Chapter 706 — Administrationand Enforcement of Banking Laws Generally
2009 EDITION
y
ADMINISTRATIONOF BANKING LAWS GENERALLY
FINANCIALINSTITUTIONS
GENERALPROVISIONS
706.005 Definitionsfor Bank Act
706.008 Additionaldefinitions for Bank Act
706.015 BankAct references to federal statutes and regulations; rules
SUPERVISIONOF BANKING INSTITUTIONS
706.500 Examinationof banking institutions and non-Oregon institutions; examination program with federalregulators
706.515 Agreementswith other bank supervisory agencies and Financial Crimes Enforcement Network;contracts for use of bank examiners; joint examination or enforcement; fees
706.520 Requestby directors or stockholders for examination; costs
706.530 Annualfees paid by banking institutions and non-Oregon institutions; rules
706.544 Costsfor special examination or other actions taken
706.560 Appraisalof securities and audit
706.570 Requiringbanking institution and non-Oregon institution to keep proper records andaccounts; civil penalty
706.575 Certificateas evidence that document is filed with director
706.580 Illegal,unauthorized or unsafe practices; authority of director
706.600 Authorityto protect creditors and depositors of banking institution or non-Oregoninstitution
706.610 Examinersrequired to report insolvency of Oregon operating institution
706.620 Records
706.630 Regularreports of condition; additional reports as required by director
706.650 Delayor failure to furnish reports of condition; penalty
706.655 Recordsof extensions of credit by banking institutions; rules
706.660 Reportof earnings and dividends
706.680 Failureto make reports of earnings and dividends; penalty
706.690 Transferof stock or controlling interest; notice to and approval by director;applicability to financial holding companies and bank holding companies
706.700 Resignationor retirement of director, president or chief executive officer; notice todirector
706.710 Waiverof retirement or resignation notices; modifying effective date
706.720 Reportsfiled with director; public inspection of records; exemptions; confidentiality;forms
706.723 Compliancereview documents confidential; review by court
706.725 Falsestatements, reports and book entries
706.730 Depositorand debtor information confidential; disclosure prohibited; exceptions
706.775 Enforcementof Bank Act; production of witnesses and evidence; fees and mileage ofwitnesses
706.780 Noticeto law enforcement officers of Bank Act violations; exception
706.785 AttorneyGeneral to conduct actions; assistance of district attorneys
706.790 Rules
706.795 Rulesauthorizing banking institutions to exercise powers of certain financialinstitutions
706.815 Singleaccount for moneys relating to supervision of Oregon operating institutions
PENALTIES
706.980 Civilpenalties
706.990 Criminalpenalties
GENERALPROVISIONS
706.005Definitions for Bank Act. As used in the Bank Act, unless the contextrequires otherwise:
(1)“Access area” means any paved walkway or sidewalk within 50 feet of anautomated teller machine or night deposit facility. “Access area” does notinclude publicly maintained sidewalks or roads.
(2)“Access device” means:
(a)An “access device” as defined in Federal Reserve Board Regulation E (12 C.F.R.Part 205) adopted under the Electronic Fund Transfer Act (15 U.S.C. 1601, etseq.); or
(b)A key or other mechanism issued by a financial institution to a customer togive the customer access to the institution’s or bank’s night deposit facility.
(3)“Acquisition transaction” means:
(a)The sale and purchase of all or substantially all of the assets of a bank thatis not in the ordinary course of business of such bank; or
(b)The transfer and assumption of all or substantially all of the liabilities of abank.
(4)“Automated teller machine” or “ATM” means any electronic information processingdevice located in this state that:
(a)Accepts or dispenses cash in connection with a credit, deposit or convenienceaccount, provides information and initiates transactions in accordance with therequest or instruction of a customer or the customer’s agent; and
(b)Is unstaffed except for persons installing the device, providing security orproviding periodic servicing, maintenance or repair. The term does not includedevices used solely to facilitate check guarantees or check authorizations, orused in connection with the acceptance or dispensing of cash on a person toperson basis, such as by a store cashier.
(5)“Bank Act” means ORS chapters 706 to 716.
(6)“Banking business” or “business of banking” means the business of receiving oraccepting money or its equivalent on deposit as a regular business whether thedeposit is made subject to check or is evidenced by a certificate of deposit, apass book or other writing or evidence, but does not include:
(a)Depositing money or its equivalent in escrow or with an agent, pendinginvestments in real estate or securities for or on account of a principal;
(b)The business of a savings and loan association or a credit union;
(c)Deposits accepted in connection with the purchase or lease of property orservices; or
(d)Accepting deposits through an ATM or night deposit facility.
(7)“Banking day” has the meaning given that term in ORS 708A.650.
(8)“Branch” means an office or other place, except a principal place of businessor an ATM, at which:
(a)A bank engages in banking business; or
(b)A trust company transacts trust business.
