As Introduced                            1            

122nd General Assembly                                             4            

   Regular Session                                  H. B. No. 170  5            

      1997-1998                                                    6            


 REPRESENTATIVES WOMER BENJAMIN-BATCHELDER-TIBERI-HARRIS-MYERS-    8            

        MASON-SCHULER-LEWIS-BRITTON-SALERNO-TAYLOR-REID-           9            

             CATES-HAINES-MOTTLEY-JONES-TERWILLEGER                10           


                                                                   12           

                           A   B I L L                                          

             To amend sections 1301.05, 1301.12, 1303.02,          14           

                1304.01, 1304.02, 1305.10, 1305.13, 1308.03,       15           

                1308.04, 1308.08, 1308.09, 1308.10, 1308.11,       16           

                1308.12, 1308.13, 1308.14, 1308.15, 1308.16,       17           

                1308.17, 1308.22, 1308.31, 1308.37, 1308.38,       18           

                1308.41, 1308.42, 1309.01, 1309.03, 1309.14,       19           

                1309.20, 1309.21, 1309.22, 1309.23, 1309.24,       20           

                1309.25, 1309.28, 1309.31, 1701.24, 1701.25,       22           

                1701.27, 1701.49, 1701.591, and 3901.51;  to       23           

                enact new sections 1308.01, 1308.02, 1308.05,      24           

                1308.06, 1308.07, 1308.18, 1308.19, 1308.20,       25           

                1308.21, 1308.23, 1308.24, 1308.25,  1308.26,      27           

                1308.27, 1308.32, 1308.33, 1308.39, and 1308.40    28           

                and sections 1308.51, 1308.52, 1308.53, 1308.54,   29           

                1308.55, 1308.56, 1308.57, 1308.58, 1308.59,       30           

                1308.60, 1308.61, 1309.112, and 1309.113; and to   31           

                repeal sections 1308.01, 1308.02, 1308.05,         32           

                1308.06, 1308.07, 1308.18, 1308.19, 1308.20,       33           

                1308.21, 1308.23, 1308.24, 1308.25, 1308.26,       34           

                1308.27, 1308.28, 1308.32, 1308.33, 1308.34,       35           

                1308.35, 1308.36, 1308.39, 1308.40, 1308.43, and   36           

                1308.44 of the Revised Code, to adopt the Revised  37           

                Article 8 of the Uniform Commercial                38           

                Code--Investment Securities.                       39           

                                                          2      

                                                                 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        41           

      Section 1.  That sections 1301.05, 1301.12, 1303.02,         43           

1304.01, 1304.02, 1305.10, 1305.13, 1308.03, 1308.04, 1308.08,     44           

1308.09, 1308.10, 1308.11, 1308.12, 1308.13, 1308.14, 1308.15,     45           

1308.16, 1308.17, 1308.22, 1308.31, 1308.37, 1308.38, 1308.41,     46           

1308.42, 1309.01, 1309.03, 1309.14, 1309.20, 1309.21, 1309.22,     47           

1309.23, 1309.24, 1309.25, 1309.28, 1309.31, 1701.24, 1701.25,     48           

1701.27, 1701.49, 1701.591, and 3901.51 be amended; and new                     

sections 1308.01, 1308.02, 1308.05, 1308.06, 1308.07, 1308.18,     49           

1308.19, 1308.20, 1308.21, 1308.23, 1308.24, 1308.25, 1308.26,     50           

1308.27, 1308.32, 1308.33, 1308.39, and 1308.40 and sections       51           

1308.51, 1308.52, 1308.53, 1308.54, 1308.55, 1308.56, 1308.57,     52           

1308.58, 1308.59, 1308.60, 1308.61, 1309.112, and 1309.113 of the  53           

Revised Code be enacted to read as follows:                                     

      Sec. 1301.05.  (A)  Except as otherwise provided in this     62           

section, when a transaction bears a reasonable relation to this    63           

state and also to another state or nation, the parties may agree   64           

that the law either of this state or of the other state or nation  65           

shall govern their rights and duties.  Failing such an agreement   66           

Chapters 1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309.,   68           

and 1310. of the Revised Code apply to transactions bearing an     69           

appropriate relation to this state.                                             

      (B)  Where one of the following provisions of Chapters       71           

1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309., and 1310.  73           

of the Revised Code specifies the applicable law, that provision   74           

governs and a contrary agreement is effective only to the extent   75           

permitted by the law, including the conflict of laws rules, so     76           

specified:                                                                      

      (1)  Rights of creditors against sold goods, as provided in  78           

section 1302.43 of the Revised Code;                               79           

      (2)  Applicability of sections 1304.01 to 1304.40 of the     81           

Revised Code, as provided in section 1304.02 of the Revised Code;  82           

      (3)  Fund transfers under sections 1304.51 to 1304.85 of     84           

the Revised Code, as provided in section 1304.85 of the Revised    85           

                                                          3      

                                                                 
Code;                                                              86           

      (4)  Applicability of sections 1308.01 to 1308.36 CHAPTER    89           

1308. of the Revised Code, as provided in section 1308.05 of the   90           

Revised Code;                                                                   

      (5)  Perfection provisions of section 1309.03 of the         92           

Revised Code;                                                      93           

      (6)  Applicability of sections 1310.01 to 1310.78 of the     95           

Revised Code, as provided in sections 1310.03 and 1310.04 of the   96           

Revised Code.                                                      97           

      Sec. 1301.12.  (A)  Except in the cases described in         106          

division (B) of this section a contract for the sale of personal   107          

property is not enforceable by way of action or defense beyond     108          

five thousand dollars in amount or value of remedy unless there    109          

is some writing which indicates that a contract for sale has been  110          

made between the parties at a defined or stated price, reasonably               

identifies the subject matter, and is signed by the party against  111          

whom enforcement is sought or by his THAT PARTY'S authorized       112          

agent.                                                                          

      (B)  Division (A) of this section does not apply to          114          

contracts for the sale of goods, section 1302.04 of the Revised    115          

Code, nor of securities, section 1308.30 1308.07 of the Revised    116          

Code, nor to security agreements, section 1309.14 of the Revised   117          

Code.                                                                           

      Sec. 1303.02.  (A)  This chapter applies to negotiable       126          

instruments.  It does not apply to money, to payment orders        127          

governed by sections 1304.51 to 1304.85 of the Revised Code, or    128          

to securities governed by sections 1308.01 to 1308.44 CHAPTER      130          

1308. of the Revised Code.                                                      

      (B)  If there is a conflict between this chapter and either  132          

sections 1304.01 to 1304.40 or sections 1309.01 to 1309.50 of the  133          

Revised Code, the provisions of sections 1304.01 to 1304.40 or     134          

sections 1309.01 to 1309.50 of the Revised Code govern.            135          

      (C)  If any provision of this chapter is inconsistent with   137          

any regulation of the board of governors of the federal reserve    138          

                                                          4      

                                                                 
system or any operating circular of the federal reserve banks,     139          

the regulation or the operating circular supersedes the provision  140          

of this chapter to the extent of the inconsistency.                141          

      Sec. 1304.01.  (A)  As used in sections 1304.01 to 1304.40   150          

of the Revised Code, unless the context requires otherwise:        151          

      (1)  "Account" means any deposit or credit account with a    153          

bank, including a demand, time, savings, passbook, share draft,    154          

or similar account, other than an account evidenced by a           155          

certificate of deposit.                                                         

      (2)  "Afternoon" means the period of day between noon and    157          

midnight.                                                          158          

      (3)  "Banking day" means the part of a day on which a bank   161          

is open to the public for carrying on substantially all of its     162          

banking functions.                                                              

      (4)  "Clearing house" means an association of banks or       164          

other payors regularly clearing items.                             165          

      (5)  "Customer" means a person having an account with a      167          

bank or for whom a bank has agreed to collect items, including a   168          

bank that maintains an account at another bank.                    169          

      (6)  "Documentary draft" means a draft to be presented for   171          

acceptance or payment if specified documents, certified            172          

securities or instructions for uncertificated securities AS        173          

DEFINED IN SECTION 1308.01 OF THE REVISED CODE, or other           174          

certificates, statements, or similar documents are to be received               

by the drawee or other payor before acceptance or payment of the   175          

draft.                                                                          

      (7)  "Draft" means a draft as defined in section 1303.03 of  177          

the Revised Code or an item, other than an instrument, that is an  178          

order.                                                                          

      (8)  "Drawee" means a person ordered in a draft to make      180          

payment.                                                                        

      (9)  "Item" means an instrument or a promise or order to     182          

pay money handled by a bank for collection or payment.  "Item"     183          

does not include a payment order governed by sections 1304.51 to   184          

                                                          5      

                                                                 
1304.85 of the Revised Code, a credit slip, or a debit card slip.  185          

      (10)  "Midnight deadline," with respect to a bank, is        187          

midnight on its next banking day following the banking day on      188          

which it recevies RECEIVES the relevant item or notice or from     189          

which the time for taking action commences to run, whichever is    192          

later.                                                                          

      (11)  "Settle" means to pay in cash, by clearing house       194          

settlement, in a charge or credit or by remittance, or otherwise   195          

as agreed.  A settlement may be either provisional or final.       196          

      (12)  "Suspends payments" with respect to a bank means that  198          

it has been closed by order of the supervisory authorities, that   199          

a public officer has been appointed to take it over, or that it    200          

ceases or refuses to make payments in the ordinary course of       201          

business.                                                          202          

      (B)  As used in sections 1304.01 to 1304.40 of the Revised   204          

Code:                                                                           

      (1)  "Bank" means a person engaged in the business of        206          

banking, including a savings bank, a savings and loan              207          

association, a credit union, or a trust company.                   208          

      (2)  "Depositary bank" means the first bank to take an item  211          

even though it is also the payor bank, unless the item is                       

presented for immediate payment over the counter.                  212          

      (3)  "Payor bank" means a bank that is a drawee of a draft.  214          

      (4)  "Intermediary bank" means a bank to which an item is    217          

transferred in course of collection except the depositary or                    

payor bank.                                                        218          

      (5)  "Collecting bank" means a bank handling an item for     221          

collection except the payor bank.                                               

      (6)  "Presenting bank" means a bank presenting an item       223          

except a payor bank.                                               224          

      (C)  As used in sections 1304.01 to 1304.40 of the Revised   227          

Code:                                                                           

      (1)  "Acceptance" and "certified check" have the same        229          

meanings as in section 1303.46 of the Revised Code.                230          

                                                          6      

                                                                 
      (2)  "Alteration" has the same meaning as in section         232          

1303.50 of the Revised Code.                                       233          

      (3)  "Cashier's check," "certificate of deposit," "check,"   235          

"instrument," and "teller's check" have the same meanings as in    236          

section 1303.03 of the Revised Code.                               237          

      (4)  "Good faith," "order," "ordinary care," "promise," and  239          

"prove" have the same meanings as in section 1303.01 of the        240          

Revised Code.                                                                   

      (5)  "Holder in due course" has the same meaning as in       242          

section 1303.32 of the Revised Code.                               243          

      (6)  "Notice of dishonor" has the same meaning as in         245          

section 1303.63 of the Revised Code.                               246          

      (7)  "Person entitled to enforce" has the same meaning as    248          

in section 1303.31 of the Revised Code.                            249          

      (8)  "Presentment" has the same meaning as in section        251          

1303.61 of the Revised Code.                                       252          

      (9)  "Unauthorized signature" has the same meaning as in     254          

section 1303.43 of the Revised Code.                               255          

      (D)  The terms and principles of construction and            257          

interpretation in sections 1301.01 to 1301.14 of the Revised Code  258          

are applicable to sections 1304.01 to 1303.40 1304.40 of the       259          

Revised Code.                                                                   

      Sec. 1304.02.  (A)  To the extent that items within          268          

sections 1304.01 to 1304.40 of the Revised Code are also within    269          

the scope of Chapter 1303. and sections 1308.01 to 1308.36         270          

CHAPTER 1308. of the Revised Code, they are subject to that        271          

chapter and those sections CHAPTERS.  In the event of conflict,    273          

the provisions of sections 1304.01 to 1304.40 of the Revised Code  274          

govern those of Chapter 1303., but the provisions of sections      275          

1308.01 to 1308.36 CHAPTER 1308. of the Revised Code govern those  276          

of sections 1304.01 to 1304.40 of the Revised Code.                277          

      (B)  The liability of a bank for action or non-action with   279          

respect to any item handled by it for purposes of presentment,     280          

payment, or collection is governed by the law of the place where   281          

                                                          7      

                                                                 
the bank is located.  In the case of action or non-action by or    282          

at a branch or separate office of a bank, its liability is                      

governed by the law of the place where the branch or separate      283          

office is located.                                                 284          

      Sec. 1305.10.  (A)  Unless otherwise agreed, the             293          

beneficiary by transferring or presenting a documentary draft or   294          

demand for payment warrants to all interested parties that the     295          

necessary conditions of the credit have been complied with.  This  296          

is in addition to any warranties arising under Chapters 1303.,     297          

1304., and 1308. of the Revised Code.                                           

      (B)  Unless otherwise agreed, a negotiating, advising,       299          

confirming, collecting, or issuing bank presenting or              300          

transferring a draft or demand for payment under a credit          301          

warrants only the matters warranted by a collecting bank under                  

sections 1304.01 to 1304.40 of the Revised Code, and any such      302          

bank transferring a document warrants only the matters warranted   303          

by an A SECURITIES intermediary under sections 1307.01 to 1307.40  304          

and 1308.01 to 1308.36 CHAPTER 1308. of the Revised Code.          305          

      Sec. 1305.13.  (A)  An issuer must honor a draft or demand   314          

for payment that complies with the terms of the relevant credit    315          

regardless of whether the goods or documents conform to the        316          

underlying contract for sale or other contract between the         317          

customer and the beneficiary.  The issuer is not excused from      318          

honor of such a draft or demand by reason of an additional         319          

general term that all documents must be satisfactory to the        320          

issuer, but an issuer may require that specified documents must    321          

be satisfactory to it.                                             322          

      (B)  Unless otherwise agreed when documents appear on their  324          

face to comply with the terms of a credit but a required document  325          

does not in fact conform to the warranties made on negotiation or  326          

transfer of a document of title, pursuant to section 1307.35 of    327          

the Revised Code, or of a certificated security pursuant to        328          

section 1308.21 1308.20 of the Revised Code, or is forged or       329          

fraudulent or there is fraud in the transaction:                   331          

                                                          8      

                                                                 
      (1)  The issuer must honor the draft or demand for payment   333          

if honor is demanded by a negotiating bank or other holder of the  334          

draft or demand which has taken the draft or demand under the      335          

credit and under circumstances which would make it a holder in     336          

due course as provided in section 1303.32 of the Revised Code and  337          

in an appropriate case would make it a person to whom a document   338          

of title has been duly negotiated, as provided in section 1307.30  339          

of the Revised Code, or a bona fide PROTECTED purchaser of a       340          

certificated security, as provided in section 1308.17 of the       342          

Revised Code; and                                                               

      (2)  In all other cases as against its customer, an issuer   344          

acting in good faith may honor the draft or demand for payment     345          

despite notification from the customer of fraud, forgery, or       346          

other defect not apparent on the face of the documents but a       347          

court of appropriate jurisdiction may enjoin such honor.           348          

      (C)  Unless otherwise agreed, an issuer which has duly       350          

honored a draft or demand for payment is entitled to immediate     351          

reimbursement of any payment made under the credit and to be put   352          

in effectively available funds not later than the day before       353          

maturity of any acceptance made under the credit.                  354          

      (D)  When a credit provides for payment by the issuer on     356          

receipt of notice that the required documents are in the           357          

possession of a correspondent or other agent of the issuer:        358          

      (1)  Any payment made on receipt of such notice is           360          

conditional; and                                                   361          

      (2)  The issuer may reject documents which do not comply     363          

with the credit if it does so within three banking days following  364          

its receipt of the documents; and                                  365          

      (3)  In the event of such rejection, the issuer is entitled  367          

by chargeback or otherwise to return of the payment made.          368          

      (E)  In the case covered by division (D) of this section,    370          

failure to reject documents within the time specified in division  371          

(D)(2) of this section constitutes acceptance of the documents     372          

and makes the payment final in favor of the beneficiary.           373          

                                                          9      

                                                                 
      Sec. 1308.01.  (A)  IN THIS CHAPTER:                         375          

      (1)  "ADVERSE CLAIM" MEANS A CLAIM THAT A CLAIMANT HAS A     377          

PROPERTY INTEREST IN A FINANCIAL ASSET AND THAT IT IS A VIOLATION  378          

OF THE RIGHTS OF THE CLAIMANT FOR ANOTHER PERSON TO HOLD,          379          

TRANSFER, OR DEAL WITH THE FINANCIAL ASSET.                                     

      (2)  "BEARER FORM," AS APPLIED TO A CERTIFICATED SECURITY,   381          

MEANS A FORM IN WHICH THE SECURITY IS PAYABLE TO THE BEARER OF     382          

THE SECURITY CERTIFICATE ACCORDING TO ITS TERMS BUT NOT BY REASON  383          

OF AN INDORSEMENT.                                                              

      (3)  "BROKER" MEANS A PERSON DEFINED AS A BROKER OR DEALER   385          

UNDER THE FEDERAL SECURITIES LAWS, BUT WITHOUT EXCLUDING A BANK    386          

ACTING IN THAT CAPACITY.                                                        

      (4)  "CERTIFICATED SECURITY" MEANS A SECURITY THAT IS        388          

REPRESENTED BY A CERTIFICATE.                                      389          

      (5)  "CLEARING CORPORATION" MEANS:                           391          

      (a)  A PERSON THAT IS REGISTERED AS A "CLEARING AGENCY"      393          

UNDER THE FEDERAL SECURITIES LAWS;                                 394          

      (b)  A FEDERAL RESERVE BANK; OR                              396          

      (c)  ANY OTHER PERSON THAT PROVIDES CLEARANCE OR SETTLEMENT  398          

SERVICES WITH RESPECT TO FINANCIAL ASSETS THAT WOULD REQUIRE IT    399          

TO REGISTER AS A CLEARING AGENCY UNDER THE FEDERAL SECURITIES      400          

LAWS BUT FOR AN EXCLUSION OR EXEMPTION FROM THE REGISTRATION       401          

REQUIREMENT, IF ITS ACTIVITIES AS A CLEARING CORPORATION,          402          

INCLUDING PROMULGATION OF RULES, ARE SUBJECT TO REGULATION BY A                 

FEDERAL OR STATE GOVERNMENTAL AUTHORITY.                           403          

      (6)  "COMMUNICATE" MEANS TO:                                 405          

      (a)  SEND A SIGNED WRITING; OR                               407          

      (b)  TRANSMIT INFORMATION BY ANY MECHANISM AGREED UPON BY    409          

THE PERSONS TRANSMITTING AND RECEIVING THE INFORMATION.            410          

      (7)  "ENTITLEMENT HOLDER" MEANS A PERSON IDENTIFIED IN THE   412          

RECORDS OF A SECURITIES INTERMEDIARY AS THE PERSON HAVING A        413          

SECURITY ENTITLEMENT AGAINST THE SECURITIES INTERMEDIARY.  IF A    414          

PERSON ACQUIRES A SECURITY ENTITLEMENT BY VIRTUE OF DIVISION       415          

(B)(2) OR (3) OF SECTION 1308.51 OF THE REVISED CODE, THAT PERSON               

                                                          10     

                                                                 
IS THE ENTITLEMENT HOLDER.                                         416          

      (8)  "ENTITLEMENT ORDER" MEANS A NOTIFICATION COMMUNICATED   418          

TO A SECURITIES INTERMEDIARY DIRECTING TRANSFER OR REDEMPTION OF   419          

A FINANCIAL ASSET TO WHICH THE ENTITLEMENT HOLDER HAS A SECURITY   420          

ENTITLEMENT.                                                                    

      (9)  "FINANCIAL ASSET," EXCEPT AS OTHERWISE PROVIDED IN      422          

SECTION 1308.02 OF THE REVISED CODE, MEANS:                        423          

      (a)  A SECURITY;                                             425          

      (b)  AN OBLIGATION OF A PERSON OR A SHARE, PARTICIPATION,    427          

OR OTHER INTEREST IN A PERSON OR IN PROPERTY OR AN ENTERPRISE OF   428          

A PERSON, WHICH IS, OR IS OF A TYPE, DEALT IN OR TRADED ON         429          

FINANCIAL MARKETS, OR WHICH IS RECOGNIZED IN ANY AREA IN WHICH IT  430          

IS ISSUED OR DEALT IN AS A MEDIUM FOR INVESTMENT; OR                            

      (c)  ANY PROPERTY THAT IS HELD BY A SECURITIES INTERMEDIARY  432          

FOR ANOTHER PERSON IN A SECURITIES ACCOUNT IF THE SECURITIES       433          

INTERMEDIARY HAS EXPRESSLY AGREED WITH THE OTHER PERSON THAT THE   434          

PROPERTY IS TO BE TREATED AS A FINANCIAL ASSET UNDER THIS          435          

CHAPTER.                                                                        

      AS CONTEXT REQUIRES, THE TERM MEANS EITHER THE INTEREST      437          

ITSELF OR THE MEANS BY WHICH A PERSON'S CLAIM TO IT IS EVIDENCED,  438          

INCLUDING A CERTIFICATED OR UNCERTIFICATED SECURITY, A SECURITY    439          

CERTIFICATE, OR A SECURITY ENTITLEMENT.                                         

      (10)  "GOOD FAITH," FOR PURPOSES OF THE OBLIGATION OF GOOD   441          

FAITH IN THE PERFORMANCE OR ENFORCEMENT OF CONTRACTS OR DUTIES     442          

WITHIN THIS CHAPTER, MEANS HONESTY IN FACT AND THE OBSERVANCE OF   443          

REASONABLE COMMERCIAL STANDARDS OF FAIR DEALING.                   444          

      (11)  "INDORSEMENT" MEANS A SIGNATURE THAT ALONE OR          446          

ACCOMPANIED BY OTHER WORDS IS MADE ON A SECURITY CERTIFICATE IN    447          

REGISTERED FORM OR ON A SEPARATE DOCUMENT FOR THE PURPOSE OF       448          

ASSIGNING, TRANSFERRING, OR REDEEMING THE SECURITY OR GRANTING A   449          

POWER TO ASSIGN, TRANSFER, OR REDEEM IT.                                        

      (12)  "INSTRUCTION" MEANS A NOTIFICATION COMMUNICATED TO     451          

THE ISSUER OF AN UNCERTIFICATED SECURITY WHICH DIRECTS THAT THE    452          

TRANSFER OF THE SECURITY BE REGISTERED OR THAT THE SECURITY BE     453          

                                                          11     

                                                                 
REDEEMED.                                                                       

      (13)  "REGISTERED FORM," AS APPLIED TO A CERTIFICATED        455          

SECURITY, MEANS A FORM IN WHICH:                                   456          

      (a)  THE SECURITY CERTIFICATE SPECIFIES A PERSON ENTITLED    458          

TO THE SECURITY; AND                                               459          

      (b)  A TRANSFER OF THE SECURITY MAY BE REGISTERED UPON       461          

BOOKS MAINTAINED FOR THAT PURPOSE BY OR ON BEHALF OF THE ISSUER,   462          

OR THE SECURITY CERTIFICATE SO STATES.                             463          

      (14)  "SECURITIES INTERMEDIARY" MEANS:                       465          

      (a)  A CLEARING CORPORATION; OR                              467          

      (b)  A PERSON, INCLUDING A BANK OR BROKER, THAT IN THE       469          

ORDINARY COURSE OF ITS BUSINESS MAINTAINS SECURITIES ACCOUNTS FOR  470          

OTHERS AND IS ACTING IN THAT CAPACITY.                             471          

      (15)  "SECURITY," EXCEPT AS OTHERWISE PROVIDED IN SECTION    473          

1308.02 OF THE REVISED CODE, MEANS AN OBLIGATION OF AN ISSUER OR   474          

A SHARE, PARTICIPATION, OR OTHER INTEREST IN AN ISSUER OR IN       475          

PROPERTY OR AN ENTERPRISE OF AN ISSUER:                                         

      (a)  WHICH IS REPRESENTED BY A SECURITY CERTIFICATE IN       477          

BEARER OR REGISTERED FORM, OR THE TRANSFER OF WHICH MAY BE         478          

REGISTERED UPON BOOKS MAINTAINED FOR THAT PURPOSE BY OR ON BEHALF  479          

OF THE ISSUER;                                                                  

      (b)  WHICH IS ONE OF A CLASS OR SERIES OR BY ITS TERMS IS    481          

DIVISIBLE INTO A CLASS OR SERIES OF SHARES, PARTICIPATIONS,        482          

INTERESTS, OR OBLIGATIONS; AND                                     483          

      (c)  WHICH:                                                  485          

      (i)  IS, OR IS OF A TYPE, DEALT IN OR TRADED ON SECURITIES   487          

EXCHANGES OR SECURITIES MARKETS; OR                                488          

      (ii)  IS A MEDIUM FOR INVESTMENT AND BY ITS TERMS EXPRESSLY  490          

PROVIDES THAT IT IS A SECURITY GOVERNED BY THIS CHAPTER.           491          

      (16)  "SECURITY CERTIFICATE" MEANS A CERTIFICATE             493          

REPRESENTING A SECURITY.                                                        

      (17)  "SECURITY ENTITLEMENT" MEANS THE RIGHTS AND PROPERTY   495          

INTEREST OF AN ENTITLEMENT HOLDER WITH RESPECT TO A FINANCIAL      496          

ASSET SPECIFIED IN SECTIONS 1308.51 TO 1308.61 OF THE REVISED      497          

                                                          12     

                                                                 
CODE.                                                                           

      (18)  "UNCERTIFICATED SECURITY" MEANS A SECURITY THAT IS     499          

NOT REPRESENTED BY A CERTIFICATE.                                  500          

      (B)  OTHER DEFINITIONS APPLYING TO THIS CHAPTER AND THE      502          

SECTIONS IN WHICH THEY APPEAR ARE:                                 503          

      (1)  "APPROPRIATE PERSON," AS DEFINED IN SECTION 1308.23 OF  505          

THE REVISED CODE.                                                               

      (2)  "CONTROL," AS DEFINED IN SECTION 1308.24 OF THE         507          

REVISED CODE.                                                                   

      (3)  "DELIVERY," AS DEFINED IN SECTION 1308.27 OF THE        509          

REVISED CODE.                                                                   

      (4)  "INVESTMENT COMPANY SECURITY," AS DEFINED IN SECTION    511          

1308.02 OF THE REVISED CODE.                                                    

      (5)  "ISSUER," AS DEFINED IN SECTION 1308.08 OF THE REVISED  513          

CODE.                                                                           

      (6)  "OVERISSUE," AS DEFINED IN SECTION 1308.03 OF THE       515          

REVISED CODE.                                                                   

      (7)  "PROTECTED PURCHASER," AS DEFINED IN SECTION 1308.17    517          

OF THE REVISED CODE.                                                            

      (8)  "SECURITIES ACCOUNT," AS DEFINED IN SECTION 1308.51 OF  519          

THE REVISED CODE.                                                               

      (C)  IN ADDITION, CHAPTER 1301. OF THE REVISED CODE          521          

CONTAINS GENERAL DEFINITIONS AND PRINCIPLES OF CONSTRUCTION AND    522          

INTERPRETATION APPLICABLE THROUGHOUT THIS CHAPTER.                 523          

      (D)  THE CHARACTERIZATION OF A PERSON, BUSINESS, OR          525          

TRANSACTION FOR PURPOSES OF THIS CHAPTER DOES NOT DETERMINE THE    526          

CHARACTERIZATION OF THE PERSON, BUSINESS, OR TRANSACTION FOR       527          

PURPOSES OF ANY OTHER LAW, REGULATION, OR RULE.                    528          

      Sec. 1308.02.  (A)  A SHARE OR SIMILAR EQUITY INTEREST       530          

ISSUED BY A CORPORATION, BUSINESS TRUST, JOINT STOCK COMPANY, OR   531          

SIMILAR ENTITY IS A SECURITY.                                      532          

      (B)  AN "INVESTMENT COMPANY SECURITY" IS A SECURITY.         534          

"INVESTMENT COMPANY SECURITY" MEANS A SHARE OR SIMILAR EQUITY      535          

INTEREST ISSUED BY AN ENTITY THAT IS REGISTERED AS AN INVESTMENT   536          

                                                          13     

                                                                 
COMPANY UNDER THE FEDERAL INVESTMENT COMPANY LAWS, AN INTEREST IN  537          

A UNIT INVESTMENT TRUST THAT IS SO REGISTERED, OR A FACE-AMOUNT    538          

CERTIFICATE ISSUED BY A FACE-AMOUNT CERTIFICATE COMPANY THAT IS                 

SO REGISTERED.  INVESTMENT COMPANY SECURITY DOES NOT INCLUDE AN    539          

INSURANCE POLICY OR ENDOWMENT POLICY OR ANNUITY CONTRACT ISSUED    540          

BY AN INSURANCE COMPANY.                                                        

