ORS 748.503
Investigation of society

  • notice of deficiencies
  • action by Attorney General
  • hearing

(1)

The Director of the Department of Consumer and Business Services shall notify the society of any deficiency or deficiencies, and state in writing the reasons for dissatisfaction, when the director, upon investigation, finds that a domestic society:

(a)

Has exceeded its powers;

(b)

Has failed to comply with any provisions of this chapter;

(c)

Is not fulfilling its contracts in good faith;

(d)

Has a membership of less than 400 after an existence of one year or more;

(e)

Is conducting business fraudulently or in a manner hazardous to its members, creditors, the public or the business; or

(f)

Has become impaired.

(2)

The director shall at once issue a written notice to the society requiring that the deficiency or deficiencies be corrected. After notice, the society shall have 30 days in which to comply with the director’s request for correction, and if the society fails to comply, the director shall notify the society of findings of noncompliance and require the society to show cause on a date named why it should not be enjoined from carrying on any business until the violation complained of has been corrected, or why an action in quo warranto should not be commenced against the society.

(3)

If on the date named the society does not present good and sufficient reasons why it should not be enjoined or why the action should not be commenced, the director may present the facts relating thereto to the Attorney General who shall, if the Attorney General deems the circumstances warrant, commence an action to enjoin the society from transacting business or an action in quo warranto.

(4)

The court shall notify the officers of the society of a hearing. If after a full hearing it appears that the society should be enjoined or liquidated or a receiver appointed, the court shall enter the necessary order. No society so enjoined shall have the authority to do business until:

(a)

The director finds that the violation complained of has been corrected;

(b)

The costs of the action have been paid by the society if the court finds that the society was in default as charged;

(c)

The court has dissolved its injunction; and

(d)

The director has reinstated the certificate of authority.

(5)

If the court orders the society liquidated, it shall be enjoined from carrying on any further business, and the receiver of the society shall proceed at once to take possession of the books, papers, money and other assets of the society and, under the direction of the court, proceed at once to close the affairs of the society and to distribute its funds to those entitled to them.

(6)

No action under this section shall be recognized in any court of this state unless the action is brought by the Attorney General on request of the director. Whenever a receiver is to be appointed for a domestic society, the court shall appoint the director as the receiver.

(7)

The provisions of this section relating to hearing by the director, action by the Attorney General at the request of the director, hearing by the court, injunction and receivership shall be applicable to a society which voluntarily determines to discontinue business. [1987 c.490 §31]

Source: Section 748.503 — Investigation of society; notice of deficiencies; action by Attorney General; hearing, https://www.­oregonlegislature.­gov/bills_laws/ors/ors748.­html.

748.103
Definitions
748.106
Description of fraternal benefit society
748.109
Conditions constituting “operating on a lodge system.”
748.112
Conditions constituting “representative form of government.”
748.121
Purposes, operation and powers
748.123
Membership
748.130
Principal office
748.133
Formation
748.136
Officers, governors, directors
748.139
Waiver of provisions by subordinate body
748.142
Amendment of society laws
748.144
Creation and operation of other organizations and entities
748.148
Consolidation and merger
748.171
Certificate of authority
748.174
Certificate of authority for foreign or alien society
748.177
Authorization as mutual life insurance company
748.181
Insurance producers
748.184
Reinsurance
748.201
Benefits
748.204
Beneficiaries
748.207
Benefits exempt from execution
748.211
Benefit contract
748.306
Authority for group benefit certificates
748.309
Group membership
748.312
Membership in lodges organized under ORS 748.309
748.316
Payments for group benefits
748.319
Group certificates issued by foreign or alien society or by domestic society in foreign or alien jurisdiction
748.322
Continuation of membership in society after cancellation, discontinuance or nonrenewal of group certificate
748.401
Value of benefit and amount of options
748.403
Standards of valuation for certificates
748.406
Financial statement
748.409
Assets of society
748.412
Investment of funds
748.414
Funds exempt from certain taxes
748.501
Examination
748.503
Investigation of society
748.506
Investigation of foreign or alien society
748.509
Validity of petition for injunction
748.601
Exemptions from chapter
748.603
Relationship to other insurance laws
748.605
Insurance against risk of loss under less than fully insured employee health benefit plan
748.990
Penalties
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