(9)“Candlefoot power” means a light intensity of candles on a horizontal plane at36 inches above ground level and 5 feet in front of the area to be measured.
(10)“Capital debentures” means capital notes, capital debentures and any other formof unsecured obligations issued by an institution or stock savings bank toevidence borrowings where the rights of the lender are subordinate to therights of the depositors.
(11)(a)“Defined parking area” means that portion of any parking area opened forcustomer parking that is:
(A)Contiguous to the access area of an ATM or night deposit facility;
(B)Regularly, principally and lawfully used for parking by users of the ATM ornight deposit facility while the users conduct transactions during hours ofdarkness; and
(C)Owned or leased by the operator of the ATM or night deposit facility or ownedor controlled by the party leasing the ATM or night deposit facility site tothe operator.
(b)“Defined parking area” does not include any parking area that is not open orregularly used for parking by users of the ATM or night deposit facility whoare conducting transactions during the hours of darkness. A parking area is notopen if it is physically closed to access or if conspicuous signs indicate thatit is closed. If a multiple level parking area satisfies the conditions ofparagraph (a) of this subsection and would therefore otherwise be a definedparking area, only the single parking level designated by the operator of theATM and night deposit facility to be the most directly accessible to the usersof the ATM and night deposit facility shall be a defined parking area.
(12)“Department” means the Department of Consumer and Business Services.
(13)“Director” means the Director of the Department of Consumer and BusinessServices.
(14)“Document of title” means document of title as defined in ORS 71.2010.
(15)“Federal Reserve Act” means the Act of Congress approved December 23, 1913 (38Stat. 251), as amended.
(16)“Federal Reserve Bank” means the Federal Reserve Banks created and organizedunder the authority of the Federal Reserve Act.
(17)“Federal Reserve Board” means the Federal Reserve Board created and describedin the Federal Reserve Act.
(18)“Home state” means:
(a)With respect to a state bank, the state under the laws of which the state bankis incorporated or otherwise organized;
(b)With respect to a federal bank, the state in which the main office of thefederal bank is located;
(c)With respect to an extranational institution, the state determined to be thehome state by election of the extranational institution, or in default of suchelection, by the Board of Governors of the Federal Reserve System; and
(d)With respect to a financial holding company or a bank holding company, thestate in which the total deposits of all banking subsidiaries of such companyare the largest on the date on which the company becomes a financial holdingcompany or a bank holding company.
(19)“Hours of darkness” means the period that commences 30 minutes after sunset andends 30 minutes before sunrise.
(20)“Loan production office” means a physical location in this state at whichrepresentatives of a financial institution hold themselves out to the public asproviding loan origination services, leasing services or services of a similarnature, but at which representatives of the financial institution do notconduct banking business.
(21)“Merger” includes consolidation.
(22)“Night deposit facility” means a receptacle that is provided by a financialinstitution for the use of the institution’s customers in delivering cash,checks and other items to the financial institution.
(23)“Obligations” includes:
(a)The direct liability of the maker or acceptor of paper discounted with or soldto an institution;
(b)The liability of the drawer, indorser or assignor;
(c)If obligations of a copartnership or association, the obligations of theseveral members of the copartnership or association;
(d)If obligations of a corporation, the obligations of all subsidiaries of thecorporation in which the corporation owns or controls 50 percent or more of thecapital stock; and
(e)The liability of a lessee under a lease.
(24)“Officer” of a banking institution means a chief executive officer, president,any vice president, secretary, treasurer or cashier.
(25)“Operator” means any financial institution or other business entity, or anyperson who operates an ATM or night deposit facility.
(26)“Paid-in capital” means the aggregate amount received by an institution orstock savings bank from the issuance of its stock or transferred from retainedearnings.
(27)“Person” means an individual, corporation, limited liability company,partnership, association, joint stock company, business trust or unincorporatedorganization.
(28)“Stockholders’ equity” means the aggregate of paid-in capital and retainedearnings of an institution or Oregon stock savings bank.
(29)“Trust business” means:
(a)Acting as a trustee of a trust;
(b)Acting as a fiduciary, as defined in ORS 125.005;
(c)Acting as a personal representative, as defined in ORS 111.005;
(d)Acting as a receiver, trustee or assignee for the benefit of creditors; or
(e)Acting in a court-appointed position of trust or any other position of trust. [1973c.797 §2; 1975 c.193 §1; 1975 c.725 §1; 1983 c.37 §1; 1985 c.12 §1; 1985 c.451 §1;1985 c.627 §3; 1985 c.762 §16; 1987 c.373 §47; 1987 c.371 §1; 1987 c.445 §7;1991 c.331 §109; 1993 c.229 §1; 1993 c.318 §6; 1993 c.744 §22; 1995 c.313 §1;1997 c.631 §1; 1999 c.107 §1; 2001 c.377 §45; 2005 c.348 §123]
706.008Additional definitions for Bank Act. As used in the Bank Act, unless thecontext requires otherwise:
(1)“Bank” means a company, other than an extranational institution, that acceptsdeposits insured to any extent by the Bank Insurance Fund under the provisionsof the Federal Deposit Insurance Act, as amended, 12 U.S.C. 1811, et seq.
