As Reported by the Senate Finance and                1            

                Financial Institutions Committee                   2            

122nd General Assembly                                             5            

   Regular Session                             Sub. H. B. No. 170  6            

      1997-1998                                                    7            


 REPRESENTATIVES WOMER BENJAMIN-BATCHELDER-TIBERI-HARRIS-MYERS-    9            

  MASON-SCHULER-LEWIS-BRITTON-SALERNO-TAYLOR-REID-CATES-HAINES-    10           

  MOTTLEY-JONES-TERWILLEGER-MILLER-COLONNA-THOMPSON-CALLENDER-     11           

     GARCIA-GRENDELL-VERICH-HOUSEHOLDER-O'BRIEN-OPFER-LOGAN        12           


                                                                   14           

                           A   B I L L                                          

             To amend sections 1301.05, 1301.12, 1303.02,          16           

                1304.01, 1304.02, 1305.10, 1305.13, 1308.03,       17           

                1308.04, 1308.08, 1308.09, 1308.10, 1308.11,       18           

                1308.12, 1308.13, 1308.14, 1308.15, 1308.16,       19           

                1308.17, 1308.22, 1308.31, 1308.37, 1308.38,       20           

                1308.41, 1308.42, 1309.01, 1309.03, 1309.14,       21           

                1309.20, 1309.21, 1309.22, 1309.23, 1309.24,       22           

                1309.25, 1309.28, 1309.31, 1701.01, 1701.24,       23           

                1701.25, 1701.27, 1701.49, 1701.591, 1701.831,     24           

                1701.832, 1705.01, 1705.04, 1705.16, 1705.43,      25           

                1782.33, and 3901.51;  to enact new sections       26           

                1308.01, 1308.02, 1308.05, 1308.06, 1308.07,       27           

                1308.18, 1308.19, 1308.20, 1308.21, 1308.23,       29           

                1308.24, 1308.25,  1308.26, 1308.27, 1308.32,      30           

                1308.33, 1308.39, and 1308.40 and sections         31           

                1308.51, 1308.52, 1308.53, 1308.54, 1308.55,       32           

                1308.56, 1308.57, 1308.58, 1308.59, 1308.60,       33           

                1308.61, 1309.112, and 1309.113; and to repeal     34           

                sections 1308.01, 1308.02, 1308.05, 1308.06,       35           

                1308.07, 1308.18, 1308.19, 1308.20, 1308.21,       36           

                1308.23, 1308.24, 1308.25, 1308.26, 1308.27,       37           

                1308.28, 1308.32, 1308.33, 1308.34, 1308.35,       38           

                1308.36, 1308.39, 1308.40, 1308.43, and 1308.44    39           

                of the Revised Code to adopt the Revised Article   40           

                                                          2      

                                                                 
                8 of the Uniform Commercial Code--Investment       41           

                Securities, to adopt modifications to the General  42           

                Corporation Law regarding control share            43           

                acquisitions, and to make changes in certain                    

                organizational provisions of the Limited           44           

                Liability Companies Law and the Limited                         

                Partnerships Law.                                  45           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        47           

      Section 1.  That sections 1301.05, 1301.12, 1303.02,         49           

1304.01, 1304.02, 1305.10, 1305.13, 1308.03, 1308.04, 1308.08,     50           

1308.09, 1308.10, 1308.11, 1308.12, 1308.13, 1308.14, 1308.15,     51           

1308.16, 1308.17, 1308.22, 1308.31, 1308.37, 1308.38, 1308.41,     52           

1308.42, 1309.01, 1309.03, 1309.14, 1309.20, 1309.21, 1309.22,     53           

1309.23, 1309.24, 1309.25, 1309.28, 1309.31, 1701.01, 1701.24,     54           

1701.25, 1701.27, 1701.49, 1701.591, 1701.831, 1701.832, 1705.01,  55           

1705.04, 1705.16, 1705.43, 1782.33, and 3901.51 be amended and     56           

new sections 1308.01, 1308.02, 1308.05, 1308.06, 1308.07,          57           

1308.18, 1308.19, 1308.20, 1308.21, 1308.23, 1308.24, 1308.25,     58           

1308.26, 1308.27, 1308.32, 1308.33, 1308.39, and 1308.40 and       59           

sections 1308.51, 1308.52, 1308.53, 1308.54, 1308.55, 1308.56,     60           

1308.57, 1308.58, 1308.59, 1308.60, 1308.61, 1309.112, and                      

1309.113 of the Revised Code be enacted to read as follows:        61           

      Sec. 1301.05.  (A)  Except as otherwise provided in this     70           

section, when a transaction bears a reasonable relation to this    71           

state and also to another state or nation, the parties may agree   72           

that the law either of this state or of the other state or nation  73           

shall govern their rights and duties.  Failing such an agreement   74           

Chapters 1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309.,   76           

and 1310. of the Revised Code apply to transactions bearing an     77           

appropriate relation to this state.                                             

      (B)  Where one of the following provisions of Chapters       79           

1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309., and 1310.  81           

of the Revised Code specifies the applicable law, that provision   82           

                                                          3      

                                                                 
governs and a contrary agreement is effective only to the extent   83           

permitted by the law, including the conflict of laws rules, so     84           

specified:                                                                      

      (1)  Rights of creditors against sold goods, as provided in  86           

section 1302.43 of the Revised Code;                               87           

      (2)  Applicability of sections 1304.01 to 1304.40 of the     89           

Revised Code, as provided in section 1304.02 of the Revised Code;  90           

      (3)  Fund transfers under sections 1304.51 to 1304.85 of     92           

the Revised Code, as provided in section 1304.85 of the Revised    93           

Code;                                                              94           

      (4)  Applicability of sections 1308.01 to 1308.36 CHAPTER    97           

1308. of the Revised Code, as provided in section 1308.05 of the   98           

Revised Code;                                                                   

      (5)  Perfection provisions of section 1309.03 of the         100          

Revised Code;                                                      101          

      (6)  Applicability of sections 1310.01 to 1310.78 of the     103          

Revised Code, as provided in sections 1310.03 and 1310.04 of the   104          

Revised Code.                                                      105          

      Sec. 1301.12.  (A)  Except in the cases described in         114          

division (B) of this section a contract for the sale of personal   115          

property is not enforceable by way of action or defense beyond     116          

five thousand dollars in amount or value of remedy unless there    117          

is some writing which indicates that a contract for sale has been  118          

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

identifies the subject matter, and is signed by the party against  119          

whom enforcement is sought or by his THAT PARTY'S authorized       120          

agent.                                                                          

      (B)  Division (A) of this section does not apply to          122          

contracts for the sale of goods, section 1302.04 of the Revised    123          

Code, nor of securities, section 1308.30 1308.07 of the Revised    124          

Code, nor to security agreements, section 1309.14 of the Revised   125          

Code.                                                                           

      Sec. 1303.02.  (A)  This chapter applies to negotiable       134          

instruments.  It does not apply to money, to payment orders        135          

                                                          4      

                                                                 
governed by sections 1304.51 to 1304.85 of the Revised Code, or    136          

to securities governed by sections 1308.01 to 1308.44 CHAPTER      138          

1308. of the Revised Code.                                                      

      (B)  If there is a conflict between this chapter and either  140          

sections 1304.01 to 1304.40 or sections 1309.01 to 1309.50 of the  141          

Revised Code, the provisions of sections 1304.01 to 1304.40 or     142          

sections 1309.01 to 1309.50 of the Revised Code govern.            143          

      (C)  If any provision of this chapter is inconsistent with   145          

any regulation of the board of governors of the federal reserve    146          

system or any operating circular of the federal reserve banks,     147          

the regulation or the operating circular supersedes the provision  148          

of this chapter to the extent of the inconsistency.                149          

      Sec. 1304.01.  (A)  As used in sections 1304.01 to 1304.40   158          

of the Revised Code, unless the context requires otherwise:        159          

      (1)  "Account" means any deposit or credit account with a    161          

bank, including a demand, time, savings, passbook, share draft,    162          

or similar account, other than an account evidenced by a           163          

certificate of deposit.                                                         

      (2)  "Afternoon" means the period of day between noon and    165          

midnight.                                                          166          

      (3)  "Banking day" means the part of a day on which a bank   169          

is open to the public for carrying on substantially all of its     170          

banking functions.                                                              

      (4)  "Clearing house" means an association of banks or       172          

other payors regularly clearing items.                             173          

      (5)  "Customer" means a person having an account with a      175          

bank or for whom a bank has agreed to collect items, including a   176          

bank that maintains an account at another bank.                    177          

      (6)  "Documentary draft" means a draft to be presented for   179          

acceptance or payment if specified documents, certified            180          

securities or instructions for uncertificated securities AS        181          

DEFINED IN SECTION 1308.01 OF THE REVISED CODE, or other           182          

certificates, statements, or similar documents are to be received               

by the drawee or other payor before acceptance or payment of the   183          

                                                          5      

                                                                 
draft.                                                                          

      (7)  "Draft" means a draft as defined in section 1303.03 of  185          

the Revised Code or an item, other than an instrument, that is an  186          

order.                                                                          

      (8)  "Drawee" means a person ordered in a draft to make      188          

payment.                                                                        

      (9)  "Item" means an instrument or a promise or order to     190          

pay money handled by a bank for collection or payment.  "Item"     191          

does not include a payment order governed by sections 1304.51 to   192          

1304.85 of the Revised Code, a credit slip, or a debit card slip.  193          

      (10)  "Midnight deadline," with respect to a bank, is        195          

midnight on its next banking day following the banking day on      196          

which it recevies RECEIVES the relevant item or notice or from     197          

which the time for taking action commences to run, whichever is    200          

later.                                                                          

      (11)  "Settle" means to pay in cash, by clearing house       202          

settlement, in a charge or credit or by remittance, or otherwise   203          

as agreed.  A settlement may be either provisional or final.       204          

      (12)  "Suspends payments" with respect to a bank means that  206          

it has been closed by order of the supervisory authorities, that   207          

a public officer has been appointed to take it over, or that it    208          

ceases or refuses to make payments in the ordinary course of       209          

business.                                                          210          

      (B)  As used in sections 1304.01 to 1304.40 of the Revised   212          

Code:                                                                           

      (1)  "Bank" means a person engaged in the business of        214          

banking, including a savings bank, a savings and loan              215          

association, a credit union, or a trust company.                   216          

      (2)  "Depositary bank" means the first bank to take an item  219          

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

presented for immediate payment over the counter.                  220          

      (3)  "Payor bank" means a bank that is a drawee of a draft.  222          

      (4)  "Intermediary bank" means a bank to which an item is    225          

transferred in course of collection except the depositary or                    

                                                          6      

                                                                 
payor bank.                                                        226          

      (5)  "Collecting bank" means a bank handling an item for     229          

collection except the payor bank.                                               

      (6)  "Presenting bank" means a bank presenting an item       231          

except a payor bank.                                               232          

      (C)  As used in sections 1304.01 to 1304.40 of the Revised   235          

Code:                                                                           

      (1)  "Acceptance" and "certified check" have the same        237          

meanings as in section 1303.46 of the Revised Code.                238          

      (2)  "Alteration" has the same meaning as in section         240          

1303.50 of the Revised Code.                                       241          

      (3)  "Cashier's check," "certificate of deposit," "check,"   243          

"instrument," and "teller's check" have the same meanings as in    244          

section 1303.03 of the Revised Code.                               245          

      (4)  "Good faith," "order," "ordinary care," "promise," and  247          

"prove" have the same meanings as in section 1303.01 of the        248          

Revised Code.                                                                   

      (5)  "Holder in due course" has the same meaning as in       250          

section 1303.32 of the Revised Code.                               251          

      (6)  "Notice of dishonor" has the same meaning as in         253          

section 1303.63 of the Revised Code.                               254          

      (7)  "Person entitled to enforce" has the same meaning as    256          

in section 1303.31 of the Revised Code.                            257          

      (8)  "Presentment" has the same meaning as in section        259          

1303.61 of the Revised Code.                                       260          

      (9)  "Unauthorized signature" has the same meaning as in     262          

section 1303.43 of the Revised Code.                               263          

      (D)  The terms and principles of construction and            265          

interpretation in sections 1301.01 to 1301.14 of the Revised Code  266          

are applicable to sections 1304.01 to 1303.40 1304.40 of the       267          

Revised Code.                                                                   

      Sec. 1304.02.  (A)  To the extent that items within          276          

sections 1304.01 to 1304.40 of the Revised Code are also within    277          

the scope of Chapter 1303. and sections 1308.01 to 1308.36         278          

                                                          7      

                                                                 
CHAPTER 1308. of the Revised Code, they are subject to that        279          

chapter and those sections CHAPTERS.  In the event of conflict,    281          

the provisions of sections 1304.01 to 1304.40 of the Revised Code  282          

govern those of Chapter 1303., but the provisions of sections      283          

1308.01 to 1308.36 CHAPTER 1308. of the Revised Code govern those  284          

of sections 1304.01 to 1304.40 of the Revised Code.                285          

      (B)  The liability of a bank for action or non-action with   287          

respect to any item handled by it for purposes of presentment,     288          

payment, or collection is governed by the law of the place where   289          

the bank is located.  In the case of action or non-action by or    290          

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

governed by the law of the place where the branch or separate      291          

office is located.                                                 292          

      Sec. 1305.10.  (A)  Unless otherwise agreed, the             301          

beneficiary by transferring or presenting a documentary draft or   302          

demand for payment warrants to all interested parties that the     303          

necessary conditions of the credit have been complied with.  This  304          

is in addition to any warranties arising under Chapters 1303.,     305          

1304., and 1308. of the Revised Code.                                           

      (B)  Unless otherwise agreed, a negotiating, advising,       307          

confirming, collecting, or issuing bank presenting or              308          

transferring a draft or demand for payment under a credit          309          

warrants only the matters warranted by a collecting bank under                  

sections 1304.01 to 1304.40 of the Revised Code, and any such      310          

bank transferring a document warrants only the matters warranted   311          

by an A SECURITIES intermediary under sections 1307.01 to 1307.40  312          

and 1308.01 to 1308.36 CHAPTER 1308. of the Revised Code.          313          

      Sec. 1305.13.  (A)  An issuer must honor a draft or demand   322          

for payment that complies with the terms of the relevant credit    323          

regardless of whether the goods or documents conform to the        324          

underlying contract for sale or other contract between the         325          

customer and the beneficiary.  The issuer is not excused from      326          

honor of such a draft or demand by reason of an additional         327          

general term that all documents must be satisfactory to the        328          

                                                          8      

                                                                 
issuer, but an issuer may require that specified documents must    329          

be satisfactory to it.                                             330          

      (B)  Unless otherwise agreed when documents appear on their  332          

face to comply with the terms of a credit but a required document  333          

does not in fact conform to the warranties made on negotiation or  334          

transfer of a document of title, pursuant to section 1307.35 of    335          

the Revised Code, or of a certificated security pursuant to        336          

section 1308.21 1308.20 of the Revised Code, or is forged or       337          

fraudulent or there is fraud in the transaction:                   339          

      (1)  The issuer must honor the draft or demand for payment   341          

if honor is demanded by a negotiating bank or other holder of the  342          

draft or demand which has taken the draft or demand under the      343          

credit and under circumstances which would make it a holder in     344          

due course as provided in section 1303.32 of the Revised Code and  345          

in an appropriate case would make it a person to whom a document   346          

of title has been duly negotiated, as provided in section 1307.30  347          

of the Revised Code, or a bona fide PROTECTED purchaser of a       348          

certificated security, as provided in section 1308.17 of the       350          

Revised Code; and                                                               

      (2)  In all other cases as against its customer, an issuer   352          

acting in good faith may honor the draft or demand for payment     353          

despite notification from the customer of fraud, forgery, or       354          

other defect not apparent on the face of the documents but a       355          

court of appropriate jurisdiction may enjoin such honor.           356          

      (C)  Unless otherwise agreed, an issuer which has duly       358          

honored a draft or demand for payment is entitled to immediate     359          

reimbursement of any payment made under the credit and to be put   360          

in effectively available funds not later than the day before       361          

maturity of any acceptance made under the credit.                  362          

      (D)  When a credit provides for payment by the issuer on     364          

receipt of notice that the required documents are in the           365          

possession of a correspondent or other agent of the issuer:        366          

      (1)  Any payment made on receipt of such notice is           368          

conditional; and                                                   369          

                                                          9      

                                                                 
      (2)  The issuer may reject documents which do not comply     371          

with the credit if it does so within three banking days following  372          

its receipt of the documents; and                                  373          

      (3)  In the event of such rejection, the issuer is entitled  375          

by chargeback or otherwise to return of the payment made.          376          

      (E)  In the case covered by division (D) of this section,    378          

failure to reject documents within the time specified in division  379          

(D)(2) of this section constitutes acceptance of the documents     380          

and makes the payment final in favor of the beneficiary.           381          

      Sec. 1308.01.  (A)  IN THIS CHAPTER:                         383          

      (1)  "ADVERSE CLAIM" MEANS A CLAIM THAT A CLAIMANT HAS A     385          

PROPERTY INTEREST IN A FINANCIAL ASSET AND THAT IT IS A VIOLATION  386          

OF THE RIGHTS OF THE CLAIMANT FOR ANOTHER PERSON TO HOLD,          387          

TRANSFER, OR DEAL WITH THE FINANCIAL ASSET.                                     

      (2)  "BEARER FORM," AS APPLIED TO A CERTIFICATED SECURITY,   389          

MEANS A FORM IN WHICH THE SECURITY IS PAYABLE TO THE BEARER OF     390          

THE SECURITY CERTIFICATE ACCORDING TO ITS TERMS BUT NOT BY REASON  391          

OF AN INDORSEMENT.                                                              

      (3)  "BROKER" MEANS A PERSON DEFINED AS A BROKER OR DEALER   393          

UNDER THE FEDERAL SECURITIES LAWS, BUT WITHOUT EXCLUDING A BANK    394          

ACTING IN THAT CAPACITY.                                                        

      (4)  "CERTIFICATED SECURITY" MEANS A SECURITY THAT IS        396          

REPRESENTED BY A CERTIFICATE.                                      397          

      (5)  "CLEARING CORPORATION" MEANS:                           399          

      (a)  A PERSON THAT IS REGISTERED AS A "CLEARING AGENCY"      401          

UNDER THE FEDERAL SECURITIES LAWS;                                 402          

      (b)  A FEDERAL RESERVE BANK; OR                              404          

      (c)  ANY OTHER PERSON THAT PROVIDES CLEARANCE OR SETTLEMENT  406          

SERVICES WITH RESPECT TO FINANCIAL ASSETS THAT WOULD REQUIRE IT    407          

TO REGISTER AS A CLEARING AGENCY UNDER THE FEDERAL SECURITIES      408          

LAWS BUT FOR AN EXCLUSION OR EXEMPTION FROM THE REGISTRATION       409          

REQUIREMENT, IF ITS ACTIVITIES AS A CLEARING CORPORATION,          410          

INCLUDING PROMULGATION OF RULES, ARE SUBJECT TO REGULATION BY A                 

FEDERAL OR STATE GOVERNMENTAL AUTHORITY.                           411          

                                                          10     

                                                                 
      (6)  "COMMUNICATE" MEANS TO:                                 413          

      (a)  SEND A SIGNED WRITING; OR                               415          

      (b)  TRANSMIT INFORMATION BY ANY MECHANISM AGREED UPON BY    417          

THE PERSONS TRANSMITTING AND RECEIVING THE INFORMATION.            418          

      (7)  "ENTITLEMENT HOLDER" MEANS A PERSON IDENTIFIED IN THE   420          

RECORDS OF A SECURITIES INTERMEDIARY AS THE PERSON HAVING A        421          

SECURITY ENTITLEMENT AGAINST THE SECURITIES INTERMEDIARY.  IF A    422          

PERSON ACQUIRES A SECURITY ENTITLEMENT BY VIRTUE OF DIVISION       423          

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

IS THE ENTITLEMENT HOLDER.                                         424          

      (8)  "ENTITLEMENT ORDER" MEANS A NOTIFICATION COMMUNICATED   426          

TO A SECURITIES INTERMEDIARY DIRECTING TRANSFER OR REDEMPTION OF   427          

A FINANCIAL ASSET TO WHICH THE ENTITLEMENT HOLDER HAS A SECURITY   428          

ENTITLEMENT.                                                                    

      (9)  "FINANCIAL ASSET," EXCEPT AS OTHERWISE PROVIDED IN      430          

SECTION 1308.02 OF THE REVISED CODE, MEANS:                        431          

      (a)  A SECURITY;                                             433          

      (b)  AN OBLIGATION OF A PERSON OR A SHARE, PARTICIPATION,    435          

OR OTHER INTEREST IN A PERSON OR IN PROPERTY OR AN ENTERPRISE OF   436          

A PERSON, WHICH IS, OR IS OF A TYPE, DEALT IN OR TRADED ON         437          

FINANCIAL MARKETS, OR WHICH IS RECOGNIZED IN ANY AREA IN WHICH IT  438          

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

      (c)  ANY PROPERTY THAT IS HELD BY A SECURITIES INTERMEDIARY  440          

FOR ANOTHER PERSON IN A SECURITIES ACCOUNT IF THE SECURITIES       441          

INTERMEDIARY HAS EXPRESSLY AGREED WITH THE OTHER PERSON THAT THE   442          

PROPERTY IS TO BE TREATED AS A FINANCIAL ASSET UNDER THIS          443          

CHAPTER.                                                                        

      AS CONTEXT REQUIRES, THE TERM MEANS EITHER THE INTEREST      445          

ITSELF OR THE MEANS BY WHICH A PERSON'S CLAIM TO IT IS EVIDENCED,  446          

INCLUDING A CERTIFICATED OR UNCERTIFICATED SECURITY, A SECURITY    447          

CERTIFICATE, OR A SECURITY ENTITLEMENT.                                         

      (10)  "GOOD FAITH," FOR PURPOSES OF THE OBLIGATION OF GOOD   449          

FAITH IN THE PERFORMANCE OR ENFORCEMENT OF CONTRACTS OR DUTIES     450          

WITHIN THIS CHAPTER, MEANS HONESTY IN FACT AND THE OBSERVANCE OF   451          

                                                          11     

                                                                 
REASONABLE COMMERCIAL STANDARDS OF FAIR DEALING.                   452          

      (11)  "INDORSEMENT" MEANS A SIGNATURE THAT ALONE OR          454          

ACCOMPANIED BY OTHER WORDS IS MADE ON A SECURITY CERTIFICATE IN    455          

REGISTERED FORM OR ON A SEPARATE DOCUMENT FOR THE PURPOSE OF       456          

ASSIGNING, TRANSFERRING, OR REDEEMING THE SECURITY OR GRANTING A   457          

POWER TO ASSIGN, TRANSFER, OR REDEEM IT.                                        

      (12)  "INSTRUCTION" MEANS A NOTIFICATION COMMUNICATED TO     459          

THE ISSUER OF AN UNCERTIFICATED SECURITY WHICH DIRECTS THAT THE    460          

TRANSFER OF THE SECURITY BE REGISTERED OR THAT THE SECURITY BE     461          

REDEEMED.                                                                       

      (13)  "REGISTERED FORM," AS APPLIED TO A CERTIFICATED        463          

SECURITY, MEANS A FORM IN WHICH:                                   464          

      (a)  THE SECURITY CERTIFICATE SPECIFIES A PERSON ENTITLED    466          

TO THE SECURITY; AND                                               467          

      (b)  A TRANSFER OF THE SECURITY MAY BE REGISTERED UPON       469          

BOOKS MAINTAINED FOR THAT PURPOSE BY OR ON BEHALF OF THE ISSUER,   470          

OR THE SECURITY CERTIFICATE SO STATES.                             471          

      (14)  "SECURITIES INTERMEDIARY" MEANS:                       473          

      (a)  A CLEARING CORPORATION; OR                              475          

      (b)  A PERSON, INCLUDING A BANK OR BROKER, THAT IN THE       477          

ORDINARY COURSE OF ITS BUSINESS MAINTAINS SECURITIES ACCOUNTS FOR  478          

OTHERS AND IS ACTING IN THAT CAPACITY.                             479          

      (15)  "SECURITY," EXCEPT AS OTHERWISE PROVIDED IN SECTION    481          

1308.02 OF THE REVISED CODE, MEANS AN OBLIGATION OF AN ISSUER OR   482          

A SHARE, PARTICIPATION, OR OTHER INTEREST IN AN ISSUER OR IN       483          

PROPERTY OR AN ENTERPRISE OF AN ISSUER:                                         

      (a)  WHICH IS REPRESENTED BY A SECURITY CERTIFICATE IN       485          

BEARER OR REGISTERED FORM, OR THE TRANSFER OF WHICH MAY BE         486          

REGISTERED UPON BOOKS MAINTAINED FOR THAT PURPOSE BY OR ON BEHALF  487          

OF THE ISSUER;                                                                  

      (b)  WHICH IS ONE OF A CLASS OR SERIES OR BY ITS TERMS IS    489          

DIVISIBLE INTO A CLASS OR SERIES OF SHARES, PARTICIPATIONS,        490          

INTERESTS, OR OBLIGATIONS; AND                                     491          

      (c)  WHICH:                                                  493          

                                                          12     

                                                                 
      (i)  IS, OR IS OF A TYPE, DEALT IN OR TRADED ON SECURITIES   495          

EXCHANGES OR SECURITIES MARKETS; OR                                496          

      (ii)  IS A MEDIUM FOR INVESTMENT AND BY ITS TERMS EXPRESSLY  498          

PROVIDES THAT IT IS A SECURITY GOVERNED BY THIS CHAPTER.           499          

      (16)  "SECURITY CERTIFICATE" MEANS A CERTIFICATE             501          

REPRESENTING A SECURITY.                                                        

      (17)  "SECURITY ENTITLEMENT" MEANS THE RIGHTS AND PROPERTY   503          

INTEREST OF AN ENTITLEMENT HOLDER WITH RESPECT TO A FINANCIAL      504          

ASSET SPECIFIED IN SECTIONS 1308.51 TO 1308.61 OF THE REVISED      505          

CODE.                                                                           

      (18)  "UNCERTIFICATED SECURITY" MEANS A SECURITY THAT IS     507          

NOT REPRESENTED BY A CERTIFICATE.                                  508          

      (B)  OTHER DEFINITIONS APPLYING TO THIS CHAPTER AND THE      510          

SECTIONS IN WHICH THEY APPEAR ARE:                                 511          

      (1)  "APPROPRIATE PERSON," AS DEFINED IN SECTION 1308.23 OF  513          

THE REVISED CODE.                                                               

      (2)  "CONTROL," AS DEFINED IN SECTION 1308.24 OF THE         515          

REVISED CODE.                                                                   

      (3)  "DELIVERY," AS DEFINED IN SECTION 1308.27 OF THE        517          

REVISED CODE.                                                                   

      (4)  "INVESTMENT COMPANY SECURITY," AS DEFINED IN SECTION    519          

1308.02 OF THE REVISED CODE.                                                    

      (5)  "ISSUER," AS DEFINED IN SECTION 1308.08 OF THE REVISED  521          

CODE.                                                                           

      (6)  "OVERISSUE," AS DEFINED IN SECTION 1308.03 OF THE       523          

REVISED CODE.                                                                   

      (7)  "PROTECTED PURCHASER," AS DEFINED IN SECTION 1308.17    525          

OF THE REVISED CODE.                                                            

      (8)  "SECURITIES ACCOUNT," AS DEFINED IN SECTION 1308.51 OF  527          

THE REVISED CODE.                                                               

      (C)  IN ADDITION, CHAPTER 1301. OF THE REVISED CODE          529          

CONTAINS GENERAL DEFINITIONS AND PRINCIPLES OF CONSTRUCTION AND    530          

INTERPRETATION APPLICABLE THROUGHOUT THIS CHAPTER.                 531          

      (D)  THE CHARACTERIZATION OF A PERSON, BUSINESS, OR          533          

                                                          13     

                                                                 
TRANSACTION FOR PURPOSES OF THIS CHAPTER DOES NOT DETERMINE THE    534          

CHARACTERIZATION OF THE PERSON, BUSINESS, OR TRANSACTION FOR       535          

PURPOSES OF ANY OTHER LAW, REGULATION, OR RULE.                    536          

      Sec. 1308.02.  (A)  A SHARE OR SIMILAR EQUITY INTEREST       538          

ISSUED BY A CORPORATION, BUSINESS TRUST, JOINT STOCK COMPANY, OR   539          

SIMILAR ENTITY IS A SECURITY.                                      540          

      (B)  AN "INVESTMENT COMPANY SECURITY" IS A SECURITY.         542          

"INVESTMENT COMPANY SECURITY" MEANS A SHARE OR SIMILAR EQUITY      543          

INTEREST ISSUED BY AN ENTITY THAT IS REGISTERED AS AN INVESTMENT   544          

COMPANY UNDER THE FEDERAL INVESTMENT COMPANY LAWS, AN INTEREST IN  545          

A UNIT INVESTMENT TRUST THAT IS SO REGISTERED, OR A FACE-AMOUNT    546          

CERTIFICATE ISSUED BY A FACE-AMOUNT CERTIFICATE COMPANY THAT IS                 

SO REGISTERED.  INVESTMENT COMPANY SECURITY DOES NOT INCLUDE AN    547          

INSURANCE POLICY OR ENDOWMENT POLICY OR ANNUITY CONTRACT ISSUED    548          

BY AN INSURANCE COMPANY.                                                        

      (C)  AN INTEREST IN A PARTNERSHIP OR LIMITED LIABILITY       550          

COMPANY IS NOT A SECURITY UNLESS IT IS DEALT IN OR TRADED ON       551          

SECURITIES EXCHANGES OR IN SECURITIES MARKETS, ITS TERMS           552          

EXPRESSLY PROVIDE THAT IT IS A SECURITY GOVERNED BY THIS CHAPTER,  553          

OR IT IS AN INVESTMENT COMPANY SECURITY.  HOWEVER, AN INTEREST IN  554          

A PARTNERSHIP OR LIMITED LIABILITY COMPANY IS A FINANCIAL ASSET                 

IF IT IS HELD IN A SECURITIES ACCOUNT.                             555          

      (D)  A WRITING THAT IS A SECURITY CERTIFICATE IS GOVERNED    557          

BY THIS CHAPTER AND NOT BY CHAPTER 1303. OF THE REVISED CODE,      558          

EVEN THOUGH IT ALSO MEETS THE REQUIREMENTS OF THAT CHAPTER.        559          

HOWEVER, A NEGOTIABLE INSTRUMENT GOVERNED BY CHAPTER 1303. OF THE  560          

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

ACCOUNT.                                                           561          

      (E)  AN OPTION OR SIMILAR OBLIGATION ISSUED BY A CLEARING    563          

CORPORATION TO ITS PARTICIPANTS IS NOT A SECURITY, BUT IS A        564          

FINANCIAL ASSET.                                                                

      (F)  A COMMODITY CONTRACT, AS DEFINED IN SECTION 1309.112    566          

OF THE REVISED CODE, IS NOT A SECURITY OR A FINANCIAL ASSET.       567          

      Sec. 1308.03.  (A)  The EXCEPT AS OTHERWISE PROVIDED IN      576          

                                                          14     

                                                                 
DIVISIONS (A)(1) AND (2) OF THIS SECTION, THE provisions of        577          

sections 1308.01 to 1308.44 of the Revised Code THIS CHAPTER       578          

which validate a security or compel its issue or reissue do not    580          

apply to the extent that validation, issue, or reissue would       581          

result in overissue; but if.                                                    

      (1)  An IF AN identical security which does not constitute   583          

an overissue is reasonably available for purchase, the person      584          

entitled to issue or validation may compel the issuer to purchase  585          

the security for him and either to deliver a IT IF certificated    587          

security or to register the ITS transfer of an IF uncertificated   588          

security to him, against surrender of any certificated security    589          

he CERTIFICATE THE PERSON holds; or.                               590          

      (2)  A IF A security is not so available for purchase, the   593          

A person entitled to issue or validation may recover from the      594          

issuer the price he THE PERSON or the last purchaser for value     595          

paid for it with interest from the date of his THE PERSON'S        596          

demand.                                                            597          

      (B)  "Overissue" means the issue of securities in excess of  599          

the amount the issuer has corporate power to issue, BUT AN         600          

OVERISSUE DOES NOT OCCUR IF APPROPRIATE ACTION HAS CURED THE       601          

OVERISSUE.                                                                      

      Sec. 1308.04.  (A)  Certificated securities governed by      610          

sections 1308.01 to 1308.44 of the Revised Code, are negotiable    611          

instruments.                                                       612          

      (B)  Statements as provided in section 1308.44 of the        614          

Revised Code, notices, or the like, sent by the issuer of          615          

uncertificated securities and instructions as provided in section  616          

1308.23 of the Revised Code are neither negotiable instruments     617          

nor certificated securities.                                       618          

      (C)  In any THE FOLLOWING RULES APPLY IN AN action on a      620          

CERTIFICATED security AGAINST THE ISSUER:                          621          

      (1)(A)  Unless specifically denied in the pleadings, each    623          

signature on a certificated security, CERTIFICATE OR in a          624          

necessary indorsement, or an initial transaction statement, or on  625          

                                                          15     

                                                                 
an instruction, is admitted;                                       626          

      (2)(B)  If the effectiveness of a signature is put in        628          

issue, the burden of establishing it EFFECTIVENESS is on the       629          

party claiming under the signature, but the signature is presumed  630          

to be genuine or authorized;                                       631          

      (3)(C)  If signatures on a certificated security             633          

CERTIFICATE are admitted or established, production of the         634          

security CERTIFICATE entitles a holder to recover on it unless     636          

the defendant establishes a defense or a defect going to the       637          

validity of the security;                                                       

      (4)(D)  If signatures on an initial transaction statement    639          

are admitted or established, the facts stated in the statement     641          

are presumed to be true as of the time of its issuance; and        642          

      (5)  After it is shown that a defense or defect exists, the  644          

plaintiff has the burden of establishing that he THE PLAINTIFF or  646          

some person under whom he THE PLAINTIFF claims is a person                      

against whom the defense or defect is ineffective, as provided in  647          

section 1308.44 of the Revised Code CANNOT BE ASSERTED.            648          

      Sec. 1308.05.  (A)  THE LOCAL LAW OF THE ISSUER'S            650          

JURISDICTION, AS SPECIFIED IN DIVISION (D) OF THIS SECTION,        651          

GOVERNS:                                                                        

      (1)  THE VALIDITY OF A SECURITY;                             653          

      (2)  THE RIGHTS AND DUTIES OF THE ISSUER WITH RESPECT TO     655          

REGISTRATION OF TRANSFER;                                          656          

      (3)  THE EFFECTIVENESS OF REGISTRATION OF TRANSFER BY THE    658          

ISSUER;                                                                         

      (4)  WHETHER THE ISSUER OWES ANY DUTIES TO AN ADVERSE        660          

CLAIMANT TO A SECURITY; AND                                        661          

      (5)  WHETHER AN ADVERSE CLAIM CAN BE ASSERTED AGAINST A      663          

PERSON TO WHOM TRANSFER OF A CERTIFICATED OR UNCERTIFICATED        664          

SECURITY IS REGISTERED OR A PERSON WHO OBTAINS CONTROL OF AN       665          

UNCERTIFICATED SECURITY.                                                        

      (B)  THE LOCAL LAW OF THE SECURITIES INTERMEDIARY'S          667          

JURISDICTION, AS SPECIFIED IN DIVISION (E) OF THIS SECTION,        668          

                                                          16     

                                                                 
GOVERNS:                                                                        

      (1)  ACQUISITION OF A SECURITY ENTITLEMENT FROM THE          670          

SECURITIES INTERMEDIARY;                                           671          

      (2)  THE RIGHTS AND DUTIES OF THE SECURITIES INTERMEDIARY    673          

AND ENTITLEMENT HOLDER ARISING OUT OF A SECURITY ENTITLEMENT;      674          

      (3)  WHETHER THE SECURITIES INTERMEDIARY OWES ANY DUTIES TO  676          

AN ADVERSE CLAIMANT TO A SECURITY ENTITLEMENT; AND                 677          

      (4)  WHETHER AN ADVERSE CLAIM CAN BE ASSERTED AGAINST A      679          

PERSON WHO ACQUIRES A SECURITY ENTITLEMENT FROM THE SECURITIES     680          

INTERMEDIARY OR A PERSON WHO PURCHASES A SECURITY ENTITLEMENT OR   681          

INTEREST THEREIN FROM AN ENTITLEMENT HOLDER.                       682          

      (C)  THE LOCAL LAW OF THE JURISDICTION IN WHICH A SECURITY   684          

CERTIFICATE IS LOCATED AT THE TIME OF DELIVERY GOVERNS WHETHER AN  685          

ADVERSE CLAIM CAN BE ASSERTED AGAINST A PERSON TO WHOM THE         686          

SECURITY CERTIFICATE IS DELIVERED.                                 687          

      (D)  "ISSUER'S JURISDICTION" MEANS THE JURISDICTION UNDER    689          

WHICH THE ISSUER OF THE SECURITY IS ORGANIZED OR, IF PERMITTED BY  690          

THE LAW OF THAT JURISDICTION, THE LAW OF ANOTHER JURISDICTION      691          

SPECIFIED BY THE ISSUER.  AN ISSUER ORGANIZED UNDER THE LAW OF     692          

THIS STATE MAY SPECIFY THE LAW OF ANOTHER JURISDICTION AS THE LAW  693          

GOVERNING THE MATTERS SPECIFIED IN DIVISIONS (A)(2) TO (5) OF      694          

THIS SECTION.                                                                   

      (E)  THE FOLLOWING RULES DETERMINE A "SECURITIES             696          

INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS SECTION:         697          

      (1)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     699          

AND ITS ENTITLEMENT HOLDER SPECIFIES THAT IT IS GOVERNED BY THE    700          

LAW OF A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE         701          

SECURITIES INTERMEDIARY'S JURISDICTION.                                         

      (2)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     703          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY THE GOVERNING LAW AS   704          

PROVIDED IN DIVISION (E)(1) OF THIS SECTION, BUT EXPRESSLY         705          

SPECIFIES THAT THE SECURITIES ACCOUNT IS MAINTAINED AT AN OFFICE   706          

IN A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE SECURITIES  707          

INTERMEDIARY'S JURISDICTION.                                                    

                                                          17     

                                                                 
      (3)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     709          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY A JURISDICTION AS      710          

PROVIDED IN DIVISION (E)(1) OR (2) OF THIS SECTION, THE            711          

SECURITIES INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN      712          

WHICH IS LOCATED THE OFFICE IDENTIFIED IN AN ACCOUNT STATEMENT AS  713          

THE OFFICE SERVING THE ENTITLEMENT HOLDER'S ACCOUNT.                            