      (C)  AN INTEREST IN A PARTNERSHIP OR LIMITED LIABILITY       542          

COMPANY IS NOT A SECURITY UNLESS IT IS DEALT IN OR TRADED ON       543          

SECURITIES EXCHANGES OR IN SECURITIES MARKETS, ITS TERMS           544          

EXPRESSLY PROVIDE THAT IT IS A SECURITY GOVERNED BY THIS CHAPTER,  545          

OR IT IS AN INVESTMENT COMPANY SECURITY.  HOWEVER, AN INTEREST IN  546          

A PARTNERSHIP OR LIMITED LIABILITY COMPANY IS A FINANCIAL ASSET                 

IF IT IS HELD IN A SECURITIES ACCOUNT.                             547          

      (D)  A WRITING THAT IS A SECURITY CERTIFICATE IS GOVERNED    549          

BY THIS CHAPTER AND NOT BY CHAPTER 1303. OF THE REVISED CODE,      550          

EVEN THOUGH IT ALSO MEETS THE REQUIREMENTS OF THAT CHAPTER.        551          

HOWEVER, A NEGOTIABLE INSTRUMENT GOVERNED BY CHAPTER 1303. OF THE  552          

REVISED CODE IS A FINANCIAL ASSET IF IT IS HELD IN A SECURITIES                 

ACCOUNT.                                                           553          

      (E)  AN OPTION OR SIMILAR OBLIGATION ISSUED BY A CLEARING    555          

CORPORATION TO ITS PARTICIPANTS IS NOT A SECURITY, BUT IS A        556          

FINANCIAL ASSET.                                                                

      (F)  A COMMODITY CONTRACT, AS DEFINED IN SECTION 1309.112    558          

OF THE REVISED CODE, IS NOT A SECURITY OR A FINANCIAL ASSET.       559          

      Sec. 1308.03.  (A)  The EXCEPT AS OTHERWISE PROVIDED IN      568          

DIVISIONS (A)(1) AND (2) OF THIS SECTION, THE provisions of        569          

sections 1308.01 to 1308.44 of the Revised Code THIS CHAPTER       570          

which validate a security or compel its issue or reissue do not    572          

apply to the extent that validation, issue, or reissue would       573          

result in overissue; but if.                                                    

      (1)  An IF AN identical security which does not constitute   575          

an overissue is reasonably available for purchase, the person      576          

entitled to issue or validation may compel the issuer to purchase  577          

the security for him and either to deliver a IT IF certificated    579          

                                                          14     

                                                                 
security or to register the ITS transfer of an IF uncertificated   580          

security to him, against surrender of any certificated security    581          

he CERTIFICATE THE PERSON holds; or.                               582          

      (2)  A IF A security is not so available for purchase, the   585          

A person entitled to issue or validation may recover from the      586          

issuer the price he THE PERSON or the last purchaser for value     587          

paid for it with interest from the date of his THE PERSON'S        588          

demand.                                                            589          

      (B)  "Overissue" means the issue of securities in excess of  591          

the amount the issuer has corporate power to issue, BUT AN         592          

OVERISSUE DOES NOT OCCUR IF APPROPRIATE ACTION HAS CURED THE       593          

OVERISSUE.                                                                      

      Sec. 1308.04.  (A)  Certificated securities governed by      602          

sections 1308.01 to 1308.44 of the Revised Code, are negotiable    603          

instruments.                                                       604          

      (B)  Statements as provided in section 1308.44 of the        606          

Revised Code, notices, or the like, sent by the issuer of          607          

uncertificated securities and instructions as provided in section  608          

1308.23 of the Revised Code are neither negotiable instruments     609          

nor certificated securities.                                       610          

      (C)  In any THE FOLLOWING RULES APPLY IN AN action on a      612          

CERTIFICATED security AGAINST THE ISSUER:                          613          

      (1)(A)  Unless specifically denied in the pleadings, each    615          

signature on a certificated security, CERTIFICATE OR in a          616          

necessary indorsement, or an initial transaction statement, or on  617          

an instruction, is admitted;                                       618          

      (2)(B)  If the effectiveness of a signature is put in        620          

issue, the burden of establishing it EFFECTIVENESS is on the       621          

party claiming under the signature, but the signature is presumed  622          

to be genuine or authorized;                                       623          

      (3)(C)  If signatures on a certificated security             625          

CERTIFICATE are admitted or established, production of the         626          

security CERTIFICATE entitles a holder to recover on it unless     628          

the defendant establishes a defense or a defect going to the       629          

                                                          15     

                                                                 
validity of the security;                                                       

      (4)(D)  If signatures on an initial transaction statement    631          

are admitted or established, the facts stated in the statement     633          

are presumed to be true as of the time of its issuance; and        634          

      (5)  After it is shown that a defense or defect exists, the  636          

plaintiff has the burden of establishing that he THE PLAINTIFF or  638          

some person under whom he THE PLAINTIFF claims is a person                      

against whom the defense or defect is ineffective, as provided in  639          

section 1308.44 of the Revised Code CANNOT BE ASSERTED.            640          

      Sec. 1308.05.  (A)  THE LOCAL LAW OF THE ISSUER'S            642          

JURISDICTION, AS SPECIFIED IN DIVISION (D) OF THIS SECTION,        643          

GOVERNS:                                                                        

      (1)  THE VALIDITY OF A SECURITY;                             645          

      (2)  THE RIGHTS AND DUTIES OF THE ISSUER WITH RESPECT TO     647          

REGISTRATION OF TRANSFER;                                          648          

      (3)  THE EFFECTIVENESS OF REGISTRATION OF TRANSFER BY THE    650          

ISSUER;                                                                         

      (4)  WHETHER THE ISSUER OWES ANY DUTIES TO AN ADVERSE        652          

CLAIMANT TO A SECURITY; AND                                        653          

      (5)  WHETHER AN ADVERSE CLAIM CAN BE ASSERTED AGAINST A      655          

PERSON TO WHOM TRANSFER OF A CERTIFICATED OR UNCERTIFICATED        656          

SECURITY IS REGISTERED OR A PERSON WHO OBTAINS CONTROL OF AN       657          

UNCERTIFICATED SECURITY.                                                        

      (B)  THE LOCAL LAW OF THE SECURITIES INTERMEDIARY'S          659          

JURISDICTION, AS SPECIFIED IN DIVISION (E) OF THIS SECTION,        660          

GOVERNS:                                                                        

      (1)  ACQUISITION OF A SECURITY ENTITLEMENT FROM THE          662          

SECURITIES INTERMEDIARY;                                           663          

      (2)  THE RIGHTS AND DUTIES OF THE SECURITIES INTERMEDIARY    665          

AND ENTITLEMENT HOLDER ARISING OUT OF A SECURITY ENTITLEMENT;      666          

      (3)  WHETHER THE SECURITIES INTERMEDIARY OWES ANY DUTIES TO  668          

AN ADVERSE CLAIMANT TO A SECURITY ENTITLEMENT; AND                 669          

      (4)  WHETHER AN ADVERSE CLAIM CAN BE ASSERTED AGAINST A      671          

PERSON WHO ACQUIRES A SECURITY ENTITLEMENT FROM THE SECURITIES     672          

                                                          16     

                                                                 
INTERMEDIARY OR A PERSON WHO PURCHASES A SECURITY ENTITLEMENT OR   673          

INTEREST THEREIN FROM AN ENTITLEMENT HOLDER.                       674          

      (C)  THE LOCAL LAW OF THE JURISDICTION IN WHICH A SECURITY   676          

CERTIFICATE IS LOCATED AT THE TIME OF DELIVERY GOVERNS WHETHER AN  677          

ADVERSE CLAIM CAN BE ASSERTED AGAINST A PERSON TO WHOM THE         678          

SECURITY CERTIFICATE IS DELIVERED.                                 679          

      (D)  "ISSUER'S JURISDICTION" MEANS THE JURISDICTION UNDER    681          

WHICH THE ISSUER OF THE SECURITY IS ORGANIZED OR, IF PERMITTED BY  682          

THE LAW OF THAT JURISDICTION, THE LAW OF ANOTHER JURISDICTION      683          

SPECIFIED BY THE ISSUER.  AN ISSUER ORGANIZED UNDER THE LAW OF     684          

THIS STATE MAY SPECIFY THE LAW OF ANOTHER JURISDICTION AS THE LAW  685          

GOVERNING THE MATTERS SPECIFIED IN DIVISIONS (A)(2) TO (5) OF      686          

THIS SECTION.                                                                   

      (E)  THE FOLLOWING RULES DETERMINE A "SECURITIES             688          

INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS SECTION:         689          

      (1)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     691          

AND ITS ENTITLEMENT HOLDER SPECIFIES THAT IT IS GOVERNED BY THE    692          

LAW OF A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE         693          

SECURITIES INTERMEDIARY'S JURISDICTION.                                         

      (2)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     695          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY THE GOVERNING LAW AS   696          

PROVIDED IN DIVISION (E)(1) OF THIS SECTION, BUT EXPRESSLY         697          

SPECIFIES THAT THE SECURITIES ACCOUNT IS MAINTAINED AT AN OFFICE   698          

IN A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE SECURITIES  699          

INTERMEDIARY'S JURISDICTION.                                                    

      (3)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     701          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY A JURISDICTION AS      702          

PROVIDED IN DIVISION (E)(1) OR (2) OF THIS SECTION, THE            703          

SECURITIES INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN      704          

WHICH IS LOCATED THE OFFICE IDENTIFIED IN AN ACCOUNT STATEMENT AS  705          

THE OFFICE SERVING THE ENTITLEMENT HOLDER'S ACCOUNT.                            

      (4)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     707          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY A JURISDICTION AS      708          

PROVIDED IN DIVISION (E)(1) OR (2) OF THIS SECTION AND AN ACCOUNT  709          

                                                          17     

                                                                 
STATEMENT DOES NOT IDENTIFY AN OFFICE SERVING THE ENTITLEMENT      710          

HOLDER'S ACCOUNT AS PROVIDED IN DIVISION (E)(3) OF THIS SECTION,   711          

THE SECURITIES INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN  712          

WHICH IS LOCATED THE CHIEF EXECUTIVE OFFICE OF THE SECURITIES      713          

INTERMEDIARY.                                                                   

      (F)  A SECURITIES INTERMEDIARY'S JURISDICTION IS NOT         715          

DETERMINED BY THE PHYSICAL LOCATION OF CERTIFICATES REPRESENTING   716          

FINANCIAL ASSETS, OR BY THE JURISDICTION IN WHICH IS ORGANIZED     717          

THE ISSUER OF THE FINANCIAL ASSET WITH RESPECT TO WHICH AN         718          

ENTITLEMENT HOLDER HAS A SECURITY ENTITLEMENT, OR BY THE LOCATION  719          

OF FACILITIES FOR DATA PROCESSING OR OTHER RECORD KEEPING                       

CONCERNING THE ACCOUNT.                                            720          

      Sec. 1308.06.  A RULE ADOPTED BY A CLEARING CORPORATION      722          

GOVERNING RIGHTS AND OBLIGATIONS AMONG THE CLEARING CORPORATION    723          

AND ITS PARTICIPANTS IN THE CLEARING CORPORATION IS EFFECTIVE      724          

EVEN IF THE RULE CONFLICTS WITH THIS CHAPTER AND AFFECTS ANOTHER   725          

PARTY WHO DOES NOT CONSENT TO THE RULE.                                         

      Sec. 1308.07.  A CONTRACT OR MODIFICATION OF A CONTRACT FOR  727          

THE SALE OR PURCHASE OF A SECURITY IS ENFORCEABLE WHETHER OR NOT   728          

THERE IS A WRITING SIGNED OR RECORD AUTHENTICATED BY A PARTY       729          

AGAINST WHOM ENFORCEMENT IS SOUGHT, EVEN IF THE CONTRACT OR        730          

MODIFICATION IS NOT CAPABLE OF PERFORMANCE WITHIN ONE YEAR OF ITS  731          

MAKING.                                                                         

      Sec. 1308.08.  (A)  With respect to obligations on or        740          

defenses to a security, "issuer" includes a person who:            741          

      (1)  Places or authorizes the placing of his ITS name on a   743          

certificated security CERTIFICATE, otherwise than as               744          

authenticating trustee, registrar, transfer agent, or the like,    746          

to evidence that it represents a share, participation, or other    747          

interest in his ITS property or in an enterprise, or to evidence   749          

his ITS duty to perform an obligation represented by the           750          

certificated security CERTIFICATE;                                 751          

      (2)  Creates shares, participations, or other interests in   753          

his ITS property or in an enterprise, or undertakes obligations,   755          

                                                          18     

                                                                 
which shares, participations, interests, or obligations THAT are   756          

uncertificated securities;                                                      

      (3)  Directly or indirectly creates fractional interests in  758          

his ITS rights or property, which IF THE fractional interests are  760          

represented by certificated securities SECURITY CERTIFICATES; or   761          

      (4)  Becomes responsible for, or in place of, any other      763          

person described as an issuer in this section.                     764          

      (B)  With respect to obligations on or defenses to a         766          

security, a guarantor is an issuer to the extent of his ITS        767          

guaranty, whether or not his ITS obligation is noted on a          768          

certificated security or on statements of uncertificated           769          

securities sent pursuant to section 1308.44 of the Revised Code    771          

CERTIFICATE.                                                                    

      (C)  With respect to registration of transfer, pledge, or    773          

release as provided in sections 1308.37 to 1308.44 of the Revised  774          

Code, "issuer" means a person on whose behalf transfer books are   775          

maintained.                                                        776          

      Sec. 1308.09.  (A)  Even against a purchaser for value and   785          

without notice, the terms of a CERTIFICATED security include:      786          

      (1)  If the security is certificated, those TERMS stated on  788          

the security;                                                      789          

      (2)  If the security is uncertificated, those contained in   791          

the initial transaction statement sent to such purchaser or, if    792          

his interest is transferred to him other than by registration of   793          

transfer, pledge, or release, the initial transaction statement    795          

sent to the registered owner or registered pledgee; and            796          

      (3)  Those CERTIFICATE AND TERMS made part of the security   798          

by reference, on the certificated security or in the initial       799          

transaction statement, CERTIFICATE to another instrument,          800          

indenture, or document or to a constitution, statute, ordinance,   802          

rule, regulation, order, or the like, to the extent that the       803          

terms referred to do not conflict with the terms stated on the     804          

certificated security or contained in the statement CERTIFICATE.   805          

A reference under division (A)(3) of this section does not of      807          

                                                          19     

                                                                 
itself charge a purchaser for value with notice of a defect going  808          

to the validity of the security, even though IF the certificated   809          

security or statement CERTIFICATE expressly states that a person   810          

accepting it admits notice.                                                     

      THE TERMS OF AN UNCERTIFICATED SECURITY INCLUDE THOSE        812          

STATED IN ANY INSTRUMENT, INDENTURE, OR DOCUMENT, OR IN A          813          

CONSTITUTION, STATUTE, ORDINANCE, RULE, REGULATION, ORDER, OR THE  814          

LIKE, PURSUANT TO WHICH THE SECURITY IS ISSUED.                                 

      (B)(1) THE FOLLOWING RULES APPLY IF AN ISSUER ASSERTS THAT   816          

A SECURITY IS NOT VALID:                                           817          

      (1)  A certificated security in the hands of a purchaser     819          

for value or an uncertificated security as to which an initial     820          

transaction statement has been sent to a purchaser for value,      821          

other than a security ONE issued by a government or governmental   822          

SUBDIVISION, agency, or unit INSTRUMENTALITY, even though issued   824          

with a defect going to its validity, is valid with respect to the  825          

IN THE HANDS OF A purchaser if he is FOR VALUE AND without notice  826          

of the particular defect unless the defect involves a violation    827          

of A constitutional provisions, in which PROVISION.  IN THAT       829          

case, the security is valid with respect to IN THE HANDS OF a      830          

subsequent purchaser for value and without notice of the defect,   831          

OTHER THAN ONE WHO TAKES BY ORIGINAL ISSUE.                        832          

      (2)  The provisions of division (B)(1) of this section       834          

apply to an issuer that is a government or governmental            835          

SUBDIVISION, agency, or unit INSTRUMENTALITY only if either there  837          

has been substantial compliance with the legal requirements        839          

governing the issue or the issuer has received a substantial       840          

consideration for the issue as a whole or for the particular       841          

security and a stated purpose of the issue is one for which the    842          

issuer has power to borrow money or issue the security.            843          

      (C)  Except as OTHERWISE provided in the case of certain     845          

unauthorized signatures on issue under section 1308.12 of the      847          

Revised Code, lack of genuineness of a certificated security or    848          

an initial transaction statement is a complete defense, even       849          

                                                          20     

                                                                 
against a purchaser for value and without notice.                  850          

      (D)  All other defenses of the issuer of a certificated or   852          

uncertificated security, including nondelivery and conditional     853          

delivery of a certificated security, are ineffective against a     854          

purchaser for value who has taken THE CERTIFICATED SECURITY        855          

without notice of the particular defense.                          856          

      (E)  Nothing in this THIS section shall be construed to      858          

DOES NOT affect the right of a party to CANCEL a CONTRACT FOR A    860          

SECURITY "when, as and if issued" or a "when distributed"          861          

contract to cancel the contract in the event of a material change  862          

in the character of the security that is the subject of the                     

contract or in the plan or arrangement pursuant to which the       864          

security is to be issued or distributed.                                        

      (F)  IF A SECURITY IS HELD BY A SECURITIES INTERMEDIARY      866          

AGAINST WHOM AN ENTITLEMENT HOLDER HAS A SECURITY ENTITLEMENT      867          

WITH RESPECT TO THE SECURITY, THE ISSUER MAY NOT ASSERT ANY        868          

DEFENSE THAT THE ISSUER COULD NOT ASSERT IF THE ENTITLEMENT        869          

HOLDER HELD THE SECURITY DIRECTLY.                                              

      Sec. 1308.10.  (A)  After an act or event, OTHER THAN A      878          

CALL THAT HAS BEEN REVOKED, creating a right to immediate          880          

performance of the principal obligation represented by a           881          

certificated security or that sets a date on or after which the    882          

security is to be presented or surrendered for redemption or                    

exchange, a purchaser is charged with notice of any defect in its  883          

issue or defense of the issuer if THE ACT OR EVENT:                884          

      (1)  The act or event is one requiring (A)  REQUIRES the     887          

payment of money, the delivery of A certificated securities                     

SECURITY, the registration of transfer of AN uncertificated        889          

securities SECURITY, or any of these THEM on presentation or       890          

surrender of the certificated security CERTIFICATE, the funds      891          

MONEY or securities are SECURITY IS available on the date set for  892          

payment or exchange, and he THE PURCHASER takes the security more  894          

than one year after that date; and OR                              895          

      (2)  The act or event is (B)  IS not covered by division     898          

                                                          21     

                                                                 
(A)(1) of this section and he THE PURCHASER takes the security     899          

more than two years after the date set for surrender or            900          

presentation or the date on which performance became due.          901          

      (B)  A call that has been revoked is not within division     903          

(A) of this section.                                               904          

      Sec. 1308.11.  (A)  A restriction on transfer of a security  913          

imposed by the issuer, even though IF otherwise lawful, is         914          

ineffective against any A person without actual knowledge of it    915          

unless:                                                            916          

      (A)(1)  The security is certificated and the restriction is  918          

noted conspicuously thereon ON THE SECURITY CERTIFICATE; or        919          

      (B)(2)  The security is uncertificated and a notation of     922          

the restriction is contained in the initial transaction statement               

sent to the person or, if his interest is transferred to him       924          

other than by registration of transfer, pledge, or release, the    925          

initial transaction statement sent to the registered owner or the  927          

registered pledgee HAS BEEN NOTIFIED OF THE RESTRICTION.           928          

      (B)  A LIEN IN FAVOR OF AN ISSUER UPON A CERTIFICATED        930          

SECURITY IS VALID AGAINST A PURCHASER ONLY IF THE RIGHT OF THE     931          

ISSUER TO THE LIEN IS NOTED CONSPICUOUSLY ON THE SECURITY          932          

CERTIFICATE.                                                                    

      Sec. 1308.12.  An unauthorized signature placed on a         941          

certificated security prior to CERTIFICATE BEFORE or in the        943          

course of issue or placed on an initial transaction statement is                

ineffective, but the signature is effective in favor of a          945          

purchaser for value of the certificated security or a purchaser    946          

for value of an uncertified security to whom the initial           947          

transaction statement has been sent, if the purchaser is without   948          

notice of the lack of authority and if the signing has been done   949          

by:                                                                950          

      (A)  An authenticating trustee, registrar, transfer agent,   952          

or other person entrusted by the issuer with the signing of the    953          

security, CERTIFICATE OR of similar securities SECURITY            955          

CERTIFICATES, or of initial transaction statements or the          956          

                                                          22     

                                                                 
immediate preparation for signing of any of them; or               957          

      (B)  An employee of the issuer, or of any of the foregoing   959          

PERSONS LISTED IN DIVISION (A) OF THIS SECTION, entrusted with     960          

responsible handling of the security or initial transaction        961          

statement CERTIFICATE.                                             962          

      Sec. 1308.13.  (A)  If a certificated security CERTIFICATE   971          

contains the signatures necessary to its issue or transfer but is  973          

incomplete in any other respect:                                   974          

      (1)  Any person may complete it by filling in the blanks as  976          

authorized; and                                                    977          

      (2)  Even though IF the blanks are incorrectly filled in,    979          

the security as completed is enforceable by a purchaser who took   980          

it for value and without notice of the incorrectness.              981          

      (B)  A complete certificated security CERTIFICATE that has   983          

been improperly altered, even though IF fraudulently, remains      984          

enforceable, but only according to its original terms.             985          

      (C)  If an initial transaction statement contains the        987          

signatures necessary to its validity, but is incomplete in any     988          

other respect:                                                     989          

      (1)  Any person may complete it by filling in the blanks as  991          

authorized; and                                                    992          

      (2)  Even though the blanks are incorrectly filled in, the   994          

statement as completed is effective in favor of the person to      995          

whom it is sent if he purchased the security referred to therein   997          

for value and without notice of the incorrectness.                              

      (D)  A complete initial transaction statement that has been  999          

improperly altered, even though fraudulently, is effective in      1,000        

favor of a purchaser to whom it has been sent, but only according  1,001        

to its original terms.                                             1,002        

      Sec. 1308.14.  (A)  Prior to BEFORE due presentment for      1,011        

registration of transfer of a certificated security in registered  1,012        

form OR OF AN INSTRUCTION REQUESTING REGISTRATION OF TRANSFER OF   1,013        

AN UNCERTIFICATED SECURITY, the issuer or indenture trustee may    1,014        

treat the registered owner as the person exclusively entitled to   1,015        

                                                          23     

                                                                 
vote, to receive notifications, and otherwise to exercise all the  1,016        

rights and powers of an owner.                                     1,017        

      (B)  Subject to the provisions of divisions (C), (D), and    1,019        

(F) of this section, the issuer or indenture trustee may treat     1,020        

the registered owner of an uncertificated security as the person   1,021        

exclusively entitled to vote, to receive notifications, and        1,022        

otherwise to exercise all the rights and powers of an owner.       1,023        

      (C)  The registered owner of an uncertificated security      1,025        

that is subject to a registered pledge is not entitled to          1,026        

registration of transfer prior to the due presentment to the       1,027        

issuer of a release instruction.  The exercise of conversion       1,028        

rights with respect to a convertible uncertificated security is a  1,029        

transfer within the meaning of this section.                       1,030        

      (D)  Upon due presentment of a transfer instruction from     1,032        

the registered pledgee of an uncertificated security, the issuer   1,033        

shall:                                                             1,034        

      (1)  Register the transfer of the security to the new owner  1,036        

free of pledge, if the instruction specifies a new owner, who may  1,037        

be the registered pledgee, and does not specify a pledgee;         1,038        

      (2)  Register the transfer of the security to the new owner  1,040        

subject to the interest of the existing pledgee, if the            1,041        

instruction specifies a new owner and the existing pledgee; or     1,042        

      (3)  Register the release of the security from the existing  1,044        

pledge and register the pledge of the security to the other        1,045        

pledgee, if the instruction specifies the existing owner and       1,046        

another pledgee.                                                   1,047        

      (E)  Continuity of perfection of a security interest is not  1,049        

broken by registration of transfer under division (D)(2) of this   1,050        

section or by registration of release and pledge under division    1,051        

(D)(3) of this section, if the security interest is assigned.      1,052        

      (F)  If an uncertificated security is subject to a           1,054        

registered pledge:                                                 1,055        

      (1)  Any uncertificated securities issued in exchange for    1,057        

or distributed with respect to the pledged security shall be       1,058        

                                                          24     

                                                                 
registered subject to the pledge;                                  1,059        

      (2)  Any certificated securities issued in exchange for or   1,061        

distributed with respect to the pledged security shall be          1,062        

delivered to the registered pledgee; and                           1,063        

      (3)  Any money paid in exchange for or in redemption of      1,065        

part or all of the security shall be paid to the registered        1,066        

pledgee.                                                           1,067        

      (G)  Nothing in sections 1308.01 to 1308.44 of the Revised   1,069        

Code shall be construed to THIS CHAPTER DOES NOT affect the        1,070        

liability of the registered owner of a security for calls,         1,071        

assessments, or the like.                                          1,072        

      Sec. 1308.15.  (A)  A person placing his signature upon      1,081        

SIGNING a certificated security or an initial transaction          1,082        

statement CERTIFICATE as authenticating trustee, registrar,        1,083        

transfer agent, or the like, warrants to a purchaser for value of  1,084        

the certificated security or a purchaser for value of an           1,086        

uncertificated security to whom the initial transaction statement  1,087        

has been sent, if the purchaser is without notice of the           1,088        

particular defect, that:                                                        

      (1)  The certificated security or initial transaction        1,090        

CERTIFICATE is genuine;                                            1,091        

      (2)  His THE PERSON'S own participation in the issue or      1,093        

registration of the transfer, pledge, or release of the security   1,094        

is within his THE PERSON'S capacity and within the scope of the    1,095        

authority received by him THE PERSON from the issuer; and          1,096        

      (3)  He THE PERSON has reasonable grounds to believe the     1,098        

CERTIFICATED security is in the form and within the amount the     1,099        

issuer is authorized to issue.                                     1,101        

      (B)  Unless otherwise agreed, a person by so placing his     1,103        

signature SIGNING UNDER DIVISION (A) OF THIS SECTION does not      1,105        

assume responsibility for the validity of the security in other                 

respects.                                                                       

      Sec. 1308.16.  (A)  Upon transfer EXCEPT AS OTHERWISE        1,114        

PROVIDED IN DIVISIONS (B) AND (C) OF THIS SECTION, UPON DELIVERY   1,115        

                                                          25     

                                                                 
of a CERTIFICATED OR UNCERTIFICATED security to a purchaser as     1,116        

provided in section 1308.28 of the Revised Code, the purchaser     1,118        

acquires the ALL rights in the security which his THAT THE         1,119        

transferor had or had actual authority POWER to convey unless the  1,121        

purchaser's rights are limited by division (D) of section 1308.17               

of the Revised Code TRANSFER.                                      1,122        

      (B)  A transferee PURCHASER of a limited interest acquires   1,124        

rights only to the extent of the interest transferred PURCHASED.   1,126        

The creation or release of a security interest in a security is    1,127        

the transfer of a limited interest in that security.               1,128        

      (C)  A PURCHASER OF A CERTIFICATED SECURITY WHO AS A         1,130        

PREVIOUS HOLDER HAD NOTICE OF AN ADVERSE CLAIM DOES NOT IMPROVE    1,131        

ITS POSITION BY TAKING FROM A PROTECTED PURCHASER.                 1,132        

      Sec. 1308.17.  (A)  A "bona fide PROTECTED purchaser" is     1,141        

MEANS a purchaser for value in good faith and without OF A         1,142        

CERTIFICATED OR UNCERTIFICATED SECURITY, OR OF AN INTEREST         1,143        

THEREIN, WHO:                                                                   