(2)“Bank holding company” means any company that is a bank holding company underthe federal Bank Holding Company Act of 1956, as amended, 12 U.S.C. 1841, etseq.
(3)“Bank service corporation” means a corporation, all of the capital stock ofwhich is owned by one or more banking institutions or national banks, that isorganized to perform services authorized by ORS 708A.145.
(4)“Banking institution” means an Oregon commercial bank, an Oregon trust companyor an Oregon savings bank.
(5)“Company” means an entity that is a company under the federal Bank HoldingCompany Act of 1956, as amended, 12 U.S.C. 1841, et seq.
(6)“Extranational institution” means a corporation, unincorporated company,partnership or association of two or more persons organized under the laws of anation other than the United States, any territory of the United States, PuertoRico, Guam, American Samoa or the Virgin Islands, that engages directly in abanking business.
(7)“Federal bank” means a national bank or any other bank organized under the lawsof the United States.
(8)“Federal savings bank” means a corporation chartered as a federal savings bankunder the provisions of 12 U.S.C. 1464.
(9)“Financial holding company” means a company as referred to in section 103 ofthe federal Gramm-Leach-Bliley Act (P.L. 106-102).
(10)“Financial institution” means insured institutions, extranational institutions,credit unions as defined in ORS 723.006, out-of-state credit unions under ORS723.042 and federal credit unions.
(11)“In-state federal stock bank” means a federal bank that issues capital stock,the home state of which is Oregon.
(12)“Institution” means an Oregon commercial bank or an Oregon trust company.
(13)“Insured institution” means a company, the deposits of which are insured underthe provisions of the Federal Deposit Insurance Act, as amended, 12 U.S.C.1811, et seq.
(14)“Insured nonstock institution” means an insured institution that does not issuecapital stock.
(15)“Insured stock institution” means an insured institution that issues capitalstock.
(16)“National bank” means a bank that was organized under the provisions of theNational Bank Act, as amended, 12 U.S.C. 21, et seq.
(17)“Non-Oregon institution” means:
(a)An out-of-state state bank engaging in banking business in Oregon;
(b)An out-of-state trust company transacting trust business in Oregon; and
(c)An extranational institution engaging in banking business in Oregon.
(18)“Nonstock bank” means a bank that does not issue capital stock.
(19)“Oregon bank” means an Oregon stock bank or Oregon nonstock bank.
(20)“Oregon commercial bank” means an Oregon stock bank that was chartered underORS chapter 707 as a bank other than a stock savings bank.
(21)“Oregon nonstock bank” means a state nonstock bank, the home state of which isOregon.
(22)“Oregon operating institution” means:
(a)A bank that is engaging in banking business in this state;
(b)An extranational institution that is engaging in banking business in thisstate; or
(c)A trust company that is transacting trust business in this state.
(23)“Oregon savings bank” or “savings bank” means an Oregon stock savings bank oran Oregon nonstock bank.
Chapter 706 — Administrationand Enforcement of Banking Laws Generally
2009 EDITION
y
ADMINISTRATIONOF BANKING LAWS GENERALLY
FINANCIALINSTITUTIONS
GENERALPROVISIONS
706.005 Definitionsfor Bank Act
706.008 Additionaldefinitions for Bank Act
706.015 BankAct references to federal statutes and regulations; rules
SUPERVISIONOF BANKING INSTITUTIONS
706.500 Examinationof banking institutions and non-Oregon institutions; examination program with federalregulators
706.515 Agreementswith other bank supervisory agencies and Financial Crimes Enforcement Network;contracts for use of bank examiners; joint examination or enforcement; fees
706.520 Requestby directors or stockholders for examination; costs
706.530 Annualfees paid by banking institutions and non-Oregon institutions; rules
706.544 Costsfor special examination or other actions taken
706.560 Appraisalof securities and audit
706.570 Requiringbanking institution and non-Oregon institution to keep proper records andaccounts; civil penalty
706.575 Certificateas evidence that document is filed with director
706.580 Illegal,unauthorized or unsafe practices; authority of director
706.600 Authorityto protect creditors and depositors of banking institution or non-Oregoninstitution
706.610 Examinersrequired to report insolvency of Oregon operating institution
706.620 Records
706.630 Regularreports of condition; additional reports as required by director
706.650 Delayor failure to furnish reports of condition; penalty
706.655 Recordsof extensions of credit by banking institutions; rules
706.660 Reportof earnings and dividends
706.680 Failureto make reports of earnings and dividends; penalty
706.690 Transferof stock or controlling interest; notice to and approval by director;applicability to financial holding companies and bank holding companies
706.700 Resignationor retirement of director, president or chief executive officer; notice todirector
706.710 Waiverof retirement or resignation notices; modifying effective date
706.720 Reportsfiled with director; public inspection of records; exemptions; confidentiality;forms
706.723 Compliancereview documents confidential; review by court
706.725 Falsestatements, reports and book entries
706.730 Depositorand debtor information confidential; disclosure prohibited; exceptions
706.775 Enforcementof Bank Act; production of witnesses and evidence; fees and mileage ofwitnesses
706.780 Noticeto law enforcement officers of Bank Act violations; exception
706.785 AttorneyGeneral to conduct actions; assistance of district attorneys
706.790 Rules
706.795 Rulesauthorizing banking institutions to exercise powers of certain financialinstitutions
706.815 Singleaccount for moneys relating to supervision of Oregon operating institutions
PENALTIES
706.980 Civilpenalties
706.990 Criminalpenalties
GENERALPROVISIONS
706.005Definitions for Bank Act. As used in the Bank Act, unless the contextrequires otherwise:
(1)“Access area” means any paved walkway or sidewalk within 50 feet of anautomated teller machine or night deposit facility. “Access area” does notinclude publicly maintained sidewalks or roads.
