Chapter 469 Oregon Laws 1999

Session Law

AN ACT

SB 1306

Relating to management of the consumer finance licensing program by the Department of Consumer and Business Services; creating new provisions; amending ORS 725.110, 725.140, 725.190, 725.220, 725.250 and 725.310; and repealing ORS 725.026 and 725.027.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 725.110 is amended to read:

725.110. [No] A license shall not be granted to any person[, partnership, association or corporation unless that person and all members of any such partnership or association are bona fide residents of this state and unless such corporation is an Oregon corporation in good standing or a foreign corporation legally qualified to do business in this state] under this chapter unless the person is legally qualified to conduct business in this state.

SECTION 2. ORS 725.140 is amended to read:

725.140. (1) Conditioned upon the applicant's compliance with this chapter and the payment of the license fee, the Director of the Department of Consumer and Business Services, within 90 days after the date of filing the application referred to in ORS 725.120, shall disapprove the application or shall issue and deliver a license to the applicant to make loans in accordance with this chapter at the location specified in the application. However, before issuing a license, the director must first find upon investigation:

(a) That the financial responsibility, experience, character and general fitness of the applicant, and of the members thereof if the applicant is a partnership or association, and of the officers and directors thereof if the applicant is a corporation, are such as to command the confidence of the community and to warrant the belief that the business will be operated honestly, fairly and efficiently within the purposes of this chapter; and

(b) That [allowing the applicant to engage in business will promote the convenience and advantage of the community in which the business of the applicant is to be conducted, and in the absence of any other reason or condition which] grounds for disapproval of an application described in ORS 725.145 do not exist and that, in the judgment of the director, there are no other reasons or conditions that would warrant the refusal to grant a license.

(2) A license issued under this section shall be a continuing license [and need not be issued annually,] and shall remain in full force and effect until the license is surrendered by the licensee as provided in ORS 725.250 or revoked or suspended as provided in ORS 725.230.

SECTION 3. ORS 725.190 is amended to read:

725.190. (1) On or before February 15 of each year, or on such other date established by the Director of the Department of Consumer and Business Services by rule, every licensee shall file a report with the director [of the Department of Consumer and Business Services] giving such relevant information as the director may require concerning the business and operations during the preceding calendar year of each licensed place of business conducted by the licensee within the state. The report shall be made under oath and shall be in the form prescribed by the director.

(2) Every licensee who fails to file any report required under this chapter within the time specified may be subject to a penalty of $10 per day for each day's delay.

SECTION 4. ORS 725.220 is amended to read:

725.220. (1) When a licensee wishes to change the place of business to another location [within the same city], the licensee shall submit written notice thereof, together with the license, to the Director of the Department of Consumer and Business Services. [If the director, upon investigation, finds that allowing the licensee to engage in business at the proposed new location will promote the convenience and advantage of the community in which the proposed new location of the business is situated,] The director shall amend the license of the licensee to reflect the new location and shall return the amended license to the licensee. [If the director disapproves the proposed new location of the business, the director shall immediately notify the licensee of the disapproval and return the license unchanged to the licensee.]

(2) [No] A change in the place of business of a licensee to a location outside the city named in the original license may be allowed under the same license only if the director determines that the new location will serve substantially the same community as is served at the location named in the original license.

(3) If the director disapproves the proposed new location of the business, the director shall immediately notify the licensee of the disapproval and return the license unchanged to the licensee.

SECTION 5. ORS 725.250 is amended to read:

725.250. (1) Any licensee may surrender any license issued to the licensee by delivering written notice to the Director of the Department of Consumer and Business Services that the licensee thereby surrenders the license.

(2)(a) A licensee shall surrender any license issued to the licensee under which there has been no material loan activity for a period of 12 consecutive months.

(b) For purposes of this subsection, "material loan activity" includes new loans, refinancing of existing loans or formal extensions of existing loan repayment provisions in excess of 30 days.

(3) [However,] Surrender of [the] a license under subsection (1) or (2) of this section shall not affect the licensee's civil or criminal liability for acts committed prior to [the] surrender.

SECTION 6. ORS 725.310 is amended to read:

725.310. (1) For discovering violations of this chapter and securing information required by the Director of the Department of Consumer and Business Services under this chapter the director at any time may investigate the loans and business, including the books, accounts, records and files used therein, of every licensee and every nonlicensee required to be licensed under this chapter.

(2) For purposes of subsection (1) of this section:

(a) The director shall have free access to the place of business, books, accounts, safes and vaults of all such persons.

(b) The director may make an investigation without prior notice to the person being investigated.

(c) The director shall have authority to examine under oath all persons whose testimony the director may require relative to such loans or business.

(3) Each person examined under this section shall pay the actual cost of an investigation to the director. The director may maintain an action for the recovery of such costs in any court of competent jurisdiction.

SECTION 7. ORS 725.026 and 725.027 are repealed.

SECTION 8. The repeal of ORS 725.026 and 725.027 by section 7 of this 1999 Act:

(1) Shall not impair or affect the obligation of any contract lawfully made prior to August 3, 1955, including any lawful contract made by a licensee under ORS chapter 725 (1953 Edition) or ORS chapter 727 (1953 Edition); and

(2) Shall not affect the validity of a license continued in force under the provisions of ORS 725.027 (1997 Edition).

Approved by the Governor July 6, 1999

Filed in the office of Secretary of State July 6, 1999

Effective date October 23, 1999

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