      (4)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     715          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY A JURISDICTION AS      716          

PROVIDED IN DIVISION (E)(1) OR (2) OF THIS SECTION AND AN ACCOUNT  717          

STATEMENT DOES NOT IDENTIFY AN OFFICE SERVING THE ENTITLEMENT      718          

HOLDER'S ACCOUNT AS PROVIDED IN DIVISION (E)(3) OF THIS SECTION,   719          

THE SECURITIES INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN  720          

WHICH IS LOCATED THE CHIEF EXECUTIVE OFFICE OF THE SECURITIES      721          

INTERMEDIARY.                                                                   

      (F)  A SECURITIES INTERMEDIARY'S JURISDICTION IS NOT         723          

DETERMINED BY THE PHYSICAL LOCATION OF CERTIFICATES REPRESENTING   724          

FINANCIAL ASSETS, OR BY THE JURISDICTION IN WHICH IS ORGANIZED     725          

THE ISSUER OF THE FINANCIAL ASSET WITH RESPECT TO WHICH AN         726          

ENTITLEMENT HOLDER HAS A SECURITY ENTITLEMENT, OR BY THE LOCATION  727          

OF FACILITIES FOR DATA PROCESSING OR OTHER RECORD KEEPING                       

CONCERNING THE ACCOUNT.                                            728          

      Sec. 1308.06.  A RULE ADOPTED BY A CLEARING CORPORATION      730          

GOVERNING RIGHTS AND OBLIGATIONS AMONG THE CLEARING CORPORATION    731          

AND ITS PARTICIPANTS IN THE CLEARING CORPORATION IS EFFECTIVE      732          

EVEN IF THE RULE CONFLICTS WITH THIS CHAPTER AND AFFECTS ANOTHER   733          

PARTY WHO DOES NOT CONSENT TO THE RULE.                                         

      Sec. 1308.07.  A CONTRACT OR MODIFICATION OF A CONTRACT FOR  735          

THE SALE OR PURCHASE OF A SECURITY IS ENFORCEABLE WHETHER OR NOT   736          

THERE IS A WRITING SIGNED OR RECORD AUTHENTICATED BY A PARTY       737          

AGAINST WHOM ENFORCEMENT IS SOUGHT, EVEN IF THE CONTRACT OR        738          

MODIFICATION IS NOT CAPABLE OF PERFORMANCE WITHIN ONE YEAR OF ITS  739          

MAKING.                                                                         

      Sec. 1308.08.  (A)  With respect to obligations on or        748          

defenses to a security, "issuer" includes a person who:            749          

                                                          18     

                                                                 
      (1)  Places or authorizes the placing of his ITS name on a   751          

certificated security CERTIFICATE, otherwise than as               752          

authenticating trustee, registrar, transfer agent, or the like,    754          

to evidence that it represents a share, participation, or other    755          

interest in his ITS property or in an enterprise, or to evidence   757          

his ITS duty to perform an obligation represented by the           758          

certificated security CERTIFICATE;                                 759          

      (2)  Creates shares, participations, or other interests in   761          

his ITS property or in an enterprise, or undertakes obligations,   763          

which shares, participations, interests, or obligations THAT are   764          

uncertificated securities;                                                      

      (3)  Directly or indirectly creates fractional interests in  766          

his ITS rights or property, which IF THE fractional interests are  768          

represented by certificated securities SECURITY CERTIFICATES; or   769          

      (4)  Becomes responsible for, or in place of, any other      771          

person described as an issuer in this section.                     772          

      (B)  With respect to obligations on or defenses to a         774          

security, a guarantor is an issuer to the extent of his ITS        775          

guaranty, whether or not his ITS obligation is noted on a          776          

certificated security or on statements of uncertificated           777          

securities sent pursuant to section 1308.44 of the Revised Code    779          

CERTIFICATE.                                                                    

      (C)  With respect to registration of transfer, pledge, or    781          

release as provided in sections 1308.37 to 1308.44 of the Revised  782          

Code, "issuer" means a person on whose behalf transfer books are   783          

maintained.                                                        784          

      Sec. 1308.09.  (A)  Even against a purchaser for value and   793          

without notice, the terms of a CERTIFICATED security include:      794          

      (1)  If the security is certificated, those TERMS stated on  796          

the security;                                                      797          

      (2)  If the security is uncertificated, those contained in   799          

the initial transaction statement sent to such purchaser or, if    800          

his interest is transferred to him other than by registration of   801          

transfer, pledge, or release, the initial transaction statement    803          

                                                          19     

                                                                 
sent to the registered owner or registered pledgee; and            804          

      (3)  Those CERTIFICATE AND TERMS made part of the security   806          

by reference, on the certificated security or in the initial       807          

transaction statement, CERTIFICATE to another instrument,          808          

indenture, or document or to a constitution, statute, ordinance,   810          

rule, regulation, order, or the like, to the extent that the       811          

terms referred to do not conflict with the terms stated on the     812          

certificated security or contained in the statement CERTIFICATE.   813          

A reference under division (A)(3) of this section does not of      815          

itself charge a purchaser for value with notice of a defect going  816          

to the validity of the security, even though IF the certificated   817          

security or statement CERTIFICATE expressly states that a person   818          

accepting it admits notice.                                                     

      THE TERMS OF AN UNCERTIFICATED SECURITY INCLUDE THOSE        820          

STATED IN ANY INSTRUMENT, INDENTURE, OR DOCUMENT, OR IN A          821          

CONSTITUTION, STATUTE, ORDINANCE, RULE, REGULATION, ORDER, OR THE  822          

LIKE, PURSUANT TO WHICH THE SECURITY IS ISSUED.                                 

      (B)(1) THE FOLLOWING RULES APPLY IF AN ISSUER ASSERTS THAT   824          

A SECURITY IS NOT VALID:                                           825          

      (1)  A certificated security in the hands of a purchaser     827          

for value or an uncertificated security as to which an initial     828          

transaction statement has been sent to a purchaser for value,      829          

other than a security ONE issued by a government or governmental   830          

SUBDIVISION, agency, or unit INSTRUMENTALITY, even though issued   832          

with a defect going to its validity, is valid with respect to the  833          

IN THE HANDS OF A purchaser if he is FOR VALUE AND without notice  834          

of the particular defect unless the defect involves a violation    835          

of A constitutional provisions, in which PROVISION.  IN THAT       837          

case, the security is valid with respect to IN THE HANDS OF a      838          

subsequent purchaser for value and without notice of the defect,   839          

OTHER THAN ONE WHO TAKES BY ORIGINAL ISSUE.                        840          

      (2)  The provisions of division (B)(1) of this section       842          

apply to an issuer that is a government or governmental            843          

SUBDIVISION, agency, or unit INSTRUMENTALITY only if either there  845          

                                                          20     

                                                                 
has been substantial compliance with the legal requirements        847          

governing the issue or the issuer has received a substantial       848          

consideration for the issue as a whole or for the particular       849          

security and a stated purpose of the issue is one for which the    850          

issuer has power to borrow money or issue the security.            851          

      (C)  Except as OTHERWISE provided in the case of certain     853          

unauthorized signatures on issue under section 1308.12 of the      855          

Revised Code, lack of genuineness of a certificated security or    856          

an initial transaction statement is a complete defense, even       857          

against a purchaser for value and without notice.                  858          

      (D)  All other defenses of the issuer of a certificated or   860          

uncertificated security, including nondelivery and conditional     861          

delivery of a certificated security, are ineffective against a     862          

purchaser for value who has taken THE CERTIFICATED SECURITY        863          

without notice of the particular defense.                          864          

      (E)  Nothing in this THIS section shall be construed to      866          

DOES NOT affect the right of a party to CANCEL a CONTRACT FOR A    868          

SECURITY "when, as and if issued" or a "when distributed"          869          

contract to cancel the contract in the event of a material change  870          

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

contract or in the plan or arrangement pursuant to which the       872          

security is to be issued or distributed.                                        

      (F)  IF A SECURITY IS HELD BY A SECURITIES INTERMEDIARY      874          

AGAINST WHOM AN ENTITLEMENT HOLDER HAS A SECURITY ENTITLEMENT      875          

WITH RESPECT TO THE SECURITY, THE ISSUER MAY NOT ASSERT ANY        876          

DEFENSE THAT THE ISSUER COULD NOT ASSERT IF THE ENTITLEMENT        877          

HOLDER HELD THE SECURITY DIRECTLY.                                              

      Sec. 1308.10.  (A)  After an act or event, OTHER THAN A      886          

CALL THAT HAS BEEN REVOKED, creating a right to immediate          888          

performance of the principal obligation represented by a           889          

certificated security or that sets a date on or after which the    890          

security is to be presented or surrendered for redemption or                    

exchange, a purchaser is charged with notice of any defect in its  891          

issue or defense of the issuer if THE ACT OR EVENT:                892          

                                                          21     

                                                                 
      (1)  The act or event is one requiring (A)  REQUIRES the     895          

payment of money, the delivery of A certificated securities                     

SECURITY, the registration of transfer of AN uncertificated        897          

securities SECURITY, or any of these THEM on presentation or       898          

surrender of the certificated security CERTIFICATE, the funds      899          

MONEY or securities are SECURITY IS available on the date set for  900          

payment or exchange, and he THE PURCHASER takes the security more  902          

than one year after that date; and OR                              903          

      (2)  The act or event is (B)  IS not covered by division     906          

(A)(1) of this section and he THE PURCHASER takes the security     907          

more than two years after the date set for surrender or            908          

presentation or the date on which performance became due.          909          

      (B)  A call that has been revoked is not within division     911          

(A) of this section.                                               912          

      Sec. 1308.11.  (A)  A restriction on transfer of a security  921          

imposed by the issuer, even though IF otherwise lawful, is         922          

ineffective against any A person without actual knowledge of it    923          

unless:                                                            924          

      (A)(1)  The security is certificated and the restriction is  926          

noted conspicuously thereon ON THE SECURITY CERTIFICATE; or        927          

      (B)(2)  The security is uncertificated and a notation of     930          

the restriction is contained in the initial transaction statement               

sent to the person or, if his interest is transferred to him       932          

other than by registration of transfer, pledge, or release, the    933          

initial transaction statement sent to the registered owner or the  935          

registered pledgee HAS BEEN NOTIFIED OF THE RESTRICTION.           936          

      (B)  A LIEN IN FAVOR OF AN ISSUER UPON A CERTIFICATED        938          

SECURITY IS VALID AGAINST A PURCHASER ONLY IF THE RIGHT OF THE     939          

ISSUER TO THE LIEN IS NOTED CONSPICUOUSLY ON THE SECURITY          940          

CERTIFICATE.                                                                    

      Sec. 1308.12.  An unauthorized signature placed on a         949          

certificated security prior to CERTIFICATE BEFORE or in the        951          

course of issue or placed on an initial transaction statement is                

ineffective, but the signature is effective in favor of a          953          

                                                          22     

                                                                 
purchaser for value of the certificated security or a purchaser    954          

for value of an uncertified security to whom the initial           955          

transaction statement has been sent, if the purchaser is without   956          

notice of the lack of authority and if the signing has been done   957          

by:                                                                958          

      (A)  An authenticating trustee, registrar, transfer agent,   960          

or other person entrusted by the issuer with the signing of the    961          

security, CERTIFICATE OR of similar securities SECURITY            963          

CERTIFICATES, or of initial transaction statements or the          964          

immediate preparation for signing of any of them; or               965          

      (B)  An employee of the issuer, or of any of the foregoing   967          

PERSONS LISTED IN DIVISION (A) OF THIS SECTION, entrusted with     968          

responsible handling of the security or initial transaction        969          

statement CERTIFICATE.                                             970          

      Sec. 1308.13.  (A)  If a certificated security CERTIFICATE   979          

contains the signatures necessary to its issue or transfer but is  981          

incomplete in any other respect:                                   982          

      (1)  Any person may complete it by filling in the blanks as  984          

authorized; and                                                    985          

      (2)  Even though IF the blanks are incorrectly filled in,    987          

the security as completed is enforceable by a purchaser who took   988          

it for value and without notice of the incorrectness.              989          

      (B)  A complete certificated security CERTIFICATE that has   991          

been improperly altered, even though IF fraudulently, remains      992          

enforceable, but only according to its original terms.             993          

      (C)  If an initial transaction statement contains the        995          

signatures necessary to its validity, but is incomplete in any     996          

other respect:                                                     997          

      (1)  Any person may complete it by filling in the blanks as  999          

authorized; and                                                    1,000        

      (2)  Even though the blanks are incorrectly filled in, the   1,002        

statement as completed is effective in favor of the person to      1,003        

whom it is sent if he purchased the security referred to therein   1,005        

for value and without notice of the incorrectness.                              

                                                          23     

                                                                 
      (D)  A complete initial transaction statement that has been  1,007        

improperly altered, even though fraudulently, is effective in      1,008        

favor of a purchaser to whom it has been sent, but only according  1,009        

to its original terms.                                             1,010        

      Sec. 1308.14.  (A)  Prior to BEFORE due presentment for      1,019        

registration of transfer of a certificated security in registered  1,020        

form OR OF AN INSTRUCTION REQUESTING REGISTRATION OF TRANSFER OF   1,021        

AN UNCERTIFICATED SECURITY, the issuer or indenture trustee may    1,022        

treat the registered owner as the person exclusively entitled to   1,023        

vote, to receive notifications, and otherwise to exercise all the  1,024        

rights and powers of an owner.                                     1,025        

      (B)  Subject to the provisions of divisions (C), (D), and    1,027        

(F) of this section, the issuer or indenture trustee may treat     1,028        

the registered owner of an uncertificated security as the person   1,029        

exclusively entitled to vote, to receive notifications, and        1,030        

otherwise to exercise all the rights and powers of an owner.       1,031        

      (C)  The registered owner of an uncertificated security      1,033        

that is subject to a registered pledge is not entitled to          1,034        

registration of transfer prior to the due presentment to the       1,035        

issuer of a release instruction.  The exercise of conversion       1,036        

rights with respect to a convertible uncertificated security is a  1,037        

transfer within the meaning of this section.                       1,038        

      (D)  Upon due presentment of a transfer instruction from     1,040        

the registered pledgee of an uncertificated security, the issuer   1,041        

shall:                                                             1,042        

      (1)  Register the transfer of the security to the new owner  1,044        

free of pledge, if the instruction specifies a new owner, who may  1,045        

be the registered pledgee, and does not specify a pledgee;         1,046        

      (2)  Register the transfer of the security to the new owner  1,048        

subject to the interest of the existing pledgee, if the            1,049        

instruction specifies a new owner and the existing pledgee; or     1,050        

      (3)  Register the release of the security from the existing  1,052        

pledge and register the pledge of the security to the other        1,053        

pledgee, if the instruction specifies the existing owner and       1,054        

                                                          24     

                                                                 
another pledgee.                                                   1,055        

      (E)  Continuity of perfection of a security interest is not  1,057        

broken by registration of transfer under division (D)(2) of this   1,058        

section or by registration of release and pledge under division    1,059        

(D)(3) of this section, if the security interest is assigned.      1,060        

      (F)  If an uncertificated security is subject to a           1,062        

registered pledge:                                                 1,063        

      (1)  Any uncertificated securities issued in exchange for    1,065        

or distributed with respect to the pledged security shall be       1,066        

registered subject to the pledge;                                  1,067        

      (2)  Any certificated securities issued in exchange for or   1,069        

distributed with respect to the pledged security shall be          1,070        

delivered to the registered pledgee; and                           1,071        

      (3)  Any money paid in exchange for or in redemption of      1,073        

part or all of the security shall be paid to the registered        1,074        

pledgee.                                                           1,075        

      (G)  Nothing in sections 1308.01 to 1308.44 of the Revised   1,077        

Code shall be construed to THIS CHAPTER DOES NOT affect the        1,078        

liability of the registered owner of a security for calls,         1,079        

assessments, or the like.                                          1,080        

      Sec. 1308.15.  (A)  A person placing his signature upon      1,089        

SIGNING a certificated security or an initial transaction          1,090        

statement CERTIFICATE as authenticating trustee, registrar,        1,091        

transfer agent, or the like, warrants to a purchaser for value of  1,092        

the certificated security or a purchaser for value of an           1,094        

uncertificated security to whom the initial transaction statement  1,095        

has been sent, if the purchaser is without notice of the           1,096        

particular defect, that:                                                        

      (1)  The certificated security or initial transaction        1,098        

CERTIFICATE is genuine;                                            1,099        

      (2)  His THE PERSON'S own participation in the issue or      1,101        

registration of the transfer, pledge, or release of the security   1,102        

is within his THE PERSON'S capacity and within the scope of the    1,103        

authority received by him THE PERSON from the issuer; and          1,104        

                                                          25     

                                                                 
      (3)  He THE PERSON has reasonable grounds to believe the     1,106        

CERTIFICATED security is in the form and within the amount the     1,107        

issuer is authorized to issue.                                     1,109        

      (B)  Unless otherwise agreed, a person by so placing his     1,111        

signature SIGNING UNDER DIVISION (A) OF THIS SECTION does not      1,113        

assume responsibility for the validity of the security in other                 

respects.                                                                       

      Sec. 1308.16.  (A)  Upon transfer EXCEPT AS OTHERWISE        1,122        

PROVIDED IN DIVISIONS (B) AND (C) OF THIS SECTION, UPON DELIVERY   1,123        

of a CERTIFICATED OR UNCERTIFICATED security to a purchaser as     1,124        

provided in section 1308.28 of the Revised Code, the purchaser     1,126        

acquires the ALL rights in the security which his THAT THE         1,127        

transferor had or had actual authority POWER to convey unless the  1,129        

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

of the Revised Code TRANSFER.                                      1,130        

      (B)  A transferee PURCHASER of a limited interest acquires   1,132        

rights only to the extent of the interest transferred PURCHASED.   1,134        

The creation or release of a security interest in a security is    1,135        

the transfer of a limited interest in that security.               1,136        

      (C)  A PURCHASER OF A CERTIFICATED SECURITY WHO AS A         1,138        

PREVIOUS HOLDER HAD NOTICE OF AN ADVERSE CLAIM DOES NOT IMPROVE    1,139        

ITS POSITION BY TAKING FROM A PROTECTED PURCHASER.                 1,140        

      Sec. 1308.17.  (A)  A "bona fide PROTECTED purchaser" is     1,149        

MEANS a purchaser for value in good faith and without OF A         1,150        

CERTIFICATED OR UNCERTIFICATED SECURITY, OR OF AN INTEREST         1,151        

THEREIN, WHO:                                                                   

      (1)  GIVES VALUE;                                            1,153        

      (2)  DOES NOT HAVE notice of any adverse claim:              1,155        

      (1)  Who takes delivery TO THE SECURITY; AND                 1,157        

      (3)  OBTAINS CONTROL of a THE certificated OR                1,159        

UNCERTIFICATED security in bearer form or in registered form,      1,160        

issued or indorsed to him or in blank;                             1,161        

      (2)  To whom the transfer, pledge, or release of an          1,163        

uncertificated security is registered on the books of the issuer;  1,164        

                                                          26     

                                                                 
or                                                                 1,165        

      (3)  To whom a security is transferred under the provisions  1,167        

of division (A)(3), (4)(a), or (7) of section 1308.28 of the       1,168        

Revised Code.                                                      1,169        

      (B)  "Adverse claim" includes a claim that a transfer was    1,171        

or would be wrongful or that a particular adverse person is the    1,172        

owner of or has an interest in the security.                       1,173        

      (C)  A bona fide purchaser in IN addition to acquiring the   1,175        

rights of a purchaser, as provided in section 1308.16 of the       1,176        

Revised Code, A PROTECTED PURCHASER also acquires his ITS          1,178        

interest in the security free of any adverse claim.                1,179        

      (D)  Notwithstanding division (A) of section 1308.16 of the  1,181        

Revised Code, the transferee of a particular certificated          1,182        

security who has been a party to any fraud or illegality           1,183        

affecting the security, or who as a prior holder of that           1,184        

certificated security had notice of an adverse claim, cannot       1,185        

improve his position by taking from a bona fide purchaser.         1,186        

      Sec. 1308.18.  (A)  A PERSON ACQUIRES A SECURITY OR AN       1,188        

INTEREST THEREIN, UNDER THIS CHAPTER, IF:                          1,189        

      (1)  THE PERSON IS A PURCHASER TO WHOM A SECURITY IS         1,191        

DELIVERED PURSUANT TO SECTION 1308.27 OF THE REVISED CODE; OR      1,192        

      (2)  THE PERSON ACQUIRES A SECURITY ENTITLEMENT TO THE       1,194        

SECURITY PURSUANT TO SECTION 1308.51 OF THE REVISED CODE.          1,195        

      (B)  A PERSON ACQUIRES A FINANCIAL ASSET, OTHER THAN A       1,197        

SECURITY, OR AN INTEREST THEREIN, UNDER THIS CHAPTER, IF THE       1,198        

PERSON ACQUIRES A SECURITY ENTITLEMENT TO THE FINANCIAL ASSET.     1,199        

      (C)  A PERSON WHO ACQUIRES A SECURITY ENTITLEMENT TO A       1,201        

SECURITY OR OTHER FINANCIAL ASSET HAS THE RIGHTS SPECIFIED IN      1,202        

SECTIONS 1308.51 TO 1308.61 OF THE REVISED CODE, BUT IS A          1,203        

PURCHASER OF ANY SECURITY, SECURITY ENTITLEMENT, OR OTHER                       

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY ONLY TO THE    1,204        

EXTENT PROVIDED IN SECTION 1308.53 OF THE REVISED CODE.            1,205        

      (D)  UNLESS THE CONTEXT SHOWS THAT A DIFFERENT MEANING IS    1,207        

INTENDED, A PERSON WHO IS REQUIRED BY OTHER LAW, REGULATION,       1,208        

                                                          27     

                                                                 
RULE, OR AGREEMENT TO TRANSFER, DELIVER, PRESENT, SURRENDER,       1,209        

EXCHANGE, OR OTHERWISE PUT IN THE POSSESSION OF ANOTHER PERSON A   1,210        

SECURITY OR FINANCIAL ASSET SATISFIES THAT REQUIREMENT BY CAUSING  1,211        

THE OTHER PERSON TO ACQUIRE AN INTEREST IN THE SECURITY OR         1,212        

FINANCIAL ASSET PURSUANT TO DIVISION (A) OR (B) OF THIS SECTION.   1,213        

      Sec. 1308.19.  (A)  A PERSON HAS NOTICE OF AN ADVERSE CLAIM  1,215        

IF:                                                                             

      (1)  THE PERSON KNOWS OF THE ADVERSE CLAIM;                  1,217        

      (2)  THE PERSON IS AWARE OF FACTS SUFFICIENT TO INDICATE     1,219        

THAT THERE IS A SIGNIFICANT PROBABILITY THAT THE ADVERSE CLAIM     1,220        

EXISTS AND DELIBERATELY AVOIDS INFORMATION THAT WOULD ESTABLISH    1,221        

THE EXISTENCE OF THE ADVERSE CLAIM; OR                                          

      (3)  THE PERSON HAS A DUTY, IMPOSED BY STATUTE OR RULE, TO   1,223        

INVESTIGATE WHETHER AN ADVERSE CLAIM EXISTS, AND THE               1,224        

INVESTIGATION SO REQUIRED WOULD ESTABLISH THE EXISTENCE OF THE     1,225        

ADVERSE CLAIM.                                                                  

      (B)  HAVING KNOWLEDGE THAT A FINANCIAL ASSET OR INTEREST     1,227        

THEREIN IS OR HAS BEEN TRANSFERRED BY A REPRESENTATIVE IMPOSES NO  1,228        

DUTY OF INQUIRY INTO THE RIGHTFULNESS OF A TRANSACTION AND IS NOT  1,229        

NOTICE OF AN ADVERSE CLAIM.  HOWEVER, A PERSON WHO KNOWS THAT A    1,230        

REPRESENTATIVE HAS TRANSFERRED A FINANCIAL ASSET OR INTEREST       1,231        

THEREIN IN A TRANSACTION THAT IS, OR WHOSE PROCEEDS ARE BEING      1,232        

USED, FOR THE INDIVIDUAL BENEFIT OF THE REPRESENTATIVE OR                       

OTHERWISE IN BREACH OF DUTY HAS NOTICE OF AN ADVERSE CLAIM.        1,233        

      (C)  AN ACT OR EVENT THAT CREATES A RIGHT TO IMMEDIATE       1,235        

PERFORMANCE OF THE PRINCIPAL OBLIGATION REPRESENTED BY A SECURITY  1,236        

CERTIFICATE OR SETS A DATE ON OR AFTER WHICH THE CERTIFICATE IS    1,237        

TO BE PRESENTED OR SURRENDERED FOR REDEMPTION OR EXCHANGE DOES     1,238        

NOT ITSELF CONSTITUTE NOTICE OF AN ADVERSE CLAIM EXCEPT IN THE     1,239        

CASE OF A TRANSFER MORE THAN:                                                   

      (1)  ONE YEAR AFTER A DATE SET FOR PRESENTMENT OR SURRENDER  1,241        

FOR REDEMPTION OR EXCHANGE; OR                                     1,242        

      (2)  SIX MONTHS AFTER A DATE SET FOR PAYMENT OF MONEY        1,244        

AGAINST PRESENTATION OR SURRENDER OF THE CERTIFICATE, IF MONEY     1,245        

                                                          28     

                                                                 
WAS AVAILABLE FOR PAYMENT ON THAT DATE.                            1,246        

      (D)  A PURCHASER OF A CERTIFICATED SECURITY HAS NOTICE OF    1,248        

AN ADVERSE CLAIM IF THE SECURITY CERTIFICATE:                      1,249        

      (1)  WHETHER IN BEARER OR REGISTERED FORM, HAS BEEN          1,251        

INDORSED "FOR COLLECTION" OR "FOR SURRENDER" OR FOR SOME OTHER     1,252        

PURPOSE NOT INVOLVING TRANSFER; OR                                 1,253        

      (2)  IS IN BEARER FORM AND HAS ON IT AN UNAMBIGUOUS          1,255        

STATEMENT THAT IT IS THE PROPERTY OF A PERSON OTHER THAN THE       1,256        

TRANSFEROR, BUT THE MERE WRITING OF A NAME ON THE CERTIFICATE IS   1,257        

NOT SUCH A STATEMENT.                                                           

      (E)  FILING OF A FINANCING STATEMENT UNDER CHAPTER 1309. OF  1,260        

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

ASSET.                                                                          

      Sec. 1308.20.  (A)  A PERSON WHO TRANSFERS A CERTIFICATED    1,262        

SECURITY TO A PURCHASER FOR VALUE WARRANTS TO THE PURCHASER, AND   1,263        

AN INDORSER, IF THE TRANSFER IS BY INDORSEMENT, WARRANTS TO ANY    1,264        

SUBSEQUENT PURCHASER, THAT:                                                     

      (1)  THE CERTIFICATE IS GENUINE AND HAS NOT BEEN MATERIALLY  1,266        

ALTERED;                                                                        

      (2)  THE TRANSFEROR OR INDORSER DOES NOT KNOW OF ANY FACT    1,268        

THAT MIGHT IMPAIR THE VALIDITY OF THE SECURITY;                    1,269        

      (3)  THERE IS NO ADVERSE CLAIM TO THE SECURITY;              1,271        

      (4)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,273        

TRANSFER;                                                                       

      (5)  IF THE TRANSFER IS BY INDORSEMENT, THE INDORSEMENT IS   1,275        

MADE BY AN APPROPRIATE PERSON, OR IF THE INDORSEMENT IS BY AN      1,276        

AGENT, THE AGENT HAS ACTUAL AUTHORITY TO ACT ON BEHALF OF THE      1,277        

APPROPRIATE PERSON; AND                                                         

      (6)  THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.       1,279        

      (B)  A PERSON WHO ORIGINATES AN INSTRUCTION FOR              1,281        

REGISTRATION OF TRANSFER OF AN UNCERTIFICATED SECURITY TO A        1,282        

PURCHASER FOR VALUE WARRANTS TO THE PURCHASER THAT:                1,283        

      (1)  THE INSTRUCTION IS MADE BY AN APPROPRIATE PERSON, OR    1,285        

IF THE INSTRUCTION IS BY AN AGENT, THE AGENT HAS ACTUAL AUTHORITY  1,286        

                                                          29     

                                                                 
TO ACT ON BEHALF OF THE APPROPRIATE PERSON;                        1,287        

      (2)  THE SECURITY IS VALID;                                  1,289        

      (3)  THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND          1,291        

      (4)  AT THE TIME THE INSTRUCTION IS PRESENTED TO THE         1,293        

ISSUER:                                                                         

      (a)  THE PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF   1,295        

TRANSFER;                                                          1,296        

      (b)  THE TRANSFER WILL BE REGISTERED BY THE ISSUER FREE      1,298        

FROM ALL LIENS, SECURITY INTERESTS, RESTRICTIONS, AND CLAIMS       1,299        

OTHER THAN THOSE SPECIFIED IN THE INSTRUCTION;                     1,300        

      (c)  THE TRANSFER WILL NOT VIOLATE ANY RESTRICTION ON        1,302        

TRANSFER; AND                                                      1,303        

      (d)  THE REQUESTED TRANSFER WILL OTHERWISE BE EFFECTIVE AND  1,305        

RIGHTFUL.                                                          1,306        

      (C)  A PERSON WHO TRANSFERS AN UNCERTIFICATED SECURITY TO A  1,308        

PURCHASER FOR VALUE AND DOES NOT ORIGINATE AN INSTRUCTION IN       1,309        

CONNECTION WITH THE TRANSFER WARRANTS THAT:                        1,310        

      (1)  THE UNCERTIFICATED SECURITY IS VALID;                   1,312        

      (2)  THERE IS NO ADVERSE CLAIM TO THE SECURITY;              1,314        

      (3)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,316        

TRANSFER; AND                                                                   

      (4)  THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.       1,318        

      (D)  A PERSON WHO INDORSES A SECURITY CERTIFICATE WARRANTS   1,320        

TO THE ISSUER THAT:                                                1,321        

      (1)  THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND          1,323        

      (2)  THE INDORSEMENT IS EFFECTIVE.                           1,325        

      (E)  A PERSON WHO ORIGINATES AN INSTRUCTION FOR              1,327        

REGISTRATION OF TRANSFER OF AN UNCERTIFICATED SECURITY WARRANTS    1,328        

TO THE ISSUER THAT:                                                             