(2)“Access device” means:
(a)An “access device” as defined in Federal Reserve Board Regulation E (12 C.F.R.Part 205) adopted under the Electronic Fund Transfer Act (15 U.S.C. 1601, etseq.); or
(b)A key or other mechanism issued by a financial institution to a customer togive the customer access to the institution’s or bank’s night deposit facility.
(3)“Acquisition transaction” means:
(a)The sale and purchase of all or substantially all of the assets of a bank thatis not in the ordinary course of business of such bank; or
(b)The transfer and assumption of all or substantially all of the liabilities of abank.
(4)“Automated teller machine” or “ATM” means any electronic information processingdevice located in this state that:
(a)Accepts or dispenses cash in connection with a credit, deposit or convenienceaccount, provides information and initiates transactions in accordance with therequest or instruction of a customer or the customer’s agent; and
(b)Is unstaffed except for persons installing the device, providing security orproviding periodic servicing, maintenance or repair. The term does not includedevices used solely to facilitate check guarantees or check authorizations, orused in connection with the acceptance or dispensing of cash on a person toperson basis, such as by a store cashier.
(5)“Bank Act” means ORS chapters 706 to 716.
(6)“Banking business” or “business of banking” means the business of receiving oraccepting money or its equivalent on deposit as a regular business whether thedeposit is made subject to check or is evidenced by a certificate of deposit, apass book or other writing or evidence, but does not include:
(a)Depositing money or its equivalent in escrow or with an agent, pendinginvestments in real estate or securities for or on account of a principal;
(b)The business of a savings and loan association or a credit union;
(c)Deposits accepted in connection with the purchase or lease of property orservices; or
(d)Accepting deposits through an ATM or night deposit facility.
(7)“Banking day” has the meaning given that term in ORS 708A.650.
(8)“Branch” means an office or other place, except a principal place of businessor an ATM, at which:
(a)A bank engages in banking business; or
(b)A trust company transacts trust business.
(9)“Candlefoot power” means a light intensity of candles on a horizontal plane at36 inches above ground level and 5 feet in front of the area to be measured.
(10)“Capital debentures” means capital notes, capital debentures and any other formof unsecured obligations issued by an institution or stock savings bank toevidence borrowings where the rights of the lender are subordinate to therights of the depositors.
(11)(a)“Defined parking area” means that portion of any parking area opened forcustomer parking that is:
(A)Contiguous to the access area of an ATM or night deposit facility;
(B)Regularly, principally and lawfully used for parking by users of the ATM ornight deposit facility while the users conduct transactions during hours ofdarkness; and
(C)Owned or leased by the operator of the ATM or night deposit facility or ownedor controlled by the party leasing the ATM or night deposit facility site tothe operator.
(b)“Defined parking area” does not include any parking area that is not open orregularly used for parking by users of the ATM or night deposit facility whoare conducting transactions during the hours of darkness. A parking area is notopen if it is physically closed to access or if conspicuous signs indicate thatit is closed. If a multiple level parking area satisfies the conditions ofparagraph (a) of this subsection and would therefore otherwise be a definedparking area, only the single parking level designated by the operator of theATM and night deposit facility to be the most directly accessible to the usersof the ATM and night deposit facility shall be a defined parking area.
(12)“Department” means the Department of Consumer and Business Services.
(13)“Director” means the Director of the Department of Consumer and BusinessServices.
(14)“Document of title” means document of title as defined in ORS 71.2010.
(15)“Federal Reserve Act” means the Act of Congress approved December 23, 1913 (38Stat. 251), as amended.
