76th OREGON LEGISLATIVE ASSEMBLY--2011 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 2130
A-Engrossed
House Bill 2614
Ordered by the Senate June 8
Including Senate Amendments dated June 8
Sponsored by Representative SCHAUFLER (at the request of Oregon
Bankers Association) (Presession filed.)
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.
Removes requirement that institution reduce book value of real
estate that institution holds under certain provision of law by
certain amount each year. { + Requires that institution at all
times value and record such real estate in accordance with
generally accepted accounting principles.
Reduces amount of time by which financial institution must sell
or exchange real estate acquired in satisfaction of debts owed or
purchased at execution sale or under judgment. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to banking; creating new provisions; amending ORS
708A.195 and 708A.590; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 708A.590 is amended to read:
708A.590. (1) An institution that owns or holds any real estate
other than as permitted in the Bank Act shall immediately charge
the book value of { + the + } real estate to profit and loss or
otherwise remove the real estate from { - its - } { + the
institution's + } books.
{ + (2) An institution shall at all times value and record on
the institution's books and records, in accordance with generally
accepted accounting principles, real estate that the institution
owns or holds in accordance with ORS 708A.175 (3) or (4). + }
{ - (2) All real estate owned or held by an institution in
accordance with ORS 708A.175 (3) or (4) shall be reduced in book
value by not less than five percent of its original book value
per year commencing the year title is vested and continuing until
the earlier of the year the real estate is disposed of or the
expiration of the period such real estate may be owned or held
under ORS 708A.195. Upon the expiration of the period such real
estate may be owned or held under ORS 708A.195, the remaining
book value shall be charged off. - }
SECTION 2. ORS 708A.195 is amended to read:
708A.195. (1) An institution shall promptly dispose of
{ - all - } real and personal property that the institution is
not authorized to own or hold under the Bank Act.
(2) { - All - } Real estate acquired by an institution
pursuant to ORS 708A.175 (3) and (4) shall be sold or exchanged
for other real estate within { - 15 - } { + 10 + } years
after title has vested in { - it - } { + the real estate + },
unless { - the time is extended by - } the Director of the
Department of Consumer and Business Services { + extends the
time + }. Title { - is deemed vested - } { + vests + } for
purposes of this section on the date the institution is first
entitled to receive a deed to the real estate. { + An
institution may not exchange + } real estate { - may not be
exchanged - } for other real estate without the { +
director's + } prior written consent { - of the director - } .
An institution may hold real estate taken in exchange for other
real estate for { - such - } { + a + } period of time
{ - as - } { + that + } the director { - may fix - } { +
fixes + }, not to exceed { - 15 - } { + 10 + } years from the
date of the exchange.
(3) { - All personal property acquired by - } An
institution { + shall promptly dispose of personal property the
institution acquires under ORS 708A.175 (3). + } { - pursuant
to ORS 708A.175 (3) shall be promptly disposed of. - }
SECTION 3. { + (1) The amendments to ORS 708A.590 by section 1
of this 2011 Act apply to real estate that an institution
acquires before, on or after the effective date of this 2011 Act.
(2) The amendments to ORS 708A.195 (2) by section 2 of this
2011 Act apply to real estate that an institution takes in
exchange for other real estate on or after the effective date of
this 2011 Act. + }
SECTION 4. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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