STATE OF OREGON
CONSTITUTIONAL AMENDMENTS ADOPTED
AND
LAWS ENACTED BY THE PEOPLE AT THE GENERAL
ELECTON NOVEMBER 7, 1922
TOGETHER WITH THE
GENERAL LAWS
AND
JOINT RESOLUTIONS, CONCURRENT RESOLUTIONS
AND MEMORIALS
ADOPTED BY THE
THIRTY-SECOND REGULAR SESSION
OF THE LEGISLATIVE ASSEMBLY
Beginning January 8 and
Ending February 22
1923
Relating to the rights, powers and disabilities of aliens and of certain companies, associations and corporations with respect to property in this state; providing for escheats in certain cases, prescribing for procedure therein, requiring reports of certain property holdings to facilitate the enforcement of this act, and prescribing penalties for violation of the provisions hereof.
Be It Enacted by the People of the State of Oregon:
Section 1. All aliens eligible to citizenship under the laws of the United States may acquire, possess, enjoy, transmit and inherit real property, or any interest therein, in this state, in the same manner and to the same extent as citizens of the United States, except as otherwise provided by the laws of this state.
Section 2. All aliens other than those mentioned in section 1 of this act may acquire, possess, enjoy and transfer real property, or any interest therein, in this state, in the manner and to the extent and for the purpose prescribed by any treaty now existing between the government of the United States and the nation or country of which such alien is a citizen or subject, and not otherwise.
Section 3. Any company, association or corporation organized under the laws of this or any other state or nation, of which a majority of the members are aliens, other than those specified in section 1 of this act, or in which a majority of the issued capital stock is owned by such aliens may acquire, possess, enjoy and convey real property, or any interest therein, in this state, in the manner and to the extent and for the purposes prescribed by any treaty now existing between the government of the United States and the nation or country of which such members or stockholders are citizens or subjects, and not otherwise. Hereafter all aliens other than those specified in section 1 hereof may become members of or acquire shares of stock in any company, association or corporation that is or may be authorized to acquire, possess, enjoy or convey agricultural land, in the manner and to the extent and for the purposes prescribed by any treaty now existing between the government of the United States and the nation or country of which such alien is a citizen or a subject, and not otherwise.
Section 4. Hereafter no alien mentioned in section 2 hereof and no company, association or corporation mentioned in section 3 hereof, may be appointed guardian of that portion of the estate of a minor which consists of property which such alien or such company, association or corporation is inhibited from acquiring, possessing, enjoying or transferring by reason of the provisions of this act. On such notice to the guardian as the court may require, the county or circuit court may remove the guardian of such an estate whenever it appears to the satisfaction of the court:
(a) That the guardian has failed to file the report required by the provisions of section 5 hereof; or
(b) That the property of the ward has not been or is not being administered with due regard to the primary interest of the ward; or
(c) That facts exist which would make the guardian ineligible to appointment in the first instance; or
(d) That the facts establishing any other legal ground for removal exist.
Section 5. (a) The term “trustee,” as used this section, means any person, company, association or corporation that as guardian, trustee, attorney in fact, or agent, or in any other capacity has the title, custody, or control of property, or some interest therein, belonging to an alien mentioned in section 2 hereof, or to the minor child of such an alien, if the property is of such a character that such alien is inhibited from acquiring, possessing, enjoying or transferring it.
(b) Annually, on or before the thirty-first of December, every such trustee must file in the office of the secretary of state of Oregon and in the office of the county clerk of each county in which any of the property is situated, a verified written report showing:
1. The property, real or personal, held by him for or on behalf of such alien or minor;
2. A statement showing the date when each item of such property came into his possession or control;
3. An itemized account of all expenditures, investments, rents, issues and profits in respect to the administration and control of such property, with particular reference to holdings of corporate stock and leases, cropping contracts and other agreements in respect of land, and the handling or sale of products thereof.
(c) Any person, company, association or corporation that violates [violating] any provision of this section is guilty of a misdemeanor, and shall be punished by a fine not exceeding one thousand dollars ($1,000) or by imprisonment in the county jail not exceeding one year, or by both such fine and imprisonment.
(d) The provisions of this section are cumulative and not intended to change the jurisdiction or the rules of practice of courts of justice
Section 6. Whenever it appears to the court in any probate proceedings that by reason of the provisions of this act any heir or devisee can not take real property in this state or membership or share of stock in a company, association or corporation, which but for said provisions said heir or devisee would take as such, the court, instead of ordering a distribution of such property to be made in the manner provided by law for probate sales of property, and the proceeds of such sale shall be distributed to such heir or devisee in lieu of such property.
