Oregon Statutes - Chapter 59 - Securities Regulation; Mortgage Bankers and Brokers

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59.005 Short title.
ORS 59.005 to 59.451, 59.991 and 59.995 may be cited as the Oregon Securities Law. [1967 c.537 §2]
59.010 [Repealed by 1967 c.537 §36]
59.015 Definitions for Oregon Securities Law.
As used in the Oregon Securities Law, unless the context otherwise requires: (1) “Broker-dealer” means a person who engages, all or part of the time,...
59.020 [Repealed by 1967 c.537 §36]
59.025 Securities exempt from registration.
The following securities are exempt from ORS 59.049 and 59.055: (1)(a) A security issued or guaranteed by the United States or by a state, a...
59.030 [Repealed by 1967 c.537 §36]
59.035 Transactions exempt from registration.
The following transactions are exempt from ORS 59.049 and 59.055 if they are not part of an attempt to evade fraudulently any provision of the...
59.045 Authority of director to deny, withdraw or condition exemptions.
(1) The Director of the Department of Consumer and Business Services may by rule or order, as to any security or any type of security...
59.047 [1981 c.292 §2; 1985 c.349 §5; repealed by 1987 c.603 §30]
59.049 Federal covered securities exempt from registration; notice filings; fees; rules.
Federal covered securities may be offered and sold in this state without registration, subject to the following: (1) Unless otherwise exempt from registration under ORS...
59.050 [1981 c.292 §3; 1985 c.349 §6; repealed by 1987 c.603 §30]
59.051 Statutory references to federal law.
References in ORS 59.005 to 59.451, 59.991 and 59.995 to federal statutes or federal regulations shall be construed to refer to those statutes or regulations...
59.052 [1981 c.292 §4; 1985 c.349 §7; repealed by 1987 c.603 §30]
59.055 Conditions of offer and sale of securities.
It is unlawful for any person to offer or sell any security in this state, unless: (1) The security is registered and the offer or...
59.065 Registration procedures; application; fees; rules.
(1) The Director of the Department of Consumer and Business Services by rule shall establish procedures for registering securities. The director may coordinate registration in...
59.070 Amended registration application; when required; fees.
(1) A registrant under ORS 59.065 shall amend the registration application submitted under ORS 59.065 when there are material changes in the terms and conditions...
59.075 Registration by director; expiration; renewal; fee; rules.
(1) The Director of the Department of Consumer and Business Services shall register the securities unless the director finds that registration should be denied on...
59.078 [1973 c.366 §8; repealed by 1987 c.603 §30]
59.085 Conditions imposed on registration.
The Director of the Department of Consumer and Business Services may, by rule or order, impose on a registration such conditions, limitations and restrictions as...
59.095 Approval of plan to issue securities in exchange for other securities, claims or property.
(1) The proponents of a plan pursuant to which a security is to be issued in exchange for one or more bona fide outstanding securities,...
59.105 Denial, suspension or revocation of registration.
(1) Except as provided in subsection (2) of this section, the Director of the Department of Consumer and Business Services may by order deny, suspend...
59.110 [Amended by 1953 c.690 §3; 1955 c.201 §1; 1957 c.47 §1; 1963 c.244 §1; 1965 c.241 §2; repealed by 1967 c.537 §36]
59.115 Liability in connection with sale or successful solicitation of sale of securities; recovery by purchaser; limitations on proceeding; attorney fees.
(1) A person is liable as provided in subsection (2) of this section to a purchaser of a security if the person: (a) Sells or...
59.120 [Amended by 1955 c.196 §1; 1957 c.116 §1; 1963 c.244 §2; repealed by 1967 c.537 §36]
59.125 Effect of notice of offer to repay purchaser; exceptions; registration of transaction.
(1) Except as provided in subsection (3) of this section, no action or suit may be commenced under ORS 59.115 if the purchaser has received...
59.127 Liability in connection with purchase or successful solicitation of purchase of securities; recovery by seller; limitations on proceeding; attorney fees.
(1) A person is liable as provided in subsection (2) of this section to the person selling the security, if the person: (a) Purchases or...
59.130 [Amended by 1953 c.549 §138; repealed by 1967 c.537 §36]
59.131 Effect of notice of intent to return unlawfully purchased security; contents of notice; registration of transaction.
