As Passed by the Senate                       1            

122nd General Assembly                                             4            

   Regular Session                         Am. Sub. H. B. No. 170  5            

      1997-1998                                                    6            


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

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

  MOTTLEY-JONES-TERWILLEGER-MILLER-COLONNA-THOMPSON-CALLENDER-     10           

     GARCIA-GRENDELL-VERICH-HOUSEHOLDER-O'BRIEN-OPFER-LOGAN-       11           

     SENATORS RAY-OELSLAGER-WATTS-DRAKE-LATTA-LATELL-HOWARD        12           


                                                                   13           

                           A   B I L L                                          

             To amend sections 1301.05, 1301.12, 1303.02,          15           

                1304.01, 1304.02, 1305.10, 1305.13, 1308.03,       16           

                1308.04, 1308.08, 1308.09, 1308.10, 1308.11,       17           

                1308.12, 1308.13, 1308.14, 1308.15, 1308.16,       18           

                1308.17, 1308.22, 1308.31, 1308.37, 1308.38,       19           

                1308.41, 1308.42, 1309.01, 1309.03, 1309.14,       20           

                1309.20, 1309.21, 1309.22, 1309.23, 1309.24,       21           

                1309.25, 1309.28, 1309.31, 1701.01, 1701.24,       22           

                1701.25, 1701.27, 1701.49, 1701.591, 1701.831,     23           

                1701.832, 1705.01, 1705.04, 1705.16, 1705.43,      24           

                1782.33, and 3901.51;  to enact new sections       25           

                1308.01, 1308.02, 1308.05, 1308.06, 1308.07,       26           

                1308.18, 1308.19, 1308.20, 1308.21, 1308.23,       28           

                1308.24, 1308.25,  1308.26, 1308.27, 1308.32,      29           

                1308.33, 1308.39, and 1308.40 and sections         30           

                1308.51, 1308.52, 1308.53, 1308.54, 1308.55,       31           

                1308.56, 1308.57, 1308.58, 1308.59, 1308.60,       32           

                1308.61, 1309.112, and 1309.113; and to repeal     33           

                sections 1308.01, 1308.02, 1308.05, 1308.06,       34           

                1308.07, 1308.18, 1308.19, 1308.20, 1308.21,       35           

                1308.23, 1308.24, 1308.25, 1308.26, 1308.27,       36           

                1308.28, 1308.32, 1308.33, 1308.34, 1308.35,       37           

                1308.36, 1308.39, 1308.40, 1308.43, and 1308.44    38           

                of the Revised Code to adopt the Revised Article   39           

                                                          2      

                                                                 
                8 of the Uniform Commercial Code--Investment       40           

                Securities, to adopt modifications to the General  41           

                Corporation Law regarding control share            42           

                acquisitions, and to make changes in certain                    

                organizational provisions of the Limited           43           

                Liability Companies Law and the Limited                         

                Partnerships Law.                                  44           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        46           

      Section 1.  That sections 1301.05, 1301.12, 1303.02,         48           

1304.01, 1304.02, 1305.10, 1305.13, 1308.03, 1308.04, 1308.08,     49           

1308.09, 1308.10, 1308.11, 1308.12, 1308.13, 1308.14, 1308.15,     50           

1308.16, 1308.17, 1308.22, 1308.31, 1308.37, 1308.38, 1308.41,     51           

1308.42, 1309.01, 1309.03, 1309.14, 1309.20, 1309.21, 1309.22,     52           

1309.23, 1309.24, 1309.25, 1309.28, 1309.31, 1701.01, 1701.24,     53           

1701.25, 1701.27, 1701.49, 1701.591, 1701.831, 1701.832, 1705.01,  54           

1705.04, 1705.16, 1705.43, 1782.33, and 3901.51 be amended and     55           

new sections 1308.01, 1308.02, 1308.05, 1308.06, 1308.07,          56           

1308.18, 1308.19, 1308.20, 1308.21, 1308.23, 1308.24, 1308.25,     57           

1308.26, 1308.27, 1308.32, 1308.33, 1308.39, and 1308.40 and       58           

sections 1308.51, 1308.52, 1308.53, 1308.54, 1308.55, 1308.56,     59           

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:        60           

      Sec. 1301.05.  (A)  Except as otherwise provided in this     69           

section, when a transaction bears a reasonable relation to this    70           

state and also to another state or nation, the parties may agree   71           

that the law either of this state or of the other state or nation  72           

shall govern their rights and duties.  Failing such an agreement   73           

Chapters 1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309.,   75           

and 1310. of the Revised Code apply to transactions bearing an     76           

appropriate relation to this state.                                             

      (B)  Where one of the following provisions of Chapters       78           

1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309., and 1310.  80           

of the Revised Code specifies the applicable law, that provision   81           

                                                          3      

                                                                 
governs and a contrary agreement is effective only to the extent   82           

permitted by the law, including the conflict of laws rules, so     83           

specified:                                                                      

      (1)  Rights of creditors against sold goods, as provided in  85           

section 1302.43 of the Revised Code;                               86           

      (2)  Applicability of sections 1304.01 to 1304.40 of the     88           

Revised Code, as provided in section 1304.02 of the Revised Code;  89           

      (3)  Fund transfers under sections 1304.51 to 1304.85 of     91           

the Revised Code, as provided in section 1304.85 of the Revised    92           

Code;                                                              93           

      (4)  Applicability of sections 1308.01 to 1308.36 CHAPTER    96           

1308. of the Revised Code, as provided in section 1308.05 of the   97           

Revised Code;                                                                   

      (5)  Perfection provisions of section 1309.03 of the         99           

Revised Code;                                                      100          

      (6)  Applicability of sections 1310.01 to 1310.78 of the     102          

Revised Code, as provided in sections 1310.03 and 1310.04 of the   103          

Revised Code.                                                      104          

      Sec. 1301.12.  (A)  Except in the cases described in         113          

division (B) of this section a contract for the sale of personal   114          

property is not enforceable by way of action or defense beyond     115          

five thousand dollars in amount or value of remedy unless there    116          

is some writing which indicates that a contract for sale has been  117          

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

identifies the subject matter, and is signed by the party against  118          

whom enforcement is sought or by his THAT PARTY'S authorized       119          

agent.                                                                          

      (B)  Division (A) of this section does not apply to          121          

contracts for the sale of goods, section 1302.04 of the Revised    122          

Code, nor of securities, section 1308.30 1308.07 of the Revised    123          

Code, nor to security agreements, section 1309.14 of the Revised   124          

Code.                                                                           

      Sec. 1303.02.  (A)  This chapter applies to negotiable       133          

instruments.  It does not apply to money, to payment orders        134          

                                                          4      

                                                                 
governed by sections 1304.51 to 1304.85 of the Revised Code, or    135          

to securities governed by sections 1308.01 to 1308.44 CHAPTER      137          

1308. of the Revised Code.                                                      

      (B)  If there is a conflict between this chapter and either  139          

sections 1304.01 to 1304.40 or sections 1309.01 to 1309.50 of the  140          

Revised Code, the provisions of sections 1304.01 to 1304.40 or     141          

sections 1309.01 to 1309.50 of the Revised Code govern.            142          

      (C)  If any provision of this chapter is inconsistent with   144          

any regulation of the board of governors of the federal reserve    145          

system or any operating circular of the federal reserve banks,     146          

the regulation or the operating circular supersedes the provision  147          

of this chapter to the extent of the inconsistency.                148          

      Sec. 1304.01.  (A)  As used in sections 1304.01 to 1304.40   157          

of the Revised Code, unless the context requires otherwise:        158          

      (1)  "Account" means any deposit or credit account with a    160          

bank, including a demand, time, savings, passbook, share draft,    161          

or similar account, other than an account evidenced by a           162          

certificate of deposit.                                                         

      (2)  "Afternoon" means the period of day between noon and    164          

midnight.                                                          165          

      (3)  "Banking day" means the part of a day on which a bank   168          

is open to the public for carrying on substantially all of its     169          

banking functions.                                                              

      (4)  "Clearing house" means an association of banks or       171          

other payors regularly clearing items.                             172          

      (5)  "Customer" means a person having an account with a      174          

bank or for whom a bank has agreed to collect items, including a   175          

bank that maintains an account at another bank.                    176          

      (6)  "Documentary draft" means a draft to be presented for   178          

acceptance or payment if specified documents, certified            179          

securities or instructions for uncertificated securities AS        180          

DEFINED IN SECTION 1308.01 OF THE REVISED CODE, or other           181          

certificates, statements, or similar documents are to be received               

by the drawee or other payor before acceptance or payment of the   182          

                                                          5      

                                                                 
draft.                                                                          

      (7)  "Draft" means a draft as defined in section 1303.03 of  184          

the Revised Code or an item, other than an instrument, that is an  185          

order.                                                                          

      (8)  "Drawee" means a person ordered in a draft to make      187          

payment.                                                                        

      (9)  "Item" means an instrument or a promise or order to     189          

pay money handled by a bank for collection or payment.  "Item"     190          

does not include a payment order governed by sections 1304.51 to   191          

1304.85 of the Revised Code, a credit slip, or a debit card slip.  192          

      (10)  "Midnight deadline," with respect to a bank, is        194          

midnight on its next banking day following the banking day on      195          

which it recevies RECEIVES the relevant item or notice or from     196          

which the time for taking action commences to run, whichever is    199          

later.                                                                          

      (11)  "Settle" means to pay in cash, by clearing house       201          

settlement, in a charge or credit or by remittance, or otherwise   202          

as agreed.  A settlement may be either provisional or final.       203          

      (12)  "Suspends payments" with respect to a bank means that  205          

it has been closed by order of the supervisory authorities, that   206          

a public officer has been appointed to take it over, or that it    207          

ceases or refuses to make payments in the ordinary course of       208          

business.                                                          209          

      (B)  As used in sections 1304.01 to 1304.40 of the Revised   211          

Code:                                                                           

      (1)  "Bank" means a person engaged in the business of        213          

banking, including a savings bank, a savings and loan              214          

association, a credit union, or a trust company.                   215          

      (2)  "Depositary bank" means the first bank to take an item  218          

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

presented for immediate payment over the counter.                  219          

      (3)  "Payor bank" means a bank that is a drawee of a draft.  221          

      (4)  "Intermediary bank" means a bank to which an item is    224          

transferred in course of collection except the depositary or                    

                                                          6      

                                                                 
payor bank.                                                        225          

      (5)  "Collecting bank" means a bank handling an item for     228          

collection except the payor bank.                                               

      (6)  "Presenting bank" means a bank presenting an item       230          

except a payor bank.                                               231          

      (C)  As used in sections 1304.01 to 1304.40 of the Revised   234          

Code:                                                                           

      (1)  "Acceptance" and "certified check" have the same        236          

meanings as in section 1303.46 of the Revised Code.                237          

      (2)  "Alteration" has the same meaning as in section         239          

1303.50 of the Revised Code.                                       240          

      (3)  "Cashier's check," "certificate of deposit," "check,"   242          

"instrument," and "teller's check" have the same meanings as in    243          

section 1303.03 of the Revised Code.                               244          

      (4)  "Good faith," "order," "ordinary care," "promise," and  246          

"prove" have the same meanings as in section 1303.01 of the        247          

Revised Code.                                                                   

      (5)  "Holder in due course" has the same meaning as in       249          

section 1303.32 of the Revised Code.                               250          

      (6)  "Notice of dishonor" has the same meaning as in         252          

section 1303.63 of the Revised Code.                               253          

      (7)  "Person entitled to enforce" has the same meaning as    255          

in section 1303.31 of the Revised Code.                            256          

      (8)  "Presentment" has the same meaning as in section        258          

1303.61 of the Revised Code.                                       259          

      (9)  "Unauthorized signature" has the same meaning as in     261          

section 1303.43 of the Revised Code.                               262          

      (D)  The terms and principles of construction and            264          

interpretation in sections 1301.01 to 1301.14 of the Revised Code  265          

are applicable to sections 1304.01 to 1303.40 1304.40 of the       266          

Revised Code.                                                                   

      Sec. 1304.02.  (A)  To the extent that items within          275          

sections 1304.01 to 1304.40 of the Revised Code are also within    276          

the scope of Chapter 1303. and sections 1308.01 to 1308.36         277          

                                                          7      

                                                                 
CHAPTER 1308. of the Revised Code, they are subject to that        278          

chapter and those sections CHAPTERS.  In the event of conflict,    280          

the provisions of sections 1304.01 to 1304.40 of the Revised Code  281          

govern those of Chapter 1303., but the provisions of sections      282          

1308.01 to 1308.36 CHAPTER 1308. of the Revised Code govern those  283          

of sections 1304.01 to 1304.40 of the Revised Code.                284          

      (B)  The liability of a bank for action or non-action with   286          

respect to any item handled by it for purposes of presentment,     287          

payment, or collection is governed by the law of the place where   288          

the bank is located.  In the case of action or non-action by or    289          

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

governed by the law of the place where the branch or separate      290          

office is located.                                                 291          

      Sec. 1305.10.  (A)  Unless otherwise agreed, the             300          

beneficiary by transferring or presenting a documentary draft or   301          

demand for payment warrants to all interested parties that the     302          

necessary conditions of the credit have been complied with.  This  303          

is in addition to any warranties arising under Chapters 1303.,     304          

1304., and 1308. of the Revised Code.                                           

      (B)  Unless otherwise agreed, a negotiating, advising,       306          

confirming, collecting, or issuing bank presenting or              307          

transferring a draft or demand for payment under a credit          308          

warrants only the matters warranted by a collecting bank under                  

sections 1304.01 to 1304.40 of the Revised Code, and any such      309          

bank transferring a document warrants only the matters warranted   310          

by an A SECURITIES intermediary under sections 1307.01 to 1307.40  311          

and 1308.01 to 1308.36 CHAPTER 1308. of the Revised Code.          312          

      Sec. 1305.13.  (A)  An issuer must honor a draft or demand   321          

for payment that complies with the terms of the relevant credit    322          

regardless of whether the goods or documents conform to the        323          

underlying contract for sale or other contract between the         324          

customer and the beneficiary.  The issuer is not excused from      325          

honor of such a draft or demand by reason of an additional         326          

general term that all documents must be satisfactory to the        327          

                                                          8      

                                                                 
issuer, but an issuer may require that specified documents must    328          

be satisfactory to it.                                             329          

      (B)  Unless otherwise agreed when documents appear on their  331          

face to comply with the terms of a credit but a required document  332          

does not in fact conform to the warranties made on negotiation or  333          

transfer of a document of title, pursuant to section 1307.35 of    334          

the Revised Code, or of a certificated security pursuant to        335          

section 1308.21 1308.20 of the Revised Code, or is forged or       336          

fraudulent or there is fraud in the transaction:                   338          

      (1)  The issuer must honor the draft or demand for payment   340          

if honor is demanded by a negotiating bank or other holder of the  341          

draft or demand which has taken the draft or demand under the      342          

credit and under circumstances which would make it a holder in     343          

due course as provided in section 1303.32 of the Revised Code and  344          

in an appropriate case would make it a person to whom a document   345          

of title has been duly negotiated, as provided in section 1307.30  346          

of the Revised Code, or a bona fide PROTECTED purchaser of a       347          

certificated security, as provided in section 1308.17 of the       349          

Revised Code; and                                                               

      (2)  In all other cases as against its customer, an issuer   351          

acting in good faith may honor the draft or demand for payment     352          

despite notification from the customer of fraud, forgery, or       353          

other defect not apparent on the face of the documents but a       354          

court of appropriate jurisdiction may enjoin such honor.           355          

      (C)  Unless otherwise agreed, an issuer which has duly       357          

honored a draft or demand for payment is entitled to immediate     358          

reimbursement of any payment made under the credit and to be put   359          

in effectively available funds not later than the day before       360          

maturity of any acceptance made under the credit.                  361          

      (D)  When a credit provides for payment by the issuer on     363          

receipt of notice that the required documents are in the           364          

possession of a correspondent or other agent of the issuer:        365          

      (1)  Any payment made on receipt of such notice is           367          

conditional; and                                                   368          

                                                          9      

                                                                 
      (2)  The issuer may reject documents which do not comply     370          

with the credit if it does so within three banking days following  371          

its receipt of the documents; and                                  372          

      (3)  In the event of such rejection, the issuer is entitled  374          

by chargeback or otherwise to return of the payment made.          375          

      (E)  In the case covered by division (D) of this section,    377          

failure to reject documents within the time specified in division  378          

(D)(2) of this section constitutes acceptance of the documents     379          

and makes the payment final in favor of the beneficiary.           380          

      Sec. 1308.01.  (A)  IN THIS CHAPTER:                         382          

      (1)  "ADVERSE CLAIM" MEANS A CLAIM THAT A CLAIMANT HAS A     384          

PROPERTY INTEREST IN A FINANCIAL ASSET AND THAT IT IS A VIOLATION  385          

OF THE RIGHTS OF THE CLAIMANT FOR ANOTHER PERSON TO HOLD,          386          

TRANSFER, OR DEAL WITH THE FINANCIAL ASSET.                                     