      (1)  THE INSTRUCTION IS EFFECTIVE; AND                       1,330        

      (2)  AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER  1,332        

THE PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF TRANSFER.    1,333        

      (F)  A PERSON WHO PRESENTS A CERTIFICATED SECURITY FOR       1,335        

REGISTRATION OF TRANSFER OR FOR PAYMENT OR EXCHANGE WARRANTS TO    1,336        

                                                          30     

                                                                 
THE ISSUER THAT THE PERSON IS ENTITLED TO THE REGISTRATION,        1,337        

PAYMENT, OR EXCHANGE, BUT A PURCHASER FOR VALUE AND WITHOUT        1,338        

NOTICE OF ADVERSE CLAIMS TO WHOM TRANSFER IS REGISTERED WARRANTS   1,339        

ONLY THAT THE PERSON HAS NO KNOWLEDGE OF ANY UNAUTHORIZED                       

SIGNATURE IN A NECESSARY INDORSEMENT.                              1,340        

      (G)  IF A PERSON ACTS AS AGENT OF ANOTHER IN DELIVERING A    1,342        

CERTIFICATED SECURITY TO A PURCHASER, THE IDENTITY OF THE          1,343        

PRINCIPAL WAS KNOWN TO THE PERSON TO WHOM THE CERTIFICATE WAS      1,344        

DELIVERED, AND THE CERTIFICATE DELIVERED BY THE AGENT WAS          1,345        

RECEIVED BY THE AGENT FROM THE PRINCIPAL OR RECEIVED BY THE AGENT  1,346        

FROM ANOTHER PERSON AT THE DIRECTION OF THE PRINCIPAL, THE PERSON  1,347        

DELIVERING THE SECURITY CERTIFICATE WARRANTS ONLY THAT THE                      

DELIVERING PERSON HAS AUTHORITY TO ACT FOR THE PRINCIPAL AND DOES  1,348        

NOT KNOW OF ANY ADVERSE CLAIM TO THE CERTIFICATED SECURITY.        1,349        

      (H)  A SECURED PARTY WHO REDELIVERS A SECURITY CERTIFICATE   1,351        

RECEIVED, OR AFTER PAYMENT AND ON ORDER OF THE DEBTOR DELIVERS     1,352        

THE SECURITY CERTIFICATE TO ANOTHER PERSON, MAKES ONLY THE         1,353        

WARRANTIES OF AN AGENT UNDER DIVISION (G) OF THIS SECTION.         1,354        

      (I)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (G) OF THIS    1,356        

SECTION, A BROKER ACTING FOR A CUSTOMER MAKES TO THE ISSUER AND A  1,357        

PURCHASER THE WARRANTIES PROVIDED IN DIVISIONS (A) TO (F) OF THIS  1,358        

SECTION.  A BROKER THAT DELIVERS A SECURITY CERTIFICATE TO ITS     1,359        

CUSTOMER, OR CAUSES ITS CUSTOMER TO BE REGISTERED AS THE OWNER OF  1,360        

AN UNCERTIFICATED SECURITY, MAKES TO THE CUSTOMER THE WARRANTIES   1,361        

PROVIDED IN DIVISION (A) OR (B) OF THIS SECTION, AND HAS THE       1,362        

RIGHTS AND PRIVILEGES OF A PURCHASER UNDER THIS SECTION.  THE      1,363        

WARRANTIES OF AND IN FAVOR OF THE BROKER ACTING AS AN AGENT ARE    1,364        

IN ADDITION TO APPLICABLE WARRANTIES GIVEN BY AND IN FAVOR OF THE  1,365        

CUSTOMER.                                                                       

      Sec. 1308.21.  (A)  A PERSON WHO ORIGINATES AN ENTITLEMENT   1,367        

ORDER TO A SECURITIES INTERMEDIARY WARRANTS TO THE SECURITIES      1,368        

INTERMEDIARY THAT:                                                              

      (1)  THE ENTITLEMENT ORDER IS MADE BY AN APPROPRIATE         1,370        

PERSON, OR IF THE ENTITLEMENT ORDER IS BY AN AGENT, THE AGENT HAS  1,371        

                                                          31     

                                                                 
ACTUAL AUTHORITY TO ACT ON BEHALF OF THE APPROPRIATE PERSON; AND   1,372        

      (2)  THERE IS NO ADVERSE CLAIM TO THE SECURITY ENTITLEMENT.  1,374        

      (B)  A PERSON WHO DELIVERS A SECURITY CERTIFICATE TO A       1,376        

SECURITIES INTERMEDIARY FOR CREDIT TO A SECURITIES ACCOUNT OR      1,377        

ORIGINATES AN INSTRUCTION WITH RESPECT TO AN UNCERTIFICATED        1,378        

SECURITY DIRECTING THAT THE UNCERTIFICATED SECURITY BE CREDITED    1,379        

TO A SECURITIES ACCOUNT MAKES TO THE SECURITIES INTERMEDIARY THE   1,380        

WARRANTIES SPECIFIED IN DIVISION (A) OR (B) OF SECTION 1308.20 OF  1,381        

THE REVISED CODE.                                                               

      (C)  IF A SECURITIES INTERMEDIARY DELIVERS A SECURITY        1,383        

CERTIFICATE TO ITS ENTITLEMENT HOLDER OR CAUSES ITS ENTITLEMENT    1,384        

HOLDER TO BE REGISTERED AS THE OWNER OF AN UNCERTIFICATED          1,385        

SECURITY, THE SECURITIES INTERMEDIARY MAKES TO THE ENTITLEMENT     1,386        

HOLDER THE WARRANTIES SPECIFIED IN DIVISION (A) OR (B) OF SECTION  1,387        

1308.20 OF THE REVISED CODE.                                                    

      Sec. 1308.22.  (A)  AN INDORSEMENT MAY BE IN BLANK OR        1,396        

SPECIAL.  AN INDORSEMENT IN BLANK INCLUDES AN INDORSEMENT TO       1,398        

BEARER.  A SPECIAL INDORSEMENT SPECIFIES TO WHOM A SECURITY IS TO  1,399        

BE TRANSFERRED OR WHO HAS POWER TO TRANSFER IT.  A HOLDER MAY      1,401        

CONVERT A BLANK INDORSEMENT TO A SPECIAL INDORSEMENT.                           

      (B)  AN INDORSEMENT PURPORTING TO BE ONLY OF PART OF A       1,403        

SECURITY CERTIFICATE REPRESENTING UNITS INTENDED BY THE ISSUER TO  1,404        

BE SEPARATELY TRANSFERABLE IS EFFECTIVE TO THE EXTENT OF THE       1,405        

INDORSEMENT.                                                                    

      (C)  AN INDORSEMENT, WHETHER SPECIAL OR IN BLANK, DOES NOT   1,407        

CONSTITUTE A TRANSFER UNTIL DELIVERY OF THE CERTIFICATE ON WHICH   1,408        

IT APPEARS OR, IF THE INDORSEMENT IS ON A SEPARATE DOCUMENT,       1,410        

UNTIL DELIVERY OF BOTH THE DOCUMENT AND THE CERTIFICATE.           1,411        

      (D)  If a certificated security CERTIFICATE in registered    1,414        

form has been delivered to a purchaser without a necessary         1,415        

indorsement he, THE PURCHASER may become a bona fide PROTECTED     1,416        

purchaser only as of the time WHEN the indorsement is supplied;    1,417        

but.  HOWEVER, against the A transferor, the A transfer is         1,419        

complete upon delivery and the purchaser has a specifically        1,420        

                                                          32     

                                                                 
enforceable right to have any necessary indorsement supplied.      1,421        

      (E)  AN INDORSEMENT OF A SECURITY CERTIFICATE IN BEARER      1,423        

FORM MAY GIVE NOTICE OF AN ADVERSE CLAIM TO THE CERTIFICATE, BUT   1,424        

IT DOES NOT OTHERWISE AFFECT A RIGHT TO REGISTRATION THAT THE      1,425        

HOLDER POSSESSES.                                                               

      (F)  UNLESS OTHERWISE AGREED, A PERSON MAKING AN             1,427        

INDORSEMENT ASSUMES ONLY THE OBLIGATIONS PROVIDED IN SECTION       1,428        

1308.20 OF THE REVISED CODE AND NOT AN OBLIGATION THAT THE         1,429        

SECURITY WILL BE HONORED BY THE ISSUER.                                         

      Sec. 1308.23.  (A)  "APPROPRIATE PERSON" MEANS:              1,431        

      (1)  WITH RESPECT TO AN INDORSEMENT, THE PERSON SPECIFIED    1,433        

BY A SECURITY CERTIFICATE OR BY AN EFFECTIVE SPECIAL INDORSEMENT   1,434        

TO BE ENTITLED TO THE SECURITY;                                    1,435        

      (2)  WITH RESPECT TO AN INSTRUCTION, THE REGISTERED OWNER    1,437        

OF AN UNCERTIFICATED SECURITY;                                     1,438        

      (3)  WITH RESPECT TO AN ENTITLEMENT ORDER, THE ENTITLEMENT   1,440        

HOLDER;                                                                         

      (4)  IF THE PERSON DESIGNATED IN DIVISION (A)(1), (2), OR    1,442        

(3) OF THIS SECTION IS DECEASED, THE DESIGNATED PERSON'S           1,443        

SUCCESSOR TAKING UNDER OTHER LAW OR THE DESIGNATED PERSON'S        1,444        

PERSONAL REPRESENTATIVE ACTING FOR THE ESTATE OF THE DECEDENT; OR  1,445        

      (5)  IF THE PERSON DESIGNATED IN DIVISION (A)(1), (2), OR    1,447        

(3) OF THIS SECTION LACKS CAPACITY, THE DESIGNATED PERSON'S        1,448        

GUARDIAN, CONSERVATOR, OR OTHER SIMILAR REPRESENTATIVE WHO HAS     1,449        

POWER UNDER OTHER LAW TO TRANSFER THE SECURITY OR FINANCIAL        1,450        

ASSET.                                                                          

      (B)  AN INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER IS    1,452        

EFFECTIVE IF:                                                      1,453        

      (1)  IT IS MADE BY THE APPROPRIATE PERSON;                   1,455        

      (2)  IT IS MADE BY A PERSON WHO HAS POWER UNDER THE LAW OF   1,457        

AGENCY TO TRANSFER THE SECURITY OR FINANCIAL ASSET ON BEHALF OF    1,458        

THE APPROPRIATE PERSON, INCLUDING, IN THE CASE OF AN INSTRUCTION   1,459        

OR ENTITLEMENT ORDER, A PERSON WHO HAS CONTROL UNDER DIVISION      1,460        

(C)(2) OR (D)(2) OF SECTION 1308.24 OF THE REVISED CODE; OR        1,461        

                                                          33     

                                                                 
      (3)  THE APPROPRIATE PERSON HAS RATIFIED IT OR IS OTHERWISE  1,463        

PRECLUDED FROM ASSERTING ITS INEFFECTIVENESS.                      1,464        

      (C)  AN INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER MADE  1,466        

BY A REPRESENTATIVE IS EFFECTIVE EVEN IF:                          1,467        

      (1)  THE REPRESENTATIVE HAS FAILED TO COMPLY WITH A          1,469        

CONTROLLING INSTRUMENT OR WITH THE LAW OF THE STATE HAVING         1,470        

JURISDICTION OF THE REPRESENTATIVE RELATIONSHIP, INCLUDING ANY     1,471        

LAW REQUIRING THE REPRESENTATIVE TO OBTAIN COURT APPROVAL OF THE   1,472        

TRANSACTION; OR                                                                 

      (2)  THE REPRESENTATIVE'S ACTION IN MAKING THE INDORSEMENT,  1,474        

INSTRUCTION, OR ENTITLEMENT ORDER OR USING THE PROCEEDS OF THE     1,475        

TRANSACTION IS OTHERWISE A BREACH OF DUTY.                         1,476        

      (D)  IF A SECURITY IS REGISTERED IN THE NAME OF OR           1,478        

SPECIALLY INDORSED TO A PERSON DESCRIBED AS A REPRESENTATIVE, OR   1,479        

IF A SECURITIES ACCOUNT IS MAINTAINED IN THE NAME OF A PERSON      1,480        

DESCRIBED AS A REPRESENTATIVE, AN INDORSEMENT, INSTRUCTION, OR     1,481        

ENTITLEMENT ORDER MADE BY THE PERSON IS EFFECTIVE EVEN THOUGH THE  1,482        

PERSON IS NO LONGER SERVING IN THE DESCRIBED CAPACITY.                          

      (E)  EFFECTIVENESS OF AN INDORSEMENT, INSTRUCTION, OR        1,484        

ENTITLEMENT ORDER IS DETERMINED AS OF THE DATE THE INDORSEMENT,    1,485        

INSTRUCTION, OR ENTITLEMENT ORDER IS MADE, AND AN INDORSEMENT,     1,486        

INSTRUCTION, OR ENTITLEMENT ORDER DOES NOT BECOME INEFFECTIVE BY   1,487        

REASON OF ANY LATER CHANGE OF CIRCUMSTANCES.                       1,488        

      Sec. 1308.24.  (A)  A PURCHASER HAS "CONTROL" OF A           1,490        

CERTIFICATED SECURITY IN BEARER FORM IF THE CERTIFICATED SECURITY  1,491        

IS DELIVERED TO THE PURCHASER.                                     1,492        

      (B)  A PURCHASER HAS "CONTROL" OF A CERTIFICATED SECURITY    1,494        

IN REGISTERED FORM IF THE CERTIFICATED SECURITY IS DELIVERED TO    1,495        

THE PURCHASER, AND:                                                1,496        

      (1)  THE CERTIFICATE IS INDORSED TO THE PURCHASER OR IN      1,498        

BLANK BY AN EFFECTIVE INDORSEMENT; OR                              1,499        

      (2)  THE CERTIFICATE IS REGISTERED IN THE NAME OF THE        1,501        

PURCHASER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER BY THE  1,502        

ISSUER.                                                                         

                                                          34     

                                                                 
      (C)  A PURCHASER HAS "CONTROL" OF AN UNCERTIFICATED          1,504        

SECURITY IF:                                                                    

      (1)  THE UNCERTIFICATED SECURITY IS DELIVERED TO THE         1,506        

PURCHASER; OR                                                                   

      (2)  THE ISSUER HAS AGREED THAT IT WILL COMPLY WITH          1,508        

INSTRUCTIONS ORIGINATED BY THE PURCHASER WITHOUT FURTHER CONSENT   1,509        

BY THE REGISTERED OWNER.                                                        

      (D)  A PURCHASER HAS "CONTROL" OF A SECURITY ENTITLEMENT     1,511        

IF:                                                                             

      (1)  THE PURCHASER BECOMES THE ENTITLEMENT HOLDER; OR        1,513        

      (2)  THE SECURITIES INTERMEDIARY HAS AGREED THAT IT WILL     1,515        

COMPLY WITH ENTITLEMENT ORDERS ORIGINATED BY THE PURCHASER         1,516        

WITHOUT FURTHER CONSENT BY THE ENTITLEMENT HOLDER.                 1,517        

      (E)  IF AN INTEREST IN A SECURITY ENTITLEMENT IS GRANTED BY  1,519        

THE ENTITLEMENT HOLDER TO THE ENTITLEMENT HOLDER'S OWN SECURITIES  1,520        

INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS CONTROL.             1,521        

      (F)  A PURCHASER WHO HAS SATISFIED THE REQUIREMENTS OF       1,523        

DIVISION (C)(2) OR (D)(2) OF THIS SECTION HAS CONTROL EVEN IF THE  1,524        

REGISTERED OWNER IN THE CASE OF DIVISION (C)(2) OF THIS SECTION    1,525        

OR THE ENTITLEMENT HOLDER IN THE CASE OF DIVISION (D)(2) OF THIS   1,526        

SECTION RETAINS THE RIGHT TO MAKE SUBSTITUTIONS FOR THE            1,527        

UNCERTIFICATED SECURITY OR SECURITY ENTITLEMENT, TO ORIGINATE      1,528        

INSTRUCTIONS OR ENTITLEMENT ORDERS TO THE ISSUER OR SECURITIES     1,529        

INTERMEDIARY, OR OTHERWISE TO DEAL WITH THE UNCERTIFICATED         1,530        

SECURITY OR SECURITY ENTITLEMENT.                                  1,531        

      (G)  AN ISSUER OR A SECURITIES INTERMEDIARY MAY NOT ENTER    1,533        

INTO AN AGREEMENT OF THE KIND DESCRIBED IN DIVISION (C)(2) OR      1,534        

(D)(2) OF THIS SECTION WITHOUT THE CONSENT OF THE REGISTERED       1,535        

OWNER OR ENTITLEMENT HOLDER, BUT AN ISSUER OR A SECURITIES         1,536        

INTERMEDIARY IS NOT REQUIRED TO ENTER INTO SUCH AN AGREEMENT EVEN  1,537        

THOUGH THE REGISTERED OWNER OR ENTITLEMENT HOLDER SO DIRECTS.  AN  1,538        

ISSUER OR SECURITIES INTERMEDIARY THAT HAS ENTERED INTO SUCH AN    1,539        

AGREEMENT IS NOT REQUIRED TO CONFIRM THE EXISTENCE OF THE                       

AGREEMENT TO ANOTHER PARTY UNLESS REQUESTED TO DO SO BY THE        1,540        

                                                          35     

                                                                 
REGISTERED OWNER OR ENTITLEMENT HOLDER.                            1,541        

      Sec. 1308.25.  (A)  IF AN INSTRUCTION HAS BEEN ORIGINATED    1,543        

BY AN APPROPRIATE PERSON BUT IS INCOMPLETE IN ANY OTHER RESPECT,   1,544        

ANY PERSON MAY COMPLETE IT AS AUTHORIZED AND THE ISSUER MAY RELY   1,545        

ON IT AS COMPLETED, EVEN THOUGH IT HAS BEEN COMPLETED              1,546        

INCORRECTLY.                                                                    

      (B)  UNLESS OTHERWISE AGREED, A PERSON INITIATING AN         1,548        

INSTRUCTION ASSUMES ONLY THE OBLIGATIONS IMPOSED BY SECTION        1,549        

1308.20 OF THE REVISED CODE AND NOT AN OBLIGATION THAT THE         1,550        

SECURITY WILL BE HONORED BY THE ISSUER.                                         

      Sec. 1308.26.  (A)  A PERSON WHO GUARANTEES A SIGNATURE OF   1,552        

AN INDORSER OF A SECURITY CERTIFICATE WARRANTS THAT AT THE TIME    1,553        

OF SIGNING:                                                                     

      (1)  THE SIGNATURE WAS GENUINE;                              1,555        

      (2)  THE SIGNER WAS AN APPROPRIATE PERSON TO INDORSE, OR IF  1,557        

THE SIGNATURE IS BY AN AGENT, THE AGENT HAD ACTUAL AUTHORITY TO    1,558        

ACT ON BEHALF OF THE APPROPRIATE PERSON; AND                       1,559        

      (3)  THE SIGNER HAD LEGAL CAPACITY TO SIGN.                  1,561        

      (B)  A PERSON WHO GUARANTEES A SIGNATURE OF THE ORIGINATOR   1,563        

OF AN INSTRUCTION WARRANTS THAT AT THE TIME OF SIGNING:            1,564        

      (1)  THE SIGNATURE WAS GENUINE;                              1,566        

      (2)  THE SIGNER WAS AN APPROPRIATE PERSON TO ORIGINATE THE   1,568        

INSTRUCTION, OR IF THE SIGNATURE IS BY AN AGENT, THE AGENT HAD     1,569        

ACTUAL AUTHORITY TO ACT ON BEHALF OF THE APPROPRIATE PERSON, IF    1,570        

THE PERSON SPECIFIED IN THE INSTRUCTION AS THE REGISTERED OWNER    1,571        

WAS, IN FACT, THE REGISTERED OWNER, AS TO WHICH FACT THE           1,572        

SIGNATURE GUARANTOR DOES NOT MAKE A WARRANTY; AND                               

      (3)  THE SIGNER HAD LEGAL CAPACITY TO SIGN.                  1,575        

      (C)  A PERSON WHO SPECIALLY GUARANTEES THE SIGNATURE OF AN   1,577        

ORIGINATOR OF AN INSTRUCTION MAKES THE WARRANTIES OF A SIGNATURE   1,578        

GUARANTOR UNDER DIVISION (B) OF THIS SECTION AND ALSO WARRANTS     1,579        

THAT AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER:       1,580        

      (1)  THE PERSON SPECIFIED IN THE INSTRUCTION AS THE          1,582        

REGISTERED OWNER OF THE UNCERTIFICATED SECURITY WILL BE THE        1,583        

                                                          36     

                                                                 
REGISTERED OWNER; AND                                                           

      (2)  THE TRANSFER OF THE UNCERTIFICATED SECURITY REQUESTED   1,585        

IN THE INSTRUCTION WILL BE REGISTERED BY THE ISSUER FREE FROM ALL  1,586        

LIENS, SECURITY INTERESTS, RESTRICTIONS, AND CLAIMS OTHER THAN     1,587        

THOSE SPECIFIED IN THE INSTRUCTION.                                1,588        

      (D)  A GUARANTOR UNDER DIVISIONS (A) AND (B) OF THIS         1,591        

SECTION OR A SPECIAL GUARANTOR UNDER DIVISION (C) OF THIS SECTION  1,592        

DOES NOT OTHERWISE WARRANT THE RIGHTFULNESS OF THE TRANSFER.                    

      (E)  A PERSON WHO GUARANTEES AN INDORSEMENT OF A SECURITY    1,594        

CERTIFICATE MAKES THE WARRANTIES OF A SIGNATURE GUARANTOR UNDER    1,595        

DIVISION (A) OF THIS SECTION AND ALSO WARRANTS THE RIGHTFULNESS    1,596        

OF THE TRANSFER IN ALL RESPECTS.                                   1,597        

      (F)  A PERSON WHO GUARANTEES AN INSTRUCTION REQUESTING THE   1,599        

TRANSFER OF AN UNCERTIFICATED SECURITY MAKES THE WARRANTIES OF A   1,600        

SPECIAL SIGNATURE GUARANTOR UNDER DIVISION (C) OF THIS SECTION     1,601        

AND ALSO WARRANTS THE RIGHTFULNESS OF THE TRANSFER IN ALL          1,602        

RESPECTS.                                                                       

      (G)  AN ISSUER MAY NOT REQUIRE A SPECIAL GUARANTY OF         1,604        

SIGNATURE, A GUARANTY OF INDORSEMENT, OR A GUARANTY OF             1,605        

INSTRUCTION AS A CONDITION TO REGISTRATION OF TRANSFER.            1,606        

      (H)  THE WARRANTIES UNDER THIS SECTION ARE MADE TO A PERSON  1,608        

TAKING OR DEALING WITH THE SECURITY IN RELIANCE ON THE GUARANTY,   1,609        

AND THE GUARANTOR IS LIABLE TO THE PERSON FOR LOSS RESULTING FROM  1,610        

THEIR BREACH.  AN INDORSER OR ORIGINATOR OF AN INSTRUCTION WHOSE   1,611        

SIGNATURE, INDORSEMENT, OR INSTRUCTION HAS BEEN GUARANTEED IS      1,612        

LIABLE TO A GUARANTOR FOR ANY LOSS SUFFERED BY THE GUARANTOR AS A  1,613        

RESULT OF BREACH OF THE WARRANTIES OF THE GUARANTOR.                            

      Sec. 1308.27.  (A)  DELIVERY OF A CERTIFICATED SECURITY TO   1,615        

A PURCHASER OCCURS WHEN:                                           1,616        

      (1)  THE PURCHASER ACQUIRES POSSESSION OF THE SECURITY       1,618        

CERTIFICATE;                                                                    

      (2)  ANOTHER PERSON, OTHER THAN A SECURITIES INTERMEDIARY,   1,620        

EITHER ACQUIRES POSSESSION OF THE SECURITY CERTIFICATE ON BEHALF   1,621        

OF THE PURCHASER OR, HAVING PREVIOUSLY ACQUIRED POSSESSION OF THE  1,622        

                                                          37     

                                                                 
CERTIFICATE, ACKNOWLEDGES THAT IT HOLDS FOR THE PURCHASER; OR      1,623        

      (3)  A SECURITIES INTERMEDIARY ACTING ON BEHALF OF THE       1,625        

PURCHASER ACQUIRES POSSESSION OF THE SECURITY CERTIFICATE, ONLY    1,626        

IF THE CERTIFICATE IS IN REGISTERED FORM AND HAS BEEN SPECIALLY    1,627        

INDORSED TO THE PURCHASER BY AN EFFECTIVE INDORSEMENT.             1,628        

      (B)  DELIVERY OF AN UNCERTIFICATED SECURITY TO A PURCHASER   1,630        

OCCURS WHEN:                                                       1,631        

      (1)  THE ISSUER REGISTERS THE PURCHASER AS THE REGISTERED    1,633        

OWNER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER; OR         1,634        

      (2)  ANOTHER PERSON, OTHER THAN A SECURITIES INTERMEDIARY,   1,636        

EITHER BECOMES THE REGISTERED OWNER OF THE UNCERTIFICATED          1,637        

SECURITY ON BEHALF OF THE PURCHASER OR, HAVING PREVIOUSLY BECOME   1,638        

THE REGISTERED OWNER, ACKNOWLEDGES THAT IT HOLDS FOR THE           1,639        

PURCHASER.                                                                      

      Sec. 1308.31.  Unless otherwise agreed, the transferor of a  1,648        

certificated security or the transferor, pledgor, or pledgee of    1,650        

an uncertificated security on due demand must SHALL supply his     1,651        

THE purchaser with any proof of his authority to transfer,         1,653        

pledge, or release or with any other requisite necessary to        1,654        

obtain registration of the transfer, pledge, or release of the     1,656        

security, but if the transfer, pledge, or release is not for       1,657        

value, a transferor, pledgor, or pledgee need not do so COMPLY     1,658        

unless the purchaser furnishes PAYS the necessary expenses.        1,659        

Failure IF THE TRANSFEROR FAILS within a reasonable time to        1,660        

comply with a THE demand made gives, the purchaser the right to    1,662        

MAY reject or rescind the transfer, pledge, or release.            1,663        

      Sec. 1308.32.  (A)  THE INTEREST OF A DEBTOR IN A            1,665        

CERTIFICATED SECURITY MAY BE REACHED BY A CREDITOR ONLY BY ACTUAL  1,666        

SEIZURE OF THE SECURITY CERTIFICATE BY THE OFFICER MAKING THE      1,667        

ATTACHMENT OR LEVY, EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D)   1,668        

OF THIS SECTION.  HOWEVER, A CERTIFICATED SECURITY FOR WHICH THE   1,669        

CERTIFICATE HAS BEEN SURRENDERED TO THE ISSUER MAY BE REACHED BY   1,670        

A CREDITOR BY LEGAL PROCESS UPON THE ISSUER.                                    

      (B)  THE INTEREST OF A DEBTOR IN AN UNCERTIFICATED SECURITY  1,672        

                                                          38     

                                                                 
MAY BE REACHED BY A CREDITOR ONLY BY LEGAL PROCESS UPON THE        1,673        

ISSUER AT ITS CHIEF EXECUTIVE OFFICE IN THE UNITED STATES, EXCEPT  1,674        

AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS SECTION.             1,675        

      (C)  THE INTEREST OF A DEBTOR IN A SECURITY ENTITLEMENT MAY  1,677        

BE REACHED BY A CREDITOR ONLY BY LEGAL PROCESS UPON THE            1,678        

SECURITIES INTERMEDIARY WITH WHOM THE DEBTOR'S SECURITIES ACCOUNT  1,679        

IS MAINTAINED, EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF     1,680        

THIS SECTION.                                                                   

      (D)  THE INTEREST OF A DEBTOR IN A CERTIFICATED SECURITY     1,682        

FOR WHICH THE CERTIFICATE IS IN THE POSSESSION OF A SECURED        1,683        

PARTY, OR IN AN UNCERTIFICATED SECURITY REGISTERED IN THE NAME OF  1,684        

A SECURED PARTY, OR A SECURITY ENTITLEMENT MAINTAINED IN THE NAME  1,685        

OF A SECURED PARTY, MAY BE REACHED BY A CREDITOR BY LEGAL PROCESS  1,686        

UPON THE SECURED PARTY.                                                         

      (E)  A CREDITOR WHOSE DEBTOR IS THE OWNER OF A CERTIFICATED  1,688        

SECURITY, UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT IS      1,689        

ENTITLED TO AID FROM A COURT OF COMPETENT JURISDICTION, BY         1,690        

INJUNCTION OR OTHERWISE, IN REACHING THE CERTIFICATED SECURITY,    1,691        

UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT OR IN SATISFYING  1,692        

THE CLAIM BY MEANS ALLOWED AT LAW OR IN EQUITY IN REGARD TO        1,693        

PROPERTY THAT CANNOT READILY BE REACHED BY OTHER LEGAL PROCESS.                 

      Sec. 1308.33.  (A)  A SECURITIES INTERMEDIARY THAT HAS       1,695        

TRANSFERRED A FINANCIAL ASSET PURSUANT TO AN EFFECTIVE             1,696        

ENTITLEMENT ORDER, OR A BROKER OR OTHER AGENT OR BAILEE THAT HAS   1,697        

DEALT WITH A FINANCIAL ASSET AT THE DIRECTION OF ITS CUSTOMER OR   1,698        

PRINCIPAL, IS NOT LIABLE TO A PERSON HAVING AN ADVERSE CLAIM TO    1,699        

THE FINANCIAL ASSET, UNLESS THE SECURITIES INTERMEDIARY, OR                     

BROKER OR OTHER AGENT OR BAILEE:                                   1,700        

      (1)  TOOK THE ACTION AFTER IT HAD BEEN SERVED WITH AN        1,702        

INJUNCTION, RESTRAINING ORDER, OR OTHER LEGAL PROCESS ENJOINING    1,703        

IT FROM DOING SO, ISSUED BY A COURT OF COMPETENT JURISDICTION,     1,704        

AND HAD A REASONABLE OPPORTUNITY TO ACT ON THE INJUNCTION,         1,705        

RESTRAINING ORDER, OR OTHER LEGAL PROCESS; OR                                   

      (2)  ACTED IN COLLUSION WITH THE WRONGDOER IN VIOLATING THE  1,707        

                                                          39     

                                                                 
RIGHTS OF THE ADVERSE CLAIMANT; OR                                 1,708        

      (3)  IN THE CASE OF A SECURITY CERTIFICATE THAT HAS BEEN     1,710        

STOLEN, ACTED WITH NOTICE OF THE ADVERSE CLAIM.                    1,711        

      (B)  A SECURITIES INTERMEDIARY THAT RECEIVES A FINANCIAL     1,713        

ASSET AND ESTABLISHES A SECURITY ENTITLEMENT TO THE FINANCIAL      1,714        

ASSET IN FAVOR OF AN ENTITLEMENT HOLDER IS A PURCHASER FOR VALUE   1,715        

OF THE FINANCIAL ASSET.  A SECURITIES INTERMEDIARY THAT ACQUIRES   1,716        

A SECURITY ENTITLEMENT TO A FINANCIAL ASSET FROM ANOTHER           1,717        

SECURITIES INTERMEDIARY ACQUIRES THE SECURITY ENTITLEMENT FOR      1,718        

VALUE IF THE SECURITIES INTERMEDIARY ACQUIRING THE SECURITY                     

ENTITLEMENT ESTABLISHES A SECURITY ENTITLEMENT TO THE FINANCIAL    1,719        

ASSET IN FAVOR OF AN ENTITLEMENT HOLDER.                           1,720        

      Sec. 1308.37.  (A)  If a certificated security in            1,729        

registered form is presented to the issuer with a request to       1,730        

register transfer or an instruction is presented to the issuer     1,731        

with a request to register transfer, pledge, or release OF AN      1,732        

UNCERTIFICATED SECURITY, the issuer shall register the transfer,   1,733        

pledge, or release as requested if:                                1,734        

      (1)  UNDER THE TERMS OF THE SECURITY THE PERSON SEEKING      1,736        

REGISTRATION OF TRANSFER IS ELIGIBLE TO HAVE THE SECURITY          1,737        

REGISTERED IN ITS NAME;                                                         

      (2)  The security is indorsed INDORSEMENT or the             1,739        

instruction was originated IS MADE by the appropriate person or    1,740        

persons, as provided in section 1308.23 of the Revised Code BY AN  1,742        

AGENT WHO HAS ACTUAL AUTHORITY TO ACT ON BEHALF OF THE             1,743        

APPROPRIATE PERSON;                                                             

      (2)(3)  Reasonable assurance is given that those             1,745        

indorsements THE INDORSEMENT or instructions are INSTRUCTION IS    1,747        

genuine and effective AUTHORIZED, as provided in section 1308.38   1,749        

of the Revised Code;                                                            

      (3)  The issuer has no duty as to adverse claims or has      1,751        

discharged the duty as provided in section 1308.39 of the Revised  1,752        

Code;                                                              1,753        

      (4)  Any applicable law relating to the collection of taxes  1,755        

                                                          40     

                                                                 
has been complied with;                                            1,756        

      (5)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,758        

TRANSFER IMPOSED BY THE ISSUER IN ACCORDANCE WITH SECTION 1308.11  1,759        

OF THE REVISED CODE;                                                            

      (6)  A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER HAS NOT  1,761        

BECOME EFFECTIVE UNDER SECTION 1308.39 OF THE REVISED CODE, OR     1,763        

THE ISSUER HAS COMPLIED WITH DIVISION (B) OF THAT SECTION BUT NO   1,764        

LEGAL PROCESS OR INDEMNITY BOND IS OBTAINED AS PROVIDED IN         1,766        

DIVISION (D) OF THAT SECTION; and                                               

      (5)(7)  The transfer, pledge, or release is in fact          1,768        

rightful or is to a bona fide PROTECTED purchaser;.                1,770        

      (B)  If an issuer is under a duty to register a transfer,    1,772        

pledge, or release of a security, the issuer is also liable to     1,773        

the person presenting a certificated security or an instruction    1,774        

for registration or his THE PERSON'S principal for loss resulting  1,776        

from any unreasonable delay in registration or from failure or     1,777        

refusal to register the transfer, pledge, or release.                           

