130.775: �investments permissible by law for investment of trust funds,� �legal investments,� �authorized investments,� �using the judgment and care under the circumstances then prevailing that person

130.775: �investments permissible by law for investment of trust funds,� �legal investments,� �authorized investments,� �using the judgment and care under the circumstances then prevailing that persons of prudence, discretion and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital,� �prudent man rule,� �prudent trustee rule� and �prudent investor rule.� [2005 c.348 �82]

LIABILITY OF TRUSTEE AND RIGHTS OF PERSONS DEALING WITH TRUSTEE

����� 130.800 UTC 1001. Remedies for breach of trust. (1) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. A breach of trust may occur by reason of an action or by reason of a failure to act.

����� (2) To remedy a breach of trust that has occurred or to prevent a breach of trust, the court may:

����� (a) Compel the trustee to perform the trustee�s duties;

����� (b) Enjoin the trustee from committing a breach of trust;

����� (c) Compel the trustee to pay money or restore property;

����� (d) Order a trustee to account;

����� (e) Appoint a special fiduciary to take possession of the trust property and administer the trust;

����� (f) Suspend the trustee;

����� (g) Remove the trustee as provided in ORS 130.625;

����� (h) Reduce or deny compensation to the trustee;

����� (i) Subject to ORS 130.855, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or

����� (j) Order any other appropriate relief. [2005 c.348 �83]

����� 130.805 UTC 1002. Damages for breach of trust. (1) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greatest of:

����� (a) The amount of damages caused by the breach;

����� (b) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or

����� (c) The profit the trustee made by reason of the breach.

����� (2) Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. In determining the amount of contribution, the court shall consider the degree of fault of each trustee and whether any trustee or trustees acted in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received. [2005 c.348 �84; 2017 c.17 �6]

����� 130.810 UTC 1003. Damages in absence of breach. (1) Except as provided by ORS 130.725 (4) and (15) or 709.175 or other law of this state, a trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, without regard to whether the profit resulted from a breach of trust.

����� (2) Unless there is a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit. [2005 c.348 �85]

����� 130.815 UTC 1004. Attorney fees and costs. In a judicial proceeding involving the validity or administration of a trust, the court may award costs and expenses and reasonable attorney�s fees to any party, to be paid by another party or from the trust. [2005 c.348 �86]

����� 130.820 UTC 1005. Limitation of action against trustee. (1) Notwithstanding ORS chapter 12 or any other provision of law, but subject to subsection (2) of this section, a civil action against a trustee based on any act or omission of the trustee, whether based in tort, contract or other theory of recovery, must be commenced within six years after the date the act or omission is discovered, or six years after the date the act or omission should have been discovered, whichever is earlier.

����� (2) A beneficiary may not commence a proceeding against a trustee more than one year after the date the beneficiary or a representative of the beneficiary is sent a report by certified or regular mail that adequately discloses the existence of a potential claim and that informs the beneficiary of the time allowed for commencing a proceeding. A copy of this section must be attached to the report. The report must provide sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.

����� (3) If subsections (1) and (2) of this section do not apply, a judicial proceeding against a trustee must be commenced within 10 years from the date of the act or omission complained of, or two years from the termination of any fiduciary account established under the trust, whichever is later. [2005 c.348 �87]

����� 130.825 UTC 1006. Reliance on trust instrument. A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance. [2005 c.348 �88]

����� 130.830 UTC 1007. Event affecting administration or distribution. A trustee is not liable for failing to determine whether a marriage, a divorce, a death, the performance of educational requirements or another event affecting the administration or distribution of a trust has occurred if the trustee has exercised reasonable care in attempting to determine whether the event has occurred. [2005 c.348 �89]

����� 130.835 UTC 1008. Exculpation of trustee. (1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term:

����� (a) Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or

����� (b) Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.

����� (2) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless:

����� (a) The settlor is represented by an independent counsel who reviewed the term; or

����� (b) The trustee proves that the exculpatory term is fair under the circumstances and that the term�s existence and contents were adequately communicated to the settlor. [2005 c.348 �90]

����� 130.840 UTC 1009. Beneficiary�s consent, release or ratification. If a beneficiary consents to conduct of a trustee that constitutes a breach of trust, releases a trustee from liability for a breach of trust or ratifies a transaction entered into by a trustee that constitutes a breach of trust, the trustee is not liable to the beneficiary for the breach of trust unless:

����� (1) The consent, release or ratification of the beneficiary was induced by improper conduct of the trustee; or

����� (2) At the time of the consent, release or ratification, the beneficiary did not know of the beneficiary�s rights or know of the material facts relating to the breach. [2005 c.348 �91]

����� 130.845 UTC 1010. Limitation on personal liability of trustee. (1) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee�s fiduciary capacity in the course of administering the trust if the trustee disclosed the trustee�s fiduciary capacity in the contract.

����� (2) A trustee is personally liable for torts committed in the course of administering a trust or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.

����� (3) The following claims may be asserted in a judicial proceeding against the trustee in the trustee�s fiduciary capacity, whether or not the trustee is personally liable for the claim:

����� (a) A claim based on a contract entered into by a trustee in the trustee�s fiduciary capacity.

����� (b) A claim based on an obligation arising from ownership or control of trust property.

����� (c) A claim based on a tort committed in the course of administering a trust.

����� (4) This section does not impose personal liability on a trustee solely because the trustee holds property under an instrument that shows title in the name of the trustee but does not state that the trustee holds the property in a representative capacity. [2005 c.348 �92]

����� 130.850 UTC 1011. Interest as general partner. (1) Except as otherwise provided in subsection (3) of this section or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust�s acquisition of the interest if the trustee�s fiduciary capacity is disclosed.