      (2)  "BEARER FORM," AS APPLIED TO A CERTIFICATED SECURITY,   388          

MEANS A FORM IN WHICH THE SECURITY IS PAYABLE TO THE BEARER OF     389          

THE SECURITY CERTIFICATE ACCORDING TO ITS TERMS BUT NOT BY REASON  390          

OF AN INDORSEMENT.                                                              

      (3)  "BROKER" MEANS A PERSON DEFINED AS A BROKER OR DEALER   392          

UNDER THE FEDERAL SECURITIES LAWS, BUT WITHOUT EXCLUDING A BANK    393          

ACTING IN THAT CAPACITY.                                                        

      (4)  "CERTIFICATED SECURITY" MEANS A SECURITY THAT IS        395          

REPRESENTED BY A CERTIFICATE.                                      396          

      (5)  "CLEARING CORPORATION" MEANS:                           398          

      (a)  A PERSON THAT IS REGISTERED AS A "CLEARING AGENCY"      400          

UNDER THE FEDERAL SECURITIES LAWS;                                 401          

      (b)  A FEDERAL RESERVE BANK; OR                              403          

      (c)  ANY OTHER PERSON THAT PROVIDES CLEARANCE OR SETTLEMENT  405          

SERVICES WITH RESPECT TO FINANCIAL ASSETS THAT WOULD REQUIRE IT    406          

TO REGISTER AS A CLEARING AGENCY UNDER THE FEDERAL SECURITIES      407          

LAWS BUT FOR AN EXCLUSION OR EXEMPTION FROM THE REGISTRATION       408          

REQUIREMENT, IF ITS ACTIVITIES AS A CLEARING CORPORATION,          409          

INCLUDING PROMULGATION OF RULES, ARE SUBJECT TO REGULATION BY A                 

FEDERAL OR STATE GOVERNMENTAL AUTHORITY.                           410          

                                                          10     

                                                                 
      (6)  "COMMUNICATE" MEANS TO:                                 412          

      (a)  SEND A SIGNED WRITING; OR                               414          

      (b)  TRANSMIT INFORMATION BY ANY MECHANISM AGREED UPON BY    416          

THE PERSONS TRANSMITTING AND RECEIVING THE INFORMATION.            417          

      (7)  "ENTITLEMENT HOLDER" MEANS A PERSON IDENTIFIED IN THE   419          

RECORDS OF A SECURITIES INTERMEDIARY AS THE PERSON HAVING A        420          

SECURITY ENTITLEMENT AGAINST THE SECURITIES INTERMEDIARY.  IF A    421          

PERSON ACQUIRES A SECURITY ENTITLEMENT BY VIRTUE OF DIVISION       422          

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

IS THE ENTITLEMENT HOLDER.                                         423          

      (8)  "ENTITLEMENT ORDER" MEANS A NOTIFICATION COMMUNICATED   425          

TO A SECURITIES INTERMEDIARY DIRECTING TRANSFER OR REDEMPTION OF   426          

A FINANCIAL ASSET TO WHICH THE ENTITLEMENT HOLDER HAS A SECURITY   427          

ENTITLEMENT.                                                                    

      (9)  "FINANCIAL ASSET," EXCEPT AS OTHERWISE PROVIDED IN      429          

SECTION 1308.02 OF THE REVISED CODE, MEANS:                        430          

      (a)  A SECURITY;                                             432          

      (b)  AN OBLIGATION OF A PERSON OR A SHARE, PARTICIPATION,    434          

OR OTHER INTEREST IN A PERSON OR IN PROPERTY OR AN ENTERPRISE OF   435          

A PERSON, WHICH IS, OR IS OF A TYPE, DEALT IN OR TRADED ON         436          

FINANCIAL MARKETS, OR WHICH IS RECOGNIZED IN ANY AREA IN WHICH IT  437          

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

      (c)  ANY PROPERTY THAT IS HELD BY A SECURITIES INTERMEDIARY  439          

FOR ANOTHER PERSON IN A SECURITIES ACCOUNT IF THE SECURITIES       440          

INTERMEDIARY HAS EXPRESSLY AGREED WITH THE OTHER PERSON THAT THE   441          

PROPERTY IS TO BE TREATED AS A FINANCIAL ASSET UNDER THIS          442          

CHAPTER.                                                                        

      AS CONTEXT REQUIRES, THE TERM MEANS EITHER THE INTEREST      444          

ITSELF OR THE MEANS BY WHICH A PERSON'S CLAIM TO IT IS EVIDENCED,  445          

INCLUDING A CERTIFICATED OR UNCERTIFICATED SECURITY, A SECURITY    446          

CERTIFICATE, OR A SECURITY ENTITLEMENT.                                         

      (10)  "GOOD FAITH," FOR PURPOSES OF THE OBLIGATION OF GOOD   448          

FAITH IN THE PERFORMANCE OR ENFORCEMENT OF CONTRACTS OR DUTIES     449          

WITHIN THIS CHAPTER, MEANS HONESTY IN FACT AND THE OBSERVANCE OF   450          

                                                          11     

                                                                 
REASONABLE COMMERCIAL STANDARDS OF FAIR DEALING.                   451          

      (11)  "INDORSEMENT" MEANS A SIGNATURE THAT ALONE OR          453          

ACCOMPANIED BY OTHER WORDS IS MADE ON A SECURITY CERTIFICATE IN    454          

REGISTERED FORM OR ON A SEPARATE DOCUMENT FOR THE PURPOSE OF       455          

ASSIGNING, TRANSFERRING, OR REDEEMING THE SECURITY OR GRANTING A   456          

POWER TO ASSIGN, TRANSFER, OR REDEEM IT.                                        

      (12)  "INSTRUCTION" MEANS A NOTIFICATION COMMUNICATED TO     458          

THE ISSUER OF AN UNCERTIFICATED SECURITY WHICH DIRECTS THAT THE    459          

TRANSFER OF THE SECURITY BE REGISTERED OR THAT THE SECURITY BE     460          

REDEEMED.                                                                       

      (13)  "REGISTERED FORM," AS APPLIED TO A CERTIFICATED        462          

SECURITY, MEANS A FORM IN WHICH:                                   463          

      (a)  THE SECURITY CERTIFICATE SPECIFIES A PERSON ENTITLED    465          

TO THE SECURITY; AND                                               466          

      (b)  A TRANSFER OF THE SECURITY MAY BE REGISTERED UPON       468          

BOOKS MAINTAINED FOR THAT PURPOSE BY OR ON BEHALF OF THE ISSUER,   469          

OR THE SECURITY CERTIFICATE SO STATES.                             470          

      (14)  "SECURITIES INTERMEDIARY" MEANS:                       472          

      (a)  A CLEARING CORPORATION; OR                              474          

      (b)  A PERSON, INCLUDING A BANK OR BROKER, THAT IN THE       476          

ORDINARY COURSE OF ITS BUSINESS MAINTAINS SECURITIES ACCOUNTS FOR  477          

OTHERS AND IS ACTING IN THAT CAPACITY.                             478          

      (15)  "SECURITY," EXCEPT AS OTHERWISE PROVIDED IN SECTION    480          

1308.02 OF THE REVISED CODE, MEANS AN OBLIGATION OF AN ISSUER OR   481          

A SHARE, PARTICIPATION, OR OTHER INTEREST IN AN ISSUER OR IN       482          

PROPERTY OR AN ENTERPRISE OF AN ISSUER:                                         

      (a)  WHICH IS REPRESENTED BY A SECURITY CERTIFICATE IN       484          

BEARER OR REGISTERED FORM, OR THE TRANSFER OF WHICH MAY BE         485          

REGISTERED UPON BOOKS MAINTAINED FOR THAT PURPOSE BY OR ON BEHALF  486          

OF THE ISSUER;                                                                  

      (b)  WHICH IS ONE OF A CLASS OR SERIES OR BY ITS TERMS IS    488          

DIVISIBLE INTO A CLASS OR SERIES OF SHARES, PARTICIPATIONS,        489          

INTERESTS, OR OBLIGATIONS; AND                                     490          

      (c)  WHICH:                                                  492          

                                                          12     

                                                                 
      (i)  IS, OR IS OF A TYPE, DEALT IN OR TRADED ON SECURITIES   494          

EXCHANGES OR SECURITIES MARKETS; OR                                495          

      (ii)  IS A MEDIUM FOR INVESTMENT AND BY ITS TERMS EXPRESSLY  497          

PROVIDES THAT IT IS A SECURITY GOVERNED BY THIS CHAPTER.           498          

      (16)  "SECURITY CERTIFICATE" MEANS A CERTIFICATE             500          

REPRESENTING A SECURITY.                                                        

      (17)  "SECURITY ENTITLEMENT" MEANS THE RIGHTS AND PROPERTY   502          

INTEREST OF AN ENTITLEMENT HOLDER WITH RESPECT TO A FINANCIAL      503          

ASSET SPECIFIED IN SECTIONS 1308.51 TO 1308.61 OF THE REVISED      504          

CODE.                                                                           

      (18)  "UNCERTIFICATED SECURITY" MEANS A SECURITY THAT IS     506          

NOT REPRESENTED BY A CERTIFICATE.                                  507          

      (B)  OTHER DEFINITIONS APPLYING TO THIS CHAPTER AND THE      509          

SECTIONS IN WHICH THEY APPEAR ARE:                                 510          

      (1)  "APPROPRIATE PERSON," AS DEFINED IN SECTION 1308.23 OF  512          

THE REVISED CODE.                                                               

      (2)  "CONTROL," AS DEFINED IN SECTION 1308.24 OF THE         514          

REVISED CODE.                                                                   

      (3)  "DELIVERY," AS DEFINED IN SECTION 1308.27 OF THE        516          

REVISED CODE.                                                                   

      (4)  "INVESTMENT COMPANY SECURITY," AS DEFINED IN SECTION    518          

1308.02 OF THE REVISED CODE.                                                    

      (5)  "ISSUER," AS DEFINED IN SECTION 1308.08 OF THE REVISED  520          

CODE.                                                                           

      (6)  "OVERISSUE," AS DEFINED IN SECTION 1308.03 OF THE       522          

REVISED CODE.                                                                   

      (7)  "PROTECTED PURCHASER," AS DEFINED IN SECTION 1308.17    524          

OF THE REVISED CODE.                                                            

      (8)  "SECURITIES ACCOUNT," AS DEFINED IN SECTION 1308.51 OF  526          

THE REVISED CODE.                                                               

      (C)  IN ADDITION, CHAPTER 1301. OF THE REVISED CODE          528          

CONTAINS GENERAL DEFINITIONS AND PRINCIPLES OF CONSTRUCTION AND    529          

INTERPRETATION APPLICABLE THROUGHOUT THIS CHAPTER.                 530          

      (D)  THE CHARACTERIZATION OF A PERSON, BUSINESS, OR          532          

                                                          13     

                                                                 
TRANSACTION FOR PURPOSES OF THIS CHAPTER DOES NOT DETERMINE THE    533          

CHARACTERIZATION OF THE PERSON, BUSINESS, OR TRANSACTION FOR       534          

PURPOSES OF ANY OTHER LAW, REGULATION, OR RULE.                    535          

      Sec. 1308.02.  (A)  A SHARE OR SIMILAR EQUITY INTEREST       537          

ISSUED BY A CORPORATION, BUSINESS TRUST, JOINT STOCK COMPANY, OR   538          

SIMILAR ENTITY IS A SECURITY.                                      539          

      (B)  AN "INVESTMENT COMPANY SECURITY" IS A SECURITY.         541          

"INVESTMENT COMPANY SECURITY" MEANS A SHARE OR SIMILAR EQUITY      542          

INTEREST ISSUED BY AN ENTITY THAT IS REGISTERED AS AN INVESTMENT   543          

COMPANY UNDER THE FEDERAL INVESTMENT COMPANY LAWS, AN INTEREST IN  544          

A UNIT INVESTMENT TRUST THAT IS SO REGISTERED, OR A FACE-AMOUNT    545          

CERTIFICATE ISSUED BY A FACE-AMOUNT CERTIFICATE COMPANY THAT IS                 

SO REGISTERED.  INVESTMENT COMPANY SECURITY DOES NOT INCLUDE AN    546          

INSURANCE POLICY OR ENDOWMENT POLICY OR ANNUITY CONTRACT ISSUED    547          

BY AN INSURANCE COMPANY.                                                        

      (C)  AN INTEREST IN A PARTNERSHIP OR LIMITED LIABILITY       549          

COMPANY IS NOT A SECURITY UNLESS IT IS DEALT IN OR TRADED ON       550          

SECURITIES EXCHANGES OR IN SECURITIES MARKETS, ITS TERMS           551          

EXPRESSLY PROVIDE THAT IT IS A SECURITY GOVERNED BY THIS CHAPTER,  552          

OR IT IS AN INVESTMENT COMPANY SECURITY.  HOWEVER, AN INTEREST IN  553          

A PARTNERSHIP OR LIMITED LIABILITY COMPANY IS A FINANCIAL ASSET                 

IF IT IS HELD IN A SECURITIES ACCOUNT.                             554          

      (D)  A WRITING THAT IS A SECURITY CERTIFICATE IS GOVERNED    556          

BY THIS CHAPTER AND NOT BY CHAPTER 1303. OF THE REVISED CODE,      557          

EVEN THOUGH IT ALSO MEETS THE REQUIREMENTS OF THAT CHAPTER.        558          

HOWEVER, A NEGOTIABLE INSTRUMENT GOVERNED BY CHAPTER 1303. OF THE  559          

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

ACCOUNT.                                                           560          

      (E)  AN OPTION OR SIMILAR OBLIGATION ISSUED BY A CLEARING    562          

CORPORATION TO ITS PARTICIPANTS IS NOT A SECURITY, BUT IS A        563          

FINANCIAL ASSET.                                                                

      (F)  A COMMODITY CONTRACT, AS DEFINED IN SECTION 1309.112    565          

OF THE REVISED CODE, IS NOT A SECURITY OR A FINANCIAL ASSET.       566          

      Sec. 1308.03.  (A)  The EXCEPT AS OTHERWISE PROVIDED IN      575          

                                                          14     

                                                                 
DIVISIONS (A)(1) AND (2) OF THIS SECTION, THE provisions of        576          

sections 1308.01 to 1308.44 of the Revised Code THIS CHAPTER       577          

which validate a security or compel its issue or reissue do not    579          

apply to the extent that validation, issue, or reissue would       580          

result in overissue; but if.                                                    