      (1)  GIVES VALUE;                                            1,145        

      (2)  DOES NOT HAVE notice of any adverse claim:              1,147        

      (1)  Who takes delivery TO THE SECURITY; AND                 1,149        

      (3)  OBTAINS CONTROL of a THE certificated OR                1,151        

UNCERTIFICATED security in bearer form or in registered form,      1,152        

issued or indorsed to him or in blank;                             1,153        

      (2)  To whom the transfer, pledge, or release of an          1,155        

uncertificated security is registered on the books of the issuer;  1,156        

or                                                                 1,157        

      (3)  To whom a security is transferred under the provisions  1,159        

of division (A)(3), (4)(a), or (7) of section 1308.28 of the       1,160        

Revised Code.                                                      1,161        

      (B)  "Adverse claim" includes a claim that a transfer was    1,163        

or would be wrongful or that a particular adverse person is the    1,164        

owner of or has an interest in the security.                       1,165        

      (C)  A bona fide purchaser in IN addition to acquiring the   1,167        

rights of a purchaser, as provided in section 1308.16 of the       1,168        

                                                          26     

                                                                 
Revised Code, A PROTECTED PURCHASER also acquires his ITS          1,170        

interest in the security free of any adverse claim.                1,171        

      (D)  Notwithstanding division (A) of section 1308.16 of the  1,173        

Revised Code, the transferee of a particular certificated          1,174        

security who has been a party to any fraud or illegality           1,175        

affecting the security, or who as a prior holder of that           1,176        

certificated security had notice of an adverse claim, cannot       1,177        

improve his position by taking from a bona fide purchaser.         1,178        

      Sec. 1308.18.  (A)  A PERSON ACQUIRES A SECURITY OR AN       1,180        

INTEREST THEREIN, UNDER THIS CHAPTER, IF:                          1,181        

      (1)  THE PERSON IS A PURCHASER TO WHOM A SECURITY IS         1,183        

DELIVERED PURSUANT TO SECTION 1308.27 OF THE REVISED CODE; OR      1,184        

      (2)  THE PERSON ACQUIRES A SECURITY ENTITLEMENT TO THE       1,186        

SECURITY PURSUANT TO SECTION 1308.51 OF THE REVISED CODE.          1,187        

      (B)  A PERSON ACQUIRES A FINANCIAL ASSET, OTHER THAN A       1,189        

SECURITY, OR AN INTEREST THEREIN, UNDER THIS CHAPTER, IF THE       1,190        

PERSON ACQUIRES A SECURITY ENTITLEMENT TO THE FINANCIAL ASSET.     1,191        

      (C)  A PERSON WHO ACQUIRES A SECURITY ENTITLEMENT TO A       1,193        

SECURITY OR OTHER FINANCIAL ASSET HAS THE RIGHTS SPECIFIED IN      1,194        

SECTIONS 1308.51 TO 1308.61 OF THE REVISED CODE, BUT IS A          1,195        

PURCHASER OF ANY SECURITY, SECURITY ENTITLEMENT, OR OTHER                       

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY ONLY TO THE    1,196        

EXTENT PROVIDED IN SECTION 1308.53 OF THE REVISED CODE.            1,197        

      (D)  UNLESS THE CONTEXT SHOWS THAT A DIFFERENT MEANING IS    1,199        

INTENDED, A PERSON WHO IS REQUIRED BY OTHER LAW, REGULATION,       1,200        

RULE, OR AGREEMENT TO TRANSFER, DELIVER, PRESENT, SURRENDER,       1,201        

EXCHANGE, OR OTHERWISE PUT IN THE POSSESSION OF ANOTHER PERSON A   1,202        

SECURITY OR FINANCIAL ASSET SATISFIES THAT REQUIREMENT BY CAUSING  1,203        

THE OTHER PERSON TO ACQUIRE AN INTEREST IN THE SECURITY OR         1,204        

FINANCIAL ASSET PURSUANT TO DIVISION (A) OR (B) OF THIS SECTION.   1,205        

      Sec. 1308.19.  (A)  A PERSON HAS NOTICE OF AN ADVERSE CLAIM  1,207        

IF:                                                                             

      (1)  THE PERSON KNOWS OF THE ADVERSE CLAIM;                  1,209        

      (2)  THE PERSON IS AWARE OF FACTS SUFFICIENT TO INDICATE     1,211        

                                                          27     

                                                                 
THAT THERE IS A SIGNIFICANT PROBABILITY THAT THE ADVERSE CLAIM     1,212        

EXISTS AND DELIBERATELY AVOIDS INFORMATION THAT WOULD ESTABLISH    1,213        

THE EXISTENCE OF THE ADVERSE CLAIM; OR                                          

      (3)  THE PERSON HAS A DUTY, IMPOSED BY STATUTE OR RULE, TO   1,215        

INVESTIGATE WHETHER AN ADVERSE CLAIM EXISTS, AND THE               1,216        

INVESTIGATION SO REQUIRED WOULD ESTABLISH THE EXISTENCE OF THE     1,217        

ADVERSE CLAIM.                                                                  

      (B)  HAVING KNOWLEDGE THAT A FINANCIAL ASSET OR INTEREST     1,219        

THEREIN IS OR HAS BEEN TRANSFERRED BY A REPRESENTATIVE IMPOSES NO  1,220        

DUTY OF INQUIRY INTO THE RIGHTFULNESS OF A TRANSACTION AND IS NOT  1,221        

NOTICE OF AN ADVERSE CLAIM.  HOWEVER, A PERSON WHO KNOWS THAT A    1,222        

REPRESENTATIVE HAS TRANSFERRED A FINANCIAL ASSET OR INTEREST       1,223        

THEREIN IN A TRANSACTION THAT IS, OR WHOSE PROCEEDS ARE BEING      1,224        

USED, FOR THE INDIVIDUAL BENEFIT OF THE REPRESENTATIVE OR                       

OTHERWISE IN BREACH OF DUTY HAS NOTICE OF AN ADVERSE CLAIM.        1,225        

      (C)  AN ACT OR EVENT THAT CREATES A RIGHT TO IMMEDIATE       1,227        

PERFORMANCE OF THE PRINCIPAL OBLIGATION REPRESENTED BY A SECURITY  1,228        

CERTIFICATE OR SETS A DATE ON OR AFTER WHICH THE CERTIFICATE IS    1,229        

TO BE PRESENTED OR SURRENDERED FOR REDEMPTION OR EXCHANGE DOES     1,230        

NOT ITSELF CONSTITUTE NOTICE OF AN ADVERSE CLAIM EXCEPT IN THE     1,231        

CASE OF A TRANSFER MORE THAN:                                                   

      (1)  ONE YEAR AFTER A DATE SET FOR PRESENTMENT OR SURRENDER  1,233        

FOR REDEMPTION OR EXCHANGE; OR                                     1,234        

      (2)  SIX MONTHS AFTER A DATE SET FOR PAYMENT OF MONEY        1,236        

AGAINST PRESENTATION OR SURRENDER OF THE CERTIFICATE, IF MONEY     1,237        

WAS AVAILABLE FOR PAYMENT ON THAT DATE.                            1,238        

      (D)  A PURCHASER OF A CERTIFICATED SECURITY HAS NOTICE OF    1,240        

AN ADVERSE CLAIM IF THE SECURITY CERTIFICATE:                      1,241        

      (1)  WHETHER IN BEARER OR REGISTERED FORM, HAS BEEN          1,243        

INDORSED "FOR COLLECTION" OR "FOR SURRENDER" OR FOR SOME OTHER     1,244        

PURPOSE NOT INVOLVING TRANSFER; OR                                 1,245        

      (2)  IS IN BEARER FORM AND HAS ON IT AN UNAMBIGUOUS          1,247        

STATEMENT THAT IT IS THE PROPERTY OF A PERSON OTHER THAN THE       1,248        

TRANSFEROR, BUT THE MERE WRITING OF A NAME ON THE CERTIFICATE IS   1,249        

                                                          28     

                                                                 
NOT SUCH A STATEMENT.                                                           

      (E)  FILING OF A FINANCING STATEMENT UNDER CHAPTER 1309. OF  1,252        

THE REVISED CODE IS NOT NOTICE OF AN ADVERSE CLAIM TO A FINANCIAL               

ASSET.                                                                          

      Sec. 1308.20.  (A)  A PERSON WHO TRANSFERS A CERTIFICATED    1,254        

SECURITY TO A PURCHASER FOR VALUE WARRANTS TO THE PURCHASER, AND   1,255        

AN INDORSER, IF THE TRANSFER IS BY INDORSEMENT, WARRANTS TO ANY    1,256        

SUBSEQUENT PURCHASER, THAT:                                                     

      (1)  THE CERTIFICATE IS GENUINE AND HAS NOT BEEN MATERIALLY  1,258        

ALTERED;                                                                        

      (2)  THE TRANSFEROR OR INDORSER DOES NOT KNOW OF ANY FACT    1,260        

THAT MIGHT IMPAIR THE VALIDITY OF THE SECURITY;                    1,261        

      (3)  THERE IS NO ADVERSE CLAIM TO THE SECURITY;              1,263        

      (4)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,265        

TRANSFER;                                                                       

      (5)  IF THE TRANSFER IS BY INDORSEMENT, THE INDORSEMENT IS   1,267        

MADE BY AN APPROPRIATE PERSON, OR IF THE INDORSEMENT IS BY AN      1,268        

AGENT, THE AGENT HAS ACTUAL AUTHORITY TO ACT ON BEHALF OF THE      1,269        

APPROPRIATE PERSON; AND                                                         

      (6)  THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.       1,271        

      (B)  A PERSON WHO ORIGINATES AN INSTRUCTION FOR              1,273        

REGISTRATION OF TRANSFER OF AN UNCERTIFICATED SECURITY TO A        1,274        

PURCHASER FOR VALUE WARRANTS TO THE PURCHASER THAT:                1,275        

      (1)  THE INSTRUCTION IS MADE BY AN APPROPRIATE PERSON, OR    1,277        

IF THE INSTRUCTION IS BY AN AGENT, THE AGENT HAS ACTUAL AUTHORITY  1,278        

TO ACT ON BEHALF OF THE APPROPRIATE PERSON;                        1,279        

      (2)  THE SECURITY IS VALID;                                  1,281        

      (3)  THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND          1,283        

      (4)  AT THE TIME THE INSTRUCTION IS PRESENTED TO THE         1,285        

ISSUER:                                                                         

      (a)  THE PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF   1,287        

TRANSFER;                                                          1,288        

      (b)  THE TRANSFER WILL BE REGISTERED BY THE ISSUER FREE      1,290        

FROM ALL LIENS, SECURITY INTERESTS, RESTRICTIONS, AND CLAIMS       1,291        

                                                          29     

                                                                 
OTHER THAN THOSE SPECIFIED IN THE INSTRUCTION;                     1,292        

      (c)  THE TRANSFER WILL NOT VIOLATE ANY RESTRICTION ON        1,294        

TRANSFER; AND                                                      1,295        

      (d)  THE REQUESTED TRANSFER WILL OTHERWISE BE EFFECTIVE AND  1,297        

RIGHTFUL.                                                          1,298        

      (C)  A PERSON WHO TRANSFERS AN UNCERTIFICATED SECURITY TO A  1,300        

PURCHASER FOR VALUE AND DOES NOT ORIGINATE AN INSTRUCTION IN       1,301        

CONNECTION WITH THE TRANSFER WARRANTS THAT:                        1,302        

      (1)  THE UNCERTIFICATED SECURITY IS VALID;                   1,304        

      (2)  THERE IS NO ADVERSE CLAIM TO THE SECURITY;              1,306        

      (3)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,308        

TRANSFER; AND                                                                   

      (4)  THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.       1,310        

      (D)  A PERSON WHO INDORSES A SECURITY CERTIFICATE WARRANTS   1,312        

TO THE ISSUER THAT:                                                1,313        

      (1)  THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND          1,315        

      (2)  THE INDORSEMENT IS EFFECTIVE.                           1,317        

      (E)  A PERSON WHO ORIGINATES AN INSTRUCTION FOR              1,319        

REGISTRATION OF TRANSFER OF AN UNCERTIFICATED SECURITY WARRANTS    1,320        

TO THE ISSUER THAT:                                                             

      (1)  THE INSTRUCTION IS EFFECTIVE; AND                       1,322        

      (2)  AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER  1,324        

THE PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF TRANSFER.    1,325        

      (F)  A PERSON WHO PRESENTS A CERTIFICATED SECURITY FOR       1,327        

REGISTRATION OF TRANSFER OR FOR PAYMENT OR EXCHANGE WARRANTS TO    1,328        

THE ISSUER THAT THE PERSON IS ENTITLED TO THE REGISTRATION,        1,329        

PAYMENT, OR EXCHANGE, BUT A PURCHASER FOR VALUE AND WITHOUT        1,330        

NOTICE OF ADVERSE CLAIMS TO WHOM TRANSFER IS REGISTERED WARRANTS   1,331        

ONLY THAT THE PERSON HAS NO KNOWLEDGE OF ANY UNAUTHORIZED                       

SIGNATURE IN A NECESSARY INDORSEMENT.                              1,332        

      (G)  IF A PERSON ACTS AS AGENT OF ANOTHER IN DELIVERING A    1,334        

CERTIFICATED SECURITY TO A PURCHASER, THE IDENTITY OF THE          1,335        

PRINCIPAL WAS KNOWN TO THE PERSON TO WHOM THE CERTIFICATE WAS      1,336        

DELIVERED, AND THE CERTIFICATE DELIVERED BY THE AGENT WAS          1,337        

                                                          30     

                                                                 
RECEIVED BY THE AGENT FROM THE PRINCIPAL OR RECEIVED BY THE AGENT  1,338        

FROM ANOTHER PERSON AT THE DIRECTION OF THE PRINCIPAL, THE PERSON  1,339        

DELIVERING THE SECURITY CERTIFICATE WARRANTS ONLY THAT THE                      

DELIVERING PERSON HAS AUTHORITY TO ACT FOR THE PRINCIPAL AND DOES  1,340        

NOT KNOW OF ANY ADVERSE CLAIM TO THE CERTIFICATED SECURITY.        1,341        

      (H)  A SECURED PARTY WHO REDELIVERS A SECURITY CERTIFICATE   1,343        

RECEIVED, OR AFTER PAYMENT AND ON ORDER OF THE DEBTOR DELIVERS     1,344        

THE SECURITY CERTIFICATE TO ANOTHER PERSON, MAKES ONLY THE         1,345        

WARRANTIES OF AN AGENT UNDER DIVISION (G) OF THIS SECTION.         1,346        

      (I)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (G) OF THIS    1,348        

SECTION, A BROKER ACTING FOR A CUSTOMER MAKES TO THE ISSUER AND A  1,349        

PURCHASER THE WARRANTIES PROVIDED IN DIVISIONS (A) TO (F) OF THIS  1,350        

SECTION.  A BROKER THAT DELIVERS A SECURITY CERTIFICATE TO ITS     1,351        

CUSTOMER, OR CAUSES ITS CUSTOMER TO BE REGISTERED AS THE OWNER OF  1,352        

AN UNCERTIFICATED SECURITY, MAKES TO THE CUSTOMER THE WARRANTIES   1,353        

PROVIDED IN DIVISION (A) OR (B) OF THIS SECTION, AND HAS THE       1,354        

RIGHTS AND PRIVILEGES OF A PURCHASER UNDER THIS SECTION.  THE      1,355        

WARRANTIES OF AND IN FAVOR OF THE BROKER ACTING AS AN AGENT ARE    1,356        

IN ADDITION TO APPLICABLE WARRANTIES GIVEN BY AND IN FAVOR OF THE  1,357        

CUSTOMER.                                                                       

      Sec. 1308.21.  (A)  A PERSON WHO ORIGINATES AN ENTITLEMENT   1,359        

ORDER TO A SECURITIES INTERMEDIARY WARRANTS TO THE SECURITIES      1,360        

INTERMEDIARY THAT:                                                              

      (1)  THE ENTITLEMENT ORDER IS MADE BY AN APPROPRIATE         1,362        

PERSON, OR IF THE ENTITLEMENT ORDER IS BY AN AGENT, THE AGENT HAS  1,363        

ACTUAL AUTHORITY TO ACT ON BEHALF OF THE APPROPRIATE PERSON; AND   1,364        

      (2)  THERE IS NO ADVERSE CLAIM TO THE SECURITY ENTITLEMENT.  1,366        

      (B)  A PERSON WHO DELIVERS A SECURITY CERTIFICATE TO A       1,368        

SECURITIES INTERMEDIARY FOR CREDIT TO A SECURITIES ACCOUNT OR      1,369        

ORIGINATES AN INSTRUCTION WITH RESPECT TO AN UNCERTIFICATED        1,370        

SECURITY DIRECTING THAT THE UNCERTIFICATED SECURITY BE CREDITED    1,371        

TO A SECURITIES ACCOUNT MAKES TO THE SECURITIES INTERMEDIARY THE   1,372        

WARRANTIES SPECIFIED IN DIVISION (A) OR (B) OF SECTION 1308.20 OF  1,373        

THE REVISED CODE.                                                               

                                                          31     

                                                                 
      (C)  IF A SECURITIES INTERMEDIARY DELIVERS A SECURITY        1,375        

CERTIFICATE TO ITS ENTITLEMENT HOLDER OR CAUSES ITS ENTITLEMENT    1,376        

HOLDER TO BE REGISTERED AS THE OWNER OF AN UNCERTIFICATED          1,377        

SECURITY, THE SECURITIES INTERMEDIARY MAKES TO THE ENTITLEMENT     1,378        

HOLDER THE WARRANTIES SPECIFIED IN DIVISION (A) OR (B) OF SECTION  1,379        

1308.20 OF THE REVISED CODE.                                                    

      Sec. 1308.22.  (A)  AN INDORSEMENT MAY BE IN BLANK OR        1,388        

SPECIAL.  AN INDORSEMENT IN BLANK INCLUDES AN INDORSEMENT TO       1,390        

BEARER.  A SPECIAL INDORSEMENT SPECIFIES TO WHOM A SECURITY IS TO  1,391        

BE TRANSFERRED OR WHO HAS POWER TO TRANSFER IT.  A HOLDER MAY      1,393        

CONVERT A BLANK INDORSEMENT TO A SPECIAL INDORSEMENT.                           

      (B)  AN INDORSEMENT PURPORTING TO BE ONLY OF PART OF A       1,395        

SECURITY CERTIFICATE REPRESENTING UNITS INTENDED BY THE ISSUER TO  1,396        

BE SEPARATELY TRANSFERABLE IS EFFECTIVE TO THE EXTENT OF THE       1,397        

INDORSEMENT.                                                                    

      (C)  AN INDORSEMENT, WHETHER SPECIAL OR IN BLANK, DOES NOT   1,399        

CONSTITUTE A TRANSFER UNTIL DELIVERY OF THE CERTIFICATE ON WHICH   1,400        

IT APPEARS OR, IF THE INDORSEMENT IS ON A SEPARATE DOCUMENT,       1,402        

UNTIL DELIVERY OF BOTH THE DOCUMENT AND THE CERTIFICATE.           1,403        

      (D)  If a certificated security CERTIFICATE in registered    1,406        

form has been delivered to a purchaser without a necessary         1,407        

indorsement he, THE PURCHASER may become a bona fide PROTECTED     1,408        

purchaser only as of the time WHEN the indorsement is supplied;    1,409        

but.  HOWEVER, against the A transferor, the A transfer is         1,411        

complete upon delivery and the purchaser has a specifically        1,412        

enforceable right to have any necessary indorsement supplied.      1,413        

      (E)  AN INDORSEMENT OF A SECURITY CERTIFICATE IN BEARER      1,415        

FORM MAY GIVE NOTICE OF AN ADVERSE CLAIM TO THE CERTIFICATE, BUT   1,416        

IT DOES NOT OTHERWISE AFFECT A RIGHT TO REGISTRATION THAT THE      1,417        

HOLDER POSSESSES.                                                               

      (F)  UNLESS OTHERWISE AGREED, A PERSON MAKING AN             1,419        

INDORSEMENT ASSUMES ONLY THE OBLIGATIONS PROVIDED IN SECTION       1,420        

1308.20 OF THE REVISED CODE AND NOT AN OBLIGATION THAT THE         1,421        

SECURITY WILL BE HONORED BY THE ISSUER.                                         

                                                          32     

                                                                 
      Sec. 1308.23.  (A)  "APPROPRIATE PERSON" MEANS:              1,423        

      (1)  WITH RESPECT TO AN INDORSEMENT, THE PERSON SPECIFIED    1,425        

BY A SECURITY CERTIFICATE OR BY AN EFFECTIVE SPECIAL INDORSEMENT   1,426        

TO BE ENTITLED TO THE SECURITY;                                    1,427        

      (2)  WITH RESPECT TO AN INSTRUCTION, THE REGISTERED OWNER    1,429        

OF AN UNCERTIFICATED SECURITY;                                     1,430        

      (3)  WITH RESPECT TO AN ENTITLEMENT ORDER, THE ENTITLEMENT   1,432        

HOLDER;                                                                         

      (4)  IF THE PERSON DESIGNATED IN DIVISION (A)(1), (2), OR    1,434        

(3) OF THIS SECTION IS DECEASED, THE DESIGNATED PERSON'S           1,435        

SUCCESSOR TAKING UNDER OTHER LAW OR THE DESIGNATED PERSON'S        1,436        

PERSONAL REPRESENTATIVE ACTING FOR THE ESTATE OF THE DECEDENT; OR  1,437        

      (5)  IF THE PERSON DESIGNATED IN DIVISION (A)(1), (2), OR    1,439        

(3) OF THIS SECTION LACKS CAPACITY, THE DESIGNATED PERSON'S        1,440        

GUARDIAN, CONSERVATOR, OR OTHER SIMILAR REPRESENTATIVE WHO HAS     1,441        

POWER UNDER OTHER LAW TO TRANSFER THE SECURITY OR FINANCIAL        1,442        

ASSET.                                                                          

      (B)  AN INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER IS    1,444        

EFFECTIVE IF:                                                      1,445        

      (1)  IT IS MADE BY THE APPROPRIATE PERSON;                   1,447        

      (2)  IT IS MADE BY A PERSON WHO HAS POWER UNDER THE LAW OF   1,449        

AGENCY TO TRANSFER THE SECURITY OR FINANCIAL ASSET ON BEHALF OF    1,450        

THE APPROPRIATE PERSON, INCLUDING, IN THE CASE OF AN INSTRUCTION   1,451        

OR ENTITLEMENT ORDER, A PERSON WHO HAS CONTROL UNDER DIVISION      1,452        

(C)(2) OR (D)(2) OF SECTION 1308.24 OF THE REVISED CODE; OR        1,453        

      (3)  THE APPROPRIATE PERSON HAS RATIFIED IT OR IS OTHERWISE  1,455        

PRECLUDED FROM ASSERTING ITS INEFFECTIVENESS.                      1,456        

      (C)  AN INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER MADE  1,458        

BY A REPRESENTATIVE IS EFFECTIVE EVEN IF:                          1,459        

      (1)  THE REPRESENTATIVE HAS FAILED TO COMPLY WITH A          1,461        

CONTROLLING INSTRUMENT OR WITH THE LAW OF THE STATE HAVING         1,462        

JURISDICTION OF THE REPRESENTATIVE RELATIONSHIP, INCLUDING ANY     1,463        

LAW REQUIRING THE REPRESENTATIVE TO OBTAIN COURT APPROVAL OF THE   1,464        

TRANSACTION; OR                                                                 

                                                          33     

                                                                 
      (2)  THE REPRESENTATIVE'S ACTION IN MAKING THE INDORSEMENT,  1,466        

INSTRUCTION, OR ENTITLEMENT ORDER OR USING THE PROCEEDS OF THE     1,467        

TRANSACTION IS OTHERWISE A BREACH OF DUTY.                         1,468        

      (D)  IF A SECURITY IS REGISTERED IN THE NAME OF OR           1,470        

SPECIALLY INDORSED TO A PERSON DESCRIBED AS A REPRESENTATIVE, OR   1,471        

IF A SECURITIES ACCOUNT IS MAINTAINED IN THE NAME OF A PERSON      1,472        

DESCRIBED AS A REPRESENTATIVE, AN INDORSEMENT, INSTRUCTION, OR     1,473        

ENTITLEMENT ORDER MADE BY THE PERSON IS EFFECTIVE EVEN THOUGH THE  1,474        

PERSON IS NO LONGER SERVING IN THE DESCRIBED CAPACITY.                          

      (E)  EFFECTIVENESS OF AN INDORSEMENT, INSTRUCTION, OR        1,476        

ENTITLEMENT ORDER IS DETERMINED AS OF THE DATE THE INDORSEMENT,    1,477        

INSTRUCTION, OR ENTITLEMENT ORDER IS MADE, AND AN INDORSEMENT,     1,478        

INSTRUCTION, OR ENTITLEMENT ORDER DOES NOT BECOME INEFFECTIVE BY   1,479        

REASON OF ANY LATER CHANGE OF CIRCUMSTANCES.                       1,480        

      Sec. 1308.24.  (A)  A PURCHASER HAS "CONTROL" OF A           1,482        

CERTIFICATED SECURITY IN BEARER FORM IF THE CERTIFICATED SECURITY  1,483        

IS DELIVERED TO THE PURCHASER.                                     1,484        

      (B)  A PURCHASER HAS "CONTROL" OF A CERTIFICATED SECURITY    1,486        

IN REGISTERED FORM IF THE CERTIFICATED SECURITY IS DELIVERED TO    1,487        

THE PURCHASER, AND:                                                1,488        

      (1)  THE CERTIFICATE IS INDORSED TO THE PURCHASER OR IN      1,490        

BLANK BY AN EFFECTIVE INDORSEMENT; OR                              1,491        

      (2)  THE CERTIFICATE IS REGISTERED IN THE NAME OF THE        1,493        

PURCHASER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER BY THE  1,494        

ISSUER.                                                                         

      (C)  A PURCHASER HAS "CONTROL" OF AN UNCERTIFICATED          1,496        

SECURITY IF:                                                                    

      (1)  THE UNCERTIFICATED SECURITY IS DELIVERED TO THE         1,498        

PURCHASER; OR                                                                   

      (2)  THE ISSUER HAS AGREED THAT IT WILL COMPLY WITH          1,500        

INSTRUCTIONS ORIGINATED BY THE PURCHASER WITHOUT FURTHER CONSENT   1,501        

BY THE REGISTERED OWNER.                                                        

      (D)  A PURCHASER HAS "CONTROL" OF A SECURITY ENTITLEMENT     1,503        

IF:                                                                             

                                                          34     

                                                                 
      (1)  THE PURCHASER BECOMES THE ENTITLEMENT HOLDER; OR        1,505        

      (2)  THE SECURITIES INTERMEDIARY HAS AGREED THAT IT WILL     1,507        

COMPLY WITH ENTITLEMENT ORDERS ORIGINATED BY THE PURCHASER         1,508        

WITHOUT FURTHER CONSENT BY THE ENTITLEMENT HOLDER.                 1,509        

      (E)  IF AN INTEREST IN A SECURITY ENTITLEMENT IS GRANTED BY  1,511        

THE ENTITLEMENT HOLDER TO THE ENTITLEMENT HOLDER'S OWN SECURITIES  1,512        

INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS CONTROL.             1,513        

      (F)  A PURCHASER WHO HAS SATISFIED THE REQUIREMENTS OF       1,515        

DIVISION (C)(2) OR (D)(2) OF THIS SECTION HAS CONTROL EVEN IF THE  1,516        

REGISTERED OWNER IN THE CASE OF DIVISION (C)(2) OF THIS SECTION    1,517        

OR THE ENTITLEMENT HOLDER IN THE CASE OF DIVISION (D)(2) OF THIS   1,518        

SECTION RETAINS THE RIGHT TO MAKE SUBSTITUTIONS FOR THE            1,519        

UNCERTIFICATED SECURITY OR SECURITY ENTITLEMENT, TO ORIGINATE      1,520        

INSTRUCTIONS OR ENTITLEMENT ORDERS TO THE ISSUER OR SECURITIES     1,521        

INTERMEDIARY, OR OTHERWISE TO DEAL WITH THE UNCERTIFICATED         1,522        

SECURITY OR SECURITY ENTITLEMENT.                                  1,523        

      (G)  AN ISSUER OR A SECURITIES INTERMEDIARY MAY NOT ENTER    1,525        

INTO AN AGREEMENT OF THE KIND DESCRIBED IN DIVISION (C)(2) OR      1,526        

(D)(2) OF THIS SECTION WITHOUT THE CONSENT OF THE REGISTERED       1,527        

OWNER OR ENTITLEMENT HOLDER, BUT AN ISSUER OR A SECURITIES         1,528        

INTERMEDIARY IS NOT REQUIRED TO ENTER INTO SUCH AN AGREEMENT EVEN  1,529        

THOUGH THE REGISTERED OWNER OR ENTITLEMENT HOLDER SO DIRECTS.  AN  1,530        

ISSUER OR SECURITIES INTERMEDIARY THAT HAS ENTERED INTO SUCH AN    1,531        

AGREEMENT IS NOT REQUIRED TO CONFIRM THE EXISTENCE OF THE                       

AGREEMENT TO ANOTHER PARTY UNLESS REQUESTED TO DO SO BY THE        1,532        

REGISTERED OWNER OR ENTITLEMENT HOLDER.                            1,533        

      Sec. 1308.25.  (A)  IF AN INSTRUCTION HAS BEEN ORIGINATED    1,535        

BY AN APPROPRIATE PERSON BUT IS INCOMPLETE IN ANY OTHER RESPECT,   1,536        

ANY PERSON MAY COMPLETE IT AS AUTHORIZED AND THE ISSUER MAY RELY   1,537        

ON IT AS COMPLETED, EVEN THOUGH IT HAS BEEN COMPLETED              1,538        

INCORRECTLY.                                                                    

      (B)  UNLESS OTHERWISE AGREED, A PERSON INITIATING AN         1,540        

INSTRUCTION ASSUMES ONLY THE OBLIGATIONS IMPOSED BY SECTION        1,541        

1308.20 OF THE REVISED CODE AND NOT AN OBLIGATION THAT THE         1,542        

                                                          35     

                                                                 
SECURITY WILL BE HONORED BY THE ISSUER.                                         

      Sec. 1308.26.  (A)  A PERSON WHO GUARANTEES A SIGNATURE OF   1,544        

AN INDORSER OF A SECURITY CERTIFICATE WARRANTS THAT AT THE TIME    1,545        

OF SIGNING:                                                                     

      (1)  THE SIGNATURE WAS GENUINE;                              1,547        

      (2)  THE SIGNER WAS AN APPROPRIATE PERSON TO INDORSE, OR IF  1,549        

THE SIGNATURE IS BY AN AGENT, THE AGENT HAD ACTUAL AUTHORITY TO    1,550        

ACT ON BEHALF OF THE APPROPRIATE PERSON; AND                       1,551        

      (3)  THE SIGNER HAD LEGAL CAPACITY TO SIGN.                  1,553        

      (B)  A PERSON WHO GUARANTEES A SIGNATURE OF THE ORIGINATOR   1,555        

OF AN INSTRUCTION WARRANTS THAT AT THE TIME OF SIGNING:            1,556        

      (1)  THE SIGNATURE WAS GENUINE;                              1,558        

      (2)  THE SIGNER WAS AN APPROPRIATE PERSON TO ORIGINATE THE   1,560        

INSTRUCTION, OR IF THE SIGNATURE IS BY AN AGENT, THE AGENT HAD     1,561        

ACTUAL AUTHORITY TO ACT ON BEHALF OF THE APPROPRIATE PERSON, IF    1,562        

THE PERSON SPECIFIED IN THE INSTRUCTION AS THE REGISTERED OWNER    1,563        

WAS, IN FACT, THE REGISTERED OWNER, AS TO WHICH FACT THE           1,564        

SIGNATURE GUARANTOR DOES NOT MAKE A WARRANTY; AND                               

      (3)  THE SIGNER HAD LEGAL CAPACITY TO SIGN.                  1,567        

      (C)  A PERSON WHO SPECIALLY GUARANTEES THE SIGNATURE OF AN   1,569        

ORIGINATOR OF AN INSTRUCTION MAKES THE WARRANTIES OF A SIGNATURE   1,570        

GUARANTOR UNDER DIVISION (B) OF THIS SECTION AND ALSO WARRANTS     1,571        

THAT AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER:       1,572        

      (1)  THE PERSON SPECIFIED IN THE INSTRUCTION AS THE          1,574        

REGISTERED OWNER OF THE UNCERTIFICATED SECURITY WILL BE THE        1,575        

REGISTERED OWNER; AND                                                           

      (2)  THE TRANSFER OF THE UNCERTIFICATED SECURITY REQUESTED   1,577        

IN THE INSTRUCTION WILL BE REGISTERED BY THE ISSUER FREE FROM ALL  1,578        

LIENS, SECURITY INTERESTS, RESTRICTIONS, AND CLAIMS OTHER THAN     1,579        

THOSE SPECIFIED IN THE INSTRUCTION.                                1,580        

      (D)  A GUARANTOR UNDER DIVISIONS (A) AND (B) OF THIS         1,583        

SECTION OR A SPECIAL GUARANTOR UNDER DIVISION (C) OF THIS SECTION  1,584        

DOES NOT OTHERWISE WARRANT THE RIGHTFULNESS OF THE TRANSFER.                    

