OAG 40-34.

• Case Date: August 15, 1940
• Court: Oregon

Oregon Attorney General Opinions 1940. OAG 40-34. 40OPINION NO. 40-34[20 Or. Op. Atty. Gen. 40]Statutory time within which action may be brought on a broker's bond may be changed by subsequent legislation.August 15, 1940.Mr. Lloyd R. Smith,Corporation Commissioner. Dear Sir: Under date of August 8, 1940, you ask:

"Where a broker's bond was posted with this office under the old blue sky law (Chapter XIII, Title XXV, Oregon Code 1930), and more than three years have elapsed since the broker's permit was cancelled, is it possible now to bring an action against the surety based upon the violation of, or noncompliance with any provision of the aforementioned blue sky law during the time such broker's permit was in force and before the bond was cancelled?"

Section 25-1309, Oregon Code 1935 Supplement, which is part of chapter XIII of Title XXV, known as the blue sky law, provides that no broker shall in the state of Oregon sell or offer for sale any security or by advertisement or otherwise profess to engage in the business of selling or offering for sale any securities unless and until such broker shall have secured from the corporation commissioner of the state of Oregon a permit to do business as a broker and pay the filing fee therein provided, in addition to which he shall file a corporate surety bond, executed by a surety company satisfactory to the corporation commissioner, in the sum of not less than $5,000 nor more than $10,000 in the discretion of the commissioner. Section 25-1309a provides the form of bond to be furnished by a broker, and section 25-1309b provides:

"Any person who has suffered damage through violation of the terms and conditions of the bond set forth in the foregoing section hereby is authorized to institute an action against the principal and the surety upon said bond, or either of them, on his own relation, but in the name of the state of Oregon, and may maintain such action in behalf of the person suffering such damage. Before any individual may maintain an action on his own relation upon the said bond, he must first obtain the consent of the corporation commissioner thereto."

These sections were repealed by chapter 397, Oregon Laws, 1939, which contains other provisions relating to the licensing of broker's and the furnishing of a bond by same. Section 33 of said act provides:

"This act shall take effect

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