requiring
Respondent to appear before this court and to show cause why the
above order should not be entered. Finally, Petitioner requests
an order from the court requiring Respondent to pay penalties and
damages as provided in ORS 205.470.
DATED this __ day of ____, __.
_______________
Petitioner or Petitioner's Attorney
_________________________________________________________________
_________________________________________________________________
IN THE CIRCUIT COURT OF
THE STATE OF OREGON
FOR THE COUNTY OF ______
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
______
, )
Petitioner, Case No. ___
)
AFFIDAVIT OF
v. )_______
_
)
)
______
, )
Respondent. )
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
________
)
STATE OF OREGON )
) ss.
County of ______
)
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
I, ______ (insert name of affiant), after being duly sworn,
depose and say:
1. I am the above-entitled petitioner (or the attorney for the
petitioner) in this matter.
2. The information contained in this affidavit is of my own
personal knowledge.
3. Attached as numbered exhibits are true and correct copies of
the following documents that were filed or recorded in the ______
(insert name of office where documents were filed or recorded) on
______ (insert date):
(List and attach document(s))
4. For any purported encumbrances identified above the
following is true. The encumbrance is not authorized by statute,
was not entered into consensually, and is not an equitable,
constructive or other encumbrance imposed by a court of competent
jurisdiction.
DATED this __ day of ____, __.
_______________
(Petitioner or Petitioner's Attorney)
SUBSCRIBED AND SWORN to before me this __ day of ______, __.
_______________ .
NOTARY PUBLIC FOR OREGON
My commission expires: ____
_________________________________________________________________
(4) A copy of the petition and the order directing the
encumbrance claimant to appear under this section shall be served
upon the encumbrance claimant:
(a) By service in the manner provided for personal service of
summons under ORCP 7; or
(b) By mailing a true copy of the petition, affidavit and order
to the encumbrance claimant at the encumbrance claimant's
last-known address, both by first class mail and by certified or
registered mail, return receipt requested. A notice mailed under
this paragraph is effective on the date that the notice is
deposited with the United States Postal Service, properly
addressed and postage prepaid.
(5) The order to show cause shall be in substantially the
following form and shall clearly state that if the encumbrance
claimant fails to appear at the time and place noted, the claim
of encumbrance shall be stricken and released and that the
encumbrance claimant shall be ordered to pay the costs and
reasonable attorney fees incurred by the petitioner at trial and
on appeal:
_________________________________________________________________
IN THE CIRCUIT COURT OF
THE STATE OF OREGON
FOR THE COUNTY OF ______
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
______
, )
Petitioner, Case No. ___
)
ORDER TO
v. SHOW CAUSE
)
)
______
, )
Respondent. )
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
THIS MATTER came before the court on ______ (insert date) on
Petitioner's Petition for an Order Striking and Releasing
Encumbrances, Awarding Costs and Attorney Fees and Order to Show
Cause. The court, having considered the petition, the Affidavit
of ______ (insert name) and the attached exhibits, and it
appearing to the court that there are sufficient grounds to issue
an order to show cause,
IT IS HEREBY ORDERED that the Respondent, ______ (insert name),
appear before this court on ______ (insert date), at ____ (insert
time), to show cause why the petition should not be granted in
its entirety.
IMPORTANT NOTICE:
IF YOU FAIL TO APPEAR AT THE ABOVE TIME AND PLACE, THE COURT
MAY ENTER AN ORDER STRIKING AND RELEASING YOUR ENCUMBRANCE CLAIMS
FILED AGAINST PETITIONER AND YOU MAY BE ORDERED TO PAY COSTS AND
REASONABLE ATTORNEY FEES INCURRED BY THE PETITIONER.
DATED this __ day of ____, __.
_______________
Circuit Court Judge
_________________________________________________________________
(6) If the court determines that the claim of encumbrance is
invalid, the court shall issue an order striking and releasing
the claim of encumbrance and may award costs and reasonable
attorney fees at trial and on appeal to the petitioner to be paid
by the encumbrance claimant. If the court determines that the
claim of encumbrance is valid, the court shall issue an order so
stating and may award costs and reasonable attorney fees at trial
and on appeal to the encumbrance claimant to be paid by the
petitioner.
(7) The procedure set forth in this section is not available
against a person lawfully conducting business as:
(a) An institution, a savings bank, a national bank, an
out-of-state bank, a federal savings bank or an extranational
institution, as those terms are defined in ORS 706.008, or a
subsidiary of an entity described in this paragraph;
{ - (b) A savings association or a federal association, as
those terms are defined in ORS 722.004, or a subsidiary of an
entity described in this paragraph; - }
{ - (c) - } { + (b) + } A financial holding company, a bank
holding company, a savings and loan holding company or a
subsidiary of a financial holding company, a bank holding company
or a savings and loan holding company;
{ - (d) - } { + (c) + } A credit union, as defined in ORS
723.006, or a federal credit union;
{ - (e) - } { + (d) + } A consumer finance company subject
to the provisions of ORS chapter 725;
{ - (f) - } { + (e) + } A mortgage banker or a mortgage
broker, as those terms are defined in ORS 59.840, a mortgage
servicing company or any other mortgage company; or
{ - (g) - } { + (f) + } An insurer as defined in ORS
731.106.
(8) The procedure set forth in this section is not available
against:
(a) An officer, agency, department or instrumentality of the
federal government;
(b) An officer, agency, department or instrumentality of this
state; or
(c) An officer, agency, department or instrumentality of a
political subdivision or public corporation in this state.
SECTION 10. ORS 293.353 is amended to read:
293.353. (1) As payment for expenses of processing
banking-related transactions, the State Treasurer may charge each
state agency having such transactions involving the State
Treasury. The amount so charged shall be determined by the number
of transactions processed by the State Treasurer and shall be
paid in the manner determined by the State Treasurer to be most
efficient and cost effective. The proceeds from such charges
shall be deposited in the Miscellaneous Receipts Account
established in the General Fund for the State Treasurer, and such
proceeds are continuously appropriated for payment of expenses of
the office of the State Treasurer in processing banking-related
transactions.
(2) When the State Treasurer transfers the assets of the local
government investment pool to the state investment fund
established under ORS 293.701 { - (2)(o) - } { + (2)(n)
+ }as authorized by ORS 294.882, 'state agency,' as used in this
section, includes local government participants in the state
investment fund.
SECTION 11. ORS 293.701 is amended to read:
293.701. As used in ORS 293.701 to 293.820, unless the context
requires otherwise:
(1) 'Council' means the Oregon Investment Council.
(2) 'Investment funds' means:
(a) Public Employees Retirement Fund referred to in ORS
238.660;
(b) Industrial Accident Fund referred to in ORS 656.632;
(c) Consumer and Business Services Fund referred to in ORS
705.145;
(d) Employment Department Special Administrative Fund referred
to in ORS 657.822;
(e) Insurance Fund referred to in ORS 278.425;
(f) Funds under the control and administration of the
Department of State Lands;
(g) Oregon Student Assistance Fund referred to in ORS 348.570;
(h) Moneys made available to the Commission for the Blind under
ORS 346.270 and 346.540 or rules adopted thereunder;
(i) Forest rehabilitation bonds sinking fund referred to in ORS
530.280;
(j) Oregon War Veterans' Fund referred to in ORS 407.495;
(k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
(L) World War II Veterans' Compensation Fund;
(m) World War II Veterans' Bond Sinking Fund;
{ - (n) Savings and loan association funds in the hands of
the Director of the Department of Consumer and Business
Services; - }
{ - (o) - } { + (n) + } Funds in the hands of the State
Treasurer that are not required to meet current demands;
{ - (p) - } { + (o) + } State funds that are not subject to
the control and administration of officers or bodies specifically
designated by law;
{ - (q) - } { + (p) + } Funds derived from the sale of
state bonds;
{ - (r) - } { + (q) + } Social Security Revolving Account
referred to in ORS 237.490;
{ - (s) - } { + (r) + } Investment funds of the State Board
of Higher Education lawfully available for investment or
reinvestment;
{ - (t) - } { + (s) + } Local Government Employer Benefit
Trust Fund referred to in ORS 657.513;
{ - (u) - } { + (t) + } Elderly and Disabled Special
Transportation Fund established by ORS 391.800;
{ - (v) - } { + (u) + } Education Stability Fund
established by ORS 348.696;
{ - (w) - } { + (v) + } Deferred Compensation Fund
established under ORS 243.411; and
{ - (x) - } { + (w) + } Trust for Cultural Development
Account established under ORS 359.405.
(3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
SECTION 12. ORS 293.718 is amended to read:
293.718. As payment for expenses of the investment officer, the
State Treasurer may deduct monthly a maximum of 0.25 basis points
of the most recent market value of assets under management for
each of the investment funds. However, for the funds described in
ORS 293.701 { - (2)(o) - } { + (2)(n) + }, a maximum of 0.435
basis points may be deducted monthly. Amounts so deducted shall
be deposited into the Miscellaneous Receipts Account established
in the General Fund for the State Treasurer, and are continuously
appropriated for payment of the expenses of the State Treasurer
as investment officer.
SECTION 13. ORS 293.723 is amended to read:
293.723. (1) Moneys in a fund established by law may not be
discretely invested unless the law establishing the fund
specifically indicates that the moneys may be invested. A
provision in a law establishing a fund that requires interest
earned by the fund to be retained by the fund is not, by itself,
a specific indication that the moneys in the fund may be
discretely invested.
(2) As used in this section, 'discretely invested' means
invested in something other than the state investment fund
established under ORS 293.701 { - (2)(o) - } { + (2)(n) + }.
SECTION 14. ORS 294.831 is amended to read:
294.831. (1) The local government investment pool shall seek to
obtain a competitive return on investments subject to the
standards set forth in ORS 294.835 and consistent with the
liquidity requirements demanded by the short term nature of local
government deposits in the pool.
(2) The investment officer shall at all times hold investments
which mature in three years or less, in an amount not less than
an amount equal to the aggregate of all funds placed with the
investment officer by local governments under ORS 294.805 to
294.895, which investments shall be from the funds defined in ORS
293.701 { - (2)(p) - } { + (2)(o) + }.
(3) Notwithstanding subsection (2) of this section, the
investment officer may purchase legally issued general
obligations of the United States and of the agencies and
instrumentalities of the United States if the seller of the
obligations agrees to repurchase the obligations within 90 days
following the date on which the investment officer makes the
investment. The price paid by the investment officer for such
obligations may not exceed amounts or percentages prescribed by
written policy of the Oregon Investment Council or the Oregon
Short Term Fund Board created by ORS 294.885.
(4) Investments and commitments of the investment pool which do
not conform to the quality or maturity requirements set forth in
ORS 294.805 to 294.895 shall be liquidated by the investment
officer once the market value of such investments and commitments
reaches book value, or as soon as is practicable thereafter.