(16)“Federal Reserve Bank” means the Federal Reserve Banks created and organizedunder the authority of the Federal Reserve Act.
(17)“Federal Reserve Board” means the Federal Reserve Board created and describedin the Federal Reserve Act.
(18)“Home state” means:
(a)With respect to a state bank, the state under the laws of which the state bankis incorporated or otherwise organized;
(b)With respect to a federal bank, the state in which the main office of thefederal bank is located;
(c)With respect to an extranational institution, the state determined to be thehome state by election of the extranational institution, or in default of suchelection, by the Board of Governors of the Federal Reserve System; and
(d)With respect to a financial holding company or a bank holding company, thestate in which the total deposits of all banking subsidiaries of such companyare the largest on the date on which the company becomes a financial holdingcompany or a bank holding company.
(19)“Hours of darkness” means the period that commences 30 minutes after sunset andends 30 minutes before sunrise.
(20)“Loan production office” means a physical location in this state at whichrepresentatives of a financial institution hold themselves out to the public asproviding loan origination services, leasing services or services of a similarnature, but at which representatives of the financial institution do notconduct banking business.
(21)“Merger” includes consolidation.
(22)“Night deposit facility” means a receptacle that is provided by a financialinstitution for the use of the institution’s customers in delivering cash,checks and other items to the financial institution.
(23)“Obligations” includes:
(a)The direct liability of the maker or acceptor of paper discounted with or soldto an institution;
(b)The liability of the drawer, indorser or assignor;
(c)If obligations of a copartnership or association, the obligations of theseveral members of the copartnership or association;
(d)If obligations of a corporation, the obligations of all subsidiaries of thecorporation in which the corporation owns or controls 50 percent or more of thecapital stock; and
(e)The liability of a lessee under a lease.
(24)“Officer” of a banking institution means a chief executive officer, president,any vice president, secretary, treasurer or cashier.
(25)“Operator” means any financial institution or other business entity, or anyperson who operates an ATM or night deposit facility.
(26)“Paid-in capital” means the aggregate amount received by an institution orstock savings bank from the issuance of its stock or transferred from retainedearnings.
(27)“Person” means an individual, corporation, limited liability company,partnership, association, joint stock company, business trust or unincorporatedorganization.
(28)“Stockholders’ equity” means the aggregate of paid-in capital and retainedearnings of an institution or Oregon stock savings bank.
(29)“Trust business” means:
(a)Acting as a trustee of a trust;
(b)Acting as a fiduciary, as defined in ORS 125.005;
(c)Acting as a personal representative, as defined in ORS 111.005;
(d)Acting as a receiver, trustee or assignee for the benefit of creditors; or
(e)Acting in a court-appointed position of trust or any other position of trust. [1973c.797 §2; 1975 c.193 §1; 1975 c.725 §1; 1983 c.37 §1; 1985 c.12 §1; 1985 c.451 §1;1985 c.627 §3; 1985 c.762 §16; 1987 c.373 §47; 1987 c.371 §1; 1987 c.445 §7;1991 c.331 §109; 1993 c.229 §1; 1993 c.318 §6; 1993 c.744 §22; 1995 c.313 §1;1997 c.631 §1; 1999 c.107 §1; 2001 c.377 §45; 2005 c.348 §123]
706.008Additional definitions for Bank Act. As used in the Bank Act, unless thecontext requires otherwise:
(1)“Bank” means a company, other than an extranational institution, that acceptsdeposits insured to any extent by the Bank Insurance Fund under the provisionsof the Federal Deposit Insurance Act, as amended, 12 U.S.C. 1811, et seq.
(2)“Bank holding company” means any company that is a bank holding company underthe federal Bank Holding Company Act of 1956, as amended, 12 U.S.C. 1841, etseq.
(3)“Bank service corporation” means a corporation, all of the capital stock ofwhich is owned by one or more banking institutions or national banks, that isorganized to perform services authorized by ORS 708A.145.
(4)“Banking institution” means an Oregon commercial bank, an Oregon trust companyor an Oregon savings bank.
(5)“Company” means an entity that is a company under the federal Bank HoldingCompany Act of 1956, as amended, 12 U.S.C. 1841, et seq.
(6)“Extranational institution” means a corporation, unincorporated company,partnership or association of two or more persons organized under the laws of anation other than the United States, any territory of the United States, PuertoRico, Guam, American Samoa or the Virgin Islands, that engages directly in abanking business.
(7)“Federal bank” means a national bank or any other bank organized under the lawsof the United States.
(8)“Federal savings bank” means a corporation chartered as a federal savings bankunder the provisions of 12 U.S.C. 1464.
(9)“Financial holding company” means a company as referred to in section 103 ofthe federal Gramm-Leach-Bliley Act (P.L. 106-102).
(10)“Financial institution” means insured institutions, extranational institutions,credit unions as defined in ORS 723.006, out-of-state credit unions under ORS723.042 and federal credit unions.
