OAG 41-3.

Case Date:January 10, 1941
Court:Oregon
 
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Oregon Attorney General Opinions 1941. OAG 41-3. 160OPINION NO. 41-3[20 Or. Op. Atty. Gen. 160]Federal act relating to investment companies does not relieve foreign companies from obtaining Oregon license. Deposit required under Oregon laws is for benefit of residents of Oregon. January 10, 1941.Mr. Seth B. Thompson,Insurance Commissioner.Dear Sir: Pursuant to your letter of January 3, 1941, I have examined data in161 your file relating to the application of Investors Syndicate of America, Inc., a corporation, organized in the state of Minnesota, for a license pursuant to section 42-501, O. C. L. A., to transact the business of selling investment contracts having ultimate maturity, withdrawal, surrender or redemption values in the state of Oregon. You request my opinion whether the provisions of chapter 686, Third Session, 76th Congress, H. R. 10065 (chapter 2A, Title 15, 1940 Cumulative Annual Pocket Part, U. S. C. A.), are so in conflict with section 42-501, O. C. L. A., as to disqualify such a company as Investors Syndicate of America, Inc., for a license in Oregon, and whether the federal act vests in the Securities and Exchange Commission supervisory authority in general such as to conflict with the supervisory authority of the insurance commissioner of Oregon, and thus to preclude the insurance commissioner from exercising the supervision provided for in section 42-501, O. C. L. A., and thereby disqualify the company for a license in Oregon. Section 42-501, O. C. L. A., provides among other things, that any corporation transacting business in the state of Oregon on a plan whereby moneys are received in lump sums or in instalments and credited upon certificates and contracts with a fixed or guaranteed maturity, withdrawal, surrender or redemption value, and whereby the proceeds are credited upon such certificates or contracts, shall, together with its agents, dealers and securities, be subject exclusively to licensing, examination and regulation by the department of insurance of the state of Oregon in the manner provided by sections 46-105, 46-106, 46-111, 46-115, 46-116, 46-136, 46-138, 46-505 and 46-513, Oregon Code 1930, as amended, (§§ 101-105, 101-106, 101-111, 101-114, 101-116, 101-136, 101-138, 101-505 and 101-513, O. C. L. A.), so far as is applicable to such business. The sections of the Oregon code insofar as they are applicable to the business proposed to be done by Investors Syndicate of America, Inc., in this state, provide that the insurance commissioner shall require such company to comply with the laws of this state relating to paid-up capital and deposit capital. Subsection (c) of said section 42-501 provides:
"(c) Every foreign or alien corporation or company, firm, partnership, association, person or group of persons, before engaging in the business defined in this act, shall deposit with the insurance commissioner, as he may prescribe, either $25,000 in approved securities to be held in trust, or, in lieu of such securities, a corporate surety bond of the same amount payable to the state of Oregon, such deposit or bond to be held and conditioned upon the faithful performance by such company of all contracts and other requirements within the state, or, may deposit in a bank or trust company of the state in which the company has its principal place of business or such other depositary or public officer of such state as the insurance commissioner may prescribe for the benefit of the holders of such
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