SECTION 15. ORS 294.882 is amended to read:
294.882. (1) It is recognized that a time may come when the
interest of local governments diminishes to the extent that
participation in the local government investment pool no longer
warrants its operation as a separate fund. If the local
government investment pool decreases to a level below $125
million, the State Treasurer may transfer the assets of the pool
to the state investment fund established under ORS 293.701
{ - (2)(o) - } { + (2)(n) + }. In that event, the local
government investment pool participant accounts will be treated
as are other state funds and accounts in receiving a
proportionate share of the earnings of that investment fund.
Notwithstanding ORS 294.860, 294.865, 294.870, 294.875 or
294.880, when the State Treasurer transfers the assets of the
local government investment pool to the state investment fund,
the distributions of income to local governments, payment of
related expenses and the reporting, program examination and audit
functions with respect to the investment pool participant
accounts shall be administered in accordance with ORS 293.718,
293.751, 293.756, 293.761, 293.766, 293.771, 293.776 and 293.820.
(2) The State Treasurer, at the discretion of the treasurer may
reestablish the local government investment pool as a separate
fund, if the participant accounts increase to over $125 million
and in the State Treasurer's judgment, sufficient interest by
local government exists to insure the local government investment
pool will remain over $125 million. Prior to reestablishing the
pool as a separate fund, the State Treasurer shall first present
a plan for operation, including the reasons for such action, to
the Oregon Investment Council at a regularly scheduled meeting
for its review and comment. The State Treasurer shall publish
notice in the Secretary of State's administrative rules bulletin
of the treasurer's intent to reestablish the pool as a separate
fund at least 30 days prior to the meeting at which the Oregon
Investment Council shall review the proposal, and notice of the
meeting time and location of the Oregon Investment Council at
which the proposal will be discussed.
SECTION 16. ORS 294.895 is amended to read:
294.895. The Oregon Short Term Fund Board shall:
(1) Advise the Oregon Investment Council and the investment
officer in the management of the investment pool and in the
investment of all funds defined in ORS 293.701 { - (2)(p) - }
{ + (2)(o) + } and invested pursuant to ORS 293.721.
(2) Review the rules promulgated by the investment officer as
authorized under ORS 294.825 (4).
(3) Consult with the council and the investment officer on any
matter relating to the investment and reinvestment of funds in
the investment pool and on any matter relating to the investment
or reinvestment of funds defined in ORS 293.701 { - (2)(p) - }
{ + (2)(o) + } and invested pursuant to ORS 293.721.
SECTION 17. ORS 311.780 is amended to read:
311.780. (1) Upon receipt of the notification from the
Department of Revenue of the amount deferred on tax deferred
property under ORS 311.740 to 311.780, the State Treasurer shall
pay to the respective county tax collectors an amount equivalent
to the full amount of tax listed by the department less three
percent thereof.
(2) The department shall maintain accounts for each deferred
property and shall accrue interest on the gross amount of taxes
advanced.
(3) The funds provided for the payment made pursuant to
subsection (1) of this section shall be made as investments from
the excess funds mentioned in ORS 293.701 { - (2)(o) - } { +
(2)(n) + }.
SECTION 18. ORS 317.057 is amended to read:
317.057. (1) As used in this section:
(a) 'Extranational institution' has the meaning given that term
in ORS 706.008;
(b) 'Foreign association' means { - a foreign association as
defined in ORS 722.004 or a federal association as defined in ORS
722.004, - } { + a corporation organized to transact savings
and loan business under federal law or under the laws of another
state or territory of the United States, + } the home state { +
or territory + } of which is a state { + or territory + } other
than Oregon; and
(c) 'Out-of-state bank' has the meaning given that term in ORS
706.008.
(2) Except as provided in this section and ORS 713.300, an
out-of-state bank, extranational institution or foreign
association described in ORS 713.300, that engages in activities
authorized under ORS 713.300, is not subject to any tax, license
fee or charge for the privilege of doing business in this state
or to any tax measured by net or gross income.
(3) If the out-of-state bank, extranational institution or
foreign association acquires any property given as security for a
mortgage or trust deed, all income accruing to the out-of-state
bank, extranational institution or foreign association solely
from the ownership, sale or other disposition of such property is
subject to taxation in the same manner and on the same basis as
income of corporations doing business in this state.
SECTION 19. ORS 317.147 is amended to read:
317.147. (1) As used in this section:
(a) 'Farmworker housing' has the meaning given that term in ORS
315.163.
(b) 'Lending institution' means a bank, mortgage banking
company, trust company, savings bank, { - savings and loan
association, - } credit union, national banking association,
federal savings and loan association, federal credit union
maintaining an office in this state, nonprofit community
development financial institution or nonprofit public benefit
corporation operating as a lending institution.
(2)(a) A lending institution shall be allowed a credit against
the taxes otherwise due under this chapter for the tax year equal
to 50 percent of the interest income earned during the tax year
on loans to finance only costs directly associated with
construction or rehabilitation of farmworker housing if, at the
time the loan is made, the borrower certifies, to the
satisfaction of the lender, that upon completion of the
construction or rehabilitation and first occupation by
farmworkers, the housing will comply with all occupational safety
or health laws, rules, regulations and standards applicable for
farmworker housing and that the housing will be occupied only by
farmworkers and their immediate families.
(b) A copy of the certification described under paragraph (a)
of this subsection shall be submitted to the Department of
Revenue at the time that a credit under this section is first
claimed.
(3) The credit allowed under this section applies only to loans
to construct or rehabilitate farmworker housing located within
this state.
(4) This credit applies only to loans made on or after January
1, 1990.
(5) The credit allowed in any one year may not exceed the tax
liability of the taxpayer.
(6) If the loan has a term of longer than 10 years, then the
credit shall be allowed only for the tax year of the taxpayer
during which the loan is made and the nine tax years immediately
following.
(7) The credit allowed under this section does not apply to
loans in which the interest rate charged exceeds 13-1/2 percent
per annum.
(8) The credit allowed under this section applies only to
interest income from the loan and does not apply to any other
loan fees or other charges collected by the lending institution
with respect to the loan.
(9) The credit allowed under this section applies only to
interest income actually collected by the lending institution
during the tax year.
(10)(a) Except as provided in paragraph (b) of this subsection,
if the lending institution sells the loan to another lending
institution, then the credit shall pass to the assignee or
transferee of the loan, subject to the same conditions and
limitations as set forth in this section.
(b) A lending institution may assign, sell or otherwise
transfer the loan to another person and retain the right to claim
the credit granted under this section if the lending institution
also retains responsibility for servicing the loan.
(c)(A) A lending institution that is not subject to taxation
under this chapter may sell or otherwise transfer the credit
allowed to the lending institution under this section to a
taxpayer that is subject to taxation under this chapter.
(B) A transferee of a credit under this section shall be
allowed the credit for the tax years that would have been
allowable to the transferor had the transfer not occurred.
(C) The Department of Revenue shall by rule establish
procedures for transferring a credit under this section.
SECTION 20. ORS 399.240 is amended to read:
399.240. (1) As used in this section:
(a) 'Interest' includes service charges, renewal fees or other
charges or fees associated with an obligation or liability.
(b) 'Service member' means:
(A) A member of the organized militia who is called into active
service of the state by the Governor under ORS 399.065 (1) for 30
or more consecutive days.
(B) A member of the Oregon National Guard who is called into
active federal service under Title 10 of the United States Code.
(2) Notwithstanding ORS 82.010, 83.095, 708A.255,
{ - 722.354, - } 723.502, 723.730 and 725.340, an obligation or
liability bearing interest at a rate in excess of six percent per
year incurred by a service member before being called into active
service may not, during any part of the period of active service,
bear interest in excess of six percent per year except by court
order.
(3) The service member shall provide written notice to the
creditor requesting that the rate of interest be reduced to six
percent per year and shall include proof of the official orders
showing that the service member is being called into active
service of the state by the Governor under ORS 399.065 (1) or
into active federal service under Title 10 of the United States
Code.
(4) A creditor that receives a request under subsection (3) of
this section to reduce a rate of interest may apply to the court
for a determination that the ability of a service member to pay
interest on an obligation or liability at a rate in excess of six
percent per year is not materially affected because of the active
service of the member. If a court determines that the ability of
a service member to pay interest on an obligation or liability at
a rate in excess of six percent per year is not materially
affected because of the active service of the member, the court
may order an interest rate that is just.
(5) A creditor must recompute the payment schedule to amortize
the balance of the obligation or liability over the remainder of
the obligation or liability at a rate of interest determined
under subsection (2) or (4) of this section.
SECTION 21. ORS 456.548 is amended to read:
456.548. As used in ORS 456.548 to 456.725, unless the context
requires otherwise:
(1) 'Bonds' means any bonds, as defined in ORS 286A.001, or any
other evidence of indebtedness, issued under ORS 456.515 to
456.725 or issued in anticipation of bonds and payable from the
proceeds of bonds issued.
(2) 'Capital reserve account' or 'capital reserve accounts'
means one or more of the special trust accounts that may be
established by the Housing and Community Services Department
within the Housing Finance Fund.
(3) 'Consumer housing cooperative' means a cooperative
corporation formed under ORS chapter 62 and whose articles of
incorporation provide, in addition to the other requirements of
ORS chapter 62, that:
(a) The consumer housing cooperative has been organized
exclusively to provide housing facilities for persons and
families of lower income and such social, recreational,
commercial and communal facilities as may be incidental to such
housing facilities.
(b) All income and earnings of the consumer housing cooperative
shall be used exclusively for consumer housing cooperative
purposes and that no unreasonable part of the net income or net
earnings of the cooperative shall inure to the benefit or profit
of any private individual, firm, corporation, partnership or
association.
(c) The consumer housing cooperative is in no manner controlled
or under the direction of or acting in the substantial interest
of any private individual, firm, corporation, partnership or
association seeking to derive profit or gain therefrom or seeking
to eliminate or minimize losses in any transaction therewith,
except that such limitation shall apply to the members of the
cooperative only to the extent provided by rules of the
department.
(d) The operations of the consumer housing cooperative may be
supervised by the department and that the consumer housing
cooperative shall enter into such agreements with the department
as the department may require to provide regulation by the
department of the planning, development and management of any
housing project undertaken by the cooperative and the disposition
of the property and other interests of the cooperative.
(4) 'Development costs' means the costs that have been approved
by the department as appropriate expenditures and includes, but
is not limited to:
(a) Payments for options to purchase property for the proposed
housing project site, deposits on contracts of purchase, payments
for the purchase of property as approved by the department,
legal, organizational and marketing expenses including payment of
attorney fees, managerial and clerical staff salaries, office
rent and other incidental expenses, payment of fees for
preliminary feasibility studies, advances for planning,
engineering and architectural work;
(b) Expenses for surveys as to need and market analyses; and
(c) Such other expenses incurred by the qualified housing
sponsor as the department may deem necessary under ORS 456.548 to
456.725.