      (E)  A PERSON WHO GUARANTEES AN INDORSEMENT OF A SECURITY    1,586        

                                                          36     

                                                                 
CERTIFICATE MAKES THE WARRANTIES OF A SIGNATURE GUARANTOR UNDER    1,587        

DIVISION (A) OF THIS SECTION AND ALSO WARRANTS THE RIGHTFULNESS    1,588        

OF THE TRANSFER IN ALL RESPECTS.                                   1,589        

      (F)  A PERSON WHO GUARANTEES AN INSTRUCTION REQUESTING THE   1,591        

TRANSFER OF AN UNCERTIFICATED SECURITY MAKES THE WARRANTIES OF A   1,592        

SPECIAL SIGNATURE GUARANTOR UNDER DIVISION (C) OF THIS SECTION     1,593        

AND ALSO WARRANTS THE RIGHTFULNESS OF THE TRANSFER IN ALL          1,594        

RESPECTS.                                                                       

      (G)  AN ISSUER MAY NOT REQUIRE A SPECIAL GUARANTY OF         1,596        

SIGNATURE, A GUARANTY OF INDORSEMENT, OR A GUARANTY OF             1,597        

INSTRUCTION AS A CONDITION TO REGISTRATION OF TRANSFER.            1,598        

      (H)  THE WARRANTIES UNDER THIS SECTION ARE MADE TO A PERSON  1,600        

TAKING OR DEALING WITH THE SECURITY IN RELIANCE ON THE GUARANTY,   1,601        

AND THE GUARANTOR IS LIABLE TO THE PERSON FOR LOSS RESULTING FROM  1,602        

THEIR BREACH.  AN INDORSER OR ORIGINATOR OF AN INSTRUCTION WHOSE   1,603        

SIGNATURE, INDORSEMENT, OR INSTRUCTION HAS BEEN GUARANTEED IS      1,604        

LIABLE TO A GUARANTOR FOR ANY LOSS SUFFERED BY THE GUARANTOR AS A  1,605        

RESULT OF BREACH OF THE WARRANTIES OF THE GUARANTOR.                            

      Sec. 1308.27.  (A)  DELIVERY OF A CERTIFICATED SECURITY TO   1,607        

A PURCHASER OCCURS WHEN:                                           1,608        

      (1)  THE PURCHASER ACQUIRES POSSESSION OF THE SECURITY       1,610        

CERTIFICATE;                                                                    

      (2)  ANOTHER PERSON, OTHER THAN A SECURITIES INTERMEDIARY,   1,612        

EITHER ACQUIRES POSSESSION OF THE SECURITY CERTIFICATE ON BEHALF   1,613        

OF THE PURCHASER OR, HAVING PREVIOUSLY ACQUIRED POSSESSION OF THE  1,614        

CERTIFICATE, ACKNOWLEDGES THAT IT HOLDS FOR THE PURCHASER; OR      1,615        

      (3)  A SECURITIES INTERMEDIARY ACTING ON BEHALF OF THE       1,617        

PURCHASER ACQUIRES POSSESSION OF THE SECURITY CERTIFICATE, ONLY    1,618        

IF THE CERTIFICATE IS IN REGISTERED FORM AND HAS BEEN SPECIALLY    1,619        

INDORSED TO THE PURCHASER BY AN EFFECTIVE INDORSEMENT.             1,620        

      (B)  DELIVERY OF AN UNCERTIFICATED SECURITY TO A PURCHASER   1,622        

OCCURS WHEN:                                                       1,623        

      (1)  THE ISSUER REGISTERS THE PURCHASER AS THE REGISTERED    1,625        

OWNER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER; OR         1,626        

                                                          37     

                                                                 
      (2)  ANOTHER PERSON, OTHER THAN A SECURITIES INTERMEDIARY,   1,628        

EITHER BECOMES THE REGISTERED OWNER OF THE UNCERTIFICATED          1,629        

SECURITY ON BEHALF OF THE PURCHASER OR, HAVING PREVIOUSLY BECOME   1,630        

THE REGISTERED OWNER, ACKNOWLEDGES THAT IT HOLDS FOR THE           1,631        

PURCHASER.                                                                      

      Sec. 1308.31.  Unless otherwise agreed, the transferor of a  1,640        

certificated security or the transferor, pledgor, or pledgee of    1,642        

an uncertificated security on due demand must SHALL supply his     1,643        

THE purchaser with any proof of his authority to transfer,         1,645        

pledge, or release or with any other requisite necessary to        1,646        

obtain registration of the transfer, pledge, or release of the     1,648        

security, but if the transfer, pledge, or release is not for       1,649        

value, a transferor, pledgor, or pledgee need not do so COMPLY     1,650        

unless the purchaser furnishes PAYS the necessary expenses.        1,651        

Failure IF THE TRANSFEROR FAILS within a reasonable time to        1,652        

comply with a THE demand made gives, the purchaser the right to    1,654        

MAY reject or rescind the transfer, pledge, or release.            1,655        

      Sec. 1308.32.  (A)  THE INTEREST OF A DEBTOR IN A            1,657        

CERTIFICATED SECURITY MAY BE REACHED BY A CREDITOR ONLY BY ACTUAL  1,658        

SEIZURE OF THE SECURITY CERTIFICATE BY THE OFFICER MAKING THE      1,659        

ATTACHMENT OR LEVY, EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D)   1,660        

OF THIS SECTION.  HOWEVER, A CERTIFICATED SECURITY FOR WHICH THE   1,661        

CERTIFICATE HAS BEEN SURRENDERED TO THE ISSUER MAY BE REACHED BY   1,662        

A CREDITOR BY LEGAL PROCESS UPON THE ISSUER.                                    

      (B)  THE INTEREST OF A DEBTOR IN AN UNCERTIFICATED SECURITY  1,664        

MAY BE REACHED BY A CREDITOR ONLY BY LEGAL PROCESS UPON THE        1,665        

ISSUER AT ITS CHIEF EXECUTIVE OFFICE IN THE UNITED STATES, EXCEPT  1,666        

AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS SECTION.             1,667        

      (C)  THE INTEREST OF A DEBTOR IN A SECURITY ENTITLEMENT MAY  1,669        

BE REACHED BY A CREDITOR ONLY BY LEGAL PROCESS UPON THE            1,670        

SECURITIES INTERMEDIARY WITH WHOM THE DEBTOR'S SECURITIES ACCOUNT  1,671        

IS MAINTAINED, EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF     1,672        

THIS SECTION.                                                                   

      (D)  THE INTEREST OF A DEBTOR IN A CERTIFICATED SECURITY     1,674        

                                                          38     

                                                                 
FOR WHICH THE CERTIFICATE IS IN THE POSSESSION OF A SECURED        1,675        

PARTY, OR IN AN UNCERTIFICATED SECURITY REGISTERED IN THE NAME OF  1,676        

A SECURED PARTY, OR A SECURITY ENTITLEMENT MAINTAINED IN THE NAME  1,677        

OF A SECURED PARTY, MAY BE REACHED BY A CREDITOR BY LEGAL PROCESS  1,678        

UPON THE SECURED PARTY.                                                         

      (E)  A CREDITOR WHOSE DEBTOR IS THE OWNER OF A CERTIFICATED  1,680        

SECURITY, UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT IS      1,681        

ENTITLED TO AID FROM A COURT OF COMPETENT JURISDICTION, BY         1,682        

INJUNCTION OR OTHERWISE, IN REACHING THE CERTIFICATED SECURITY,    1,683        

UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT OR IN SATISFYING  1,684        

THE CLAIM BY MEANS ALLOWED AT LAW OR IN EQUITY IN REGARD TO        1,685        

PROPERTY THAT CANNOT READILY BE REACHED BY OTHER LEGAL PROCESS.                 

      Sec. 1308.33.  (A)  A SECURITIES INTERMEDIARY THAT HAS       1,687        

TRANSFERRED A FINANCIAL ASSET PURSUANT TO AN EFFECTIVE             1,688        

ENTITLEMENT ORDER, OR A BROKER OR OTHER AGENT OR BAILEE THAT HAS   1,689        

DEALT WITH A FINANCIAL ASSET AT THE DIRECTION OF ITS CUSTOMER OR   1,690        

PRINCIPAL, IS NOT LIABLE TO A PERSON HAVING AN ADVERSE CLAIM TO    1,691        

THE FINANCIAL ASSET, UNLESS THE SECURITIES INTERMEDIARY, OR                     

BROKER OR OTHER AGENT OR BAILEE:                                   1,692        

      (1)  TOOK THE ACTION AFTER IT HAD BEEN SERVED WITH AN        1,694        

INJUNCTION, RESTRAINING ORDER, OR OTHER LEGAL PROCESS ENJOINING    1,695        

IT FROM DOING SO, ISSUED BY A COURT OF COMPETENT JURISDICTION,     1,696        

AND HAD A REASONABLE OPPORTUNITY TO ACT ON THE INJUNCTION,         1,697        

RESTRAINING ORDER, OR OTHER LEGAL PROCESS; OR                                   

      (2)  ACTED IN COLLUSION WITH THE WRONGDOER IN VIOLATING THE  1,699        

RIGHTS OF THE ADVERSE CLAIMANT; OR                                 1,700        

      (3)  IN THE CASE OF A SECURITY CERTIFICATE THAT HAS BEEN     1,702        

STOLEN, ACTED WITH NOTICE OF THE ADVERSE CLAIM.                    1,703        

      (B)  A SECURITIES INTERMEDIARY THAT RECEIVES A FINANCIAL     1,705        

ASSET AND ESTABLISHES A SECURITY ENTITLEMENT TO THE FINANCIAL      1,706        

ASSET IN FAVOR OF AN ENTITLEMENT HOLDER IS A PURCHASER FOR VALUE   1,707        

OF THE FINANCIAL ASSET.  A SECURITIES INTERMEDIARY THAT ACQUIRES   1,708        

A SECURITY ENTITLEMENT TO A FINANCIAL ASSET FROM ANOTHER           1,709        

SECURITIES INTERMEDIARY ACQUIRES THE SECURITY ENTITLEMENT FOR      1,710        

                                                          39     

                                                                 
VALUE IF THE SECURITIES INTERMEDIARY ACQUIRING THE SECURITY                     

ENTITLEMENT ESTABLISHES A SECURITY ENTITLEMENT TO THE FINANCIAL    1,711        

ASSET IN FAVOR OF AN ENTITLEMENT HOLDER.                           1,712        

      Sec. 1308.37.  (A)  If a certificated security in            1,721        

registered form is presented to the issuer with a request to       1,722        

register transfer or an instruction is presented to the issuer     1,723        

with a request to register transfer, pledge, or release OF AN      1,724        

UNCERTIFICATED SECURITY, the issuer shall register the transfer,   1,725        

pledge, or release as requested if:                                1,726        

      (1)  UNDER THE TERMS OF THE SECURITY THE PERSON SEEKING      1,728        

REGISTRATION OF TRANSFER IS ELIGIBLE TO HAVE THE SECURITY          1,729        

REGISTERED IN ITS NAME;                                                         

      (2)  The security is indorsed INDORSEMENT or the             1,731        

instruction was originated IS MADE by the appropriate person or    1,732        

persons, as provided in section 1308.23 of the Revised Code BY AN  1,734        

AGENT WHO HAS ACTUAL AUTHORITY TO ACT ON BEHALF OF THE             1,735        

APPROPRIATE PERSON;                                                             

      (2)(3)  Reasonable assurance is given that those             1,737        

indorsements THE INDORSEMENT or instructions are INSTRUCTION IS    1,739        

genuine and effective AUTHORIZED, as provided in section 1308.38   1,741        

of the Revised Code;                                                            

      (3)  The issuer has no duty as to adverse claims or has      1,743        

discharged the duty as provided in section 1308.39 of the Revised  1,744        

Code;                                                              1,745        

      (4)  Any applicable law relating to the collection of taxes  1,747        

has been complied with;                                            1,748        

      (5)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,750        

TRANSFER IMPOSED BY THE ISSUER IN ACCORDANCE WITH SECTION 1308.11  1,751        

OF THE REVISED CODE;                                                            

      (6)  A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER HAS NOT  1,753        

BECOME EFFECTIVE UNDER SECTION 1308.39 OF THE REVISED CODE, OR     1,755        

THE ISSUER HAS COMPLIED WITH DIVISION (B) OF THAT SECTION BUT NO   1,756        

LEGAL PROCESS OR INDEMNITY BOND IS OBTAINED AS PROVIDED IN         1,758        

DIVISION (D) OF THAT SECTION; and                                               

                                                          40     

                                                                 
      (5)(7)  The transfer, pledge, or release is in fact          1,760        

rightful or is to a bona fide PROTECTED purchaser;.                1,762        

      (B)  If an issuer is under a duty to register a transfer,    1,764        

pledge, or release of a security, the issuer is also liable to     1,765        

the person presenting a certificated security or an instruction    1,766        

for registration or his THE PERSON'S principal for loss resulting  1,768        

from any unreasonable delay in registration or from failure or     1,769        

refusal to register the transfer, pledge, or release.                           

      Sec. 1308.38.  (A)  The AN issuer may require the following  1,778        

assurance that each necessary indorsement of a certificated        1,779        

security or each instruction, as provided in section 1308.23 of    1,780        

the Revised Code, is genuine and effective AUTHORIZED:             1,781        

      (1)  In all cases, a guarantee GUARANTY of the signature,    1,783        

as provided in division (A) or (B) of section 1308.27 of the       1,784        

Revised Code, of the person indorsing a certificated security      1,785        

MAKING AN INDORSEMENT or originating an instruction including, in  1,786        

the case of an instruction, a warranty of the taxpayer             1,787        

identification number or, in the absence thereof, other            1,788        

reasonable assurance of identity; and                                           

      (2)  If the indorsement is made or the instruction is        1,790        

originated by an agent, appropriate assurance of ACTUAL authority  1,791        

to sign;                                                           1,792        

      (3)  If the indorsement is made or the instruction is        1,794        

originated by a fiduciary PURSUANT TO DIVISION (A)(4) OR (5) OF    1,795        

SECTION 1308.23 OF THE REVISED CODE, appropriate evidence of       1,796        

appointment, or incumbency;                                        1,797        

      (4)  If there is more than one fiduciary, reasonable         1,799        

assurance that all who are required to sign have done so; and      1,800        

      (5)  If the indorsement is made or the instruction is        1,802        

originated by a person not covered by any of the foregoing         1,803        

ANOTHER PROVISION OF DIVISION (A) OF THIS SECTION, assurance       1,804        

appropriate to the case corresponding as nearly as may be to the   1,806        

foregoing SUCH PROVISIONS.                                                      

      (B)  A AN ISSUER MAY ELECT TO REQUIRE REASONABLE ASSURANCE   1,808        

                                                          41     

                                                                 
BEYOND THAT SPECIFIED IN THIS SECTION.                             1,809        

      (C)  IN THIS SECTION:                                        1,811        

      (1)  "guarantee GUARANTY of the signature" in division (A)   1,814        

of this section means a guarantee GUARANTY signed by or on behalf  1,815        

of a person reasonably believed by the issuer to be responsible.   1,816        

The issuer may adopt standards with respect to responsibility if   1,817        

they are not manifestly unreasonable.                              1,818        

      (C)(2)  "Appropriate evidence of appointment or incumbency"  1,820        

in division (A) of this section means:                             1,821        

      (1)(a)  In the case of a fiduciary appointed or qualified    1,823        

by a court, a certificate issued by or under the direction or      1,824        

supervision of that court or an officer thereof and dated within   1,825        

sixty days before the date of presentation for transfer, pledge,   1,826        

or release; or                                                     1,827        

      (2)(b)  In any other case, a copy of a document showing the  1,829        

appointment or a certificate issued by or on behalf of a person    1,830        

reasonably believed by the issuer to be responsible or, in the     1,831        

absence of that document or certificate, other evidence            1,832        

reasonably deemed by the issuer to be REASONABLY CONSIDERED        1,834        

appropriate.  The issuer may adopt standards with respect to the   1,835        

evidence if they are not manifestly unreasonable.  The issuer is   1,836        

not charged with notice of the contents of any document obtained   1,837        

pursuant to division (C)(2) of this section except to the extent   1,838        

that the contents relate directly to the appointment or            1,839        

incumbency.                                                                     

      (D)  The issuer may elect to require reasonable assurance    1,841        

beyond that specified in this section, but if it does so and, for  1,842        

a purpose other than that specified in division (C)(2) of this     1,843        

section, both requires and obtains a copy of a will, trust,        1,844        

indenture, articles of co-partnership, by-laws, or other           1,845        

controlling instrument, it is charged with notice of all matters   1,846        

contained therein affecting the transfer, pledge, or release.      1,847        

      Sec. 1308.39.  (A)  A PERSON WHO IS AN APPROPRIATE PERSON    1,849        

TO MAKE AN INDORSEMENT OR ORIGINATE AN INSTRUCTION MAY DEMAND      1,850        

                                                          42     

                                                                 
THAT THE ISSUER NOT REGISTER TRANSFER OF A SECURITY BY             1,851        

COMMUNICATING TO THE ISSUER A NOTIFICATION THAT IDENTIFIES THE     1,852        

REGISTERED OWNER AND THE ISSUE OF WHICH THE SECURITY IS A PART     1,853        

AND PROVIDES AN ADDRESS FOR COMMUNICATIONS DIRECTED TO THE PERSON               

MAKING THE DEMAND.  THE DEMAND IS EFFECTIVE ONLY IF IT IS          1,854        

RECEIVED BY THE ISSUER AT A TIME AND IN A MANNER AFFORDING THE     1,855        

ISSUER REASONABLE OPPORTUNITY TO ACT ON IT.                                     

      (B)  IF A CERTIFICATED SECURITY IN REGISTERED FORM IS        1,857        

PRESENTED TO AN ISSUER WITH A REQUEST TO REGISTER TRANSFER OR AN   1,858        

INSTRUCTION IS PRESENTED TO AN ISSUER WITH A REQUEST TO REGISTER   1,859        

TRANSFER OF AN UNCERTIFICATED SECURITY AFTER A DEMAND THAT THE     1,860        

ISSUER NOT REGISTER TRANSFER HAS BECOME EFFECTIVE, THE ISSUER      1,861        

SHALL PROMPTLY COMMUNICATE TO THE PERSON WHO INITIATED THE DEMAND               

AT THE ADDRESS PROVIDED IN THE DEMAND AND THE PERSON WHO           1,862        

PRESENTED THE SECURITY FOR REGISTRATION OF TRANSFER OR INITIATED   1,863        

THE INSTRUCTION REQUESTING REGISTRATION OF TRANSFER A              1,864        

NOTIFICATION STATING THAT:                                                      

      (1)  THE CERTIFICATED SECURITY HAS BEEN PRESENTED FOR        1,866        

REGISTRATION OF TRANSFER OR THE INSTRUCTION FOR REGISTRATION OF    1,867        

TRANSFER OF THE UNCERTIFICATED SECURITY HAS BEEN RECEIVED;         1,868        

      (2)  A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER HAD      1,870        

PREVIOUSLY BEEN RECEIVED; AND                                      1,871        

      (3)  THE ISSUER WILL WITHHOLD REGISTRATION OF TRANSFER FOR   1,873        

A PERIOD OF TIME STATED IN THE NOTIFICATION IN ORDER TO PROVIDE    1,874        

THE PERSON WHO INITIATED THE DEMAND AN OPPORTUNITY TO OBTAIN       1,875        

LEGAL PROCESS OR AN INDEMNITY BOND.                                             

      (C)  THE PERIOD DESCRIBED IN DIVISION (B)(3) OF THIS         1,877        

SECTION MAY NOT EXCEED THIRTY DAYS AFTER THE DATE OF               1,878        

COMMUNICATION OF THE NOTIFICATION.  A SHORTER PERIOD MAY BE        1,879        

SPECIFIED BY THE ISSUER IF IT IS NOT MANIFESTLY UNREASONABLE.      1,880        

      (D)  AN ISSUER IS NOT LIABLE TO A PERSON WHO INITIATED A     1,882        

DEMAND THAT THE ISSUER NOT REGISTER TRANSFER FOR ANY LOSS THE      1,883        

PERSON SUFFERS AS A RESULT OF REGISTRATION OF A TRANSFER PURSUANT  1,884        

TO AN EFFECTIVE INDORSEMENT OR INSTRUCTION IF THE PERSON WHO       1,885        

                                                          43     

                                                                 
INITIATED THE DEMAND DOES NOT, WITHIN THE TIME STATED IN THE       1,886        

ISSUER'S COMMUNICATION, EITHER:                                                 

      (1)  OBTAIN AN APPROPRIATE RESTRAINING ORDER, INJUNCTION,    1,888        

OR OTHER PROCESS FROM A COURT OF COMPETENT JURISDICTION ENJOINING  1,889        

THE ISSUER FROM REGISTERING THE TRANSFER; OR                       1,890        

      (2)  FILE WITH THE ISSUER AN INDEMNITY BOND, SUFFICIENT IN   1,892        

THE ISSUER'S JUDGMENT TO PROTECT THE ISSUER AND ANY TRANSFER       1,893        

AGENT, REGISTRAR, OR OTHER AGENT OF THE ISSUER INVOLVED FROM ANY   1,894        

LOSS IT OR THEY MAY SUFFER BY REFUSING TO REGISTER THE TRANSFER.   1,895        

      (E)  THIS SECTION DOES NOT RELIEVE AN ISSUER FROM LIABILITY  1,897        

FOR REGISTERING TRANSFER PURSUANT TO AN INDORSEMENT OR             1,898        

INSTRUCTION THAT WAS NOT EFFECTIVE.                                1,899        

      Sec. 1308.40.  (A)  EXCEPT AS OTHERWISE PROVIDED IN SECTION  1,901        

1308.41 OF THE REVISED CODE, AN ISSUER IS LIABLE FOR WRONGFUL      1,902        

REGISTRATION OF TRANSFER IF THE ISSUER HAS REGISTERED A TRANSFER   1,903        

OF A SECURITY TO A PERSON NOT ENTITLED TO IT, AND THE TRANSFER     1,904        

WAS REGISTERED:                                                                 

      (1)  PURSUANT TO AN INEFFECTIVE INDORSEMENT OR INSTRUCTION;  1,906        

      (2)  AFTER A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER    1,908        

BECAME EFFECTIVE UNDER DIVISION (A) OF SECTION 1308.39 OF THE      1,909        

REVISED CODE AND THE ISSUER DID NOT COMPLY WITH DIVISION (B) OF    1,910        

THAT SECTION;                                                                   

      (3)  AFTER THE ISSUER HAD BEEN SERVED WITH AN INJUNCTION,    1,912        

RESTRAINING ORDER, OR OTHER LEGAL PROCESS ENJOINING IT FROM        1,913        

REGISTERING THE TRANSFER, ISSUED BY A COURT OF COMPETENT           1,914        

JURISDICTION, AND THE ISSUER HAD A REASONABLE OPPORTUNITY TO ACT   1,915        

ON THE INJUNCTION, RESTRAINING ORDER, OR OTHER LEGAL PROCESS; OR   1,916        

      (4)  BY AN ISSUER ACTING IN COLLUSION WITH THE WRONGDOER.    1,918        

      (B)  AN ISSUER THAT IS LIABLE FOR WRONGFUL REGISTRATION OF   1,920        

TRANSFER UNDER DIVISION (A) OF THIS SECTION ON DEMAND SHALL        1,921        

PROVIDE THE PERSON ENTITLED TO THE SECURITY WITH A LIKE            1,922        

CERTIFICATED OR UNCERTIFICATED SECURITY, AND ANY PAYMENTS OR       1,923        

DISTRIBUTIONS THAT THE PERSON DID NOT RECEIVE AS A RESULT OF THE   1,924        

WRONGFUL REGISTRATION.  IF AN OVERISSUE WOULD RESULT, THE                       

                                                          44     

                                                                 
ISSUER'S LIABILITY TO PROVIDE THE PERSON WITH A LIKE SECURITY IS   1,925        

GOVERNED BY SECTION 1308.03 OF THE REVISED CODE.                   1,926        

      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (A) OF THIS    1,928        

SECTION OR IN A LAW RELATING TO THE COLLECTION OF TAXES, AN        1,929        

ISSUER IS NOT LIABLE TO AN OWNER OR OTHER PERSON SUFFERING LOSS    1,930        

AS A RESULT OF THE REGISTRATION OF A TRANSFER OF A SECURITY IF     1,931        

REGISTRATION WAS MADE PURSUANT TO AN EFFECTIVE INDORSEMENT OR      1,932        

INSTRUCTION.                                                                    

      Sec. 1308.41.  (A)  If a certificated security CERTIFICATE   1,940        

has been lost, apparently destroyed, or wrongfully taken and the   1,942        

owner fails to notify the issuer of that fact within a reasonable  1,943        

time after he THE OWNER has notice of it and the issuer registers  1,944        

a transfer of the security before receiving notification, the      1,945        

owner is precluded from asserting MAY NOT ASSERT against the       1,946        

issuer any A claim for registering the transfer under section      1,948        

1308.40 of the Revised Code or any claim to a new security under   1,949        

this section.                                                                   

      (B)  If the owner of a certificated security, WHETHER IN     1,951        

REGISTERED OR BEARER FORM, claims that the security has been       1,953        

lost, destroyed, or wrongfully taken, the issuer shall issue a     1,954        

new certificated security or, at the option of the issuer, an      1,955        

equivalent uncertificated security in place of the original        1,956        

security CERTIFICATE if the owner:                                              

      (1)  So requests before the issuer has notice that the       1,958        

security has been acquired by a bona fide PROTECTED purchaser;     1,959        

      (2)  Files with the issuer any A SUFFICIENT indemnity bond,  1,961        

the issuer reasonably requires; and                                1,963        

      (3)  Satisfies any other reasonable requirements imposed by  1,965        

the issuer.                                                        1,966        

      (C)  If, after the issue of a new certificated or            1,968        

uncertificated security CERTIFICATE, a bona fide PROTECTED         1,970        

purchaser of the original security presents it for registration    1,971        

of transfer, the issuer shall register the transfer unless         1,972        

registration AN OVERISSUE would result in overissue, in which      1,974        

                                                          45     

                                                                 
event.  IN THAT CASE, the issuer's liability is governed by        1,975        

section 1308.03 of the Revised Code.  In addition to any rights    1,976        

on the indemnity bond, the issuer may recover the new              1,977        

certificated security CERTIFICATE from the person to whom it was   1,978        

issued or any person taking under him THAT PERSON, except a bona   1,980        

fide PROTECTED purchaser or may cancel the uncertificated          1,981        

security unless a bona fide purchaser or any person taking under   1,983        

a bona fide purchaser is then the registered owner or registered   1,984        

pledgee thereof.                                                                

      Sec. 1308.42.  (A)  If a A person acts ACTING as             1,993        

authenticating trustee, transfer agent, registrar, or other agent  1,995        

for an issuer in the registration of transfers A TRANSFER of its   1,996        

certificated securities or in the registration of transfers,       1,998        

pledges, and releases of its uncertificated securities, in the     1,999        

issue of new SECURITY CERTIFICATES OR UNCERTIFICATED securities,   2,000        

or in the cancellation of surrendered securities:                  2,001        

      (1)  He is under a duty to the issuer to exercise good       2,004        

faith and due diligence in performing his functions; and           2,005        

      (2)  With regard to the particular functions he performs,    2,007        

he SECURITY CERTIFICATES, has the same obligation to the holder    2,009        

or owner of a certificated OR UNCERTIFICATED security or to the    2,010        

owner or pledgee of an uncertificated security and has the same    2,011        

rights and privileges WITH REGARD TO THE PARTICULAR FUNCTIONS      2,012        

PERFORMED as the issuer has in regard to those functions.          2,013        

      (B)  Notice to an authenticating trustee, transfer agent,    2,015        

registrar or other agent is notice to the issuer with respect to   2,016        

the functions performed by the agent.                              2,017        

      Sec. 1308.51.  (A)  "SECURITIES ACCOUNT" MEANS AN ACCOUNT    2,019        

TO WHICH A FINANCIAL ASSET IS OR MAY BE CREDITED IN ACCORDANCE     2,020        

WITH AN AGREEMENT UNDER WHICH THE PERSON MAINTAINING THE ACCOUNT   2,021        

UNDERTAKES TO TREAT THE PERSON FOR WHOM THE ACCOUNT IS MAINTAINED  2,022        

AS ENTITLED TO EXERCISE THE RIGHTS THAT COMPRISE THE FINANCIAL     2,023        

ASSET.                                                                          

      (B)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (D) AND (E)   2,026        

                                                          46     

                                                                 
OF THIS SECTION, A PERSON ACQUIRES A SECURITY ENTITLEMENT IF A                  

SECURITIES INTERMEDIARY:                                           2,027        

      (1)  INDICATES BY BOOK ENTRY THAT A FINANCIAL ASSET HAS      2,029        

BEEN CREDITED TO THE PERSON'S SECURITIES ACCOUNT;                  2,030        

      (2)  RECEIVES A FINANCIAL ASSET FROM THE PERSON OR ACQUIRES  2,032        

A FINANCIAL ASSET FOR THE PERSON AND, IN EITHER CASE, ACCEPTS IT   2,033        

FOR CREDIT TO THE PERSON'S SECURITIES ACCOUNT; OR                  2,034        

      (3)  BECOMES OBLIGATED UNDER OTHER LAW, REGULATION, OR RULE  2,036        

TO CREDIT A FINANCIAL ASSET TO THE PERSON'S SECURITIES ACCOUNT.    2,037        

      (C)  IF A CONDITION OF DIVISION (B) OF THIS SECTION HAS      2,039        

BEEN MET, A PERSON HAS A SECURITY ENTITLEMENT EVEN THOUGH THE      2,040        

SECURITIES INTERMEDIARY DOES NOT ITSELF HOLD THE FINANCIAL ASSET.  2,041        

      (D)  IF A SECURITIES INTERMEDIARY HOLDS A FINANCIAL ASSET    2,043        

FOR ANOTHER PERSON, AND THE FINANCIAL ASSET IS REGISTERED IN THE   2,044        

NAME OF, PAYABLE TO THE ORDER OF, OR SPECIALLY INDORSED TO THE     2,045        

OTHER PERSON, AND HAS NOT BEEN INDORSED TO THE SECURITIES          2,046        

INTERMEDIARY OR IN BLANK, THE OTHER PERSON IS TREATED AS HOLDING   2,047        

THE FINANCIAL ASSET DIRECTLY RATHER THAN AS HAVING A SECURITY      2,048        

ENTITLEMENT WITH RESPECT TO THE FINANCIAL ASSET.                                