      (1)  An IF AN identical security which does not constitute   582          

an overissue is reasonably available for purchase, the person      583          

entitled to issue or validation may compel the issuer to purchase  584          

the security for him and either to deliver a IT IF certificated    586          

security or to register the ITS transfer of an IF uncertificated   587          

security to him, against surrender of any certificated security    588          

he CERTIFICATE THE PERSON holds; or.                               589          

      (2)  A IF A security is not so available for purchase, the   592          

A person entitled to issue or validation may recover from the      593          

issuer the price he THE PERSON or the last purchaser for value     594          

paid for it with interest from the date of his THE PERSON'S        595          

demand.                                                            596          

      (B)  "Overissue" means the issue of securities in excess of  598          

the amount the issuer has corporate power to issue, BUT AN         599          

OVERISSUE DOES NOT OCCUR IF APPROPRIATE ACTION HAS CURED THE       600          

OVERISSUE.                                                                      

      Sec. 1308.04.  (A)  Certificated securities governed by      609          

sections 1308.01 to 1308.44 of the Revised Code, are negotiable    610          

instruments.                                                       611          

      (B)  Statements as provided in section 1308.44 of the        613          

Revised Code, notices, or the like, sent by the issuer of          614          

uncertificated securities and instructions as provided in section  615          

1308.23 of the Revised Code are neither negotiable instruments     616          

nor certificated securities.                                       617          

      (C)  In any THE FOLLOWING RULES APPLY IN AN action on a      619          

CERTIFICATED security AGAINST THE ISSUER:                          620          

      (1)(A)  Unless specifically denied in the pleadings, each    622          

signature on a certificated security, CERTIFICATE OR in a          623          

necessary indorsement, or an initial transaction statement, or on  624          

                                                          15     

                                                                 
an instruction, is admitted;                                       625          

      (2)(B)  If the effectiveness of a signature is put in        627          

issue, the burden of establishing it EFFECTIVENESS is on the       628          

party claiming under the signature, but the signature is presumed  629          

to be genuine or authorized;                                       630          

      (3)(C)  If signatures on a certificated security             632          

CERTIFICATE are admitted or established, production of the         633          

security CERTIFICATE entitles a holder to recover on it unless     635          

the defendant establishes a defense or a defect going to the       636          

validity of the security;                                                       

      (4)(D)  If signatures on an initial transaction statement    638          

are admitted or established, the facts stated in the statement     640          

are presumed to be true as of the time of its issuance; and        641          

      (5)  After it is shown that a defense or defect exists, the  643          

plaintiff has the burden of establishing that he THE PLAINTIFF or  645          

some person under whom he THE PLAINTIFF claims is a person                      

against whom the defense or defect is ineffective, as provided in  646          

section 1308.44 of the Revised Code CANNOT BE ASSERTED.            647          

      Sec. 1308.05.  (A)  THE LOCAL LAW OF THE ISSUER'S            649          

JURISDICTION, AS SPECIFIED IN DIVISION (D) OF THIS SECTION,        650          

GOVERNS:                                                                        

      (1)  THE VALIDITY OF A SECURITY;                             652          

      (2)  THE RIGHTS AND DUTIES OF THE ISSUER WITH RESPECT TO     654          

REGISTRATION OF TRANSFER;                                          655          

      (3)  THE EFFECTIVENESS OF REGISTRATION OF TRANSFER BY THE    657          

ISSUER;                                                                         

      (4)  WHETHER THE ISSUER OWES ANY DUTIES TO AN ADVERSE        659          

CLAIMANT TO A SECURITY; AND                                        660          

      (5)  WHETHER AN ADVERSE CLAIM CAN BE ASSERTED AGAINST A      662          

PERSON TO WHOM TRANSFER OF A CERTIFICATED OR UNCERTIFICATED        663          

SECURITY IS REGISTERED OR A PERSON WHO OBTAINS CONTROL OF AN       664          

UNCERTIFICATED SECURITY.                                                        

      (B)  THE LOCAL LAW OF THE SECURITIES INTERMEDIARY'S          666          

JURISDICTION, AS SPECIFIED IN DIVISION (E) OF THIS SECTION,        667          

                                                          16     

                                                                 
GOVERNS:                                                                        

      (1)  ACQUISITION OF A SECURITY ENTITLEMENT FROM THE          669          

SECURITIES INTERMEDIARY;                                           670          

      (2)  THE RIGHTS AND DUTIES OF THE SECURITIES INTERMEDIARY    672          

AND ENTITLEMENT HOLDER ARISING OUT OF A SECURITY ENTITLEMENT;      673          

      (3)  WHETHER THE SECURITIES INTERMEDIARY OWES ANY DUTIES TO  675          

AN ADVERSE CLAIMANT TO A SECURITY ENTITLEMENT; AND                 676          

      (4)  WHETHER AN ADVERSE CLAIM CAN BE ASSERTED AGAINST A      678          

PERSON WHO ACQUIRES A SECURITY ENTITLEMENT FROM THE SECURITIES     679          

INTERMEDIARY OR A PERSON WHO PURCHASES A SECURITY ENTITLEMENT OR   680          

INTEREST THEREIN FROM AN ENTITLEMENT HOLDER.                       681          

      (C)  THE LOCAL LAW OF THE JURISDICTION IN WHICH A SECURITY   683          

CERTIFICATE IS LOCATED AT THE TIME OF DELIVERY GOVERNS WHETHER AN  684          

ADVERSE CLAIM CAN BE ASSERTED AGAINST A PERSON TO WHOM THE         685          

SECURITY CERTIFICATE IS DELIVERED.                                 686          

      (D)  "ISSUER'S JURISDICTION" MEANS THE JURISDICTION UNDER    688          

WHICH THE ISSUER OF THE SECURITY IS ORGANIZED OR, IF PERMITTED BY  689          

THE LAW OF THAT JURISDICTION, THE LAW OF ANOTHER JURISDICTION      690          

SPECIFIED BY THE ISSUER.  AN ISSUER ORGANIZED UNDER THE LAW OF     691          

THIS STATE MAY SPECIFY THE LAW OF ANOTHER JURISDICTION AS THE LAW  692          

GOVERNING THE MATTERS SPECIFIED IN DIVISIONS (A)(2) TO (5) OF      693          

THIS SECTION.                                                                   

      (E)  THE FOLLOWING RULES DETERMINE A "SECURITIES             695          

INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS SECTION:         696          

      (1)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     698          

AND ITS ENTITLEMENT HOLDER SPECIFIES THAT IT IS GOVERNED BY THE    699          

LAW OF A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE         700          

SECURITIES INTERMEDIARY'S JURISDICTION.                                         

      (2)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     702          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY THE GOVERNING LAW AS   703          

PROVIDED IN DIVISION (E)(1) OF THIS SECTION, BUT EXPRESSLY         704          

SPECIFIES THAT THE SECURITIES ACCOUNT IS MAINTAINED AT AN OFFICE   705          

IN A PARTICULAR JURISDICTION, THAT JURISDICTION IS THE SECURITIES  706          

INTERMEDIARY'S JURISDICTION.                                                    

                                                          17     

                                                                 
      (3)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     708          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY A JURISDICTION AS      709          

PROVIDED IN DIVISION (E)(1) OR (2) OF THIS SECTION, THE            710          

SECURITIES INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN      711          

WHICH IS LOCATED THE OFFICE IDENTIFIED IN AN ACCOUNT STATEMENT AS  712          

THE OFFICE SERVING THE ENTITLEMENT HOLDER'S ACCOUNT.                            

      (4)  IF AN AGREEMENT BETWEEN THE SECURITIES INTERMEDIARY     714          

AND ITS ENTITLEMENT HOLDER DOES NOT SPECIFY A JURISDICTION AS      715          

PROVIDED IN DIVISION (E)(1) OR (2) OF THIS SECTION AND AN ACCOUNT  716          

STATEMENT DOES NOT IDENTIFY AN OFFICE SERVING THE ENTITLEMENT      717          

HOLDER'S ACCOUNT AS PROVIDED IN DIVISION (E)(3) OF THIS SECTION,   718          

THE SECURITIES INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN  719          

WHICH IS LOCATED THE CHIEF EXECUTIVE OFFICE OF THE SECURITIES      720          

INTERMEDIARY.                                                                   

      (F)  A SECURITIES INTERMEDIARY'S JURISDICTION IS NOT         722          

DETERMINED BY THE PHYSICAL LOCATION OF CERTIFICATES REPRESENTING   723          

FINANCIAL ASSETS, OR BY THE JURISDICTION IN WHICH IS ORGANIZED     724          

THE ISSUER OF THE FINANCIAL ASSET WITH RESPECT TO WHICH AN         725          

ENTITLEMENT HOLDER HAS A SECURITY ENTITLEMENT, OR BY THE LOCATION  726          

OF FACILITIES FOR DATA PROCESSING OR OTHER RECORD KEEPING                       

CONCERNING THE ACCOUNT.                                            727          

      Sec. 1308.06.  A RULE ADOPTED BY A CLEARING CORPORATION      729          

GOVERNING RIGHTS AND OBLIGATIONS AMONG THE CLEARING CORPORATION    730          

AND ITS PARTICIPANTS IN THE CLEARING CORPORATION IS EFFECTIVE      731          

EVEN IF THE RULE CONFLICTS WITH THIS CHAPTER AND AFFECTS ANOTHER   732          

PARTY WHO DOES NOT CONSENT TO THE RULE.                                         

      Sec. 1308.07.  A CONTRACT OR MODIFICATION OF A CONTRACT FOR  734          

THE SALE OR PURCHASE OF A SECURITY IS ENFORCEABLE WHETHER OR NOT   735          

THERE IS A WRITING SIGNED OR RECORD AUTHENTICATED BY A PARTY       736          

AGAINST WHOM ENFORCEMENT IS SOUGHT, EVEN IF THE CONTRACT OR        737          

MODIFICATION IS NOT CAPABLE OF PERFORMANCE WITHIN ONE YEAR OF ITS  738          

MAKING.                                                                         

      Sec. 1308.08.  (A)  With respect to obligations on or        747          

defenses to a security, "issuer" includes a person who:            748          

                                                          18     

                                                                 
      (1)  Places or authorizes the placing of his ITS name on a   750          

certificated security CERTIFICATE, otherwise than as               751          

authenticating trustee, registrar, transfer agent, or the like,    753          

to evidence that it represents a share, participation, or other    754          

interest in his ITS property or in an enterprise, or to evidence   756          

his ITS duty to perform an obligation represented by the           757          

certificated security CERTIFICATE;                                 758          

      (2)  Creates shares, participations, or other interests in   760          

his ITS property or in an enterprise, or undertakes obligations,   762          

which shares, participations, interests, or obligations THAT are   763          

uncertificated securities;                                                      

      (3)  Directly or indirectly creates fractional interests in  765          

his ITS rights or property, which IF THE fractional interests are  767          

represented by certificated securities SECURITY CERTIFICATES; or   768          

      (4)  Becomes responsible for, or in place of, any other      770          

person described as an issuer in this section.                     771          

      (B)  With respect to obligations on or defenses to a         773          

security, a guarantor is an issuer to the extent of his ITS        774          

guaranty, whether or not his ITS obligation is noted on a          775          

certificated security or on statements of uncertificated           776          

securities sent pursuant to section 1308.44 of the Revised Code    778          

CERTIFICATE.                                                                    

      (C)  With respect to registration of transfer, pledge, or    780          

release as provided in sections 1308.37 to 1308.44 of the Revised  781          

Code, "issuer" means a person on whose behalf transfer books are   782          

maintained.                                                        783          

      Sec. 1308.09.  (A)  Even against a purchaser for value and   792          

without notice, the terms of a CERTIFICATED security include:      793          

      (1)  If the security is certificated, those TERMS stated on  795          

the security;                                                      796          

      (2)  If the security is uncertificated, those contained in   798          

the initial transaction statement sent to such purchaser or, if    799          

his interest is transferred to him other than by registration of   800          

transfer, pledge, or release, the initial transaction statement    802          

                                                          19     

                                                                 
sent to the registered owner or registered pledgee; and            803          

      (3)  Those CERTIFICATE AND TERMS made part of the security   805          

by reference, on the certificated security or in the initial       806          

transaction statement, CERTIFICATE to another instrument,          807          

indenture, or document or to a constitution, statute, ordinance,   809          

rule, regulation, order, or the like, to the extent that the       810          

terms referred to do not conflict with the terms stated on the     811          

certificated security or contained in the statement CERTIFICATE.   812          

A reference under division (A)(3) of this section does not of      814          

itself charge a purchaser for value with notice of a defect going  815          

to the validity of the security, even though IF the certificated   816          

security or statement CERTIFICATE expressly states that a person   817          

accepting it admits notice.                                                     

      THE TERMS OF AN UNCERTIFICATED SECURITY INCLUDE THOSE        819          

STATED IN ANY INSTRUMENT, INDENTURE, OR DOCUMENT, OR IN A          820          

CONSTITUTION, STATUTE, ORDINANCE, RULE, REGULATION, ORDER, OR THE  821          

LIKE, PURSUANT TO WHICH THE SECURITY IS ISSUED.                                 

      (B)(1) THE FOLLOWING RULES APPLY IF AN ISSUER ASSERTS THAT   823          

A SECURITY IS NOT VALID:                                           824          

      (1)  A certificated security in the hands of a purchaser     826          

for value or an uncertificated security as to which an initial     827          

transaction statement has been sent to a purchaser for value,      828          

other than a security ONE issued by a government or governmental   829          

SUBDIVISION, agency, or unit INSTRUMENTALITY, even though issued   831          

with a defect going to its validity, is valid with respect to the  832          

IN THE HANDS OF A purchaser if he is FOR VALUE AND without notice  833          

of the particular defect unless the defect involves a violation    834          

of A constitutional provisions, in which PROVISION.  IN THAT       836          

case, the security is valid with respect to IN THE HANDS OF a      837          

subsequent purchaser for value and without notice of the defect,   838          

OTHER THAN ONE WHO TAKES BY ORIGINAL ISSUE.                        839          

      (2)  The provisions of division (B)(1) of this section       841          

apply to an issuer that is a government or governmental            842          

SUBDIVISION, agency, or unit INSTRUMENTALITY only if either there  844          

                                                          20     

                                                                 
has been substantial compliance with the legal requirements        846          

governing the issue or the issuer has received a substantial       847          

consideration for the issue as a whole or for the particular       848          

security and a stated purpose of the issue is one for which the    849          

issuer has power to borrow money or issue the security.            850          

      (C)  Except as OTHERWISE provided in the case of certain     852          

unauthorized signatures on issue under section 1308.12 of the      854          

Revised Code, lack of genuineness of a certificated security or    855          

an initial transaction statement is a complete defense, even       856          

against a purchaser for value and without notice.                  857          

      (D)  All other defenses of the issuer of a certificated or   859          

uncertificated security, including nondelivery and conditional     860          

delivery of a certificated security, are ineffective against a     861          

purchaser for value who has taken THE CERTIFICATED SECURITY        862          

without notice of the particular defense.                          863          

      (E)  Nothing in this THIS section shall be construed to      865          

DOES NOT affect the right of a party to CANCEL a CONTRACT FOR A    867          

SECURITY "when, as and if issued" or a "when distributed"          868          

contract to cancel the contract in the event of a material change  869          

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

contract or in the plan or arrangement pursuant to which the       871          

security is to be issued or distributed.                                        

      (F)  IF A SECURITY IS HELD BY A SECURITIES INTERMEDIARY      873          

AGAINST WHOM AN ENTITLEMENT HOLDER HAS A SECURITY ENTITLEMENT      874          

WITH RESPECT TO THE SECURITY, THE ISSUER MAY NOT ASSERT ANY        875          

DEFENSE THAT THE ISSUER COULD NOT ASSERT IF THE ENTITLEMENT        876          

HOLDER HELD THE SECURITY DIRECTLY.                                              