(5) 'Federally insured security' means an evidence of
indebtedness insured or guaranteed as to repayment of principal
and interest by the United States or an agency or instrumentality
thereof.
(6) 'Housing development' means a development that contains
housing units for persons or families of lower income and such
other incidental elements of residential, commercial,
recreational, industrial, communal or educational facilities as
the department determines improve the quality of the development
as it relates to housing for persons or families of lower income
and the financial feasibility of the development.
(7) 'Housing finance bond declaration' means a written
instrument signed by the Director of the Housing and Community
Services Department and on file with and bearing the certificate
of approval of the State Treasurer or the designee of the State
Treasurer, and all housing finance bond declarations supplemental
to that instrument.
(8) 'Housing Finance Fund' means the Housing Finance Fund
established in ORS 456.720 (1).
(9) 'Lending institution' means any bank, mortgage banking
company, trust company, savings bank, { - savings and loan
association, - } credit union, national banking association,
federal savings and loan association or federal credit unit
maintaining an office in this state, or any insurance company
authorized to do business in this state.
(10) 'Limited dividend housing sponsor' means a corporation,
trust, partnership, association or other entity, or an individual
that is a mortgagor.
(11) 'Manufactured dwelling park nonprofit cooperative' has the
meaning given that term in ORS 62.803.
(12) 'Manufactured housing' means a dwelling unit manufactured
off-site having a minimum width of 10 feet and a minimum area of
400 square feet built on a permanent chassis and designed to be
used for permanent residential occupancy whether or not on a
permanent foundation, and that contains permanent eating,
cooking, sleeping and sanitary facilities and meets such
standards as the department determines, by rule, are reasonable
to maintain the quality, safety and durability of the dwelling,
the sanitary requirements of the communities in which they are
located and the security of the loans that the department may
finance for the purchase of the dwellings.
(13) 'Nonprofit housing corporation' means an organization
formed under ORS chapter 65 and whose articles of incorporation
provide, in addition to the other requirements of ORS chapter 65,
that:
(a) The corporation has been organized exclusively to provide
housing facilities for persons and families of lower income and
such other social, recreational, commercial and communal
facilities as may be incidental to such housing facilities.
(b) All the income and earnings of the corporation shall be
used exclusively for corporation purposes and that no part of the
net income or net earnings of the corporation may inure to the
benefit of any private individual, firm, corporation, partnership
or association.
(c) The corporation is in no manner controlled or under the
direction or acting in the substantial interest of any private
individual, firm, partnership or association seeking to derive
profit or gain therefrom or seeking to eliminate or minimize
losses in transactions therewith.
(d) The operations of the corporation may be supervised by the
department and that the corporation shall enter into such
agreements with the department as the department may require to
regulate the planning, development and management of any housing
project undertaken by the corporation and the disposition of the
property and other interests of the corporation.
(14) 'Person of lower income' or 'family of lower income '
means:
(a) A person or family residing in this state whose income is
not more than 80 percent of area median income, adjusted for
family size, as determined by the State Housing Council based
upon information from the United States Department of Housing and
Urban Development;
(b) A person or family residing in this state whose income,
adjusted for family size, is below the level the Housing and
Community Services Department has determined to be necessary in
order to obtain in the open market decent, safe and sanitary
housing, including the cost of utilities and taxes, for not more
than 25 percent of the gross income of the person or family; or
(c) Any person or family the department determines is
appropriate to treat as a person of lower income or a family of
lower income incidental to the accomplishment of department
programs for persons and families of lower income described in
paragraphs (a) and (b) of this subsection.
(15) 'Project cost' or 'costs of the project' means the sum of
all reasonable expenses incurred by a qualified housing sponsor
in undertaking and completing a housing project approved by the
department. 'Project costs' or 'costs of the project ' include
but are not limited to the expenses incurred by a qualified
housing sponsor for:
(a) Studies and surveys;
(b) Plans, specifications, architectural and engineering
services;
(c) Legal, organizational and other special services;
(d) Financing, acquisition, demolition, construction, equipment
and site development of new and rehabilitated housing units;
(e) Movement of existing buildings to new sites; the cost of
acquisition, or estimated fair market value, of land and other
interests in real estate;
(f) Rehabilitation, reconstruction, repair or remodeling of
existing buildings;
(g) Estimated carrying charges during construction and for a
reasonable period thereafter;
(h) Placement of tenants or occupants and relocation services
in connection with the housing project;
(i) Reasonable builder's or sponsor's profit and risk
allowance; and
(j) Development costs not otherwise included in this
subsection.
(16) 'Qualified housing sponsor' includes, subject to the
approval of the department:
(a) A consumer housing cooperative;
(b) A limited dividend housing sponsor;
(c) A nonprofit housing corporation;
(d) A for-profit housing sponsor including, but not limited to,
an individual operating in compliance with the criteria adopted
by the department under ORS 456.620 (1);
(e) A housing authority created by ORS 456.075;
(f) An urban renewal agency created by ORS 457.035; and
(g) Any city or county governing body or agency or department
designated by the governing body.
(17) 'Residential housing' means a specific work or improvement
within this state undertaken primarily to provide dwelling
accommodations, including land development and acquisition,
construction or rehabilitation of buildings and improvements
thereto, for residential housing, and such other nonhousing
facilities as may be incidental or appurtenant thereto and as the
department determines improve the quality of the development as
it relates to housing for persons or families of lower income and
the financial feasibility of the development. ' Residential
housing' includes, but is not limited to, a specific work or
improvement within this state undertaken to provide mobile home
or manufactured dwelling parks as defined in ORS 446.003. As used
in this subsection, 'land development ' includes, but is not
limited to, the improvement of streets and alleys and the
construction of surface drains, sewers, curbing and sidewalks.
(18) 'Residential loan' means any of the following:
(a) A loan that is for the acquisition, construction,
improvement or rehabilitation of residential housing and, if the
loan is for acquisition or construction of residential housing,
that is secured by a first lien on real property located in the
state and:
(A) Improved by a newly constructed, existing or rehabilitated
residential structure for persons or families of lower income; or
(B) Unimproved if the proceeds of such loan shall be used for
the erection of a residential structure thereon, whether or not
such loan is insured or guaranteed by the United States or any
instrumentality or agency thereof.
(b) An insured or guaranteed loan for the acquisition of
manufactured housing or for the acquisition of a lot described in
ORS 92.840 by a manufactured dwelling park tenant.
(c) A loan for the purchase of a proprietary lease and related
cooperative shares in a housing cooperative formed under ORS
chapter 62 secured by a security interest of first priority and a
pledge or an assignment of proprietary leases and related
cooperative shares.
(19) 'Revolving account' means the Housing and Community
Services Department Revolving Account created in ORS 456.574.
SECTION 22. ORS 458.670, as amended by section 16, chapter 45,
Oregon Laws 2008, is amended to read:
458.670. As used in this section and ORS 458.675 to 458.700,
unless the context requires otherwise:
(1) 'Account holder' means a resident of this state who:
(a) Is 12 years of age or older;
(b) Is a member of a lower income household; and
(c) Has established an individual development account with a
fiduciary organization.
(2) 'Fiduciary organization' means an organization selected
under ORS 458.695 to administer state moneys directed to
individual development accounts and that is:
(a) A nonprofit, fund raising organization that is exempt from
taxation under section 501(c)(3) of the Internal Revenue Code as
amended and in effect on December 31, 2007; or
(b) A federally recognized Oregon Indian tribe that is located,
to a significant degree, within the boundaries of this state.
(3) 'Financial institution' means:
(a) An organization regulated under ORS chapters 706 to 716
{ - , 722 - } or 723; or
(b) In the case of individual development accounts established
for the purpose described in ORS 458.685 (1)(c), a financial
institution as defined in ORS 348.841.
(4) 'Individual development account' means a contract between
an account holder and a fiduciary organization, for the deposit
of funds into a financial institution by the account holder, and
the deposit of matching funds into the financial institution by
the fiduciary organization, to allow the account holder to
accumulate assets for use toward achieving a specific purpose
approved by the fiduciary organization.
(5) 'Lower income household' means a household having an income
equal to or less than 80 percent of the median household income
for the area as determined by the Housing and Community Services
Department. In making the determination, the department shall
give consideration to any data on area household income published
by the United States Department of Housing and Urban Development.
(6) 'Resident of this state' has the meaning given that term in
ORS 316.027.
SECTION 23. ORS 646A.628 is amended to read:
646A.628. Notwithstanding ORS 705.145 (2), (3) and (5), the
Director of the Department of Consumer and Business Services can
allocate as deemed appropriate the moneys derived pursuant to ORS
646A.252 to 646A.270, 650.005 to 650.100, 697.005 to 697.095,
697.602 to 697.842, 705.350 and 717.200 to 717.320 and 731.804
and ORS chapters 59, 645, 706 to 716, { - 722, - } 723, 725
and 726 to implement ORS 646A.600 to 646A.628.
SECTION 24. ORS 705.137 is amended to read:
705.137. (1) Except as provided in subsection (3) of this
section, any document, material or other information that is in
the possession or control of the Department of Consumer and
Business Services for the purpose of administering ORS 646A.250
to 646A.270, 697.005 to 697.095, 697.602 to 697.842, 717.200 to
717.320, 717.900 and 717.905 { - , - } { + and + } ORS
chapters 59, { - 722, - } 723, 725 and 726, the Bank Act and
the Insurance Code and that is described in statute as
confidential or as not subject to disclosure is not subject to
disclosure under ORS 192.410 to 192.505, is not subject to
subpoena and is not subject to discovery or admissible in
evidence in any private civil action. The Director of the
Department of Consumer and Business Services may use such
confidential documents, materials or other information in
administering ORS 646A.250 to 646A.270, 697.005 to 697.095,
697.602 to 697.842, 717.200 to 717.320, 717.900 and 717.905
{ - , - } { + and + } ORS chapters 59, { - 722, - } 723,
725 and 726, the Bank Act and the Insurance Code and in the
furtherance of any other regulatory or legal action brought as a
part of the director's duties.
(2) Any document, material or other information to which
subsection (1) of this section applies is subject to the public
officer privilege described in ORS 40.270.
(3) In order to assist in the performance of the director's
duties, the director:
(a) May authorize the sharing of confidential documents,
materials and other information subject to subsection (1) of this
section as appropriate among the administrative divisions and
staff offices of the department created under ORS 705.115 for the
purpose of administering and enforcing the statutes referred to
in subsection (1) of this section, in order to enable the
administrative divisions and staff offices to carry out their
functions and responsibilities.
(b) May share documents, materials and other information,
including the confidential documents, materials and other
information that is subject to subsection (1) of this section or
that is otherwise confidential under ORS 192.501 or 192.502, with
other state, federal, foreign and international regulatory and
law enforcement agencies and with the National Association of
Insurance Commissioners and its affiliates or subsidiaries, if
the recipient agrees to maintain the confidentiality of the
documents, materials and other information.