(1) Except as provided in subsection (3) of this section, no action or suit may be commenced under ORS 59.127 if the seller has received...
59.135 Fraud and deceit with respect to securities or securities business.
It is unlawful for any person, directly or indirectly, in connection with the purchase or sale of any security or the conduct of a securities...
59.137 Liability in connection with violation of ORS 59.135; damages; defense; attorney fees; limitations on proceeding.
(1) Any person who violates or materially aids in a violation of ORS 59.135 (1), (2) or (3) is liable to any purchaser or seller...
59.140 [Repealed by 1967 c.537 §36]
59.145 Effect of notice filing, registration or license.
(1) Neither the fact that a notice filing or an application for registration or a license under the Oregon Securities Law has been filed nor...
59.150 [Amended by 1957 c.45 §1; repealed by 1967 c.537 §36]
59.155 Director is agent for service of process; manner of service; exceptions.
(1) The Director of the Department of Consumer and Business Services shall be an agent for the following persons upon whom may be served at...
59.160 [Repealed by 1967 c.537 §36]
59.165 Licensing of broker-dealers, investment advisers and salespersons required; rules.
(1) It is unlawful for any person to transact business in this state as a broker-dealer or salesperson unless the person is licensed under the...
59.170 [Amended by 1961 c.352 §1; repealed by 1967 c.537 §36]
59.175 Procedures for notice filing and licensing; rules; examination; bond, letter of credit or other security; filing trade name or assumed business name; fees.
(1) The Director of the Department of Consumer and Business Services by rule shall establish procedures for notice filings required of federal covered investment advisers...
59.180 [Amended by 1957 c.48 §1; repealed by 1967 c.537 §36]
59.185 Expiration of license; rules for renewal; change in personnel.
(1) Every license of a broker-dealer or state investment adviser expires one year after the date of issuance unless the Director of the Department of...
59.190 [Repealed by 1967 c.537 §36]
59.193 [1973 c.366 §9; 1975 c.491 §3; 1985 c.349 §19; repealed by 1987 c.603 §30]
59.195 Licensees to keep records; inspection; filing of financial reports.
(1) Subject to the provisions of section 15 of the Securities Exchange Act of 1934, as amended, and section 222 of the Investment Advisers Act...
59.200 [Amended by 1955 c.198 §1; 1957 c.58 §1; 1959 c.280 §1; repealed by 1967 c.537 §36]
59.205 Grounds for denying, suspending, revoking or imposing condition or restriction on license.
Except as provided in ORS 59.215, the Director of the Department of Consumer and Business Services may by order deny, suspend or revoke, or impose...
59.210 [Amended by 1955 c.179 §1; repealed by 1963 c.244 §3 (59.211 enacted in lieu of 59.210)]
59.211 [1963 c.244 §4 (enacted in lieu of 59.210); repealed by 1967 c.537 §36]
59.215 Action against applicant or licensee for act or omission of associate; exceptions.
The Director of the Department of Consumer and Business Services may enter an order against the applicant or licensee under ORS 59.205 if any partner,...
59.220 [Repealed by 1967 c.537 §36]
59.225 Cancellation of license or application; application for withdrawal; effect of suspension or revocation.
(1) If the Director of the Department of Consumer and Business Services finds that an applicant or licensee has ceased to do business as a...
59.230 [Repealed by 1967 c.537 §36]
59.235 General supervision over persons dealing in securities.
Subject to section 18 of the Securities Act of 1933, as amended, section 15 of the Securities Exchange Act of 1934, as amended, and sections...
59.240 [Repealed by 1955 c.198 §2]
59.245 Investigations; publicity with respect to violations; cease and desist order.
The Director of the Department of Consumer and Business Services: (1) May make such public or private investigations within or outside this state as the...
59.250 [Amended by 1963 c.244 §5; repealed by 1967 c.537 §36]
59.255 Enjoining violations; fine; appointment of receiver; attorney fees; damages to private parties.
(1) Whenever it appears to the Director of the Department of Consumer and Business Services that a person has engaged, is engaging or is about...
