ORS Chapter 714 - Oregon Statutes

Chapter 714 — BranchBanking; Automated Teller Machines

 

2009 EDITION

 

 

BRANCHBANKING; AUTOMATED TELLER MACHINES

 

FINANCIALINSTITUTIONS

 

BRANCHBANKING

 

(Branchesof Banking Institutions)

 

714.015     Branchesnot in compliance with ORS 714.025 to 714.079 prohibited

 

714.025     Applicationrequired to establish branches in Oregon or outside of Oregon; fee; rules

 

714.035     Mobilebanking facilities; fee

 

714.045     Applicationto establish foreign branches; furnishing information; examination; rules

 

714.049     Investigatingapplications; soliciting comments

 

714.054     Approvalor disapproval of application; when application deemed approved

 

714.059     Certificateauthorizing branch to conduct business

 

714.064     Timeto commence business

 

714.069     Activitiesand powers at branches outside this state

 

714.075     Reportsof deposits held at branches

 

714.079     Closureand relocation of branches

 

(OregonBranches of Out-of-State Banks and Extranational Institutions)

 

714.095     Establishmentof branches by out-of-state banks in this state; powers and activities atbranches

 

714.105     Establishmentof branches by extranational institutions in this state; powers and activitiesat branches

 

AUTOMATEDTELLER MACHINES; NIGHT DEPOSIT FACILITIES

 

714.205     Disclosureof fees for ATM transaction; method; rules

 

714.210     Useof ATMs; verification; application of branch banking law

 

714.270     Prohibitionson use of ATM for banking information

 

714.280     Legislativeintent of ATM and night deposit facility law

 

714.285     Adoptionof procedures for evaluating safety of ATM or night deposit facilities

 

714.290     Deadlinesfor compliance with ORS 714.295

 

714.295     Lightingrequirements for ATMs and night deposit facilities

 

714.300     Issuanceof safety information to customers of ATMs and night deposit facilities

 

714.305     ExemptedATMs and night deposit facilities

 

714.310     Preemptionof local regulation

 

714.315     Creationof rebuttable presumption

 

PENALTIES

 

714.992     Criminalpenalty

 

714.995     Civilpenalty

 

      714.010 [Repealed by1973 c.797 §428]

 

BRANCHBANKING

 

(Branchesof Banking Institutions)

 

      714.015Branches not in compliance with ORS 714.025 to 714.079 prohibited. Bankinginstitutions shall not establish or maintain branches except as expresslyauthorized in ORS 714.025 to 714.079 and 714.995. [1997 c.631 §312]

 

      714.020 [Repealed by1973 c.797 §428]

 

      714.025Application required to establish branches in Oregon or outside of Oregon; fee;rules.(1) A banking institution may establish and operate one or more branches withinor outside the State of Oregon. The board of directors of a banking institutiondesiring to establish a branch shall file an application with the Director ofthe Department of Consumer and Business Services. The application shall be inthe form the banking institution is required to file with the Federal ReserveSystem or the Federal Deposit Insurance Corporation to establish a branch atsuch location, as the case may be, or in such other form as the director mayrequire. The application shall be accompanied by a $500 fee, which fee shallonly apply to the establishment of new branches and not to the acquisition orrelocation of existing branches. The director shall promptly advise the bankinginstitution if the application is incomplete or if the director requiresadditional information.

      (2)Mobile banking facilities described in ORS 714.035 and temporary branches areconsidered branches for purposes of this section. A temporary branch is abranch that operates for a period not to exceed 60 days, which period shall notbe extended. The application fee for a temporary branch shall be $100. Thedirector may establish rules regarding temporary branches.

      (3)Branches to be located in other countries or to be located in dependencies orinsular possessions of the United States are subject to the requirements ofthis section and ORS 714.045. [1997 c.631 §313]

 

      714.030 [Amended by1973 c.797 §321; 1975 c.725 §17; 1993 c.229 §15; repealed by 1997 c.631 §567]

 

      714.035Mobile banking facilities; fee. A banking institution may, inaccordance with ORS 714.025, establish one or more mobile facilities to engagein the banking business or to transact trust business. Mobile bankingfacilities may operate within the State of Oregon and in other states. Anapplication under ORS 714.025 shall not be required for mobile facilities thatexercise permissible powers or engage in permissible activities that do notconstitute engaging in the banking business or transacting trust business. Theapplication fee for each facility is $500. [1997 c.631 §314]

 

      714.040 [Amended by 1971c.68 §4; 1973 c.797 §322; 1975 c.544 §40a; 1977 c.135 §26; 1993 c.255 §2;repealed by 1997 c.631 §567]

 

      714.045Application to establish foreign branches; furnishing information; examination;rules.(1) A banking institution may establish branches in foreign countries ordependencies or insular possessions of the United States in accordance with ORS714.025 if it possesses stockholder’s equity of at least $1 million.