(c) May receive documents, materials and other information,
including otherwise confidential documents, materials and other
information, from state, federal, foreign and international
regulatory and law enforcement agencies and from the National
Association of Insurance Commissioners and its affiliates or
subsidiaries. The director shall maintain as confidential as
provided in this section any such document, material or other
information received upon notice or with an understanding that it
is confidential or privileged under the laws of the jurisdiction
that is the source of the document, material or other
information.
(4) Neither disclosure of documents, materials or other
information to the director under this section nor the sharing of
documents, materials or other information as authorized in
subsection (3) of this section waives any applicable privilege or
claim of confidentiality in the documents, materials or other
information.
(5) This section does not prohibit the director from releasing
final, adjudicated actions, including suspensions or revocations
of certificates of authority or licenses, when the actions are
otherwise open to public inspection, to a database or other
clearinghouse service maintained by the National Association of
Insurance Commissioners or its affiliates or subsidiaries.
SECTION 25. ORS 705.635 is amended to read:
705.635. (1) A person may submit a written request for a
certificate from the Director of the Department of Consumer and
Business Services for purposes of complying with the provisions
of ORS 56.023. The request shall provide such information as the
director may require by rule or order.
(2) Upon receiving a request for a certificate under subsection
(1) of this section, the director shall within 10 business days
determine whether the requested name and intended activity are in
compliance with the provisions of the Bank Act and ORS chapters
59, 645, 705, 717, { - 722, - } 725 and 726.
(3)(a) If the director determines that use of the requested
name or intended activity is in compliance with the Bank Act and
ORS chapters 59, 645, 705, 717, { - 722, - } 725 and 726, the
director shall issue a written certificate.
(b) If the director determines that use of the requested name
or intended activity is not in compliance with the Bank Act and
ORS chapters 59, 645, 705, 717, { - 722, - } 725 and 726, the
director shall promptly notify the requester in writing, who may:
(A) Amend the name or activity and submit a written request to
the director for reconsideration; or
(B) Request that the director conduct an administrative
hearing. The hearing shall be conducted as a contested case
hearing pursuant to ORS chapter 183.
SECTION 26. ORS 705.638 is amended to read:
705.638. (1) For purposes of this section, 'company' means a
corporation, nonprofit corporation, cooperative, limited
liability company, partnership, limited liability partnership,
limited partnership, business trust, association or other
business entity.
(2) A company organized under the laws of this state for the
purposes of conducting a banking business as defined in ORS
706.005 (6) either within or outside this state shall be
organized under ORS chapter 707.
{ - (3) A company organized under the laws of this state to
transact savings and loan business as defined in ORS 722.004 (25)
either within or outside this state shall be organized under ORS
chapter 722. - }
SECTION 27. ORS 705.640 is amended to read:
705.640. (1) Whenever the Director of the Department of
Consumer and Business Services has reason to believe that a
person is violating { - any - } { + a + } provision of ORS
705.638, 707.005 { - , - } { + or + } 707.010 { - or
722.012 - } , the director:
(a) Shall have access to the premises where { - that - }
{ + the + } person is suspected of transacting banking business
in violation of ORS 705.638, 707.005 { - , - } { + or + }
707.010 { - or 722.012 - } or where { - that - } { +
the + } person may have books, accounts and records; and
(b) Shall have the power to examine, copy or take possession of
the books, accounts and records of { - that - } { + the + }
person in order to ascertain whether or not { - that - } { +
the + } person has violated or is violating any provision of ORS
705.638, 707.005 { - , - } { + or + } 707.010 { - or
722.012 - } .
(2) If a person refuses to grant access to the premises or
refuses to comply with the provisions of subsection (1) of this
section, the director may apply for an order { - from a court
having jurisdiction over the matter requiring - } { + to
require + } compliance with the provisions of subsection (1) of
this section { + from a court that has jurisdiction over the
matter + }.
(3) When the director believes, from evidence satisfactory to
the director, that { - any - } { + a + } person is violating
the provisions of ORS 705.638, 707.005 { - , - } { + or + }
707.010 { - or 722.012 - } , the director may:
(a) Issue an order finding the person in violation, directing
the person to cease and desist from the violation and assessing a
penalty equal to the costs of investigation plus $1,000, but not
exceeding $5,000; and
(b) Publish notice of { - any - } { + an + } order issued
by the director pursuant to paragraph (a) of this subsection.
(4) An order under this section remains in effect until
{ - it is withdrawn by - } the director or { - by - } a
court { - of competent jurisdiction - } { + withdraws the
order + }.
SECTION 28. ORS 705.642 is amended to read:
705.642. (1) Whenever { - it appears to - } the Director of
the Department of Consumer and Business Services { +
determines + } that a person has engaged, is engaging or is about
to engage in an act or practice constituting a violation of
{ - any of the provisions - } { + a provision + }of ORS
705.638, 707.005 { - , - } { + or + } 707.010 { - or
722.012 - } or any rule or order of the director, the director
may bring suit in the name of or on behalf of the State of Oregon
in the circuit court of any county of this state to enjoin the
acts or practices and to enforce compliance with the provisions
of ORS 705.638, 707.005 { - , - } { + or + } 707.010 { - or
722.012 - } or { - such - } { + the + } rule or order. Upon
a proper showing, the court shall grant a permanent or temporary
injunction, restraining order or writ of mandamus. The court may
fine the person against whom the order is entered not more than
$20,000 for each violation, which shall be entered as a judgment
and paid to the General Fund of the State Treasury. Each
violation is a separate offense. In the case of a continuing
violation, each day's continuance is a separate violation, but
the maximum penalty for { - any - } { + a + } continuing
violation { - shall - } { + may + } not exceed $100,000. If
the court finds that the defendant has violated { - any - }
{ + a + } provision of ORS 705.638, 707.005 { - , - }
{ + or + } 707.010
{ - or 722.012 or any - } { + or a + } rule or order, the
court may appoint a receiver, who may be the director, for the
defendant or the defendant's assets. The court may not require
the director to post a bond. The court may award reasonable
attorney fees to the director if the director prevails in an
action under this section. The court may award reasonable
attorney fees to a defendant who prevails in an action under this
section if the court determines that the director had no
objectively reasonable basis for asserting the claim or no
reasonable basis for appealing an adverse decision of the trial
court.
(2) The director may include either of the following in any
action authorized by subsection (1) of this section:
(a) A claim for restitution or damages on behalf of the persons
injured by the act or practice constituting the subject matter of
the action. The court shall have jurisdiction to award
appropriate relief to such persons, if the court finds that
enforcement of the rights of such persons by private civil
action, whether by class action or otherwise, would be so
burdensome or expensive as to be impractical.
(b) A claim for disgorgement of illegal gains or profits
derived. Any recovery under this paragraph { - shall - } { +
must + } be turned over to the General Fund of the State Treasury
unless the court requires { - other - } { + another + }
disposition.
SECTION 29. ORS 706.515 is amended to read:
706.515. (1) The Director of the Department of Consumer and
Business Services may enter into cooperative, coordinating and
information sharing agreements with { - any - } other bank
supervisory agencies { + , with federal agencies within the
United States Treasury Department that coordinate information and
law enforcement under the USA PATRIOT Act of 2001, P.L. 107-56,
115 Stat. 272, + } or { + with + }
{ - any - } { + an + } organization affiliated with or
representing one or more bank supervisory agencies { + . The
director may enter into the agreements in order to examine or
supervise a non-Oregon institution branch or other office or
place of business located in this state or to examine or
supervise a branch of a banking institution located in another
state. + } { - with respect to the periodic examination or
other supervision of any branch or other office or place of
business in this state of any non-Oregon institution, or any
branch of a banking institution located in any other state. The
director may accept such supervisory agencies' reports of
examination and reports of investigation in lieu of conducting
the director's own examinations or investigations. - } { + The
director may accept an agency report made pursuant to an
agreement entered into under this section in lieu of the
director's own examination or investigation. + } The agreement
may resolve conflicts of laws and specify the manner in which
examination, supervision and application processes
{ - shall - } { + will + } be coordinated between this state
and the home state of the non-Oregon institution.
(2) The director may enter into { - contracts - } { + a
contract + } with
{ - any - } { + a + } bank supervisory agency that has
concurrent jurisdiction over a banking institution or non-Oregon
institution operating a branch or other office or place of
business in this state { - , - } to engage the services of
{ - such - } { + the + } agency's examiners at a reasonable
rate of compensation { - , - } or to provide the services of
the director's examiners to { - such - } { + the + } agency
at a reasonable rate of compensation. { - Any such - } { +
The + } contract { - shall be deemed - } { + is + } exempt
from competitive bidding requirements under the provisions of
{ - ORS 279.835 to 279.855 and - } ORS chapters 279A and 279B.
The contract may resolve conflicts of laws and specify the manner
in which examination, supervision and application processes
{ - shall - } { + will + } be coordinated between this state
and the home state of the non-Oregon institution.
(3) The director may enter into joint examinations or joint
enforcement actions with other bank supervisory agencies
{ - having - } { + that have + } concurrent jurisdiction over
{ + a non-Oregon institution branch or other office or place of
business located in this state or a branch of a banking
institution located in another state. + }
{ - any branch or other office or place of business in this
state of a non-Oregon institution, or any branch of a banking
institution located in any other state, provided that the
director may at any time take such actions independently if the
director deems such actions to be necessary or appropriate to
carry out the director's responsibilities or to ensure compliance
with the laws of this state, but provided further, that in the
case of a non-Oregon institution, the director shall
recognize: - } { + Conducting a joint examination or
enforcement action under this section does not prevent the
director from conducting an independent examination or
enforcement action at any time if the director determines that
carrying out the director's responsibilities or ensuring
compliance with the laws of this state requires the independent
action. With respect to examinations or enforcement actions that
involve non-Oregon institutions, the director shall
recognize: + }
(a) The exclusive authority of the banking supervisory agency
of the home state or country of the non-Oregon institution over
corporate governance matters; and
(b) The primary responsibility of the banking supervisory
agency of the home state or country of the non-Oregon institution
over safety and soundness matters.
(4) { - Any fees collected by - } The director { + may
share fees collected + } from non-Oregon institutions under the
provisions of the Bank Act { - may be shared - } with
{ - other - } { + another + } bank supervisory
{ - agencies - } { + agency + } or { - any - } { + an + }
organization affiliated with or representing one or more bank
supervisory agencies in accordance with agreements between
{ - such parties - } { + the agency or organization + } and
the director.
SECTION 30. ORS 706.530 is amended to read:
706.530. { + (1) + } Each banking institution and each
non-Oregon institution shall pay each year to the Director of the
Department of Consumer and Business Services the fee
{ - determined by reference to the schedule adopted by the
director under ORS 705.620. - } { + set in a schedule the
director adopts by rule. + } The fee shall be paid by the date
set by the director in the rule establishing the schedule.
