Department of Consumer and Business Services, Division of Finance and Corporate Securities, Chapter 441
Rule Caption: Establishes process for master trustee to calculate trust fund balance at least twice each year.
Adm. Order No.: FCS 6-2012
Filed with Sec. of State: 11-9-2012
Certified to be Effective: 11-9-12
Notice Publication Date: 10-1-2012
Rules Adopted: 441-930-0085
Rules Amended: 441-930-0010
Subject: This rule implements Section 10 of the 2012 Oregon Laws ch. 7 (Enrolled House Bill 4117). HB 4117 requires the Director of the Department of Consumer and Business Services to create a process, by rule, to allow a master trustee to calculate the balance of trust fund deposits at least two times each year. The permanent rules establish the two dates when a master trustee must calculate the value of the trust fund in order to recover expenses from earnings, in line with statutory requirements. The proposed rules also require some form of written notice to the Director that the master trustee chooses to recover expenses from the trust fund earning for the calendar year.
Rules Coordinator: Shelley Greiner—(503) 947-7484
In addition to the definitions in ORS 97.010 and 97.923, the following definitions apply to OAR 441-930-0010 to 441-930-0360:
(1) “Applicant” means an entity applying to the director for a certification concerning prearrangement plans or for a registration to serve as a master trustee.
(2) “Director” means the Director of the Department of Consumer and Business Services.
(3) “Limited Operations Certified Provider” means a certified provider responsible for administering 10 or fewer prearrangement or preconstruction sales contracts which have a cumulative value of less than $20,000.
(4) “Registrant” means an entity holding a registration for a master trustee, issued by the director.
(5) “Trust Agreement” means any agreement governing a trust fund established to receive the proceeds of a prearrangement or preconstruction plan and administered by a registered master trustee.
(6) “Trust fund balance” means the total of all prearrangement or preconstruction contract payments provided through certified providers, installment payments, plus the earnings of the trust fund through investments. Both deposits and accumulated earnings become part of the principal of the trust fund for the subsequent year.
(7) “Unconscionable tactics” include, but are not limited to, actions by which a person:
(a) Knowingly takes advantage of a customer’s physical infirmity, ignorance, illiteracy or inability to understand the language of the agreement; or
(b) Knowingly permits a customer to enter into a transaction from which the customer will derive no material benefit.
Stat. Auth.: ORS
Stats. Implemented: ORS 97.926
Hist.: DO 1-2002, f. & cert. ef. 1-10-02; Renumbered from 440-300-0010; FCS 3-2004, f. & cert. ef. 9-30-04; FCS 2-2006, f. & cert. ef. 2-22-06; FCS 5-2007, f. 10-11-07, cert. ef. 1-1-08; FCS 14-2010, f. 12-30-10, cert. ef. 1-1-11; FCS 6-2012, f. & cert. ef. 11-9-12
Calculation of Trust Fund Deposit Earnings
If a master trustee elects to pay administrative fees and expenses, as described in ORS 97.943(9), from earnings on trust fund deposits for administrative fees, the master trustee or the certified provider shall calculate the principal amount of the trust fund in accordance with this rule.
(1) A master trustee or certified provider must calculate the allowable amount of earnings available by determining the principal amount of the trust fund on January 1 and on July 1 of the calendar year in which the earnings are appropriated for administrative expenses.
(2) By January 1 of each calendar year, a master trustee must submit, in a form and format fixed by the director, notice that the master trustee elects to pay administrative fees and expenses from the trust fund balance.
(3) By July 31 each calendar year, a master trustee must submit, in a form and format fixed by the director, the following calculations:
(a) The principal amount of the trust fund as of January 1;
(b) Two percent of the principal amount of the trust fund as of January 1;
(c) The principal amount of the trust fund as of July 1;
(d) Two percent of the principal amount of the trust fund as of July 1;
(4) The calculation completed under subsection (3)(d) of this rule shall be the maximum amount of earnings on the principal amount of the trust fund that may be appropriated for administrative expenses.
Stat. Auth.: ORS
Stats. Implemented: ORS 97.935
Hist.: FCS 6-2012, f. & cert. ef. 11-9-12
Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • firstname.lastname@example.org
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