      Sec. 1308.38.  (A)  The AN issuer may require the following  1,786        

assurance that each necessary indorsement of a certificated        1,787        

security or each instruction, as provided in section 1308.23 of    1,788        

the Revised Code, is genuine and effective AUTHORIZED:             1,789        

      (1)  In all cases, a guarantee GUARANTY of the signature,    1,791        

as provided in division (A) or (B) of section 1308.27 of the       1,792        

Revised Code, of the person indorsing a certificated security      1,793        

MAKING AN INDORSEMENT or originating an instruction including, in  1,794        

the case of an instruction, a warranty of the taxpayer             1,795        

identification number or, in the absence thereof, other            1,796        

reasonable assurance of identity; and                                           

      (2)  If the indorsement is made or the instruction is        1,798        

originated by an agent, appropriate assurance of ACTUAL authority  1,799        

to sign;                                                           1,800        

      (3)  If the indorsement is made or the instruction is        1,802        

originated by a fiduciary PURSUANT TO DIVISION (A)(4) OR (5) OF    1,803        

SECTION 1308.23 OF THE REVISED CODE, appropriate evidence of       1,804        

                                                          41     

                                                                 
appointment, or incumbency;                                        1,805        

      (4)  If there is more than one fiduciary, reasonable         1,807        

assurance that all who are required to sign have done so; and      1,808        

      (5)  If the indorsement is made or the instruction is        1,810        

originated by a person not covered by any of the foregoing         1,811        

ANOTHER PROVISION OF DIVISION (A) OF THIS SECTION, assurance       1,812        

appropriate to the case corresponding as nearly as may be to the   1,814        

foregoing SUCH PROVISIONS.                                                      

      (B)  A AN ISSUER MAY ELECT TO REQUIRE REASONABLE ASSURANCE   1,816        

BEYOND THAT SPECIFIED IN THIS SECTION.                             1,817        

      (C)  IN THIS SECTION:                                        1,819        

      (1)  "guarantee GUARANTY of the signature" in division (A)   1,822        

of this section means a guarantee GUARANTY signed by or on behalf  1,823        

of a person reasonably believed by the issuer to be responsible.   1,824        

The issuer may adopt standards with respect to responsibility if   1,825        

they are not manifestly unreasonable.                              1,826        

      (C)(2)  "Appropriate evidence of appointment or incumbency"  1,828        

in division (A) of this section means:                             1,829        

      (1)(a)  In the case of a fiduciary appointed or qualified    1,831        

by a court, a certificate issued by or under the direction or      1,832        

supervision of that court or an officer thereof and dated within   1,833        

sixty days before the date of presentation for transfer, pledge,   1,834        

or release; or                                                     1,835        

      (2)(b)  In any other case, a copy of a document showing the  1,837        

appointment or a certificate issued by or on behalf of a person    1,838        

reasonably believed by the issuer to be responsible or, in the     1,839        

absence of that document or certificate, other evidence            1,840        

reasonably deemed by the issuer to be REASONABLY CONSIDERED        1,842        

appropriate.  The issuer may adopt standards with respect to the   1,843        

evidence if they are not manifestly unreasonable.  The issuer is   1,844        

not charged with notice of the contents of any document obtained   1,845        

pursuant to division (C)(2) of this section except to the extent   1,846        

that the contents relate directly to the appointment or            1,847        

incumbency.                                                                     

                                                          42     

                                                                 
      (D)  The issuer may elect to require reasonable assurance    1,849        

beyond that specified in this section, but if it does so and, for  1,850        

a purpose other than that specified in division (C)(2) of this     1,851        

section, both requires and obtains a copy of a will, trust,        1,852        

indenture, articles of co-partnership, by-laws, or other           1,853        

controlling instrument, it is charged with notice of all matters   1,854        

contained therein affecting the transfer, pledge, or release.      1,855        

      Sec. 1308.39.  (A)  A PERSON WHO IS AN APPROPRIATE PERSON    1,857        

TO MAKE AN INDORSEMENT OR ORIGINATE AN INSTRUCTION MAY DEMAND      1,858        

THAT THE ISSUER NOT REGISTER TRANSFER OF A SECURITY BY             1,859        

COMMUNICATING TO THE ISSUER A NOTIFICATION THAT IDENTIFIES THE     1,860        

REGISTERED OWNER AND THE ISSUE OF WHICH THE SECURITY IS A PART     1,861        

AND PROVIDES AN ADDRESS FOR COMMUNICATIONS DIRECTED TO THE PERSON               

MAKING THE DEMAND.  THE DEMAND IS EFFECTIVE ONLY IF IT IS          1,862        

RECEIVED BY THE ISSUER AT A TIME AND IN A MANNER AFFORDING THE     1,863        

ISSUER REASONABLE OPPORTUNITY TO ACT ON IT.                                     

      (B)  IF A CERTIFICATED SECURITY IN REGISTERED FORM IS        1,865        

PRESENTED TO AN ISSUER WITH A REQUEST TO REGISTER TRANSFER OR AN   1,866        

INSTRUCTION IS PRESENTED TO AN ISSUER WITH A REQUEST TO REGISTER   1,867        

TRANSFER OF AN UNCERTIFICATED SECURITY AFTER A DEMAND THAT THE     1,868        

ISSUER NOT REGISTER TRANSFER HAS BECOME EFFECTIVE, THE ISSUER      1,869        

SHALL PROMPTLY COMMUNICATE TO THE PERSON WHO INITIATED THE DEMAND               

AT THE ADDRESS PROVIDED IN THE DEMAND AND THE PERSON WHO           1,870        

PRESENTED THE SECURITY FOR REGISTRATION OF TRANSFER OR INITIATED   1,871        

THE INSTRUCTION REQUESTING REGISTRATION OF TRANSFER A              1,872        

NOTIFICATION STATING THAT:                                                      

      (1)  THE CERTIFICATED SECURITY HAS BEEN PRESENTED FOR        1,874        

REGISTRATION OF TRANSFER OR THE INSTRUCTION FOR REGISTRATION OF    1,875        

TRANSFER OF THE UNCERTIFICATED SECURITY HAS BEEN RECEIVED;         1,876        

      (2)  A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER HAD      1,878        

PREVIOUSLY BEEN RECEIVED; AND                                      1,879        

      (3)  THE ISSUER WILL WITHHOLD REGISTRATION OF TRANSFER FOR   1,881        

A PERIOD OF TIME STATED IN THE NOTIFICATION IN ORDER TO PROVIDE    1,882        

THE PERSON WHO INITIATED THE DEMAND AN OPPORTUNITY TO OBTAIN       1,883        

                                                          43     

                                                                 
LEGAL PROCESS OR AN INDEMNITY BOND.                                             

      (C)  THE PERIOD DESCRIBED IN DIVISION (B)(3) OF THIS         1,885        

SECTION MAY NOT EXCEED THIRTY DAYS AFTER THE DATE OF               1,886        

COMMUNICATION OF THE NOTIFICATION.  A SHORTER PERIOD MAY BE        1,887        

SPECIFIED BY THE ISSUER IF IT IS NOT MANIFESTLY UNREASONABLE.      1,888        

      (D)  AN ISSUER IS NOT LIABLE TO A PERSON WHO INITIATED A     1,890        

DEMAND THAT THE ISSUER NOT REGISTER TRANSFER FOR ANY LOSS THE      1,891        

PERSON SUFFERS AS A RESULT OF REGISTRATION OF A TRANSFER PURSUANT  1,892        

TO AN EFFECTIVE INDORSEMENT OR INSTRUCTION IF THE PERSON WHO       1,893        

INITIATED THE DEMAND DOES NOT, WITHIN THE TIME STATED IN THE       1,894        

ISSUER'S COMMUNICATION, EITHER:                                                 

      (1)  OBTAIN AN APPROPRIATE RESTRAINING ORDER, INJUNCTION,    1,896        

OR OTHER PROCESS FROM A COURT OF COMPETENT JURISDICTION ENJOINING  1,897        

THE ISSUER FROM REGISTERING THE TRANSFER; OR                       1,898        

      (2)  FILE WITH THE ISSUER AN INDEMNITY BOND, SUFFICIENT IN   1,900        

THE ISSUER'S JUDGMENT TO PROTECT THE ISSUER AND ANY TRANSFER       1,901        

AGENT, REGISTRAR, OR OTHER AGENT OF THE ISSUER INVOLVED FROM ANY   1,902        

LOSS IT OR THEY MAY SUFFER BY REFUSING TO REGISTER THE TRANSFER.   1,903        

      (E)  THIS SECTION DOES NOT RELIEVE AN ISSUER FROM LIABILITY  1,905        

FOR REGISTERING TRANSFER PURSUANT TO AN INDORSEMENT OR             1,906        

INSTRUCTION THAT WAS NOT EFFECTIVE.                                1,907        

      Sec. 1308.40.  (A)  EXCEPT AS OTHERWISE PROVIDED IN SECTION  1,909        

1308.41 OF THE REVISED CODE, AN ISSUER IS LIABLE FOR WRONGFUL      1,910        

REGISTRATION OF TRANSFER IF THE ISSUER HAS REGISTERED A TRANSFER   1,911        

OF A SECURITY TO A PERSON NOT ENTITLED TO IT, AND THE TRANSFER     1,912        

WAS REGISTERED:                                                                 

      (1)  PURSUANT TO AN INEFFECTIVE INDORSEMENT OR INSTRUCTION;  1,914        

      (2)  AFTER A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER    1,916        

BECAME EFFECTIVE UNDER DIVISION (A) OF SECTION 1308.39 OF THE      1,917        

REVISED CODE AND THE ISSUER DID NOT COMPLY WITH DIVISION (B) OF    1,918        

THAT SECTION;                                                                   

      (3)  AFTER THE ISSUER HAD BEEN SERVED WITH AN INJUNCTION,    1,920        

RESTRAINING ORDER, OR OTHER LEGAL PROCESS ENJOINING IT FROM        1,921        

REGISTERING THE TRANSFER, ISSUED BY A COURT OF COMPETENT           1,922        

                                                          44     

                                                                 
JURISDICTION, AND THE ISSUER HAD A REASONABLE OPPORTUNITY TO ACT   1,923        

ON THE INJUNCTION, RESTRAINING ORDER, OR OTHER LEGAL PROCESS; OR   1,924        

      (4)  BY AN ISSUER ACTING IN COLLUSION WITH THE WRONGDOER.    1,926        

      (B)  AN ISSUER THAT IS LIABLE FOR WRONGFUL REGISTRATION OF   1,928        

TRANSFER UNDER DIVISION (A) OF THIS SECTION ON DEMAND SHALL        1,929        

PROVIDE THE PERSON ENTITLED TO THE SECURITY WITH A LIKE            1,930        

CERTIFICATED OR UNCERTIFICATED SECURITY, AND ANY PAYMENTS OR       1,931        

DISTRIBUTIONS THAT THE PERSON DID NOT RECEIVE AS A RESULT OF THE   1,932        

WRONGFUL REGISTRATION.  IF AN OVERISSUE WOULD RESULT, THE                       

ISSUER'S LIABILITY TO PROVIDE THE PERSON WITH A LIKE SECURITY IS   1,933        

GOVERNED BY SECTION 1308.03 OF THE REVISED CODE.                   1,934        

      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (A) OF THIS    1,936        

SECTION OR IN A LAW RELATING TO THE COLLECTION OF TAXES, AN        1,937        

ISSUER IS NOT LIABLE TO AN OWNER OR OTHER PERSON SUFFERING LOSS    1,938        

AS A RESULT OF THE REGISTRATION OF A TRANSFER OF A SECURITY IF     1,939        

REGISTRATION WAS MADE PURSUANT TO AN EFFECTIVE INDORSEMENT OR      1,940        

INSTRUCTION.                                                                    

      Sec. 1308.41.  (A)  If a certificated security CERTIFICATE   1,948        

has been lost, apparently destroyed, or wrongfully taken and the   1,950        

owner fails to notify the issuer of that fact within a reasonable  1,951        

time after he THE OWNER has notice of it and the issuer registers  1,952        

a transfer of the security before receiving notification, the      1,953        

owner is precluded from asserting MAY NOT ASSERT against the       1,954        

issuer any A claim for registering the transfer under section      1,956        

1308.40 of the Revised Code or any claim to a new security under   1,957        

this section.                                                                   

      (B)  If the owner of a certificated security, WHETHER IN     1,959        

REGISTERED OR BEARER FORM, claims that the security has been       1,961        

lost, destroyed, or wrongfully taken, the issuer shall issue a     1,962        

new certificated security or, at the option of the issuer, an      1,963        

equivalent uncertificated security in place of the original        1,964        

security CERTIFICATE if the owner:                                              

      (1)  So requests before the issuer has notice that the       1,966        

security has been acquired by a bona fide PROTECTED purchaser;     1,967        

                                                          45     

                                                                 
      (2)  Files with the issuer any A SUFFICIENT indemnity bond,  1,969        

the issuer reasonably requires; and                                1,971        

      (3)  Satisfies any other reasonable requirements imposed by  1,973        

the issuer.                                                        1,974        

      (C)  If, after the issue of a new certificated or            1,976        

uncertificated security CERTIFICATE, a bona fide PROTECTED         1,978        

purchaser of the original security presents it for registration    1,979        

of transfer, the issuer shall register the transfer unless         1,980        

registration AN OVERISSUE would result in overissue, in which      1,982        

event.  IN THAT CASE, the issuer's liability is governed by        1,983        

section 1308.03 of the Revised Code.  In addition to any rights    1,984        

on the indemnity bond, the issuer may recover the new              1,985        

certificated security CERTIFICATE from the person to whom it was   1,986        

issued or any person taking under him THAT PERSON, except a bona   1,988        

fide PROTECTED purchaser or may cancel the uncertificated          1,989        

security unless a bona fide purchaser or any person taking under   1,991        

a bona fide purchaser is then the registered owner or registered   1,992        

pledgee thereof.                                                                

      Sec. 1308.42.  (A)  If a A person acts ACTING as             2,001        

authenticating trustee, transfer agent, registrar, or other agent  2,003        

for an issuer in the registration of transfers A TRANSFER of its   2,004        

certificated securities or in the registration of transfers,       2,006        

pledges, and releases of its uncertificated securities, in the     2,007        

issue of new SECURITY CERTIFICATES OR UNCERTIFICATED securities,   2,008        

or in the cancellation of surrendered securities:                  2,009        

      (1)  He is under a duty to the issuer to exercise good       2,012        

faith and due diligence in performing his functions; and           2,013        

      (2)  With regard to the particular functions he performs,    2,015        

he SECURITY CERTIFICATES, has the same obligation to the holder    2,017        

or owner of a certificated OR UNCERTIFICATED security or to the    2,018        

owner or pledgee of an uncertificated security and has the same    2,019        

rights and privileges WITH REGARD TO THE PARTICULAR FUNCTIONS      2,020        

PERFORMED as the issuer has in regard to those functions.          2,021        

      (B)  Notice to an authenticating trustee, transfer agent,    2,023        

                                                          46     

                                                                 
registrar or other agent is notice to the issuer with respect to   2,024        

the functions performed by the agent.                              2,025        

      Sec. 1308.51.  (A)  "SECURITIES ACCOUNT" MEANS AN ACCOUNT    2,027        

TO WHICH A FINANCIAL ASSET IS OR MAY BE CREDITED IN ACCORDANCE     2,028        

WITH AN AGREEMENT UNDER WHICH THE PERSON MAINTAINING THE ACCOUNT   2,029        

UNDERTAKES TO TREAT THE PERSON FOR WHOM THE ACCOUNT IS MAINTAINED  2,030        

AS ENTITLED TO EXERCISE THE RIGHTS THAT COMPRISE THE FINANCIAL     2,031        

ASSET.                                                                          

      (B)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (D) AND (E)   2,034        

OF THIS SECTION, A PERSON ACQUIRES A SECURITY ENTITLEMENT IF A                  

SECURITIES INTERMEDIARY:                                           2,035        

      (1)  INDICATES BY BOOK ENTRY THAT A FINANCIAL ASSET HAS      2,037        

BEEN CREDITED TO THE PERSON'S SECURITIES ACCOUNT;                  2,038        

      (2)  RECEIVES A FINANCIAL ASSET FROM THE PERSON OR ACQUIRES  2,040        

A FINANCIAL ASSET FOR THE PERSON AND, IN EITHER CASE, ACCEPTS IT   2,041        

FOR CREDIT TO THE PERSON'S SECURITIES ACCOUNT; OR                  2,042        

      (3)  BECOMES OBLIGATED UNDER OTHER LAW, REGULATION, OR RULE  2,044        

TO CREDIT A FINANCIAL ASSET TO THE PERSON'S SECURITIES ACCOUNT.    2,045        

      (C)  IF A CONDITION OF DIVISION (B) OF THIS SECTION HAS      2,047        

BEEN MET, A PERSON HAS A SECURITY ENTITLEMENT EVEN THOUGH THE      2,048        

SECURITIES INTERMEDIARY DOES NOT ITSELF HOLD THE FINANCIAL ASSET.  2,049        

      (D)  IF A SECURITIES INTERMEDIARY HOLDS A FINANCIAL ASSET    2,051        

FOR ANOTHER PERSON, AND THE FINANCIAL ASSET IS REGISTERED IN THE   2,052        

NAME OF, PAYABLE TO THE ORDER OF, OR SPECIALLY INDORSED TO THE     2,053        

OTHER PERSON, AND HAS NOT BEEN INDORSED TO THE SECURITIES          2,054        

INTERMEDIARY OR IN BLANK, THE OTHER PERSON IS TREATED AS HOLDING   2,055        

THE FINANCIAL ASSET DIRECTLY RATHER THAN AS HAVING A SECURITY      2,056        

ENTITLEMENT WITH RESPECT TO THE FINANCIAL ASSET.                                

      (E)  ISSUANCE OF A SECURITY IS NOT ESTABLISHMENT OF A        2,058        

SECURITY ENTITLEMENT.                                              2,059        

      Sec. 1308.52.  AN ACTION BASED ON AN ADVERSE CLAIM TO A      2,061        

FINANCIAL ASSET, WHETHER FRAMED IN CONVERSION, REPLEVIN,           2,062        

CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY, MAY NOT BE    2,063        

ASSERTED AGAINST A PERSON WHO ACQUIRES A SECURITY ENTITLEMENT      2,064        

                                                          47     

                                                                 
UNDER SECTION 1308.51 OF THE REVISED CODE FOR VALUE AND WITHOUT                 

NOTICE OF THE ADVERSE CLAIM.                                       2,065        

      Sec. 1308.53.  (A)  TO THE EXTENT NECESSARY FOR A            2,067        

SECURITIES INTERMEDIARY TO SATISFY ALL SECURITY ENTITLEMENTS WITH  2,068        

RESPECT TO A PARTICULAR FINANCIAL ASSET, ALL INTERESTS IN THAT     2,069        

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY ARE HELD BY    2,070        

THE SECURITIES INTERMEDIARY FOR THE ENTITLEMENT HOLDERS, ARE NOT   2,071        

PROPERTY OF THE SECURITIES INTERMEDIARY, AND ARE NOT SUBJECT TO    2,072        

CLAIMS OF CREDITORS OF THE SECURITIES INTERMEDIARY, EXCEPT AS      2,073        

OTHERWISE PROVIDED IN SECTION 1308.61 OF THE REVISED CODE.                      

      (B)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,075        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,076        

SECTION IS A PRO RATA PROPERTY INTEREST IN ALL INTERESTS IN THAT   2,077        

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY, WITHOUT       2,078        

REGARD TO THE TIME THE ENTITLEMENT HOLDER ACQUIRED THE SECURITY    2,079        

ENTITLEMENT OR THE TIME THE SECURITIES INTERMEDIARY ACQUIRED THE   2,080        

INTEREST IN THAT FINANCIAL ASSET.                                               

      (C)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,082        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,083        

SECTION MAY BE ENFORCED AGAINST THE SECURITIES INTERMEDIARY ONLY   2,084        

BY EXERCISE OF THE ENTITLEMENT HOLDER'S RIGHTS UNDER SECTIONS      2,085        

1308.55 TO 1308.58 OF THE REVISED CODE.                                         

      (D)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,087        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,088        

SECTION MAY BE ENFORCED AGAINST A PURCHASER OF THE FINANCIAL       2,089        

ASSET OR INTEREST THEREIN ONLY IF:                                 2,090        

      (1)  INSOLVENCY PROCEEDINGS HAVE BEEN INITIATED BY OR        2,092        

AGAINST THE SECURITIES INTERMEDIARY;                               2,093        

      (2)  THE SECURITIES INTERMEDIARY DOES NOT HAVE SUFFICIENT    2,095        

INTERESTS IN THE FINANCIAL ASSET TO SATISFY THE SECURITY           2,096        

ENTITLEMENTS OF ALL OF ITS ENTITLEMENT HOLDERS TO THAT FINANCIAL   2,097        

ASSET;                                                                          

      (3)  THE SECURITIES INTERMEDIARY VIOLATED ITS OBLIGATIONS    2,099        

UNDER SECTION 1308.54 OF THE REVISED CODE BY TRANSFERRING THE      2,100        

                                                          48     

                                                                 
FINANCIAL ASSET OR INTEREST THEREIN TO THE PURCHASER; AND          2,101        

      (4)  THE PURCHASER IS NOT PROTECTED UNDER DIVISION (E) OF    2,103        

THIS SECTION.  THE TRUSTEE OR OTHER LIQUIDATOR, ACTING ON BEHALF   2,104        

OF ALL ENTITLEMENT HOLDERS HAVING SECURITY ENTITLEMENTS WITH       2,105        

RESPECT TO A PARTICULAR FINANCIAL ASSET, MAY RECOVER THE           2,106        

FINANCIAL ASSET, OR INTEREST THEREIN, FROM THE PURCHASER.  IF THE  2,107        

TRUSTEE OR OTHER LIQUIDATOR ELECTS NOT TO PURSUE THAT RIGHT, AN    2,108        

ENTITLEMENT HOLDER WHOSE SECURITY ENTITLEMENT REMAINS UNSATISFIED               

HAS THE RIGHT TO RECOVER ITS INTEREST IN THE FINANCIAL ASSET FROM  2,109        

THE PURCHASER.                                                     2,110        

      (E)  AN ACTION BASED ON THE ENTITLEMENT HOLDER'S PROPERTY    2,112        

INTEREST WITH RESPECT TO A PARTICULAR FINANCIAL ASSET UNDER        2,113        

DIVISION (A) OF THIS SECTION, WHETHER FRAMED IN CONVERSION,        2,114        

REPLEVIN, CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY,     2,115        

MAY NOT BE ASSERTED AGAINST ANY PURCHASER OF A FINANCIAL ASSET OR  2,116        

INTEREST THEREIN WHO GIVES VALUE, OBTAINS CONTROL, AND DOES NOT    2,117        

ACT IN COLLUSION WITH THE SECURITIES INTERMEDIARY IN VIOLATING                  

THE SECURITIES INTERMEDIARY'S OBLIGATIONS UNDER SECTION 1308.54    2,119        

OF THE REVISED CODE.                                                            

      Sec. 1308.54.  (A)  A SECURITIES INTERMEDIARY SHALL          2,121        

PROMPTLY OBTAIN AND THEREAFTER MAINTAIN A FINANCIAL ASSET IN A     2,122        

QUANTITY CORRESPONDING TO THE AGGREGATE OF ALL SECURITY            2,123        

ENTITLEMENTS IT HAS ESTABLISHED IN FAVOR OF ITS ENTITLEMENT        2,124        

HOLDERS WITH RESPECT TO THAT FINANCIAL ASSET.  THE SECURITIES                   

INTERMEDIARY MAY MAINTAIN THOSE FINANCIAL ASSETS DIRECTLY OR       2,125        

THROUGH ONE OR MORE OTHER SECURITIES INTERMEDIARIES.               2,126        

      (B)  EXCEPT TO THE EXTENT OTHERWISE AGREED BY ITS            2,128        

ENTITLEMENT HOLDER, A SECURITIES INTERMEDIARY MAY NOT GRANT ANY    2,129        

SECURITY INTERESTS IN A FINANCIAL ASSET IT IS OBLIGATED TO         2,130        

MAINTAIN PURSUANT TO DIVISION (A) OF THIS SECTION.                 2,131        

      (C)  A SECURITIES INTERMEDIARY SATISFIES THE DUTY IN         2,133        

DIVISION (A) OF THIS SECTION IF:                                   2,134        

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,136        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,137        

                                                          49     

                                                                 
INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,139        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,140        

COMMERCIAL STANDARDS TO OBTAIN AND MAINTAIN THE FINANCIAL ASSET.   2,141        

      (D)  THIS SECTION DOES NOT APPLY TO A CLEARING CORPORATION   2,143        

THAT IS ITSELF THE OBLIGOR OF AN OPTION OR SIMILAR OBLIGATION TO   2,144        

WHICH ITS ENTITLEMENT HOLDERS HAVE SECURITY ENTITLEMENTS.          2,145        

      Sec. 1308.55.  (A)  A SECURITIES INTERMEDIARY SHALL TAKE     2,147        

ACTION TO OBTAIN A PAYMENT OR DISTRIBUTION MADE BY THE ISSUER OF   2,148        

A FINANCIAL ASSET.  A SECURITIES INTERMEDIARY SATISFIES THE DUTY   2,149        

IF:                                                                             

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,151        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,152        

INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,154        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,155        

COMMERCIAL STANDARDS TO ATTEMPT TO OBTAIN THE PAYMENT OR           2,156        

DISTRIBUTION.                                                                   

      (B)  A SECURITIES INTERMEDIARY IS OBLIGATED TO ITS           2,158        

ENTITLEMENT HOLDER FOR A PAYMENT OR DISTRIBUTION MADE BY THE       2,159        

ISSUER OF A FINANCIAL ASSET IF THE PAYMENT OR DISTRIBUTION IS      2,160        

RECEIVED BY THE SECURITIES INTERMEDIARY.                                        

      Sec. 1308.56.  A SECURITIES INTERMEDIARY SHALL EXERCISE      2,162        

RIGHTS WITH RESPECT TO A FINANCIAL ASSET IF DIRECTED TO DO SO BY   2,163        

AN ENTITLEMENT HOLDER.  A SECURITIES INTERMEDIARY SATISFIES THE    2,164        

DUTY IF:                                                                        

      (A)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,166        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,167        

INTERMEDIARY; OR                                                                

      (B)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,169        

INTERMEDIARY EITHER PLACES THE ENTITLEMENT HOLDER IN A POSITION    2,170        

TO EXERCISE THE RIGHTS DIRECTLY OR EXERCISES DUE CARE IN           2,171        

ACCORDANCE WITH REASONABLE COMMERCIAL STANDARDS TO FOLLOW THE      2,172        

DIRECTION OF THE ENTITLEMENT HOLDER.                                            

                                                          50     

                                                                 
      Sec. 1308.57.  (A)  A SECURITIES INTERMEDIARY SHALL COMPLY   2,174        

WITH AN ENTITLEMENT ORDER IF THE ENTITLEMENT ORDER IS ORIGINATED   2,175        

BY THE APPROPRIATE PERSON, THE SECURITIES INTERMEDIARY HAS HAD     2,176        

REASONABLE OPPORTUNITY TO ASSURE ITSELF THAT THE ENTITLEMENT       2,177        

ORDER IS GENUINE AND AUTHORIZED, AND THE SECURITIES INTERMEDIARY   2,178        

HAS HAD REASONABLE OPPORTUNITY TO COMPLY WITH THE ENTITLEMENT      2,179        

ORDER.  A SECURITIES INTERMEDIARY SATISFIES THE DUTY IF:                        

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,181        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,182        

INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,184        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,185        

COMMERCIAL STANDARDS TO COMPLY WITH THE ENTITLEMENT ORDER.         2,186        

      (B)  IF A SECURITIES INTERMEDIARY TRANSFERS A FINANCIAL      2,188        

ASSET PURSUANT TO AN INEFFECTIVE ENTITLEMENT ORDER, THE            2,189        

SECURITIES INTERMEDIARY SHALL REESTABLISH A SECURITY ENTITLEMENT   2,190        

IN FAVOR OF THE PERSON ENTITLED TO IT, AND PAY OR CREDIT ANY       2,191        

PAYMENTS OR DISTRIBUTIONS THAT THE PERSON DID NOT RECEIVE AS A     2,192        

RESULT OF THE WRONGFUL TRANSFER.  IF THE SECURITIES INTERMEDIARY                

DOES NOT REESTABLISH A SECURITY ENTITLEMENT, THE SECURITIES        2,193        

INTERMEDIARY IS LIABLE TO THE ENTITLEMENT HOLDER FOR DAMAGES.      2,194        

      Sec. 1308.58.  A SECURITIES INTERMEDIARY SHALL ACT AT THE    2,196        

DIRECTION OF AN ENTITLEMENT HOLDER TO CHANGE A SECURITY            2,197        

ENTITLEMENT INTO ANOTHER AVAILABLE FORM OF HOLDING FOR WHICH THE   2,198        

ENTITLEMENT HOLDER IS ELIGIBLE, OR TO CAUSE THE FINANCIAL ASSET    2,199        

TO BE TRANSFERRED TO A SECURITIES ACCOUNT OF THE ENTITLEMENT                    

HOLDER WITH ANOTHER SECURITIES INTERMEDIARY.  A SECURITIES         2,200        

INTERMEDIARY SATISFIES THE DUTY IF:                                2,201        

      (A)  THE SECURITIES INTERMEDIARY ACTS AS AGREED UPON BY THE  2,203        

ENTITLEMENT HOLDER AND THE SECURITIES INTERMEDIARY; OR             2,204        

      (B)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,206        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,207        

COMMERCIAL STANDARDS TO FOLLOW THE DIRECTION OF THE ENTITLEMENT    2,208        

HOLDER.                                                                         

                                                          51     

                                                                 
      Sec. 1308.59.  (A)  IF THE SUBSTANCE OF A DUTY IMPOSED UPON  2,210        

A SECURITIES INTERMEDIARY BY SECTIONS 1308.54 TO 1308.58 OF THE    2,211        

REVISED CODE IS THE SUBJECT OF OTHER STATUTE, REGULATION, OR       2,212        

RULE, COMPLIANCE WITH THAT STATUTE, REGULATION, OR RULE SATISFIES  2,213        

THE DUTY.                                                                       

      (B)  TO THE EXTENT THAT SPECIFIC STANDARDS FOR THE           2,215        

PERFORMANCE OF THE DUTIES OF A SECURITIES INTERMEDIARY OR THE      2,216        

EXERCISE OF THE RIGHTS OF AN ENTITLEMENT HOLDER ARE NOT SPECIFIED  2,217        

BY OTHER STATUTE, REGULATION, OR RULE OR BY AGREEMENT BETWEEN THE  2,218        

SECURITIES INTERMEDIARY AND ENTITLEMENT HOLDER, THE SECURITIES     2,219        

INTERMEDIARY SHALL PERFORM ITS DUTIES AND THE ENTITLEMENT HOLDER                

SHALL EXERCISE ITS RIGHTS IN A COMMERCIALLY REASONABLE MANNER.     2,220        

      (C)  THE OBLIGATION OF A SECURITIES INTERMEDIARY TO PERFORM  2,222        

THE DUTIES IMPOSED BY SECTIONS 1308.54 TO 1308.58 OF THE REVISED   2,223        

CODE IS SUBJECT TO:                                                             

      (1)  RIGHTS OF THE SECURITIES INTERMEDIARY ARISING OUT OF A  2,225        

SECURITY INTEREST UNDER A SECURITY AGREEMENT WITH THE ENTITLEMENT  2,226        

HOLDER OR OTHERWISE; AND                                           2,227        

      (2)  RIGHTS OF THE SECURITIES INTERMEDIARY UNDER OTHER LAW,  2,229        

REGULATION, RULE, OR AGREEMENT TO WITHHOLD PERFORMANCE OF ITS      2,230        

DUTIES AS A RESULT OF UNFULFILLED OBLIGATIONS OF THE ENTITLEMENT   2,231        

HOLDER TO THE SECURITIES INTERMEDIARY.                             2,232        

      (D)  SECTIONS 1308.54 TO 1308.58 OF THE REVISED CODE DO NOT  2,234        

REQUIRE A SECURITIES INTERMEDIARY TO TAKE ANY ACTION THAT IS       2,235        

PROHIBITED BY OTHER STATUTE, REGULATION, OR RULE.                  2,236        

      Sec. 1308.60.  (A)  AN ACTION BASED ON AN ADVERSE CLAIM TO   2,238        

A FINANCIAL ASSET OR SECURITY ENTITLEMENT, WHETHER FRAMED IN       2,239        

CONVERSION, REPLEVIN, CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR       2,240        

OTHER THEORY, MAY NOT BE ASSERTED AGAINST A PERSON WHO PURCHASES   2,241        

A SECURITY ENTITLEMENT, OR AN INTEREST THEREIN, FROM AN            2,242        

ENTITLEMENT HOLDER IF THE PURCHASER GIVES VALUE, DOES NOT HAVE     2,243        

NOTICE OF THE ADVERSE CLAIM, AND OBTAINS CONTROL.                               