{ + (2) The director shall set or change the fee schedule
described in subsection (1) of this section after considering:
(a) The amount of other moneys available for the director to
use in performing the director's duties;
(b) The costs the director will incur in performing the
director's duties in the year in which the director will collect
the fee; and
(c) The amount the director needs to establish and maintain a
reasonable emergency fund. + }
SECTION 31. ORS 706.720 is amended to read:
706.720. (1) The Director of the Department of Consumer and
Business Services shall receive and file in the Department of
Consumer and Business Services all reports required by the Bank
Act.
(2) Except as provided in subsection (3) of this section and
ORS 706.730, the records of the Department of Consumer and
Business Services pertaining to the administration of the Bank
Act are available for public inspection unless the director
determines in { - the - } { + a + } particular instance that
{ - the public interest in disclosure of the records is
outweighed by the interests of - } an Oregon operating
institution or { - its - } { + the + } directors,
stockholders, officers, employees and customers { + of the
Oregon operating institution have an interest in keeping the
records confidential that outweighs the public interest in
disclosing the records + } { - in keeping the records
confidential - } , or that the records are exempt from disclosure
under ORS 192.501 to 192.505. A determination by the director
under this subsection is subject to review under ORS 192.410 to
192.505.
(3) Except as provided in subsections (4) and (5) of this
section, the following records of the department are exempt from
disclosure or production and shall be treated as confidential as
provided in ORS 705.137:
(a) Examination reports and work papers, directives, orders and
correspondence that relate to examination reports.
(b) { + Financial statements of and + }investigatory
information concerning persons subject to investigation by the
director under ORS 707.070, 707.080, 707.110, 707.140, 707.145,
707.155 or 707.705 { + . + } { - and financial statements of
such persons. - }
(c) Proprietary information.
(d) Reviews of financial statements submitted to the director.
(e) Reports filed under ORS 706.655.
(f) Stockholder lists.
{ + (g) Correspondence, reports or other information obtained
from or provided to federal agencies within the United States
Treasury Department that coordinate information and law
enforcement under the USA PATRIOT Act of 2001, P.L. 107-56, 115
Stat. 272. + }
(4) Notwithstanding subsection (3) of this section, the
director may disclose { - any - } { + a + } record { - of
the department specified in this subsection pertaining - } { +
that is specified in this subsection and that pertains + } to an
Oregon operating institution that has been liquidated under ORS
711.400 to 711.615 if the director determines in { - the - }
{ + a + } particular instance that the public interest in
disclosure of the record outweighs the interests of the Oregon
operating institution or { - its - } { + of the + }
directors, stockholders, officers, employees or customers { + of
the Oregon operating institution + } in keeping the record
confidential. { + The director may not in any circumstances,
however, disclose a record or a portion of a record + }
{ - Under no circumstances, however, shall the director disclose
any such record or portion thereof - } that contains
{ - any - } proprietary information or { - any - }
information
{ - relating to the individual - } { + that relates to an
individual's + } financial activities or affairs { - of
persons - } unless the director concludes that { - those - }
{ + the + } activities or affairs were a direct and substantial
contributing factor in the failure of the Oregon operating
institution. This subsection applies to the following records of
the department:
(a) Examination reports and work papers, directives, orders and
correspondence relating to examination reports;
(b) Investigatory information concerning persons subject to
investigation by the director under ORS 707.070, 707.080,
707.110, 707.140, 707.145, 707.155 or 707.705;
(c) Reviews of financial statements; and
(d) Reports filed under ORS 706.655.
(5) Notwithstanding ORS 40.270, an officer of the department
may be examined concerning records that are exempt from
disclosure under subsection (2) or (3) of this section and ORS
706.730 { + . + } { - and - } The records are subject to
production if the court before which a civil or criminal action
is pending finds that { - such - } { + the + } examination
and production is essential for establishing a claim or defense.
In making a finding under this subsection, if the court views the
records, the court shall do so in camera.
(6) A civil penalty imposed by the director under the Bank Act
shall become subject to public inspection after the 20th day
after the director imposes the civil penalty.
(7) All records of the department pertaining to the condition
of Oregon operating institutions may be furnished to:
(a) The Federal Reserve Bank and { - its - } examiners { +
from the Federal Reserve Bank + }.
(b) The Comptroller of the Currency of the United States and
national bank examiners.
(c) The Federal Deposit Insurance Corporation and { - its - }
examiners { + from the Federal Deposit Insurance
Corporation + }.
(d) The Federal Home Loan Bank of which the operating
institution is a member or to which the operating institution has
applied for membership.
(e) The State Treasurer if the Oregon operating institution is
or has applied to become a depository of public fund deposits.
(f) { - Any - } { + A + } supervisory authority that
regulates financial institutions, financial holding companies or
bank holding companies.
(g) The respective Oregon operating institution, or the
financial holding company or bank holding company that controls
an Oregon operating institution.
(8) The director shall prescribe and furnish to interested
persons the forms for all reports required by the Bank Act.
(9) If the director is requested to disclose any record subject
to this section and the record contains both material that is
exempt from disclosure under this section or any other provision
of law and material that is not exempt from disclosure, the
director shall separate the exempt and nonexempt material and
shall disclose only the nonexempt material.
SECTION 32. 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, - }
{ + a corporation organized to transact savings and loan
business under federal law or under the laws of another state or
territory of the United States, + } the home state { + or
territory + } of which is a state { + or territory + } other
than Oregon.
(2) Subject to subsection (3) of this section, { - any - }
{ + an + } 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 - } { + do + } 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 - }
{ + an activity + } 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 - } { + the + } president, secretary,
treasurer or general manager { + of the bank, institution or
association + }indicating that the bank, institution or
association designates the Director of the Department of Consumer
and Business Services { - its - } { + as the bank's,
institution's or association's + } attorney for service of
process. The out-of-state bank, extranational institution or
foreign association shall pay an initial filing fee of $200 and
an annual fee of $200. The statement shall include the address of
the principal place of business of the out-of-state bank,
extranational institution or foreign association.
(4) The Director of the Department of Consumer and Business
Services, upon receiving service of process as authorized by
subsection (3) of this section, immediately shall forward all
documents served upon the director to the principal place of
business of the out-of-state bank, extranational institution or
foreign association.
(5) The filing requirements of subsection (3) of this section
do not apply to an out-of-state bank or extranational institution
that has obtained a certificate of authority to transact banking
business in this state under ORS 713.020 { + . + } { - , or to a
foreign association that has obtained a certificate of authority
to transact savings and loan business in this state under ORS
722.502. - } Notwithstanding subsection (3) of this section,
{ - such an - } { + the + } 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 - } { + the + } notes and
participate with other lenders authorized to do business in this
state in { - the making of - } { + making + } loans for which
{ - such - } { + the + } 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 - } { +
a + } beneficial interest in a pool of notes secured by mortgages
or trust deeds need not comply with subsection (3) of this
section.
SECTION 33. { + Sections 34 and 35 of this 2009 Act are added
to and made a part of ORS chapter 715. + }
SECTION 34. { + If the Director of the Department of Consumer
and Business Services determines that a financial holding company
or a bank holding company is violating a law or an order the
director issued, is conducting business in an unsafe or
unauthorized manner or has refused to submit records for an
examiner's inspection or examination by the Department of
Consumer and Business Services, the director may:
(1) Notify the Federal Reserve Board of the director's
determination and of the facts and circumstances on which the
director based the determination;
(2) Provide the financial holding company or bank holding
company with:
(a) Notice of the charges that form the basis for the
director's determination that the financial holding company or
bank holding company is violating the law or an order the
director issued or is conducting business in an unsafe or
unauthorized manner; and
(b) An opportunity for a hearing before the director or a
person the director designates on a date and in a place the
director specifies in the notice to the financial holding company
or bank holding company;
(3) Conduct a hearing and make findings with respect to each of
the charges specified in the notice to the financial holding
company or bank holding company under subsection (2) of this
section;
(4) Direct the financial holding company or bank holding
company in a written order to discontinue a practice that the
director finds is a violation of the law or an order the director
issued or is an unsafe or unauthorized manner of conducting
business;
(5) Direct the financial holding company or bank holding
company in a written order to take affirmative action to correct
or remedy a condition that results from a violation of the law or
an order the director issued or from an unsafe or unauthorized
manner of conducting business;
(6) Require the financial holding company or bank holding
company in a written order to guarantee capital levels for a
subsidiary bank that are appropriate for a depository institution
to maintain safe and sound operations;
(7) Apply for and obtain an injunction or other appropriate
order from a court that has jurisdiction over the matter to
enforce an order the director issues under subsection (4), (5) or
(6) of this section; and
(8) Publish notice of an order the director issues under
subsection (4), (5) or (6) of this section. + }
SECTION 35. { + (1) The Director of the Department of Consumer
and Business Services by order may direct the board of directors
of a financial holding company or bank holding company to remove
a director or officer of the financial holding company or bank
holding company:
(a) For any of the reasons for which the Director of the
Department of Consumer and Business Services may refuse to
approve articles of incorporation for or grant a charter to an
institution under ORS 707.145; or
(b) If the director or officer has refused to comply with
written requirements or instructions the Director of the
Department of Consumer and Business Services has issued.
(2) The Director of the Department of Consumer and Business
Services shall issue an order under subsection (1) of this
section in writing and may issue the order without an
administrative hearing. A copy of the order must be served
personally or by certified mail upon the director or officer to
be removed. The order is effective upon receipt and immediately
suspends the director or officer from office in the financial
holding company or bank holding company.
(3) The order shall notify the director or officer suspended
from office under this section that the director or officer has a
right to appeal the order in a contested case hearing under ORS
183.415 to 183.500.
(4) The board of directors of the financial holding company or
bank holding company by resolution shall remove the director or
officer that is subject to an order issued under subsection (1)
of this section and shall declare the office vacant when:
(a) The period in which the director or officer may appeal the
order in a contested case hearing under ORS 183.415 to 183.500
expires; or
(b) The decision in the contested case hearing affirms the
order of the Director of the Department of Consumer and Business
Services.
(5) A director or officer of a financial holding company or
bank holding company who is suspended or removed under this
section may not act in an official capacity, conduct any business
of a subsidiary banking institution or have access to books,
records or assets of the subsidiary banking institution in a
manner accorded to an officer, director or stockholder without
receiving permission from the Director of the Department of
Consumer and Business Services. + }
SECTION 36. ORS 715.055 is amended to read:
715.055. (1) A financial holding company or a bank holding
company of an Oregon stock bank shall submit to the Director of
the Department of Consumer and Business Services { + , + }
{ - copies of all - } { + in a form and format specified by the
director, a copy of specified + } reports that the financial
holding company or the bank holding company is required to submit
to the Federal Reserve Board. The { - copies shall be
submitted - } { + financial holding company or bank holding
company shall submit the copies + } to the director within the
time periods required by applicable federal law and regulation
for { - the filing of the originals - } { + filing the
originals + } with the Federal Reserve Board.