      (E)  ISSUANCE OF A SECURITY IS NOT ESTABLISHMENT OF A        2,050        

SECURITY ENTITLEMENT.                                              2,051        

      Sec. 1308.52.  AN ACTION BASED ON AN ADVERSE CLAIM TO A      2,053        

FINANCIAL ASSET, WHETHER FRAMED IN CONVERSION, REPLEVIN,           2,054        

CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY, MAY NOT BE    2,055        

ASSERTED AGAINST A PERSON WHO ACQUIRES A SECURITY ENTITLEMENT      2,056        

UNDER SECTION 1308.51 OF THE REVISED CODE FOR VALUE AND WITHOUT                 

NOTICE OF THE ADVERSE CLAIM.                                       2,057        

      Sec. 1308.53.  (A)  TO THE EXTENT NECESSARY FOR A            2,059        

SECURITIES INTERMEDIARY TO SATISFY ALL SECURITY ENTITLEMENTS WITH  2,060        

RESPECT TO A PARTICULAR FINANCIAL ASSET, ALL INTERESTS IN THAT     2,061        

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY ARE HELD BY    2,062        

THE SECURITIES INTERMEDIARY FOR THE ENTITLEMENT HOLDERS, ARE NOT   2,063        

PROPERTY OF THE SECURITIES INTERMEDIARY, AND ARE NOT SUBJECT TO    2,064        

CLAIMS OF CREDITORS OF THE SECURITIES INTERMEDIARY, EXCEPT AS      2,065        

                                                          47     

                                                                 
OTHERWISE PROVIDED IN SECTION 1308.61 OF THE REVISED CODE.                      

      (B)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,067        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,068        

SECTION IS A PRO RATA PROPERTY INTEREST IN ALL INTERESTS IN THAT   2,069        

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY, WITHOUT       2,070        

REGARD TO THE TIME THE ENTITLEMENT HOLDER ACQUIRED THE SECURITY    2,071        

ENTITLEMENT OR THE TIME THE SECURITIES INTERMEDIARY ACQUIRED THE   2,072        

INTEREST IN THAT FINANCIAL ASSET.                                               

      (C)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,074        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,075        

SECTION MAY BE ENFORCED AGAINST THE SECURITIES INTERMEDIARY ONLY   2,076        

BY EXERCISE OF THE ENTITLEMENT HOLDER'S RIGHTS UNDER SECTIONS      2,077        

1308.55 TO 1308.58 OF THE REVISED CODE.                                         

      (D)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,079        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,080        

SECTION MAY BE ENFORCED AGAINST A PURCHASER OF THE FINANCIAL       2,081        

ASSET OR INTEREST THEREIN ONLY IF:                                 2,082        

      (1)  INSOLVENCY PROCEEDINGS HAVE BEEN INITIATED BY OR        2,084        

AGAINST THE SECURITIES INTERMEDIARY;                               2,085        

      (2)  THE SECURITIES INTERMEDIARY DOES NOT HAVE SUFFICIENT    2,087        

INTERESTS IN THE FINANCIAL ASSET TO SATISFY THE SECURITY           2,088        

ENTITLEMENTS OF ALL OF ITS ENTITLEMENT HOLDERS TO THAT FINANCIAL   2,089        

ASSET;                                                                          

      (3)  THE SECURITIES INTERMEDIARY VIOLATED ITS OBLIGATIONS    2,091        

UNDER SECTION 1308.54 OF THE REVISED CODE BY TRANSFERRING THE      2,092        

FINANCIAL ASSET OR INTEREST THEREIN TO THE PURCHASER; AND          2,093        

      (4)  THE PURCHASER IS NOT PROTECTED UNDER DIVISION (E) OF    2,095        

THIS SECTION.  THE TRUSTEE OR OTHER LIQUIDATOR, ACTING ON BEHALF   2,096        

OF ALL ENTITLEMENT HOLDERS HAVING SECURITY ENTITLEMENTS WITH       2,097        

RESPECT TO A PARTICULAR FINANCIAL ASSET, MAY RECOVER THE           2,098        

FINANCIAL ASSET, OR INTEREST THEREIN, FROM THE PURCHASER.  IF THE  2,099        

TRUSTEE OR OTHER LIQUIDATOR ELECTS NOT TO PURSUE THAT RIGHT, AN    2,100        

ENTITLEMENT HOLDER WHOSE SECURITY ENTITLEMENT REMAINS UNSATISFIED               

HAS THE RIGHT TO RECOVER ITS INTEREST IN THE FINANCIAL ASSET FROM  2,101        

                                                          48     

                                                                 
THE PURCHASER.                                                     2,102        

      (E)  AN ACTION BASED ON THE ENTITLEMENT HOLDER'S PROPERTY    2,104        

INTEREST WITH RESPECT TO A PARTICULAR FINANCIAL ASSET UNDER        2,105        

DIVISION (A) OF THIS SECTION, WHETHER FRAMED IN CONVERSION,        2,106        

REPLEVIN, CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY,     2,107        

MAY NOT BE ASSERTED AGAINST ANY PURCHASER OF A FINANCIAL ASSET OR  2,108        

INTEREST THEREIN WHO GIVES VALUE, OBTAINS CONTROL, AND DOES NOT    2,109        

ACT IN COLLUSION WITH THE SECURITIES INTERMEDIARY IN VIOLATING                  

THE SECURITIES INTERMEDIARY'S OBLIGATIONS UNDER SECTION 1308.54    2,111        

OF THE REVISED CODE.                                                            

      Sec. 1308.54.  (A)  A SECURITIES INTERMEDIARY SHALL          2,113        

PROMPTLY OBTAIN AND THEREAFTER MAINTAIN A FINANCIAL ASSET IN A     2,114        

QUANTITY CORRESPONDING TO THE AGGREGATE OF ALL SECURITY            2,115        

ENTITLEMENTS IT HAS ESTABLISHED IN FAVOR OF ITS ENTITLEMENT        2,116        

HOLDERS WITH RESPECT TO THAT FINANCIAL ASSET.  THE SECURITIES                   

INTERMEDIARY MAY MAINTAIN THOSE FINANCIAL ASSETS DIRECTLY OR       2,117        

THROUGH ONE OR MORE OTHER SECURITIES INTERMEDIARIES.               2,118        

      (B)  EXCEPT TO THE EXTENT OTHERWISE AGREED BY ITS            2,120        

ENTITLEMENT HOLDER, A SECURITIES INTERMEDIARY MAY NOT GRANT ANY    2,121        

SECURITY INTERESTS IN A FINANCIAL ASSET IT IS OBLIGATED TO         2,122        

MAINTAIN PURSUANT TO DIVISION (A) OF THIS SECTION.                 2,123        

      (C)  A SECURITIES INTERMEDIARY SATISFIES THE DUTY IN         2,125        

DIVISION (A) OF THIS SECTION IF:                                   2,126        

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,128        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,129        

INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,131        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,132        

COMMERCIAL STANDARDS TO OBTAIN AND MAINTAIN THE FINANCIAL ASSET.   2,133        

      (D)  THIS SECTION DOES NOT APPLY TO A CLEARING CORPORATION   2,135        

THAT IS ITSELF THE OBLIGOR OF AN OPTION OR SIMILAR OBLIGATION TO   2,136        

WHICH ITS ENTITLEMENT HOLDERS HAVE SECURITY ENTITLEMENTS.          2,137        

      Sec. 1308.55.  (A)  A SECURITIES INTERMEDIARY SHALL TAKE     2,139        

ACTION TO OBTAIN A PAYMENT OR DISTRIBUTION MADE BY THE ISSUER OF   2,140        

                                                          49     

                                                                 
A FINANCIAL ASSET.  A SECURITIES INTERMEDIARY SATISFIES THE DUTY   2,141        

IF:                                                                             

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,143        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,144        

INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,146        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,147        

COMMERCIAL STANDARDS TO ATTEMPT TO OBTAIN THE PAYMENT OR           2,148        

DISTRIBUTION.                                                                   

      (B)  A SECURITIES INTERMEDIARY IS OBLIGATED TO ITS           2,150        

ENTITLEMENT HOLDER FOR A PAYMENT OR DISTRIBUTION MADE BY THE       2,151        

ISSUER OF A FINANCIAL ASSET IF THE PAYMENT OR DISTRIBUTION IS      2,152        

RECEIVED BY THE SECURITIES INTERMEDIARY.                                        

      Sec. 1308.56.  A SECURITIES INTERMEDIARY SHALL EXERCISE      2,154        

RIGHTS WITH RESPECT TO A FINANCIAL ASSET IF DIRECTED TO DO SO BY   2,155        

AN ENTITLEMENT HOLDER.  A SECURITIES INTERMEDIARY SATISFIES THE    2,156        

DUTY IF:                                                                        

      (A)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,158        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,159        

INTERMEDIARY; OR                                                                

      (B)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,161        

INTERMEDIARY EITHER PLACES THE ENTITLEMENT HOLDER IN A POSITION    2,162        

TO EXERCISE THE RIGHTS DIRECTLY OR EXERCISES DUE CARE IN           2,163        

ACCORDANCE WITH REASONABLE COMMERCIAL STANDARDS TO FOLLOW THE      2,164        

DIRECTION OF THE ENTITLEMENT HOLDER.                                            

      Sec. 1308.57.  (A)  A SECURITIES INTERMEDIARY SHALL COMPLY   2,166        

WITH AN ENTITLEMENT ORDER IF THE ENTITLEMENT ORDER IS ORIGINATED   2,167        

BY THE APPROPRIATE PERSON, THE SECURITIES INTERMEDIARY HAS HAD     2,168        

REASONABLE OPPORTUNITY TO ASSURE ITSELF THAT THE ENTITLEMENT       2,169        

ORDER IS GENUINE AND AUTHORIZED, AND THE SECURITIES INTERMEDIARY   2,170        

HAS HAD REASONABLE OPPORTUNITY TO COMPLY WITH THE ENTITLEMENT      2,171        

ORDER.  A SECURITIES INTERMEDIARY SATISFIES THE DUTY IF:                        

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,173        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,174        

                                                          50     

                                                                 
INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,176        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,177        

COMMERCIAL STANDARDS TO COMPLY WITH THE ENTITLEMENT ORDER.         2,178        

      (B)  IF A SECURITIES INTERMEDIARY TRANSFERS A FINANCIAL      2,180        

ASSET PURSUANT TO AN INEFFECTIVE ENTITLEMENT ORDER, THE            2,181        

SECURITIES INTERMEDIARY SHALL REESTABLISH A SECURITY ENTITLEMENT   2,182        

IN FAVOR OF THE PERSON ENTITLED TO IT, AND PAY OR CREDIT ANY       2,183        

PAYMENTS OR DISTRIBUTIONS THAT THE PERSON DID NOT RECEIVE AS A     2,184        

RESULT OF THE WRONGFUL TRANSFER.  IF THE SECURITIES INTERMEDIARY                

DOES NOT REESTABLISH A SECURITY ENTITLEMENT, THE SECURITIES        2,185        

INTERMEDIARY IS LIABLE TO THE ENTITLEMENT HOLDER FOR DAMAGES.      2,186        

      Sec. 1308.58.  A SECURITIES INTERMEDIARY SHALL ACT AT THE    2,188        

DIRECTION OF AN ENTITLEMENT HOLDER TO CHANGE A SECURITY            2,189        

ENTITLEMENT INTO ANOTHER AVAILABLE FORM OF HOLDING FOR WHICH THE   2,190        

ENTITLEMENT HOLDER IS ELIGIBLE, OR TO CAUSE THE FINANCIAL ASSET    2,191        

TO BE TRANSFERRED TO A SECURITIES ACCOUNT OF THE ENTITLEMENT                    

HOLDER WITH ANOTHER SECURITIES INTERMEDIARY.  A SECURITIES         2,192        

INTERMEDIARY SATISFIES THE DUTY IF:                                2,193        

      (A)  THE SECURITIES INTERMEDIARY ACTS AS AGREED UPON BY THE  2,195        

ENTITLEMENT HOLDER AND THE SECURITIES INTERMEDIARY; OR             2,196        

      (B)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,198        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,199        

COMMERCIAL STANDARDS TO FOLLOW THE DIRECTION OF THE ENTITLEMENT    2,200        

HOLDER.                                                                         

      Sec. 1308.59.  (A)  IF THE SUBSTANCE OF A DUTY IMPOSED UPON  2,202        

A SECURITIES INTERMEDIARY BY SECTIONS 1308.54 TO 1308.58 OF THE    2,203        

REVISED CODE IS THE SUBJECT OF OTHER STATUTE, REGULATION, OR       2,204        

RULE, COMPLIANCE WITH THAT STATUTE, REGULATION, OR RULE SATISFIES  2,205        

THE DUTY.                                                                       

      (B)  TO THE EXTENT THAT SPECIFIC STANDARDS FOR THE           2,207        

PERFORMANCE OF THE DUTIES OF A SECURITIES INTERMEDIARY OR THE      2,208        

EXERCISE OF THE RIGHTS OF AN ENTITLEMENT HOLDER ARE NOT SPECIFIED  2,209        

BY OTHER STATUTE, REGULATION, OR RULE OR BY AGREEMENT BETWEEN THE  2,210        

                                                          51     

                                                                 
SECURITIES INTERMEDIARY AND ENTITLEMENT HOLDER, THE SECURITIES     2,211        

INTERMEDIARY SHALL PERFORM ITS DUTIES AND THE ENTITLEMENT HOLDER                

SHALL EXERCISE ITS RIGHTS IN A COMMERCIALLY REASONABLE MANNER.     2,212        

      (C)  THE OBLIGATION OF A SECURITIES INTERMEDIARY TO PERFORM  2,214        

THE DUTIES IMPOSED BY SECTIONS 1308.54 TO 1308.58 OF THE REVISED   2,215        

CODE IS SUBJECT TO:                                                             

      (1)  RIGHTS OF THE SECURITIES INTERMEDIARY ARISING OUT OF A  2,217        

SECURITY INTEREST UNDER A SECURITY AGREEMENT WITH THE ENTITLEMENT  2,218        

HOLDER OR OTHERWISE; AND                                           2,219        

      (2)  RIGHTS OF THE SECURITIES INTERMEDIARY UNDER OTHER LAW,  2,221        

REGULATION, RULE, OR AGREEMENT TO WITHHOLD PERFORMANCE OF ITS      2,222        

DUTIES AS A RESULT OF UNFULFILLED OBLIGATIONS OF THE ENTITLEMENT   2,223        

HOLDER TO THE SECURITIES INTERMEDIARY.                             2,224        

      (D)  SECTIONS 1308.54 TO 1308.58 OF THE REVISED CODE DO NOT  2,226        

REQUIRE A SECURITIES INTERMEDIARY TO TAKE ANY ACTION THAT IS       2,227        

PROHIBITED BY OTHER STATUTE, REGULATION, OR RULE.                  2,228        

      Sec. 1308.60.  (A)  AN ACTION BASED ON AN ADVERSE CLAIM TO   2,230        

A FINANCIAL ASSET OR SECURITY ENTITLEMENT, WHETHER FRAMED IN       2,231        

CONVERSION, REPLEVIN, CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR       2,232        

OTHER THEORY, MAY NOT BE ASSERTED AGAINST A PERSON WHO PURCHASES   2,233        

A SECURITY ENTITLEMENT, OR AN INTEREST THEREIN, FROM AN            2,234        

ENTITLEMENT HOLDER IF THE PURCHASER GIVES VALUE, DOES NOT HAVE     2,235        

NOTICE OF THE ADVERSE CLAIM, AND OBTAINS CONTROL.                               

      (B)  IF AN ADVERSE CLAIM COULD NOT HAVE BEEN ASSERTED        2,237        

AGAINST AN ENTITLEMENT HOLDER UNDER SECTION 1308.52 OF THE         2,238        

REVISED CODE, THE ADVERSE CLAIM CANNOT BE ASSERTED AGAINST A       2,239        

PERSON WHO PURCHASES A SECURITY ENTITLEMENT, OR AN INTEREST                     

THEREIN, FROM THE ENTITLEMENT HOLDER.                              2,240        

      (C)  IN A CASE NOT COVERED BY THE PRIORITY RULES IN CHAPTER  2,243        

1309. OF THE REVISED CODE, A PURCHASER FOR VALUE OF A SECURITY                  

ENTITLEMENT, OR AN INTEREST THEREIN, WHO OBTAINS CONTROL HAS       2,244        

PRIORITY OVER A PURCHASER OF A SECURITY ENTITLEMENT, OR AN         2,245        

INTEREST THEREIN, WHO DOES NOT OBTAIN CONTROL.  PURCHASERS WHO     2,246        

HAVE CONTROL RANK EQUALLY, EXCEPT THAT A SECURITIES INTERMEDIARY   2,247        

                                                          52     

                                                                 
AS PURCHASER HAS PRIORITY OVER A CONFLICTING PURCHASER WHO HAS                  

CONTROL UNLESS OTHERWISE AGREED BY THE SECURITIES INTERMEDIARY.    2,248        

      Sec. 1308.61.  (A)  EXCEPT AS OTHERWISE PROVIDED IN          2,250        

DIVISIONS (B) AND (C) OF THIS SECTION, IF A SECURITIES             2,251        

INTERMEDIARY DOES NOT HAVE SUFFICIENT INTERESTS IN A PARTICULAR    2,252        

FINANCIAL ASSET TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT     2,253        

HOLDERS WHO HAVE SECURITY ENTITLEMENTS TO THAT FINANCIAL ASSET     2,254        

AND ITS OBLIGATION TO A CREDITOR OF THE SECURITIES INTERMEDIARY    2,255        

WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET, THE CLAIMS                 

OF ENTITLEMENT HOLDERS, OTHER THAN THE CREDITOR, HAVE PRIORITY     2,256        

OVER THE CLAIM OF THE CREDITOR.                                    2,257        

      (B)  A CLAIM OF A CREDITOR OF A SECURITIES INTERMEDIARY WHO  2,259        

HAS A SECURITY INTEREST IN A FINANCIAL ASSET HELD BY A SECURITIES  2,260        

INTERMEDIARY HAS PRIORITY OVER CLAIMS OF THE SECURITIES            2,261        

INTERMEDIARY'S ENTITLEMENT HOLDERS WHO HAVE SECURITY ENTITLEMENTS  2,262        

WITH RESPECT TO THAT FINANCIAL ASSET IF THE CREDITOR HAS CONTROL   2,263        

OVER THE FINANCIAL ASSET.                                                       

      (C)  IF A CLEARING CORPORATION DOES NOT HAVE SUFFICIENT      2,265        

FINANCIAL ASSETS TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT    2,266        

HOLDERS WHO HAVE SECURITY ENTITLEMENTS WITH RESPECT TO A           2,267        

FINANCIAL ASSET AND ITS OBLIGATION TO A CREDITOR OF THE CLEARING   2,268        

CORPORATION WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET,   2,269        

THE CLAIM OF THE CREDITOR HAS PRIORITY OVER THE CLAIMS OF                       

ENTITLEMENT HOLDERS.                                               2,270        

      Sec. 1309.01.  (A)  As used in sections 1309.01 to 1309.50   2,279        

of the Revised Code, unless the context otherwise requires:        2,280        

      (1)  "Account debtor" means the person who is obligated on   2,282        

an account, chattel paper, or general intangible.                  2,283        

      (2)  "Chattel paper" means a writing or writings which       2,285        

evidence both a monetary obligation and a security interest in or  2,286        

a lease of specific goods, but a charter or other contract         2,287        

involving the use or hire of a vessel is not chattel paper. When   2,288        

a transaction is evidenced both by such a security agreement or a  2,289        

lease and by an instrument or a series of instruments, the group   2,290        

                                                          53     

                                                                 
of writings taken together constitutes chattel paper.              2,291        

      (3)  "Collateral" means the property subject to a security   2,293        

interest, and includes accounts and chattel paper which have been  2,294        

sold.                                                              2,295        

      (4)  "Debtor" means the person who owes payment or other     2,297        

performance of the obligations secured, whether or not he THE      2,298        

PERSON owns or has rights in the collateral, and includes the      2,299        

seller of accounts or chattel paper.  Where the debtor and the     2,300        

owner of the collateral are not the same person, the term          2,301        

"debtor" means the owner of the collateral in any provision of     2,302        

sections 1309.01 to 1309.50 of the Revised Code dealing with the   2,303        

collateral, the obligor in any provision dealing with the          2,304        

obligation and may include both where the context so requires.     2,305        

      (5)  "Deposit account" means a demand, time, savings,        2,307        

passbook or like account maintained with a bank, savings and loan  2,308        

association, credit union, or like organization, other than an     2,309        

account evidenced by a certificate of deposit.                     2,310        

      (6)  "Document" means document of title as defined in        2,312        

division (O) of section 1301.01 of the Revised Code, and a         2,313        

receipt of the kind described in division (B) of section 1307.06   2,314        

of the Revised Code.                                               2,315        

      (7)  "Encumbrance" includes real estate mortgages and other  2,317        

liens on real estate and all other rights in real estate that are  2,318        

not ownership interests.                                           2,319        

      (8)  "Goods" includes all things which are movable at the    2,321        

time the security interest attaches or which are fixtures under    2,322        

section 1309.32 of the Revised Code, but does not include money,   2,323        

documents, instruments, INVESTMENT PROPERTY, COMMODITY CONTRACTS,  2,325        

accounts, chattel paper, general intangibles, or minerals or the   2,326        

like, including oil and gas, before extraction.  "Goods" also      2,327        

include standing timber which is to be cut and removed under a     2,328        

conveyance or contract for sale, the unborn young of animals, and  2,329        

growing crops.                                                                  