      (B)  IF AN ADVERSE CLAIM COULD NOT HAVE BEEN ASSERTED        2,245        

AGAINST AN ENTITLEMENT HOLDER UNDER SECTION 1308.52 OF THE         2,246        

                                                          52     

                                                                 
REVISED CODE, THE ADVERSE CLAIM CANNOT BE ASSERTED AGAINST A       2,247        

PERSON WHO PURCHASES A SECURITY ENTITLEMENT, OR AN INTEREST                     

THEREIN, FROM THE ENTITLEMENT HOLDER.                              2,248        

      (C)  IN A CASE NOT COVERED BY THE PRIORITY RULES IN CHAPTER  2,251        

1309. OF THE REVISED CODE, A PURCHASER FOR VALUE OF A SECURITY                  

ENTITLEMENT, OR AN INTEREST THEREIN, WHO OBTAINS CONTROL HAS       2,252        

PRIORITY OVER A PURCHASER OF A SECURITY ENTITLEMENT, OR AN         2,253        

INTEREST THEREIN, WHO DOES NOT OBTAIN CONTROL.  PURCHASERS WHO     2,254        

HAVE CONTROL RANK EQUALLY, EXCEPT THAT A SECURITIES INTERMEDIARY   2,255        

AS PURCHASER HAS PRIORITY OVER A CONFLICTING PURCHASER WHO HAS                  

CONTROL UNLESS OTHERWISE AGREED BY THE SECURITIES INTERMEDIARY.    2,256        

      Sec. 1308.61.  (A)  EXCEPT AS OTHERWISE PROVIDED IN          2,258        

DIVISIONS (B) AND (C) OF THIS SECTION, IF A SECURITIES             2,259        

INTERMEDIARY DOES NOT HAVE SUFFICIENT INTERESTS IN A PARTICULAR    2,260        

FINANCIAL ASSET TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT     2,261        

HOLDERS WHO HAVE SECURITY ENTITLEMENTS TO THAT FINANCIAL ASSET     2,262        

AND ITS OBLIGATION TO A CREDITOR OF THE SECURITIES INTERMEDIARY    2,263        

WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET, THE CLAIMS                 

OF ENTITLEMENT HOLDERS, OTHER THAN THE CREDITOR, HAVE PRIORITY     2,264        

OVER THE CLAIM OF THE CREDITOR.                                    2,265        

      (B)  A CLAIM OF A CREDITOR OF A SECURITIES INTERMEDIARY WHO  2,267        

HAS A SECURITY INTEREST IN A FINANCIAL ASSET HELD BY A SECURITIES  2,268        

INTERMEDIARY HAS PRIORITY OVER CLAIMS OF THE SECURITIES            2,269        

INTERMEDIARY'S ENTITLEMENT HOLDERS WHO HAVE SECURITY ENTITLEMENTS  2,270        

WITH RESPECT TO THAT FINANCIAL ASSET IF THE CREDITOR HAS CONTROL   2,271        

OVER THE FINANCIAL ASSET.                                                       

      (C)  IF A CLEARING CORPORATION DOES NOT HAVE SUFFICIENT      2,273        

FINANCIAL ASSETS TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT    2,274        

HOLDERS WHO HAVE SECURITY ENTITLEMENTS WITH RESPECT TO A           2,275        

FINANCIAL ASSET AND ITS OBLIGATION TO A CREDITOR OF THE CLEARING   2,276        

CORPORATION WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET,   2,277        

THE CLAIM OF THE CREDITOR HAS PRIORITY OVER THE CLAIMS OF                       

ENTITLEMENT HOLDERS.                                               2,278        

      Sec. 1309.01.  (A)  As used in sections 1309.01 to 1309.50   2,287        

                                                          53     

                                                                 
of the Revised Code, unless the context otherwise requires:        2,288        

      (1)  "Account debtor" means the person who is obligated on   2,290        

an account, chattel paper, or general intangible.                  2,291        

      (2)  "Chattel paper" means a writing or writings which       2,293        

evidence both a monetary obligation and a security interest in or  2,294        

a lease of specific goods, but a charter or other contract         2,295        

involving the use or hire of a vessel is not chattel paper. When   2,296        

a transaction is evidenced both by such a security agreement or a  2,297        

lease and by an instrument or a series of instruments, the group   2,298        

of writings taken together constitutes chattel paper.              2,299        

      (3)  "Collateral" means the property subject to a security   2,301        

interest, and includes accounts and chattel paper which have been  2,302        

sold.                                                              2,303        

      (4)  "Debtor" means the person who owes payment or other     2,305        

performance of the obligations secured, whether or not he THE      2,306        

PERSON owns or has rights in the collateral, and includes the      2,307        

seller of accounts or chattel paper.  Where the debtor and the     2,308        

owner of the collateral are not the same person, the term          2,309        

"debtor" means the owner of the collateral in any provision of     2,310        

sections 1309.01 to 1309.50 of the Revised Code dealing with the   2,311        

collateral, the obligor in any provision dealing with the          2,312        

obligation and may include both where the context so requires.     2,313        

      (5)  "Deposit account" means a demand, time, savings,        2,315        

passbook or like account maintained with a bank, savings and loan  2,316        

association, credit union, or like organization, other than an     2,317        

account evidenced by a certificate of deposit.                     2,318        

      (6)  "Document" means document of title as defined in        2,320        

division (O) of section 1301.01 of the Revised Code, and a         2,321        

receipt of the kind described in division (B) of section 1307.06   2,322        

of the Revised Code.                                               2,323        

      (7)  "Encumbrance" includes real estate mortgages and other  2,325        

liens on real estate and all other rights in real estate that are  2,326        

not ownership interests.                                           2,327        

      (8)  "Goods" includes all things which are movable at the    2,329        

                                                          54     

                                                                 
time the security interest attaches or which are fixtures under    2,330        

section 1309.32 of the Revised Code, but does not include money,   2,331        

documents, instruments, INVESTMENT PROPERTY, COMMODITY CONTRACTS,  2,333        

accounts, chattel paper, general intangibles, or minerals or the   2,334        

like, including oil and gas, before extraction.  "Goods" also      2,335        

include standing timber which is to be cut and removed under a     2,336        

conveyance or contract for sale, the unborn young of animals, and  2,337        

growing crops.                                                                  

      (9)  "Instrument" means a negotiable instrument as defined   2,339        

in section 1303.03 of the Revised Code, or a certificated          2,340        

security as defined in section 1308.01 of the Revised Code, or     2,341        

any other writing which evidences a right to the payment of money  2,342        

and is not itself a security agreement or lease and is of a type   2,343        

which is in ordinary course of business transferred by delivery    2,344        

with any necessary indorsement or assignment.  "INSTRUMENT" DOES   2,345        

NOT INCLUDE INVESTMENT PROPERTY.                                   2,347        

      (10)  "Mortgage" means a consensual interest created by a    2,349        

real estate mortgage, a trust deed on real estate, or the like.    2,350        

      (11)  An advance is made "pursuant to commitment" if the     2,352        

secured party has bound himself ITSELF to make it, whether or not  2,354        

a subsequent event of default or other event not within his THE                 

SECURED PARTY'S control has relieved or may relieve him THE        2,355        

SECURED PARTY from his THE SECURED PARTY'S obligation.             2,356        

      (12)  "Security agreement" means an agreement which creates  2,358        

or provides for a security interest.                               2,359        

      (13)  "Secured party" means a lender, seller, or other       2,361        

person in whose favor there is a security interest, including a    2,362        

person to whom accounts or chattel paper have been sold.  When     2,363        

the holders of obligations issued under an indenture of trust,     2,364        

equipment trust agreement, or the like are represented by a        2,365        

trustee or other person, the representative is the secured party.  2,366        

      (14)  "Transmitting utility" means any person primarily      2,368        

engaged in the railroad, street railway, or trolley bus business,  2,369        

the electric or electronic communications business, the            2,370        

                                                          55     

                                                                 
transmission of goods by pipeline, or the transmission or the      2,371        

production and transmission of electricity, steam, gas, or water,  2,372        

or the provision of sewer service.                                 2,373        

      (15)  "Account" means any right to payment for goods sold    2,375        

or leased or for services rendered which is not evidenced by an    2,376        

instrument or chattel paper, whether or not it has been earned by  2,377        

performance.                                                       2,378        

      (16)  "General intangible INTANGIBLES" means any personal    2,380        

property, including things in action, other than goods, accounts,  2,382        

chattel paper, documents, instruments, INVESTMENT PROPERTY, and    2,383        

money.  All rights to payment earned or unearned under a charter   2,385        

or other contract involving the use or hire of a vessel and all    2,386        

rights incident to the charter or contract are accounts.           2,387        

      (B)  Other definitions applying to sections 1309.01 to       2,389        

1309.50 of the Revised Code are:                                   2,390        

      (1)  "Attach," as defined in section 1309.14 of the Revised  2,392        

Code;                                                              2,393        

      (2)  "Construction mortgage," as defined in section 1309.32  2,395        

of the Revised Code;                                               2,396        

      (3)  "Consumer goods," as defined in section 1309.07 of the  2,398        

Revised Code;                                                      2,399        

      (4)  "Equipment," as defined in section 1309.07 of the       2,401        

Revised Code;                                                      2,402        

      (5)  "Farm products," as defined in section 1309.07 of the   2,404        

Revised Code;                                                      2,405        

      (6)  "Fixture," as defined in section 1309.32 of the         2,407        

Revised Code;                                                      2,408        

      (7)  "Fixture filing," as defined in section 1309.32 of the  2,410        

Revised Code;                                                      2,411        

      (8)  "Inventory," as defined in section 1309.07 of the       2,413        

Revised Code;                                                      2,414        

      (9)  "Lien creditor," as defined in section 1309.20 of the   2,416        

Revised Code;                                                      2,417        

      (10)  "Proceeds," as defined in section 1309.25 of the       2,419        

                                                          56     

                                                                 
Revised Code;                                                      2,420        

      (11)  "Purchase money security interest," as defined in      2,422        

section 1309.05 of the Revised Code;                               2,423        

      (12)  "COMMODITY CONTRACT," "COMMODITY CUSTOMER,"            2,425        

"COMMODITY INTERMEDIARY," "CONTROL," AND "INVESTMENT PROPERTY,"    2,426        

AS DEFINED IN SECTION 1309.112 OF THE REVISED CODE;                2,427        

      (13)  "United States," as defined in section 1309.03 of the  2,429        

Revised Code.                                                      2,430        

      (C)  As used in sections 1309.01 to 1309.50 of the Revised   2,432        

Code, "check" and "note" have the meaning set forth in section     2,433        

1303.03 of the Revised Code; "contract for sale" and "sale" have   2,434        

the meaning set forth in section 1302.01 of the Revised Code; and  2,435        

"holder in due course" has the meaning set forth in section        2,436        

1303.31 of the Revised Code.                                       2,437        

      (D)  The terms and principles of construction and            2,439        

interpretation set forth in sections 1301.01 to 1301.14 of the     2,440        

Revised Code are applicable to sections 1309.01 to 1309.50 of the  2,441        

Revised Code.                                                      2,442        

      Sec. 1309.03.  (A)  Documents, instruments, and ordinary     2,451        

goods:                                                             2,452        

      (1)  This division applies to documents and instruments and  2,454        

to goods other than those covered by a certificate of title        2,455        

described in division (B) of this section, mobile goods described  2,456        

in division (C) of this section, and minerals described in         2,457        

division (E) of this section.                                      2,458        

      (2)  Except as otherwise provided in this division,          2,460        

perfection and the effect of perfection or nonperfection of a      2,461        

security interest in collateral are governed by the law of the     2,462        

jurisdiction where the collateral is when the last event occurs    2,463        

on which is based the assertion that the security interest is      2,464        

perfected or unperfected.                                          2,465        

      (3)  If the parties to a transaction creating a purchase     2,467        

money security interest in goods in one jurisdiction understand    2,468        

at the time that the security interest attaches that the goods     2,469        

                                                          57     

                                                                 
will be kept in another jurisdiction, then the law of the other    2,470        

jurisdiction governs the perfection and the effect of perfection   2,471        

or nonperfection of the security interest from the time it         2,472        

attaches until thirty days after the debtor receives possession    2,473        

of the goods and thereafter if the goods are taken to the other    2,474        

jurisdiction before the end of the thirty-day period.              2,475        

      (4)  When collateral is brought into and kept in this state  2,477        

while subject to a security interest perfected under the law of    2,478        

the jurisdiction from which the collateral was removed, the        2,479        

security interest remains perfected, but if action is required by  2,480        

sections 1309.20 to 1309.37 of the Revised Code to perfect the     2,481        

security interest:                                                 2,482        

      (a)  If the action is not taken before the expiration of     2,484        

the period of perfection in the other jurisdiction or the end of   2,485        

four months after the collateral is brought into this state,       2,486        

whichever period first expires, the security interest becomes      2,487        

unperfected at the end of that period and is thereafter deemed to  2,488        

have been unperfected as against a person who became a purchaser   2,489        

after removal;                                                     2,490        

      (b)  If the action is taken before the expiration of the     2,492        

period specified in division (A)(4)(a) of this section, the        2,493        

security interest continues perfected thereafter;                  2,494        

      (c)  For the purpose of priority over a buyer of consumer    2,496        

goods, division (B) of section 1309.26 of the Revised Code, the    2,497        

period of the effectiveness of a filing in the jurisdiction from   2,498        

which the collateral is removed is governed by the rules with      2,499        

respect to perfection in divisions (A)(4)(a) and (b) of this       2,500        

section.                                                           2,501        

      (B)  Certificate of title.                                   2,503        

      (1)  This division applies to goods covered by a             2,505        

certificate of title issued under a statute of this state or of    2,506        

another jurisdiction under the law of which indication of a        2,507        

security interest on the certificate is required as a condition    2,508        

of perfection.                                                     2,509        

                                                          58     

                                                                 
      (2)  Except as otherwise provided in this division,          2,511        

perfection and the effect of perfection or nonperfection of the    2,512        

security interest are governed by the law, including the conflict  2,513        

of laws rules, of the jurisdiction issuing the certificate until   2,514        

four months after the goods are removed from that jurisdiction     2,515        

and thereafter until the goods are registered in another           2,516        

jurisdiction, but in any event not beyond surrender of the         2,517        

certificate.  After the expiration of that period, the goods are   2,518        

not covered by the certificate of title within the meaning of      2,519        

this section.                                                      2,520        

      (3)  Except with respect to the rights of a buyer described  2,522        

in division (B)(4) of this section a security interest, perfected  2,523        

in another jurisdiction otherwise than by notation on a            2,524        

certificate of title, in goods brought into this state and         2,525        

thereafter covered by a certificate of title issued by this state  2,526        

is subject to the rules stated in division (A)(4) of this          2,527        

section.                                                           2,528        

      (4)  If goods are brought into this state while a security   2,530        

interest therein is perfected in any manner under the law of the   2,531        

jurisdiction from which the goods are removed and a certificate    2,532        

of title is issued by this state and the certificate does not      2,533        

show that the goods are subject to the security interest or that   2,534        

they may be subject to security interests not shown on the         2,535        

certificate, the security interest is subordinate to the rights    2,536        

of a buyer of the goods who is not in the business of selling      2,537        

goods of that kind to the extent that he THE BUYER gives value     2,538        

and receives delivery of the goods after issuance of the           2,539        

certificate and without knowledge of the security interest.        2,540        

      (C)  Accounts, general intangibles, and mobile goods.        2,542        

      (1)  This division applies to accounts, other than an        2,544        

account described in division (E) of this section on minerals,     2,545        

and general intangibles, other than uncertificated securities,     2,546        

and to goods which are mobile and which are of a type normally     2,547        

used in more than one jurisdiction, such as motor vehicles,        2,548        

                                                          59     

                                                                 
trailers, rolling stock, airplanes, shipping containers, road      2,549        

building and construction machinery, and commercial harvesting     2,550        

machinery and the like, if the goods are equipment or are          2,551        

inventory leased or held for lease by the debtor to others, and    2,552        

are not covered by a certificate of title described in division    2,553        

(B) of this section.                                               2,554        

      (2)  The law, including the conflict of laws rules, of the   2,556        

jurisdiction in which the debtor is located governs the            2,557        

perfection and the effect of perfection or nonperfection of the    2,558        

security interest.                                                 2,559        

      (3)  If, however, the debtor is located in a jurisdiction    2,561        

which is not a part of the United States, and which does not       2,562        

provide for perfection of the security interest by filing or       2,563        

recording in that jurisdiction, the law of the jurisdiction in     2,564        

the United States in which the debtor has its major executive      2,565        

office in the United States governs the perfection and the effect  2,566        

of perfection or nonperfection of the security interest through    2,567        

filing.  In the alternative, if the debtor is located in a         2,568        

jurisdiction which is not a part of the United States or Canada    2,569        

and the collateral is accounts or general intangibles for money    2,570        

due or to become due, the security interest may be perfected by    2,571        

notification to the account debtor.  As used in this division,     2,572        

"United States" includes its territories and possessions and the   2,573        

Commonwealth of Puerto Rico.                                       2,574        

      (4)  A debtor shall be deemed located at his THE DEBTOR'S    2,576        

place of business if he THE DEBTOR has one, at his THE DEBTOR'S    2,578        

chief executive office if he DEBTOR has more than one place of     2,579        

business; otherwise at his THE DEBTOR'S residence.  If, however,   2,580        

the debtor is a foreign air carrier under the "Federal Aviation                 

Act of 1958," as amended, it shall be deemed located at the        2,582        

designated office of the agent upon whom service of process may    2,583        

be made on behalf of the foreign air carrier.                                   

      (5)  A security interest perfected under the law of the      2,585        

jurisdiction of the location of the debtor is perfected until the  2,586        

                                                          60     

                                                                 
expiration of four months after a change of the debtor's location  2,587        

to another jurisdiction, or until perfection would have ceased by  2,588        

the law of the first jurisdiction, whichever period first          2,589        

expires.  Unless perfected in the new jurisdiction before the end  2,590        

of that period, it becomes unperfected thereafter and is deemed    2,591        

to have been unperfected as against a person who became a          2,592        

purchaser after the change.                                        2,593        

      (D)  Chattel Paper.                                          2,595        

      The rules stated for goods in division (A) of this section   2,597        

apply to a possessory security interest in chattel paper.  The     2,598        

rule stated for accounts in division (C) of this section applies   2,599        

to a nonpossessory security in chattel paper, but the security     2,600        

interest may not be perfected by notification to the account       2,601        

debtor.                                                            2,602        

      (E)  Minerals.                                               2,604        

      Perfection and the effect of perfection or nonperfection of  2,606        

a security interest which is created by a debtor who has an        2,607        

interest in minerals or the like, including oil and gas, before    2,608        

extraction and which attaches thereto as extracted, or which       2,609        

attaches to an account resulting from the sale thereof at the      2,610        

wellhead or minehead are governed by the law, including the        2,611        

conflict of laws rules, of the jurisdiction wherein the wellhead   2,612        

or minehead is located.                                            2,613        

      (F)  Uncertificated securities INVESTMENT PROPERTY.          2,615        

      The law, including the conflict of laws rules, of the        2,617        

jurisdiction of organization of the issuer governs the perfection  2,618        

and the effect of perfection or non-perfection of a security       2,620        

interest in uncertificated securities.                                          

      (1)  THIS DIVISION APPLIES TO INVESTMENT PROPERTY.           2,622        

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,624        

THIS SECTION, DURING THE TIME THAT A SECURITY CERTIFICATE IS       2,625        

LOCATED IN A JURISDICTION, PERFECTION OF A SECURITY INTEREST, THE  2,626        

EFFECT OF PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A       2,627        

SECURITY INTEREST IN THE CERTIFICATED SECURITY REPRESENTED         2,628        

                                                          61     

                                                                 
THEREBY ARE GOVERNED BY THE LOCAL LAW OF THAT JURISDICTION.        2,629        

      (3)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,631        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,632        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,633        

INTEREST IN AN UNCERTIFICATED SECURITY ARE GOVERNED BY THE LOCAL   2,634        

LAW OF THE ISSUER'S JURISDICTION AS SPECIFIED IN DIVISION (D) OF   2,635        

SECTION 1308.05 OF THE REVISED CODE.                                            

      (4)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,637        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,638        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,639        

INTEREST IN A SECURITY ENTITLEMENT OR SECURITIES ACCOUNT ARE       2,640        

GOVERNED BY THE LOCAL LAW OF THE SECURITIES INTERMEDIARY'S         2,641        

JURISDICTION AS SPECIFIED IN DIVISION (E) OF SECTION 1308.05 OF    2,642        

THE REVISED CODE.                                                               

      (5)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,644        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,645        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,646        

INTEREST IN A COMMODITY CONTRACT OR COMMODITY ACCOUNT ARE          2,647        

GOVERNED BY THE LOCAL LAW OF THE COMMODITY INTERMEDIARY'S          2,648        

JURISDICTION.  THE FOLLOWING RULES DETERMINE A "COMMODITY                       

INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS DIVISION:        2,649        

      (a)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,651        

COMMODITY CUSTOMER SPECIFIES THAT IT IS GOVERNED BY THE LAW OF A   2,652        

PARTICULAR JURISDICTION, THAT JURISDICTION IS THE COMMODITY        2,653        

INTERMEDIARY'S JURISDICTION.                                                    

      (b)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,655        

COMMODITY CUSTOMER DOES NOT SPECIFY THE GOVERNING LAW AS PROVIDED  2,656        

IN DIVISION (F)(5)(a) OF THIS SECTION, BUT EXPRESSLY SPECIFIES     2,657        

THAT THE COMMODITY ACCOUNT IS MAINTAINED AT AN OFFICE IN A         2,658        

PARTICULAR JURISDICTION, THAT JURISDICTION IS THE COMMODITY        2,659        

INTERMEDIARY'S JURISDICTION.                                                    

      (c)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,661        

COMMODITY CUSTOMER DOES NOT SPECIFY A JURISDICTION AS PROVIDED IN  2,662        

DIVISION (F)(5)(a) OR (b) OF THIS SECTION, THE COMMODITY           2,664        

                                                          62     

                                                                 
INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN WHICH IS                     

LOCATED THE OFFICE IDENTIFIED IN AN ACCOUNT STATEMENT AS THE       2,665        

OFFICE SERVING THE COMMODITY CUSTOMER'S ACCOUNT.                   2,666        

      (d)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,668        

COMMODITY CUSTOMER DOES NOT SPECIFY A JURISDICTION AS PROVIDED IN  2,669        

DIVISION (F)(5)(a) OR (b) OF THIS SECTION AND AN ACCOUNT           2,671        

STATEMENT DOES NOT IDENTIFY AN OFFICE SERVING THE COMMODITY                     

CUSTOMER'S ACCOUNT AS PROVIDED IN DIVISION (F)(5)(c) OF THIS       2,672        

SECTION, THE COMMODITY INTERMEDIARY'S JURISDICTION IS THE          2,673        

JURISDICTION IN WHICH IS LOCATED THE CHIEF EXECUTIVE OFFICE OF     2,674        

THE COMMODITY INTERMEDIARY.                                                     

      (6)  PERFECTION OF A SECURITY INTEREST BY FILING, AUTOMATIC  2,676        

PERFECTION OF A SECURITY INTEREST IN INVESTMENT PROPERTY GRANTED   2,677        

BY A BROKER OR SECURITIES INTERMEDIARY, AND AUTOMATIC PERFECTION   2,678        

OF A SECURITY INTEREST IN A COMMODITY CONTRACT OR COMMODITY        2,679        

ACCOUNT GRANTED BY A COMMODITY INTERMEDIARY ARE GOVERNED BY THE    2,680        

LOCAL LAW OF THE JURISDICTION IN WHICH THE DEBTOR IS LOCATED.                   

      Sec. 1309.112.  (A)  IN THIS CHAPTER:                        2,682        

      (1)  "COMMODITY ACCOUNT" MEANS AN ACCOUNT MAINTAINED BY A    2,684        

COMMODITY INTERMEDIARY IN WHICH A COMMODITY CONTRACT IS CARRIED    2,685        

FOR A COMMODITY CUSTOMER.                                          2,686        

      (2)  "COMMODITY CONTRACT" MEANS A COMMODITY FUTURES          2,688        

CONTRACT, AN OPTION ON A COMMODITY FUTURES CONTRACT, A COMMODITY   2,689        

OPTION, OR OTHER CONTRACT THAT, IN EACH CASE, IS:                  2,690        

      (a)  TRADED ON OR SUBJECT TO THE RULES OF A BOARD OF TRADE   2,692        

THAT HAS BEEN DESIGNATED AS A CONTRACT MARKET FOR SUCH A CONTRACT  2,693        

PURSUANT TO THE FEDERAL COMMODITIES LAWS; OR                       2,694        

      (b)  TRADED ON A FOREIGN COMMODITY BOARD OF TRADE,           2,696        

EXCHANGE, OR MARKET, AND IS CARRIED ON THE BOOKS OF A COMMODITY    2,697        

INTERMEDIARY FOR A COMMODITY CUSTOMER.                             2,698        

      (3)  "COMMODITY CUSTOMER" MEANS A PERSON FOR WHOM A          2,700        

COMMODITY INTERMEDIARY CARRIES A COMMODITY CONTRACT ON ITS BOOKS.  2,701        

      (4)  "COMMODITY INTERMEDIARY" MEANS:                         2,703        

      (a)  A PERSON WHO IS REGISTERED AS A FUTURES COMMISSION      2,705        

                                                          63     

                                                                 
MERCHANT UNDER THE FEDERAL COMMODITIES LAWS; OR                    2,706        

      (b)  A PERSON WHO IN THE ORDINARY COURSE OF ITS BUSINESS     2,708        

PROVIDES CLEARANCE OR SETTLEMENT SERVICES FOR A BOARD OF TRADE     2,709        

THAT HAS BEEN DESIGNATED AS A CONTRACT MARKET PURSUANT TO THE      2,710        

FEDERAL COMMODITIES LAWS.                                                       

      (5)  "CONTROL" WITH RESPECT TO A CERTIFICATED SECURITY,      2,712        

UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT HAS THE MEANING   2,713        

SPECIFIED IN SECTION 1308.24 OF THE REVISED CODE.  A SECURED       2,714        

PARTY HAS CONTROL OVER A COMMODITY CONTRACT IF BY AGREEMENT AMONG  2,715        

THE COMMODITY CUSTOMER, THE COMMODITY INTERMEDIARY, AND THE                     

SECURED PARTY, THE COMMODITY INTERMEDIARY HAS AGREED THAT IT WILL  2,716        

APPLY ANY VALUE DISTRIBUTED ON ACCOUNT OF THE COMMODITY CONTRACT   2,717        

AS DIRECTED BY THE SECURED PARTY WITHOUT FURTHER CONSENT BY THE    2,718        

COMMODITY CUSTOMER.  IF A COMMODITY CUSTOMER GRANTS A SECURITY     2,719        

INTEREST IN A COMMODITY CONTRACT TO ITS OWN COMMODITY              2,720        

INTERMEDIARY, THE COMMODITY INTERMEDIARY AS SECURED PARTY HAS                   

CONTROL.  A SECURED PARTY HAS CONTROL OVER A SECURITIES ACCOUNT    2,721        

OR COMMODITY ACCOUNT IF THE SECURED PARTY HAS CONTROL OVER ALL     2,722        

SECURITY ENTITLEMENTS OR COMMODITY CONTRACTS CARRIED IN THE        2,723        

SECURITIES ACCOUNT OR COMMODITY ACCOUNT.                                        

      (6)  "INVESTMENT PROPERTY" MEANS:                            2,725        

      (a)  A SECURITY, WHETHER CERTIFICATED OR UNCERTIFICATED;     2,727        

      (b)  A SECURITY ENTITLEMENT;                                 2,729        

      (c)  A SECURITIES ACCOUNT;                                   2,731        

      (d)  A COMMODITY CONTRACT; OR                                2,733        

      (e)  A COMMODITY ACCOUNT.                                    2,735        

      (B)  ATTACHMENT OR PERFECTION OF A SECURITY INTEREST IN A    2,737        

SECURITIES ACCOUNT IS ALSO ATTACHMENT OR PERFECTION OF A SECURITY  2,738        

INTEREST IN ALL SECURITY ENTITLEMENTS CARRIED IN THE SECURITIES    2,739        

ACCOUNT.  ATTACHMENT OR PERFECTION OF A SECURITY INTEREST IN A     2,740        

COMMODITY ACCOUNT IS ALSO ATTACHMENT OR PERFECTION OF A SECURITY   2,741        

INTEREST IN ALL COMMODITY CONTRACTS CARRIED IN THE COMMODITY       2,742        

ACCOUNT.                                                                        

      (C)  A DESCRIPTION OF COLLATERAL IN A SECURITY AGREEMENT OR  2,744        

                                                          64     

                                                                 
FINANCING STATEMENT IS SUFFICIENT TO CREATE OR PERFECT A SECURITY  2,745        

INTEREST IN A CERTIFICATED SECURITY, UNCERTIFICATED SECURITY,      2,746        

SECURITY ENTITLEMENT, SECURITIES ACCOUNT, COMMODITY CONTRACT, OR   2,747        

COMMODITY ACCOUNT WHETHER IT DESCRIBES THE COLLATERAL BY THOSE     2,748        

TERMS, OR AS INVESTMENT PROPERTY, OR BY DESCRIPTION OF THE         2,749        

UNDERLYING SECURITY, FINANCIAL ASSET, OR COMMODITY CONTRACT.  A    2,750        

DESCRIPTION OF INVESTMENT PROPERTY COLLATERAL IN A SECURITY                     

AGREEMENT OR FINANCING STATEMENT IS SUFFICIENT IF IT IDENTIFIES    2,751        

THE COLLATERAL BY SPECIFIC LISTING, BY CATEGORY, BY QUANTITY, BY   2,752        

A COMPUTATIONAL OR ALLOCATIONAL FORMULA OR PROCEDURE, OR BY ANY    2,753        

OTHER METHOD, IF THE IDENTITY OF THE COLLATERAL IS OBJECTIVELY     2,754        

DETERMINABLE.                                                                   

      (D)  PERFECTION OF A SECURITY INTEREST IN INVESTMENT         2,756        

PROPERTY IS GOVERNED BY THE FOLLOWING RULES:                       2,757        

      (1)  A SECURITY INTEREST IN INVESTMENT PROPERTY MAY BE       2,759        

PERFECTED BY CONTROL.                                              2,760        

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (D)(3) AND    2,762        

(4) OF THIS SECTION, A SECURITY INTEREST IN INVESTMENT PROPERTY    2,763        

MAY BE PERFECTED BY FILING.                                        2,764        

      (3)  IF THE DEBTOR IS A BROKER OR SECURITIES INTERMEDIARY,   2,766        

A SECURITY INTEREST IN INVESTMENT PROPERTY IS PERFECTED WHEN IT    2,767        

ATTACHES.  THE FILING OF A FINANCING STATEMENT WITH RESPECT TO A   2,768        

SECURITY INTEREST IN INVESTMENT PROPERTY GRANTED BY A BROKER OR    2,769        

SECURITIES INTERMEDIARY HAS NO EFFECT FOR PURPOSES OF PERFECTION   2,770        

OR PRIORITY WITH RESPECT TO THAT SECURITY INTEREST.                             

      (4)  IF A DEBTOR IS A COMMODITY INTERMEDIARY, A SECURITY     2,772        

INTEREST IN A COMMODITY CONTRACT OR A COMMODITY ACCOUNT IS         2,773        

PERFECTED WHEN IT ATTACHES.  THE FILING OF A FINANCING STATEMENT   2,774        

WITH RESPECT TO A SECURITY INTEREST IN A COMMODITY CONTRACT OR A   2,775        

COMMODITY ACCOUNT GRANTED BY A COMMODITY INTERMEDIARY HAS NO       2,776        

EFFECT FOR PURPOSES OF PERFECTION OR PRIORITY WITH RESPECT TO                   

THAT SECURITY INTEREST.                                            2,777        

      (E)  PRIORITY BETWEEN CONFLICTING SECURITY INTERESTS IN THE  2,779        

SAME INVESTMENT PROPERTY IS GOVERNED BY THE FOLLOWING RULES:       2,780        

                                                          65     

                                                                 
      (1)  A SECURITY INTEREST OF A SECURED PARTY WHO HAS CONTROL  2,782        

OVER INVESTMENT PROPERTY HAS PRIORITY OVER A SECURITY INTEREST OF  2,783        

A SECURED PARTY WHO DOES NOT HAVE CONTROL OVER THE INVESTMENT      2,784        

PROPERTY.                                                                       

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (E)(3) AND    2,786        

(4) OF THIS SECTION, CONFLICTING SECURITY INTERESTS OF SECURED     2,787        

PARTIES EACH OF WHOM HAS CONTROL RANK EQUALLY.                     2,788        

      (3)  EXCEPT AS OTHERWISE AGREED BY THE SECURITIES            2,790        

INTERMEDIARY, A SECURITY INTEREST IN A SECURITY ENTITLEMENT OR A   2,791        

SECURITIES ACCOUNT GRANTED TO THE DEBTOR'S OWN SECURITIES          2,792        

INTERMEDIARY HAS PRIORITY OVER ANY SECURITY INTEREST GRANTED BY    2,793        

THE DEBTOR TO ANOTHER SECURED PARTY.                                            

      (4)  EXCEPT AS OTHERWISE AGREED BY THE COMMODITY             2,795        

INTERMEDIARY, A SECURITY INTEREST IN A COMMODITY CONTRACT OR A     2,796        

COMMODITY ACCOUNT GRANTED TO THE DEBTOR'S OWN COMMODITY            2,797        

INTERMEDIARY HAS PRIORITY OVER ANY SECURITY INTEREST GRANTED BY    2,798        

THE DEBTOR TO ANOTHER SECURED PARTY.                                            

      (5)  CONFLICTING SECURITY INTERESTS GRANTED BY A BROKER, A   2,800        

SECURITIES INTERMEDIARY, OR A COMMODITY INTERMEDIARY WHICH ARE     2,801        

PERFECTED WITHOUT CONTROL RANK EQUALLY.                            2,802        

      (6)  IN ALL OTHER CASES, PRIORITY BETWEEN CONFLICTING        2,804        

SECURITY INTERESTS IN INVESTMENT PROPERTY IS GOVERNED BY           2,805        

DIVISIONS (E), (F), AND (G) OF SECTION 1309.31 OF THE REVISED      2,806        

CODE.  DIVISION (D) OF SECTION 1309.31 OF THE REVISED CODE DOES    2,807        

NOT APPLY TO INVESTMENT PROPERTY.                                               

      (F)  IF A SECURITY CERTIFICATE IN REGISTERED FORM IS         2,809        

DELIVERED TO A SECURED PARTY PURSUANT TO AGREEMENT, A WRITTEN      2,810        

SECURITY AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR               2,811        

ENFORCEABILITY OF THE SECURITY INTEREST, DELIVERY SUFFICES FOR     2,812        

PERFECTION OF THE SECURITY INTEREST, AND THE SECURITY INTEREST                  

HAS PRIORITY OVER A CONFLICTING SECURITY INTEREST PERFECTED BY     2,813        

MEANS OTHER THAN CONTROL, EVEN IF A NECESSARY INDORSEMENT IS       2,814        

LACKING.                                                                        

      Sec. 1309.113.  (A)  IF A PERSON BUYS A FINANCIAL ASSET      2,816        

                                                          66     

                                                                 
THROUGH A SECURITIES INTERMEDIARY IN A TRANSACTION IN WHICH THE    2,817        

BUYER IS OBLIGATED TO PAY THE PURCHASE PRICE TO THE SECURITIES     2,818        

INTERMEDIARY AT THE TIME OF THE PURCHASE, AND THE SECURITIES       2,819        

INTERMEDIARY CREDITS THE FINANCIAL ASSET TO THE BUYER'S            2,820        

SECURITIES ACCOUNT BEFORE THE BUYER PAYS THE SECURITIES                         

INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS A SECURITY INTEREST  2,821        

IN THE BUYER'S SECURITY ENTITLEMENT SECURING THE BUYER'S           2,822        

OBLIGATION TO PAY.  A SECURITY AGREEMENT IS NOT REQUIRED FOR       2,823        

ATTACHMENT OR ENFORCEABILITY OF THE SECURITY INTEREST, AND THE     2,824        

SECURITY INTEREST IS AUTOMATICALLY PERFECTED.                                   