      Sec. 1308.10.  (A)  After an act or event, OTHER THAN A      885          

CALL THAT HAS BEEN REVOKED, creating a right to immediate          887          

performance of the principal obligation represented by a           888          

certificated security or that sets a date on or after which the    889          

security is to be presented or surrendered for redemption or                    

exchange, a purchaser is charged with notice of any defect in its  890          

issue or defense of the issuer if THE ACT OR EVENT:                891          

                                                          21     

                                                                 
      (1)  The act or event is one requiring (A)  REQUIRES the     894          

payment of money, the delivery of A certificated securities                     

SECURITY, the registration of transfer of AN uncertificated        896          

securities SECURITY, or any of these THEM on presentation or       897          

surrender of the certificated security CERTIFICATE, the funds      898          

MONEY or securities are SECURITY IS available on the date set for  899          

payment or exchange, and he THE PURCHASER takes the security more  901          

than one year after that date; and OR                              902          

      (2)  The act or event is (B)  IS not covered by division     905          

(A)(1) of this section and he THE PURCHASER takes the security     906          

more than two years after the date set for surrender or            907          

presentation or the date on which performance became due.          908          

      (B)  A call that has been revoked is not within division     910          

(A) of this section.                                               911          

      Sec. 1308.11.  (A)  A restriction on transfer of a security  920          

imposed by the issuer, even though IF otherwise lawful, is         921          

ineffective against any A person without actual knowledge of it    922          

unless:                                                            923          

      (A)(1)  The security is certificated and the restriction is  925          

noted conspicuously thereon ON THE SECURITY CERTIFICATE; or        926          

      (B)(2)  The security is uncertificated and a notation of     929          

the restriction is contained in the initial transaction statement               

sent to the person or, if his interest is transferred to him       931          

other than by registration of transfer, pledge, or release, the    932          

initial transaction statement sent to the registered owner or the  934          

registered pledgee HAS BEEN NOTIFIED OF THE RESTRICTION.           935          

      (B)  A LIEN IN FAVOR OF AN ISSUER UPON A CERTIFICATED        937          

SECURITY IS VALID AGAINST A PURCHASER ONLY IF THE RIGHT OF THE     938          

ISSUER TO THE LIEN IS NOTED CONSPICUOUSLY ON THE SECURITY          939          

CERTIFICATE.                                                                    

      Sec. 1308.12.  An unauthorized signature placed on a         948          

certificated security prior to CERTIFICATE BEFORE or in the        950          

course of issue or placed on an initial transaction statement is                

ineffective, but the signature is effective in favor of a          952          

                                                          22     

                                                                 
purchaser for value of the certificated security or a purchaser    953          

for value of an uncertified security to whom the initial           954          

transaction statement has been sent, if the purchaser is without   955          

notice of the lack of authority and if the signing has been done   956          

by:                                                                957          

      (A)  An authenticating trustee, registrar, transfer agent,   959          

or other person entrusted by the issuer with the signing of the    960          

security, CERTIFICATE OR of similar securities SECURITY            962          

CERTIFICATES, or of initial transaction statements or the          963          

immediate preparation for signing of any of them; or               964          

      (B)  An employee of the issuer, or of any of the foregoing   966          

PERSONS LISTED IN DIVISION (A) OF THIS SECTION, entrusted with     967          

responsible handling of the security or initial transaction        968          

statement CERTIFICATE.                                             969          

      Sec. 1308.13.  (A)  If a certificated security CERTIFICATE   978          

contains the signatures necessary to its issue or transfer but is  980          

incomplete in any other respect:                                   981          

      (1)  Any person may complete it by filling in the blanks as  983          

authorized; and                                                    984          

      (2)  Even though IF the blanks are incorrectly filled in,    986          

the security as completed is enforceable by a purchaser who took   987          

it for value and without notice of the incorrectness.              988          

      (B)  A complete certificated security CERTIFICATE that has   990          

been improperly altered, even though IF fraudulently, remains      991          

enforceable, but only according to its original terms.             992          

      (C)  If an initial transaction statement contains the        994          

signatures necessary to its validity, but is incomplete in any     995          

other respect:                                                     996          

      (1)  Any person may complete it by filling in the blanks as  998          

authorized; and                                                    999          

      (2)  Even though the blanks are incorrectly filled in, the   1,001        

statement as completed is effective in favor of the person to      1,002        

whom it is sent if he purchased the security referred to therein   1,004        

for value and without notice of the incorrectness.                              

                                                          23     

                                                                 
      (D)  A complete initial transaction statement that has been  1,006        

improperly altered, even though fraudulently, is effective in      1,007        

favor of a purchaser to whom it has been sent, but only according  1,008        

to its original terms.                                             1,009        

      Sec. 1308.14.  (A)  Prior to BEFORE due presentment for      1,018        

registration of transfer of a certificated security in registered  1,019        

form OR OF AN INSTRUCTION REQUESTING REGISTRATION OF TRANSFER OF   1,020        

AN UNCERTIFICATED SECURITY, the issuer or indenture trustee may    1,021        

treat the registered owner as the person exclusively entitled to   1,022        

vote, to receive notifications, and otherwise to exercise all the  1,023        

rights and powers of an owner.                                     1,024        

      (B)  Subject to the provisions of divisions (C), (D), and    1,026        

(F) of this section, the issuer or indenture trustee may treat     1,027        

the registered owner of an uncertificated security as the person   1,028        

exclusively entitled to vote, to receive notifications, and        1,029        

otherwise to exercise all the rights and powers of an owner.       1,030        

      (C)  The registered owner of an uncertificated security      1,032        

that is subject to a registered pledge is not entitled to          1,033        

registration of transfer prior to the due presentment to the       1,034        

issuer of a release instruction.  The exercise of conversion       1,035        

rights with respect to a convertible uncertificated security is a  1,036        

transfer within the meaning of this section.                       1,037        

      (D)  Upon due presentment of a transfer instruction from     1,039        

the registered pledgee of an uncertificated security, the issuer   1,040        

shall:                                                             1,041        

      (1)  Register the transfer of the security to the new owner  1,043        

free of pledge, if the instruction specifies a new owner, who may  1,044        

be the registered pledgee, and does not specify a pledgee;         1,045        

      (2)  Register the transfer of the security to the new owner  1,047        

subject to the interest of the existing pledgee, if the            1,048        

instruction specifies a new owner and the existing pledgee; or     1,049        

      (3)  Register the release of the security from the existing  1,051        

pledge and register the pledge of the security to the other        1,052        

pledgee, if the instruction specifies the existing owner and       1,053        

                                                          24     

                                                                 
another pledgee.                                                   1,054        

      (E)  Continuity of perfection of a security interest is not  1,056        

broken by registration of transfer under division (D)(2) of this   1,057        

section or by registration of release and pledge under division    1,058        

(D)(3) of this section, if the security interest is assigned.      1,059        

      (F)  If an uncertificated security is subject to a           1,061        

registered pledge:                                                 1,062        

      (1)  Any uncertificated securities issued in exchange for    1,064        

or distributed with respect to the pledged security shall be       1,065        

registered subject to the pledge;                                  1,066        

      (2)  Any certificated securities issued in exchange for or   1,068        

distributed with respect to the pledged security shall be          1,069        

delivered to the registered pledgee; and                           1,070        

      (3)  Any money paid in exchange for or in redemption of      1,072        

part or all of the security shall be paid to the registered        1,073        

pledgee.                                                           1,074        

      (G)  Nothing in sections 1308.01 to 1308.44 of the Revised   1,076        

Code shall be construed to THIS CHAPTER DOES NOT affect the        1,077        

liability of the registered owner of a security for calls,         1,078        

assessments, or the like.                                          1,079        

      Sec. 1308.15.  (A)  A person placing his signature upon      1,088        

SIGNING a certificated security or an initial transaction          1,089        

statement CERTIFICATE as authenticating trustee, registrar,        1,090        

transfer agent, or the like, warrants to a purchaser for value of  1,091        

the certificated security or a purchaser for value of an           1,093        

uncertificated security to whom the initial transaction statement  1,094        

has been sent, if the purchaser is without notice of the           1,095        

particular defect, that:                                                        

      (1)  The certificated security or initial transaction        1,097        

CERTIFICATE is genuine;                                            1,098        

      (2)  His THE PERSON'S own participation in the issue or      1,100        

registration of the transfer, pledge, or release of the security   1,101        

is within his THE PERSON'S capacity and within the scope of the    1,102        

authority received by him THE PERSON from the issuer; and          1,103        

                                                          25     

                                                                 
      (3)  He THE PERSON has reasonable grounds to believe the     1,105        

CERTIFICATED security is in the form and within the amount the     1,106        

issuer is authorized to issue.                                     1,108        

      (B)  Unless otherwise agreed, a person by so placing his     1,110        

signature SIGNING UNDER DIVISION (A) OF THIS SECTION does not      1,112        

assume responsibility for the validity of the security in other                 

respects.                                                                       

      Sec. 1308.16.  (A)  Upon transfer EXCEPT AS OTHERWISE        1,121        

PROVIDED IN DIVISIONS (B) AND (C) OF THIS SECTION, UPON DELIVERY   1,122        

of a CERTIFICATED OR UNCERTIFICATED security to a purchaser as     1,123        

provided in section 1308.28 of the Revised Code, the purchaser     1,125        

acquires the ALL rights in the security which his THAT THE         1,126        

transferor had or had actual authority POWER to convey unless the  1,128        

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

of the Revised Code TRANSFER.                                      1,129        

      (B)  A transferee PURCHASER of a limited interest acquires   1,131        

rights only to the extent of the interest transferred PURCHASED.   1,133        

The creation or release of a security interest in a security is    1,134        

the transfer of a limited interest in that security.               1,135        

      (C)  A PURCHASER OF A CERTIFICATED SECURITY WHO AS A         1,137        

PREVIOUS HOLDER HAD NOTICE OF AN ADVERSE CLAIM DOES NOT IMPROVE    1,138        

ITS POSITION BY TAKING FROM A PROTECTED PURCHASER.                 1,139        

      Sec. 1308.17.  (A)  A "bona fide PROTECTED purchaser" is     1,148        

MEANS a purchaser for value in good faith and without OF A         1,149        

CERTIFICATED OR UNCERTIFICATED SECURITY, OR OF AN INTEREST         1,150        

THEREIN, WHO:                                                                   

      (1)  GIVES VALUE;                                            1,152        

      (2)  DOES NOT HAVE notice of any adverse claim:              1,154        

      (1)  Who takes delivery TO THE SECURITY; AND                 1,156        

      (3)  OBTAINS CONTROL of a THE certificated OR                1,158        

UNCERTIFICATED security in bearer form or in registered form,      1,159        

issued or indorsed to him or in blank;                             1,160        

      (2)  To whom the transfer, pledge, or release of an          1,162        

uncertificated security is registered on the books of the issuer;  1,163        

                                                          26     

                                                                 
or                                                                 1,164        

      (3)  To whom a security is transferred under the provisions  1,166        

of division (A)(3), (4)(a), or (7) of section 1308.28 of the       1,167        

Revised Code.                                                      1,168        

      (B)  "Adverse claim" includes a claim that a transfer was    1,170        

or would be wrongful or that a particular adverse person is the    1,171        

owner of or has an interest in the security.                       1,172        

      (C)  A bona fide purchaser in IN addition to acquiring the   1,174        

rights of a purchaser, as provided in section 1308.16 of the       1,175        

Revised Code, A PROTECTED PURCHASER also acquires his ITS          1,177        

interest in the security free of any adverse claim.                1,178        

      (D)  Notwithstanding division (A) of section 1308.16 of the  1,180        

Revised Code, the transferee of a particular certificated          1,181        

security who has been a party to any fraud or illegality           1,182        

affecting the security, or who as a prior holder of that           1,183        

certificated security had notice of an adverse claim, cannot       1,184        

improve his position by taking from a bona fide purchaser.         1,185        

      Sec. 1308.18.  (A)  A PERSON ACQUIRES A SECURITY OR AN       1,187        

INTEREST THEREIN, UNDER THIS CHAPTER, IF:                          1,188        

      (1)  THE PERSON IS A PURCHASER TO WHOM A SECURITY IS         1,190        

DELIVERED PURSUANT TO SECTION 1308.27 OF THE REVISED CODE; OR      1,191        

      (2)  THE PERSON ACQUIRES A SECURITY ENTITLEMENT TO THE       1,193        

SECURITY PURSUANT TO SECTION 1308.51 OF THE REVISED CODE.          1,194        

      (B)  A PERSON ACQUIRES A FINANCIAL ASSET, OTHER THAN A       1,196        

SECURITY, OR AN INTEREST THEREIN, UNDER THIS CHAPTER, IF THE       1,197        

PERSON ACQUIRES A SECURITY ENTITLEMENT TO THE FINANCIAL ASSET.     1,198        

      (C)  A PERSON WHO ACQUIRES A SECURITY ENTITLEMENT TO A       1,200        

SECURITY OR OTHER FINANCIAL ASSET HAS THE RIGHTS SPECIFIED IN      1,201        

SECTIONS 1308.51 TO 1308.61 OF THE REVISED CODE, BUT IS A          1,202        

PURCHASER OF ANY SECURITY, SECURITY ENTITLEMENT, OR OTHER                       

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY ONLY TO THE    1,203        

EXTENT PROVIDED IN SECTION 1308.53 OF THE REVISED CODE.            1,204        

      (D)  UNLESS THE CONTEXT SHOWS THAT A DIFFERENT MEANING IS    1,206        

INTENDED, A PERSON WHO IS REQUIRED BY OTHER LAW, REGULATION,       1,207        

                                                          27     

                                                                 
RULE, OR AGREEMENT TO TRANSFER, DELIVER, PRESENT, SURRENDER,       1,208        

EXCHANGE, OR OTHERWISE PUT IN THE POSSESSION OF ANOTHER PERSON A   1,209        

SECURITY OR FINANCIAL ASSET SATISFIES THAT REQUIREMENT BY CAUSING  1,210        

THE OTHER PERSON TO ACQUIRE AN INTEREST IN THE SECURITY OR         1,211        

FINANCIAL ASSET PURSUANT TO DIVISION (A) OR (B) OF THIS SECTION.   1,212        

      Sec. 1308.19.  (A)  A PERSON HAS NOTICE OF AN ADVERSE CLAIM  1,214        

IF:                                                                             

      (1)  THE PERSON KNOWS OF THE ADVERSE CLAIM;                  1,216        

      (2)  THE PERSON IS AWARE OF FACTS SUFFICIENT TO INDICATE     1,218        

THAT THERE IS A SIGNIFICANT PROBABILITY THAT THE ADVERSE CLAIM     1,219        

EXISTS AND DELIBERATELY AVOIDS INFORMATION THAT WOULD ESTABLISH    1,220        

THE EXISTENCE OF THE ADVERSE CLAIM; OR                                          

      (3)  THE PERSON HAS A DUTY, IMPOSED BY STATUTE OR RULE, TO   1,222        

INVESTIGATE WHETHER AN ADVERSE CLAIM EXISTS, AND THE               1,223        

INVESTIGATION SO REQUIRED WOULD ESTABLISH THE EXISTENCE OF THE     1,224        

ADVERSE CLAIM.                                                                  

      (B)  HAVING KNOWLEDGE THAT A FINANCIAL ASSET OR INTEREST     1,226        

THEREIN IS OR HAS BEEN TRANSFERRED BY A REPRESENTATIVE IMPOSES NO  1,227        

DUTY OF INQUIRY INTO THE RIGHTFULNESS OF A TRANSACTION AND IS NOT  1,228        

NOTICE OF AN ADVERSE CLAIM.  HOWEVER, A PERSON WHO KNOWS THAT A    1,229        

REPRESENTATIVE HAS TRANSFERRED A FINANCIAL ASSET OR INTEREST       1,230        

THEREIN IN A TRANSACTION THAT IS, OR WHOSE PROCEEDS ARE BEING      1,231        

USED, FOR THE INDIVIDUAL BENEFIT OF THE REPRESENTATIVE OR                       

OTHERWISE IN BREACH OF DUTY HAS NOTICE OF AN ADVERSE CLAIM.        1,232        

      (C)  AN ACT OR EVENT THAT CREATES A RIGHT TO IMMEDIATE       1,234        

PERFORMANCE OF THE PRINCIPAL OBLIGATION REPRESENTED BY A SECURITY  1,235        

CERTIFICATE OR SETS A DATE ON OR AFTER WHICH THE CERTIFICATE IS    1,236        

TO BE PRESENTED OR SURRENDERED FOR REDEMPTION OR EXCHANGE DOES     1,237        

NOT ITSELF CONSTITUTE NOTICE OF AN ADVERSE CLAIM EXCEPT IN THE     1,238        

CASE OF A TRANSFER MORE THAN:                                                   