(11)“In-state federal stock bank” means a federal bank that issues capital stock,the home state of which is Oregon.
(12)“Institution” means an Oregon commercial bank or an Oregon trust company.
(13)“Insured institution” means a company, the deposits of which are insured underthe provisions of the Federal Deposit Insurance Act, as amended, 12 U.S.C.1811, et seq.
(14)“Insured nonstock institution” means an insured institution that does not issuecapital stock.
(15)“Insured stock institution” means an insured institution that issues capitalstock.
(16)“National bank” means a bank that was organized under the provisions of theNational Bank Act, as amended, 12 U.S.C. 21, et seq.
(17)“Non-Oregon institution” means:
(a)An out-of-state state bank engaging in banking business in Oregon;
(b)An out-of-state trust company transacting trust business in Oregon; and
(c)An extranational institution engaging in banking business in Oregon.
(18)“Nonstock bank” means a bank that does not issue capital stock.
(19)“Oregon bank” means an Oregon stock bank or Oregon nonstock bank.
(20)“Oregon commercial bank” means an Oregon stock bank that was chartered underORS chapter 707 as a bank other than a stock savings bank.
(21)“Oregon nonstock bank” means a state nonstock bank, the home state of which isOregon.
(22)“Oregon operating institution” means:
(a)A bank that is engaging in banking business in this state;
(b)An extranational institution that is engaging in banking business in thisstate; or
(c)A trust company that is transacting trust business in this state.
(23)“Oregon savings bank” or “savings bank” means an Oregon stock savings bank oran Oregon nonstock bank.
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Chapter 706 — Administrationand Enforcement of Banking Laws Generally
2009 EDITION
y
ADMINISTRATIONOF BANKING LAWS GENERALLY
FINANCIALINSTITUTIONS
GENERALPROVISIONS
706.005 Definitionsfor Bank Act
706.008 Additionaldefinitions for Bank Act
706.015 BankAct references to federal statutes and regulations; rules
SUPERVISIONOF BANKING INSTITUTIONS
706.500 Examinationof banking institutions and non-Oregon institutions; examination program with federalregulators
706.515 Agreementswith other bank supervisory agencies and Financial Crimes Enforcement Network;contracts for use of bank examiners; joint examination or enforcement; fees
706.520 Requestby directors or stockholders for examination; costs
706.530 Annualfees paid by banking institutions and non-Oregon institutions; rules
706.544 Costsfor special examination or other actions taken
706.560 Appraisalof securities and audit
706.570 Requiringbanking institution and non-Oregon institution to keep proper records andaccounts; civil penalty
706.575 Certificateas evidence that document is filed with director
706.580 Illegal,unauthorized or unsafe practices; authority of director
706.600 Authorityto protect creditors and depositors of banking institution or non-Oregoninstitution
706.610 Examinersrequired to report insolvency of Oregon operating institution
706.620 Records
706.630 Regularreports of condition; additional reports as required by director
706.650 Delayor failure to furnish reports of condition; penalty
706.655 Recordsof extensions of credit by banking institutions; rules
706.660 Reportof earnings and dividends
706.680 Failureto make reports of earnings and dividends; penalty
706.690 Transferof stock or controlling interest; notice to and approval by director;applicability to financial holding companies and bank holding companies
706.700 Resignationor retirement of director, president or chief executive officer; notice todirector
706.710 Waiverof retirement or resignation notices; modifying effective date
706.720 Reportsfiled with director; public inspection of records; exemptions; confidentiality;forms
706.723 Compliancereview documents confidential; review by court
706.725 Falsestatements, reports and book entries
706.730 Depositorand debtor information confidential; disclosure prohibited; exceptions
706.775 Enforcementof Bank Act; production of witnesses and evidence; fees and mileage ofwitnesses
706.780 Noticeto law enforcement officers of Bank Act violations; exception
706.785 AttorneyGeneral to conduct actions; assistance of district attorneys
706.790 Rules
706.795 Rulesauthorizing banking institutions to exercise powers of certain financialinstitutions
706.815 Singleaccount for moneys relating to supervision of Oregon operating institutions
PENALTIES
706.980 Civilpenalties
706.990 Criminalpenalties
GENERALPROVISIONS
706.005Definitions for Bank Act. As used in the Bank Act, unless the contextrequires otherwise:
(1)“Access area” means any paved walkway or sidewalk within 50 feet of anautomated teller machine or night deposit facility. “Access area” does notinclude publicly maintained sidewalks or roads.
(2)“Access device” means:
(a)An “access device” as defined in Federal Reserve Board Regulation E (12 C.F.R.Part 205) adopted under the Electronic Fund Transfer Act (15 U.S.C. 1601, etseq.); or
(b)A key or other mechanism issued by a financial institution to a customer togive the customer access to the institution’s or bank’s night deposit facility.