      (B)  IF A CERTIFICATED SECURITY, OR OTHER FINANCIAL ASSET    2,826        

REPRESENTED BY A WRITING WHICH IN THE ORDINARY COURSE OF BUSINESS  2,827        

IS TRANSFERRED BY DELIVERY WITH ANY NECESSARY INDORSEMENT OR       2,828        

ASSIGNMENT IS DELIVERED PURSUANT TO AN AGREEMENT BETWEEN PERSONS   2,829        

IN THE BUSINESS OF DEALING WITH SUCH SECURITIES OR FINANCIAL       2,830        

ASSETS AND THE AGREEMENT CALLS FOR DELIVERY VERSUS PAYMENT, THE    2,831        

PERSON DELIVERING THE CERTIFICATE OR OTHER FINANCIAL ASSET HAS A   2,832        

SECURITY INTEREST IN THE CERTIFICATED SECURITY OR OTHER FINANCIAL               

ASSET SECURING THE SELLER'S RIGHT TO RECEIVE PAYMENT.  A SECURITY  2,833        

AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR ENFORCEABILITY OF THE  2,834        

SECURITY INTEREST, AND THE SECURITY INTEREST IS AUTOMATICALLY      2,835        

PERFECTED.                                                                      

      Sec. 1309.14.  (A)  Subject to the provisions of section     2,844        

1304.20 of the Revised Code on the security interest of a          2,845        

collecting bank, section 1308.36 SECTIONS 1309.112 AND 1309.113    2,847        

of the Revised Code on security interests in securities            2,848        

INVESTMENT PROPERTY, and section 1309.11 of the Revised Code on a  2,850        

security interest arising under sections 1302.01 to 1302.98 of     2,851        

the Revised Code, a security interest is not enforceable against   2,852        

the debtor or third parties with respect to the collateral and     2,853        

does not attach unless:                                                         

      (1)  The collateral is in the possession of the secured      2,855        

party pursuant to agreement, THE COLLATERAL IS INVESTMENT          2,856        

PROPERTY AND THE SECURED PARTY HAS CONTROL PURSUANT TO AGREEMENT,  2,857        

                                                          67     

                                                                 
or the debtor has signed a security agreement which contains a     2,859        

description of the collateral and in addition, when the security   2,860        

interest covers crops growing or to be grown or timber to be cut,  2,861        

a description of the land concerned; and                           2,862        

      (2)  Value has been given; and                               2,864        

      (3)  The debtor has rights in the collateral.                2,866        

      (B)  A security interest attaches when it becomes            2,868        

enforceable against the debtor with respect to the collateral.     2,869        

Attachment occurs as soon as all of the events specified in        2,870        

division (A) of this section have taken place unless explicit      2,871        

agreement postpones the time of attaching.                         2,872        

      (C)  Unless otherwise agreed, a security agreement gives     2,874        

the secured party the rights to proceeds provided by section       2,875        

1309.25 of the Revised Code.                                       2,876        

      (D)  A transaction although subject to sections 1309.01 to   2,878        

1309.50 of the Revised Code, is also subject to sections 1317.01   2,879        

to 1317.99 and 1321.01 to 1321.33 of the Revised Code, and         2,880        

divisions (A), (B), and (C) of section 1321.99 of the Revised      2,881        

Code and in the event of conflict between the provisions of        2,882        

sections 1309.01 to 1309.50, and 1317.01 to 1317.99, 1321.01 to    2,883        

1321.33 of the Revised Code, and divisions (A), (B), and (C) of    2,884        

section 1321.99 of the Revised Code, the provisions of sections    2,885        

1317.01 to 1317.99, 1321.01 to 1321.33 of the Revised Code, and    2,886        

divisions (A), (B), and (C) of section 1321.99 of the Revised      2,887        

Code shall prevail.  Failure to comply with such provisions has    2,888        

only the effect provided therein.                                  2,889        

      Sec. 1309.20.  (A)  Except as otherwise provided in          2,898        

division (B) of this section, an unperfected security interest is  2,899        

subordinate to the rights of:                                      2,900        

      (1)  Persons entitled to priority under section 1309.31 of   2,902        

the Revised Code;                                                  2,903        

      (2)  A person who becomes a lien creditor before the         2,905        

security interest is perfected;                                    2,906        

      (3)  In the case of goods, instruments, documents, and       2,908        

                                                          68     

                                                                 
chattel paper, a person who is not a secured party and who is a    2,909        

transferee in bulk or other buyer not in ordinary course of        2,910        

business, or is a buyer of farm products in ordinary course of     2,911        

business, to the extent that he THE PERSON gives value and         2,912        

receives delivery of the collateral without knowledge of the       2,913        

security interest and before it is perfected;                      2,915        

      (4)  In the case of accounts and, general intangibles, AND   2,917        

INVESTMENT PROPERTY, a person who is not a secured party and who   2,919        

is a transferee to the extent that he THE PERSON gives value       2,920        

without knowledge of the security interest and before it is        2,921        

perfected.                                                                      

      (B)  If the secured party files with respect to a purchase   2,923        

money security interest before or within twenty days after the     2,924        

debtor receives possession of the collateral he THE SECURED PARTY  2,926        

takes priority over the rights of a transferee in bulk or of a                  

lien creditor which arise between the time the security interest   2,927        

attaches and the time of filing.                                   2,928        

      (C)  A "lien creditor" means a creditor who has acquired a   2,930        

lien on the property involved by attachment, levy or the like and  2,931        

includes an assignee for benefit of creditors from the time of     2,932        

assignment, and a trustee in bankruptcy from the date of the       2,933        

filing of the petition or a receiver in equity from the time of    2,934        

appointment.                                                       2,935        

      (D)  A person who becomes a lien creditor while a security   2,937        

interest is perfected takes subject to the security interest only  2,938        

to the extent that it secures advances made before he THE PERSON   2,939        

becomes a lien creditor or within forty-five days thereafter or    2,940        

made without knowledge of the lien or pursuant to a commitment     2,941        

entered into without knowledge of the lien.                        2,942        

      Sec. 1309.21.  (A)  A financing statement must be filed to   2,951        

perfect all security interests except the following:               2,952        

      (1)  A security interest in collateral in possession of the  2,954        

secured party under section 1309.24 of the Revised Code;           2,955        

      (2)  A security interest temporarily perfected in            2,957        

                                                          69     

                                                                 
instruments, CERTIFICATED SECURITIES, or documents without         2,959        

delivery under section 1309.23 of the Revised Code or in proceeds  2,960        

for a ten-day period under section 1309.25 of the Revised Code;    2,961        

      (3)  A security interest created by an assignment of a       2,963        

beneficial interest in a trust or a decedent's estate;             2,964        

      (4)  A purchase money security interest in consumer goods;   2,966        

but fixture filing is required for a priority over conflicting     2,967        

interests in fixtures to the extent provided in section 1309.32    2,968        

of the Revised Code;                                               2,969        

      (5)  An assignment of accounts which does not alone or in    2,971        

conjunction with other assignments to the same assignee transfer   2,972        

a significant part of the outstanding accounts of the assignor;    2,973        

      (6)  A security interest of a collecting bank as provided    2,975        

in section 1304.20 of the Revised Code, or in securities as        2,976        

provided in section 1308.36 of the Revised Code, or arising under  2,977        

sections 1302.01 to 1302.98 of the Revised Code, or covered in     2,978        

division (C) of this section;                                      2,979        

      (7)  An assignment for the benefit of all the creditors of   2,981        

the transferor, and subsequent transfers by the assignee           2,982        

thereunder;                                                        2,983        

      (8)  A SECURITY INTEREST IN INVESTMENT PROPERTY WHICH IS     2,985        

PERFECTED WITHOUT FILING UNDER SECTION 1309.112 OR 1309.113 OF     2,986        

THE REVISED CODE.                                                               

      (B)  If a secured party assigns a perfected security         2,988        

interest, no filing under sections 1309.01 to 1309.50 of the       2,989        

Revised Code is required in order to continue the perfected        2,990        

status of the security interest against creditors of and           2,991        

transferees from the original debtor.                              2,992        

      (C)  The filing of a financing statement otherwise required  2,994        

by sections 1309.01 to 1309.50 of the Revised Code is not          2,995        

necessary or effective to perfect a security interest in property  2,996        

subject to:                                                        2,997        

      (1)  A statute or treaty of the United States which          2,999        

provides for a national or international registration or a         3,000        

                                                          70     

                                                                 
national or international certificate of title or which specifies  3,001        

a place of filing different from that specified in sections        3,002        

1309.01 to 1309.50 of the Revised Code for filing of the security  3,003        

interest; or                                                       3,004        

      (2)  The following statutes of this state:  sections         3,006        

1548.20, 1701.66, 4505.13 except to the extent provided in         3,007        

division (A) of such section, and 4969.05 of the Revised Code; or  3,008        

      (3)  A certificate of title statute of another jurisdiction  3,010        

under the law of which indication of a security interest on the    3,011        

certificate is required as a condition of perfection, division     3,012        

(B) of section 1309.03 of the Revised Code.                        3,013        

      (D)  Compliance with a statute or treaty described in        3,015        

division (C) of this section is equivalent to the filing of a      3,016        

financing statement under sections 1309.01 to 1309.50 of the       3,017        

Revised Code, and a security interest in property subject to the   3,018        

statute or treaty can be perfected only by compliance therewith    3,019        

except as provided in section 1309.03 of the Revised Code on       3,020        

multiple state transactions.  Duration and renewal of perfection   3,021        

of a security interest perfected by compliance with the statute    3,022        

or treaty are governed by the provisions of the statute or         3,023        

treaty; in other respects the security interest is subject to      3,024        

sections 1309.01 to 1309.50 of the Revised Code.                   3,025        

      Sec. 1309.22.  (A)  A security interest is perfected when    3,034        

it has attached and when all of the applicable steps required for  3,035        

perfection have been taken, as provided in sections 1309.112,      3,036        

1309.21, 1309.23, 1309.24, and 1309.25 of the Revised Code.  If    3,038        

such steps are taken before the security interest attaches, it is               

perfected at the time when it attaches.                            3,039        

      (B)  If a security interest is originally perfected in any   3,041        

way permitted under sections 1309.01 to 1309.50, inclusive, of     3,042        

the Revised Code, and is subsequently perfected in some other way  3,043        

under sections 1309.01 to 1309.50, inclusive, of the Revised       3,044        

Code, without an intermediate period when it was unperfected, the  3,045        

security interest shall be deemed to be perfected continuously     3,046        

                                                          71     

                                                                 
for the purposes of such sections.                                              

      (C)  A security interest by whatever name designated by any  3,048        

law in effect prior to July 1, 1962, which was perfected prior to  3,049        

such date and in connection with which any statement, instrument,  3,050        

document, or notice was filed, refiled, or recorded pursuant to    3,051        

such law, shall, if such law required a further filing, refiling,  3,052        

or recording to continue the perfection of such security           3,053        

interest, continue to be perfected without any further filing,                  

refiling, or recording of any statement, instrument, document, or  3,054        

notice until the date provided by such law or July 1, 1964,        3,055        

whichever date is later and will thereupon lapse, unless a         3,056        

continuation statement has been filed after July 1, 1962, and      3,057        

prior to the lapse of such statement, instrument, document, or     3,058        

notice pursuant to this section.  Section 1309.38 of the Revised                

Code determines the proper place to file such continuation         3,059        

statement and succeeding continuation statements and, except as    3,060        

otherwise provided in this section, division (C) of section        3,061        

1309.40 of the Revised Code applies to and governs the period of   3,062        

effectiveness and the requirements respecting such continuation                 

statements.                                                        3,063        

      Sec. 1309.23.  (A)  A security interest in chattel paper or  3,072        

negotiable documents may be perfected by filing.  A security       3,073        

interest in money or instruments, other than certificated          3,074        

securities or instruments which constitute part of chattel paper,  3,075        

can be perfected only by the secured party's taking possession,    3,076        

except as provided in divisions (D) and (E) of this section and    3,077        

divisions (B) and (C) of section 1309.25 of the Revised Code on    3,078        

proceeds.                                                          3,079        

      (B)  During the period that goods are in the possession of   3,081        

the issuer of a negotiable document therefor, a security interest  3,082        

in the goods is perfected by perfecting a security interest in     3,083        

the document, and any security interest in the goods otherwise     3,084        

perfected during such period is subject thereto.                   3,085        

      (C)  A security interest in goods in the possession of a     3,087        

                                                          72     

                                                                 
bailee other than one who has issued a negotiable document         3,088        

therefor is perfected by issuance of a document in the name of     3,089        

the secured party or by the bailee's receipt of notification of    3,090        

the secured party's interest or by filing as to the goods.         3,091        

      (D)  A security interest in instruments, other than          3,093        

certificated securities, or negotiable documents is perfected      3,094        

without filing or the taking of possession for a period of         3,095        

twenty-one days from the time it attaches to the extent that it    3,096        

arises for new value given under a written security agreement.     3,097        

      (E)  A security interest remains perfected for a period of   3,099        

twenty-one days without filing where a secured party having a      3,100        

perfected security interest in an instrument, other than a         3,101        

certificated security, a negotiable document, or goods in          3,102        

possession of a bailee other than one who has issued a negotiable  3,103        

document therefor:                                                 3,104        

      (1)  Makes available to the debtor the goods or documents    3,106        

representing the goods for the purpose of ultimate sale or         3,107        

exchange or for the purpose of loading, unloading, storing,        3,108        

shipping, trans-shipping, manufacturing, processing, or otherwise  3,109        

dealing with them in a manner preliminary to their sale or         3,110        

exchange, but priority between conflicting security interests in   3,111        

the goods is subject to division (C) of section 1309.31 of the     3,112        

Revised Code; or                                                   3,113        

      (2)  Delivers the instrument OR CERTIFICATED SECURITY to     3,115        

the debtor for the purpose of ultimate sale or exchange or of      3,117        

presentation, collection, renewal, or registration of transfer.    3,118        

      (F)  After the twenty-one day period set forth in divisions  3,120        

(D) and (E) of this section, perfection depends upon compliance    3,121        

with applicable provisions of sections 1309.01 to 1309.50 of the   3,122        

Revised Code.                                                      3,123        

      Sec. 1309.24.  A security interest in letters of credit and  3,132        

advices of credit, as provided in division (B)(1) of section       3,133        

1305.15 of the Revised Code, goods, instruments, other than        3,134        

certificated securities, negotiable documents, money, or chattel   3,135        

                                                          73     

                                                                 
paper may be perfected by the secured party's taking possession    3,136        

of the collateral.  If such collateral other than goods covered    3,137        

by a negotiable document is held by a bailee, the secured party    3,138        

is deemed to have possession from the time the bailee receives     3,139        

notification of the secured party's interest.  A security          3,140        

interest is perfected by possession from the time possession is    3,141        

taken without relation back and continues only so long as          3,142        

possession is retained, unless otherwise specified in sections     3,143        

1309.01 to 1309.50 of the Revised Code.  The security interest     3,144        

may be otherwise perfected as provided in sections 1309.01 to      3,145        

1309.50 of the Revised Code, before or after the period of         3,146        

possession by the secured party.                                   3,147        

      Sec. 1309.25.  (A)  "Proceeds" includes whatever is          3,156        

received upon the sale, exchange, collection, or other             3,157        

disposition of collateral or proceeds.  Insurance payable by       3,158        

reason of loss or damage to the collateral is proceeds, except to  3,159        

the extent that it is payable to a person other than a party to    3,160        

the security agreement.  Moneys ANY PAYMENTS OR DISTRIBUTIONS      3,161        

MADE WITH RESPECT TO INVESTMENT PROPERTY COLLATERAL ARE PROCEEDS.  3,162        

MONEY, checks, deposit accounts, and the like are "cash            3,164        

proceeds."  All other proceeds are "non-cash proceeds."            3,165        

      (B)  Except where sections 1309.01 to 1309.50 of the         3,167        

Revised Code otherwise provide, a security interest continues in   3,168        

collateral notwithstanding sale, exchange, or other disposition    3,169        

thereof unless the disposition was authorized by the secured       3,170        

party in the security agreement or otherwise, and also continues   3,171        

in any identifiable proceeds including collections received by     3,172        

the debtor.                                                        3,173        

      (C)  The security interest in proceeds is a continuously     3,175        

perfected security interest if the interest in the original        3,176        

collateral was perfected but it ceases to be a perfected security  3,177        

interest and becomes unperfected ten days after receipt of the     3,178        

proceeds by the debtor unless:                                     3,179        

      (1)  a A filed financing statement covers the original       3,181        

                                                          74     

                                                                 
collateral and the proceeds are collateral in which a security     3,182        

interest may be perfected by filing in the office or offices       3,183        

where the financing statement has been filed and, if the proceeds  3,184        

are acquired with cash proceeds, the description of the            3,185        

collateral in the financing statement indicates the types of       3,186        

property constituting the proceeds; or                             3,187        

      (2)  a A filed financing statement covers the original       3,189        

collateral and the proceeds are identifiable cash proceeds; or     3,190        

      (3)  the THE ORIGINAL COLLATERAL WAS INVESTMENT PROPERTY     3,192        

AND THE PROCEEDS ARE IDENTIFIABLE CASH PROCEEDS; OR                3,193        

      (4)  THE security interest in the proceeds is perfected      3,195        

before the expiration of the ten day period.  Except as provided   3,196        

in this section, a security interest in proceeds can be perfected  3,197        

only by the methods or under the circumstances permitted in        3,198        

sections 1309.01 to 1309.50 of the Revised Code for original       3,199        

collateral of the same type.                                       3,200        

      (D)  In the event of insolvency proceedings instituted by    3,202        

or against a debtor, a secured party with a perfected security     3,203        

interest in proceeds has a perfected security interest only in     3,204        

the following proceeds:                                            3,205        

      (1)  in IN identifiable non-cash proceeds and in separate    3,207        

deposit accounts containing only proceeds;                         3,208        

      (2)  in IN identifiable cash proceeds in the form of money   3,210        

which is neither commingled with other money nor deposited in a    3,211        

deposit account prior to the insolvency proceedings;               3,212        

      (3)  in IN identifiable cash proceeds in the form of checks  3,214        

and the like which are not deposited in a deposit account prior    3,215        

to the insolvency proceedings; and                                 3,216        

      (4)  in IN all cash and deposit accounts of the debtor in    3,218        

which proceeds have been commingled with other funds, but the      3,219        

perfected security interest under this division is:                3,220        

      (a)  subject SUBJECT to any right of set-off; and            3,222        

      (b)  limited LIMITED to an amount not greater than the       3,224        

amount of any cash proceeds received by the debtor within ten      3,225        

                                                          75     

                                                                 
days before the institution of the insolvency proceedings, less    3,226        

the sum of (i) the payments to the secured party on account of     3,227        

cash proceeds received by the debtor; and (ii) the cash proceeds   3,228        

received by the debtor during such period to which the secured     3,229        

party is entitled under divisions (D)(1) to (3) of this section.   3,230        

      (E)  If a sale of goods results in an account or chattel     3,232        

paper which is transferred by the seller to a secured party, and   3,233        

if the goods are returned to or are repossessed by the seller or   3,234        

the secured party, the following rules determine priorities:       3,235        

      (1)  If the goods were collateral at the time of sale for    3,237        

an indebtedness of the seller which is still unpaid, the original  3,238        

security interest attaches again to the goods and continues as a   3,239        

perfected security interest if it was perfected at the time when   3,240        

the goods were sold.  If the security interest was originally      3,241        

perfected by a filing which is still effective, nothing further    3,242        

is required to continue the perfected status; in any other case,   3,243        

the secured party must take possession of the returned or          3,244        

repossessed goods or must file.                                    3,245        

      (2)  An unpaid transferee of the chattel paper has a         3,247        

security interest in the goods against the transferor.  Such       3,248        

security interest is prior to a security interest asserted under   3,249        

division (E)(1) of this section to the extent that the transferee  3,250        

of the chattel paper was entitled to priority under section        3,251        

1309.27 of the Revised Code.                                       3,252        

      (3)  An unpaid transferee of the account has a security      3,254        

interest in the goods against the transferor.  Such security       3,255        

interest is subordinate to a security interest asserted under      3,256        

division (E)(1) of this section.                                   3,257        

      (4)  A security interest of an unpaid transferee asserted    3,259        

under division (E)(2) or (3) of this section must be perfected     3,260        

for protection against creditors of the transferor and purchasers  3,261        

of the returned or repossessed goods.                              3,262        

      Sec. 1309.28.  Nothing in sections 1309.01 to 1309.50 of     3,271        

the Revised Code, limit LIMITS the rights of a holder in due       3,272        

                                                          76     

                                                                 
course of a negotiable instrument, as defined in section 1303.32   3,274        

of the Revised Code, or a holder to whom a negotiable document of  3,275        

title has been duly negotiated under section 1307.29 of the        3,276        

Revised Code, or a bona fide PROTECTED purchaser of a security     3,277        

under section 1308.17 of the Revised Code, and such holders or     3,279        

purchasers take priority over an earlier security interest even    3,280        

though perfected. Filing under sections 1309.01 to 1309.50 of the  3,281        

Revised Code, does not constitute notice of the security interest  3,282        

to such holders or purchasers.                                     3,283        

      Sec. 1309.31.  (A)  The rules of priority stated in          3,292        

sections 1309.20 to 1309.27 of the Revised Code and in the         3,293        

following sections shall govern where applicable:  section         3,294        

1304.20 of the Revised Code with respect to the security           3,295        

interests of collecting banks in items being collected,            3,296        

accompanying documents, and proceeds; section 1309.03 of the       3,297        

Revised Code on security interests related to other                3,298        

jurisdictions; section 1309.111 of the Revised Code on             3,299        

consignments; SECTION 1309.112 OF THE REVISED CODE ON SECURITY     3,300        

INTERESTS IN INVESTMENT PROPERTY.                                  3,301        

      (B)  A perfected security interest in crops for new value    3,303        

given to enable the debtor to produce the crops during the         3,304        

production season and given not more than three months before the  3,305        

crops become growing crops by planting or otherwise takes          3,306        

priority over an earlier perfected security interest to the        3,307        

extent that such earlier interest secures obligations due more     3,308        

than six months before the crops become growing crops by planting  3,309        

or otherwise, even though the person giving new value had          3,310        

knowledge of the earlier security interest.                        3,311        

      (C)  A perfected purchase money security interest in         3,313        

inventory has priority over a conflicting security interest in     3,314        

the same inventory and also has priority in identifiable cash      3,315        

proceeds received on or before the delivery of the inventory to a  3,316        

buyer if:                                                          3,317        

      (1)  The purchase money security interest is perfected at    3,319        

                                                          77     

                                                                 
the time the debtor receives possession of the inventory; and      3,320        

      (2)  The purchase money secured party gives notification in  3,322        

writing to the holder of the conflicting security interest if the  3,323        

holder had filed a financing statement covering the same types of  3,324        

inventory:                                                         3,325        

      (a)  Before the date of the filing made by the purchase      3,327        

money secured party; or                                            3,328        

      (b)  Before the beginning of the twenty-one-day period       3,330        

where the purchase money security interest is temporarily          3,331        

perfected without filing or possession pursuant to division (E)    3,332        

of section 1309.23 of the Revised Code; and                        3,333        

      (3)  The holder of the conflicting security interest         3,335        

receives the notification within five years before the debtor      3,336        

receives possession of the inventory; and                          3,337        

      (4)  The notification states that the person giving the      3,339        

notice has or expects to acquire a purchase money security         3,340        

interest in inventory of the debtor, describing such inventory by  3,341        

item or type.                                                      3,342        

      (D)  A purchase money security interest in collateral other  3,344        

than inventory has priority over a conflicting security interest   3,345        

in the same collateral or its proceeds if the purchase money       3,346        

security interest is perfected at the time the debtor receives     3,347        

possession of the collateral or within twenty days thereafter.     3,348        

      (E)  In all cases not governed by other rules stated in      3,350        

this section, including cases of purchase money security           3,351        

interests which do not qualify for the special priorities set      3,352        

forth in divisions (C) and (D) of this section, priority between   3,353        

conflicting security interests in the same collateral shall be     3,354        

determined according to the following rules:                       3,355        

      (1)  Conflicting security interests rank according to        3,357        

priority in time of filing or perfection.  Priority dates from     3,358        

the time a filing is first made covering the collateral or the     3,359        

time the security interest is first perfected, whichever is        3,360        

earlier, provided that there is no period thereafter when there    3,361        

                                                          78     

                                                                 
is neither filing nor perfection.                                  3,362        

      (2)  So long as conflicting security interests are           3,364        

unperfected, the first to attach has priority.                     3,365        

      (F)  For the purpose of division (E) of this section, a      3,367        

date of filing or perfection as to collateral is also a date of    3,368        

filing or perfection as to proceeds.                               3,369        

      (G)  If future advances are made while a security interest   3,371        

is perfected by filing, the taking of possession, or under         3,372        

section 1308.36 1309.112 OR 1309.113 of the Revised Code on        3,374        

securities INVESTMENT PROPERTY, the security interest has the      3,375        

same priority for the purposes of division (E) of this section OR  3,376        

DIVISION (E) OF SECTION 1309.112 OF THE REVISED CODE with respect  3,377        

to the future advances as it does with respect to the first        3,378        

advance.  If a commitment is made before or while the security     3,379        

interest is so perfected, the security interest has the same       3,380        

priority with respect to advances made pursuant thereto.  In       3,381        

other cases a perfected security interest has priority from the    3,382        

date the advance is made.                                                       

      Sec. 1701.01.  As used in sections 1701.01 to 1701.98 of     3,391        

the Revised Code, unless the context otherwise requires:           3,392        

      (A)  "Corporation" or "domestic corporation" means a         3,394        

corporation for profit formed under the laws of this state.        3,395        

      (B)  "Foreign corporation" means a corporation for profit    3,397        

formed under the laws of another state, and "foreign entity"       3,398        

means an entity formed under the laws of another state.            3,399        

      (C)  "State" means the United States; any state, territory,  3,401        

insular possession, or other political subdivision of the United   3,402        

States, including the District of Columbia; any foreign country    3,403        

or nation; and any province, territory, or other political         3,404        

subdivision of such foreign country or nation.                     3,405        

      (D)  "Articles" includes original articles of                3,407        

incorporation, certificates of reorganization, amended articles,   3,409        

and amendments to any of these, and, in the case of a corporation  3,410        

created before September 1, 1851, the special charter and any      3,411        

                                                          79     

                                                                 
amendments to it made by special act of the general assembly or    3,412        

pursuant to general law.                                           3,413        

      (E)  "Incorporator" means a person who signed the original   3,415        

articles of incorporation.                                         3,416        

      (F)  "Shareholder" means a person whose name appears on the  3,418        

books of the corporation as the owner of shares of such            3,419        

corporation.  Unless the articles, the regulations, or the         3,420        

contract of subscription otherwise provides, "shareholder"         3,421        

includes a subscriber to shares, whether the subscription is       3,422        

received by the incorporators or pursuant to authorization by the  3,423        

directors, and such shares shall be deemed to be outstanding       3,424        

shares.                                                            3,425        

      (G)  "Person" includes, without limitation, A NATURAL        3,427        

PERSON, a corporation, whether nonprofit or for profit, a          3,428        

partnership, a limited liability company, an unincorporated        3,429        

society or association, and two or more persons having a joint or  3,430        

common interest.                                                   3,431        

      (H)  The location of the "principal office" of a             3,433        

corporation is the place named as the principal office in its      3,434        

articles.                                                                       

      (I)  The "express terms" of shares of a class are the        3,436        

statements expressed in the articles with respect to such shares.  3,437        

      (J)  Shares of a class are "junior" to shares of another     3,439        

class when any of their dividend or distribution rights are        3,440        

subordinate to, or dependent or contingent upon, any right of, or  3,441        

dividend on, or distribution to, shares of such other class.       3,442        

      (K)  "Treasury shares" means shares belonging to the         3,444        

corporation and not retired that have been either issued and       3,445        

thereafter acquired by the corporation or paid as a dividend or    3,446        

distribution in shares of the corporation on treasury shares of    3,447        

the same class; such shares shall be deemed to be issued, but      3,448        

they shall not be considered as an asset or a liability of the     3,449        

corporation, or as outstanding for dividend or distribution,       3,450        

quorum, voting, or other purposes, except, when authorized by the  3,451        

                                                          80     

                                                                 
directors, for dividends or distributions in authorized but        3,452        

unissued shares of the corporation of the same class.              3,453        

      (L)  To "retire" a share means to restore it to the status   3,455        

of an authorized but unissued share.                               3,456        

      (M)  "Redemption price of shares" means the amount required  3,458        

by the articles to be paid on redemption of shares.                3,459        

      (N)  "Liquidation price" means the amount or portion of      3,461        

assets required by the articles to be distributed to the holders   3,462        

of shares of any class upon dissolution, liquidation, merger, or   3,463        

consolidation of the corporation, or upon sale of all or           3,464        

substantially all of its assets.                                   3,465        

      (O)  "Insolvent" means that the corporation is unable to     3,467        

pay its obligations as they become due in the usual course of its  3,468        

affairs.                                                           3,469        

      (P)  "Parent corporation" or "parent" means a domestic or    3,471        

foreign corporation that owns and holds of record shares of        3,473        

another corporation, domestic or foreign, entitling the holder of  3,474        

the shares at the time to exercise a majority of the voting power  3,475        

in the election of the directors of the other corporation without  3,476        

regard to voting power that may thereafter exist upon a default,   3,478        

failure, or other contingency; "subsidiary corporation" or         3,479        

"subsidiary" means a domestic or foreign corporation of which      3,480        

another corporation, domestic or foreign, is the parent.           3,481        

      (Q)  "Combination" means a transaction, other than a merger  3,483        

or consolidation, wherein either of the following applies:         3,484        

      (1)  Voting shares of a domestic corporation are issued or   3,486        

transferred in consideration in whole or in part for the transfer  3,487        

to itself or to one or more of its subsidiaries, domestic or       3,488        

foreign, of all or substantially all the assets of one or more     3,489        

corporations, domestic or foreign, with or without good will or    3,490        

the assumption of liabilities;                                     3,491        

      (2)  Voting shares of a foreign parent corporation are       3,493        

issued or transferred in consideration in whole or in part for     3,494        

the transfer of such assets to one or more of its domestic         3,495        

                                                          81     

                                                                 
subsidiaries.                                                      3,496        

      "Transferee corporation" in a combination means the          3,498        

corporation, domestic or foreign, to which the assets are          3,499        

transferred, and "transferor corporation" in a combination means   3,500        

the corporation, domestic or foreign, transferring such assets     3,501        

and to which, or to the shareholders of which, the voting shares   3,502        

of the domestic or foreign corporation are issued or transferred.  3,503        

      (R)  "Majority share acquisition" means the acquisition of   3,505        

shares of a corporation, domestic or foreign, entitling the        3,506        

holder of the shares to exercise a majority of the voting power    3,507        

in the election of directors of such corporation without regard    3,508        

to voting power that may thereafter exist upon a default,          3,509        

failure, or other contingency, by either of the following:         3,510        

      (1)  A domestic corporation in consideration in whole or in  3,512        

part, for the issuance or transfer of its voting shares;           3,513        

      (2)  A domestic or foreign subsidiary in consideration in    3,515        

whole or in part for the issuance or transfer of voting shares of  3,516        

its domestic parent.                                               3,517        

      (S)  "Acquiring corporation" in a combination means the      3,519        

domestic corporation whose voting shares are issued or             3,520        

transferred by it or its subsidiary or subsidiaries to the         3,521        

transferor corporation or corporations or the shareholders of the  3,522        

transferor corporation or corporations; and "acquiring             3,523        

corporation" in a majority share acquisition means the domestic    3,524        

corporation whose voting shares are issued or transferred by it    3,525        

or its subsidiary in consideration for shares of a domestic or     3,526        

foreign corporation entitling the holder of the shares to          3,527        

exercise a majority of the voting power in the election of         3,528        

directors of such corporation.                                     3,529        

      (T)  When used in connection with a combination or a         3,531        

majority share acquisition, "voting shares" means shares of a      3,532        

corporation, domestic or foreign, entitling the holder of the      3,533        

shares to vote at the time in the election of directors of such    3,534        

corporation without regard to voting power which may thereafter    3,535        

                                                          82     

                                                                 
exist upon a default, failure, or other contingency.               3,536        

      (U)  "An emergency" exists when the governor, or any other   3,538        

person lawfully exercising the power and discharging the duties    3,539        

of the office of governor, proclaims that an attack on the United  3,540        

States or any nuclear, atomic, or other disaster has caused an     3,541        

emergency for corporations, and such an emergency shall continue   3,542        

until terminated by proclamation of the governor or any other      3,543        

person lawfully exercising the powers and discharging the duties   3,544        

of the office of governor.                                         3,545        

      (V)  "Constituent corporation" means an existing             3,547        

corporation merging into or into which is being merged one or      3,548        

more other entities in a merger or an existing corporation being   3,550        

consolidated with one or more other entities into a new entity in  3,551        

a consolidation, whether any of the entities is domestic or        3,552        

foreign, and "constituent entity" means any entity merging into                 

or into which is being merged one or more other entities in a      3,553        

merger, or an existing entity being consolidated with one or more  3,554        

other entities into a new entity in a consolidation, whether any   3,555        

of the entities is domestic or foreign.                            3,556        

      (W)  "Surviving corporation" means the constituent domestic  3,559        

or foreign corporation that is specified as the corporation into   3,560        

which one or more other constituent entities are to be or have     3,561        

been merged, and "surviving entity" means the constituent                       

domestic or foreign entity that is specified as the entity into    3,562        

which one or more other constituent entities are to be or have     3,563        

been merged.                                                                    

      (X)  "Close corporation agreement" means an agreement that   3,565        

satisfies the three requirements of division (A) of section        3,566        

1701.591 of the Revised Code.                                      3,567        

      (Y)  "Issuing public corporation" means a domestic           3,569        

corporation with fifty or more shareholders that has its           3,570        

principal place of business, its principal executive offices,      3,571        

assets having substantial value, or a substantial percentage of    3,572        

its assets within this state, and as to which no valid close       3,573        

                                                          83     

                                                                 
corporation agreement exists under division (H) of section         3,574        

1701.591 of the Revised Code.                                      3,575        

      (Z)(1)  "Control share acquisition" means the acquisition,   3,577        

directly or indirectly, by any person of shares of an issuing      3,578        

public corporation that, when added to all other shares of the     3,579        

issuing public corporation in respect of which such person may     3,580        

exercise or direct the exercise of voting power as provided in     3,581        

this division, would entitle such person, immediately after such   3,582        

acquisition, directly or indirectly, alone or with others, to      3,583        

exercise or direct the exercise of the voting power of the         3,584        

issuing public corporation in the election of directors within     3,585        

any of the following ranges of such voting power:                  3,586        

      (a)  One-fifth or more but less than one-third of such       3,588        

voting power;                                                      3,589        

      (b)  One-third or more but less than a majority of such      3,591        

voting power;                                                      3,592        

      (c)  A majority or more of such voting power.                3,594        

      A bank, broker, nominee, trustee, or other person who        3,596        

acquires shares in the ordinary course of business for the         3,597        

benefit of others in good faith and not for the purpose of         3,598        

circumventing section 1701.831 of the Revised Code shall,          3,599        

however, be deemed to have voting power only of shares in respect  3,600        

of which such person would be able, without further instructions   3,601        

from others, to exercise or direct the exercise of votes on a      3,602        

proposed control share acquisition at a meeting of shareholders    3,603        

called under section 1701.831 of the Revised Code.                 3,604        

      (2)  The acquisition by any person of any shares of an       3,606        

issuing public corporation does not constitute a control share     3,607        

acquisition for the purpose of section 1701.831 of the Revised     3,608        

Code if the acquisition was or is consummated in, results from,    3,609        

or is the consequence of any of the following circumstances:       3,610        

      (a)  Prior to November 19, 1982;                             3,612        

      (b)  Pursuant to a contract existing prior to November 19,   3,614        

1982;                                                              3,615        

                                                          84     

                                                                 
      (c)  By bequest or inheritance, by operation of law upon     3,617        

the death of an individual, or by any other transfer without       3,618        

valuable consideration, including a gift, that is made in good     3,619        

faith and not for the purpose of circumventing section 1701.831    3,620        

of the Revised Code;                                               3,621        

      (d)  Pursuant to the satisfaction of a pledge or other       3,623        

security interest created in good faith and not for the purpose    3,624        

of circumventing section 1701.831 of the Revised Code;             3,625        

      (e)  Pursuant to a merger or consolidation adopted, or a     3,627        

combination or majority share acquisition authorized, by           3,628        

shareholder vote in compliance with section 1701.78, 1701.781, or  3,630        

1701.83 of the Revised Code provided the issuing public            3,631        

corporation is the surviving or new corporation in the merger or   3,632        

consolidation or is the acquiring corporation in the combination   3,633        

or majority share acquisition;                                                  