����� (2) Except as otherwise provided in subsection (3) of this section, a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.

����� (3) The immunity provided by this section does not apply if an interest in a partnership is held by the trustee in a capacity other than that of trustee.

����� (4) If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership to the same extent that the settlor would be liable if the settlor were a general partner. [2005 c.348 �93]

����� 130.855 UTC 1012. Protection of person dealing with trustee. (1) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, is not liable for acts of the trustee that exceed the trustee�s powers or for the improper exercise of the trustee�s powers, unless the person knows that the trustee has exceeded the trustee�s powers or improperly exercised those powers.

����� (2) A person other than a beneficiary who deals with a trustee in good faith is not required to inquire about the extent of the trustee�s powers or about the propriety of the trustee�s exercise of those powers.

����� (3) A person who in good faith delivers assets to a trustee need not ensure that the assets are properly applied.

����� (4) Any person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated, is not liable solely because the former trustee is no longer a trustee.

����� (5) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section. [2005 c.348 �94]

����� 130.860 UTC 1013. Certification of trust. (1) A person who is not a beneficiary and who proposes to deal with the trustee of a trust may require that all trustees execute and furnish to the person a certification of trust.

����� (2) The certification of trust shall contain the following information:

����� (a) That the trust exists and the date the trust instrument was executed;

����� (b) The identity of the settlor;

����� (c) The identity and address of the currently acting trustee;

����� (d) The powers of the trustee;

����� (e) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust;

����� (f) The existence or nonexistence of any power to modify or amend the trust and the identity of any person holding a power to modify or amend the trust;

����� (g) The authority of cotrustees to sign or otherwise authenticate and whether all cotrustees or fewer than all are required in order to exercise powers of the trustee;

����� (h) The last four digits of the settlor�s Social Security number, or the trust�s employer identification number;

����� (i) The manner of taking title to trust property; and

����� (j) The state, country or other jurisdiction under the laws of which the trust was established.

����� (3) A certification of trust must be signed or otherwise authenticated by all the trustees.

����� (4) A certification of trust must state that the trust has not been revoked, modified or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.

����� (5) A certification of trust need not contain the dispositive terms of a trust.

����� (6) A recipient of a certification of trust may not require the trustee to furnish the entire trust instrument, but may require the trustee to furnish copies of excerpts from the original trust instrument and later amendments that designate the trustee and confer upon the trustee the power to act in the pending transaction.

����� (7) A person may require that the certification of trust:

����� (a) Include facts other than those listed in this section that are reasonably related to the administration of the trust;

����� (b) Be executed by one or more of the settlors;

����� (c) Be executed by one or more of the beneficiaries if the certification is reasonably related to a pending or contemplated transaction with the person; and

����� (d) Be adapted to the person�s own standard form, which may be incorporated in an account signature agreement or other account document.

����� (8) A certification of trust may contain the identity of any successor trustee or trustees and the circumstances under which any successor trustee or trustees will assume trust powers.

����� (9)(a) A person who acts in reliance upon a certification of trust without actual knowledge that the representations contained in the certification are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. A person does not have actual knowledge that the representations contained in the certification are incorrect solely by reason of having a copy of all or part of the trust instrument.

����� (b) Any transaction, and any lien created by that transaction, is enforceable against a trust if the transaction is entered into by a person acting in reliance on a certification of trust containing the information set forth in this section without actual knowledge that the representations contained in the certification are incorrect.

����� (c) If a person has actual knowledge that the trustee or trustees are acting outside the scope of the trust, and the actual knowledge was acquired by the person before entering into the transaction or making a binding commitment to do so, the transaction is not enforceable against the trust.

����� (10) A person is not liable for acting in reliance on a certification of trust solely because the certification fails to contain all the information required in this section.

����� (11) This section does not limit the rights of the beneficiaries of the trust against a trustee.

����� (12) A person�s failure to demand or refusal to accept and rely solely upon a certification of trust does not affect the protection provided the person by ORS 130.855, and no inference as to whether the person has acted in good faith may be drawn from the failure to demand or the refusal to accept and rely solely upon a certification.

����� (13) This section applies to all trusts, whether established under the laws of this state or under the law of another state, country or other jurisdiction. [2005 c.348 �95; 2009 c.363 �3]

MISCELLANEOUS PROVISIONS

����� 130.900 Uniformity of application and construction. In applying and construing ORS chapter 130, consideration must be given to the need to promote uniformity of the law with respect to trusts among states that enact the Uniform Trust Code. [2005 c.348 �96]

����� Note: 130.900 to 130.910 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 130 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

����� 130.905 UTC 1102. Electronic records and signatures. The legal effect, validity or enforceability of electronic records or electronic signatures under ORS chapter 130, and of contracts formed or performed with the use of such records or signatures, are governed by ORS 84.001 to 84.061. [2005 c.348 �97]

����� Note: See note under 130.900.

����� 130.910 UTC 1106. Application. (1) Except as otherwise provided in ORS chapter 130:

����� (a) ORS chapter 130 applies to all trusts created before, on or after January 1, 2006.

����� (b) ORS chapter 130 does not apply to judicial, administrative and other proceedings concerning trusts commenced before January 1, 2006.

����� (c) Any rule of construction or presumption provided in ORS chapter 130 applies to trust instruments executed before January 1, 2006, unless there is a clear indication of a contrary intent in the terms of the trust.

����� (d) An act done before January 1, 2006, is not affected by ORS chapter 130.

����� (2) If a right is acquired, extinguished or barred upon the expiration of a prescribed period that has commenced to run under any other statute before January 1, 2006, that statute continues to apply to the right even if it has been repealed or superseded. [2005 c.348 �98]

����� Note: See note under 130.900.

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