(2) The director may call for additional information from a
financial holding company or a bank holding company, in
{ - such - } { + a + } form { + and format + } { - as - }
{ + that + } the director may prescribe by rule or order, if
the director considers { - it - } { + the additional
information + } necessary in order to obtain full knowledge of
the condition of the Oregon stock bank { - which - } { +
that + } the financial holding company or the bank holding
company controls. The financial holding company or the bank
holding company shall submit the { - report - } { + additional
information + } to the director within the time period prescribed
by the director.
(3) If a financial holding company or a bank holding company
fails to submit a report or additional information as required by
this section, the financial holding company or the bank holding
company shall pay to the director a penalty of up to $1,000 for
each day { - it - } { + the financial holding company or bank
holding company + } fails to comply. If the financial holding
company or the bank holding company delays or refuses to pay the
penalty upon demand by the director, the director may maintain an
action in the director's name against the delinquent financial
holding company or bank holding company for the recovery of the
penalty.
SECTION 37. ORS 717.235 is amended to read:
717.235. (1) Upon the filing of a complete application, the
Director of the Department of Consumer and Business Services
shall review the application and may investigate the financial
condition and responsibility, financial and business experience,
character and general fitness of the applicant. The director may
conduct an on-site investigation of the applicant, the reasonable
cost of which shall be paid by the applicant. The director may
disapprove an application if the director finds that the
applicant:
(a) Is insolvent, either in the sense that the person's
liabilities exceed the person's assets or that the person cannot
meet obligations as they mature, or that the person is in such
financial condition that the person cannot continue in business
with safety to the person's customers;
(b) Has engaged in dishonest, fraudulent or illegal practices
or conduct in any business or profession;
(c) Has willfully or repeatedly violated or failed to comply
with { - any provisions - } { + a provision + } of the Oregon
Bank Act, Oregon Securities Law, { - Savings Association
Act, - } Oregon Credit Union Act, Oregon Consumer Finance Act or
Pawnbrokers Act or any rule or order of the director adopted
under those laws;
(d) Has been convicted of a crime, an essential element of
which is fraud;
(e) Is not qualified to engage in the business of money
transmission on the basis of such factors as training, experience
and knowledge of the business;
(f) Is permanently or temporarily enjoined by a court of
competent jurisdiction from engaging in or continuing any conduct
or practice involving { - any - } { + an + } aspect of the
banking business or of the money transmission business;
(g) Is the subject of an order of the director subjecting the
person to a fine or other civil penalty or removing the person
from an office in any entity regulated by the director; or
(h) Is the subject of an order entered within the past five
years, subjecting the person to a fine or other civil penalty or
removing the person from an office in a state or federally
chartered, licensed or regulated financial services company.
(2) The director may also disapprove an application if the
director finds that { - any - } { + a + } controlling person
is subject to { - any - } { + a + } provision of subsection
(1) of this section except subsection (1)(a) or (e) of this
section. If a controlling person is the sole owner of the
applicant, then the director may disapprove an application if the
director finds that the controlling person is subject to
{ - any - } { + a + } provision of subsection (1) of this
section.
(3) If the director finds that the applicant's business will be
conducted honestly, fairly and in a manner commanding the
confidence and trust of the community, and that the applicant has
fulfilled the requirements imposed by ORS 717.200 to 717.320,
717.900 and 717.905 and has paid the required license fee, the
director shall issue a license to the applicant authorizing the
applicant to conduct money transmission business in this state
for a term of one year. If these requirements have not been met,
the director shall deny the application in writing and shall
describe the reasons for the denial.
(4) An order of the director denying an application under ORS
717.200 to 717.320, 717.900 and 717.905 shall state the grounds
upon which the order is based and shall not become effective for
at least 20 days after written notice of the order has been sent
by registered or certified mail to the applicant at the principal
place of business of the applicant.
(5) Appeals from an order of the director denying an
application may be taken to the courts of this state as provided
by ORS chapter 183.
SECTION 38. ORS 723.014 is amended to read:
723.014. The Director of the Department of Consumer and
Business Services may not issue a certificate of approval under
ORS 723.012 if { - any - } { + a + } person named in the
articles of incorporation submitted for approval:
(1) Is insolvent or bankrupt;
(2) Has engaged in dishonest, fraudulent or illegal practices
or conduct in any business or profession;
(3) Has willfully or repeatedly violated or failed to comply
with { - any - } { + a + } provision of the Oregon Bank Act,
{ - the Savings Association Act, - } the Oregon Credit Union
Act, the Oregon Consumer Finance Act, the Oregon Securities Law,
the Oregon Mortgage Lender Law or the Pawnbrokers Act, or
{ - any - } { + an + } administrative rule or order adopted
{ - pursuant to any such Act - } { + under an Act identified
in this subsection + };
(4) Has been convicted of a crime, an essential element of
which is fraud;
(5) Is not qualified to conduct a credit union business on the
basis of such factors as training, experience and knowledge of
the business;
(6) Is permanently or temporarily enjoined by a court of
competent jurisdiction from engaging in or continuing any conduct
or practice involving any aspect of the credit union business;
(7) Is the subject of an order of the director subjecting the
person to a fine or other civil penalty, or removing the person
from an office in any entity regulated by the director; or
(8) Is the subject of an order { + that was issued by the
regulatory authority of another state, or of the federal
government, with authority over banking institutions, credit
unions, consumer finance companies, savings associations,
securities firms or mortgage lenders, that was + } entered within
the past five years { - subjecting - } { + and that
subjects + } the person to a fine or other civil penalty or
{ - removing - } { + removes + } the person from an office in
a state banking institution, a national bank, a state or federal
credit union, a state or federal savings association or a
consumer finance company, or from a position as a securities
broker or dealer, a state or federal investment adviser or a
mortgage lender { + . + } { - , that was issued by the
regulatory authority of another state, or of the federal
government, with authority over such banking institutions, credit
unions, consumer finance companies, savings associations,
securities firms or mortgage lenders. - }
SECTION 39. ORS 723.114 is amended to read:
723.114. (1) Each credit union shall pay to the Director of the
Department of Consumer and Business Services each year { + a fee
set in a schedule the director adopts by rule. + } { - the fee
determined by reference to the schedule adopted by the director
under ORS 705.620. - } The fee shall be paid by the date set by
the director in the rule establishing the schedule.
(2) In addition to any fee collected under subsection (1) of
this section, whenever the director devotes any extra attention
to the affairs of a credit union, either upon determination by
the director or upon request of the credit union, the fee for the
extra service shall be the actual cost { - thereof - } { + of
the extra service + }.
{ + (3) The director shall set or change the fee schedule
described in subsection (1) of this section after considering:
(a) The amount of other moneys available for the director to
use in performing the director's duties;
(b) The costs the director will incur in performing the
director's duties in the year in which the director will collect
the fee; and
(c) The amount the director needs to establish and maintain a
reasonable emergency fund. + }
SECTION 40. ORS 723.118 is amended to read:
723.118. (1) The Director of the Department of Consumer and
Business Services shall receive and file in the Department of
Consumer and Business Services all reports required under this
chapter.
(2) Except as provided in subsection (3) of this section, the
records of the department pertaining to the administration of
this chapter are available for public inspection unless the
director determines in { - the - } { + a + } particular
instance that { - the public interest in disclosing the records
is outweighed by the interests of - } the credit union or
{ - its - } { + the + } directors, members, officers or
employees { + of the credit union have an interest + } in
keeping the records confidential { + that outweighs the public
interest in disclosing the records + }, or that the records are
exempt from disclosure under ORS 192.501 to 192.505. A
determination by the director under this subsection is subject to
review under ORS 192.410 to 192.505.
(3) Except as provided in subsections (4) and (5) of this
section, the following records of the department are exempt from
disclosure or production and shall be treated as confidential as
provided in ORS 705.137:
(a) Examination reports and work papers, directives, orders and
correspondence that relate to examination reports.
(b) { + Financial statements of and + }investigatory
information concerning persons subject to investigation by the
director under ORS 723.014 or 723.132 { + . + } { - and
financial statements of those persons. - }
(c) Proprietary information.
(d) Reviews of financial statements submitted to the director.
(e) The name of a member or borrower and the amount of shares,
deposits or debts of a member or borrower.
{ + (f) Correspondence, reports or other information obtained
from or provided to federal agencies within the United States
Treasury Department that coordinate information and law
enforcement under the USA PATRIOT Act of 2001, P.L. 107-56, 115
Stat. 272. + }
(4) Notwithstanding subsection (3) of this section and except
as otherwise provided in this subsection, the director may
disclose { - any - } { + a + } record { - of the department
specified in this subsection pertaining - } { + that is
specified in this subsection and that pertains + } to a credit
union that has been liquidated under ORS 723.676 if the director
determines in { - the - } { + a + } particular instance that
the public interest in disclosing the record outweighs the
interests of the credit union or { - its - } { + of the + }
directors, members, officers or employees { + of the credit
union + } in keeping the record confidential. The director may
not disclose { - any - } { + a + } record or portion of a
record that contains { - any - } proprietary information or
{ - any - } information { - relating to the individual - }
{ + that relates to an individual's + } financial activities or
affairs { - of persons - } unless the director concludes that
{ - those - } { + the + } activities or affairs were a direct
and substantial contributing factor in the failure of the credit
union. This subsection applies to the following records of the
department:
(a) Examination reports and work papers, directives, orders and
correspondence that relate to examination reports.
(b) Investigatory information concerning persons subject to
investigation by the director under ORS 723.014 or 723.132.
(c) Reviews of financial statements.
(d) Reports filed under ORS 723.106.
(5) Notwithstanding ORS 40.270, an officer of the department
may be examined concerning records that are exempt from
disclosure under subsection (2) or (3) of this section { + . + }
{ - and - } The records are subject to production if the court
before which a civil or criminal action is pending finds that the
examination and production is essential for establishing a claim
or defense. In making a finding under this subsection, if the
court views the records, the court shall do so in camera.
(6) All records of the department pertaining to the condition
of credit unions may be furnished to:
(a) The National Credit Union Administration.
(b) The Federal Home Loan Bank of which the credit union is a
member or to which the credit union has applied for membership.
(c) The State Treasurer if the credit union is a depository of
public fund deposits.
(d) The respective credit union.
(7) If the director is requested to disclose { - any - }
{ + a + } record subject to this section and the record
contains both material that is exempt from disclosure under this
section or any other provision of law and material that is not
exempt from disclosure, the director shall separate the exempt
and nonexempt material and may disclose only the nonexempt
material.