      (f)  The person's being entitled, immediately thereafter,    3,635        

to exercise or direct the exercise of voting power of the issuing  3,636        

public corporation in the election of directors within the same    3,637        

range theretofore attained by that person either in compliance     3,638        

with the provisions of section 1701.831 of the Revised Code or as  3,639        

a result solely of the issuing public corporation's purchase of    3,640        

shares issued by it.                                               3,641        

      The acquisition by any person of shares of an issuing        3,643        

public corporation in a manner described under division (Z)(2) of  3,644        

this section shall be deemed a control share acquisition           3,645        

authorized pursuant to section 1701.831 of the Revised Code        3,646        

within the range of voting power under division (Z)(1)(a), (b),    3,647        

or (c) of this section that such person is entitled to exercise    3,648        

after such acquisition, provided, in the case of an acquisition    3,649        

in a manner described under division (Z)(2)(c) or (d) of this      3,650        

section, the transferor of shares to such person had previously    3,651        

obtained any authorization of shareholders required under section  3,652        

1701.831 of the Revised Code in connection with such transferor's  3,653        

acquisition of shares of the issuing public corporation.           3,654        

                                                          85     

                                                                 
      (3)  The acquisition of shares of an issuing public          3,656        

corporation in good faith and not for the purpose of               3,657        

circumventing section 1701.831 of the Revised Code from any        3,658        

person whose control share acquisition previously had been         3,659        

authorized by shareholders in compliance with section 1701.831 of  3,660        

the Revised Code, or from any person whose previous acquisition    3,661        

of shares of an issuing public corporation would have constituted  3,662        

a control share acquisition but for division (Z)(2) or (3) of      3,663        

this section, does not constitute a control share acquisition for  3,664        

the purpose of section 1701.831 of the Revised Code unless such    3,665        

acquisition entitles the person making the acquisition, directly   3,666        

or indirectly, alone or with others, to exercise or direct the     3,667        

exercise of voting power of the corporation in the election of     3,668        

directors in excess of the range of such voting power authorized   3,669        

pursuant to section 1701.831 of the Revised Code, or deemed to be  3,670        

so authorized under division (Z)(2) of this section.               3,671        

      (AA)  "Acquiring person" means any person who has delivered  3,673        

an acquiring person statement to an issuing public corporation     3,674        

pursuant to section 1701.831 of the Revised Code.                  3,675        

      (BB)  "Acquiring person statement" means a written           3,677        

statement that complies with division (B) of section 1701.831 of   3,678        

the Revised Code.                                                  3,679        

      (CC)(1)  "Interested shares" means the shares of an issuing  3,681        

public corporation in respect of which any of the following        3,682        

persons may exercise or direct the exercise of the voting power    3,683        

of the corporation in the election of directors:                   3,684        

      (a)  An acquiring person;                                    3,686        

      (b)  Any officer of the issuing public corporation elected   3,688        

or appointed by the directors of the issuing public corporation;   3,689        

      (c)  Any employee of the issuing public corporation who is   3,691        

also a director of such corporation.;                              3,692        

      (2)  "Interested shares" also means any shares of an         3,694        

issuing public corporation acquired, directly or indirectly, by    3,695        

any (d)  ANY person from the holder or holders thereof for a THAT  3,697        

                                                          86     

                                                                 
ACQUIRES SUCH SHARES FOR valuable consideration during the period  3,698        

beginning with the date of the first public disclosure of a        3,699        

proposed control share acquisition of the issuing public           3,700        

corporation or any proposed merger, consolidation, or other        3,701        

transaction that would result in a change in control of the        3,702        

corporation or all or substantially all of its assets, and ending  3,703        

on the RECORD date of any special meeting of the corporation's     3,704        

shareholders held thereafter pursuant to section 1701.831 of the   3,705        

Revised Code, for the purpose of voting on a control share         3,706        

acquisition proposed by any acquiring person ESTABLISHED BY THE    3,707        

DIRECTORS PURSUANT TO SECTION 1701.45 AND DIVISION (D) OF SECTION  3,708        

1701.831 OF THE REVISED CODE, if either of the following applies:  3,709        

      (a)(i)  The aggregate consideration paid or given by the     3,711        

person who acquired the shares, and any other persons acting in    3,712        

concert with the person, for all such shares exceeds two hundred   3,714        

fifty thousand dollars;                                                         

      (b)(ii)  The number of shares acquired by the person who     3,716        

acquired the shares, and any other persons acting in concert with  3,717        

the person, exceeds one-half of one per cent of the outstanding    3,719        

shares of the corporation entitled to vote in the election of      3,720        

directors.                                                                      

      (e)  ANY PERSON THAT TRANSFERS SUCH SHARES FOR VALUABLE      3,722        

CONSIDERATION AFTER THE RECORD DATE DESCRIBED IN DIVISION          3,724        

(CC)(1)(d) OF THIS SECTION AS TO SHARES SO TRANSFERRED, IF         3,725        

ACCOMPANIED BY THE VOTING POWER IN THE FORM OF A BLANK PROXY, AN   3,726        

AGREEMENT TO VOTE AS INSTRUCTED BY THE TRANSFEREE, OR OTHERWISE.                

      (3)(2)  If any part of this division is held to be illegal   3,728        

or invalid in application, the illegality or invalidity does not   3,729        

affect any legal and valid application thereof or any other        3,730        

provision or application of this division or section 1701.831 of   3,731        

the Revised Code that can be given effect without the invalid or   3,733        

illegal provision, and the parts and applications of this          3,734        

division are severable.                                            3,735        

      (DD)  "Certificated security" and "uncertificated security"  3,737        

                                                          87     

                                                                 
have the same meanings as in section 1308.01 of the Revised Code.  3,738        

      (EE)  "Entity" means any of the following:                   3,740        

      (1)  A for profit corporation existing under the laws of     3,742        

this state or any other state;                                     3,743        

      (2)  Any of the following organizations existing under the   3,745        

laws of this state, the United States, or any other state:         3,746        

      (a)  A business trust or association;                        3,748        

      (b)  A real estate investment trust;                         3,750        

      (c)  A common law trust;                                     3,752        

      (d)  An unincorporated business or for profit organization,  3,754        

including a general or limited partnership;                        3,755        

      (e)  A limited liability company.                            3,757        

      Sec. 1701.24.  (A)  The shares of a corporation are          3,766        

personal property.                                                 3,767        

      (B)  Each holder of shares is entitled to one or more        3,769        

certificates, signed by the chairman CHAIRPERSON of the board or   3,770        

the president or a vice-president and by the secretary, an         3,771        

assistant secretary, the treasurer, or an assistant treasurer of   3,772        

the corporation, which shall certify the number and class of       3,773        

shares held by him THE HOLDER in such corporation, but no          3,774        

certificate for shares shall be executed or delivered until such   3,775        

shares are fully paid.  When such a certificate is countersigned   3,776        

by an incorporated transfer agent or registrar, the signature of   3,777        

any of said SUCH officers of the corporation may be facsimile,     3,778        

engraved, stamped, or printed.  Although any officer of the        3,779        

corporation whose manual or facsimile signature is affixed to      3,780        

such a certificate ceases to be such officer before the            3,781        

certificate is delivered, such certificate nevertheless shall be   3,782        

effective in all respects when delivered.                          3,783        

      (C)  A corporation is not obligated to but may issue         3,785        

fractional shares.  In the case of uncertificated securities, the  3,786        

corporation may treat the issuance of fractional shares in         3,787        

accordance with the procedures set forth in section 1308.44 of     3,788        

the Revised Code, or may proceed as provided in divisions (C)(1)   3,789        

                                                          88     

                                                                 
and (2) of this section.  In the case of certificated securities   3,790        

the corporation may execute and deliver a certificate for or       3,791        

including a fraction of a share; or, in lieu thereof, may:         3,792        

      (1)  Pay to the person otherwise entitled to become a        3,794        

holder of a fraction of a share an amount in cash specified as     3,795        

the value thereof in the articles, a resolution of the directors,  3,796        

or other agreement or instrument pursuant to which such fraction   3,797        

of a share would otherwise be issued, or, if not so specified,     3,798        

then the amount determined for such purpose by the directors of    3,799        

the issuing corporation, or the amount realized upon sale of such  3,800        

fraction of a share;                                               3,801        

      (2)  Provide reasonable means to afford to such person the   3,803        

opportunity, on specified terms and conditions, to purchase or     3,804        

sell fractional interests in shares, to the exclusion of all       3,805        

rights he might otherwise have;                                    3,806        

      (3)  Execute and deliver registered or bearer scrip over     3,808        

the manual or facsimile signature of an officer of the             3,809        

corporation or of its agent for that purpose, exchangeable as      3,810        

therein provided for full shares, but such scrip shall not         3,811        

entitle the holder to any rights as a shareholder except as        3,812        

therein provided.  The scrip may provide that it shall become      3,813        

void unless the rights of the holders are exercised within a       3,814        

specified period and may contain any other provisions that the     3,815        

corporation deems advisable.  Whenever any such scrip ceases to    3,816        

be exchangeable for full shares, the shares that would otherwise   3,817        

have been issuable as therein provided shall be deemed to be       3,818        

treasury shares unless the scrip contains other provision for      3,819        

their disposition.                                                 3,820        

      (D)  A joint estate with the incidents of a joint estate as  3,822        

at common law, including the right of survivorship, may be         3,823        

created in shares by registering the same in the case of           3,824        

uncertificated securities, or by executing and delivering a        3,825        

certificate therefor in the case of certificated securities to     3,826        

two or more persons with the words "as joint tenants" or "as       3,827        

                                                          89     

                                                                 
joint tenants with right of survivorship and not as tenants in     3,828        

common" following their names.  Upon receipt by the corporation    3,829        

of proof satisfactory to it of the death of one or more of such    3,830        

joint tenants, it may register the transfer to, or execute and     3,831        

deliver a new certificate to the survivor or survivors.            3,832        

      (E)  Whenever a corporation has determined that any          3,834        

outstanding certificates for shares should be canceled and         3,835        

exchanged for other certificates, the corporation may order and    3,836        

require the holders of the outstanding certificates to surrender   3,837        

them for such purpose within a reasonable time to be fixed by the  3,838        

corporation.  Such order may provide that, until compliance        3,839        

therewith, any or all rights as a shareholder of the holder of     3,840        

any certificate so required to be surrendered shall be suspended   3,841        

with respect to the shares represented thereby.  Not less than     3,842        

ten days before any such order is to become effective, the         3,843        

corporation shall give notice thereof by mail to each shareholder  3,844        

affected thereby at his address as it appears on the records of    3,845        

the corporation.                                                   3,846        

      (F)  Unless otherwise provided by the articles or            3,848        

regulations, the directors may provide by resolution that some or  3,849        

all of any or all classes and series of shares of a corporation    3,850        

shall be uncertificated shares, provided that such resolution      3,851        

shall not apply to shares represented by a certificate until such  3,852        

certificate is surrendered to the corporation as provided in       3,853        

division (B) of section 1308.43 of the Revised Code, and that      3,854        

such resolution shall not apply to a certificated security issued  3,855        

in exchange for an uncertificated security as provided in          3,856        

division (C) of section 1308.43 of the Revised Code.  Within a     3,857        

reasonable time after the issuance or transfer of uncertificated   3,858        

shares, the corporation shall send to the registered owner         3,859        

thereof a written notice containing the information required to    3,860        

be set forth or stated on certificates pursuant to division (A)    3,861        

of section 1701.25 of the Revised Code.  Such notice may be        3,862        

contained in the statement required by section 1308.44 of the      3,863        

                                                          90     

                                                                 
Revised Code.  Except as otherwise expressly provided by law, the  3,864        

rights and obligations of the holders of uncertificated shares     3,865        

and the rights and obligations of the holders of certificates      3,866        

representing shares of the same class and series shall be          3,867        

identical.                                                         3,868        

      Sec. 1701.25.  (A)  Each certificate for shares of a         3,877        

corporation shall state:                                           3,878        

      (1)  That the corporation is organized under the laws of     3,880        

this state;                                                        3,881        

      (2)  The name of the person to whom the shares represented   3,883        

by the certificate are issued;                                     3,884        

      (3)  The number of shares represented by the certificate;    3,886        

      (4)  If the shares of the corporation are classified, the    3,888        

designation of the class, and the series, if any, of the shares    3,889        

represented by the certificate;                                    3,890        

      (5)  On the face or the back of the certificate:             3,892        

      (a)  The express terms, if any, of the shares represented    3,894        

by the certificate and of the other class or classes and series    3,895        

of shares, if any, which the corporation is authorized to issue;   3,896        

or                                                                 3,897        

      (b)  A summary of such express terms; or                     3,899        

      (c)  That the corporation will mail to the shareholder a     3,901        

copy of such express terms without charge within five days after   3,902        

receipt of written request therefor; or                            3,903        

      (d)  That a copy of such express terms is attached to and    3,905        

by reference made a part of such certificate and that the          3,906        

corporation will mail to the shareholder a copy of such express    3,907        

terms without charge within five days after receipt of written     3,908        

request therefor if the copy has become detached from the          3,909        

certificate.                                                       3,910        

      (B)  No restriction on the right to transfer shares and no   3,912        

reservation of lien on shares shall be effective against a         3,913        

transferee of such shares unless, as to uncertificated             3,914        

securities, there is set forth in the initial transaction          3,915        

                                                          91     

                                                                 
statement required for liens by section 1308.02 of the Revised     3,916        

Code, and for restrictions on transfer by THERE HAS BEEN           3,917        

COMPLIANCE WITH section 1308.11 of the Revised Code, and unless,   3,919        

as to certificated securities, there is set forth on the face or   3,920        

the back of the certificate therefor:                                           

      (1)  A statement of the terms of such restriction or         3,922        

reservation; or                                                    3,923        

      (2)  A summary of the terms of such restriction or           3,925        

reservation and a statement that the corporation will mail to the  3,926        

shareholder a copy of such restriction or reservation without      3,927        

charge within five days after receipt of written request           3,928        

therefor; or                                                       3,929        

      (3)  If such restriction or reservation is contained in the  3,931        

articles or regulations of the corporation, or in an instrument    3,932        

in writing to which the corporation is a party, a statement to     3,933        

that effect and a statement that the corporation will mail to the  3,934        

shareholder a copy of such restriction or reservation without      3,935        

charge within five days after receipt of written request           3,936        

therefor; or                                                       3,937        

      (4)  If such restriction or reservation is contained in an   3,939        

instrument in writing (other than the articles or regulations of   3,940        

the corporation or an instrument in writing to which the           3,941        

corporation is a party), a statement to that effect identifying    3,942        

the instrument by title, date, and parties.                        3,943        

      (C)  A corporation shall mail to a shareholder without       3,945        

charge within five days after receipt of written request therefor  3,946        

the copy or copies referred to in paragraphs (5)(c) and (5)(d) of  3,947        

division (A) and paragraphs (2) and (3) of division (B) of this    3,948        

section.                                                           3,949        

      Sec. 1701.27.  (A)  In case a certificate for shares is      3,958        

lost, stolen, or destroyed, the court of common pleas or the       3,959        

probate court of the county in which the principal office of the   3,960        

corporation is located shall have jurisdiction to hear and         3,961        

determine all questions respecting such loss, theft, or            3,962        

                                                          92     

                                                                 
destruction, the person interested therein, the bond required to                

be given to protect the corporation or any person injured by the   3,963        

execution and delivery of a new certificate, the terms on which a  3,964        

new certificate shall be executed and delivered, and the costs     3,965        

and counsel fees, if any, to be allowed to the corporation.        3,966        

      (B)  A corporation which voluntarily and in good faith       3,968        

executes and delivers a new certificate in lieu of one believed    3,969        

to have been lost, stolen, or destroyed, or which executes and     3,970        

delivers a new certificate in compliance with an order of a court  3,971        

of competent jurisdiction, may recognize the person named in the   3,972        

new certificate, or any certificate thereafter executed and                     

delivered in exchange or substitution for such new certificate,    3,973        

as the owner of the shares described therein for all purposes,     3,974        

until the owner of the original certificate, or a transferee       3,975        

thereof without notice and for value, enjoins the corporation and  3,976        

the holder of any new certificate, or any certificate executed                  

and delivered in exchange or substitution for such new             3,977        

certificate, from so acting.                                       3,978        

      (C)  Special provisions in sections 1308.01 to 1308.36,      3,980        

inclusive, of the Revised Code, (particularly section 1308.35      3,981        

1308.41 of the Revised Code) relating to the replacement of lost,  3,983        

apparently destroyed, or wrongfully taken securities shall govern  3,984        

to the exclusion of the provisions of this section on this                      

subject, except where it clearly appears that a special provision  3,985        

is cumulative, in which case it and the provisions of this         3,986        

section on the same subject shall apply.                           3,987        

      Sec. 1701.49.  (A)  By written agreement certificates for    3,996        

shares of a corporation may be deposited within or without this    3,997        

state by any holder or holders thereof with one or more persons    3,998        

as trustees, or with any depositary designated by or pursuant to   3,999        

such agreement to act for such trustees, for the purpose and with  4,000        

the effect of granting to such trustees or a majority of them, or  4,001        

to such persons as may be designated by or pursuant to such        4,002        

agreement, all the voting, consenting, or other rights in respect  4,003        

                                                          93     

                                                                 
of the shares represented by such certificates, or such of these   4,004        

rights as may be specified in the agreement, or for such other     4,005        

lawful purposes as may be specified in the agreement, for such     4,006        

period and upon such terms as may be stated therein.               4,007        

      In the case of uncertificated securities, the deposit of     4,009        

the shares may be accomplished by registration in the name of the  4,010        

trustee or trustees as provided in division (F) of this section.   4,011        

      (B)  No such agreement which grants the voting or            4,013        

consenting rights in respect of shares shall be irrevocable for a  4,014        

period of more than ten years, unless the voting or consenting     4,015        

rights granted thereby are coupled with an interest in the shares  4,016        

to which such rights relate, except that, if the agreement so      4,017        

provides, such irrevocable grant may be extended for additional    4,018        

periods of not more than ten years each, upon the affirmative      4,019        

vote or assent of the beneficial owners of not less than a         4,020        

majority of the shares deposited under the agreement.  Such        4,021        

rights shall be deemed coupled with an interest in the shares if   4,022        

granted in connection with:  an option, authority, or contract to  4,023        

buy or sell the shares or a part thereof; a pledge of the shares   4,024        

to secure the performance or nonperformance of any act; the        4,025        

performance or nonperformance of any act, or agreement for an      4,026        

act, by the corporation issuing the shares; or any other act or    4,027        

thing constituting an interest sufficient in law to support a      4,028        

power coupled therewith.                                           4,029        

      (C)  The trustees under the agreement may issue, or cause    4,031        

to be issued by their depositary or agent, voting trust            4,032        

certificates registered in the name of the owners thereof.  So     4,033        

far as consistent with the agreement and the voting trust          4,034        

certificates issued thereunder, the provisions of sections         4,035        

1308.01 to 1308.44 CHAPTER 1308., and of sections 1701.01 to       4,037        

1701.99 of the Revised Code, with respect to the transfer of       4,038        

certificates for shares shall apply to transfers of such voting    4,039        

trust certificates.                                                4,040        

      Voting trust certificates must be in certificated form, and  4,042        

                                                          94     

                                                                 
interests in a voting trust shall not be eligible for treatment    4,043        

as uncertificated securities.                                      4,044        

      (D)  The agreement may include any terms not repugnant to    4,046        

law, including provisions defining, limiting, or regulating the    4,047        

exercise of the authority, and the liability of, the trustees, or  4,048        

of such persons as are designated by or pursuant to any such       4,049        

agreement to exercise the voting, consenting, or other rights in   4,050        

respect of the deposited shares or to act as depositary            4,051        

thereunder.                                                        4,052        

      (E)  An executed counterpart of the agreement may be filed   4,054        

with the secretary of the corporation, and upon such filing shall  4,055        

be open to inspection by any shareholder at the office of the      4,056        

corporation at all reasonable times.                               4,057        

      (F)  The certificates for shares so deposited may be         4,059        

surrendered to and canceled by the issuing corporation, and if     4,060        

this is done new certificates therefor shall be issued by the      4,061        

corporation in the names of the trustees or of such persons as     4,062        

are designated by or pursuant to the agreement, as specified in a  4,063        

writing signed by the trustees and delivered to the issuing        4,064        

corporation.  The new certificates shall be delivered to the       4,065        

trustees, or to any depositary, as the trustees may direct.  The   4,066        

new certificates shall be issued in such manner that it shall      4,067        

appear that they are issued pursuant to the agreement, and in the  4,068        

entry of ownership in the proper books of the corporation that     4,069        

fact shall also be noted.                                          4,070        

      If the corporation has elected to issue uncertificated       4,072        

securities, shares in uncertificated form may be deposited, with   4,073        

the effect provided by division (A) of this section, by            4,074        

registration in the name of the trustee or trustees or of such     4,075        

persons as are designated by or pursuant to the agreement, in      4,076        

accordance with sections 1308.01 to 1308.44 CHAPTER 1308. of the   4,078        

Revised Code.                                                                   

      (G)  Shares issued by a foreign corporation may be made the  4,080        

subject of an agreement under this section.                        4,081        

                                                          95     

                                                                 
      (H)  The rights conferred by this section are in addition    4,083        

to rights at common law, and no limitation established by this     4,084        

section shall limit rights at common law.                          4,085        

      (I)  Any such agreement shall be conclusively deemed to      4,087        

have been made under the common law, and not under this section,   4,088        

if the agreement so states.                                        4,089        

      Sec. 1701.591.  (A)  In order to qualify as a close          4,098        

corporation agreement under this section, the agreement shall      4,099        

meet the following requirements:                                   4,100        

      (1)  Every person who is a shareholder of the corporation    4,102        

at the time of the agreement's adoption, whether or not entitled   4,103        

to vote, shall have assented to the agreement in writing;          4,104        

      (2)  The agreement shall be set forth in the articles, the   4,106        

regulations, or another written instrument;                        4,107        

      (3)  The agreement shall include a statement that it is to   4,109        

be governed by this section.                                       4,110        

      (B)  A close corporation agreement that is not set forth in  4,112        

the articles or the regulations shall be entered in the record of  4,113        

minutes of the proceedings of the shareholders of the corporation  4,114        

and shall be subject to the provisions of division (C) of section  4,115        

1701.92 of the Revised Code.                                       4,116        

      (C)  Irrespective of any other provisions of this chapter,   4,118        

but subject to division (D)(2) of this section, a close            4,119        

corporation agreement may contain provisions, which shall be       4,120        

binding on the corporation and all of its shareholders,            4,121        

regulating any aspect of the internal affairs of the corporation   4,122        

or the relations of the shareholders among themselves, including   4,123        

the following:                                                     4,124        

      (1)  Regulation of the management of the business and        4,126        

affairs of the corporation;                                        4,127        

      (2)  The right of one or more shareholders to dissolve the   4,129        

corporation at will or on the occurrence of a specified event or   4,130        

contingency;                                                       4,131        

      (3)  The obligation to vote the shares of a person as        4,133        

                                                          96     

                                                                 
specified, or voting requirements, including the requirement of    4,134        

the affirmative vote or approval of all shareholders or of all     4,135        

directors, which voting requirements need not appear in the        4,136        

articles unless the close corporation agreement is set forth in    4,137        

the articles;                                                      4,138        

      (4)  The designation of the persons who shall be the         4,140        

officers or directors of the corporation;                          4,141        

      (5)  The authority of any individual who holds more than     4,143        

one office of the corporation to execute, acknowledge, or certify  4,144        

in more than one capacity any instrument required to be executed,  4,145        

acknowledged, or certified by the holders of two or more offices;  4,146        

      (6)  The terms and conditions of employment of an officer    4,148        

or employee of the corporation without regard to the period of     4,149        

his employment;                                                    4,150        

      (7)  The declaration and payment of dividends or             4,152        

distributions or the division of profits;                          4,153        

      (8)  Elimination of the board of directors, restrictions     4,155        

upon the exercise by directors of their authority, or delegation   4,156        

to one or more shareholders or other persons of all or part of     4,157        

the authority of the directors;                                    4,158        

      (9)  Conferring on any shareholder or his agent OF A         4,160        

SHAREHOLDER the absolute right, without the necessity of stating   4,161        

any purpose, to examine and copy during usual business hours any   4,162        

of the corporation's records or documents to which reference is    4,163        

made in section 1701.37 of the Revised Code;                       4,164        

      (10)  Prohibition of or limitation upon the issuance or      4,166        

sale by the corporation of any of its shares, including treasury   4,167        

shares, without the affirmative vote or approval of the holders    4,168        

of all or a proportion of the outstanding shares or unless other   4,169        

specified terms and conditions are met;                            4,170        

      (11)  Arbitration of issues on which the shareholders are    4,172        

deadlocked in voting power or on which the directors or other      4,173        

parties managing the corporation are deadlocked;                   4,174        

      (12)  Dispensing with the annual meeting of shareholders     4,176        

                                                          97     

                                                                 
unless a shareholder, by written notice to the president or        4,177        

secretary either by personal delivery or by mail within thirty     4,178        

days after the end of the most recent fiscal year of the           4,179        

corporation, requests that the meeting be held.                    4,180        

      (D)  Except as may be necessary to give effect to divisions  4,182        

(C)(3), (5), (8), (9), and (12) and division (I) of this section,  4,183        

any provision of a close corporation agreement that does either    4,184        

of the following shall be invalid:                                 4,185        

      (1)  Eliminates the filing with the secretary of state of    4,187        

any document required under this chapter or changes the required   4,188        

form or content of the document;                                   4,189        

      (2)  Waives or alters the effect of any of the provisions    4,191        

of section 1701.03, 1701.18, 1701.24, 1701.25, 1701.30, 1701.31,   4,192        

1701.32, 1701.33, 1701.35, 1701.37, 1701.38, 1701.39, 1701.591,    4,193        

1701.91, 1701.93, 1701.94, 1701.95, or the first sentence of       4,194        

section 1701.64 of the Revised Code.                               4,195        

      Unless otherwise provided in the close corporation           4,197        

agreement, the invalidity of a provision pursuant to this          4,198        

division does not affect the validity of the remainder of the      4,199        

agreement.                                                         4,200        

      Any certificate that is required to be filed with the        4,202        

secretary of state with respect to the authorization or taking of  4,203        

any action pursuant to a close corporation agreement that would    4,204        

not be permitted under this chapter in the absence of division     4,205        

(C) of this section shall recite the existence of a close          4,206        

corporation agreement that authorizes the action.                  4,207        

      (E)(1)  Except as provided in division (E)(2) of this        4,209        

section, a close corporation agreement may be amended or           4,210        

terminated by the affirmative vote or written consent of the       4,211        

holders, then parties to the close corporation agreement, of all   4,212        

of the outstanding shares of each class or, as may be provided by  4,213        

the close corporation agreement, of the holders, then parties to   4,214        

the close corporation agreement, of a proportion of not less than  4,215        

four-fifths of the outstanding shares of each class.  If a close   4,216        

                                                          98     

                                                                 
corporation agreement is amended or terminated by the written      4,217        

consent of the holders of fewer than all of the shares, the        4,218        

secretary of the corporation shall mail a copy of the amendment    4,219        

or a notice of the termination to each shareholder who did not so  4,220        

consent.  If a close corporation agreement set forth in the        4,221        

articles is amended, the amendment shall not be effective unless   4,222        

it is filed as an amendment to the articles pursuant to section    4,223        

1701.73 of the Revised Code.  No corporation with respect to       4,224        

which a close corporation agreement is in effect shall cause to    4,225        

occur any of the actions described in division (I)(1)(a), (b), or  4,226        

(c) of this section unless the action has been authorized by the   4,227        

affirmative vote or written consent of the holders, then parties   4,228        

to the close corporation agreement, of that proportion of shares   4,229        

of each class that is required to terminate the close corporation  4,230        

agreement.                                                         4,231        

      (2)  A close corporation agreement that was in existence on  4,233        

December 31, 1993, and that did not specify on that date and that  4,234        

has not specified since that date the proportion of shares         4,235        

required to amend or terminate the close corporation agreement     4,236        

may be amended or terminated by the affirmative vote or written    4,237        

consent of the holders, then parties to the close corporation      4,238        

agreement, of four-fifths of the outstanding shares of each        4,239        

class.                                                             4,240        

      (F)  No close corporation agreement is invalid among the     4,242        

parties or in respect of the corporation on any of the following   4,243        

grounds:                                                           4,244        

      (1)  The agreement is an attempt to treat the corporation    4,246        

as if it were a partnership or to arrange the relationship of the  4,247        

parties in a manner that would be appropriate only among           4,248        

partners;                                                          4,249        

      (2)  The agreement provides for the conduct of the affairs   4,251        

of a corporation or relations among shareholders in any manner     4,252        

that would be inappropriate or unlawful under provisions of this   4,253        

chapter other than those set forth in division (D)(2) of this      4,254        

                                                          99     

                                                                 
section or under other applicable law;                             4,255        

      (3)  The agreement interferes with the authority or          4,257        

discretion of the directors;                                       4,258        

      (4)  The agreement has not been filed with the minutes as    4,260        

required by division (B) of this section.                          4,261        

      (G)  If a close corporation agreement provides that there    4,263        

shall be no board of directors, both of the following apply:       4,264        

      (1)  The shareholders, for the purposes of any statute or    4,266        

rule of law relating to corporations, are deemed to be the         4,267        

directors and to have all of the liabilities, immunities,          4,268        

defenses, and indemnifications of directors with respect to any    4,269        

action or inaction of the corporation, except that any             4,270        

shareholder who is not permitted by the articles, the              4,271        

regulations, or the close corporation agreement to vote on or      4,272        

assent to an action or assent to an inaction shall not be liable   4,273        

as a director with respect to the action or inaction.              4,274        

      (2)  Except to the extent that the voting rights of the      4,276        

shares of a class are increased, limited, or denied by the         4,277        

articles, the regulations, or the close corporation agreement,     4,278        

each outstanding share regardless of class shall entitle its       4,279        

holder to one vote on each matter, including any matter normally   4,280        

voted on by directors, that is properly submitted to the           4,281        

shareholders for their vote, consent, waiver, release, or other    4,282        

action.                                                            4,283        

      (H)  The existence of a close corporation agreement shall    4,285        

be noted conspicuously on the face or the back of every            4,286        

certificate for shares of the corporation and a purchaser or       4,287        

transferee of shares represented by a certificate on which such a  4,288        

notation so appears shall be conclusively considered to have       4,289        

taken delivery with notice of the close corporation agreement.     4,290        

Any transferee of shares by gift, bequest, or inheritance and any  4,291        

purchaser or transferee of shares with knowledge or notice of a    4,292        

close corporation agreement is bound by the agreement and shall    4,293        

be considered to be a party to the agreement.                      4,294        

                                                          100    

                                                                 
      (I)(1)  A close corporation agreement becomes invalid under  4,296        

any of the following circumstances:                                4,297        

      (a)  Shares of the corporation are listed on a national      4,299        

securities exchange.                                               4,300        

      (b)  Shares of the corporation are registered under section  4,302        

12(g) of the "Securities Exchange Act of 1934," 48 Stat. 892, 15   4,303        

U.S.C. 781, as amended.                                            4,304        

      (c)  Shares of the corporation have been included in a       4,306        

registration statement that has become effective pursuant to the   4,307        

"Securities Act of 1933," 84 Stat. 74, 15 U.S.C. 77a-77aa, and     4,308        

the corporation is required to file periodic reports and           4,309        

information pursuant to section 15(d) of the "Securities Exchange  4,310        

Act of 1934," 48 Stat. 892, 15 U.S.C. 77m, as amended.             4,311        

      (d)  Shares of the corporation are transferred or issued to  4,313        

a person who takes delivery of the certificate for the shares      4,314        

other than by gift, bequest, or inheritance and without knowledge  4,315        

or notice of the close corporation agreement; that person          4,316        

delivers to the corporation a written rejection of the close       4,317        

corporation agreement within ninety days after the date on which   4,318        

that person first received notice of the existence of the close    4,319        

corporation agreement or within three years of the date of         4,320        

transfer or issuance, whichever is earlier; and the corporation    4,321        

does not offer in writing, within thirty days after the date on    4,322        

which the corporation received the written rejection, to purchase  4,323        

the shares from that person for the full amount paid for the       4,324        

shares, or, having made an offer to purchase the shares for that   4,325        

amount, the corporation, upon that person's acceptance of the      4,326        

offer, does not purchase the shares in accordance with division    4,327        

(I)(3) of this section.                                            4,328        

      (2)  A close corporation agreement does not become invalid   4,330        

and the person to whom the shares are transferred or issued is     4,331        

not entitled to any payment from the corporation pursuant to       4,332        

division (I)(3) of this section if both of the following apply:    4,333        

      (a)  Shares of the corporation are transferred or issued to  4,335        

                                                          101    

                                                                 
a person who takes delivery of the certificate for the shares      4,336        

other than by gift, bequest, or inheritance and without knowledge  4,337        

or notice of the close corporation agreement;                      4,338        

      (b)  That person does either of the following:               4,340        

      (i)  Fails to deliver a written rejection of the close       4,342        

corporation agreement to the corporation within ninety days after  4,343        

the date on which that person first received notice of the         4,344        

existence of the close corporation agreement or within three       4,345        

years of the date of transfer or issuance, whichever is earlier;   4,346        

      (ii)  Fails, within thirty days after the date on which      4,348        

that person receives a written offer by the corporation to         4,349        

purchase the shares from that person for the full amount paid for  4,350        

the shares, to accept the offer.                                   4,351        

      (3)  If shares of a corporation are transferred or issued    4,353        

to a person who takes delivery of the certificate for the shares   4,354        

other than by gift, bequest, or inheritance and without knowledge  4,355        

or notice of the close corporation agreement and that person       4,356        

accepts an offer by the corporation to purchase the shares, the    4,357        

corporation shall pay to that person the full amount paid for the  4,358        

shares within seven days after that person delivers to the         4,359        

corporation the certificate for the shares and proof of payment    4,360        

of the amount paid for the shares.  If the amount paid for the     4,361        

shares included property other than cash, the corporation, at its  4,362        

option, may return the property to that person or may pay to that  4,363        

person cash in an amount equal to the fair market value of the     4,364        

property on the date of transfer or issuance of the shares, as     4,365        

determined in good faith by the corporation.  A shareholder who    4,366        

transfers shares to a person who takes delivery of the             4,367        

certificate for the shares other than by gift, bequest, or         4,368        

inheritance and without knowledge or notice of the close           4,369        

corporation agreement is liable to the corporation, upon the       4,370        

corporation's written demand made upon the shareholder within      4,371        

ninety days after the date on which the corporation made payment   4,372        

for the shares, for the full amount that the corporation paid for  4,373        

                                                          102    

                                                                 
the shares.  Upon receiving payment in that amount from the        4,374        

shareholder, the corporation shall transfer the shares to the      4,375        

shareholder.                                                       4,376        

      (4)  In the event of the invalidity of a close corporation   4,378        

agreement and unless otherwise provided in the close corporation   4,379        

agreement, any provision contained in the close corporation        4,380        

agreement that would not be invalid under any other section of     4,381        

this chapter or under other applicable law remains valid and       4,382        

binding on the parties to the close corporation agreement.         4,383        

      Any officer of the corporation who learns of the occurrence  4,385        

of any event causing the invalidity of the close corporation       4,386        

agreement shall immediately give written notice of the invalidity  4,387        

to all of the shareholders.                                        4,388        

      If a close corporation agreement set forth in the articles   4,390        

of the corporation is terminated or becomes invalid, the officers  4,391        

of the corporation shall promptly sign and file the certificate    4,392        

of amendment prescribed by section 1701.73 of the Revised Code,    4,393        

setting forth the reason for the termination or invalidity and     4,394        

deleting the close corporation agreement from the articles.  If    4,395        

the officers fail to execute and file the certificate within       4,396        

thirty days after the occurrence of the event giving rise to the   4,397        

termination or invalidity, the certificate may be signed and       4,398        

filed by any shareholder and shall set forth a statement that the  4,399        

person signing the certificate is a shareholder and is filing the  4,400        

certificate because of the failure of the officers to do so.       4,401        

      (J)  A close corporation agreement, in the sound discretion  4,403        

of a court exercising its equity powers, is enforceable by         4,404        

injunction, specific performance, or other relief that the court   4,405        

may determine to be fair and appropriate.                          4,406        

      (K)  This section shall not be construed as prohibiting any  4,408        

other lawful agreement among two or more shareholders.             4,409        

      (L)  No corporation with respect to which a close            4,411        

corporation agreement is in effect, shall issue shares in          4,412        

uncertificated form, and any resolution of the directors of such   4,413        

                                                          103    

                                                                 
a corporation, providing for the issuance of shares in             4,414        

uncertificated form, shall be ineffective during any period in     4,415        

which a close corporation agreement is in effect.  The adoption    4,416        

of a close corporation agreement shall act as a transfer           4,417        

instruction to the corporation to replace uncertificated           4,418        

securities with appropriate certificated securities in accordance  4,419        

with division (C) of section 1308.43 of the Revised Code.          4,420        

      (M)  If the annual meeting of the shareholders is dispensed  4,422        

with in accordance with a provision in the close corporation       4,423        

agreement authorized by division (C)(12) of this section, the      4,424        

annual financial statements required by section 1701.38 of the     4,425        

Revised Code shall be delivered to each shareholder on or before   4,426        

the last date upon which the annual meeting otherwise could have   4,427        

been held.                                                         4,428        

      (N)  The amendments to this section that are effective       4,430        

April 4, 1985, are remedial in nature and apply to all close       4,431        

corporation agreements created on or after November 17, 1981. The  4,433        

amendments to this section that are effective December 31, 1993,   4,434        

are remedial in nature and, except as those amendments otherwise   4,435        

provide, apply to all close corporation agreements created on or   4,436        

after November 17, 1981.                                                        