      (9)  "Instrument" means a negotiable instrument as defined   2,331        

                                                          54     

                                                                 
in section 1303.03 of the Revised Code, or a certificated          2,332        

security as defined in section 1308.01 of the Revised Code, or     2,333        

any other writing which evidences a right to the payment of money  2,334        

and is not itself a security agreement or lease and is of a type   2,335        

which is in ordinary course of business transferred by delivery    2,336        

with any necessary indorsement or assignment.  "INSTRUMENT" DOES   2,337        

NOT INCLUDE INVESTMENT PROPERTY.                                   2,339        

      (10)  "Mortgage" means a consensual interest created by a    2,341        

real estate mortgage, a trust deed on real estate, or the like.    2,342        

      (11)  An advance is made "pursuant to commitment" if the     2,344        

secured party has bound himself ITSELF to make it, whether or not  2,346        

a subsequent event of default or other event not within his THE                 

SECURED PARTY'S control has relieved or may relieve him THE        2,347        

SECURED PARTY from his THE SECURED PARTY'S obligation.             2,348        

      (12)  "Security agreement" means an agreement which creates  2,350        

or provides for a security interest.                               2,351        

      (13)  "Secured party" means a lender, seller, or other       2,353        

person in whose favor there is a security interest, including a    2,354        

person to whom accounts or chattel paper have been sold.  When     2,355        

the holders of obligations issued under an indenture of trust,     2,356        

equipment trust agreement, or the like are represented by a        2,357        

trustee or other person, the representative is the secured party.  2,358        

      (14)  "Transmitting utility" means any person primarily      2,360        

engaged in the railroad, street railway, or trolley bus business,  2,361        

the electric or electronic communications business, the            2,362        

transmission of goods by pipeline, or the transmission or the      2,363        

production and transmission of electricity, steam, gas, or water,  2,364        

or the provision of sewer service.                                 2,365        

      (15)  "Account" means any right to payment for goods sold    2,367        

or leased or for services rendered which is not evidenced by an    2,368        

instrument or chattel paper, whether or not it has been earned by  2,369        

performance.                                                       2,370        

      (16)  "General intangible INTANGIBLES" means any personal    2,372        

property, including things in action, other than goods, accounts,  2,374        

                                                          55     

                                                                 
chattel paper, documents, instruments, INVESTMENT PROPERTY, and    2,375        

money.  All rights to payment earned or unearned under a charter   2,377        

or other contract involving the use or hire of a vessel and all    2,378        

rights incident to the charter or contract are accounts.           2,379        

      (B)  Other definitions applying to sections 1309.01 to       2,381        

1309.50 of the Revised Code are:                                   2,382        

      (1)  "Attach," as defined in section 1309.14 of the Revised  2,384        

Code;                                                              2,385        

      (2)  "Construction mortgage," as defined in section 1309.32  2,387        

of the Revised Code;                                               2,388        

      (3)  "Consumer goods," as defined in section 1309.07 of the  2,390        

Revised Code;                                                      2,391        

      (4)  "Equipment," as defined in section 1309.07 of the       2,393        

Revised Code;                                                      2,394        

      (5)  "Farm products," as defined in section 1309.07 of the   2,396        

Revised Code;                                                      2,397        

      (6)  "Fixture," as defined in section 1309.32 of the         2,399        

Revised Code;                                                      2,400        

      (7)  "Fixture filing," as defined in section 1309.32 of the  2,402        

Revised Code;                                                      2,403        

      (8)  "Inventory," as defined in section 1309.07 of the       2,405        

Revised Code;                                                      2,406        

      (9)  "Lien creditor," as defined in section 1309.20 of the   2,408        

Revised Code;                                                      2,409        

      (10)  "Proceeds," as defined in section 1309.25 of the       2,411        

Revised Code;                                                      2,412        

      (11)  "Purchase money security interest," as defined in      2,414        

section 1309.05 of the Revised Code;                               2,415        

      (12)  "COMMODITY CONTRACT," "COMMODITY CUSTOMER,"            2,417        

"COMMODITY INTERMEDIARY," "CONTROL," AND "INVESTMENT PROPERTY,"    2,418        

AS DEFINED IN SECTION 1309.112 OF THE REVISED CODE;                2,419        

      (13)  "United States," as defined in section 1309.03 of the  2,421        

Revised Code.                                                      2,422        

      (C)  As used in sections 1309.01 to 1309.50 of the Revised   2,424        

                                                          56     

                                                                 
Code, "check" and "note" have the meaning set forth in section     2,425        

1303.03 of the Revised Code; "contract for sale" and "sale" have   2,426        

the meaning set forth in section 1302.01 of the Revised Code; and  2,427        

"holder in due course" has the meaning set forth in section        2,428        

1303.31 of the Revised Code.                                       2,429        

      (D)  The terms and principles of construction and            2,431        

interpretation set forth in sections 1301.01 to 1301.14 of the     2,432        

Revised Code are applicable to sections 1309.01 to 1309.50 of the  2,433        

Revised Code.                                                      2,434        

      Sec. 1309.03.  (A)  Documents, instruments, and ordinary     2,443        

goods:                                                             2,444        

      (1)  This division applies to documents and instruments and  2,446        

to goods other than those covered by a certificate of title        2,447        

described in division (B) of this section, mobile goods described  2,448        

in division (C) of this section, and minerals described in         2,449        

division (E) of this section.                                      2,450        

      (2)  Except as otherwise provided in this division,          2,452        

perfection and the effect of perfection or nonperfection of a      2,453        

security interest in collateral are governed by the law of the     2,454        

jurisdiction where the collateral is when the last event occurs    2,455        

on which is based the assertion that the security interest is      2,456        

perfected or unperfected.                                          2,457        

      (3)  If the parties to a transaction creating a purchase     2,459        

money security interest in goods in one jurisdiction understand    2,460        

at the time that the security interest attaches that the goods     2,461        

will be kept in another jurisdiction, then the law of the other    2,462        

jurisdiction governs the perfection and the effect of perfection   2,463        

or nonperfection of the security interest from the time it         2,464        

attaches until thirty days after the debtor receives possession    2,465        

of the goods and thereafter if the goods are taken to the other    2,466        

jurisdiction before the end of the thirty-day period.              2,467        

      (4)  When collateral is brought into and kept in this state  2,469        

while subject to a security interest perfected under the law of    2,470        

the jurisdiction from which the collateral was removed, the        2,471        

                                                          57     

                                                                 
security interest remains perfected, but if action is required by  2,472        

sections 1309.20 to 1309.37 of the Revised Code to perfect the     2,473        

security interest:                                                 2,474        

      (a)  If the action is not taken before the expiration of     2,476        

the period of perfection in the other jurisdiction or the end of   2,477        

four months after the collateral is brought into this state,       2,478        

whichever period first expires, the security interest becomes      2,479        

unperfected at the end of that period and is thereafter deemed to  2,480        

have been unperfected as against a person who became a purchaser   2,481        

after removal;                                                     2,482        

      (b)  If the action is taken before the expiration of the     2,484        

period specified in division (A)(4)(a) of this section, the        2,485        

security interest continues perfected thereafter;                  2,486        

      (c)  For the purpose of priority over a buyer of consumer    2,488        

goods, division (B) of section 1309.26 of the Revised Code, the    2,489        

period of the effectiveness of a filing in the jurisdiction from   2,490        

which the collateral is removed is governed by the rules with      2,491        

respect to perfection in divisions (A)(4)(a) and (b) of this       2,492        

section.                                                           2,493        

      (B)  Certificate of title.                                   2,495        

      (1)  This division applies to goods covered by a             2,497        

certificate of title issued under a statute of this state or of    2,498        

another jurisdiction under the law of which indication of a        2,499        

security interest on the certificate is required as a condition    2,500        

of perfection.                                                     2,501        

      (2)  Except as otherwise provided in this division,          2,503        

perfection and the effect of perfection or nonperfection of the    2,504        

security interest are governed by the law, including the conflict  2,505        

of laws rules, of the jurisdiction issuing the certificate until   2,506        

four months after the goods are removed from that jurisdiction     2,507        

and thereafter until the goods are registered in another           2,508        

jurisdiction, but in any event not beyond surrender of the         2,509        

certificate.  After the expiration of that period, the goods are   2,510        

not covered by the certificate of title within the meaning of      2,511        

                                                          58     

                                                                 
this section.                                                      2,512        

      (3)  Except with respect to the rights of a buyer described  2,514        

in division (B)(4) of this section a security interest, perfected  2,515        

in another jurisdiction otherwise than by notation on a            2,516        

certificate of title, in goods brought into this state and         2,517        

thereafter covered by a certificate of title issued by this state  2,518        

is subject to the rules stated in division (A)(4) of this          2,519        

section.                                                           2,520        

      (4)  If goods are brought into this state while a security   2,522        

interest therein is perfected in any manner under the law of the   2,523        

jurisdiction from which the goods are removed and a certificate    2,524        

of title is issued by this state and the certificate does not      2,525        

show that the goods are subject to the security interest or that   2,526        

they may be subject to security interests not shown on the         2,527        

certificate, the security interest is subordinate to the rights    2,528        

of a buyer of the goods who is not in the business of selling      2,529        

goods of that kind to the extent that he THE BUYER gives value     2,530        

and receives delivery of the goods after issuance of the           2,531        

certificate and without knowledge of the security interest.        2,532        

      (C)  Accounts, general intangibles, and mobile goods.        2,534        

      (1)  This division applies to accounts, other than an        2,536        

account described in division (E) of this section on minerals,     2,537        

and general intangibles, other than uncertificated securities,     2,538        

and to goods which are mobile and which are of a type normally     2,539        

used in more than one jurisdiction, such as motor vehicles,        2,540        

trailers, rolling stock, airplanes, shipping containers, road      2,541        

building and construction machinery, and commercial harvesting     2,542        

machinery and the like, if the goods are equipment or are          2,543        

inventory leased or held for lease by the debtor to others, and    2,544        

are not covered by a certificate of title described in division    2,545        

(B) of this section.                                               2,546        

      (2)  The law, including the conflict of laws rules, of the   2,548        

jurisdiction in which the debtor is located governs the            2,549        

perfection and the effect of perfection or nonperfection of the    2,550        

                                                          59     

                                                                 
security interest.                                                 2,551        

      (3)  If, however, the debtor is located in a jurisdiction    2,553        

which is not a part of the United States, and which does not       2,554        

provide for perfection of the security interest by filing or       2,555        

recording in that jurisdiction, the law of the jurisdiction in     2,556        

the United States in which the debtor has its major executive      2,557        

office in the United States governs the perfection and the effect  2,558        

of perfection or nonperfection of the security interest through    2,559        

filing.  In the alternative, if the debtor is located in a         2,560        

jurisdiction which is not a part of the United States or Canada    2,561        

and the collateral is accounts or general intangibles for money    2,562        

due or to become due, the security interest may be perfected by    2,563        

notification to the account debtor.  As used in this division,     2,564        

"United States" includes its territories and possessions and the   2,565        

Commonwealth of Puerto Rico.                                       2,566        

      (4)  A debtor shall be deemed located at his THE DEBTOR'S    2,568        

place of business if he THE DEBTOR has one, at his THE DEBTOR'S    2,570        

chief executive office if he DEBTOR has more than one place of     2,571        

business; otherwise at his THE DEBTOR'S residence.  If, however,   2,572        

the debtor is a foreign air carrier under the "Federal Aviation                 

Act of 1958," as amended, it shall be deemed located at the        2,574        

designated office of the agent upon whom service of process may    2,575        

be made on behalf of the foreign air carrier.                                   

      (5)  A security interest perfected under the law of the      2,577        

jurisdiction of the location of the debtor is perfected until the  2,578        

expiration of four months after a change of the debtor's location  2,579        

to another jurisdiction, or until perfection would have ceased by  2,580        

the law of the first jurisdiction, whichever period first          2,581        

expires.  Unless perfected in the new jurisdiction before the end  2,582        

of that period, it becomes unperfected thereafter and is deemed    2,583        

to have been unperfected as against a person who became a          2,584        

purchaser after the change.                                        2,585        

      (D)  Chattel Paper.                                          2,587        

      The rules stated for goods in division (A) of this section   2,589        

                                                          60     

                                                                 
apply to a possessory security interest in chattel paper.  The     2,590        

rule stated for accounts in division (C) of this section applies   2,591        

to a nonpossessory security in chattel paper, but the security     2,592        

interest may not be perfected by notification to the account       2,593        

debtor.                                                            2,594        

      (E)  Minerals.                                               2,596        

      Perfection and the effect of perfection or nonperfection of  2,598        

a security interest which is created by a debtor who has an        2,599        

interest in minerals or the like, including oil and gas, before    2,600        

extraction and which attaches thereto as extracted, or which       2,601        

attaches to an account resulting from the sale thereof at the      2,602        

wellhead or minehead are governed by the law, including the        2,603        

conflict of laws rules, of the jurisdiction wherein the wellhead   2,604        

or minehead is located.                                            2,605        

      (F)  Uncertificated securities INVESTMENT PROPERTY.          2,607        

      The law, including the conflict of laws rules, of the        2,609        

jurisdiction of organization of the issuer governs the perfection  2,610        

and the effect of perfection or non-perfection of a security       2,612        

interest in uncertificated securities.                                          

      (1)  THIS DIVISION APPLIES TO INVESTMENT PROPERTY.           2,614        

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,616        

THIS SECTION, DURING THE TIME THAT A SECURITY CERTIFICATE IS       2,617        

LOCATED IN A JURISDICTION, PERFECTION OF A SECURITY INTEREST, THE  2,618        

EFFECT OF PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A       2,619        

SECURITY INTEREST IN THE CERTIFICATED SECURITY REPRESENTED         2,620        

THEREBY ARE GOVERNED BY THE LOCAL LAW OF THAT JURISDICTION.        2,621        

      (3)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,623        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,624        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,625        

INTEREST IN AN UNCERTIFICATED SECURITY ARE GOVERNED BY THE LOCAL   2,626        

LAW OF THE ISSUER'S JURISDICTION AS SPECIFIED IN DIVISION (D) OF   2,627        

SECTION 1308.05 OF THE REVISED CODE.                                            

      (4)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,629        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,630        

                                                          61     

                                                                 
PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,631        

INTEREST IN A SECURITY ENTITLEMENT OR SECURITIES ACCOUNT ARE       2,632        

GOVERNED BY THE LOCAL LAW OF THE SECURITIES INTERMEDIARY'S         2,633        

JURISDICTION AS SPECIFIED IN DIVISION (E) OF SECTION 1308.05 OF    2,634        

THE REVISED CODE.                                                               

      (5)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,636        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,637        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,638        

INTEREST IN A COMMODITY CONTRACT OR COMMODITY ACCOUNT ARE          2,639        

GOVERNED BY THE LOCAL LAW OF THE COMMODITY INTERMEDIARY'S          2,640        

JURISDICTION.  THE FOLLOWING RULES DETERMINE A "COMMODITY                       

INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS DIVISION:        2,641        

      (a)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,643        

COMMODITY CUSTOMER SPECIFIES THAT IT IS GOVERNED BY THE LAW OF A   2,644        

PARTICULAR JURISDICTION, THAT JURISDICTION IS THE COMMODITY        2,645        

INTERMEDIARY'S JURISDICTION.                                                    

      (b)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,647        

COMMODITY CUSTOMER DOES NOT SPECIFY THE GOVERNING LAW AS PROVIDED  2,648        

IN DIVISION (F)(5)(a) OF THIS SECTION, BUT EXPRESSLY SPECIFIES     2,649        

THAT THE COMMODITY ACCOUNT IS MAINTAINED AT AN OFFICE IN A         2,650        

PARTICULAR JURISDICTION, THAT JURISDICTION IS THE COMMODITY        2,651        

INTERMEDIARY'S JURISDICTION.                                                    

      (c)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,653        

COMMODITY CUSTOMER DOES NOT SPECIFY A JURISDICTION AS PROVIDED IN  2,654        

DIVISION (F)(5)(a) OR (b) OF THIS SECTION, THE COMMODITY           2,656        

INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN WHICH IS                     

LOCATED THE OFFICE IDENTIFIED IN AN ACCOUNT STATEMENT AS THE       2,657        

OFFICE SERVING THE COMMODITY CUSTOMER'S ACCOUNT.                   2,658        

      (d)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,660        

COMMODITY CUSTOMER DOES NOT SPECIFY A JURISDICTION AS PROVIDED IN  2,661        

DIVISION (F)(5)(a) OR (b) OF THIS SECTION AND AN ACCOUNT           2,663        

STATEMENT DOES NOT IDENTIFY AN OFFICE SERVING THE COMMODITY                     

CUSTOMER'S ACCOUNT AS PROVIDED IN DIVISION (F)(5)(c) OF THIS       2,664        

SECTION, THE COMMODITY INTERMEDIARY'S JURISDICTION IS THE          2,665        

                                                          62     

                                                                 
JURISDICTION IN WHICH IS LOCATED THE CHIEF EXECUTIVE OFFICE OF     2,666        

THE COMMODITY INTERMEDIARY.                                                     

      (6)  PERFECTION OF A SECURITY INTEREST BY FILING, AUTOMATIC  2,668        

PERFECTION OF A SECURITY INTEREST IN INVESTMENT PROPERTY GRANTED   2,669        

BY A BROKER OR SECURITIES INTERMEDIARY, AND AUTOMATIC PERFECTION   2,670        

OF A SECURITY INTEREST IN A COMMODITY CONTRACT OR COMMODITY        2,671        

ACCOUNT GRANTED BY A COMMODITY INTERMEDIARY ARE GOVERNED BY THE    2,672        

LOCAL LAW OF THE JURISDICTION IN WHICH THE DEBTOR IS LOCATED.                   

      Sec. 1309.112.  (A)  IN THIS CHAPTER:                        2,674        

      (1)  "COMMODITY ACCOUNT" MEANS AN ACCOUNT MAINTAINED BY A    2,676        

COMMODITY INTERMEDIARY IN WHICH A COMMODITY CONTRACT IS CARRIED    2,677        

FOR A COMMODITY CUSTOMER.                                          2,678        

      (2)  "COMMODITY CONTRACT" MEANS A COMMODITY FUTURES          2,680        

CONTRACT, AN OPTION ON A COMMODITY FUTURES CONTRACT, A COMMODITY   2,681        

OPTION, OR OTHER CONTRACT THAT, IN EACH CASE, IS:                  2,682        

      (a)  TRADED ON OR SUBJECT TO THE RULES OF A BOARD OF TRADE   2,684        

THAT HAS BEEN DESIGNATED AS A CONTRACT MARKET FOR SUCH A CONTRACT  2,685        

PURSUANT TO THE FEDERAL COMMODITIES LAWS; OR                       2,686        

      (b)  TRADED ON A FOREIGN COMMODITY BOARD OF TRADE,           2,688        

EXCHANGE, OR MARKET, AND IS CARRIED ON THE BOOKS OF A COMMODITY    2,689        

INTERMEDIARY FOR A COMMODITY CUSTOMER.                             2,690        

      (3)  "COMMODITY CUSTOMER" MEANS A PERSON FOR WHOM A          2,692        

COMMODITY INTERMEDIARY CARRIES A COMMODITY CONTRACT ON ITS BOOKS.  2,693        

      (4)  "COMMODITY INTERMEDIARY" MEANS:                         2,695        

      (a)  A PERSON WHO IS REGISTERED AS A FUTURES COMMISSION      2,697        

MERCHANT UNDER THE FEDERAL COMMODITIES LAWS; OR                    2,698        

      (b)  A PERSON WHO IN THE ORDINARY COURSE OF ITS BUSINESS     2,700        

PROVIDES CLEARANCE OR SETTLEMENT SERVICES FOR A BOARD OF TRADE     2,701        

THAT HAS BEEN DESIGNATED AS A CONTRACT MARKET PURSUANT TO THE      2,702        

FEDERAL COMMODITIES LAWS.                                                       

      (5)  "CONTROL" WITH RESPECT TO A CERTIFICATED SECURITY,      2,704        

UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT HAS THE MEANING   2,705        

SPECIFIED IN SECTION 1308.24 OF THE REVISED CODE.  A SECURED       2,706        

PARTY HAS CONTROL OVER A COMMODITY CONTRACT IF BY AGREEMENT AMONG  2,707        

                                                          63     

                                                                 
THE COMMODITY CUSTOMER, THE COMMODITY INTERMEDIARY, AND THE                     

SECURED PARTY, THE COMMODITY INTERMEDIARY HAS AGREED THAT IT WILL  2,708        

APPLY ANY VALUE DISTRIBUTED ON ACCOUNT OF THE COMMODITY CONTRACT   2,709        

AS DIRECTED BY THE SECURED PARTY WITHOUT FURTHER CONSENT BY THE    2,710        

COMMODITY CUSTOMER.  IF A COMMODITY CUSTOMER GRANTS A SECURITY     2,711        

INTEREST IN A COMMODITY CONTRACT TO ITS OWN COMMODITY              2,712        

INTERMEDIARY, THE COMMODITY INTERMEDIARY AS SECURED PARTY HAS                   

CONTROL.  A SECURED PARTY HAS CONTROL OVER A SECURITIES ACCOUNT    2,713        

OR COMMODITY ACCOUNT IF THE SECURED PARTY HAS CONTROL OVER ALL     2,714        

SECURITY ENTITLEMENTS OR COMMODITY CONTRACTS CARRIED IN THE        2,715        

SECURITIES ACCOUNT OR COMMODITY ACCOUNT.                                        

      (6)  "INVESTMENT PROPERTY" MEANS:                            2,717        

      (a)  A SECURITY, WHETHER CERTIFICATED OR UNCERTIFICATED;     2,719        

      (b)  A SECURITY ENTITLEMENT;                                 2,721        

      (c)  A SECURITIES ACCOUNT;                                   2,723        

      (d)  A COMMODITY CONTRACT; OR                                2,725        

      (e)  A COMMODITY ACCOUNT.                                    2,727        

      (B)  ATTACHMENT OR PERFECTION OF A SECURITY INTEREST IN A    2,729        

SECURITIES ACCOUNT IS ALSO ATTACHMENT OR PERFECTION OF A SECURITY  2,730        

INTEREST IN ALL SECURITY ENTITLEMENTS CARRIED IN THE SECURITIES    2,731        

ACCOUNT.  ATTACHMENT OR PERFECTION OF A SECURITY INTEREST IN A     2,732        

COMMODITY ACCOUNT IS ALSO ATTACHMENT OR PERFECTION OF A SECURITY   2,733        

INTEREST IN ALL COMMODITY CONTRACTS CARRIED IN THE COMMODITY       2,734        

ACCOUNT.                                                                        

      (C)  A DESCRIPTION OF COLLATERAL IN A SECURITY AGREEMENT OR  2,736        

FINANCING STATEMENT IS SUFFICIENT TO CREATE OR PERFECT A SECURITY  2,737        

INTEREST IN A CERTIFICATED SECURITY, UNCERTIFICATED SECURITY,      2,738        

SECURITY ENTITLEMENT, SECURITIES ACCOUNT, COMMODITY CONTRACT, OR   2,739        

COMMODITY ACCOUNT WHETHER IT DESCRIBES THE COLLATERAL BY THOSE     2,740        

TERMS, OR AS INVESTMENT PROPERTY, OR BY DESCRIPTION OF THE         2,741        

UNDERLYING SECURITY, FINANCIAL ASSET, OR COMMODITY CONTRACT.  A    2,742        

DESCRIPTION OF INVESTMENT PROPERTY COLLATERAL IN A SECURITY                     

AGREEMENT OR FINANCING STATEMENT IS SUFFICIENT IF IT IDENTIFIES    2,743        

THE COLLATERAL BY SPECIFIC LISTING, BY CATEGORY, BY QUANTITY, BY   2,744        

                                                          64     

                                                                 
A COMPUTATIONAL OR ALLOCATIONAL FORMULA OR PROCEDURE, OR BY ANY    2,745        

OTHER METHOD, IF THE IDENTITY OF THE COLLATERAL IS OBJECTIVELY     2,746        

DETERMINABLE.                                                                   

      (D)  PERFECTION OF A SECURITY INTEREST IN INVESTMENT         2,748        

PROPERTY IS GOVERNED BY THE FOLLOWING RULES:                       2,749        

      (1)  A SECURITY INTEREST IN INVESTMENT PROPERTY MAY BE       2,751        

PERFECTED BY CONTROL.                                              2,752        

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (D)(3) AND    2,754        

(4) OF THIS SECTION, A SECURITY INTEREST IN INVESTMENT PROPERTY    2,755        

MAY BE PERFECTED BY FILING.                                        2,756        

      (3)  IF THE DEBTOR IS A BROKER OR SECURITIES INTERMEDIARY,   2,758        

A SECURITY INTEREST IN INVESTMENT PROPERTY IS PERFECTED WHEN IT    2,759        

ATTACHES.  THE FILING OF A FINANCING STATEMENT WITH RESPECT TO A   2,760        

SECURITY INTEREST IN INVESTMENT PROPERTY GRANTED BY A BROKER OR    2,761        

SECURITIES INTERMEDIARY HAS NO EFFECT FOR PURPOSES OF PERFECTION   2,762        

OR PRIORITY WITH RESPECT TO THAT SECURITY INTEREST.                             

      (4)  IF A DEBTOR IS A COMMODITY INTERMEDIARY, A SECURITY     2,764        

INTEREST IN A COMMODITY CONTRACT OR A COMMODITY ACCOUNT IS         2,765        

PERFECTED WHEN IT ATTACHES.  THE FILING OF A FINANCING STATEMENT   2,766        

WITH RESPECT TO A SECURITY INTEREST IN A COMMODITY CONTRACT OR A   2,767        

COMMODITY ACCOUNT GRANTED BY A COMMODITY INTERMEDIARY HAS NO       2,768        

EFFECT FOR PURPOSES OF PERFECTION OR PRIORITY WITH RESPECT TO                   

THAT SECURITY INTEREST.                                            2,769        

      (E)  PRIORITY BETWEEN CONFLICTING SECURITY INTERESTS IN THE  2,771        

SAME INVESTMENT PROPERTY IS GOVERNED BY THE FOLLOWING RULES:       2,772        

      (1)  A SECURITY INTEREST OF A SECURED PARTY WHO HAS CONTROL  2,774        

OVER INVESTMENT PROPERTY HAS PRIORITY OVER A SECURITY INTEREST OF  2,775        

A SECURED PARTY WHO DOES NOT HAVE CONTROL OVER THE INVESTMENT      2,776        

PROPERTY.                                                                       

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (E)(3) AND    2,778        

(4) OF THIS SECTION, CONFLICTING SECURITY INTERESTS OF SECURED     2,779        

PARTIES EACH OF WHOM HAS CONTROL RANK EQUALLY.                     2,780        

      (3)  EXCEPT AS OTHERWISE AGREED BY THE SECURITIES            2,782        

INTERMEDIARY, A SECURITY INTEREST IN A SECURITY ENTITLEMENT OR A   2,783        

                                                          65     

                                                                 
SECURITIES ACCOUNT GRANTED TO THE DEBTOR'S OWN SECURITIES          2,784        

INTERMEDIARY HAS PRIORITY OVER ANY SECURITY INTEREST GRANTED BY    2,785        

THE DEBTOR TO ANOTHER SECURED PARTY.                                            

      (4)  EXCEPT AS OTHERWISE AGREED BY THE COMMODITY             2,787        

INTERMEDIARY, A SECURITY INTEREST IN A COMMODITY CONTRACT OR A     2,788        

COMMODITY ACCOUNT GRANTED TO THE DEBTOR'S OWN COMMODITY            2,789        

INTERMEDIARY HAS PRIORITY OVER ANY SECURITY INTEREST GRANTED BY    2,790        

THE DEBTOR TO ANOTHER SECURED PARTY.                                            

      (5)  CONFLICTING SECURITY INTERESTS GRANTED BY A BROKER, A   2,792        

SECURITIES INTERMEDIARY, OR A COMMODITY INTERMEDIARY WHICH ARE     2,793        

PERFECTED WITHOUT CONTROL RANK EQUALLY.                            2,794        

      (6)  IN ALL OTHER CASES, PRIORITY BETWEEN CONFLICTING        2,796        

SECURITY INTERESTS IN INVESTMENT PROPERTY IS GOVERNED BY           2,797        

DIVISIONS (E), (F), AND (G) OF SECTION 1309.31 OF THE REVISED      2,798        

CODE.  DIVISION (D) OF SECTION 1309.31 OF THE REVISED CODE DOES    2,799        

NOT APPLY TO INVESTMENT PROPERTY.                                               

      (F)  IF A SECURITY CERTIFICATE IN REGISTERED FORM IS         2,801        

DELIVERED TO A SECURED PARTY PURSUANT TO AGREEMENT, A WRITTEN      2,802        

SECURITY AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR               2,803        

ENFORCEABILITY OF THE SECURITY INTEREST, DELIVERY SUFFICES FOR     2,804        

PERFECTION OF THE SECURITY INTEREST, AND THE SECURITY INTEREST                  

HAS PRIORITY OVER A CONFLICTING SECURITY INTEREST PERFECTED BY     2,805        

MEANS OTHER THAN CONTROL, EVEN IF A NECESSARY INDORSEMENT IS       2,806        

LACKING.                                                                        

      Sec. 1309.113.  (A)  IF A PERSON BUYS A FINANCIAL ASSET      2,808        

THROUGH A SECURITIES INTERMEDIARY IN A TRANSACTION IN WHICH THE    2,809        

BUYER IS OBLIGATED TO PAY THE PURCHASE PRICE TO THE SECURITIES     2,810        

INTERMEDIARY AT THE TIME OF THE PURCHASE, AND THE SECURITIES       2,811        

INTERMEDIARY CREDITS THE FINANCIAL ASSET TO THE BUYER'S            2,812        

SECURITIES ACCOUNT BEFORE THE BUYER PAYS THE SECURITIES                         

INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS A SECURITY INTEREST  2,813        

IN THE BUYER'S SECURITY ENTITLEMENT SECURING THE BUYER'S           2,814        

OBLIGATION TO PAY.  A SECURITY AGREEMENT IS NOT REQUIRED FOR       2,815        

ATTACHMENT OR ENFORCEABILITY OF THE SECURITY INTEREST, AND THE     2,816        

                                                          66     

                                                                 
SECURITY INTEREST IS AUTOMATICALLY PERFECTED.                                   