      (1)  ONE YEAR AFTER A DATE SET FOR PRESENTMENT OR SURRENDER  1,240        

FOR REDEMPTION OR EXCHANGE; OR                                     1,241        

      (2)  SIX MONTHS AFTER A DATE SET FOR PAYMENT OF MONEY        1,243        

AGAINST PRESENTATION OR SURRENDER OF THE CERTIFICATE, IF MONEY     1,244        

                                                          28     

                                                                 
WAS AVAILABLE FOR PAYMENT ON THAT DATE.                            1,245        

      (D)  A PURCHASER OF A CERTIFICATED SECURITY HAS NOTICE OF    1,247        

AN ADVERSE CLAIM IF THE SECURITY CERTIFICATE:                      1,248        

      (1)  WHETHER IN BEARER OR REGISTERED FORM, HAS BEEN          1,250        

INDORSED "FOR COLLECTION" OR "FOR SURRENDER" OR FOR SOME OTHER     1,251        

PURPOSE NOT INVOLVING TRANSFER; OR                                 1,252        

      (2)  IS IN BEARER FORM AND HAS ON IT AN UNAMBIGUOUS          1,254        

STATEMENT THAT IT IS THE PROPERTY OF A PERSON OTHER THAN THE       1,255        

TRANSFEROR, BUT THE MERE WRITING OF A NAME ON THE CERTIFICATE IS   1,256        

NOT SUCH A STATEMENT.                                                           

      (E)  FILING OF A FINANCING STATEMENT UNDER CHAPTER 1309. OF  1,259        

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

ASSET.                                                                          

      Sec. 1308.20.  (A)  A PERSON WHO TRANSFERS A CERTIFICATED    1,261        

SECURITY TO A PURCHASER FOR VALUE WARRANTS TO THE PURCHASER, AND   1,262        

AN INDORSER, IF THE TRANSFER IS BY INDORSEMENT, WARRANTS TO ANY    1,263        

SUBSEQUENT PURCHASER, THAT:                                                     

      (1)  THE CERTIFICATE IS GENUINE AND HAS NOT BEEN MATERIALLY  1,265        

ALTERED;                                                                        

      (2)  THE TRANSFEROR OR INDORSER DOES NOT KNOW OF ANY FACT    1,267        

THAT MIGHT IMPAIR THE VALIDITY OF THE SECURITY;                    1,268        

      (3)  THERE IS NO ADVERSE CLAIM TO THE SECURITY;              1,270        

      (4)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,272        

TRANSFER;                                                                       

      (5)  IF THE TRANSFER IS BY INDORSEMENT, THE INDORSEMENT IS   1,274        

MADE BY AN APPROPRIATE PERSON, OR IF THE INDORSEMENT IS BY AN      1,275        

AGENT, THE AGENT HAS ACTUAL AUTHORITY TO ACT ON BEHALF OF THE      1,276        

APPROPRIATE PERSON; AND                                                         

      (6)  THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.       1,278        

      (B)  A PERSON WHO ORIGINATES AN INSTRUCTION FOR              1,280        

REGISTRATION OF TRANSFER OF AN UNCERTIFICATED SECURITY TO A        1,281        

PURCHASER FOR VALUE WARRANTS TO THE PURCHASER THAT:                1,282        

      (1)  THE INSTRUCTION IS MADE BY AN APPROPRIATE PERSON, OR    1,284        

IF THE INSTRUCTION IS BY AN AGENT, THE AGENT HAS ACTUAL AUTHORITY  1,285        

                                                          29     

                                                                 
TO ACT ON BEHALF OF THE APPROPRIATE PERSON;                        1,286        

      (2)  THE SECURITY IS VALID;                                  1,288        

      (3)  THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND          1,290        

      (4)  AT THE TIME THE INSTRUCTION IS PRESENTED TO THE         1,292        

ISSUER:                                                                         

      (a)  THE PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF   1,294        

TRANSFER;                                                          1,295        

      (b)  THE TRANSFER WILL BE REGISTERED BY THE ISSUER FREE      1,297        

FROM ALL LIENS, SECURITY INTERESTS, RESTRICTIONS, AND CLAIMS       1,298        

OTHER THAN THOSE SPECIFIED IN THE INSTRUCTION;                     1,299        

      (c)  THE TRANSFER WILL NOT VIOLATE ANY RESTRICTION ON        1,301        

TRANSFER; AND                                                      1,302        

      (d)  THE REQUESTED TRANSFER WILL OTHERWISE BE EFFECTIVE AND  1,304        

RIGHTFUL.                                                          1,305        

      (C)  A PERSON WHO TRANSFERS AN UNCERTIFICATED SECURITY TO A  1,307        

PURCHASER FOR VALUE AND DOES NOT ORIGINATE AN INSTRUCTION IN       1,308        

CONNECTION WITH THE TRANSFER WARRANTS THAT:                        1,309        

      (1)  THE UNCERTIFICATED SECURITY IS VALID;                   1,311        

      (2)  THERE IS NO ADVERSE CLAIM TO THE SECURITY;              1,313        

      (3)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,315        

TRANSFER; AND                                                                   

      (4)  THE TRANSFER IS OTHERWISE EFFECTIVE AND RIGHTFUL.       1,317        

      (D)  A PERSON WHO INDORSES A SECURITY CERTIFICATE WARRANTS   1,319        

TO THE ISSUER THAT:                                                1,320        

      (1)  THERE IS NO ADVERSE CLAIM TO THE SECURITY; AND          1,322        

      (2)  THE INDORSEMENT IS EFFECTIVE.                           1,324        

      (E)  A PERSON WHO ORIGINATES AN INSTRUCTION FOR              1,326        

REGISTRATION OF TRANSFER OF AN UNCERTIFICATED SECURITY WARRANTS    1,327        

TO THE ISSUER THAT:                                                             

      (1)  THE INSTRUCTION IS EFFECTIVE; AND                       1,329        

      (2)  AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER  1,331        

THE PURCHASER WILL BE ENTITLED TO THE REGISTRATION OF TRANSFER.    1,332        

      (F)  A PERSON WHO PRESENTS A CERTIFICATED SECURITY FOR       1,334        

REGISTRATION OF TRANSFER OR FOR PAYMENT OR EXCHANGE WARRANTS TO    1,335        

                                                          30     

                                                                 
THE ISSUER THAT THE PERSON IS ENTITLED TO THE REGISTRATION,        1,336        

PAYMENT, OR EXCHANGE, BUT A PURCHASER FOR VALUE AND WITHOUT        1,337        

NOTICE OF ADVERSE CLAIMS TO WHOM TRANSFER IS REGISTERED WARRANTS   1,338        

ONLY THAT THE PERSON HAS NO KNOWLEDGE OF ANY UNAUTHORIZED                       

SIGNATURE IN A NECESSARY INDORSEMENT.                              1,339        

      (G)  IF A PERSON ACTS AS AGENT OF ANOTHER IN DELIVERING A    1,341        

CERTIFICATED SECURITY TO A PURCHASER, THE IDENTITY OF THE          1,342        

PRINCIPAL WAS KNOWN TO THE PERSON TO WHOM THE CERTIFICATE WAS      1,343        

DELIVERED, AND THE CERTIFICATE DELIVERED BY THE AGENT WAS          1,344        

RECEIVED BY THE AGENT FROM THE PRINCIPAL OR RECEIVED BY THE AGENT  1,345        

FROM ANOTHER PERSON AT THE DIRECTION OF THE PRINCIPAL, THE PERSON  1,346        

DELIVERING THE SECURITY CERTIFICATE WARRANTS ONLY THAT THE                      

DELIVERING PERSON HAS AUTHORITY TO ACT FOR THE PRINCIPAL AND DOES  1,347        

NOT KNOW OF ANY ADVERSE CLAIM TO THE CERTIFICATED SECURITY.        1,348        

      (H)  A SECURED PARTY WHO REDELIVERS A SECURITY CERTIFICATE   1,350        

RECEIVED, OR AFTER PAYMENT AND ON ORDER OF THE DEBTOR DELIVERS     1,351        

THE SECURITY CERTIFICATE TO ANOTHER PERSON, MAKES ONLY THE         1,352        

WARRANTIES OF AN AGENT UNDER DIVISION (G) OF THIS SECTION.         1,353        

      (I)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (G) OF THIS    1,355        

SECTION, A BROKER ACTING FOR A CUSTOMER MAKES TO THE ISSUER AND A  1,356        

PURCHASER THE WARRANTIES PROVIDED IN DIVISIONS (A) TO (F) OF THIS  1,357        

SECTION.  A BROKER THAT DELIVERS A SECURITY CERTIFICATE TO ITS     1,358        

CUSTOMER, OR CAUSES ITS CUSTOMER TO BE REGISTERED AS THE OWNER OF  1,359        

AN UNCERTIFICATED SECURITY, MAKES TO THE CUSTOMER THE WARRANTIES   1,360        

PROVIDED IN DIVISION (A) OR (B) OF THIS SECTION, AND HAS THE       1,361        

RIGHTS AND PRIVILEGES OF A PURCHASER UNDER THIS SECTION.  THE      1,362        

WARRANTIES OF AND IN FAVOR OF THE BROKER ACTING AS AN AGENT ARE    1,363        

IN ADDITION TO APPLICABLE WARRANTIES GIVEN BY AND IN FAVOR OF THE  1,364        

CUSTOMER.                                                                       

      Sec. 1308.21.  (A)  A PERSON WHO ORIGINATES AN ENTITLEMENT   1,366        

ORDER TO A SECURITIES INTERMEDIARY WARRANTS TO THE SECURITIES      1,367        

INTERMEDIARY THAT:                                                              

      (1)  THE ENTITLEMENT ORDER IS MADE BY AN APPROPRIATE         1,369        

PERSON, OR IF THE ENTITLEMENT ORDER IS BY AN AGENT, THE AGENT HAS  1,370        

                                                          31     

                                                                 
ACTUAL AUTHORITY TO ACT ON BEHALF OF THE APPROPRIATE PERSON; AND   1,371        

      (2)  THERE IS NO ADVERSE CLAIM TO THE SECURITY ENTITLEMENT.  1,373        

      (B)  A PERSON WHO DELIVERS A SECURITY CERTIFICATE TO A       1,375        

SECURITIES INTERMEDIARY FOR CREDIT TO A SECURITIES ACCOUNT OR      1,376        

ORIGINATES AN INSTRUCTION WITH RESPECT TO AN UNCERTIFICATED        1,377        

SECURITY DIRECTING THAT THE UNCERTIFICATED SECURITY BE CREDITED    1,378        

TO A SECURITIES ACCOUNT MAKES TO THE SECURITIES INTERMEDIARY THE   1,379        

WARRANTIES SPECIFIED IN DIVISION (A) OR (B) OF SECTION 1308.20 OF  1,380        

THE REVISED CODE.                                                               

      (C)  IF A SECURITIES INTERMEDIARY DELIVERS A SECURITY        1,382        

CERTIFICATE TO ITS ENTITLEMENT HOLDER OR CAUSES ITS ENTITLEMENT    1,383        

HOLDER TO BE REGISTERED AS THE OWNER OF AN UNCERTIFICATED          1,384        

SECURITY, THE SECURITIES INTERMEDIARY MAKES TO THE ENTITLEMENT     1,385        

HOLDER THE WARRANTIES SPECIFIED IN DIVISION (A) OR (B) OF SECTION  1,386        

1308.20 OF THE REVISED CODE.                                                    

      Sec. 1308.22.  (A)  AN INDORSEMENT MAY BE IN BLANK OR        1,395        

SPECIAL.  AN INDORSEMENT IN BLANK INCLUDES AN INDORSEMENT TO       1,397        

BEARER.  A SPECIAL INDORSEMENT SPECIFIES TO WHOM A SECURITY IS TO  1,398        

BE TRANSFERRED OR WHO HAS POWER TO TRANSFER IT.  A HOLDER MAY      1,400        

CONVERT A BLANK INDORSEMENT TO A SPECIAL INDORSEMENT.                           

      (B)  AN INDORSEMENT PURPORTING TO BE ONLY OF PART OF A       1,402        

SECURITY CERTIFICATE REPRESENTING UNITS INTENDED BY THE ISSUER TO  1,403        

BE SEPARATELY TRANSFERABLE IS EFFECTIVE TO THE EXTENT OF THE       1,404        

INDORSEMENT.                                                                    

      (C)  AN INDORSEMENT, WHETHER SPECIAL OR IN BLANK, DOES NOT   1,406        

CONSTITUTE A TRANSFER UNTIL DELIVERY OF THE CERTIFICATE ON WHICH   1,407        

IT APPEARS OR, IF THE INDORSEMENT IS ON A SEPARATE DOCUMENT,       1,409        

UNTIL DELIVERY OF BOTH THE DOCUMENT AND THE CERTIFICATE.           1,410        

      (D)  If a certificated security CERTIFICATE in registered    1,413        

form has been delivered to a purchaser without a necessary         1,414        

indorsement he, THE PURCHASER may become a bona fide PROTECTED     1,415        

purchaser only as of the time WHEN the indorsement is supplied;    1,416        

but.  HOWEVER, against the A transferor, the A transfer is         1,418        

complete upon delivery and the purchaser has a specifically        1,419        

                                                          32     

                                                                 
enforceable right to have any necessary indorsement supplied.      1,420        

      (E)  AN INDORSEMENT OF A SECURITY CERTIFICATE IN BEARER      1,422        

FORM MAY GIVE NOTICE OF AN ADVERSE CLAIM TO THE CERTIFICATE, BUT   1,423        

IT DOES NOT OTHERWISE AFFECT A RIGHT TO REGISTRATION THAT THE      1,424        

HOLDER POSSESSES.                                                               

      (F)  UNLESS OTHERWISE AGREED, A PERSON MAKING AN             1,426        

INDORSEMENT ASSUMES ONLY THE OBLIGATIONS PROVIDED IN SECTION       1,427        

1308.20 OF THE REVISED CODE AND NOT AN OBLIGATION THAT THE         1,428        

SECURITY WILL BE HONORED BY THE ISSUER.                                         

      Sec. 1308.23.  (A)  "APPROPRIATE PERSON" MEANS:              1,430        

      (1)  WITH RESPECT TO AN INDORSEMENT, THE PERSON SPECIFIED    1,432        

BY A SECURITY CERTIFICATE OR BY AN EFFECTIVE SPECIAL INDORSEMENT   1,433        

TO BE ENTITLED TO THE SECURITY;                                    1,434        

      (2)  WITH RESPECT TO AN INSTRUCTION, THE REGISTERED OWNER    1,436        

OF AN UNCERTIFICATED SECURITY;                                     1,437        

      (3)  WITH RESPECT TO AN ENTITLEMENT ORDER, THE ENTITLEMENT   1,439        

HOLDER;                                                                         

      (4)  IF THE PERSON DESIGNATED IN DIVISION (A)(1), (2), OR    1,441        

(3) OF THIS SECTION IS DECEASED, THE DESIGNATED PERSON'S           1,442        

SUCCESSOR TAKING UNDER OTHER LAW OR THE DESIGNATED PERSON'S        1,443        

PERSONAL REPRESENTATIVE ACTING FOR THE ESTATE OF THE DECEDENT; OR  1,444        

      (5)  IF THE PERSON DESIGNATED IN DIVISION (A)(1), (2), OR    1,446        

(3) OF THIS SECTION LACKS CAPACITY, THE DESIGNATED PERSON'S        1,447        

GUARDIAN, CONSERVATOR, OR OTHER SIMILAR REPRESENTATIVE WHO HAS     1,448        

POWER UNDER OTHER LAW TO TRANSFER THE SECURITY OR FINANCIAL        1,449        

ASSET.                                                                          

