ORS 709.170
Establishment of and investment in common trust funds

  • rules
  • accounting

(1)

“Common trust fund” as used in this section, means any fund maintained by a trust company exclusively for the collective investment and reinvestment of moneys contributed thereto by the trust company or an affiliated trust company as a fiduciary. For the purposes of this section, two or more trust companies are affiliated if they are members of the same affiliated group, within the meaning of section 1504 of the Internal Revenue Code.

(2)

A trust company may establish common trust funds for the purpose of furnishing investments to itself as fiduciary, to an affiliated trust company as fiduciary, or to itself or an affiliated trust company and others as cofiduciaries. A trust company may, as a fiduciary or cofiduciary, invest funds that it lawfully holds for investment, in interests in the common trust fund or a common trust fund of an affiliated trust company, if the investment is not prohibited by the instrument, judgment or order creating the fiduciary relationship, and if, in the case of cofiduciaries, the trust company procures the consent of its cofiduciary or cofiduciaries to the investment.

(3)

The Director of the Department of Consumer and Business Services, in accordance with ORS chapter 183, may adopt rules necessary to control the establishment and operation of common trust funds and to protect the investors. A trust company except a national bank that is qualified to conduct a trust business pursuant to the laws of the United States shall, in the operation of the common trust fund, comply with the rules.

(4)

Unless ordered by a court a trust company operating common trust funds is not required to render a court accounting with respect to the funds, but it may, upon application to the circuit court of the county in which it has its principal office in this state, obtain a settlement of its common trust fund accounts on conditions specified by the court. When application for the settlement is presented to a circuit court for approval, the circuit court shall assign a time and place for hearing and order notice thereof by:

(a)

Publication once a week for three successive publications, the first publication to be not less than 20 days prior to the date of hearing, of a notice in a newspaper having a general circulation in the county in which the trust company operating the common trust fund has its principal office;

(b)

Mailing, not less than 14 days prior to the date of the hearing, a copy of the notice to all beneficiaries of the trusts participating in the common trust fund whose names are known to the trust company from the records kept by it in the regular course of business in the administration of the trust, directed to them at the addresses shown by the records; and

(c)

Such further notice, if any, as the court may order. [Amended by 1953 c.258 §2; 1959 c.91 §1; 1963 c.56 §1; 1973 c.797 §196; 1973 c.823 §142; 1974 c.36 §25; 1983 c.367 §3; 1985 c.762 §41; 1997 c.631 §212; 2003 c.576 §546]

Source: Section 709.170 — Establishment of and investment in common trust funds; rules; accounting, https://www.­oregonlegislature.­gov/bills_laws/ors/ors709.­html.

709.005
Certificate of authority to transact trust business
709.015
Organization as limited liability company
709.030
Approval to transact trust business
709.040
Securities eligible for deposit
709.050
Trust companies depositing securities guaranteed by mortgage insurance and mortgage participation certificates
709.060
Primary liability of deposit
709.070
Right of action against deposit
709.080
Charges for handling securities
709.110
Deposit of documents with notes or bonds
709.120
Substitution of deposit securities
709.130
Indemnity bond when cash and securities of fiduciary account exceed stockholders’ equity or members’ equity in trust company
709.140
Return of deposit
709.145
Investment of capital
709.150
General powers of trust companies
709.160
Solicitation and performance of legal business
709.170
Establishment of and investment in common trust funds
709.175
Limitation on investment of trust funds
709.190
Trust department kept separate
709.200
Acquisition or investment of trust property in own name or name of nominee
709.210
Disclosure of fiduciary character or terms of trust instrument
709.220
Handling of funds awaiting investment or distribution
709.240
Oath and bond exemption for trust company appointed as fiduciary
709.270
Disclosure of communications and writings
709.280
Loans to directors, officers, employees or affiliates
709.290
Closing of trust unduly delayed
709.300
Transaction of trust business by national bank
709.330
Sale or transfer of assets or liabilities
709.335
Digital signatures
709.340
Trust company quitting business
709.350
Successor trustee upon liquidation or receivership
709.390
Discontinuance of trust business
709.400
Order to start court action
709.410
Termination of right to do trust business
709.420
Actions or suits on claims
709.430
Release or payment of deposit pending suit
709.440
Director’s charges as prior lien on deposit
709.450
Sale and disposition of securities to pay expenses, costs and claims
709.460
Application of ORS 709.390 to 709.450 to merger or consolidation
709.520
Conversion to out-of-state trust company
709.525
Merger or acquisition
709.530
Applicability of ORS 711.190, 711.197 and 711.199 to merging or converting trust company
709.535
Sale of assets or transfer of liabilities
709.540
Rights of stockholder of trust company party to merger, share exchange or acquisition
709.600
Regulation of trust business by corporations formed prior to adoption of Bank Act
709.980
Civil penalties
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