      (B)  IF A CERTIFICATED SECURITY, OR OTHER FINANCIAL ASSET    2,818        

REPRESENTED BY A WRITING WHICH IN THE ORDINARY COURSE OF BUSINESS  2,819        

IS TRANSFERRED BY DELIVERY WITH ANY NECESSARY INDORSEMENT OR       2,820        

ASSIGNMENT IS DELIVERED PURSUANT TO AN AGREEMENT BETWEEN PERSONS   2,821        

IN THE BUSINESS OF DEALING WITH SUCH SECURITIES OR FINANCIAL       2,822        

ASSETS AND THE AGREEMENT CALLS FOR DELIVERY VERSUS PAYMENT, THE    2,823        

PERSON DELIVERING THE CERTIFICATE OR OTHER FINANCIAL ASSET HAS A   2,824        

SECURITY INTEREST IN THE CERTIFICATED SECURITY OR OTHER FINANCIAL               

ASSET SECURING THE SELLER'S RIGHT TO RECEIVE PAYMENT.  A SECURITY  2,825        

AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR ENFORCEABILITY OF THE  2,826        

SECURITY INTEREST, AND THE SECURITY INTEREST IS AUTOMATICALLY      2,827        

PERFECTED.                                                                      

      Sec. 1309.14.  (A)  Subject to the provisions of section     2,836        

1304.20 of the Revised Code on the security interest of a          2,837        

collecting bank, section 1308.36 SECTIONS 1309.112 AND 1309.113    2,839        

of the Revised Code on security interests in securities            2,840        

INVESTMENT PROPERTY, and section 1309.11 of the Revised Code on a  2,842        

security interest arising under sections 1302.01 to 1302.98 of     2,843        

the Revised Code, a security interest is not enforceable against   2,844        

the debtor or third parties with respect to the collateral and     2,845        

does not attach unless:                                                         

      (1)  The collateral is in the possession of the secured      2,847        

party pursuant to agreement, THE COLLATERAL IS INVESTMENT          2,848        

PROPERTY AND THE SECURED PARTY HAS CONTROL PURSUANT TO AGREEMENT,  2,849        

or the debtor has signed a security agreement which contains a     2,851        

description of the collateral and in addition, when the security   2,852        

interest covers crops growing or to be grown or timber to be cut,  2,853        

a description of the land concerned; and                           2,854        

      (2)  Value has been given; and                               2,856        

      (3)  The debtor has rights in the collateral.                2,858        

      (B)  A security interest attaches when it becomes            2,860        

enforceable against the debtor with respect to the collateral.     2,861        

Attachment occurs as soon as all of the events specified in        2,862        

                                                          67     

                                                                 
division (A) of this section have taken place unless explicit      2,863        

agreement postpones the time of attaching.                         2,864        

      (C)  Unless otherwise agreed, a security agreement gives     2,866        

the secured party the rights to proceeds provided by section       2,867        

1309.25 of the Revised Code.                                       2,868        

      (D)  A transaction although subject to sections 1309.01 to   2,870        

1309.50 of the Revised Code, is also subject to sections 1317.01   2,871        

to 1317.99 and 1321.01 to 1321.33 of the Revised Code, and         2,872        

divisions (A), (B), and (C) of section 1321.99 of the Revised      2,873        

Code and in the event of conflict between the provisions of        2,874        

sections 1309.01 to 1309.50, and 1317.01 to 1317.99, 1321.01 to    2,875        

1321.33 of the Revised Code, and divisions (A), (B), and (C) of    2,876        

section 1321.99 of the Revised Code, the provisions of sections    2,877        

1317.01 to 1317.99, 1321.01 to 1321.33 of the Revised Code, and    2,878        

divisions (A), (B), and (C) of section 1321.99 of the Revised      2,879        

Code shall prevail.  Failure to comply with such provisions has    2,880        

only the effect provided therein.                                  2,881        

      Sec. 1309.20.  (A)  Except as otherwise provided in          2,890        

division (B) of this section, an unperfected security interest is  2,891        

subordinate to the rights of:                                      2,892        

      (1)  Persons entitled to priority under section 1309.31 of   2,894        

the Revised Code;                                                  2,895        

      (2)  A person who becomes a lien creditor before the         2,897        

security interest is perfected;                                    2,898        

      (3)  In the case of goods, instruments, documents, and       2,900        

chattel paper, a person who is not a secured party and who is a    2,901        

transferee in bulk or other buyer not in ordinary course of        2,902        

business, or is a buyer of farm products in ordinary course of     2,903        

business, to the extent that he THE PERSON gives value and         2,904        

receives delivery of the collateral without knowledge of the       2,905        

security interest and before it is perfected;                      2,907        

      (4)  In the case of accounts and, general intangibles, AND   2,909        

INVESTMENT PROPERTY, a person who is not a secured party and who   2,911        

is a transferee to the extent that he THE PERSON gives value       2,912        

                                                          68     

                                                                 
without knowledge of the security interest and before it is        2,913        

perfected.                                                                      

      (B)  If the secured party files with respect to a purchase   2,915        

money security interest before or within twenty days after the     2,916        

debtor receives possession of the collateral he THE SECURED PARTY  2,918        

takes priority over the rights of a transferee in bulk or of a                  

lien creditor which arise between the time the security interest   2,919        

attaches and the time of filing.                                   2,920        

      (C)  A "lien creditor" means a creditor who has acquired a   2,922        

lien on the property involved by attachment, levy or the like and  2,923        

includes an assignee for benefit of creditors from the time of     2,924        

assignment, and a trustee in bankruptcy from the date of the       2,925        

filing of the petition or a receiver in equity from the time of    2,926        

appointment.                                                       2,927        

      (D)  A person who becomes a lien creditor while a security   2,929        

interest is perfected takes subject to the security interest only  2,930        

to the extent that it secures advances made before he THE PERSON   2,931        

becomes a lien creditor or within forty-five days thereafter or    2,932        

made without knowledge of the lien or pursuant to a commitment     2,933        

entered into without knowledge of the lien.                        2,934        

      Sec. 1309.21.  (A)  A financing statement must be filed to   2,943        

perfect all security interests except the following:               2,944        

      (1)  A security interest in collateral in possession of the  2,946        

secured party under section 1309.24 of the Revised Code;           2,947        

      (2)  A security interest temporarily perfected in            2,949        

instruments, CERTIFICATED SECURITIES, or documents without         2,951        

delivery under section 1309.23 of the Revised Code or in proceeds  2,952        

for a ten-day period under section 1309.25 of the Revised Code;    2,953        

      (3)  A security interest created by an assignment of a       2,955        

beneficial interest in a trust or a decedent's estate;             2,956        

      (4)  A purchase money security interest in consumer goods;   2,958        

but fixture filing is required for a priority over conflicting     2,959        

interests in fixtures to the extent provided in section 1309.32    2,960        

of the Revised Code;                                               2,961        

                                                          69     

                                                                 
      (5)  An assignment of accounts which does not alone or in    2,963        

conjunction with other assignments to the same assignee transfer   2,964        

a significant part of the outstanding accounts of the assignor;    2,965        

      (6)  A security interest of a collecting bank as provided    2,967        

in section 1304.20 of the Revised Code, or in securities as        2,968        

provided in section 1308.36 of the Revised Code, or arising under  2,969        

sections 1302.01 to 1302.98 of the Revised Code, or covered in     2,970        

division (C) of this section;                                      2,971        

      (7)  An assignment for the benefit of all the creditors of   2,973        

the transferor, and subsequent transfers by the assignee           2,974        

thereunder;                                                        2,975        

      (8)  A SECURITY INTEREST IN INVESTMENT PROPERTY WHICH IS     2,977        

PERFECTED WITHOUT FILING UNDER SECTION 1309.112 OR 1309.113 OF     2,978        

THE REVISED CODE.                                                               

      (B)  If a secured party assigns a perfected security         2,980        

interest, no filing under sections 1309.01 to 1309.50 of the       2,981        

Revised Code is required in order to continue the perfected        2,982        

status of the security interest against creditors of and           2,983        

transferees from the original debtor.                              2,984        

      (C)  The filing of a financing statement otherwise required  2,986        

by sections 1309.01 to 1309.50 of the Revised Code is not          2,987        

necessary or effective to perfect a security interest in property  2,988        

subject to:                                                        2,989        

      (1)  A statute or treaty of the United States which          2,991        

provides for a national or international registration or a         2,992        

national or international certificate of title or which specifies  2,993        

a place of filing different from that specified in sections        2,994        

1309.01 to 1309.50 of the Revised Code for filing of the security  2,995        

interest; or                                                       2,996        

      (2)  The following statutes of this state:  sections         2,998        

1548.20, 1701.66, 4505.13 except to the extent provided in         2,999        

division (A) of such section, and 4969.05 of the Revised Code; or  3,000        

      (3)  A certificate of title statute of another jurisdiction  3,002        

under the law of which indication of a security interest on the    3,003        

                                                          70     

                                                                 
certificate is required as a condition of perfection, division     3,004        

(B) of section 1309.03 of the Revised Code.                        3,005        

      (D)  Compliance with a statute or treaty described in        3,007        

division (C) of this section is equivalent to the filing of a      3,008        

financing statement under sections 1309.01 to 1309.50 of the       3,009        

Revised Code, and a security interest in property subject to the   3,010        

statute or treaty can be perfected only by compliance therewith    3,011        

except as provided in section 1309.03 of the Revised Code on       3,012        

multiple state transactions.  Duration and renewal of perfection   3,013        

of a security interest perfected by compliance with the statute    3,014        

or treaty are governed by the provisions of the statute or         3,015        

treaty; in other respects the security interest is subject to      3,016        

sections 1309.01 to 1309.50 of the Revised Code.                   3,017        

      Sec. 1309.22.  (A)  A security interest is perfected when    3,026        

it has attached and when all of the applicable steps required for  3,027        

perfection have been taken, as provided in sections 1309.112,      3,028        

1309.21, 1309.23, 1309.24, and 1309.25 of the Revised Code.  If    3,030        

such steps are taken before the security interest attaches, it is               

perfected at the time when it attaches.                            3,031        

      (B)  If a security interest is originally perfected in any   3,033        

way permitted under sections 1309.01 to 1309.50, inclusive, of     3,034        

the Revised Code, and is subsequently perfected in some other way  3,035        

under sections 1309.01 to 1309.50, inclusive, of the Revised       3,036        

Code, without an intermediate period when it was unperfected, the  3,037        

security interest shall be deemed to be perfected continuously     3,038        

for the purposes of such sections.                                              

      (C)  A security interest by whatever name designated by any  3,040        

law in effect prior to July 1, 1962, which was perfected prior to  3,041        

such date and in connection with which any statement, instrument,  3,042        

document, or notice was filed, refiled, or recorded pursuant to    3,043        

such law, shall, if such law required a further filing, refiling,  3,044        

or recording to continue the perfection of such security           3,045        

interest, continue to be perfected without any further filing,                  

refiling, or recording of any statement, instrument, document, or  3,046        

                                                          71     

                                                                 
notice until the date provided by such law or July 1, 1964,        3,047        

whichever date is later and will thereupon lapse, unless a         3,048        

continuation statement has been filed after July 1, 1962, and      3,049        

prior to the lapse of such statement, instrument, document, or     3,050        

notice pursuant to this section.  Section 1309.38 of the Revised                

Code determines the proper place to file such continuation         3,051        

statement and succeeding continuation statements and, except as    3,052        

otherwise provided in this section, division (C) of section        3,053        

1309.40 of the Revised Code applies to and governs the period of   3,054        

effectiveness and the requirements respecting such continuation                 

statements.                                                        3,055        

      Sec. 1309.23.  (A)  A security interest in chattel paper or  3,064        

negotiable documents may be perfected by filing.  A security       3,065        

interest in money or instruments, other than certificated          3,066        

securities or instruments which constitute part of chattel paper,  3,067        

can be perfected only by the secured party's taking possession,    3,068        

except as provided in divisions (D) and (E) of this section and    3,069        

divisions (B) and (C) of section 1309.25 of the Revised Code on    3,070        

proceeds.                                                          3,071        

      (B)  During the period that goods are in the possession of   3,073        

the issuer of a negotiable document therefor, a security interest  3,074        

in the goods is perfected by perfecting a security interest in     3,075        

the document, and any security interest in the goods otherwise     3,076        

perfected during such period is subject thereto.                   3,077        

      (C)  A security interest in goods in the possession of a     3,079        

bailee other than one who has issued a negotiable document         3,080        

therefor is perfected by issuance of a document in the name of     3,081        

the secured party or by the bailee's receipt of notification of    3,082        

the secured party's interest or by filing as to the goods.         3,083        

      (D)  A security interest in instruments, other than          3,085        

certificated securities, or negotiable documents is perfected      3,086        

without filing or the taking of possession for a period of         3,087        

twenty-one days from the time it attaches to the extent that it    3,088        

arises for new value given under a written security agreement.     3,089        

                                                          72     

                                                                 
      (E)  A security interest remains perfected for a period of   3,091        

twenty-one days without filing where a secured party having a      3,092        

perfected security interest in an instrument, other than a         3,093        

certificated security, a negotiable document, or goods in          3,094        

possession of a bailee other than one who has issued a negotiable  3,095        

document therefor:                                                 3,096        

      (1)  Makes available to the debtor the goods or documents    3,098        

representing the goods for the purpose of ultimate sale or         3,099        

exchange or for the purpose of loading, unloading, storing,        3,100        

shipping, trans-shipping, manufacturing, processing, or otherwise  3,101        

dealing with them in a manner preliminary to their sale or         3,102        

exchange, but priority between conflicting security interests in   3,103        

the goods is subject to division (C) of section 1309.31 of the     3,104        

Revised Code; or                                                   3,105        

      (2)  Delivers the instrument OR CERTIFICATED SECURITY to     3,107        

the debtor for the purpose of ultimate sale or exchange or of      3,109        

presentation, collection, renewal, or registration of transfer.    3,110        

      (F)  After the twenty-one day period set forth in divisions  3,112        

(D) and (E) of this section, perfection depends upon compliance    3,113        

with applicable provisions of sections 1309.01 to 1309.50 of the   3,114        

Revised Code.                                                      3,115        

      Sec. 1309.24.  A security interest in letters of credit and  3,124        

advices of credit, as provided in division (B)(1) of section       3,125        

1305.15 of the Revised Code, goods, instruments, other than        3,126        

certificated securities, negotiable documents, money, or chattel   3,127        

paper may be perfected by the secured party's taking possession    3,128        

of the collateral.  If such collateral other than goods covered    3,129        

by a negotiable document is held by a bailee, the secured party    3,130        

is deemed to have possession from the time the bailee receives     3,131        

notification of the secured party's interest.  A security          3,132        

interest is perfected by possession from the time possession is    3,133        

taken without relation back and continues only so long as          3,134        

possession is retained, unless otherwise specified in sections     3,135        

1309.01 to 1309.50 of the Revised Code.  The security interest     3,136        

                                                          73     

                                                                 
may be otherwise perfected as provided in sections 1309.01 to      3,137        

1309.50 of the Revised Code, before or after the period of         3,138        

possession by the secured party.                                   3,139        

      Sec. 1309.25.  (A)  "Proceeds" includes whatever is          3,148        

received upon the sale, exchange, collection, or other             3,149        

disposition of collateral or proceeds.  Insurance payable by       3,150        

reason of loss or damage to the collateral is proceeds, except to  3,151        

the extent that it is payable to a person other than a party to    3,152        

the security agreement.  Moneys ANY PAYMENTS OR DISTRIBUTIONS      3,153        

MADE WITH RESPECT TO INVESTMENT PROPERTY COLLATERAL ARE PROCEEDS.  3,154        

MONEY, checks, deposit accounts, and the like are "cash            3,156        

proceeds."  All other proceeds are "non-cash proceeds."            3,157        

      (B)  Except where sections 1309.01 to 1309.50 of the         3,159        

Revised Code otherwise provide, a security interest continues in   3,160        

collateral notwithstanding sale, exchange, or other disposition    3,161        

thereof unless the disposition was authorized by the secured       3,162        

party in the security agreement or otherwise, and also continues   3,163        

in any identifiable proceeds including collections received by     3,164        

the debtor.                                                        3,165        

      (C)  The security interest in proceeds is a continuously     3,167        

perfected security interest if the interest in the original        3,168        

collateral was perfected but it ceases to be a perfected security  3,169        

interest and becomes unperfected ten days after receipt of the     3,170        

proceeds by the debtor unless:                                     3,171        

      (1)  a A filed financing statement covers the original       3,173        

collateral and the proceeds are collateral in which a security     3,174        

interest may be perfected by filing in the office or offices       3,175        

where the financing statement has been filed and, if the proceeds  3,176        

are acquired with cash proceeds, the description of the            3,177        

collateral in the financing statement indicates the types of       3,178        

property constituting the proceeds; or                             3,179        

      (2)  a A filed financing statement covers the original       3,181        

collateral and the proceeds are identifiable cash proceeds; or     3,182        

      (3)  the THE ORIGINAL COLLATERAL WAS INVESTMENT PROPERTY     3,184        

                                                          74     

                                                                 
AND THE PROCEEDS ARE IDENTIFIABLE CASH PROCEEDS; OR                3,185        

      (4)  THE security interest in the proceeds is perfected      3,187        

before the expiration of the ten day period.  Except as provided   3,188        

in this section, a security interest in proceeds can be perfected  3,189        

only by the methods or under the circumstances permitted in        3,190        

sections 1309.01 to 1309.50 of the Revised Code for original       3,191        

collateral of the same type.                                       3,192        

      (D)  In the event of insolvency proceedings instituted by    3,194        

or against a debtor, a secured party with a perfected security     3,195        

interest in proceeds has a perfected security interest only in     3,196        

the following proceeds:                                            3,197        

      (1)  in IN identifiable non-cash proceeds and in separate    3,199        

deposit accounts containing only proceeds;                         3,200        

      (2)  in IN identifiable cash proceeds in the form of money   3,202        

which is neither commingled with other money nor deposited in a    3,203        

deposit account prior to the insolvency proceedings;               3,204        

      (3)  in IN identifiable cash proceeds in the form of checks  3,206        

and the like which are not deposited in a deposit account prior    3,207        

to the insolvency proceedings; and                                 3,208        

      (4)  in IN all cash and deposit accounts of the debtor in    3,210        

which proceeds have been commingled with other funds, but the      3,211        

perfected security interest under this division is:                3,212        

      (a)  subject SUBJECT to any right of set-off; and            3,214        

      (b)  limited LIMITED to an amount not greater than the       3,216        

amount of any cash proceeds received by the debtor within ten      3,217        

days before the institution of the insolvency proceedings, less    3,218        

the sum of (i) the payments to the secured party on account of     3,219        

cash proceeds received by the debtor; and (ii) the cash proceeds   3,220        

received by the debtor during such period to which the secured     3,221        

party is entitled under divisions (D)(1) to (3) of this section.   3,222        

      (E)  If a sale of goods results in an account or chattel     3,224        

paper which is transferred by the seller to a secured party, and   3,225        

if the goods are returned to or are repossessed by the seller or   3,226        

the secured party, the following rules determine priorities:       3,227        

                                                          75     

                                                                 
      (1)  If the goods were collateral at the time of sale for    3,229        

an indebtedness of the seller which is still unpaid, the original  3,230        

security interest attaches again to the goods and continues as a   3,231        

perfected security interest if it was perfected at the time when   3,232        

the goods were sold.  If the security interest was originally      3,233        

perfected by a filing which is still effective, nothing further    3,234        

is required to continue the perfected status; in any other case,   3,235        

the secured party must take possession of the returned or          3,236        

repossessed goods or must file.                                    3,237        

      (2)  An unpaid transferee of the chattel paper has a         3,239        

security interest in the goods against the transferor.  Such       3,240        

security interest is prior to a security interest asserted under   3,241        

division (E)(1) of this section to the extent that the transferee  3,242        

of the chattel paper was entitled to priority under section        3,243        

1309.27 of the Revised Code.                                       3,244        

      (3)  An unpaid transferee of the account has a security      3,246        

interest in the goods against the transferor.  Such security       3,247        

interest is subordinate to a security interest asserted under      3,248        

division (E)(1) of this section.                                   3,249        

      (4)  A security interest of an unpaid transferee asserted    3,251        

under division (E)(2) or (3) of this section must be perfected     3,252        

for protection against creditors of the transferor and purchasers  3,253        

of the returned or repossessed goods.                              3,254        

      Sec. 1309.28.  Nothing in sections 1309.01 to 1309.50 of     3,263        

the Revised Code, limit LIMITS the rights of a holder in due       3,264        

course of a negotiable instrument, as defined in section 1303.32   3,266        

of the Revised Code, or a holder to whom a negotiable document of  3,267        

title has been duly negotiated under section 1307.29 of the        3,268        

Revised Code, or a bona fide PROTECTED purchaser of a security     3,269        

under section 1308.17 of the Revised Code, and such holders or     3,271        

purchasers take priority over an earlier security interest even    3,272        

though perfected. Filing under sections 1309.01 to 1309.50 of the  3,273        

Revised Code, does not constitute notice of the security interest  3,274        

to such holders or purchasers.                                     3,275        

                                                          76     

                                                                 
      Sec. 1309.31.  (A)  The rules of priority stated in          3,284        

sections 1309.20 to 1309.27 of the Revised Code and in the         3,285        

following sections shall govern where applicable:  section         3,286        

1304.20 of the Revised Code with respect to the security           3,287        

interests of collecting banks in items being collected,            3,288        

accompanying documents, and proceeds; section 1309.03 of the       3,289        

Revised Code on security interests related to other                3,290        

jurisdictions; section 1309.111 of the Revised Code on             3,291        

consignments; SECTION 1309.112 OF THE REVISED CODE ON SECURITY     3,292        

INTERESTS IN INVESTMENT PROPERTY.                                  3,293        

      (B)  A perfected security interest in crops for new value    3,295        

given to enable the debtor to produce the crops during the         3,296        

production season and given not more than three months before the  3,297        

crops become growing crops by planting or otherwise takes          3,298        

priority over an earlier perfected security interest to the        3,299        

extent that such earlier interest secures obligations due more     3,300        

than six months before the crops become growing crops by planting  3,301        

or otherwise, even though the person giving new value had          3,302        

knowledge of the earlier security interest.                        3,303        

      (C)  A perfected purchase money security interest in         3,305        

inventory has priority over a conflicting security interest in     3,306        

the same inventory and also has priority in identifiable cash      3,307        

proceeds received on or before the delivery of the inventory to a  3,308        

buyer if:                                                          3,309        

      (1)  The purchase money security interest is perfected at    3,311        

the time the debtor receives possession of the inventory; and      3,312        

      (2)  The purchase money secured party gives notification in  3,314        

writing to the holder of the conflicting security interest if the  3,315        

holder had filed a financing statement covering the same types of  3,316        

inventory:                                                         3,317        

      (a)  Before the date of the filing made by the purchase      3,319        

money secured party; or                                            3,320        

      (b)  Before the beginning of the twenty-one-day period       3,322        

where the purchase money security interest is temporarily          3,323        

                                                          77     

                                                                 
perfected without filing or possession pursuant to division (E)    3,324        

of section 1309.23 of the Revised Code; and                        3,325        

      (3)  The holder of the conflicting security interest         3,327        

receives the notification within five years before the debtor      3,328        

receives possession of the inventory; and                          3,329        

      (4)  The notification states that the person giving the      3,331        

notice has or expects to acquire a purchase money security         3,332        

interest in inventory of the debtor, describing such inventory by  3,333        

item or type.                                                      3,334        

      (D)  A purchase money security interest in collateral other  3,336        

than inventory has priority over a conflicting security interest   3,337        

in the same collateral or its proceeds if the purchase money       3,338        

security interest is perfected at the time the debtor receives     3,339        

possession of the collateral or within twenty days thereafter.     3,340        

      (E)  In all cases not governed by other rules stated in      3,342        

this section, including cases of purchase money security           3,343        

interests which do not qualify for the special priorities set      3,344        

forth in divisions (C) and (D) of this section, priority between   3,345        

conflicting security interests in the same collateral shall be     3,346        

determined according to the following rules:                       3,347        

      (1)  Conflicting security interests rank according to        3,349        

priority in time of filing or perfection.  Priority dates from     3,350        

the time a filing is first made covering the collateral or the     3,351        

time the security interest is first perfected, whichever is        3,352        

earlier, provided that there is no period thereafter when there    3,353        

is neither filing nor perfection.                                  3,354        

      (2)  So long as conflicting security interests are           3,356        

unperfected, the first to attach has priority.                     3,357        

      (F)  For the purpose of division (E) of this section, a      3,359        

date of filing or perfection as to collateral is also a date of    3,360        

filing or perfection as to proceeds.                               3,361        

      (G)  If future advances are made while a security interest   3,363        

is perfected by filing, the taking of possession, or under         3,364        

section 1308.36 1309.112 OR 1309.113 of the Revised Code on        3,366        

                                                          78     

                                                                 
securities INVESTMENT PROPERTY, the security interest has the      3,367        

same priority for the purposes of division (E) of this section OR  3,368        

DIVISION (E) OF SECTION 1309.112 OF THE REVISED CODE with respect  3,369        

to the future advances as it does with respect to the first        3,370        

advance.  If a commitment is made before or while the security     3,371        

interest is so perfected, the security interest has the same       3,372        

priority with respect to advances made pursuant thereto.  In       3,373        

other cases a perfected security interest has priority from the    3,374        

date the advance is made.                                                       

      Sec. 1701.24.  (A)  The shares of a corporation are          3,383        

personal property.                                                 3,384        

      (B)  Each holder of shares is entitled to one or more        3,386        

certificates, signed by the chairman CHAIRPERSON of the board or   3,387        

the president or a vice-president and by the secretary, an         3,388        

assistant secretary, the treasurer, or an assistant treasurer of   3,389        

the corporation, which shall certify the number and class of       3,390        

shares held by him THE HOLDER in such corporation, but no          3,391        

certificate for shares shall be executed or delivered until such   3,392        

shares are fully paid.  When such a certificate is countersigned   3,393        

by an incorporated transfer agent or registrar, the signature of   3,394        

any of said SUCH officers of the corporation may be facsimile,     3,395        

engraved, stamped, or printed.  Although any officer of the        3,396        

corporation whose manual or facsimile signature is affixed to      3,397        

such a certificate ceases to be such officer before the            3,398        

certificate is delivered, such certificate nevertheless shall be   3,399        

effective in all respects when delivered.                          3,400        

      (C)  A corporation is not obligated to but may issue         3,402        

fractional shares.  In the case of uncertificated securities, the  3,403        

corporation may treat the issuance of fractional shares in         3,404        

accordance with the procedures set forth in section 1308.44 of     3,405        

the Revised Code, or may proceed as provided in divisions (C)(1)   3,406        

and (2) of this section.  In the case of certificated securities   3,407        

the corporation may execute and deliver a certificate for or       3,408        

including a fraction of a share; or, in lieu thereof, may:         3,409        

                                                          79     

                                                                 
      (1)  Pay to the person otherwise entitled to become a        3,411        

holder of a fraction of a share an amount in cash specified as     3,412        

the value thereof in the articles, a resolution of the directors,  3,413        

or other agreement or instrument pursuant to which such fraction   3,414        

of a share would otherwise be issued, or, if not so specified,     3,415        

then the amount determined for such purpose by the directors of    3,416        

the issuing corporation, or the amount realized upon sale of such  3,417        

fraction of a share;                                               3,418        

      (2)  Provide reasonable means to afford to such person the   3,420        

opportunity, on specified terms and conditions, to purchase or     3,421        

sell fractional interests in shares, to the exclusion of all       3,422        

rights he might otherwise have;                                    3,423        

      (3)  Execute and deliver registered or bearer scrip over     3,425        

the manual or facsimile signature of an officer of the             3,426        

corporation or of its agent for that purpose, exchangeable as      3,427        

therein provided for full shares, but such scrip shall not         3,428        

entitle the holder to any rights as a shareholder except as        3,429        

therein provided.  The scrip may provide that it shall become      3,430        

void unless the rights of the holders are exercised within a       3,431        

specified period and may contain any other provisions that the     3,432        

corporation deems advisable.  Whenever any such scrip ceases to    3,433        

be exchangeable for full shares, the shares that would otherwise   3,434        

have been issuable as therein provided shall be deemed to be       3,435        

treasury shares unless the scrip contains other provision for      3,436        

their disposition.                                                 3,437        

      (D)  A joint estate with the incidents of a joint estate as  3,439        

at common law, including the right of survivorship, may be         3,440        

created in shares by registering the same in the case of           3,441        

uncertificated securities, or by executing and delivering a        3,442        

certificate therefor in the case of certificated securities to     3,443        

two or more persons with the words "as joint tenants" or "as       3,444        

joint tenants with right of survivorship and not as tenants in     3,445        

common" following their names.  Upon receipt by the corporation    3,446        

of proof satisfactory to it of the death of one or more of such    3,447        

                                                          80     

                                                                 
joint tenants, it may register the transfer to, or execute and     3,448        

deliver a new certificate to the survivor or survivors.            3,449        

      (E)  Whenever a corporation has determined that any          3,451        

outstanding certificates for shares should be canceled and         3,452        

exchanged for other certificates, the corporation may order and    3,453        

require the holders of the outstanding certificates to surrender   3,454        

them for such purpose within a reasonable time to be fixed by the  3,455        

corporation.  Such order may provide that, until compliance        3,456        

therewith, any or all rights as a shareholder of the holder of     3,457        

any certificate so required to be surrendered shall be suspended   3,458        

with respect to the shares represented thereby.  Not less than     3,459        

ten days before any such order is to become effective, the         3,460        

corporation shall give notice thereof by mail to each shareholder  3,461        

affected thereby at his address as it appears on the records of    3,462        

the corporation.                                                   3,463        

      (F)  Unless otherwise provided by the articles or            3,465        

regulations, the directors may provide by resolution that some or  3,466        

all of any or all classes and series of shares of a corporation    3,467        

shall be uncertificated shares, provided that such resolution      3,468        

shall not apply to shares represented by a certificate until such  3,469        

certificate is surrendered to the corporation as provided in       3,470        

division (B) of section 1308.43 of the Revised Code, and that      3,471        

such resolution shall not apply to a certificated security issued  3,472        

in exchange for an uncertificated security as provided in          3,473        

division (C) of section 1308.43 of the Revised Code.  Within a     3,474        

reasonable time after the issuance or transfer of uncertificated   3,475        

shares, the corporation shall send to the registered owner         3,476        

thereof a written notice containing the information required to    3,477        

be set forth or stated on certificates pursuant to division (A)    3,478        

of section 1701.25 of the Revised Code.  Such notice may be        3,479        

contained in the statement required by section 1308.44 of the      3,480        

Revised Code.  Except as otherwise expressly provided by law, the  3,481        

rights and obligations of the holders of uncertificated shares     3,482        

and the rights and obligations of the holders of certificates      3,483        

                                                          81     

                                                                 
representing shares of the same class and series shall be          3,484        

identical.                                                         3,485        

      Sec. 1701.25.  (A)  Each certificate for shares of a         3,494        

corporation shall state:                                           3,495        

      (1)  That the corporation is organized under the laws of     3,497        

this state;                                                        3,498        

      (2)  The name of the person to whom the shares represented   3,500        

by the certificate are issued;                                     3,501        

      (3)  The number of shares represented by the certificate;    3,503        

      (4)  If the shares of the corporation are classified, the    3,505        

designation of the class, and the series, if any, of the shares    3,506        

represented by the certificate;                                    3,507        

      (5)  On the face or the back of the certificate:             3,509        

      (a)  The express terms, if any, of the shares represented    3,511        

by the certificate and of the other class or classes and series    3,512        

of shares, if any, which the corporation is authorized to issue;   3,513        

or                                                                 3,514        

      (b)  A summary of such express terms; or                     3,516        

      (c)  That the corporation will mail to the shareholder a     3,518        

copy of such express terms without charge within five days after   3,519        

receipt of written request therefor; or                            3,520        

      (d)  That a copy of such express terms is attached to and    3,522        

by reference made a part of such certificate and that the          3,523        

corporation will mail to the shareholder a copy of such express    3,524        

terms without charge within five days after receipt of written     3,525        

request therefor if the copy has become detached from the          3,526        

certificate.                                                       3,527        

      (B)  No restriction on the right to transfer shares and no   3,529        

reservation of lien on shares shall be effective against a         3,530        

transferee of such shares unless, as to uncertificated             3,531        

securities, there is set forth in the initial transaction          3,532        

statement required for liens by section 1308.02 of the Revised     3,533        

Code, and for restrictions on transfer by THERE HAS BEEN           3,534        

COMPLIANCE WITH section 1308.11 of the Revised Code, and unless,   3,536        

                                                          82     

                                                                 
as to certificated securities, there is set forth on the face or   3,537        

the back of the certificate therefor:                                           