(3)“Acquisition transaction” means:
(a)The sale and purchase of all or substantially all of the assets of a bank thatis not in the ordinary course of business of such bank; or
(b)The transfer and assumption of all or substantially all of the liabilities of abank.
(4)“Automated teller machine” or “ATM” means any electronic information processingdevice located in this state that:
(a)Accepts or dispenses cash in connection with a credit, deposit or convenienceaccount, provides information and initiates transactions in accordance with therequest or instruction of a customer or the customer’s agent; and
(b)Is unstaffed except for persons installing the device, providing security orproviding periodic servicing, maintenance or repair. The term does not includedevices used solely to facilitate check guarantees or check authorizations, orused in connection with the acceptance or dispensing of cash on a person toperson basis, such as by a store cashier.
(5)“Bank Act” means ORS chapters 706 to 716.
(6)“Banking business” or “business of banking” means the business of receiving oraccepting money or its equivalent on deposit as a regular business whether thedeposit is made subject to check or is evidenced by a certificate of deposit, apass book or other writing or evidence, but does not include:
(a)Depositing money or its equivalent in escrow or with an agent, pendinginvestments in real estate or securities for or on account of a principal;
(b)The business of a savings and loan association or a credit union;
(c)Deposits accepted in connection with the purchase or lease of property orservices; or
(d)Accepting deposits through an ATM or night deposit facility.
(7)“Banking day” has the meaning given that term in ORS 708A.650.
(8)“Branch” means an office or other place, except a principal place of businessor an ATM, at which:
(a)A bank engages in banking business; or
(b)A trust company transacts trust business.
(9)“Candlefoot power” means a light intensity of candles on a horizontal plane at36 inches above ground level and 5 feet in front of the area to be measured.
(10)“Capital debentures” means capital notes, capital debentures and any other formof unsecured obligations issued by an institution or stock savings bank toevidence borrowings where the rights of the lender are subordinate to therights of the depositors.
(11)(a)“Defined parking area” means that portion of any parking area opened forcustomer parking that is:
(A)Contiguous to the access area of an ATM or night deposit facility;
(B)Regularly, principally and lawfully used for parking by users of the ATM ornight deposit facility while the users conduct transactions during hours ofdarkness; and
(C)Owned or leased by the operator of the ATM or night deposit facility or ownedor controlled by the party leasing the ATM or night deposit facility site tothe operator.
(b)“Defined parking area” does not include any parking area that is not open orregularly used for parking by users of the ATM or night deposit facility whoare conducting transactions during the hours of darkness. A parking area is notopen if it is physically closed to access or if conspicuous signs indicate thatit is closed. If a multiple level parking area satisfies the conditions ofparagraph (a) of this subsection and would therefore otherwise be a definedparking area, only the single parking level designated by the operator of theATM and night deposit facility to be the most directly accessible to the usersof the ATM and night deposit facility shall be a defined parking area.
(12)“Department” means the Department of Consumer and Business Services.
(13)“Director” means the Director of the Department of Consumer and BusinessServices.
(14)“Document of title” means document of title as defined in ORS 71.2010.
(15)“Federal Reserve Act” means the Act of Congress approved December 23, 1913 (38Stat. 251), as amended.
(16)“Federal Reserve Bank” means the Federal Reserve Banks created and organizedunder the authority of the Federal Reserve Act.
(17)“Federal Reserve Board” means the Federal Reserve Board created and describedin the Federal Reserve Act.
(18)“Home state” means:
(a)With respect to a state bank, the state under the laws of which the state bankis incorporated or otherwise organized;
(b)With respect to a federal bank, the state in which the main office of thefederal bank is located;
(c)With respect to an extranational institution, the state determined to be thehome state by election of the extranational institution, or in default of suchelection, by the Board of Governors of the Federal Reserve System; and
(d)With respect to a financial holding company or a bank holding company, thestate in which the total deposits of all banking subsidiaries of such companyare the largest on the date on which the company becomes a financial holdingcompany or a bank holding company.
(19)“Hours of darkness” means the period that commences 30 minutes after sunset andends 30 minutes before sunrise.
(20)“Loan production office” means a physical location in this state at whichrepresentatives of a financial institution hold themselves out to the public asproviding loan origination services, leasing services or services of a similarnature, but at which representatives of the financial institution do notconduct banking business.
(21)“Merger” includes consolidation.
(22)“Night deposit facility” means a receptacle that is provided by a financialinstitution for the use of the institution’s customers in delivering cash,checks and other items to the financial institution.
(23)“Obligations” includes:
(a)The direct liability of the maker or acceptor of paper discounted with or soldto an institution;
(b)The liability of the drawer, indorser or assignor;
(c)If obligations of a copartnership or association, the obligations of theseveral members of the copartnership or association;
(d)If obligations of a corporation, the obligations of all subsidiaries of thecorporation in which the corporation owns or controls 50 percent or more of thecapital stock; and
(e)The liability of a lessee under a lease.