59.260 [Repealed by 1967 c.537 §36]
59.265 Procedure when assets or capital of broker-dealer or investment adviser found impaired; involuntary liquidation.
(1) When the Director of the Department of Consumer and Business Services ascertains that the assets or capital of any broker-dealer not otherwise registered under...
59.275 Burden of proof.
It is not necessary to negative any of the exemptions or classifications provided in the Oregon Securities Law in a complaint, action, information, indictment or...
59.285 Rules; financial statements.
(1) In accordance with this section and ORS chapter 183 the Director of the Department of Consumer and Business Services may from time to time...
59.295 Notice of orders; hearings on orders.
(1) Except as provided in ORS 183.745, upon the entry of an order under the Oregon Securities Law, the Director of the Department of Consumer...
59.305 Judicial review of orders.
(1) A person aggrieved by an order of the Director of the Department of Consumer and Business Services which has been the subject of a...
59.310 [Amended by 1957 c.46 §1; 1961 c.352 §2; 1963 c.244 §6; repealed by 1967 c.537 §36]
59.315 Oaths and subpoenas in proceedings before director.
(1) For the purpose of an investigation or proceeding under the Oregon Securities Law, the Director of the Department of Consumer and Business Services may...
59.320 [Amended by 1961 c.352 §3; repealed by 1967 c.537 §36]
59.325 Certified copies of documents; fee; effect of certification.
(1) The Director of the Department of Consumer and Business Services shall furnish to any person, upon payment of a fee established by rule, copies...
59.330 [Amended by 1961 c.280 §6; repealed by 1967 c.537 §36]
59.331 Scope of Attorney General powers; consent of director; powers of circuit court; damages, restitution, disgorgement and other penalties.
(1) Subject to subsection (2) of this section and after providing notice and an opportunity to participate to the Director of the Department of Consumer...
59.335 Application of certain sections.
(1) ORS 59.055, 59.115, 59.125, 59.145 and 59.165 (1) apply to persons who sell or offer to sell when: (a) An offer to sell is...
59.340 [Amended by 1963 c.244 §7; repealed by 1967 c.537 §36]
59.345 When offer to sell or buy is made in this state.
(1) For the purpose of ORS 59.335, an offer to sell or to buy is made in this state, whether or not either party is...
59.350 Treatment of certain transactions.
For purposes of ORS 59.005 to 59.451, 59.710 to 59.830, 59.991 and 59.995: (1) A transaction with a husband and wife is treated as a...
59.355 Corporations subject to other laws.
Nothing in the Oregon Securities Law relieves a corporation from making reports required by law to be made to the Director of the Department of...
59.365 Common-law and statutory rights not limited.
Nothing in the Oregon Securities Law limits any statutory or common-law right of a person to bring an action in any court for an act...
59.370 Limitation on liability for good faith act or omission; reports regarding salespersons or investment adviser representatives; limitation on liability related to reports; rules.
(1) Provisions of the Oregon Securities Law imposing civil or criminal liability do not apply to an act done or omitted in good faith in...
59.375 [1967 c.537 §34; repealed by 1987 c.603 §30]
59.405 [1971 c.641 §3; 1975 c.491 §4; repealed by 1987 c.603 §30]
59.410 [Repealed by 1967 c.537 §36]
59.415 [1971 c.641 §4; 1981 c.897 §11; repealed by 1987 c.603 §30]
59.420 [Repealed by 1967 c.537 §36]
59.425 [1971 c.641 §5; repealed by 1987 c.603 §30]
59.430 [Repealed by 1967 c.537 §36]
59.435 [1971 c.641 §6; 1981 c.897 §12; repealed by 1987 c.603 §30]
59.440 [Repealed by 1967 c.537 §36]
59.445 [1971 c.641 §7; repealed by 1987 c.603 §30]
59.450 [Repealed by 1967 c.537 §36]
59.451 Prohibition against filing false statement by person under investigation or examination.
It is unlawful for any person who is the subject of an investigation under ORS 59.245 or examination under ORS 59.235, directly or indirectly, to...
59.510 [Repealed by 1967 c.537 §36]
59.520 [Repealed by 1967 c.537 §36]
59.530 [Repealed by 1967 c.537 §36]
59.535 Definitions for ORS 59.535 to 59.585.
For the purposes of ORS 59.535 to 59.585, unless the context otherwise requires: (1) “Beneficiary form” means a registration of a security which indicates the...
