(1) An Oregon operating institution shall be obligated to recognize an adverse claim to a deposit it holds only if the adverse claimant gives notice to the Oregon operating institution of its claim and:
(a) Procures a restraining order, injunction or other appropriate process against the Oregon operating institution in an action wherein the person to whose credit the deposit stands is made a party and served with summons; or
(b) Delivers to the Oregon operating institution in a form, and with sureties acceptable to the Oregon operating institution, a bond or an irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008, indemnifying the Oregon operating institution from any liability, damage and expenses on account of the payment of the adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands.
(2) This section does not apply where the person in whose name the account is carried is a fiduciary for the adverse claimant, and the affidavit of the adverse claimant states the facts constituting the fiduciary relationship and the facts showing reasonable cause of belief on the part of the claimant that the fiduciary is about to misappropriate the deposit.
(3) An Oregon operating institution may, at its option, interplead a deposit that is subject to an adverse claim. [1997 c.631 §168]Section: Previous 708A.400 708A.405 708A.410 708A.415 708A.420 708A.425 708A.430 708A.435 708A.440 708A.445 708A.450 708A.455 708A.460 708A.465 708A.470 Next
Last modified: August 7, 2008