      (B)  AN INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER IS    1,451        

EFFECTIVE IF:                                                      1,452        

      (1)  IT IS MADE BY THE APPROPRIATE PERSON;                   1,454        

      (2)  IT IS MADE BY A PERSON WHO HAS POWER UNDER THE LAW OF   1,456        

AGENCY TO TRANSFER THE SECURITY OR FINANCIAL ASSET ON BEHALF OF    1,457        

THE APPROPRIATE PERSON, INCLUDING, IN THE CASE OF AN INSTRUCTION   1,458        

OR ENTITLEMENT ORDER, A PERSON WHO HAS CONTROL UNDER DIVISION      1,459        

(C)(2) OR (D)(2) OF SECTION 1308.24 OF THE REVISED CODE; OR        1,460        

                                                          33     

                                                                 
      (3)  THE APPROPRIATE PERSON HAS RATIFIED IT OR IS OTHERWISE  1,462        

PRECLUDED FROM ASSERTING ITS INEFFECTIVENESS.                      1,463        

      (C)  AN INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER MADE  1,465        

BY A REPRESENTATIVE IS EFFECTIVE EVEN IF:                          1,466        

      (1)  THE REPRESENTATIVE HAS FAILED TO COMPLY WITH A          1,468        

CONTROLLING INSTRUMENT OR WITH THE LAW OF THE STATE HAVING         1,469        

JURISDICTION OF THE REPRESENTATIVE RELATIONSHIP, INCLUDING ANY     1,470        

LAW REQUIRING THE REPRESENTATIVE TO OBTAIN COURT APPROVAL OF THE   1,471        

TRANSACTION; OR                                                                 

      (2)  THE REPRESENTATIVE'S ACTION IN MAKING THE INDORSEMENT,  1,473        

INSTRUCTION, OR ENTITLEMENT ORDER OR USING THE PROCEEDS OF THE     1,474        

TRANSACTION IS OTHERWISE A BREACH OF DUTY.                         1,475        

      (D)  IF A SECURITY IS REGISTERED IN THE NAME OF OR           1,477        

SPECIALLY INDORSED TO A PERSON DESCRIBED AS A REPRESENTATIVE, OR   1,478        

IF A SECURITIES ACCOUNT IS MAINTAINED IN THE NAME OF A PERSON      1,479        

DESCRIBED AS A REPRESENTATIVE, AN INDORSEMENT, INSTRUCTION, OR     1,480        

ENTITLEMENT ORDER MADE BY THE PERSON IS EFFECTIVE EVEN THOUGH THE  1,481        

PERSON IS NO LONGER SERVING IN THE DESCRIBED CAPACITY.                          

      (E)  EFFECTIVENESS OF AN INDORSEMENT, INSTRUCTION, OR        1,483        

ENTITLEMENT ORDER IS DETERMINED AS OF THE DATE THE INDORSEMENT,    1,484        

INSTRUCTION, OR ENTITLEMENT ORDER IS MADE, AND AN INDORSEMENT,     1,485        

INSTRUCTION, OR ENTITLEMENT ORDER DOES NOT BECOME INEFFECTIVE BY   1,486        

REASON OF ANY LATER CHANGE OF CIRCUMSTANCES.                       1,487        

      Sec. 1308.24.  (A)  A PURCHASER HAS "CONTROL" OF A           1,489        

CERTIFICATED SECURITY IN BEARER FORM IF THE CERTIFICATED SECURITY  1,490        

IS DELIVERED TO THE PURCHASER.                                     1,491        

      (B)  A PURCHASER HAS "CONTROL" OF A CERTIFICATED SECURITY    1,493        

IN REGISTERED FORM IF THE CERTIFICATED SECURITY IS DELIVERED TO    1,494        

THE PURCHASER, AND:                                                1,495        

      (1)  THE CERTIFICATE IS INDORSED TO THE PURCHASER OR IN      1,497        

BLANK BY AN EFFECTIVE INDORSEMENT; OR                              1,498        

      (2)  THE CERTIFICATE IS REGISTERED IN THE NAME OF THE        1,500        

PURCHASER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER BY THE  1,501        

ISSUER.                                                                         

                                                          34     

                                                                 
      (C)  A PURCHASER HAS "CONTROL" OF AN UNCERTIFICATED          1,503        

SECURITY IF:                                                                    

      (1)  THE UNCERTIFICATED SECURITY IS DELIVERED TO THE         1,505        

PURCHASER; OR                                                                   

      (2)  THE ISSUER HAS AGREED THAT IT WILL COMPLY WITH          1,507        

INSTRUCTIONS ORIGINATED BY THE PURCHASER WITHOUT FURTHER CONSENT   1,508        

BY THE REGISTERED OWNER.                                                        

      (D)  A PURCHASER HAS "CONTROL" OF A SECURITY ENTITLEMENT     1,510        

IF:                                                                             

      (1)  THE PURCHASER BECOMES THE ENTITLEMENT HOLDER; OR        1,512        

      (2)  THE SECURITIES INTERMEDIARY HAS AGREED THAT IT WILL     1,514        

COMPLY WITH ENTITLEMENT ORDERS ORIGINATED BY THE PURCHASER         1,515        

WITHOUT FURTHER CONSENT BY THE ENTITLEMENT HOLDER.                 1,516        

      (E)  IF AN INTEREST IN A SECURITY ENTITLEMENT IS GRANTED BY  1,518        

THE ENTITLEMENT HOLDER TO THE ENTITLEMENT HOLDER'S OWN SECURITIES  1,519        

INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS CONTROL.             1,520        

      (F)  A PURCHASER WHO HAS SATISFIED THE REQUIREMENTS OF       1,522        

DIVISION (C)(2) OR (D)(2) OF THIS SECTION HAS CONTROL EVEN IF THE  1,523        

REGISTERED OWNER IN THE CASE OF DIVISION (C)(2) OF THIS SECTION    1,524        

OR THE ENTITLEMENT HOLDER IN THE CASE OF DIVISION (D)(2) OF THIS   1,525        

SECTION RETAINS THE RIGHT TO MAKE SUBSTITUTIONS FOR THE            1,526        

UNCERTIFICATED SECURITY OR SECURITY ENTITLEMENT, TO ORIGINATE      1,527        

INSTRUCTIONS OR ENTITLEMENT ORDERS TO THE ISSUER OR SECURITIES     1,528        

INTERMEDIARY, OR OTHERWISE TO DEAL WITH THE UNCERTIFICATED         1,529        

SECURITY OR SECURITY ENTITLEMENT.                                  1,530        

      (G)  AN ISSUER OR A SECURITIES INTERMEDIARY MAY NOT ENTER    1,532        

INTO AN AGREEMENT OF THE KIND DESCRIBED IN DIVISION (C)(2) OR      1,533        

(D)(2) OF THIS SECTION WITHOUT THE CONSENT OF THE REGISTERED       1,534        

OWNER OR ENTITLEMENT HOLDER, BUT AN ISSUER OR A SECURITIES         1,535        

INTERMEDIARY IS NOT REQUIRED TO ENTER INTO SUCH AN AGREEMENT EVEN  1,536        

THOUGH THE REGISTERED OWNER OR ENTITLEMENT HOLDER SO DIRECTS.  AN  1,537        

ISSUER OR SECURITIES INTERMEDIARY THAT HAS ENTERED INTO SUCH AN    1,538        

AGREEMENT IS NOT REQUIRED TO CONFIRM THE EXISTENCE OF THE                       

AGREEMENT TO ANOTHER PARTY UNLESS REQUESTED TO DO SO BY THE        1,539        

                                                          35     

                                                                 
REGISTERED OWNER OR ENTITLEMENT HOLDER.                            1,540        

      Sec. 1308.25.  (A)  IF AN INSTRUCTION HAS BEEN ORIGINATED    1,542        

BY AN APPROPRIATE PERSON BUT IS INCOMPLETE IN ANY OTHER RESPECT,   1,543        

ANY PERSON MAY COMPLETE IT AS AUTHORIZED AND THE ISSUER MAY RELY   1,544        

ON IT AS COMPLETED, EVEN THOUGH IT HAS BEEN COMPLETED              1,545        

INCORRECTLY.                                                                    

      (B)  UNLESS OTHERWISE AGREED, A PERSON INITIATING AN         1,547        

INSTRUCTION ASSUMES ONLY THE OBLIGATIONS IMPOSED BY SECTION        1,548        

1308.20 OF THE REVISED CODE AND NOT AN OBLIGATION THAT THE         1,549        

SECURITY WILL BE HONORED BY THE ISSUER.                                         

      Sec. 1308.26.  (A)  A PERSON WHO GUARANTEES A SIGNATURE OF   1,551        

AN INDORSER OF A SECURITY CERTIFICATE WARRANTS THAT AT THE TIME    1,552        

OF SIGNING:                                                                     

      (1)  THE SIGNATURE WAS GENUINE;                              1,554        

      (2)  THE SIGNER WAS AN APPROPRIATE PERSON TO INDORSE, OR IF  1,556        

THE SIGNATURE IS BY AN AGENT, THE AGENT HAD ACTUAL AUTHORITY TO    1,557        

ACT ON BEHALF OF THE APPROPRIATE PERSON; AND                       1,558        

      (3)  THE SIGNER HAD LEGAL CAPACITY TO SIGN.                  1,560        

      (B)  A PERSON WHO GUARANTEES A SIGNATURE OF THE ORIGINATOR   1,562        

OF AN INSTRUCTION WARRANTS THAT AT THE TIME OF SIGNING:            1,563        

      (1)  THE SIGNATURE WAS GENUINE;                              1,565        

      (2)  THE SIGNER WAS AN APPROPRIATE PERSON TO ORIGINATE THE   1,567        

INSTRUCTION, OR IF THE SIGNATURE IS BY AN AGENT, THE AGENT HAD     1,568        

ACTUAL AUTHORITY TO ACT ON BEHALF OF THE APPROPRIATE PERSON, IF    1,569        

THE PERSON SPECIFIED IN THE INSTRUCTION AS THE REGISTERED OWNER    1,570        

WAS, IN FACT, THE REGISTERED OWNER, AS TO WHICH FACT THE           1,571        

SIGNATURE GUARANTOR DOES NOT MAKE A WARRANTY; AND                               

      (3)  THE SIGNER HAD LEGAL CAPACITY TO SIGN.                  1,574        

      (C)  A PERSON WHO SPECIALLY GUARANTEES THE SIGNATURE OF AN   1,576        

ORIGINATOR OF AN INSTRUCTION MAKES THE WARRANTIES OF A SIGNATURE   1,577        

GUARANTOR UNDER DIVISION (B) OF THIS SECTION AND ALSO WARRANTS     1,578        

THAT AT THE TIME THE INSTRUCTION IS PRESENTED TO THE ISSUER:       1,579        

      (1)  THE PERSON SPECIFIED IN THE INSTRUCTION AS THE          1,581        

REGISTERED OWNER OF THE UNCERTIFICATED SECURITY WILL BE THE        1,582        

                                                          36     

                                                                 
REGISTERED OWNER; AND                                                           

      (2)  THE TRANSFER OF THE UNCERTIFICATED SECURITY REQUESTED   1,584        

IN THE INSTRUCTION WILL BE REGISTERED BY THE ISSUER FREE FROM ALL  1,585        

LIENS, SECURITY INTERESTS, RESTRICTIONS, AND CLAIMS OTHER THAN     1,586        

THOSE SPECIFIED IN THE INSTRUCTION.                                1,587        

      (D)  A GUARANTOR UNDER DIVISIONS (A) AND (B) OF THIS         1,590        

SECTION OR A SPECIAL GUARANTOR UNDER DIVISION (C) OF THIS SECTION  1,591        

DOES NOT OTHERWISE WARRANT THE RIGHTFULNESS OF THE TRANSFER.                    

      (E)  A PERSON WHO GUARANTEES AN INDORSEMENT OF A SECURITY    1,593        

CERTIFICATE MAKES THE WARRANTIES OF A SIGNATURE GUARANTOR UNDER    1,594        

DIVISION (A) OF THIS SECTION AND ALSO WARRANTS THE RIGHTFULNESS    1,595        

OF THE TRANSFER IN ALL RESPECTS.                                   1,596        

      (F)  A PERSON WHO GUARANTEES AN INSTRUCTION REQUESTING THE   1,598        

TRANSFER OF AN UNCERTIFICATED SECURITY MAKES THE WARRANTIES OF A   1,599        

SPECIAL SIGNATURE GUARANTOR UNDER DIVISION (C) OF THIS SECTION     1,600        

AND ALSO WARRANTS THE RIGHTFULNESS OF THE TRANSFER IN ALL          1,601        

RESPECTS.                                                                       

      (G)  AN ISSUER MAY NOT REQUIRE A SPECIAL GUARANTY OF         1,603        

SIGNATURE, A GUARANTY OF INDORSEMENT, OR A GUARANTY OF             1,604        

INSTRUCTION AS A CONDITION TO REGISTRATION OF TRANSFER.            1,605        

      (H)  THE WARRANTIES UNDER THIS SECTION ARE MADE TO A PERSON  1,607        

TAKING OR DEALING WITH THE SECURITY IN RELIANCE ON THE GUARANTY,   1,608        

AND THE GUARANTOR IS LIABLE TO THE PERSON FOR LOSS RESULTING FROM  1,609        

THEIR BREACH.  AN INDORSER OR ORIGINATOR OF AN INSTRUCTION WHOSE   1,610        

SIGNATURE, INDORSEMENT, OR INSTRUCTION HAS BEEN GUARANTEED IS      1,611        

LIABLE TO A GUARANTOR FOR ANY LOSS SUFFERED BY THE GUARANTOR AS A  1,612        

RESULT OF BREACH OF THE WARRANTIES OF THE GUARANTOR.                            

      Sec. 1308.27.  (A)  DELIVERY OF A CERTIFICATED SECURITY TO   1,614        

A PURCHASER OCCURS WHEN:                                           1,615        

      (1)  THE PURCHASER ACQUIRES POSSESSION OF THE SECURITY       1,617        

CERTIFICATE;                                                                    

      (2)  ANOTHER PERSON, OTHER THAN A SECURITIES INTERMEDIARY,   1,619        

EITHER ACQUIRES POSSESSION OF THE SECURITY CERTIFICATE ON BEHALF   1,620        

OF THE PURCHASER OR, HAVING PREVIOUSLY ACQUIRED POSSESSION OF THE  1,621        

                                                          37     

                                                                 
CERTIFICATE, ACKNOWLEDGES THAT IT HOLDS FOR THE PURCHASER; OR      1,622        

      (3)  A SECURITIES INTERMEDIARY ACTING ON BEHALF OF THE       1,624        

PURCHASER ACQUIRES POSSESSION OF THE SECURITY CERTIFICATE, ONLY    1,625        

IF THE CERTIFICATE IS IN REGISTERED FORM AND HAS BEEN SPECIALLY    1,626        

INDORSED TO THE PURCHASER BY AN EFFECTIVE INDORSEMENT.             1,627        

      (B)  DELIVERY OF AN UNCERTIFICATED SECURITY TO A PURCHASER   1,629        

OCCURS WHEN:                                                       1,630        

      (1)  THE ISSUER REGISTERS THE PURCHASER AS THE REGISTERED    1,632        

OWNER, UPON ORIGINAL ISSUE OR REGISTRATION OF TRANSFER; OR         1,633        

      (2)  ANOTHER PERSON, OTHER THAN A SECURITIES INTERMEDIARY,   1,635        

EITHER BECOMES THE REGISTERED OWNER OF THE UNCERTIFICATED          1,636        

SECURITY ON BEHALF OF THE PURCHASER OR, HAVING PREVIOUSLY BECOME   1,637        

THE REGISTERED OWNER, ACKNOWLEDGES THAT IT HOLDS FOR THE           1,638        

PURCHASER.                                                                      

      Sec. 1308.31.  Unless otherwise agreed, the transferor of a  1,647        

certificated security or the transferor, pledgor, or pledgee of    1,649        

an uncertificated security on due demand must SHALL supply his     1,650        

THE purchaser with any proof of his authority to transfer,         1,652        

pledge, or release or with any other requisite necessary to        1,653        

obtain registration of the transfer, pledge, or release of the     1,655        

security, but if the transfer, pledge, or release is not for       1,656        

value, a transferor, pledgor, or pledgee need not do so COMPLY     1,657        

unless the purchaser furnishes PAYS the necessary expenses.        1,658        

Failure IF THE TRANSFEROR FAILS within a reasonable time to        1,659        

comply with a THE demand made gives, the purchaser the right to    1,661        

MAY reject or rescind the transfer, pledge, or release.            1,662        

      Sec. 1308.32.  (A)  THE INTEREST OF A DEBTOR IN A            1,664        

CERTIFICATED SECURITY MAY BE REACHED BY A CREDITOR ONLY BY ACTUAL  1,665        

SEIZURE OF THE SECURITY CERTIFICATE BY THE OFFICER MAKING THE      1,666        

ATTACHMENT OR LEVY, EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D)   1,667        

OF THIS SECTION.  HOWEVER, A CERTIFICATED SECURITY FOR WHICH THE   1,668        

CERTIFICATE HAS BEEN SURRENDERED TO THE ISSUER MAY BE REACHED BY   1,669        

A CREDITOR BY LEGAL PROCESS UPON THE ISSUER.                                    