59.540 Registration in beneficiary form; sole or joint tenancy ownership.
Only individuals whose registration of a security shows sole ownership by one individual or multiple ownership by two or more with right of survivorship, rather...
59.545 Registration in beneficiary form; applicable law.
A security may be registered in beneficiary form if the form is authorized by this or a similar statute of the state of organization of...
59.550 Origination of registration in beneficiary form.
A security, whether evidenced by certificate or account, is registered in beneficiary form when the registration includes a designation of a beneficiary to take the...
59.555 Form of registration in beneficiary form.
Registration in beneficiary form may be shown by the words “transfer on death” or the abbreviation “TOD,” or by the words “pay on death” or...
59.560 Effect of registration in beneficiary form.
The designation of a TOD beneficiary on a registration in beneficiary form has no effect on ownership until the owner’s death. A registration of a...
59.565 Ownership on death of owner.
On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the...
59.570 Protection of registering entity.
(1) A registering entity is not required to offer or to accept a request for security registration in beneficiary form. If a registration in beneficiary...
59.575 Nontestamentary transfer on death.
(1) A transfer on death resulting from a registration in beneficiary form is effective by reason of the contract regarding the registration between the owner...
59.580 Terms, conditions and forms for registration.
(1) A registering entity offering to accept registrations in beneficiary form may establish the terms and conditions under which it will receive requests for registrations...
59.585 Short title; rules of construction.
(1) ORS 59.535 to 59.585 shall be known as and may be cited as the Uniform TOD Security Registration Act. (2) ORS 59.535 to 59.585...
59.610 [Repealed by 1967 c.537 §36]
59.620 [Repealed by 1967 c.537 §36]
59.660 [Repealed by 2007 c.661 §28]
59.670 [Amended by 1981 c.897 §13; 1995 c.618 §35; repealed by 2007 c.661 §28]
59.680 [Amended by 1971 c.200 §5; 1973 c.794 §14; repealed by 2007 c.661 §28]
59.690 [Repealed by 2007 c.661 §28]
59.700 [Repealed by 2007 c.661 §28]
59.710 Definitions for ORS 59.710 to 59.830.
As used in ORS 59.710 to 59.830, unless the context indicates otherwise: (1) “Security,” “securities” or “securities or commodities,” mean and include all evidences of...
59.720 Application of ORS 59.710 to 59.830 to real estate contracts and brokers.
The provisions of ORS 59.710 to 59.830 shall not apply to any contract, agreement, sale, purchase, lease, conveyance or mortgage pertaining to real estate situated...
59.730 Making contract involving securities without intending a bona fide sale or purchase.
No person, whether acting in the person’s own right, or as the officer, agent, servant, correspondent or representative of another, shall, as broker make or...
59.740 Conducting bucket shop or repeatedly making forbidden contracts.
No person shall as owner, keeper, proprietor or person in charge of, or as officer, director, stockholder, agent, servant, correspondent or representative of any person,...
59.750 Receipt or communication of prices for purpose of forbidden contract.
No person shall receive, communicate, exhibit or display in any manner any statement of quotations or prices of securities or commodities with an intent to...
59.760 Reporting false sale of securities with intent to deceive.
No person shall, with intent to deceive, report or publish, or cause to be reported or published as a purchase or sale of stocks or...
59.770 Manipulating market by pretended sales.
No person shall inflate, depress or cause fluctuations in, or attempt to inflate, depress or cause fluctuations in, or combine or conspire with any other...
59.780 Broker’s trading against customer’s order; violation of ORS 59.780 to 59.800 by member of broker’s firm.
(1) No broker, employed by a customer to buy and carry upon margin stocks or bonds, while acting as broker for the customer in respect...
59.790 Insolvent broker-dealer receiving securities from customer.
No broker-dealer engaged in the business of purchasing and selling stocks or bonds as a broker-dealer, knowing that the broker-dealer is insolvent, shall accept or...
59.800 Pledge or sale by broker-dealer of customer’s securities.
No broker-dealer engaged in the business of purchasing and selling stocks or bonds as a broker-dealer shall: (1) While having in the possession of the...