      Sec. 1701.831.  (A)  Unless the articles or the regulations  4,445        

of the issuing public corporation provide that this section does   4,446        

not apply to control share acquisitions of shares of such          4,447        

corporation, any control share acquisition of an issuing public    4,448        

corporation shall be made only with the prior authorization of     4,449        

the shareholders of such corporation in accordance with this       4,450        

section.                                                           4,451        

      (B)  Any person who proposes to make a control share         4,453        

acquisition shall deliver an acquiring person statement to the     4,454        

issuing public corporation at the issuing public corporation's     4,455        

principal executive offices.  Such acquiring person statement      4,456        

shall set forth all of the following:                              4,457        

      (1)  The identity of the acquiring person;                   4,459        

                                                          104    

                                                                 
      (2)  A statement that the acquiring person statement is      4,461        

given pursuant to this section;                                    4,462        

      (3)  The number of shares of the issuing public corporation  4,464        

owned, directly or indirectly, by the acquiring person;            4,465        

      (4)  The range of voting power, described in division        4,467        

(Z)(1)(a), (b), or (c) of section 1701.01 of the Revised Code,     4,468        

under which the proposed control share acquisition would, if       4,469        

consummated, fall;                                                 4,470        

      (5)  A description in reasonable detail of the terms of the  4,472        

proposed control share acquisition;                                4,473        

      (6)  Representations of the acquiring person, together with  4,475        

a statement in reasonable detail of the facts upon which they are  4,476        

based, that the proposed control share acquisition, if             4,477        

consummated, will not be contrary to law, and that the acquiring   4,478        

person has the financial capacity to make the proposed control     4,479        

share acquisition.                                                 4,480        

      (C)  Within ten days after receipt of an acquiring person    4,482        

statement that complies with division (B) of this section, the     4,483        

directors of the issuing public corporation shall call a special   4,484        

meeting of shareholders of the issuing public corporation for the  4,485        

purpose of voting on the proposed control share acquisition.       4,486        

Unless the acquiring person agrees in writing to another date,     4,487        

such special meeting of shareholders shall be held within fifty    4,488        

days after receipt by the issuing public corporation of the        4,489        

acquiring person statement.  If the acquiring person so requests   4,490        

in writing at the time of delivery of the acquiring person         4,491        

statement, such special meetings shall be held no sooner than      4,492        

thirty days after receipt by the issuing public corporation of     4,493        

the acquiring person statement.  Such special meeting of           4,494        

shareholders shall be held no later than any other special         4,495        

meeting of shareholders that is called, after receipt by the       4,496        

issuing public corporation of the acquiring person statement, in   4,497        

compliance with section 1701.76, 1701.78, 1701.79, 1701.83, or     4,498        

1701.831 of the Revised Code.                                      4,499        

                                                          105    

                                                                 
      (D)  Notice of the special meeting of shareholders shall be  4,501        

given as promptly as reasonably practicable by the issuing public  4,502        

corporation to all shareholders of record as of the record date    4,503        

set for such meeting, whether or not entitled to vote thereat.     4,504        

Such notice shall include or be accompanied by both of the         4,505        

following:                                                         4,506        

      (1)  A copy of the acquiring person statement delivered to   4,508        

the issuing public corporation pursuant to this section;           4,509        

      (2)  A statement by the issuing public corporation,          4,511        

authorized by its directors, of its position or recommendation,    4,512        

or that it is taking no position or making no recommendation,      4,513        

with respect to the proposed control share acquisition.            4,514        

      (E)  The acquiring person may make the proposed control      4,516        

share acquisition if both of the following occur:                  4,517        

      (1)  The shareholders of the issuing public corporation who  4,519        

hold shares AS OF THE RECORD DATE of such corporation entitling    4,520        

them to vote in the election of directors authorize such THE       4,522        

acquisition at the special meeting held for that purpose at which  4,524        

a quorum is present by an affirmative vote of a majority of the    4,525        

voting power of such corporation in the election of directors      4,526        

represented at such THE meeting in person or by proxy, and a       4,527        

majority of the portion of such THE voting power excluding the     4,528        

voting power of interested shares REPRESENTED AT THE MEETING IN    4,529        

PERSON OR BY PROXY.  A quorum shall be deemed to be present at     4,530        

such THE special meeting if at least a majority of the voting      4,531        

power of the issuing public corporation in the election of         4,532        

directors, and a majority of the portion of such voting power      4,533        

excluding the voting power of interested shares are IS             4,534        

represented at such THE meeting in person or by proxy.             4,535        

      (2)  Such THE acquisition is consummated, in accordance      4,537        

with the terms so authorized, no later than three hundred sixty    4,538        

days following shareholder authorization of the control share      4,539        

acquisition.                                                       4,540        

      (F)  Except as expressly improved PROVIDED in this section,  4,542        

                                                          106    

                                                                 
nothing in this section shall be construed to affect or impair     4,543        

any right, remedy, obligation, duty, power, or authority of any    4,544        

acquiring person, any issuing public corporation, the directors    4,545        

of any acquiring person or issuing public corporation, or any      4,546        

other person under the laws of this or any other state or of the   4,547        

United States.                                                     4,548        

      (G)  If any application of any provision of this section is  4,550        

for any reason held to be illegal or invalid, the illegality or    4,551        

invalidity shall not affect any legal and valid provision or       4,552        

application of this section, and the parts and applications of     4,553        

this section are severable.                                        4,554        

      Sec. 1701.832.  (A)  In enacting Amended Substitute House    4,563        

Bill No. 822 of the 114th general assembly, which amended          4,564        

sections 1701.01, 1701.11, 1701.37, 1701.48, 1707.01, 1707.23,     4,565        

1707.26, 1707.29, and 1707.99 and enacted sections 1701.831 and    4,566        

1707.042 of the Revised Code, the general assembly found and       4,567        

continues to find that:                                            4,568        

      (1)  Existing Ohio corporate law was designed to deal with   4,570        

traditional methods of transfer of control of Ohio corporations.   4,571        

The tender offer has evolved as an alternative device to acquire   4,572        

control of a public corporation that has been in widespread use    4,573        

in the past several decades.  The acquisition of significant       4,574        

blocks of the securities of a public company in the open market    4,575        

or private transactions in connection with actual or apparent      4,576        

efforts to acquire control has become more common in recent years  4,577        

and has further complicated the impact of tender offers upon a     4,578        

corporation and its shareholders.  Numerous Ohio corporations      4,579        

have been the subject of tender offers and accumulations of        4,580        

significant blocks of securities.                                  4,581        

      (2)  The accumulation of a large block of a corporation's    4,583        

voting shares, or other securities convertible into voting         4,584        

shares, through direct or indirect acquisition from one or more    4,585        

existing shareholders of the corporation has not been subject to   4,586        

the normal corporate approval mechanisms involved in other         4,587        

                                                          107    

                                                                 
typical types of acquisition transactions such as mergers,         4,588        

consolidations, combinations, and majority share acquisitions.     4,589        

Such accumulations, however, can result in shifts of effective     4,590        

corporate control and hence, from a business and financial         4,591        

perspective, directly or indirectly, can result in significant     4,592        

changes in a variety of basic corporate circumstances identical    4,593        

or substantially similar to those arising as a result of the       4,594        

above-mentioned transactions.  For instance, a change in           4,595        

corporate control accompanying a large accumulation of shares      4,596        

will very often result in a fundamental change in the ongoing      4,597        

business of the corporation and a concomitant fundamental change   4,598        

in the nature of the shareholders' investment in it.  Thus the     4,599        

potential that such changes in corporate circumstances will occur  4,600        

gives rise to basic issues concerning the internal affairs of the  4,601        

corporation typical of those arising in mergers, consolidations,   4,602        

combinations, and majority share acquisitions.  The form of the    4,603        

transaction in which such issues arise should not alter the basic  4,604        

corporate mechanisms by which such issues are presented and        4,605        

resolved.                                                          4,606        

      (3)  Tender offers almost always involve a change in         4,608        

corporate control and, therefore, give rise to these same basic    4,609        

issues concerning internal corporate affairs.  Although tender     4,610        

offers in theory offer shareholders the opportunity to consider    4,611        

such issues in deciding whether or not to tender their shares, in  4,612        

practice they do not.  Tender offers are coercive in the sense     4,613        

that shareholders are normally concerned that a majority of their  4,614        

fellow shareholders will tender their shares, leaving them in a    4,615        

minority position with one controlling shareholder.  Thus,         4,616        

shareholders often feel compelled to tender their shares,          4,617        

regardless of how they feel about the corporate control issues     4,618        

inherent in any tender offer.  The opportunity for reasoned        4,619        

decision-making is further hindered by the short time periods in   4,620        

which tender offers can be consummated, the structures of many     4,621        

recent tender offers, which are designed to encourage prompt       4,622        

                                                          108    

                                                                 
tenders, and the fact that individual shareholders typically       4,623        

receive or obtain tender offer materials much later than           4,624        

institutional shareholders.                                        4,625        

      (4)  It is in the public interest for shareholders to have   4,627        

a reasonable opportunity to express their views by voting on a     4,628        

proposed shift of control, an opportunity currently available      4,629        

under Ohio GENERAL corporation law, CHAPTER 1701. OF THE REVISED   4,631        

CODE, in transactions with similar effects.  The general assembly               

also believes that it is in the public interest for Ohio           4,633        

securities laws, CHAPTER 1707. OF THE REVISED CODE, to provide     4,634        

evenhanded protection of offerors and shareholders from            4,635        

fraudulent and manipulative transactions arising in connection     4,636        

with control acquisitions.                                         4,637        

      (5)  Initial state efforts to deal with tender offer         4,639        

developments have been questioned by the federal courts.  The      4,640        

general assembly observes that responsibility for general          4,641        

corporate laws is the function of state legislation and that no    4,642        

federal law of corporations exists.  The general assembly          4,643        

observes that securities law protection of state residents has     4,644        

long been recognized as an appropriate subject of state law        4,645        

regulation under the federal system.  The general assembly         4,646        

acknowledges an in loco parentis responsibility to shareholders    4,647        

who invest in corporations created under the laws of Ohio and to   4,648        

shareholders generally who reside in Ohio.                         4,649        

      (B)  Sections 1701.01, 1701.11, 1701.37, 1701.48, 1707.01,   4,651        

1707.23, 1707.26, 1707.29, and 1707.99, as amended by Amended      4,652        

Substitute House Bill No. 822 of the 114th general assembly, and   4,653        

sections 1701.831 and 1707.042, as enacted by that act, were a     4,654        

recognition of the state's responsibility with respect to the      4,655        

subject matter of the act.  Nevertheless, with a view to avoiding  4,656        

an undue burden on interstate commerce, as expressed in recent     4,657        

court decisions, the amendments were designed to have the minimum  4,658        

impact upon interstate commerce consistent with Ohio               4,659        

responsibility in respect to the subject matter.  Accordingly,     4,660        

                                                          109    

                                                                 
the security law amendments made by that act to sections 1707.23,  4,661        

1707.26, 1707.29, and 1707.99 and in newly enacted section         4,662        

1707.042 of the Revised Code were limited to application to Ohio   4,663        

resident investors, and the corporate law amendments made by that  4,664        

act to sections 1701.01, 1701.11, 1701.37, and 1701.48 and in      4,665        

newly enacted section 1701.831 of the Revised Code were limited    4,666        

to corporations created under the laws of Ohio with the strong     4,667        

Ohio ties provided in the amendments.  The corporate legislation   4,668        

does not include a requirement for Ohio resident investors         4,669        

because of the difficulty of ascertainment by potential acquirers  4,670        

and others of the residence of shareholders.  The general          4,671        

assembly finds that corporations satisfying the jurisdictional     4,672        

nexus provided by the amendments may be deemed to have a           4,673        

substantial and significant shareholder base in the state.         4,674        

      (C)  The general assembly confirms all of the findings of    4,676        

this section as enacted by Amended Substitute House Bill No. 822   4,677        

of the 114th general assembly, except that the general assembly    4,678        

declares that, from the effective date of this amendment,          4,680        

NOVEMBER 2, 1989, and the concurrent amendment of section 1701.11  4,681        

of the Revised Code by the addition of division (B)(9)(a)(ii) to   4,682        

that section, the standards of that division are permitted, as an  4,683        

alternative to the ties with Ohio essential to the status of a     4,684        

control share acquisition, to qualify for the authorized           4,685        

restrictions on transfer of shares.  The general assembly further  4,686        

finds that the omission of a reference to "1701.01" immediately    4,687        

following the phrase "the corporate law amendments in sections"    4,688        

in the enactment of division (B) of this section was inadvertent.  4,689        

      (D)  THE GENERAL ASSEMBLY CONFIRMS ALL OF THE FINDINGS OF    4,692        

THIS SECTION AS ENACTED BY AMENDED SUBSTITUTE HOUSE BILL NO. 822   4,694        

OF THE 114th GENERAL ASSEMBLY, AND AS AMENDED BY AMENDED           4,695        

SUBSTITUTE HOUSE BILL NO. 358 OF THE 118th GENERAL ASSEMBLY, AND   4,696        

FURTHER FINDS ALL OF THE FOLLOWING:                                4,697        

      (1)  ALTHOUGH OHIO GENERAL CORPORATION LAW, CHAPTER 1701.    4,700        

OF THE REVISED CODE, REQUIRES THAT A SPECIAL MEETING BE HELD TO    4,702        

                                                          110    

                                                                 
ENABLE SHAREHOLDERS OF AN ISSUING PUBLIC CORPORATION TO VOTE ON    4,703        

ANY CONTROL SHARE ACQUISITION, IT DESCRIBES MEETING PROCEDURES,    4,704        

LIKE OTHER STATES, PRIMARILY IN GENERAL TERMS.                     4,705        

      (2)  WHERE THE LAW, OR THE ARTICLES OF INCORPORATION AND     4,707        

CODE OF REGULATIONS OF THE ISSUING PUBLIC CORPORATION, DO NOT      4,708        

MANDATE SPECIFIC MEETING PROCEDURES, THE DIRECTORS OF THE          4,709        

CORPORATION MUST DEFINE APPROPRIATE PROCEDURES CONSISTENT WITH     4,711        

THEIR FIDUCIARY DUTIES AS PROVIDED IN SECTION 1701.59 OF THE       4,712        

REVISED CODE.  IN CARRYING OUT THESE DUTIES, PRACTICES AND         4,714        

PROCEDURES HAVE DEVELOPED FROM EXPERIENCE IN THIS STATE AND        4,715        

ELSEWHERE TO ENSURE FAIR AND EFFICIENT MEETINGS.  THESE PRACTICES  4,716        

AND PROCEDURES INCLUDE THE USE OF A VARIETY AND NUMBER OF          4,717        

PRESUMPTIONS AND FORMS OF PROXY.                                                

      (3)  THE USE OF PRESUMPTIONS AND FORMS OF PROXY REFLECTS     4,719        

THE FACT THAT, IN THIS STATE AND OTHER STATES WITH SIMILAR LAWS,   4,720        

EFFICIENCY AND FINALITY ARE NECESSARY PRIORITIES OVER PRECISION    4,721        

AND CERTITUDE IN THE CONDUCT OF A MEETING.  IT IS THE              4,722        

RESPONSIBILITY OF THE DIRECTORS TO UTILIZE PRACTICES AND           4,723        

PROCEDURES, INCLUDING PRESUMPTIONS AND FORMS OF PROXY, THAT ARE    4,724        

CONSISTENT WITH THEIR FIDUCIARY DUTIES.                            4,725        

      Sec. 1705.01.  As used in this chapter:                      4,734        

      (A)  "Business" means every trade, occupation, or            4,736        

profession.                                                        4,737        

      (B)  "Contribution" means any cash, property, services       4,739        

rendered, promissory note, or other binding obligation to          4,740        

contribute cash or property or to perform services that a member   4,741        

contributes to a limited liability company in his THE capacity as  4,743        

a member.                                                          4,744        

      (C)  "Conveyance" means every assignment, lease, mortgage,   4,746        

or encumbrance.                                                    4,747        

      (D)  "Entity" means any of the following:                    4,749        

      (1)  A for profit corporation existing under the laws of     4,751        

this state or any other state;                                     4,752        

      (2)  Any of the following organizations existing under the   4,754        

                                                          111    

                                                                 
laws of this state, the United States, or any other state:         4,755        

      (a)  A business trust or association;                        4,757        

      (b)  A real estate investment trust;                         4,759        

      (c)  A common law trust;                                     4,761        

      (d)  An unincorporated business or for profit organization,  4,763        

including a general or limited partnership;                        4,764        

      (e)  A limited liability company.                            4,766        

      (E)  "Incompetent" has the same meaning as in section        4,768        

2111.01 of the Revised Code.                                       4,769        

      (F)  "Knowledge," of a fact, means actual knowledge of that  4,771        

fact and knowledge of other facts that under the circumstances     4,772        

shows bad faith.                                                   4,773        

      (G)  "Member" means a person whose name appears on the       4,775        

records of the limited liability company as the owner of a         4,776        

membership interest in that company.                               4,777        

      (H)  "Membership interest" means a member's share of the     4,779        

profits and losses of a limited liability company and the right    4,780        

to receive distributions from that company.                        4,781        

      (I)  "Notice" means that the person who claims the benefit   4,783        

of the notice has done one of the following:                       4,784        

      (1)  Stated the fact to the person entitled to notice;       4,786        

      (2)  Delivered through the mail or by other means of         4,788        

communication a written statement of the fact to the person        4,789        

entitled to notice or to a proper person at the place of business  4,790        

or residence of the person entitled to receive a notice.           4,791        

      (J)  "Operating agreement" means all of the valid written    4,793        

or oral agreements of the members OR, IN THE CASE OF A LIMITED     4,794        

LIABILITY COMPANY CONSISTING OF ONE MEMBER, A WRITTEN DECLARATION  4,795        

OF THAT MEMBER, as to the affairs of a limited liability company   4,797        

and the conduct of its business.                                                

      (K)  "Person" means any natural person; partnership,         4,799        

limited partnership, trust, estate, association, limited           4,800        

liability company, or corporation; any custodian, nominee,         4,801        

trustee, executor, administrator, or other fiduciary; or any       4,802        

                                                          112    

                                                                 
other individual or entity in its own or any representative        4,803        

capacity.                                                          4,804        

      (L)  "Professional association" and "professional service"   4,806        

have the same meanings as in section 1785.01 of the Revised Code.  4,807        

      (M)  "State" has the same meaning as in section 1.59 of the  4,809        

Revised Code and additionally includes a foreign country and any   4,810        

province, territory, or other political subdivision of a foreign   4,811        

country.                                                           4,812        

      Sec. 1705.04.  (A)  Two ONE or more persons, without regard  4,821        

to residence, domicile, or state of organization, may form a       4,822        

limited liability company.  The entity is formed when one or more  4,824        

persons or their authorized representative signs and files with    4,825        

the secretary of state articles of organization that set forth     4,826        

all of the following:                                              4,827        

      (1)  The name of the company;                                4,829        

      (2)  Except as provided in division (B) of this section,     4,831        

the period of its duration, which may be perpetual;                4,832        

      (3)  The address to which interested persons may direct      4,834        

requests for copies of any operating agreement and any bylaws of   4,835        

the company;                                                       4,836        

      (4)  Any other provisions that are from the operating        4,838        

agreement or that are not inconsistent with applicable law and     4,839        

that the members elect to set out in the articles for the          4,840        

regulation of the affairs of the company.                          4,841        

      (B)  If the articles of organization OR OPERATING AGREEMENT  4,843        

do not set forth the period of the duration of the limited         4,845        

liability company, its duration shall be perpetual.                4,846        

      (C)  If a limited liability company is formed under this     4,848        

chapter for the purpose of rendering a professional service or     4,849        

the kinds of professional services authorized under Chapters       4,850        

4703. and 4733. of the Revised Code, the following apply:          4,851        

      (1)  Each member, employee, or other agent of the company    4,853        

who renders a professional service in this state and, if the       4,854        

management of the company is not reserved to its members, each     4,855        

                                                          113    

                                                                 
manager of the company who renders a professional service in this  4,856        

state shall be licensed or otherwise legally authorized to render  4,857        

in this state the same kind of professional service or, if         4,858        

applicable, the kinds of professional services authorized under    4,859        

Chapters 4703. and 4733. of the Revised Code.                      4,860        

      (2)  Each member, employee, or other agent of the company    4,862        

who renders a professional service in another state and, if the    4,863        

management of the company is not reserved to its members, each     4,864        

manager of the company who renders a professional service in       4,865        

another state shall be licensed or otherwise legally authorized    4,866        

to render that professional service in the other state.            4,867        

      (D)  Except for the provisions of this chapter pertaining    4,869        

to the personal liability of members, employees, or other agents   4,870        

of a limited liability company and, if the management of the       4,871        

company is not reserved to its members, the personal liability of  4,872        

managers of the company, this chapter does not restrict, limit,    4,873        

or otherwise affect the authority or responsibilities of any       4,874        

agency, board, commission, department, office, or other entity to  4,875        

license, register, and otherwise regulate the professional         4,876        

conduct of individuals or organizations of any kind rendering      4,877        

professional services in this state or to regulate the practice    4,878        

of any profession that is within the jurisdiction of the agency,   4,879        

board, commission, department, office, or other entity,            4,880        

notwithstanding that the individual is a member or manager of a    4,881        

limited liability company and is rendering the professional        4,882        

services or engaging in the practice of the profession through     4,883        

the limited liability company or that the organization is a        4,884        

limited liability company.                                         4,885        

      Sec. 1705.16.  (A)  If EXCEPT AS PROVIDED IN DIVISION (C)    4,895        

OF THIS SECTION, IF the management of a limited liability company  4,897        

is reserved to its members, a member may withdraw from the         4,898        

company at any time by giving written notice to the other          4,899        

members.  If the withdrawal violates the operating agreement,      4,900        

then, in addition to exercising any remedies otherwise available   4,901        

                                                          114    

                                                                 
under applicable law, the company may recover from the                          

withdrawing member damages for breach of the operating agreement   4,902        

and may offset the damages against the amount otherwise            4,903        

distributable to him THE WITHDRAWING MEMBER on account of his THE  4,905        

WITHDRAWING MEMBER'S membership interest.                                       

      (B)  If EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION,  4,907        

IF the management of a limited liability company is not reserved   4,909        

to its members, the operating agreement may prohibit withdrawal    4,910        

or may specify the time at which or the events the occurrence of   4,911        

which entitle a member to withdraw.  If the operating agreement    4,912        

does not prohibit withdrawal, does not specify the time at which   4,913        

or the events upon the occurrence of which a member may withdraw,  4,914        

and does not indicate a definite time for the dissolution and the  4,915        

winding up of the company, a member may withdraw after giving at   4,916        

least six-months written notice of the proposed withdrawal to      4,917        

each nonwithdrawing member at its address as set forth in the      4,918        

records of the company that are required to be kept under section  4,919        

1705.28 of the Revised Code.                                       4,920        

      (C)  IF THE LIMITED LIABILITY COMPANY WAS FORMED ON OR       4,922        

AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, OR THE COMPANY WAS     4,923        

FORMED PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT AND ITS       4,924        

ARTICLES OF ORGANIZATION OR OPERATING AGREEMENT SPECIFICALLY       4,925        

STATE THAT THIS DIVISION APPLIES TO THE COMPANY, A MEMBER MAY      4,926        

WITHDRAW FROM THE COMPANY ONLY AT THE TIME OR UPON THE OCCURRENCE               

OF AN EVENT SPECIFIED IN WRITING IN THE ARTICLES OF ORGANIZATION   4,927        

OR THE OPERATING AGREEMENT.                                        4,928        

      Sec. 1705.43.  (A)  A limited liability company organized    4,937        

under this chapter shall be dissolved upon the occurrence of any   4,938        

of the following events:                                           4,939        

      (1)  The expiration of the period, if any, fixed by the      4,941        

operating agreement or articles of organization for the duration   4,943        

of the company;                                                                 

      (2)  One or more events specified in writing in the          4,945        

operating agreement as causing the dissolution of the company;     4,946        

                                                          115    

                                                                 
      (3)  The unanimous written agreement of all members to       4,948        

dissolve the company;                                              4,949        

      (4)  The withdrawal of a member of the company, unless the   4,951        

business of the company is continued by the consent of all of the  4,952        

remaining members or under a right to continue the company that    4,953        

is stated in writing in the operating agreement;                   4,954        

      (5)  At any time when there are less than two members;       4,956        

      (6)  Upon entry of a decree of judicial dissolution under    4,958        

section 1705.47 of the Revised Code.                               4,959        

      (B)  Following the occurrence of any of the events           4,961        

specified in division (A) of this section, the limited liability   4,962        

company shall deliver to the secretary of state for filing a       4,963        

certificate of dissolution on a form that is prescribed by the     4,964        

secretary of state and that includes the name of the company and   4,965        

the effective date of its dissolution.                             4,966        

      Sec. 1782.33.  A (A)  EXCEPT AS PROVIDED IN DIVISION (B) OF  4,977        

THIS SECTION, A limited partner may withdraw from a limited        4,978        

partnership at the time, or upon the happening of events,          4,979        

specified in writing in the partnership agreement.  If the         4,980        

partnership agreement does not specify in writing the time or      4,981        

events upon the happening of which a limited partner may withdraw  4,982        

or a definite time for the dissolution and winding up of the                    

limited partnership, a limited partner may withdraw upon not less  4,983        

than six months' prior written notice to each general partner at   4,984        

his THE GENERAL PARTNER'S address on the books of the limited      4,985        

partnership at its office in this state.                           4,986        

      (B)  IF THE LIMITED PARTNERSHIP WAS FORMED ON OR AFTER THE   4,988        

EFFECTIVE DATE OF THIS AMENDMENT, OR THE LIMITED PARTNERSHIP WAS   4,989        

FORMED PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT AND ITS       4,990        

CERTIFICATE OF LIMITED PARTNERSHIP OR PARTNERSHIP AGREEMENT        4,991        

SPECIFICALLY STATES THAT THIS DIVISION APPLIES TO THE LIMITED      4,992        

PARTNERSHIP, A LIMITED PARTNER MAY WITHDRAW FROM THE LIMITED       4,993        

PARTNERSHIP ONLY AT THE TIME OR UPON THE OCCURRENCE OF AN EVENT                 

SPECIFIED IN WRITING IN THE PARTNERSHIP AGREEMENT.                 4,994        

                                                          116    

                                                                 
      Sec. 3901.51.  As used in sections 3901.51 to 3901.55 of     5,003        

the Revised Code:                                                  5,004        

      (A)  "Clearing corporation" has the same meaning as in       5,006        

division (C) of section 1308.01 of the Revised Code, except that   5,007        

with respect to securities issued by institutions organized or     5,008        

existing under the laws of any foreign country or securities used  5,009        

to meet the deposit requirements pursuant to the laws of a         5,010        

foreign country as a condition of doing business in that country,  5,011        

"clearing corporation" includes a corporation that is organized    5,012        

or existing under the laws of any foreign country and is legally   5,013        

qualified under those laws to effect transactions in securities    5,014        

by computerized book-entry.                                        5,015        

      (B)  "Direct participant" means a bank, trust company, or    5,017        

other entity that maintains an account in its name in a clearing   5,018        

corporation and through which an insurance company participates    5,019        

in a clearing corporation.                                         5,020        

      (C)  "Federal reserve book-entry system" means the           5,022        

computerized systems sponsored by the United States department of  5,023        

the treasury and agencies and instrumentalities of the United      5,024        

States for holding and transferring securities of the United       5,025        

States government and agencies and instrumentalities in federal    5,026        

reserve banks through banks that are members of the federal        5,027        

reserve system or that otherwise have access to these              5,028        

computerized systems.                                              5,029        

      (D)  "Member bank" means a national or state bank or a       5,031        

trust company that is a member of the federal reserve system and   5,032        

through which an insurance company participates in the federal     5,033        

reserve book-entry system.                                         5,034        

      (E)  "Provisions of the insurance laws of this state" means  5,036        

provisions of Title XXXIX of the Revised Code related to the       5,037        

deposit of securities for the benefit and security of              5,038        

policyholders, and includes, but is not limited to, sections       5,039        

3901.18, 3903.73, 3905.24, 3905.25, 3905.41, 3907.07, 3909.03,     5,040        

3909.09, 3909.17, 3913.01, 3913.04, 3919.13, 3919.36, 3919.37,     5,041        

                                                          117    

                                                                 
3919.41, 3925.07, 3927.02, 3927.06, 3929.01, 3929.07, 3929.08,     5,042        

3929.09, 3929.10, 3929.11, 3941.30, 3941.31, 3941.32, 3941.33,     5,043        

3941.34, 3941.42, 3953.06, 3953.11, and 3957.03 of the Revised     5,044        

Code.                                                                           

      (F)  "Securities" has the same meaning as in division        5,046        

(A)(3) of section 1308.01 of the Revised Code.                     5,047        

      Section 2.  That existing sections 1301.05, 1301.12,         5,049        

1303.02, 1304.01, 1304.02, 1305.10, 1305.13, 1308.03, 1308.04,     5,050        

1308.08, 1308.09, 1308.10, 1308.11, 1308.12, 1308.13, 1308.14,     5,051        

1308.15, 1308.16, 1308.17, 1308.22, 1308.31, 1308.37, 1308.38,     5,052        

1308.41, 1308.42, 1309.01, 1309.03, 1309.14, 1309.20, 1309.21,     5,053        

1309.22, 1309.23, 1309.24, 1309.25, 1309.28, 1309.31, 1701.01,     5,054        

1701.24, 1701.25, 1701.27, 1701.49, 1701.591, 1701.831, 1701.832,  5,055        

1705.01, 1705.04, 1705.16, 1705.43, 1782.33, and 3901.51 and       5,057        

sections 1308.01, 1308.02, 1308.05, 1308.06, 1308.07, 1308.18,     5,058        

1308.19, 1308.20, 1308.21, 1308.23, 1308.24, 1308.25, 1308.26,     5,059        

1308.27, 1308.28, 1308.32, 1308.33, 1308.34, 1308.35, 1308.36,     5,060        

1308.39, 1308.40, 1308.43, and 1308.44 of the Revised Code are     5,061        

hereby repealed.                                                                

      Section 3.  Sections 1 and 2 of this act shall take effect   5,063        

on January 1, 1998.                                                             

      Section 4.  (A)  Sections 1 and 2 of this act do not affect  5,065        

an action or proceeding commenced before this act takes effect.    5,066        

      (B)  If a security interest in a security is perfected at    5,068        

the date this act takes effect, and the action by which the        5,069        

security interest was perfected would suffice to perfect a         5,071        

security interest under this act, no further action is required    5,072        

to continue perfection.  If a security interest in a security is                

perfected at the date this act takes effect but the action by      5,073        

which the security interest was perfected would not suffice to     5,074        

perfect a security interest under this act, the security interest  5,075        

remains perfected for a period of four months after the effective  5,076        

date and continues perfected thereafter if appropriate action to   5,077        

perfect under this act is taken within that period.  If a          5,078        

                                                          118    

                                                                 
security interest is perfected at the date this act takes effect                

and the security interest can be perfected by filing under this    5,079        

act, a financing statement signed by the secured party instead of  5,080        

the debtor may be filed within that period to continue perfection  5,081        

or thereafter to perfect.