ORS 709.350
Successor trustee upon liquidation or receivership

  • appointment and qualification
  • petition by director
  • applicability of state laws

(1)

If a trust company goes into voluntary or involuntary liquidation or receivership, the appointment of a successor trustee for the trust shall be handled by the court hearing the liquidation proceedings upon petition by the Director of the Department of Consumer and Business Services, the trust company, any interested person or, in the case of a federal bank or extranational institution, by its receiver or liquidating agent.

(2)

Upon the filing of the petition, the court shall order all persons interested in any trust to designate and take all necessary steps to appoint a successor trustee within a time fixed in the order, or to show cause why a successor trustee should not be appointed by the court. The order may be general in its terms and need not designate the trusts involved or the nature, purpose or extent of the trusts, or give the name of any of the beneficiaries or interested persons.

(3)

In a trust where those interested in the trust fail to cause a successor trustee to be appointed prior to the time fixed in the order, the court shall appoint a successor trustee.

(4)

The successor trustee shall succeed to all the rights, powers, and obligations of the trust company in liquidation, except claims or liabilities arising out of the management of trusts prior to the date of transfer.

(5)

A copy of the order provided for in subsection (2) of this section shall be published once a week for four successive weeks in a newspaper of general circulation to be designated by the court and published in the county in which the liquidation proceedings of the trust company are carried on. If there is no newspaper published in the county, or if the court conducting the liquidation proceedings is located outside this state, publication shall be made in a newspaper of general circulation in the State of Oregon designated by the court. Proof of publication shall be made in the same manner as proof of publication of summons is made.

(6)

The filing of the petition and the making and entering of the order and the publishing of a copy of the order, gives the court full jurisdiction of the trusts and all parties interested in the trusts. A court having jurisdiction shall require the director to mail, by registered mail or by certified mail with return receipt, postage prepaid, a copy of the order to each living trustor of all private trusts in which the trust company is trustee or to the then directly participating beneficiaries of all private trusts in which there is no living trustor. The notice shall be mailed to the last-known address of each trustor or participating beneficiary as shown by the records of the trust company. Proof of mailing shall be in such form as the court may require. Failure to mail the notice or the nonreceipt of the notice by any trustor or participating beneficiary shall not affect the jurisdiction of the court or invalidate any order or judgment made in the proceedings.

(7)

It is unnecessary to require the appearance of minors or other incompetents by guardians ad litem or otherwise.

(8)

The provisions of subsections (2) to (6) of this section shall apply only to trust companies that are organized under the laws of this state and to trust companies that are the trust departments of banks having their principal places of business in this state. If any other trust company goes into voluntary or involuntary liquidation or receivership, the proceedings shall be governed by the laws of the state or country in which the proceedings are initiated. The director and any other interested person may participate in the proceedings. Any successor trustee appointed pursuant to the proceedings shall succeed to all the rights, powers and obligations of the trust company, except claims or liabilities arising out of the management of trusts prior to the date of transfer. [Amended by 1973 c.797 §208; 1991 c.249 §64; 1997 c.631 §220; 2003 c.576 §547]

Source: Section 709.350 — Successor trustee upon liquidation or receivership; appointment and qualification; petition by director; applicability of state laws, 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
Green check means up to date. Up to date