SECTION 41. ORS 723.136 is amended to read:
723.136. (1) The Director of the Department of Consumer and
Business Services may enter into cooperative, coordinating and
information sharing agreements with { - any other - } { +
another + } credit union supervisory agency { + , with federal
agencies within the United States Treasury Department that
coordinate information and law enforcement under the USA PATRIOT
Act of 2001, P.L. 107-56, 115 Stat. 272, + } or { + with + }
{ - any - } { + an + } organization affiliated with or
representing one or more credit union supervisory agencies { + .
The director may enter into the agreements in order to examine or
supervise a non-Oregon institution branch or other office or
place of business located in this state or to examine or
supervise a branch of a credit union that is chartered in Oregon
and is located in another state. + } { - with respect to the
periodic examination or other supervision of any branch or other
office or place of business in this state of any non-Oregon
institution, or any branch of a credit union that is chartered in
Oregon and is located in any other state. The director may accept
the supervisory agency's reports of examination and reports of
investigation in lieu of conducting the director's own
examinations or investigations. - } { + The director may accept
an agency report made pursuant to an agreement entered into under
this section in lieu of the director's own examination or
investigation. + } The agreement may resolve conflicts of laws
and specify the manner in which examination, supervision and
application processes { - shall - } { + will + } be
coordinated between this state and the home state of the
non-Oregon institution. The director may also share information
with the Federal Home Loan Bank and { - its - } { + the + }
directors { + of the Federal Home Loan Bank + }.
(2) The director may enter into { - contracts - } { + a
contract + } with
{ - any - } { + a + } credit union supervisory agency that
has concurrent jurisdiction over a credit union operating a
branch or other office or place of business in this state
{ - , - } to engage the services of { - such - } { +
the + } agency's examiners at a reasonable rate of compensation
{ - , - } or to provide the services of the director's
examiners to { - such - } { + the + } agency at a reasonable
rate of compensation. { - Any such - } { + The + } contract
{ - shall be deemed - } { + is + } exempt from competitive
bidding requirements under the provisions of { - ORS 279.835 to
279.855 and - } ORS chapters 279A and 279B. The contract may
resolve conflicts of laws and specify the manner in which
examination, supervision and application processes
{ - shall - } { + will + } be coordinated between this state
and the home state of the non-Oregon institution.
(3) The director may enter into joint examinations or joint
enforcement actions with other credit union supervisory agencies
that have concurrent jurisdiction over { + a non-Oregon
institution branch or other office or place of business located
in this state or a branch of a credit union that is chartered in
Oregon and is located in another state. + } { - any branch or
other office or place of business in this state of a non-Oregon
institution, or any branch of a credit union that is chartered in
Oregon and is located in any other state, provided that the
director may at any time take the actions independently if the
director deems the actions to be necessary or appropriate to
carry out the director's responsibilities or to ensure compliance
with the laws of this state. In the case of a non-Oregon
institution, the director may recognize: - } { + Conducting a
joint examination or enforcement action under this subsection
does not prevent the director from conducting an independent
examination or enforcement action at any time if the director
determines that carrying out the director's responsibilities or
ensuring compliance with the laws of this state requires the
independent action. With respect to examinations or enforcement
actions that involve non-Oregon institutions, the director may
recognize: + }
(a) The exclusive authority of the credit union supervisory
agency of the home state of the non-Oregon institution over
corporate governance matters; and
(b) The primary responsibility of the credit union supervisory
agency of the home state of the non-Oregon institution over
safety and soundness matters.
(4) { - Any fees collected by - } The director { + may
share fees collected + } from non-Oregon institutions under the
provisions of this chapter { - may be shared - } with
{ - other - } { + another + } credit union supervisory
{ - agencies - } { + agency + } or { - any - } { + an + }
organization affiliated with or representing one or more credit
union supervisory agencies in accordance with agreements between
{ - such parties - } { + the agency or organization + } and
the director.
SECTION 42. ORS 723.752 is amended to read:
723.752. Any credit union subject to this chapter shall be
deemed an institution for savings within the meaning of the law
that exempts such institutions from taxation. No law, except as
stated in this section, that taxes corporations in any form, or
the shares thereof or the accumulations therein, shall apply to
credit unions doing business in accordance with this chapter
unless the credit unions are specifically named in the law.
{ - However, credit unions subject to this chapter shall be
subject to the same tax as mutual savings and loan
associations. - }
SECTION 43. ORS 725.120 is amended to read:
725.120. (1) Application for { - the - } { + a + }
license { + required under ORS 725.045 + } shall be in writing
in { - the - } { + a + } form prescribed by the Director of
the Department of Consumer and Business Services { + . The
application + } { - and - } shall contain the name and both
the residence and business addresses of { - the - } { + each
individual + } applicant { + , of each member of a partnership or
association that applies for a license and of each officer or
director of a corporation that applies for a license. + } { - ,
and if the applicant is a partnership or association, of every
member thereof, and if a corporation, of each officer and
director thereof. - } The application shall also contain the
county and city with street and number, if any, where the
business is to be conducted and any other information
{ - which - } the director may require.
{ - (2) Notice of the filing of the application shall be
posted in the office of the Department of Consumer and Business
Services for 30 days and no license shall be issued before the
expiration of such 30-day period. However, the director may waive
the posting of notice and issue a license without regard to such
30-day period if the application is for a license at a location
where a license has been surrendered because of: - }
{ - (a) The transfer of the business of the licensee, and the
applicant is the transferee; - }
{ - (b) The death of the licensee, and the applicant is a
representative or heir of the licensee; or - }
{ - (c) The change of the name under which the licensee does
business, and the applicant is the same licensee. - }
{ - (3) - } { + (2) + } An applicant { + , + } at the time
{ - of making application - } { + the applicant applies for a
license under this section, + } shall pay to the director a
license fee determined under ORS 725.185 for the period
terminating on the last day of the current calendar year.
{ - In case the license is not issued for cause or if the
application is withdrawn after the applicant has been
investigated by the director, there shall be refunded to the
applicant all the license fee except any portion thereof
determined by the director to reflect administrative and
investigative costs incurred by the section relative to the
application. Otherwise no part of any license fee shall be
refunded. - } { + If the director denies the applicant a
license for cause or if the applicant withdraws the application
after the director investigates the applicant, the director shall
refund the license fee paid under this subsection, less an amount
that reflects the director's administrative and investigative
costs for the application. + }
SECTION 44. ORS 725.145 is amended to read:
725.145. The Director of the Department of Consumer and
Business Services may disapprove an application for a license if
{ - any - } { + a + } person named in the application
submitted pursuant to ORS 725.120:
(1) Is insolvent, either in the sense that the person's
liabilities exceed the person's assets or that the person cannot
meet the person's obligations as they mature, or is in such
financial condition that the person cannot continue in business
with safety to the person's customers;
(2) Has engaged in dishonest, fraudulent or illegal practices
or conduct in any business or profession;
(3) Has knowingly or repeatedly violated or failed to comply
with any provision of the Oregon Bank Act, { - the Savings
Association Act, - } the Oregon Credit Union Act, the Oregon
Consumer Finance Act or the Pawnbrokers Act, or any
administrative rule or order adopted { - pursuant to any such
Act - } { + under an Act identified in this subsection + };
(4) Has been convicted of a crime, an essential element of
which is fraud;
(5) Is permanently or temporarily enjoined by a court of
competent jurisdiction from engaging in or continuing any conduct
or practice involving { - any - } { + an + } aspect of the
consumer finance business;
(6) Is the subject of an order of the director { - , - }
subjecting the person to a fine or other civil penalty under the
Bank Act { - , - } { + or + } ORS chapter { - 722 or - } 723
or this chapter, or removing the person from an office in any
entity regulated under the Bank Act { - , - } { + or + } ORS
chapter { - 722 or - } 723 or this chapter; or
(7) Is the subject of an order { + that was issued by the
regulatory authority of another state or of the federal
government with authority over banking institutions, savings
associations, credit unions or consumer finance companies, that
was + } entered within the past five years { - , subjecting - }
{ + and that subjects + } the person to a fine or other civil
penalty { - , or removing - } { + or removes + } the person
from an office in a state banking institution, a national bank, a
state or federal savings association, a state or federal credit
union or a consumer finance company { + . + } { - , issued by
the regulatory authority of another state or of the federal
government with authority over such banking institutions, savings
associations, credit unions or consumer finance companies. - }
SECTION 45. ORS 725.185 is amended to read:
725.185. (1) Each licensee shall pay to the Director of the
Department of Consumer and Business Services each year the
license fee { - determined by reference to the schedule adopted
by the director under ORS 705.620. - } { + set in a schedule
the director adopts by rule. + } The fee shall be paid by the
date set by the director in the rule establishing the schedule.
(2) In addition to any license fee collected under subsection
(1) of this section, whenever the director devotes any extra
attention to the affairs of a licensee, either upon determination
by the director or upon request of the licensee, the fee for the
extra service shall be the actual cost { - thereof - } { + of
the extra service + }.
{ + (3) The director shall set or change the fee schedule
described in subsection (1) of this section after considering:
(a) The amount of other moneys available for the director to
use in performing the director's duties;
(b) The costs the director will incur in performing the
director's duties in the year in which the director will collect
the fee; and
(c) The amount the director needs to establish and maintain a
reasonable emergency fund. + }
SECTION 46. ORS 725.340 is amended to read:
725.340. (1) Except as provided in ORS 725.615 and 725.622, a
licensee may:
(a) Charge, contract for and receive in connection with a
consumer finance loan made in accordance with this chapter a
finance charge that, when expressed as an annual percentage rate,
does not exceed the greater of:
(A) 36 percent; or
(B) 30 percentage points in excess of the discount rate on
90-day { + nonfinancial + } commercial paper in effect at the
Federal Reserve Bank { - of San Francisco - } { + in the
Federal Reserve district that includes Oregon + }. The Director
of the Department of Consumer and Business Services on the
{ - first business day of each calendar year - } { + second
Friday of December + } shall determine by order from published
sources { + available on that date + } the discount rate upon
which the annual percentage rate set forth in this subparagraph
will be based { + as of January 1 of the following calendar
year + }. The annual percentage rate set forth in this
subparagraph shall apply to each new loan made during the
succeeding { - 12 months - } { + calendar year + } for the
entire term of the loan, including all renewals of the loan.
(b) Contract for and receive in connection with a consumer
finance loan made in accordance with this chapter, and in
addition to the finance charge described in paragraph (a) of this
subsection, other reasonable and bona fide fees, expenses or
damages, subject to oversight and regulation by the Department of
Consumer and Business Services. For purposes of this paragraph, '
fees, expenses or damages' includes, but is not limited to:
(A) Items exempted from the computation of the finance charge
in accordance with the Truth in Lending Act, 15 U.S.C. 1605(d)
and (e), as that Act existed on July 2, 2007, and similar
pass-through fees or charges;
(B) Prepayment fees and late fees;
(C) Fees and damages in accordance with ORS 30.701;
(D) Actual expenses the licensee reasonably incurs in
collecting a consumer finance loan that the borrower or consumer
has failed to repay according to the terms of the consumer
finance loan contract; and
(E) Amounts associated with the collection of a defaulted loan
that are authorized by statute or awarded by a court of law.