      (2)A banking institution operating such branches shall furnish informationconcerning the condition of the branches to the Director of the Department ofConsumer and Business Services upon demand.

      (3)The director may order special examinations of such branches.

      (4)The director may promulgate rules regarding such branches pursuant to ORS183.310, 183.315, 183.330, 183.335, 183.341 and 183.410. [1997 c.631 §315]

 

      714.049Investigating applications; soliciting comments. (1) TheDirector of the Department of Consumer and Business Services shall investigateeach application to establish a branch. With respect to applications coveringbranches to be located outside the State of Oregon, the director shall promptlyprovide the local bank supervisory agency or regulator with a copy of theapplication and an opportunity to comment on the application. The directorshall not be bound by any such comments.

      (2)In determining whether to approve or disapprove an application to establish abranch, the director shall consider such factors as the director deemsappropriate, including the likely impact of the branch on the safety andsoundness of the banking institution, the adequacy of the capital of thebanking institution, the institution’s record of complying with applicable law,and the results of supervisory examinations of the banking institution.

      (3)The director’s decision to disapprove an application is subject to appeal inthe manner provided in ORS 707.080 for the organization of an institution. [1997c.631 §316]

 

      714.050 [Amended by1973 c.797 §323; repealed by 1979 c.826 §1]

 

      714.054Approval or disapproval of application; when application deemed approved. With respect toapplications to establish branches in the State of Oregon or in a state outsideof the State of Oregon, the Director of the Department of Consumer and BusinessServices may approve or disapprove the application, provided however, thatfailure to disapprove an application within 30 days after receipt of a completeapplication shall be deemed an approval of the application. With respect toapplications by banking institutions to establish branches in foreign countriesor dependencies or insular possessions of the United States, the director mayapprove or disapprove an application, provided however, that failure todisapprove an application within 90 days after receipt of a completeapplication shall be deemed an approval of the application. [1997 c.631 §317]

 

      714.055 [1973 c.797 §324;repealed by 1979 c.826 §1]

 

      714.059Certificate authorizing branch to conduct business. Upon therequest of a banking institution, the Director of the Department of Consumerand Business Services shall issue and deliver a certificate authorizing eachapproved branch to conduct business. [1997 c.631 §318]

 

      714.060 [Amended by1973 c.797 §325; 1985 c.12 §7; 1993 c.229 §16; 1993 c.255 §3; repealed by 1997c.631 §567]

 

      714.064Time to commence business. A branch shall commence business within one yearafter the application for the branch has been approved or deemed approved bythe Director of the Department of Consumer and Business Services. The directormay extend the period within which the branch may open up to one additionalyear. If a branch fails to commence business within the year or any extensionof time granted by the director, the approval of the application shall bedeemed withdrawn and the branch may not open or operate. [1997 c.631 §319]

 

      714.065 [1973 c.797 §326;repealed by 1975 c.193 §13]

 

      714.069Activities and powers at branches outside this state. (1) A bankinginstitution may exercise the same powers and engage in the same activities at abranch or branches located in states outside this state as are permitted thebanking institution within this state.

      (2)A banking institution may exercise the same powers and engage in the sameactivities at a branch or branches located in foreign countries anddependencies or insular possessions of the United States as are permitted thebanking institution within this state and in addition may exercise suchadditional powers as are permitted to such branches under 12 C.F.R. 211.3(b),12 C.F.R. 347.3(c) and other applicable federal law. This subsection shall notbe construed to permit a banking institution that opens, occupies or maintainsone or more branches in a foreign country or dependency or insular possessionof the United States to use the branch or branches or engage in any activitieswithin this state that are not permitted to the banking institution under thelaws of this state. [1997 c.631 §320]

 

      714.070 [Repealed by1973 c.797 §428]

 

      714.075Reports of deposits held at branches. Upon the call for a report of conditionby the Director of the Department of Consumer and Business Services:

      (1)Each Oregon commercial bank and Oregon savings bank shall report to thedirector the total deposits held at each of its branches; and

      (2)Each non-Oregon institution and each federal bank that in either case holdsdeposits of the State of Oregon or any political subdivision thereof, or thatunderwrites bonds or other debt instruments issued by the state or anypolitical subdivision thereof, shall report to the director the total depositsheld at each of its branches located in the State of Oregon. [1997 c.631 §321]

 

      714.079Closure and relocation of branches. A banking institution may close andrelocate branches provided the banking institution provides the Director of theDepartment of Consumer and Business Services with a copy of any notice requiredunder 12 U.S.C. 1831r-1(a), or comparable federal law, at the time and in theform required by such law or laws. [1997 c.631 §322]

 

      714.080 [Amended by1973 c.797 §327; repealed by 1997 c.631 §567]

 

      714.090 [Amended by1971 c.68 §5; repealed by 1973 c.797 §428]

 

(OregonBranches of Out-of-State Banks and Extranational Institutions)

 

      714.095Establishment of branches by out-of-state banks in this state; powers andactivities at branches. (1) An out-of-state bank may occupy and maintainits initial branches in this state if and only if the branches are acquired bythe out-of-state bank in accordance with ORS chapters 711 and 713.