      (1)  A statement of the terms of such restriction or         3,539        

reservation; or                                                    3,540        

      (2)  A summary of the terms of such restriction or           3,542        

reservation and a statement that the corporation will mail to the  3,543        

shareholder a copy of such restriction or reservation without      3,544        

charge within five days after receipt of written request           3,545        

therefor; or                                                       3,546        

      (3)  If such restriction or reservation is contained in the  3,548        

articles or regulations of the corporation, or in an instrument    3,549        

in writing to which the corporation is a party, a statement to     3,550        

that effect and a statement that the corporation will mail to the  3,551        

shareholder a copy of such restriction or reservation without      3,552        

charge within five days after receipt of written request           3,553        

therefor; or                                                       3,554        

      (4)  If such restriction or reservation is contained in an   3,556        

instrument in writing (other than the articles or regulations of   3,557        

the corporation or an instrument in writing to which the           3,558        

corporation is a party), a statement to that effect identifying    3,559        

the instrument by title, date, and parties.                        3,560        

      (C)  A corporation shall mail to a shareholder without       3,562        

charge within five days after receipt of written request therefor  3,563        

the copy or copies referred to in paragraphs (5)(c) and (5)(d) of  3,564        

division (A) and paragraphs (2) and (3) of division (B) of this    3,565        

section.                                                           3,566        

      Sec. 1701.27.  (A)  In case a certificate for shares is      3,575        

lost, stolen, or destroyed, the court of common pleas or the       3,576        

probate court of the county in which the principal office of the   3,577        

corporation is located shall have jurisdiction to hear and         3,578        

determine all questions respecting such loss, theft, or            3,579        

destruction, the person interested therein, the bond required to                

be given to protect the corporation or any person injured by the   3,580        

execution and delivery of a new certificate, the terms on which a  3,581        

                                                          83     

                                                                 
new certificate shall be executed and delivered, and the costs     3,582        

and counsel fees, if any, to be allowed to the corporation.        3,583        

      (B)  A corporation which voluntarily and in good faith       3,585        

executes and delivers a new certificate in lieu of one believed    3,586        

to have been lost, stolen, or destroyed, or which executes and     3,587        

delivers a new certificate in compliance with an order of a court  3,588        

of competent jurisdiction, may recognize the person named in the   3,589        

new certificate, or any certificate thereafter executed and                     

delivered in exchange or substitution for such new certificate,    3,590        

as the owner of the shares described therein for all purposes,     3,591        

until the owner of the original certificate, or a transferee       3,592        

thereof without notice and for value, enjoins the corporation and  3,593        

the holder of any new certificate, or any certificate executed                  

and delivered in exchange or substitution for such new             3,594        

certificate, from so acting.                                       3,595        

      (C)  Special provisions in sections 1308.01 to 1308.36,      3,597        

inclusive, of the Revised Code, (particularly section 1308.35      3,598        

1308.41 of the Revised Code) relating to the replacement of lost,  3,600        

apparently destroyed, or wrongfully taken securities shall govern  3,601        

to the exclusion of the provisions of this section on this                      

subject, except where it clearly appears that a special provision  3,602        

is cumulative, in which case it and the provisions of this         3,603        

section on the same subject shall apply.                           3,604        

      Sec. 1701.49.  (A)  By written agreement certificates for    3,613        

shares of a corporation may be deposited within or without this    3,614        

state by any holder or holders thereof with one or more persons    3,615        

as trustees, or with any depositary designated by or pursuant to   3,616        

such agreement to act for such trustees, for the purpose and with  3,617        

the effect of granting to such trustees or a majority of them, or  3,618        

to such persons as may be designated by or pursuant to such        3,619        

agreement, all the voting, consenting, or other rights in respect  3,620        

of the shares represented by such certificates, or such of these   3,621        

rights as may be specified in the agreement, or for such other     3,622        

lawful purposes as may be specified in the agreement, for such     3,623        

                                                          84     

                                                                 
period and upon such terms as may be stated therein.               3,624        

      In the case of uncertificated securities, the deposit of     3,626        

the shares may be accomplished by registration in the name of the  3,627        

trustee or trustees as provided in division (F) of this section.   3,628        

      (B)  No such agreement which grants the voting or            3,630        

consenting rights in respect of shares shall be irrevocable for a  3,631        

period of more than ten years, unless the voting or consenting     3,632        

rights granted thereby are coupled with an interest in the shares  3,633        

to which such rights relate, except that, if the agreement so      3,634        

provides, such irrevocable grant may be extended for additional    3,635        

periods of not more than ten years each, upon the affirmative      3,636        

vote or assent of the beneficial owners of not less than a         3,637        

majority of the shares deposited under the agreement.  Such        3,638        

rights shall be deemed coupled with an interest in the shares if   3,639        

granted in connection with:  an option, authority, or contract to  3,640        

buy or sell the shares or a part thereof; a pledge of the shares   3,641        

to secure the performance or nonperformance of any act; the        3,642        

performance or nonperformance of any act, or agreement for an      3,643        

act, by the corporation issuing the shares; or any other act or    3,644        

thing constituting an interest sufficient in law to support a      3,645        

power coupled therewith.                                           3,646        

      (C)  The trustees under the agreement may issue, or cause    3,648        

to be issued by their depositary or agent, voting trust            3,649        

certificates registered in the name of the owners thereof.  So     3,650        

far as consistent with the agreement and the voting trust          3,651        

certificates issued thereunder, the provisions of sections         3,652        

1308.01 to 1308.44 CHAPTER 1308., and of sections 1701.01 to       3,654        

1701.99 of the Revised Code, with respect to the transfer of       3,655        

certificates for shares shall apply to transfers of such voting    3,656        

trust certificates.                                                3,657        

      Voting trust certificates must be in certificated form, and  3,659        

interests in a voting trust shall not be eligible for treatment    3,660        

as uncertificated securities.                                      3,661        

      (D)  The agreement may include any terms not repugnant to    3,663        

                                                          85     

                                                                 
law, including provisions defining, limiting, or regulating the    3,664        

exercise of the authority, and the liability of, the trustees, or  3,665        

of such persons as are designated by or pursuant to any such       3,666        

agreement to exercise the voting, consenting, or other rights in   3,667        

respect of the deposited shares or to act as depositary            3,668        

thereunder.                                                        3,669        

      (E)  An executed counterpart of the agreement may be filed   3,671        

with the secretary of the corporation, and upon such filing shall  3,672        

be open to inspection by any shareholder at the office of the      3,673        

corporation at all reasonable times.                               3,674        

      (F)  The certificates for shares so deposited may be         3,676        

surrendered to and canceled by the issuing corporation, and if     3,677        

this is done new certificates therefor shall be issued by the      3,678        

corporation in the names of the trustees or of such persons as     3,679        

are designated by or pursuant to the agreement, as specified in a  3,680        

writing signed by the trustees and delivered to the issuing        3,681        

corporation.  The new certificates shall be delivered to the       3,682        

trustees, or to any depositary, as the trustees may direct.  The   3,683        

new certificates shall be issued in such manner that it shall      3,684        

appear that they are issued pursuant to the agreement, and in the  3,685        

entry of ownership in the proper books of the corporation that     3,686        

fact shall also be noted.                                          3,687        

      If the corporation has elected to issue uncertificated       3,689        

securities, shares in uncertificated form may be deposited, with   3,690        

the effect provided by division (A) of this section, by            3,691        

registration in the name of the trustee or trustees or of such     3,692        

persons as are designated by or pursuant to the agreement, in      3,693        

accordance with sections 1308.01 to 1308.44 CHAPTER 1308. of the   3,695        

Revised Code.                                                                   

      (G)  Shares issued by a foreign corporation may be made the  3,697        

subject of an agreement under this section.                        3,698        

      (H)  The rights conferred by this section are in addition    3,700        

to rights at common law, and no limitation established by this     3,701        

section shall limit rights at common law.                          3,702        

                                                          86     

                                                                 
      (I)  Any such agreement shall be conclusively deemed to      3,704        

have been made under the common law, and not under this section,   3,705        

if the agreement so states.                                        3,706        

      Sec. 1701.591.  (A)  In order to qualify as a close          3,715        

corporation agreement under this section, the agreement shall      3,716        

meet the following requirements:                                   3,717        

      (1)  Every person who is a shareholder of the corporation    3,719        

at the time of the agreement's adoption, whether or not entitled   3,720        

to vote, shall have assented to the agreement in writing;          3,721        

      (2)  The agreement shall be set forth in the articles, the   3,723        

regulations, or another written instrument;                        3,724        

      (3)  The agreement shall include a statement that it is to   3,726        

be governed by this section.                                       3,727        

      (B)  A close corporation agreement that is not set forth in  3,729        

the articles or the regulations shall be entered in the record of  3,730        

minutes of the proceedings of the shareholders of the corporation  3,731        

and shall be subject to the provisions of division (C) of section  3,732        

1701.92 of the Revised Code.                                       3,733        

      (C)  Irrespective of any other provisions of this chapter,   3,735        

but subject to division (D)(2) of this section, a close            3,736        

corporation agreement may contain provisions, which shall be       3,737        

binding on the corporation and all of its shareholders,            3,738        

regulating any aspect of the internal affairs of the corporation   3,739        

or the relations of the shareholders among themselves, including   3,740        

the following:                                                     3,741        

      (1)  Regulation of the management of the business and        3,743        

affairs of the corporation;                                        3,744        

      (2)  The right of one or more shareholders to dissolve the   3,746        

corporation at will or on the occurrence of a specified event or   3,747        

contingency;                                                       3,748        

      (3)  The obligation to vote the shares of a person as        3,750        

specified, or voting requirements, including the requirement of    3,751        

the affirmative vote or approval of all shareholders or of all     3,752        

directors, which voting requirements need not appear in the        3,753        

                                                          87     

                                                                 
articles unless the close corporation agreement is set forth in    3,754        

the articles;                                                      3,755        

      (4)  The designation of the persons who shall be the         3,757        

officers or directors of the corporation;                          3,758        

      (5)  The authority of any individual who holds more than     3,760        

one office of the corporation to execute, acknowledge, or certify  3,761        

in more than one capacity any instrument required to be executed,  3,762        

acknowledged, or certified by the holders of two or more offices;  3,763        

      (6)  The terms and conditions of employment of an officer    3,765        

or employee of the corporation without regard to the period of     3,766        

his employment;                                                    3,767        

      (7)  The declaration and payment of dividends or             3,769        

distributions or the division of profits;                          3,770        

      (8)  Elimination of the board of directors, restrictions     3,772        

upon the exercise by directors of their authority, or delegation   3,773        

to one or more shareholders or other persons of all or part of     3,774        

the authority of the directors;                                    3,775        

      (9)  Conferring on any shareholder or his agent OF A         3,777        

SHAREHOLDER the absolute right, without the necessity of stating   3,778        

any purpose, to examine and copy during usual business hours any   3,779        

of the corporation's records or documents to which reference is    3,780        

made in section 1701.37 of the Revised Code;                       3,781        

      (10)  Prohibition of or limitation upon the issuance or      3,783        

sale by the corporation of any of its shares, including treasury   3,784        

shares, without the affirmative vote or approval of the holders    3,785        

of all or a proportion of the outstanding shares or unless other   3,786        

specified terms and conditions are met;                            3,787        

      (11)  Arbitration of issues on which the shareholders are    3,789        

deadlocked in voting power or on which the directors or other      3,790        

parties managing the corporation are deadlocked;                   3,791        

      (12)  Dispensing with the annual meeting of shareholders     3,793        

unless a shareholder, by written notice to the president or        3,794        

secretary either by personal delivery or by mail within thirty     3,795        

days after the end of the most recent fiscal year of the           3,796        

                                                          88     

                                                                 
corporation, requests that the meeting be held.                    3,797        

      (D)  Except as may be necessary to give effect to divisions  3,799        

(C)(3), (5), (8), (9), and (12) and division (I) of this section,  3,800        

any provision of a close corporation agreement that does either    3,801        

of the following shall be invalid:                                 3,802        

      (1)  Eliminates the filing with the secretary of state of    3,804        

any document required under this chapter or changes the required   3,805        

form or content of the document;                                   3,806        

      (2)  Waives or alters the effect of any of the provisions    3,808        

of section 1701.03, 1701.18, 1701.24, 1701.25, 1701.30, 1701.31,   3,809        

1701.32, 1701.33, 1701.35, 1701.37, 1701.38, 1701.39, 1701.591,    3,810        

1701.91, 1701.93, 1701.94, 1701.95, or the first sentence of       3,811        

section 1701.64 of the Revised Code.                               3,812        

      Unless otherwise provided in the close corporation           3,814        

agreement, the invalidity of a provision pursuant to this          3,815        

division does not affect the validity of the remainder of the      3,816        

agreement.                                                         3,817        

      Any certificate that is required to be filed with the        3,819        

secretary of state with respect to the authorization or taking of  3,820        

any action pursuant to a close corporation agreement that would    3,821        

not be permitted under this chapter in the absence of division     3,822        

(C) of this section shall recite the existence of a close          3,823        

corporation agreement that authorizes the action.                  3,824        

      (E)(1)  Except as provided in division (E)(2) of this        3,826        

section, a close corporation agreement may be amended or           3,827        

terminated by the affirmative vote or written consent of the       3,828        

holders, then parties to the close corporation agreement, of all   3,829        

of the outstanding shares of each class or, as may be provided by  3,830        

the close corporation agreement, of the holders, then parties to   3,831        

the close corporation agreement, of a proportion of not less than  3,832        

four-fifths of the outstanding shares of each class.  If a close   3,833        

corporation agreement is amended or terminated by the written      3,834        

consent of the holders of fewer than all of the shares, the        3,835        

secretary of the corporation shall mail a copy of the amendment    3,836        

                                                          89     

                                                                 
or a notice of the termination to each shareholder who did not so  3,837        

consent.  If a close corporation agreement set forth in the        3,838        

articles is amended, the amendment shall not be effective unless   3,839        

it is filed as an amendment to the articles pursuant to section    3,840        

1701.73 of the Revised Code.  No corporation with respect to       3,841        

which a close corporation agreement is in effect shall cause to    3,842        

occur any of the actions described in division (I)(1)(a), (b), or  3,843        

(c) of this section unless the action has been authorized by the   3,844        

affirmative vote or written consent of the holders, then parties   3,845        

to the close corporation agreement, of that proportion of shares   3,846        

of each class that is required to terminate the close corporation  3,847        

agreement.                                                         3,848        

      (2)  A close corporation agreement that was in existence on  3,850        

December 31, 1993, and that did not specify on that date and that  3,851        

has not specified since that date the proportion of shares         3,852        

required to amend or terminate the close corporation agreement     3,853        

may be amended or terminated by the affirmative vote or written    3,854        

consent of the holders, then parties to the close corporation      3,855        

agreement, of four-fifths of the outstanding shares of each        3,856        

class.                                                             3,857        

      (F)  No close corporation agreement is invalid among the     3,859        

parties or in respect of the corporation on any of the following   3,860        

grounds:                                                           3,861        

      (1)  The agreement is an attempt to treat the corporation    3,863        

as if it were a partnership or to arrange the relationship of the  3,864        

parties in a manner that would be appropriate only among           3,865        

partners;                                                          3,866        

      (2)  The agreement provides for the conduct of the affairs   3,868        

of a corporation or relations among shareholders in any manner     3,869        

that would be inappropriate or unlawful under provisions of this   3,870        

chapter other than those set forth in division (D)(2) of this      3,871        

section or under other applicable law;                             3,872        

      (3)  The agreement interferes with the authority or          3,874        

discretion of the directors;                                       3,875        

                                                          90     

                                                                 
      (4)  The agreement has not been filed with the minutes as    3,877        

required by division (B) of this section.                          3,878        

      (G)  If a close corporation agreement provides that there    3,880        

shall be no board of directors, both of the following apply:       3,881        

      (1)  The shareholders, for the purposes of any statute or    3,883        

rule of law relating to corporations, are deemed to be the         3,884        

directors and to have all of the liabilities, immunities,          3,885        

defenses, and indemnifications of directors with respect to any    3,886        

action or inaction of the corporation, except that any             3,887        

shareholder who is not permitted by the articles, the              3,888        

regulations, or the close corporation agreement to vote on or      3,889        

assent to an action or assent to an inaction shall not be liable   3,890        

as a director with respect to the action or inaction.              3,891        

      (2)  Except to the extent that the voting rights of the      3,893        

shares of a class are increased, limited, or denied by the         3,894        

articles, the regulations, or the close corporation agreement,     3,895        

each outstanding share regardless of class shall entitle its       3,896        

holder to one vote on each matter, including any matter normally   3,897        

voted on by directors, that is properly submitted to the           3,898        

shareholders for their vote, consent, waiver, release, or other    3,899        

action.                                                            3,900        

      (H)  The existence of a close corporation agreement shall    3,902        

be noted conspicuously on the face or the back of every            3,903        

certificate for shares of the corporation and a purchaser or       3,904        

transferee of shares represented by a certificate on which such a  3,905        

notation so appears shall be conclusively considered to have       3,906        

taken delivery with notice of the close corporation agreement.     3,907        

Any transferee of shares by gift, bequest, or inheritance and any  3,908        

purchaser or transferee of shares with knowledge or notice of a    3,909        

close corporation agreement is bound by the agreement and shall    3,910        

be considered to be a party to the agreement.                      3,911        

      (I)(1)  A close corporation agreement becomes invalid under  3,913        

any of the following circumstances:                                3,914        

      (a)  Shares of the corporation are listed on a national      3,916        

                                                          91     

                                                                 
securities exchange.                                               3,917        

      (b)  Shares of the corporation are registered under section  3,919        

12(g) of the "Securities Exchange Act of 1934," 48 Stat. 892, 15   3,920        

U.S.C. 781, as amended.                                            3,921        

      (c)  Shares of the corporation have been included in a       3,923        

registration statement that has become effective pursuant to the   3,924        

"Securities Act of 1933," 84 Stat. 74, 15 U.S.C. 77a-77aa, and     3,925        

the corporation is required to file periodic reports and           3,926        

information pursuant to section 15(d) of the "Securities Exchange  3,927        

Act of 1934," 48 Stat. 892, 15 U.S.C. 77m, as amended.             3,928        

      (d)  Shares of the corporation are transferred or issued to  3,930        

a person who takes delivery of the certificate for the shares      3,931        

other than by gift, bequest, or inheritance and without knowledge  3,932        

or notice of the close corporation agreement; that person          3,933        

delivers to the corporation a written rejection of the close       3,934        

corporation agreement within ninety days after the date on which   3,935        

that person first received notice of the existence of the close    3,936        

corporation agreement or within three years of the date of         3,937        

transfer or issuance, whichever is earlier; and the corporation    3,938        

does not offer in writing, within thirty days after the date on    3,939        

which the corporation received the written rejection, to purchase  3,940        

the shares from that person for the full amount paid for the       3,941        

shares, or, having made an offer to purchase the shares for that   3,942        

amount, the corporation, upon that person's acceptance of the      3,943        

offer, does not purchase the shares in accordance with division    3,944        

(I)(3) of this section.                                            3,945        

      (2)  A close corporation agreement does not become invalid   3,947        

and the person to whom the shares are transferred or issued is     3,948        

not entitled to any payment from the corporation pursuant to       3,949        

division (I)(3) of this section if both of the following apply:    3,950        

      (a)  Shares of the corporation are transferred or issued to  3,952        

a person who takes delivery of the certificate for the shares      3,953        

other than by gift, bequest, or inheritance and without knowledge  3,954        

or notice of the close corporation agreement;                      3,955        

                                                          92     

                                                                 
      (b)  That person does either of the following:               3,957        

      (i)  Fails to deliver a written rejection of the close       3,959        

corporation agreement to the corporation within ninety days after  3,960        

the date on which that person first received notice of the         3,961        

existence of the close corporation agreement or within three       3,962        

years of the date of transfer or issuance, whichever is earlier;   3,963        

      (ii)  Fails, within thirty days after the date on which      3,965        

that person receives a written offer by the corporation to         3,966        

purchase the shares from that person for the full amount paid for  3,967        

the shares, to accept the offer.                                   3,968        

      (3)  If shares of a corporation are transferred or issued    3,970        

to a person who takes delivery of the certificate for the shares   3,971        

other than by gift, bequest, or inheritance and without knowledge  3,972        

or notice of the close corporation agreement and that person       3,973        

accepts an offer by the corporation to purchase the shares, the    3,974        

corporation shall pay to that person the full amount paid for the  3,975        

shares within seven days after that person delivers to the         3,976        

corporation the certificate for the shares and proof of payment    3,977        

of the amount paid for the shares.  If the amount paid for the     3,978        

shares included property other than cash, the corporation, at its  3,979        

option, may return the property to that person or may pay to that  3,980        

person cash in an amount equal to the fair market value of the     3,981        

property on the date of transfer or issuance of the shares, as     3,982        

determined in good faith by the corporation.  A shareholder who    3,983        

transfers shares to a person who takes delivery of the             3,984        

certificate for the shares other than by gift, bequest, or         3,985        

inheritance and without knowledge or notice of the close           3,986        

corporation agreement is liable to the corporation, upon the       3,987        

corporation's written demand made upon the shareholder within      3,988        

ninety days after the date on which the corporation made payment   3,989        

for the shares, for the full amount that the corporation paid for  3,990        

the shares.  Upon receiving payment in that amount from the        3,991        

shareholder, the corporation shall transfer the shares to the      3,992        

shareholder.                                                       3,993        

                                                          93     

                                                                 
      (4)  In the event of the invalidity of a close corporation   3,995        

agreement and unless otherwise provided in the close corporation   3,996        

agreement, any provision contained in the close corporation        3,997        

agreement that would not be invalid under any other section of     3,998        

this chapter or under other applicable law remains valid and       3,999        

binding on the parties to the close corporation agreement.         4,000        

      Any officer of the corporation who learns of the occurrence  4,002        

of any event causing the invalidity of the close corporation       4,003        

agreement shall immediately give written notice of the invalidity  4,004        

to all of the shareholders.                                        4,005        

      If a close corporation agreement set forth in the articles   4,007        

of the corporation is terminated or becomes invalid, the officers  4,008        

of the corporation shall promptly sign and file the certificate    4,009        

of amendment prescribed by section 1701.73 of the Revised Code,    4,010        

setting forth the reason for the termination or invalidity and     4,011        

deleting the close corporation agreement from the articles.  If    4,012        

the officers fail to execute and file the certificate within       4,013        

thirty days after the occurrence of the event giving rise to the   4,014        

termination or invalidity, the certificate may be signed and       4,015        

filed by any shareholder and shall set forth a statement that the  4,016        

person signing the certificate is a shareholder and is filing the  4,017        

certificate because of the failure of the officers to do so.       4,018        

      (J)  A close corporation agreement, in the sound discretion  4,020        

of a court exercising its equity powers, is enforceable by         4,021        

injunction, specific performance, or other relief that the court   4,022        

may determine to be fair and appropriate.                          4,023        

      (K)  This section shall not be construed as prohibiting any  4,025        

other lawful agreement among two or more shareholders.             4,026        

      (L)  No corporation with respect to which a close            4,028        

corporation agreement is in effect, shall issue shares in          4,029        

uncertificated form, and any resolution of the directors of such   4,030        

a corporation, providing for the issuance of shares in             4,031        

uncertificated form, shall be ineffective during any period in     4,032        

which a close corporation agreement is in effect.  The adoption    4,033        

                                                          94     

                                                                 
of a close corporation agreement shall act as a transfer           4,034        

instruction to the corporation to replace uncertificated           4,035        

securities with appropriate certificated securities in accordance  4,036        

with division (C) of section 1308.43 of the Revised Code.          4,037        

      (M)  If the annual meeting of the shareholders is dispensed  4,039        

with in accordance with a provision in the close corporation       4,040        

agreement authorized by division (C)(12) of this section, the      4,041        

annual financial statements required by section 1701.38 of the     4,042        

Revised Code shall be delivered to each shareholder on or before   4,043        

the last date upon which the annual meeting otherwise could have   4,044        

been held.                                                         4,045        

      (N)  The amendments to this section that are effective       4,047        

April 4, 1985, are remedial in nature and apply to all close       4,048        

corporation agreements created on or after November 17, 1981. The  4,050        

amendments to this section that are effective December 31, 1993,   4,051        

are remedial in nature and, except as those amendments otherwise   4,052        

provide, apply to all close corporation agreements created on or   4,053        

after November 17, 1981.                                                        

      Sec. 3901.51.  As used in sections 3901.51 to 3901.55 of     4,062        

the Revised Code:                                                  4,063        

      (A)  "Clearing corporation" has the same meaning as in       4,065        

division (C) of section 1308.01 of the Revised Code, except that   4,066        

with respect to securities issued by institutions organized or     4,067        

existing under the laws of any foreign country or securities used  4,068        

to meet the deposit requirements pursuant to the laws of a         4,069        

foreign country as a condition of doing business in that country,  4,070        

"clearing corporation" includes a corporation that is organized    4,071        

or existing under the laws of any foreign country and is legally   4,072        

qualified under those laws to effect transactions in securities    4,073        

by computerized book-entry.                                        4,074        

      (B)  "Direct participant" means a bank, trust company, or    4,076        

other entity that maintains an account in its name in a clearing   4,077        

corporation and through which an insurance company participates    4,078        

in a clearing corporation.                                         4,079        

                                                          95     

                                                                 
      (C)  "Federal reserve book-entry system" means the           4,081        

computerized systems sponsored by the United States department of  4,082        

the treasury and agencies and instrumentalities of the United      4,083        

States for holding and transferring securities of the United       4,084        

States government and agencies and instrumentalities in federal    4,085        

reserve banks through banks that are members of the federal        4,086        

reserve system or that otherwise have access to these              4,087        

computerized systems.                                              4,088        

      (D)  "Member bank" means a national or state bank or a       4,090        

trust company that is a member of the federal reserve system and   4,091        

through which an insurance company participates in the federal     4,092        

reserve book-entry system.                                         4,093        

      (E)  "Provisions of the insurance laws of this state" means  4,095        

provisions of Title XXXIX of the Revised Code related to the       4,096        

deposit of securities for the benefit and security of              4,097        

policyholders, and includes, but is not limited to, sections       4,098        

3901.18, 3903.73, 3905.24, 3905.25, 3905.41, 3907.07, 3909.03,     4,099        

3909.09, 3909.17, 3913.01, 3913.04, 3919.13, 3919.36, 3919.37,     4,100        

3919.41, 3925.07, 3927.02, 3927.06, 3929.01, 3929.07, 3929.08,     4,101        

3929.09, 3929.10, 3929.11, 3941.30, 3941.31, 3941.32, 3941.33,     4,102        

3941.34, 3941.42, 3953.06, 3953.11, and 3957.03 of the Revised     4,103        

Code.                                                                           

      (F)  "Securities" has the same meaning as in division        4,105        

(A)(3) of section 1308.01 of the Revised Code.                     4,106        

      Section 2.  That existing sections 1301.05, 1301.12,         4,108        

1303.02, 1304.01, 1304.02, 1305.10, 1305.13, 1308.03, 1308.04,     4,109        

1308.08, 1308.09, 1308.10, 1308.11, 1308.12, 1308.13, 1308.14,     4,110        

1308.15, 1308.16, 1308.17, 1308.22, 1308.31, 1308.37, 1308.38,     4,111        

1308.41, 1308.42, 1309.01, 1309.03, 1309.14, 1309.20, 1309.21,     4,112        

1309.22, 1309.23, 1309.24, 1309.25, 1309.28, 1309.31, 1701.24,     4,113        

1701.25, 1701.27, 1701.49, 1701.591, and 3901.51 and sections      4,114        

1308.01, 1308.02, 1308.05, 1308.06, 1308.07, 1308.18, 1308.19,     4,115        

1308.20, 1308.21, 1308.23, 1308.24, 1308.25, 1308.26, 1308.27,     4,116        

1308.28, 1308.32, 1308.33, 1308.34, 1308.35, 1308.36, 1308.39,     4,117        

                                                          96     

                                                                 
1308.40, 1308.43, and 1308.44 of the Revised Code are hereby       4,118        

repealed.                                                                       

      Section 3.  Sections 1 and 2 of this act shall take effect   4,120        

on January 1, 1998.                                                             

      Section 4.  (A)  Sections 1 and 2 of this act do not affect  4,122        

an action or proceeding commenced before this act takes effect.    4,123        

      (B)  If a security interest in a security is perfected at    4,125        

the date this act takes effect, and the action by which the        4,126        

security interest was perfected would suffice to perfect a         4,128        

security interest under this act, no further action is required    4,129        

to continue perfection.  If a security interest in a security is                

perfected at the date this act takes effect but the action by      4,130        

which the security interest was perfected would not suffice to     4,131        

perfect a security interest under this act, the security interest  4,132        

remains perfected for a period of four months after the effective  4,133        

date and continues perfected thereafter if appropriate action to   4,134        

perfect under this act is taken within that period.  If a          4,135        

security interest is perfected at the date this act takes effect                

and the security interest can be perfected by filing under this    4,136        

act, a financing statement signed by the secured party instead of  4,137        

the debtor may be filed within that period to continue perfection  4,138        

or thereafter to perfect.