(24)“Officer” of a banking institution means a chief executive officer, president,any vice president, secretary, treasurer or cashier.
(25)“Operator” means any financial institution or other business entity, or anyperson who operates an ATM or night deposit facility.
(26)“Paid-in capital” means the aggregate amount received by an institution orstock savings bank from the issuance of its stock or transferred from retainedearnings.
(27)“Person” means an individual, corporation, limited liability company,partnership, association, joint stock company, business trust or unincorporatedorganization.
(28)“Stockholders’ equity” means the aggregate of paid-in capital and retainedearnings of an institution or Oregon stock savings bank.
(29)“Trust business” means:
(a)Acting as a trustee of a trust;
(b)Acting as a fiduciary, as defined in ORS 125.005;
(c)Acting as a personal representative, as defined in ORS 111.005;
(d)Acting as a receiver, trustee or assignee for the benefit of creditors; or
(e)Acting in a court-appointed position of trust or any other position of trust. [1973c.797 §2; 1975 c.193 §1; 1975 c.725 §1; 1983 c.37 §1; 1985 c.12 §1; 1985 c.451 §1;1985 c.627 §3; 1985 c.762 §16; 1987 c.373 §47; 1987 c.371 §1; 1987 c.445 §7;1991 c.331 §109; 1993 c.229 §1; 1993 c.318 §6; 1993 c.744 §22; 1995 c.313 §1;1997 c.631 §1; 1999 c.107 §1; 2001 c.377 §45; 2005 c.348 §123]
706.008Additional definitions for Bank Act. As used in the Bank Act, unless thecontext requires otherwise:
(1)“Bank” means a company, other than an extranational institution, that acceptsdeposits insured to any extent by the Bank Insurance Fund under the provisionsof the Federal Deposit Insurance Act, as amended, 12 U.S.C. 1811, et seq.
(2)“Bank holding company” means any company that is a bank holding company underthe federal Bank Holding Company Act of 1956, as amended, 12 U.S.C. 1841, etseq.
(3)“Bank service corporation” means a corporation, all of the capital stock ofwhich is owned by one or more banking institutions or national banks, that isorganized to perform services authorized by ORS 708A.145.
(4)“Banking institution” means an Oregon commercial bank, an Oregon trust companyor an Oregon savings bank.
(5)“Company” means an entity that is a company under the federal Bank HoldingCompany Act of 1956, as amended, 12 U.S.C. 1841, et seq.
(6)“Extranational institution” means a corporation, unincorporated company,partnership or association of two or more persons organized under the laws of anation other than the United States, any territory of the United States, PuertoRico, Guam, American Samoa or the Virgin Islands, that engages directly in abanking business.
(7)“Federal bank” means a national bank or any other bank organized under the lawsof the United States.
(8)“Federal savings bank” means a corporation chartered as a federal savings bankunder the provisions of 12 U.S.C. 1464.
(9)“Financial holding company” means a company as referred to in section 103 ofthe federal Gramm-Leach-Bliley Act (P.L. 106-102).
(10)“Financial institution” means insured institutions, extranational institutions,credit unions as defined in ORS 723.006, out-of-state credit unions under ORS723.042 and federal credit unions.
(11)“In-state federal stock bank” means a federal bank that issues capital stock,the home state of which is Oregon.
(12)“Institution” means an Oregon commercial bank or an Oregon trust company.
(13)“Insured institution” means a company, the deposits of which are insured underthe provisions of the Federal Deposit Insurance Act, as amended, 12 U.S.C.1811, et seq.
(14)“Insured nonstock institution” means an insured institution that does not issuecapital stock.
(15)“Insured stock institution” means an insured institution that issues capitalstock.
(16)“National bank” means a bank that was organized under the provisions of theNational Bank Act, as amended, 12 U.S.C. 21, et seq.
(17)“Non-Oregon institution” means:
(a)An out-of-state state bank engaging in banking business in Oregon;
(b)An out-of-state trust company transacting trust business in Oregon; and
(c)An extranational institution engaging in banking business in Oregon.
(18)“Nonstock bank” means a bank that does not issue capital stock.
(19)“Oregon bank” means an Oregon stock bank or Oregon nonstock bank.
(20)“Oregon commercial bank” means an Oregon stock bank that was chartered underORS chapter 707 as a bank other than a stock savings bank.
(21)“Oregon nonstock bank” means a state nonstock bank, the home state of which isOregon.
(22)“Oregon operating institution” means:
(a)A bank that is engaging in banking business in this state;
(b)An extranational institution that is engaging in banking business in thisstate; or
(c)A trust company that is transacting trust business in this state.
(23)“Oregon savings bank” or “savings bank” means an Oregon stock savings bank oran Oregon nonstock bank.