      (B)  THE INTEREST OF A DEBTOR IN AN UNCERTIFICATED SECURITY  1,671        

                                                          38     

                                                                 
MAY BE REACHED BY A CREDITOR ONLY BY LEGAL PROCESS UPON THE        1,672        

ISSUER AT ITS CHIEF EXECUTIVE OFFICE IN THE UNITED STATES, EXCEPT  1,673        

AS OTHERWISE PROVIDED IN DIVISION (D) OF THIS SECTION.             1,674        

      (C)  THE INTEREST OF A DEBTOR IN A SECURITY ENTITLEMENT MAY  1,676        

BE REACHED BY A CREDITOR ONLY BY LEGAL PROCESS UPON THE            1,677        

SECURITIES INTERMEDIARY WITH WHOM THE DEBTOR'S SECURITIES ACCOUNT  1,678        

IS MAINTAINED, EXCEPT AS OTHERWISE PROVIDED IN DIVISION (D) OF     1,679        

THIS SECTION.                                                                   

      (D)  THE INTEREST OF A DEBTOR IN A CERTIFICATED SECURITY     1,681        

FOR WHICH THE CERTIFICATE IS IN THE POSSESSION OF A SECURED        1,682        

PARTY, OR IN AN UNCERTIFICATED SECURITY REGISTERED IN THE NAME OF  1,683        

A SECURED PARTY, OR A SECURITY ENTITLEMENT MAINTAINED IN THE NAME  1,684        

OF A SECURED PARTY, MAY BE REACHED BY A CREDITOR BY LEGAL PROCESS  1,685        

UPON THE SECURED PARTY.                                                         

      (E)  A CREDITOR WHOSE DEBTOR IS THE OWNER OF A CERTIFICATED  1,687        

SECURITY, UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT IS      1,688        

ENTITLED TO AID FROM A COURT OF COMPETENT JURISDICTION, BY         1,689        

INJUNCTION OR OTHERWISE, IN REACHING THE CERTIFICATED SECURITY,    1,690        

UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT OR IN SATISFYING  1,691        

THE CLAIM BY MEANS ALLOWED AT LAW OR IN EQUITY IN REGARD TO        1,692        

PROPERTY THAT CANNOT READILY BE REACHED BY OTHER LEGAL PROCESS.                 

      Sec. 1308.33.  (A)  A SECURITIES INTERMEDIARY THAT HAS       1,694        

TRANSFERRED A FINANCIAL ASSET PURSUANT TO AN EFFECTIVE             1,695        

ENTITLEMENT ORDER, OR A BROKER OR OTHER AGENT OR BAILEE THAT HAS   1,696        

DEALT WITH A FINANCIAL ASSET AT THE DIRECTION OF ITS CUSTOMER OR   1,697        

PRINCIPAL, IS NOT LIABLE TO A PERSON HAVING AN ADVERSE CLAIM TO    1,698        

THE FINANCIAL ASSET, UNLESS THE SECURITIES INTERMEDIARY, OR                     

BROKER OR OTHER AGENT OR BAILEE:                                   1,699        

      (1)  TOOK THE ACTION AFTER IT HAD BEEN SERVED WITH AN        1,701        

INJUNCTION, RESTRAINING ORDER, OR OTHER LEGAL PROCESS ENJOINING    1,702        

IT FROM DOING SO, ISSUED BY A COURT OF COMPETENT JURISDICTION,     1,703        

AND HAD A REASONABLE OPPORTUNITY TO ACT ON THE INJUNCTION,         1,704        

RESTRAINING ORDER, OR OTHER LEGAL PROCESS; OR                                   

      (2)  ACTED IN COLLUSION WITH THE WRONGDOER IN VIOLATING THE  1,706        

                                                          39     

                                                                 
RIGHTS OF THE ADVERSE CLAIMANT; OR                                 1,707        

      (3)  IN THE CASE OF A SECURITY CERTIFICATE THAT HAS BEEN     1,709        

STOLEN, ACTED WITH NOTICE OF THE ADVERSE CLAIM.                    1,710        

      (B)  A SECURITIES INTERMEDIARY THAT RECEIVES A FINANCIAL     1,712        

ASSET AND ESTABLISHES A SECURITY ENTITLEMENT TO THE FINANCIAL      1,713        

ASSET IN FAVOR OF AN ENTITLEMENT HOLDER IS A PURCHASER FOR VALUE   1,714        

OF THE FINANCIAL ASSET.  A SECURITIES INTERMEDIARY THAT ACQUIRES   1,715        

A SECURITY ENTITLEMENT TO A FINANCIAL ASSET FROM ANOTHER           1,716        

SECURITIES INTERMEDIARY ACQUIRES THE SECURITY ENTITLEMENT FOR      1,717        

VALUE IF THE SECURITIES INTERMEDIARY ACQUIRING THE SECURITY                     

ENTITLEMENT ESTABLISHES A SECURITY ENTITLEMENT TO THE FINANCIAL    1,718        

ASSET IN FAVOR OF AN ENTITLEMENT HOLDER.                           1,719        

      Sec. 1308.37.  (A)  If a certificated security in            1,728        

registered form is presented to the issuer with a request to       1,729        

register transfer or an instruction is presented to the issuer     1,730        

with a request to register transfer, pledge, or release OF AN      1,731        

UNCERTIFICATED SECURITY, the issuer shall register the transfer,   1,732        

pledge, or release as requested if:                                1,733        

      (1)  UNDER THE TERMS OF THE SECURITY THE PERSON SEEKING      1,735        

REGISTRATION OF TRANSFER IS ELIGIBLE TO HAVE THE SECURITY          1,736        

REGISTERED IN ITS NAME;                                                         

      (2)  The security is indorsed INDORSEMENT or the             1,738        

instruction was originated IS MADE by the appropriate person or    1,739        

persons, as provided in section 1308.23 of the Revised Code BY AN  1,741        

AGENT WHO HAS ACTUAL AUTHORITY TO ACT ON BEHALF OF THE             1,742        

APPROPRIATE PERSON;                                                             

      (2)(3)  Reasonable assurance is given that those             1,744        

indorsements THE INDORSEMENT or instructions are INSTRUCTION IS    1,746        

genuine and effective AUTHORIZED, as provided in section 1308.38   1,748        

of the Revised Code;                                                            

      (3)  The issuer has no duty as to adverse claims or has      1,750        

discharged the duty as provided in section 1308.39 of the Revised  1,751        

Code;                                                              1,752        

      (4)  Any applicable law relating to the collection of taxes  1,754        

                                                          40     

                                                                 
has been complied with;                                            1,755        

      (5)  THE TRANSFER DOES NOT VIOLATE ANY RESTRICTION ON        1,757        

TRANSFER IMPOSED BY THE ISSUER IN ACCORDANCE WITH SECTION 1308.11  1,758        

OF THE REVISED CODE;                                                            

      (6)  A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER HAS NOT  1,760        

BECOME EFFECTIVE UNDER SECTION 1308.39 OF THE REVISED CODE, OR     1,762        

THE ISSUER HAS COMPLIED WITH DIVISION (B) OF THAT SECTION BUT NO   1,763        

LEGAL PROCESS OR INDEMNITY BOND IS OBTAINED AS PROVIDED IN         1,765        

DIVISION (D) OF THAT SECTION; and                                               

      (5)(7)  The transfer, pledge, or release is in fact          1,767        

rightful or is to a bona fide PROTECTED purchaser;.                1,769        

      (B)  If an issuer is under a duty to register a transfer,    1,771        

pledge, or release of a security, the issuer is also liable to     1,772        

the person presenting a certificated security or an instruction    1,773        

for registration or his THE PERSON'S principal for loss resulting  1,775        

from any unreasonable delay in registration or from failure or     1,776        

refusal to register the transfer, pledge, or release.                           

      Sec. 1308.38.  (A)  The AN issuer may require the following  1,785        

assurance that each necessary indorsement of a certificated        1,786        

security or each instruction, as provided in section 1308.23 of    1,787        

the Revised Code, is genuine and effective AUTHORIZED:             1,788        

      (1)  In all cases, a guarantee GUARANTY of the signature,    1,790        

as provided in division (A) or (B) of section 1308.27 of the       1,791        

Revised Code, of the person indorsing a certificated security      1,792        

MAKING AN INDORSEMENT or originating an instruction including, in  1,793        

the case of an instruction, a warranty of the taxpayer             1,794        

identification number or, in the absence thereof, other            1,795        

reasonable assurance of identity; and                                           

      (2)  If the indorsement is made or the instruction is        1,797        

originated by an agent, appropriate assurance of ACTUAL authority  1,798        

to sign;                                                           1,799        

      (3)  If the indorsement is made or the instruction is        1,801        

originated by a fiduciary PURSUANT TO DIVISION (A)(4) OR (5) OF    1,802        

SECTION 1308.23 OF THE REVISED CODE, appropriate evidence of       1,803        

                                                          41     

                                                                 
appointment, or incumbency;                                        1,804        

      (4)  If there is more than one fiduciary, reasonable         1,806        

assurance that all who are required to sign have done so; and      1,807        

      (5)  If the indorsement is made or the instruction is        1,809        

originated by a person not covered by any of the foregoing         1,810        

ANOTHER PROVISION OF DIVISION (A) OF THIS SECTION, assurance       1,811        

appropriate to the case corresponding as nearly as may be to the   1,813        

foregoing SUCH PROVISIONS.                                                      

      (B)  A AN ISSUER MAY ELECT TO REQUIRE REASONABLE ASSURANCE   1,815        

BEYOND THAT SPECIFIED IN THIS SECTION.                             1,816        

      (C)  IN THIS SECTION:                                        1,818        

      (1)  "guarantee GUARANTY of the signature" in division (A)   1,821        

of this section means a guarantee GUARANTY signed by or on behalf  1,822        

of a person reasonably believed by the issuer to be responsible.   1,823        

The issuer may adopt standards with respect to responsibility if   1,824        

they are not manifestly unreasonable.                              1,825        

      (C)(2)  "Appropriate evidence of appointment or incumbency"  1,827        

in division (A) of this section means:                             1,828        

      (1)(a)  In the case of a fiduciary appointed or qualified    1,830        

by a court, a certificate issued by or under the direction or      1,831        

supervision of that court or an officer thereof and dated within   1,832        

sixty days before the date of presentation for transfer, pledge,   1,833        

or release; or                                                     1,834        

      (2)(b)  In any other case, a copy of a document showing the  1,836        

appointment or a certificate issued by or on behalf of a person    1,837        

reasonably believed by the issuer to be responsible or, in the     1,838        

absence of that document or certificate, other evidence            1,839        

reasonably deemed by the issuer to be REASONABLY CONSIDERED        1,841        

appropriate.  The issuer may adopt standards with respect to the   1,842        

evidence if they are not manifestly unreasonable.  The issuer is   1,843        

not charged with notice of the contents of any document obtained   1,844        

pursuant to division (C)(2) of this section except to the extent   1,845        

that the contents relate directly to the appointment or            1,846        

incumbency.                                                                     

                                                          42     

                                                                 
      (D)  The issuer may elect to require reasonable assurance    1,848        

beyond that specified in this section, but if it does so and, for  1,849        

a purpose other than that specified in division (C)(2) of this     1,850        

section, both requires and obtains a copy of a will, trust,        1,851        

indenture, articles of co-partnership, by-laws, or other           1,852        

controlling instrument, it is charged with notice of all matters   1,853        

contained therein affecting the transfer, pledge, or release.      1,854        

      Sec. 1308.39.  (A)  A PERSON WHO IS AN APPROPRIATE PERSON    1,856        

TO MAKE AN INDORSEMENT OR ORIGINATE AN INSTRUCTION MAY DEMAND      1,857        

THAT THE ISSUER NOT REGISTER TRANSFER OF A SECURITY BY             1,858        

COMMUNICATING TO THE ISSUER A NOTIFICATION THAT IDENTIFIES THE     1,859        

REGISTERED OWNER AND THE ISSUE OF WHICH THE SECURITY IS A PART     1,860        

AND PROVIDES AN ADDRESS FOR COMMUNICATIONS DIRECTED TO THE PERSON               

MAKING THE DEMAND.  THE DEMAND IS EFFECTIVE ONLY IF IT IS          1,861        

RECEIVED BY THE ISSUER AT A TIME AND IN A MANNER AFFORDING THE     1,862        

ISSUER REASONABLE OPPORTUNITY TO ACT ON IT.                                     

