Oregon Code § 441.289·Enacted ·Last updated March 01, 2026
Statute Text
Powers
and duties of trustee.
A trustee appointed under ORS 441.281:
(1) May exercise
any powers and shall perform any duties required by the court.
(2) Shall operate
the facility in such a manner as to protect the health and welfare of the
patients.
(3) Shall have
the same rights to possession of the building in which the facility is located
and of all goods and fixtures in the building at the time the petition for the
appointment of the trustee is filed as the licensee would have had if the
trustee had not been appointed.
(4) Shall take
such action as is reasonably necessary to protect and conserve the assets and
property the trustee takes in possession, or the proceeds of any transfer
thereof, and may use them only in the performance of the powers and duties set
forth in this section and by order of the court.
(5) May receive
and spend the facilitys income and encumber its assets to the extent
specifically authorized by the court and do all acts necessary or appropriate
to promote the health and safety of the patients.
(6) Shall have
the power to maintain an action to reach the assets of the parent corporation
if it appears to the court that the parent corporation is the actual
controlling owner of the facility and that the named owner is not in control of
the facility.
(7) May use the
building, fixtures, furnishings and any accompanying consumable goods in the
provision of care and services to patients at the time the petition for the
appointment of the trustee was filed.
(8) Shall collect
payments for all goods and services provided to patients during the period of
the trust, at the same rate of payment charged by the facility at the time the
petition for the appointment of the trustee was filed, unless a different rate is
set by the court.
(9) May correct
or eliminate any deficiency in the structure or furnishings of the facility
which endangers the health or welfare of the patients while they remain in the
facility. However, the total cost of correction may not exceed $3,000 unless
the court orders expenditures for this purpose in excess of $3,000 upon
application by the trustee.
(10) May make
contracts and hire agents and employees to assist the trustee in carrying out
the powers and duties described in this section, subject to approval by the
court.
(11) Except as
provided in ORS 441.296, shall honor all leases, mortgages and secured
transactions governing the building in which this facility is located and all
goods and fixtures in the building of which the trustee has taken possession,
but only to the extent of payments which, in the case of a rental agreement,
are for the use of the property during the period of the trust, or which, in
the case of a purchase agreement, come due during the period of the trust.
(12) May direct,
manage and discharge employees of the facility, subject to any contract rights
they may have.
(13) Shall pay
employees at the same rate of compensation, including benefits, that the
employees would have received from the owner, operator or other controlling
person, except the trustee shall compensate employees only for time actually
worked during the period of the trust and shall not be responsible for
reimbursement for vacations or periods of sick leave. However, in no case shall
a trustee compensate any employee of a facility in an amount which is less than
the minimum amount required by law.
(14) Shall be
entitled to take possession of all property or assets belonging to patients
that are in the possession of the long term care facility.
(15) Shall
preserve and protect all property, assets and records of patients of which the
trustee takes possession.
(16) May prohibit
any person, including a licensee, from entering or remaining on the premises if
in the opinion of the trustee the person is interfering or has materially
interfered with the ability of the trustee to exercise the powers and duties
under this section.
(17) If the
facility ceases to operate and closes during the period of the trust and any
patient is transferred as a result, shall ensure that:
(a)
Transportation of the patient, the patients belongings and the medical record
to the new location is provided.
(b) Aid for
locating alternative placements is available to the patient or the patients
legal representative.
(c) Each patient
is physically and mentally prepared for transfer to avoid possible trauma due
to the transfer.
(d) Each patient
or the patients legal representative is permitted to participate in the
selection of the new placement.
(18) Is an agent
of the state for purposes of ORS 30.260 to 30.300 for which the Department of
Human Services shall be assessed and the department may use the Facility Fund
established under ORS 441.303 to pay the assessment. [1981 c.868 §4; 1985 c.731
§28; 1987 c.428 §20; 1997 c.249 §140; 2009 c.539 §3]
Plain English Explanation
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Key Points
01Part of Oregon statutory law
02Referenced as Oregon Code § 441.289
03Subject to legislative amendments
04Consult a licensed attorney for application to specific cases
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