59.810 Delivery to customer of true statement of purchase or sale made by broker.
No person engaged in the business of purchasing or selling stocks or bonds as a broker shall refuse to deliver to each customer on whose...
59.820 Actions against corporation for second violation.
(1) If a domestic corporation is convicted of a second offense under ORS 59.730 to 59.810, the circuit court has jurisdiction over an action by...
59.830 Self-incrimination by witness; immunity from prosecution.
No person shall be excused from attending and testifying, or producing any book, paper or other document before any court or magistrate, upon any trial,...
59.840 Definitions for ORS 59.840 to 59.980.
As used in ORS 59.840 to 59.980: (1) “Director” means the Director of the Department of Consumer and Business Services. (2) “Fraud,” “deceit” and “defraud”...
59.845 License required to engage in residential mortgage transactions as mortgage banker or mortgage broker.
(1) It is unlawful for any person to engage in residential mortgage transactions in this state as a mortgage banker or mortgage broker unless the...
59.850 Procedures for licensing; experience required; surety bond or letter of credit; fees; rules.
(1) The Director of the Department of Consumer and Business Services by rule shall establish procedures for licensing mortgage bankers or mortgage brokers. The director...
59.855 Expiration of license; renewal; duration of renewed license; change in personnel; rules.
(1) The initial license of a mortgage banker or mortgage broker expires one year after the date of issuance unless the Director of the Department...
59.860 Licensees to keep records; inspection; filing of financial reports.
(1) Every mortgage banker and mortgage broker shall make and keep such accounts, correspondence, memoranda, papers, books and other records as the Director of the...
59.865 Grounds for denying, suspending, conditioning or revoking license.
Except as provided in ORS 59.870, the Director of the Department of Consumer and Business Services may by order deny, suspend, condition or revoke a...
59.870 Action against applicant or licensee for act or omission of associate; exception.
The Director of the Department of Consumer and Business Services may enter an order against the applicant or licensee under ORS 59.865 if any partner,...
59.875 Cancellation of license or application; application for withdrawal.
(1) If the Director of the Department of Consumer and Business Services finds that an applicant or licensee has ceased to do business as a...
59.880 Supervisory authority of director over mortgage bankers, mortgage brokers and loan originators.
The Director of the Department of Consumer and Business Services shall have general supervision and control over all loan originators, mortgage bankers and mortgage brokers...
59.885 Investigations; publicity with respect to violations; cease and desist order.
The Director of the Department of Consumer and Business Services: (1) May make such public or private investigations within or outside this state as the...
59.890 Enjoining violations; fine; appointment of receiver; attorney fees; damages to private parties.
(1) Whenever the Director of the Department of Consumer and Business Services has reasonable cause to believe that a person has been engaged or is...
59.895 Procedures where assets or capital of mortgage banker or broker found impaired; involuntary liquidation.
(1) When the Director of the Department of Consumer and Business Services ascertains that the assets or capital of any mortgage banker or mortgage broker...
59.900 Rules; financial statements.
(1) In accordance with this section and ORS chapter 183, the Director of the Department of Consumer and Business Services may from time to time...
59.905 Notice of orders; hearings on orders.
(1) Except as provided in ORS 183.745, upon the entry of an order under ORS 59.840 to 59.980, the Director of the Department of Consumer...
59.910 Judicial review of orders.
(1) A person aggrieved by an order of the Director of the Department of Consumer and Business Services which has been the subject of a...
59.915 Oaths and subpoenas in proceedings before director.
(1) For the purpose of an investigation or proceeding under ORS 59.840 to 59.980, the Director of the Department of Consumer and Business Services may...
59.920 Copies of documents; fees; effect of certification.
(1) The Director of the Department of Consumer and Business Services shall furnish to any person, upon payment of a fee established by rule, copies...
59.925 Liability of mortgage banker or mortgage broker; recovery of damages; limitations on proceeding; action against bond or letter of credit; attorney fees.
(1) As used in this section, “mortgage banker transaction” and “mortgage broker transaction” mean a transaction in which a person, in order to engage in...
59.930 Fraud and deceit with respect to mortgage banker or broker business.
It is unlawful for any person, directly or indirectly, in connection with the conduct of a mortgage banker or mortgage broker business: (1) To employ...
