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Can you summarize ORRS 709.280?
Regulation of Trust Business > Loans to directors, officers, employees or affiliates.
Short Summary
This section of the Oregon Revised Statutes governs loans made by trust companies to directors, officers, employees, or affiliates. It prohibits trust companies from making loans to these individuals or entities from their trust funds, unless specifically authorized by the terms of the trust. Additionally, officers, directors, or employees of a trust company are prohibited from knowingly violating this section or aiding others in doing so. However, the section allows trust companies to maintain time or demand deposits of their trust funds in an affiliate that is a bank or extranational institution, as long as certain requirements are met. The requirements include obtaining and setting aside bonds, surety bonds, and other securities in an amount equal to the portion of the trust funds not insured by the Federal Deposit Insurance Corporation.
Whom does it apply to?
Trust companies
What does it govern?
Loans to directors, officers, employees or affiliates
What are exemptions?
The maintenance of time or demand deposits of trust funds in an affiliate that is a bank or extranational institution, provided that the bank or extranational institution complies with the requirements of ORS 709.220 pertaining to obtaining and setting aside bonds, surety bonds, and other securities in an amount equal to the portion of the trust funds not insured by the Federal Deposit Insurance Corporation.
What are the Penalties?
Not specified
Jurisdiction
Oregon