(c) For purposes of this subsection, 'finance charge' and '
annual percentage rate' have the meanings given those terms in
the federal Truth in Lending Act, 15 U.S.C. 1601 et seq.
(2) When a precomputed loan contract is originally scheduled to
be repaid in 62 months or less and requires repayment in
substantially equal or consecutive monthly installments of
principal and interest combined, the interest or consideration
may be precomputed, contracted for and earned on scheduled unpaid
principal balances on the assumption that all scheduled payments
will be made when due. In such cases, every payment may be
applied to the combined total of principal and precomputed
interest until the contract is fully paid, and the acceptance or
payment of interest or consideration on any loan made under the
provisions of this subsection { - is not considered to - }
{ + does not + } constitute payment, deduction or receipt
{ - thereof - } { + of the interest or consideration + } in
advance. The precomputed interest or consideration is subject to
the following adjustments:
(a) When a default of more than 10 days in the payment of any
scheduled installment occurs, the licensee may charge and collect
a default charge not exceeding five percent of the unpaid amount
of the installment or $5, whichever is less. A default charge may
be collected only once on an installment, but may be collected at
the time { - it - } { + the default charge + } accrues or at
any time thereafter. A default charge may not be assessed with
respect to an installment { - which - } { + that + } is paid
in full on or within 10 days after a scheduled installment due
date when an earlier maturing installment or a default or
deferral charge on an earlier maturing installment may not have
been paid in full even though all or part of such installment
payment is applied to an earlier maturing installment, or a
default or deferral charge.
(b) If the payment of all unpaid installments is deferred one
or more full months, and if the contract so provides, the
licensee may charge and collect a deferral charge not exceeding
the annual percentage rate specified in subsection (1)(a) of this
section and previously disclosed to the borrower pursuant to the
federal Truth in Lending Act applied to the sum of the
installments deferred for the length of the deferral period. The
deferral period is that period in which no scheduled installment
is required to be paid by reason of the deferral. The charge may
be collected at the time of deferral or at any time thereafter. A
deferral charge may not be made for the deferral of any
installment with respect to which a default charge has been
collected, unless the default charge is deducted from the
deferral charge. If prepayment of the loan in full occurs during
the deferral period, in addition to any other rebate which may be
required, the borrower shall receive a rebate of the portion of
the deferral applicable to the unexpired months in the deferral
period, for which purpose a fraction of an unexpired month
exceeding 15 days is considered to be a month.
(c) Upon prepayment in full of the unpaid balance of a
precomputed loan, a rebate of unearned interest or consideration
shall be made as provided in this paragraph. The amount of the
rebate shall be not less than the total interest contracted for
to maturity, less the greater of:
(A) Ten percent of the amount financed or $75, whichever is
less; or
(B) The interest or consideration earned to the installment due
date nearest the date of prepayment, computed by applying the
simple interest rate of the loan to the actual principal balances
outstanding, for the periods of time the balances were actually
outstanding. For purposes of rebate computations under this
subparagraph, the installment due date preceding the date of
prepayment is { - considered to be - } nearest if prepayment
occurs 15 days or less after that installment date. If prepayment
occurs more than 15 days after the preceding installment due
date, the next succeeding installment due date is
{ - considered to be - } nearest to the date of prepayment. In
determining the simple interest rate, the licensee may apply to
the scheduled payments the actuarial method { - , - } by which
each scheduled payment is applied first to accrued and unpaid
interest or consideration { - , - } and any amount remaining is
applied to reduction of the principal balance.
(3) If the borrower agrees to perform certain duties to insure
or preserve the collateral and fails to perform those duties, the
licensee may pay for the performance of { - those - } { +
the + } duties and add the amounts paid to the unpaid principal
balance. A charge may be made for sums advanced, at the rate
provided for in the loan agreement.
(4) The loan contract may provide that after default and
referral the borrower shall pay the licensee for reasonable
attorney fees actually paid by the licensee to an attorney { +
who is + } not a salaried employee of the licensee.
SECTION 47. ORS 726.075 is amended to read:
726.075. The Director of the Department of Consumer and
Business Services may not grant a license to engage in the
business of pawnbroker to any person if any person named in the
application submitted pursuant to ORS 726.060:
(1) Is insolvent, either in the sense that the person's
liabilities exceed the person's assets or that the person cannot
meet obligations as they mature, or is in such financial
condition that the person cannot continue in business with safety
to the person's customers;
(2) Has engaged in dishonest, fraudulent or illegal practices
or conduct in any business or profession;
(3) Has willfully or repeatedly violated or failed to comply
with { - any provision - } { + a provision + } of the Oregon
Bank Act, { - the Savings Association Act, - } the Oregon
Credit Union Act, the Oregon Consumer Finance Act or the
Pawnbrokers Act, or any administrative rule or order adopted
{ - pursuant to any such Act - } { + under an Act identified
in this subsection + };
(4) Has been convicted of a crime, an essential element of
which is fraud;
(5) Is not qualified to conduct a pawnbroker business on the
basis of such factors as training, experience and knowledge of
the business;
(6) Is permanently or temporarily enjoined by a court of
competent jurisdiction from engaging in or continuing any conduct
or practice involving { - any - } { + an + } aspect of the
pawnbroker business;
(7) Is the subject of an order of the director, subjecting the
person to a fine or other civil penalty, or removing the person
from an office in { - any - } { + an + } entity regulated by
either director; or
(8) Is the subject of an order { + that was issued by the
regulatory authority of another state or of the federal
government with authority over such banking institutions, credit
unions, consumer finance companies or savings associations, that
was + } entered within the past five years { - , subjecting - }
{ + and that subjects + } the person to a fine or other civil
penalty { - , - } or { - removing - } { + removes + } the
person from an office in a state banking institution, a national
bank, a state or federal savings association, a state or federal
credit union or a consumer finance company { + . + } { - ,
issued by the regulatory authority of another state or of the
federal government with authority over such banking institutions,
credit unions, consumer finance companies or savings
associations. - }
SECTION 48. ORS 732.145 is amended to read:
732.145. (1) { - Every - } { + A + } subscription to the
capital stock of an insurer in the process of organization
{ - shall - } { + must + } contain a stipulation that no sum
shall be used for commission, promotion or organization expenses
in excess of a stated percent of the amount paid upon the
subscription. This stated amount { - shall - } { + may + }
not exceed 15 percent.
(2) { - All - } Sums paid by subscribers and applicants
{ - shall - } { + must + } be deposited under an escrow
agreement approved by the Director of the Department of Consumer
and Business Services in a bank, trust company or savings
{ - and loan - } association in the state until the insurer has
procured a certificate of authority from the director.
(3) Every subscription for stock or every application for
insurance in an insurer made prior to { - its - } { + the
insurer's + } receipt of a certificate of authority
{ - shall - } { + must + } contain a stipulation that the
money, securities or evidences of debt advanced by the subscriber
or applicant { - shall - } { + must + } be returned to the
subscriber or applicant without { - any - } deduction in case
the insurer fails to complete { - its - } { + the
insurer's + } organization or procure { - its - } { + the
insurer's + } certificate of authority or issue the policy
applied for.
SECTION 49. { + ORS 705.620, 722.004, 722.008, 722.012,
722.014, 722.016, 722.018, 722.022, 722.024, 722.026, 722.028,
722.032, 722.034, 722.036, 722.038, 722.042, 722.044, 722.046,
722.048, 722.052, 722.056, 722.058, 722.062, 722.064, 722.066,
722.068, 722.072, 722.074, 722.102, 722.104, 722.106, 722.107,
722.108, 722.112, 722.113, 722.114, 722.116, 722.118, 722.122,
722.124, 722.132, 722.134, 722.136, 722.138, 722.142, 722.152,
722.154, 722.156, 722.162, 722.164, 722.202, 722.204, 722.206,
722.208, 722.212, 722.214, 722.252, 722.254, 722.256, 722.257,
722.258, 722.262, 722.264, 722.266, 722.268, 722.302, 722.304,
722.306, 722.308, 722.309, 722.311, 722.312, 722.314, 722.322,
722.324, 722.326, 722.328, 722.332, 722.334, 722.336, 722.338,
722.342, 722.352, 722.354, 722.356, 722.408, 722.416, 722.419,
722.432, 722.434, 722.436, 722.438, 722.442, 722.444, 722.446,
722.448, 722.452, 722.454, 722.456, 722.457, 722.458, 722.459,
722.462, 722.464, 722.468, 722.474, 722.476, 722.478, 722.482,
722.484, 722.502, 722.504, 722.506, 722.508, 722.512, 722.514,
722.516, 722.602, 722.606, 722.652, 722.654, 722.656, 722.658,
722.660 and 722.991 are repealed. + }
SECTION 50. { + (1) Sections 34 and 35 of this 2009 Act, the
amendments to ORS 56.080, 112.810, 113.238, 114.535, 180.540,
183.635, 192.502, 192.555, 205.460, 293.353, 293.701, 293.718,
293.723, 294.831, 294.882, 294.895, 311.780, 317.057, 317.147,
399.240, 456.548, 458.670, 646A.628, 705.137, 705.635, 705.638,
705.640, 705.642, 706.515, 706.530, 706.720, 713.300, 715.055,
717.235, 723.014, 723.114, 723.118, 723.136, 723.752, 725.120,
725.145, 725.185, 725.340, 726.075 and 732.145 by sections 1 to
32 and 36 to 48 of this 2009 Act and the repeal of statutes by
section 49 of this 2009 Act become operative 90 days after the
effective date of this 2009 Act.
(2) The Director of the Department of Consumer and Business
Services may take any action before the operative date set forth
in subsection (1) of this section that is necessary to enable the
director to exercise, on and after the operative date, all the
duties, functions and powers conferred on the director by
sections 34 and 35 of this 2009 Act, the amendments to ORS
56.080, 112.810, 113.238, 114.535, 180.540, 183.635, 192.502,
192.555, 205.460, 293.353, 293.701, 293.718, 293.723, 294.831,
294.882, 294.895, 311.780, 317.057, 317.147, 399.240, 456.548,
458.670, 646A.628, 705.137, 705.635, 705.638, 705.640, 705.642,
706.515, 706.530, 706.720, 713.300, 715.055, 717.235, 723.014,
723.114, 723.118, 723.136, 723.752, 725.120, 725.145, 725.185,
725.340, 726.075 and 732.145 by sections 1 to 32 and 36 to 48 of
this 2009 Act and the repeal of statutes by section 49 of this
2009 Act. + }
SECTION 51. { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect on
its passage. + }
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