      (2)An out-of-state bank that is properly occupying and maintaining one or morebranches in Oregon in accordance with ORS chapters 711 and 713 may thereafteropen, occupy and maintain one or more additional branches in this state. Theout-of-state bank shall not be required to file an application under ORS714.025 to establish such additional branches.

      (3)An out-of-state bank that acquires branches in accordance with ORS chapters 711and 713 shall be entitled to exercise powers and engage in activities at itsbranches in this state as provided in ORS 713.010 and applicable federal law. [1997c.631 §324]

 

      714.100 [Amended by1963 c.195 §11; 1969 c.360 §1; 1973 c.797 §328; repealed by 1993 c.255 §4]

 

      714.105Establishment of branches by extranational institutions in this state; powersand activities at branches. (1) An extranational banking institution may occupyand maintain branches in this state as permitted by ORS chapter 713 andapplicable federal law.

      (2)An extranational banking institution may exercise powers and engage inactivities at branches located in this state as permitted by ORS chapter 713and applicable federal law. [1997 c.631 §325]

 

      714.110 [Amended by1973 c.797 §329; repealed by 1997 c.631 §567]

 

      714.120 [Repealed by1963 c.402 §11]

 

      714.130 [Amended by1973 c.797 §330; repealed by 1997 c.631 §567]

 

      714.133 [1993 c.229 §18;repealed by 1997 c.631 §567]

 

      714.135 [1993 c.229 §19;repealed by 1997 c.631 §567]

 

      714.140 [Amended by1973 c.797 §331; repealed by 1997 c.631 §567]

 

      714.150 [Amended by1973 c.797 §332; repealed by 1997 c.631 §567]

 

      714.160 [Amended by1973 c.797 §333; repealed by 1997 c.631 §567]

 

      714.170 [Amended by1973 c.797 §334; repealed by 1997 c.631 §567]

 

      714.180 [1991 c.31 §2;repealed by 1997 c.631 §567]

 

AUTOMATEDTELLER MACHINES; NIGHT DEPOSIT FACILITIES

 

      714.200 [1975 c.193 §11;1985 c.762 §45; 1993 c.381 §1; repealed by 1997 c.631 §567]

 

      714.205Disclosure of fees for ATM transaction; method; rules. (1) If theoperator of an ATM charges a fee to any person to use the ATM, the operatorshall disclose to persons using the ATM that a fee will be imposed for the ATMtransaction.

      (2)Subject to subsection (3) of this section, the disclosure required undersubsection (1) of this section shall be made electronically during the ATM transactionand shall allow the person who will be charged a fee to cancel the ATMtransaction without incurring a fee. The disclosure shall also be printed onthe ATM transaction receipt.

      (3)The Director of the Department of Consumer and Business Services may adoptrules conforming the disclosure requirements of subsection (2) of this sectionto disclosure requirements contained in:

      (a)Any law enacted by the Congress of the United States; or

      (b)Any regulation adopted by any federal agency having regulatory authority overATMs. [1997 c.631 §310b]

 

      714.210Use of ATMs; verification; application of branch banking law. (1) A bankinginstitution, through its own facilities or those of an entity described in ORS708A.160, may make available for use by its customers and others one or moreATMs. Every transaction initiated through an ATM shall be subject toverification by the banking institution either by direct wire transmission orotherwise.

      (2)ORS 714.025 does not apply to the establishment and maintenance of ATMs. [1975c.193 §3; 1993 c.381 §2; 1997 c.631 §309]

 

      714.220 [1975 c.193 §4;1993 c.381 §3; repealed by 1997 c.631 §567]

 

      714.230 [1975 c.193 §5;repealed by 1989 c.245 §1]

 

      714.240 [1975 c.193 §6;1979 c.810 §1; 1989 c.245 §2; 1993 c.381 §4; repealed by 1997 c.631 §567]

 

      714.250 [1975 c.193 §7;1979 c.810 §2; 1993 c.381 §5; repealed by 1997 c.631 §567]

 

      714.260 [1975 c.193 §8;1993 c.381 §6; repealed by 1997 c.631 §567]

 

      714.270Prohibitions on use of ATM for banking information. No person shalluse or attempt to use an ATM facility for the purpose of obtaining anyinformation concerning an account or line of credit other than the person’s ownaccount or line of credit without the prior approval of an authorized signer on