Section 7. Hereafter it shall be unlawful for any person, firm, company, copartnership, association, corporation or other organization to directly or indirectly convey, grant, sell, bargain, create, cause, suffer or permit to be conveyed, granted, sold, bargained or created any real property in fee or in any alien mentioned in section 2 of this act, or in any firm, company, copartnership, association, corporation or other organization mentioned in section 3 of this act. Any real property acquired in violation of the provisions of this act shall escheat to, and become, and remain the property of the state of Oregon. In any such case it shall be the duty of the district attorney of the county in which the said real property, or any part thereof, is situated, to institute proceedings in the circuit court of that county to have such escheat adjudged and enforced. Such proceedings shall be commenced by the filing of a compliant in said court by said district attorney in which the state of Oregon shall be plaintiff, and all other parties known to be interested shall be named as defendants. The complaint shall describe the real property, the name of the owner or owners of the fee and of any others who are known to have or claim to have any interest therein, the name of the occupant, and the facts and circumstances showing the escheat, and the prayer shall be for the escheat of said land so unlawfully acquired. Summons shall issue to all of the persons named as defendants, which summons shall be in the form prescribed for summons in action of law, and shall issue to all of the persons named as defendants, which summons shall be in the form prescribed for summons in action of law, and shall issue and be served in like manner. At any time after the complaint is filed and summons issued, upon the application of the district attorney, the court may, either before or after answer and upon such notice to the defendants as the court shall prescribe, and if sufficient cause therefor is shown to the court, appoint a receiver to take charge therefor is shown to the court, appoint a receiver to take charge of such estate and receive the income and profits of the same during the pendency of such proceeding. Any defendant may appear and answer or otherwise plead to the complaint. Any person claiming any interest in said land who is not named in the complaint as a defendant, may appear at any time before trial and by motion, for that purpose, be made a defendant. Any issue of fact shall be tried as issues of fact are tired in an action at law, with the aid of a jury if requested by either party. If the judgement upon trail be for the state, it shall include that such land has escheated and that the state is seized of the title thereof, and shall recover costs and disbursements against the defendants. The provisions of this section and of sections 2 and 3 of this act shall not apply to any real property hereafter acquired in the enforcement or in satisfaction of any lien now existing the enforcement or in satisfaction of any lien now existing upon, or interest in, such property, so long as such real property so acquired shall remain the property of the alien, company, association or corporation acquiring the same in such manner. No alien, company, association or corporation mentioned in sections 2 or 3 hereof shall hold for a longer period than two years the possession of any agricultural land acquired in the enforcement of or in satisfaction of a mortgage or other lien hereafter made or acquired in good faith to secure a debt.
Section 8. Hereafter it shall be unlawful for any person, firm, company, copartnership, association, corporation or other organization to directly or indirectly convey, grant, sell, bargain, create, or cause, suffer or permit to be conveyed, granted, sold, bargained or created any leasehold or other interest in real property less than the fee, to or in any alien mentioned in section 2 of this act, or to or in any firm, company, copartnership, association, corporation or other organization mentioned in section 3 of this act. Any real property in which any leasehold or other interest less than the fee shall be hereafter acquired in violation of this act shall be hereafter acquired in violation of this act shall be subject to sale as hereinafter provided. Any leasehold or other interest in real property, less than the fee, hereafter acquired in violation of the provisions of this act by an alien mentioned in section 2 of this act, or by any company, association or corporation mentioned in section 3 of this act, shall escheat to the state of Oregon. The district attorney of the proper county shall institute proceedings to have such escheat adjudged and enforced as provided in section 7 of this act. It shall be determined upon the trial, as an issue of fact, what is the value of the leasehold or other interest involved in the proceedings, and if the decision or verdict be for the state, then the judgement rendered thereon shall declare said leasehold or other interest to be escheated to the state, and for judgement for said value, so determined, in favor of the state, including costs and disbursements. Thereupon the court shall order a sale of the real property covered by such leasehold or other interest by the sheriff of the county where the land lies, at public auction, and for cash, in the same manner as is provided by law for the sale of real estate upon execution, and report of said sale shall be made to the court, and the same confirmed, or the land resold, in the same manner as in sales of land upon execution. Out of the proceeds arising from such sale the amount of the judgement, including costs and disbursements, rendered for the state shall be paid into the state treasury, and the balance shall be deposited with and distributed by the court in accordance with the interests of the parties company, firm, copartnership, corporation, association or other organization hereafter acquired in violation of the provisions of section 3 of this act, shall escheat to the state of Oregon. Such escheat shall be adjudged and enforced in the same manner as provided in this section for the escheat of a leasehold or other interest in real property less than the fee.
Section 9. Every transfer of real property, or of an interest therein, though colorable in form, shall be void as to the state and the interest thereby conveyed or sought to be conveyed shall escheat to the state if the property interest involved is of such a character that an alien mentioned in section 2 hereof is inhibited from acquiring, possessing, enjoying, or transferring it, and if the conveyance is made with intent to prevent, evade or avoid escheat as provided for herein. A prima facie presumption that the conveyance is made with such intent shall arise upon proof of any of the following groups of facts:
(a) The taking of the property in the name of a person other than the person mentioned in section 2 hereof, if the consideration is paid or agreed or understood to be paid by an alien mentioned in section 2 hereof.
(b) The taking of the property in the name of a company, association or corporation, if the memberships or shares of stock therein held by aliens mentioned in section 2 hereof, together with the memberships or shares of stock held by others but paid for and agreed or understood to be paid by such alien, would amount to a majority of the membership or the issued capital stock of such company, association or corporation.
(c) The execution of a mortgage in favor of an alien mentioned in section 2 hereof, if said mortgagee is given possession, control or management of the property.
The enumeration in this section of certain presumptions shall not be so construed as to preclude other presumptions or inferences that reasonably may be made as to the existence of intent to prevent, evade or avoid escheat as provided for herein.
Section 10. If two or more persons conspire to effect a transfer of real property, or of an interest therein, in violation of the provisions hereof, they are punishable by imprisonment in the county jail or state penitentiary not exceeding two years, or by a fine not exceeding five thousand dollars ($5,000), or both.
Section 11. If any section, subsection, sentence, clause or phrase of this act is for any reason held to be unconstitutional, such decisions shall not affect the validity of the remaining portions of this act.
Approved by the governor February 16, 1923.
Filed in the office of the secretary of state February 16, 1923.