59.935 Clients’ Trust Account; examination; deposit of funds; interest; rules.
(1) Each mortgage banker or mortgage broker shall maintain in this state one or more separate bank accounts that shall be designated a Clients’ Trust...
59.940 Notice to bank regarding Clients’ Trust Account.
(1) Each mortgage banker or mortgage broker, at the time a Clients’ Trust Account is opened under ORS 59.935, shall provide the bank in which...
59.945 Prohibited advertisements.
A mortgage banker or mortgage broker shall not use or cause to be published any advertisement that: (1) Contains any false, misleading or deceptive statement...
59.950 Designation of principal place of business; other offices; change of personnel; registered agent.
(1) Every licensed mortgage banker and mortgage broker shall designate and maintain a principal place of business for the transaction of business. (2) If a...
59.955 Disclosure required before closing mortgage loan or mortgage banking loan.
Prior to the closing of any mortgage loan or any mortgage banking loan, the mortgage banker or mortgage broker shall supply the borrower with a...
59.960 Consultation with licensees before rules adopted.
Before adopting any rules under ORS 59.840 to 59.980, the Director of the Department of Consumer and Business Services shall consult with an equal number...
59.962 Servicing or collecting mortgage banking loan or mortgage loan by mortgage banker or mortgage broker.
(1) With the permission of the lender, note owner, note holder or other holder of an interest in a note, a mortgage banker or mortgage...
59.965 [1995 c.129 §5; renumbered 59.980 in 2001]
59.967 Legislative findings regarding loan originators; prohibited practice.
(1) The Legislative Assembly finds and declares that: (a) The public interest is served by identifying a loan originator with a specific mortgage banker or...
59.969 List of loan originators; qualifications; voluntary reporting; records; waiver; rules.
(1) A mortgage banker or mortgage broker must provide to the Director of the Department of Consumer and Business Services, and keep current, a list...
59.970 Qualifications for insurance licensees acting as loan originators.
(1) As used in this section, “loan originator” means an individual who: (a) Is an insurance producer or insurance consultant licensed under ORS 744.002; (b)...
59.971 Prohibited conduct for loan originators; effect of criminal conviction; rules.
(1) A person employed by a mortgage banker or mortgage broker as a loan originator may not: (a) Engage in dishonest, fraudulent or illegal practices...
59.972 Loan originator criminal records checks; rules.
(1) A mortgage banker or mortgage broker shall conduct a criminal records check of each individual who the mortgage banker or mortgage broker employs or...
59.973 Complaints against loan originators; investigation; hearing; rules; action by director.
(1) If the Director of the Department of Consumer and Business Services receives a complaint against a loan originator for a violation of ORS 59.967...
59.975 Continuing education requirements for loan originators; rules.
The Director of the Department of Consumer and Business Services shall, by rule, establish continuing education requirements for persons employed by mortgage bankers or mortgage...
59.977 Certification of organizations to provide training for loan originators; rules.
(1) The Director of the Department of Consumer and Business Services may certify an organization as qualified to approve or provide entry-level training or continuing...
59.980 Short title.
ORS 59.840 to 59.980 may be cited as the “Oregon Mortgage Lender Law.” [Formerly 59.965] PENALTIES
59.990 [Amended by 1955 c.180 §1; repealed by 1967 c.537 §36]
59.991 Criminal penalties for ORS 59.005 to 59.451 and 59.710 to 59.830; exceptions.
(1) Except as provided in subsection (3) of this section, violation of any provision of ORS 59.005 to 59.451, 59.710 to 59.830, 59.991 and 59.995...
59.992 Criminal penalties for ORS 59.840 to 59.980.
(1) Violation of any provision of ORS 59.840 to 59.980 or any rule adopted by the Director of the Department of Consumer and Business Services...
59.995 Civil penalties for ORS 59.005 to 59.451 and 59.710 to 59.830; exceptions.
(1) In addition to all other penalties and enforcement provisions provided by law, any person who violates or who procures, aids or abets in the...
59.996 Civil penalties for ORS 59.840 to 59.980.
(1) In addition to all other penalties and enforcement provisions provided by law, any person who violates or who procures, aids or abets in the...

Last modified: August 7, 2008

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Oregon Statutes - Chapter 59 - Securities Regulation; Mortgage Bankers and Brokers