As used in ORS 673.800 to 673.825:

Terms Used In Oregon Statutes 673.800

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
  • Trustee: A person or institution holding and administering property in trust.

(1) ‘Affiliate’ means a person that controls, is controlled by or is under common control with another person, directly or indirectly.

(2) ‘Client’ means a taxpayer that enters into an agreement with an exchange facilitator for services.

(3) ‘Exchange accommodation titleholder’ means an exchange accommodation titleholder as described in section 4.02(1) of Internal Revenue Service Revenue Procedure 2000-37.

(4)(a) ‘Exchange facilitator’ means a person that:

(A) Is engaged in a business in which, for a fee, the person enters into agreements with clients for the purpose of performing services as:

(i) A qualified intermediary;

(ii) An exchange accommodation titleholder;

(iii) A trustee of a qualified trust; or

(iv) An escrow holder of a qualified escrow account; or

(B) Maintains an office in this state for the purpose of soliciting or engaging in business of the type described in subparagraph (A) of this paragraph.

(b) ‘Exchange facilitator’ does not include:

(A) A taxpayer or a disqualified person, as defined in 26 C.F.R. 1.1031(k)-1(k), that is seeking to qualify for the nonrecognition provisions of 26 U.S.C. 1031.

(B) A financial institution, as defined in ORS 706.008, unless the financial institution is engaged in a business in which, for a fee, the financial institution enters into agreements with clients for the purpose of performing services as a qualified intermediary or an exchange accommodation titleholder, whether or not the financial institution is:

(i) Acting as a depository for exchange funds;

(ii) Acting solely as a trustee of a qualified trust, notwithstanding the provisions of paragraph (a)(A)(iii) of this subsection; or

(iii) Acting solely as an escrow holder of a qualified escrow account, notwithstanding the provisions of paragraph (a)(A)(iv) of this subsection.

(C) An escrow agent, as defined in ORS 696.505, title insurance company or other person unless the person is engaged in a business in which, for a fee, the person enters into agreements with clients for the purpose of performing services as a qualified intermediary or an exchange accommodation titleholder, whether or not the person is:

(i) Acting solely as a trustee of a qualified trust, notwithstanding the provisions of paragraph (a)(A)(iii) of this subsection; or

(ii) Acting solely as an escrow holder of a qualified escrow account, notwithstanding the provisions of paragraph (a)(A)(iv) of this subsection.

(D) A person that advertises and teaches seminars or classes or that otherwise makes presentations for the primary purpose of educating professionals in the field of taxation about tax-deferred exchanges or training persons to act as exchange facilitators.

(E) A qualified intermediary that holds funds from the disposition of property located outside this state and used in an exchange under 26 U.S.C. 1031, notwithstanding the provisions of paragraph (a)(A)(i) of this subsection, or an exchange accommodation titleholder that does not hold title to property located in this state.

(F) An entity that an exchange facilitator wholly owns and uses to take title to property in this state.

(5)(a) ‘Exchange funds’ means moneys, property, instruments or other consideration an exchange facilitator receives from or on behalf of a client in connection with an exchange conducted under 26 U.S.C. 1031.

(b) ‘Exchange funds’ does not include moneys or other consideration the exchange facilitator receives from a client as compensation for the exchange facilitator’s services.

(6) ‘Fee’ means compensation of any nature, direct or indirect, monetary or in-kind, that a person or another person related to the person in the manner described in 26 U.S.C. 267(b) or 26 U.S.C. 707(b) receives for services related or incidental to the exchange of like-kind property under 26 U.S.C. 1031.

(7) ‘Financial institution’ has the meaning given that term in ORS 706.008.

(8) ‘Person’ means an individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust or other legal entity and the agents and employees of the entity.

(9) ‘Prudent investor standard’ means an exercise of judgment and care under circumstances then prevailing that investors of prudence, discretion and intelligence exercise in the management of the investors’ own affairs not in regard to speculation but in regard to the permanent disposition of the investors’ funds when considering probable income and the probable safety of the investors’ capital.

(10) ‘Qualified escrow account’ has the meaning given that term in 26 C.F.R. 1.1031(k)-1(g)(3)(ii).

(11) ‘Qualified exchange accommodation agreement’ means a qualified exchange accommodation agreement as described in section 4.02(3) of Internal Revenue Service Revenue Procedure 2000-37.

(12) ‘Qualified intermediary’ has the meaning given that term in 26 C.F.R. 1.1031(k)-1(g)(4)(iii).

(13) ‘Qualified trust’ has the meaning given that term in 26 C.F.R. 1.1031(k)-1(g)(3)(iii).

(14) ‘Relinquished property’ means relinquished property as described in 26 C.F.R. 1.1031(k)-1(a).

(15) ‘Replacement property’ means replacement property as described in 26 C.F.R. 1.1031(k)-1(a). [2013 c.392 § 1]