(1) Except as provided in subsection (4) of this section, no person other than a trust company shall transact a trust business in this state. Except as provided in subsection (4) of this section, before a person transacts any trust business in this state, the person shall obtain the approval of the Director of the Department of Consumer and Business Services if required under ORS 709.005 and shall deposit with the director, as security and as a pledge for the faithful conduct of its trust business:
(a) Cash or interest-bearing securities that have a ready market value;
(b) A surety bond issued by a surety company authorized to transact business in this state and in a form approved by the director, under which the principal and surety indemnify the several owners of the fund held in trust against loss due to the failure of the trust company;
(c) An irrevocable letter of credit issued by an insured institution, as defined in ORS 706.008; or
(d) Any combination of cash, letters of credit, interest-bearing securities and surety bond.
(2) If the cash and securities held in trust amount to less than $1 million, the deposit, bond, letters of credit or combination thereof shall be $50,000. If the cash and securities held in trust amount to at least $1 million but do not exceed $1.5 million, the deposit, bond, letters of credit or combination thereof shall be $100,000. For each $500,000 or fraction thereof in excess of $1.5 million held in trust, the deposit, bond, or letters of credit or combination thereof shall be increased an additional $25,000, except a trust company shall not be required to increase the deposit, bond, letters of credit or combination thereof to an amount in excess of $1 million.
(3) The securities shall be deposited with the director and held by the director as trustee for the beneficiaries of the trust funds held by the trust company.
(4) A person shall not be required to be a trust company if the person:
(a) Does not and will not regularly transact trust business in the ordinary course of the person’s business;
(b) Acts in a manner authorized by law and in the scope of authority as an agent of a trust company;
(c) Is an attorney rendering a service customarily performed by an attorney;
(d) Is acting as trustee under a deed of trust;
(e) Is a licensed real estate broker or principal real estate broker rendering a service customarily performed by a broker;
(f) Is a licensed escrow agent rendering a service customarily performed by an escrow agent; or
(g) Is exempt from the provisions of subsection (1) of this section by rule of the director. [Amended by 1957 c.82 §1; 1967 c.139 §1; 1973 c.797 §183a; 1979 c.88 §12; 1981 c.192 §14; 1985 c.800 §1; 1991 c.331 §114; 1997 c.631 §203; 2001 c.300 §81; 2007 c.71 §228]
Section: Previous 709.005 709.010 709.015 709.020 709.030 709.040 709.050 709.060 709.070 709.080 709.090 709.100 709.110 709.120 709.130 NextLast modified: August 7, 2008