ORS 696.555
Commissioner to take possession of property and assets of escrow agent when assets or capital impaired
- appointment of receiver
(1)
When the Real Estate Commissioner ascertains by examination or otherwise that the assets or capital of any agent are impaired, as described in ORS 696.535 (Grounds for refusing, suspending or revoking license or reprimanding licensee) (1)(a), the commissioner may immediately take possession of all the property, business and assets of the agent which are located in this state and retain possession of them pending the further proceedings specified in this section.(2)
Pursuant to subsection (1) of this section, the commissioner may apply to the circuit court of the county in which the agent’s principal place of business is located for an order directing the agent to show cause why a receiver should not be appointed to take charge of and manage or liquidate if necessary the assets of the agent utilized in professional escrow activity in such a manner as to prevent or minimize such financial loss to others.(3)
If the court is satisfied from reading the commissioner’s petition that the facts therein alleged, if established, warrant such receivership action, the court shall issue such order to show cause. The court may at such time, without notice, issue a temporary injunction restraining such agent, or any of the agent’s officers, directors, stockholders, members, agents or employees, from the transaction of any professional escrow activity, or the waste or disposition of any such assets until further order of the court. Should such an injunction be issued, a hearing on whether the injunction shall be continued shall be held within five business days of its service.(4)
On return of the order to show cause, and after a full hearing, the court shall either deny the application or grant the same, together with such other relief as the court may deem necessary.(5)
Notwithstanding any other provision of law, no bond shall be required of the commissioner or the commissioner’s authorized representatives as a prerequisite for the issuance of any injunction or other order pursuant to this section.(6)
At any time during such proceedings, the agent may satisfy the court that the activity which prompted such proceedings has been rectified or that financial loss to others no longer will likely occur, in which case the court may dismiss such proceedings.(7)
The expenses of the receiver, compensation of the legal counsel of the receiver, as well as all expenditures of the receiver required in such proceedings shall be fixed by the court and shall be paid out of funds in the hands of the receiver or entered as a judgment against such licensee. [1963 c.440 §10(3),(4); 1975 c.746 §30; 1981 c.617 §29; 1991 c.874 §9; 2001 c.300 §40]
Source:
Section 696.555 — Commissioner to take possession of property and assets of escrow agent when assets or capital impaired; appointment of receiver, https://www.oregonlegislature.gov/bills_laws/ors/ors696.html.
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