      (B)  IF A CERTIFICATED SECURITY IN REGISTERED FORM IS        1,864        

PRESENTED TO AN ISSUER WITH A REQUEST TO REGISTER TRANSFER OR AN   1,865        

INSTRUCTION IS PRESENTED TO AN ISSUER WITH A REQUEST TO REGISTER   1,866        

TRANSFER OF AN UNCERTIFICATED SECURITY AFTER A DEMAND THAT THE     1,867        

ISSUER NOT REGISTER TRANSFER HAS BECOME EFFECTIVE, THE ISSUER      1,868        

SHALL PROMPTLY COMMUNICATE TO THE PERSON WHO INITIATED THE DEMAND               

AT THE ADDRESS PROVIDED IN THE DEMAND AND THE PERSON WHO           1,869        

PRESENTED THE SECURITY FOR REGISTRATION OF TRANSFER OR INITIATED   1,870        

THE INSTRUCTION REQUESTING REGISTRATION OF TRANSFER A              1,871        

NOTIFICATION STATING THAT:                                                      

      (1)  THE CERTIFICATED SECURITY HAS BEEN PRESENTED FOR        1,873        

REGISTRATION OF TRANSFER OR THE INSTRUCTION FOR REGISTRATION OF    1,874        

TRANSFER OF THE UNCERTIFICATED SECURITY HAS BEEN RECEIVED;         1,875        

      (2)  A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER HAD      1,877        

PREVIOUSLY BEEN RECEIVED; AND                                      1,878        

      (3)  THE ISSUER WILL WITHHOLD REGISTRATION OF TRANSFER FOR   1,880        

A PERIOD OF TIME STATED IN THE NOTIFICATION IN ORDER TO PROVIDE    1,881        

THE PERSON WHO INITIATED THE DEMAND AN OPPORTUNITY TO OBTAIN       1,882        

                                                          43     

                                                                 
LEGAL PROCESS OR AN INDEMNITY BOND.                                             

      (C)  THE PERIOD DESCRIBED IN DIVISION (B)(3) OF THIS         1,884        

SECTION MAY NOT EXCEED THIRTY DAYS AFTER THE DATE OF               1,885        

COMMUNICATION OF THE NOTIFICATION.  A SHORTER PERIOD MAY BE        1,886        

SPECIFIED BY THE ISSUER IF IT IS NOT MANIFESTLY UNREASONABLE.      1,887        

      (D)  AN ISSUER IS NOT LIABLE TO A PERSON WHO INITIATED A     1,889        

DEMAND THAT THE ISSUER NOT REGISTER TRANSFER FOR ANY LOSS THE      1,890        

PERSON SUFFERS AS A RESULT OF REGISTRATION OF A TRANSFER PURSUANT  1,891        

TO AN EFFECTIVE INDORSEMENT OR INSTRUCTION IF THE PERSON WHO       1,892        

INITIATED THE DEMAND DOES NOT, WITHIN THE TIME STATED IN THE       1,893        

ISSUER'S COMMUNICATION, EITHER:                                                 

      (1)  OBTAIN AN APPROPRIATE RESTRAINING ORDER, INJUNCTION,    1,895        

OR OTHER PROCESS FROM A COURT OF COMPETENT JURISDICTION ENJOINING  1,896        

THE ISSUER FROM REGISTERING THE TRANSFER; OR                       1,897        

      (2)  FILE WITH THE ISSUER AN INDEMNITY BOND, SUFFICIENT IN   1,899        

THE ISSUER'S JUDGMENT TO PROTECT THE ISSUER AND ANY TRANSFER       1,900        

AGENT, REGISTRAR, OR OTHER AGENT OF THE ISSUER INVOLVED FROM ANY   1,901        

LOSS IT OR THEY MAY SUFFER BY REFUSING TO REGISTER THE TRANSFER.   1,902        

      (E)  THIS SECTION DOES NOT RELIEVE AN ISSUER FROM LIABILITY  1,904        

FOR REGISTERING TRANSFER PURSUANT TO AN INDORSEMENT OR             1,905        

INSTRUCTION THAT WAS NOT EFFECTIVE.                                1,906        

      Sec. 1308.40.  (A)  EXCEPT AS OTHERWISE PROVIDED IN SECTION  1,908        

1308.41 OF THE REVISED CODE, AN ISSUER IS LIABLE FOR WRONGFUL      1,909        

REGISTRATION OF TRANSFER IF THE ISSUER HAS REGISTERED A TRANSFER   1,910        

OF A SECURITY TO A PERSON NOT ENTITLED TO IT, AND THE TRANSFER     1,911        

WAS REGISTERED:                                                                 

      (1)  PURSUANT TO AN INEFFECTIVE INDORSEMENT OR INSTRUCTION;  1,913        

      (2)  AFTER A DEMAND THAT THE ISSUER NOT REGISTER TRANSFER    1,915        

BECAME EFFECTIVE UNDER DIVISION (A) OF SECTION 1308.39 OF THE      1,916        

REVISED CODE AND THE ISSUER DID NOT COMPLY WITH DIVISION (B) OF    1,917        

THAT SECTION;                                                                   

      (3)  AFTER THE ISSUER HAD BEEN SERVED WITH AN INJUNCTION,    1,919        

RESTRAINING ORDER, OR OTHER LEGAL PROCESS ENJOINING IT FROM        1,920        

REGISTERING THE TRANSFER, ISSUED BY A COURT OF COMPETENT           1,921        

                                                          44     

                                                                 
JURISDICTION, AND THE ISSUER HAD A REASONABLE OPPORTUNITY TO ACT   1,922        

ON THE INJUNCTION, RESTRAINING ORDER, OR OTHER LEGAL PROCESS; OR   1,923        

      (4)  BY AN ISSUER ACTING IN COLLUSION WITH THE WRONGDOER.    1,925        

      (B)  AN ISSUER THAT IS LIABLE FOR WRONGFUL REGISTRATION OF   1,927        

TRANSFER UNDER DIVISION (A) OF THIS SECTION ON DEMAND SHALL        1,928        

PROVIDE THE PERSON ENTITLED TO THE SECURITY WITH A LIKE            1,929        

CERTIFICATED OR UNCERTIFICATED SECURITY, AND ANY PAYMENTS OR       1,930        

DISTRIBUTIONS THAT THE PERSON DID NOT RECEIVE AS A RESULT OF THE   1,931        

WRONGFUL REGISTRATION.  IF AN OVERISSUE WOULD RESULT, THE                       

ISSUER'S LIABILITY TO PROVIDE THE PERSON WITH A LIKE SECURITY IS   1,932        

GOVERNED BY SECTION 1308.03 OF THE REVISED CODE.                   1,933        

      (C)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (A) OF THIS    1,935        

SECTION OR IN A LAW RELATING TO THE COLLECTION OF TAXES, AN        1,936        

ISSUER IS NOT LIABLE TO AN OWNER OR OTHER PERSON SUFFERING LOSS    1,937        

AS A RESULT OF THE REGISTRATION OF A TRANSFER OF A SECURITY IF     1,938        

REGISTRATION WAS MADE PURSUANT TO AN EFFECTIVE INDORSEMENT OR      1,939        

INSTRUCTION.                                                                    

      Sec. 1308.41.  (A)  If a certificated security CERTIFICATE   1,947        

has been lost, apparently destroyed, or wrongfully taken and the   1,949        

owner fails to notify the issuer of that fact within a reasonable  1,950        

time after he THE OWNER has notice of it and the issuer registers  1,951        

a transfer of the security before receiving notification, the      1,952        

owner is precluded from asserting MAY NOT ASSERT against the       1,953        

issuer any A claim for registering the transfer under section      1,955        

1308.40 of the Revised Code or any claim to a new security under   1,956        

this section.                                                                   

      (B)  If the owner of a certificated security, WHETHER IN     1,958        

REGISTERED OR BEARER FORM, claims that the security has been       1,960        

lost, destroyed, or wrongfully taken, the issuer shall issue a     1,961        

new certificated security or, at the option of the issuer, an      1,962        

equivalent uncertificated security in place of the original        1,963        

security CERTIFICATE if the owner:                                              

      (1)  So requests before the issuer has notice that the       1,965        

security has been acquired by a bona fide PROTECTED purchaser;     1,966        

                                                          45     

                                                                 
      (2)  Files with the issuer any A SUFFICIENT indemnity bond,  1,968        

the issuer reasonably requires; and                                1,970        

      (3)  Satisfies any other reasonable requirements imposed by  1,972        

the issuer.                                                        1,973        

      (C)  If, after the issue of a new certificated or            1,975        

uncertificated security CERTIFICATE, a bona fide PROTECTED         1,977        

purchaser of the original security presents it for registration    1,978        

of transfer, the issuer shall register the transfer unless         1,979        

registration AN OVERISSUE would result in overissue, in which      1,981        

event.  IN THAT CASE, the issuer's liability is governed by        1,982        

section 1308.03 of the Revised Code.  In addition to any rights    1,983        

on the indemnity bond, the issuer may recover the new              1,984        

certificated security CERTIFICATE from the person to whom it was   1,985        

issued or any person taking under him THAT PERSON, except a bona   1,987        

fide PROTECTED purchaser or may cancel the uncertificated          1,988        

security unless a bona fide purchaser or any person taking under   1,990        

a bona fide purchaser is then the registered owner or registered   1,991        

pledgee thereof.                                                                

      Sec. 1308.42.  (A)  If a A person acts ACTING as             2,000        

authenticating trustee, transfer agent, registrar, or other agent  2,002        

for an issuer in the registration of transfers A TRANSFER of its   2,003        

certificated securities or in the registration of transfers,       2,005        

pledges, and releases of its uncertificated securities, in the     2,006        

issue of new SECURITY CERTIFICATES OR UNCERTIFICATED securities,   2,007        

or in the cancellation of surrendered securities:                  2,008        

      (1)  He is under a duty to the issuer to exercise good       2,011        

faith and due diligence in performing his functions; and           2,012        

      (2)  With regard to the particular functions he performs,    2,014        

he SECURITY CERTIFICATES, has the same obligation to the holder    2,016        

or owner of a certificated OR UNCERTIFICATED security or to the    2,017        

owner or pledgee of an uncertificated security and has the same    2,018        

rights and privileges WITH REGARD TO THE PARTICULAR FUNCTIONS      2,019        

PERFORMED as the issuer has in regard to those functions.          2,020        

      (B)  Notice to an authenticating trustee, transfer agent,    2,022        

                                                          46     

                                                                 
registrar or other agent is notice to the issuer with respect to   2,023        

the functions performed by the agent.                              2,024        

      Sec. 1308.51.  (A)  "SECURITIES ACCOUNT" MEANS AN ACCOUNT    2,026        

TO WHICH A FINANCIAL ASSET IS OR MAY BE CREDITED IN ACCORDANCE     2,027        

WITH AN AGREEMENT UNDER WHICH THE PERSON MAINTAINING THE ACCOUNT   2,028        

UNDERTAKES TO TREAT THE PERSON FOR WHOM THE ACCOUNT IS MAINTAINED  2,029        

AS ENTITLED TO EXERCISE THE RIGHTS THAT COMPRISE THE FINANCIAL     2,030        

ASSET.                                                                          

      (B)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (D) AND (E)   2,033        

OF THIS SECTION, A PERSON ACQUIRES A SECURITY ENTITLEMENT IF A                  

SECURITIES INTERMEDIARY:                                           2,034        

      (1)  INDICATES BY BOOK ENTRY THAT A FINANCIAL ASSET HAS      2,036        

BEEN CREDITED TO THE PERSON'S SECURITIES ACCOUNT;                  2,037        

      (2)  RECEIVES A FINANCIAL ASSET FROM THE PERSON OR ACQUIRES  2,039        

A FINANCIAL ASSET FOR THE PERSON AND, IN EITHER CASE, ACCEPTS IT   2,040        

FOR CREDIT TO THE PERSON'S SECURITIES ACCOUNT; OR                  2,041        

      (3)  BECOMES OBLIGATED UNDER OTHER LAW, REGULATION, OR RULE  2,043        

TO CREDIT A FINANCIAL ASSET TO THE PERSON'S SECURITIES ACCOUNT.    2,044        

      (C)  IF A CONDITION OF DIVISION (B) OF THIS SECTION HAS      2,046        

BEEN MET, A PERSON HAS A SECURITY ENTITLEMENT EVEN THOUGH THE      2,047        

SECURITIES INTERMEDIARY DOES NOT ITSELF HOLD THE FINANCIAL ASSET.  2,048        

      (D)  IF A SECURITIES INTERMEDIARY HOLDS A FINANCIAL ASSET    2,050        

FOR ANOTHER PERSON, AND THE FINANCIAL ASSET IS REGISTERED IN THE   2,051        

NAME OF, PAYABLE TO THE ORDER OF, OR SPECIALLY INDORSED TO THE     2,052        

OTHER PERSON, AND HAS NOT BEEN INDORSED TO THE SECURITIES          2,053        

INTERMEDIARY OR IN BLANK, THE OTHER PERSON IS TREATED AS HOLDING   2,054        

THE FINANCIAL ASSET DIRECTLY RATHER THAN AS HAVING A SECURITY      2,055        

ENTITLEMENT WITH RESPECT TO THE FINANCIAL ASSET.                                

      (E)  ISSUANCE OF A SECURITY IS NOT ESTABLISHMENT OF A        2,057        

SECURITY ENTITLEMENT.                                              2,058        

      Sec. 1308.52.  AN ACTION BASED ON AN ADVERSE CLAIM TO A      2,060        

FINANCIAL ASSET, WHETHER FRAMED IN CONVERSION, REPLEVIN,           2,061        

CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY, MAY NOT BE    2,062        

ASSERTED AGAINST A PERSON WHO ACQUIRES A SECURITY ENTITLEMENT      2,063        

                                                          47     

                                                                 
UNDER SECTION 1308.51 OF THE REVISED CODE FOR VALUE AND WITHOUT                 

NOTICE OF THE ADVERSE CLAIM.                                       2,064        

      Sec. 1308.53.  (A)  TO THE EXTENT NECESSARY FOR A            2,066        

SECURITIES INTERMEDIARY TO SATISFY ALL SECURITY ENTITLEMENTS WITH  2,067        

RESPECT TO A PARTICULAR FINANCIAL ASSET, ALL INTERESTS IN THAT     2,068        

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY ARE HELD BY    2,069        

THE SECURITIES INTERMEDIARY FOR THE ENTITLEMENT HOLDERS, ARE NOT   2,070        

PROPERTY OF THE SECURITIES INTERMEDIARY, AND ARE NOT SUBJECT TO    2,071        

CLAIMS OF CREDITORS OF THE SECURITIES INTERMEDIARY, EXCEPT AS      2,072        

OTHERWISE PROVIDED IN SECTION 1308.61 OF THE REVISED CODE.                      

      (B)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,074        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,075        

SECTION IS A PRO RATA PROPERTY INTEREST IN ALL INTERESTS IN THAT   2,076        

FINANCIAL ASSET HELD BY THE SECURITIES INTERMEDIARY, WITHOUT       2,077        

REGARD TO THE TIME THE ENTITLEMENT HOLDER ACQUIRED THE SECURITY    2,078        

ENTITLEMENT OR THE TIME THE SECURITIES INTERMEDIARY ACQUIRED THE   2,079        

INTEREST IN THAT FINANCIAL ASSET.                                               

      (C)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,081        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,082        

SECTION MAY BE ENFORCED AGAINST THE SECURITIES INTERMEDIARY ONLY   2,083        

BY EXERCISE OF THE ENTITLEMENT HOLDER'S RIGHTS UNDER SECTIONS      2,084        

1308.55 TO 1308.58 OF THE REVISED CODE.                                         

      (D)  AN ENTITLEMENT HOLDER'S PROPERTY INTEREST WITH RESPECT  2,086        

TO A PARTICULAR FINANCIAL ASSET UNDER DIVISION (A) OF THIS         2,087        

SECTION MAY BE ENFORCED AGAINST A PURCHASER OF THE FINANCIAL       2,088        

ASSET OR INTEREST THEREIN ONLY IF:                                 2,089        

      (1)  INSOLVENCY PROCEEDINGS HAVE BEEN INITIATED BY OR        2,091        

AGAINST THE SECURITIES INTERMEDIARY;                               2,092        

      (2)  THE SECURITIES INTERMEDIARY DOES NOT HAVE SUFFICIENT    2,094        

INTERESTS IN THE FINANCIAL ASSET TO SATISFY THE SECURITY           2,095        

ENTITLEMENTS OF ALL OF ITS ENTITLEMENT HOLDERS TO THAT FINANCIAL   2,096        

ASSET;                                                                          

      (3)  THE SECURITIES INTERMEDIARY VIOLATED ITS OBLIGATIONS    2,098        

UNDER SECTION 1308.54 OF THE REVISED CODE BY TRANSFERRING THE      2,099        

                                                          48     

                                                                 
FINANCIAL ASSET OR INTEREST THEREIN TO THE PURCHASER; AND          2,100        

      (4)  THE PURCHASER IS NOT PROTECTED UNDER DIVISION (E) OF    2,102        

THIS SECTION.  THE TRUSTEE OR OTHER LIQUIDATOR, ACTING ON BEHALF   2,103        

OF ALL ENTITLEMENT HOLDERS HAVING SECURITY ENTITLEMENTS WITH       2,104        

RESPECT TO A PARTICULAR FINANCIAL ASSET, MAY RECOVER THE           2,105        

FINANCIAL ASSET, OR INTEREST THEREIN, FROM THE PURCHASER.  IF THE  2,106        

TRUSTEE OR OTHER LIQUIDATOR ELECTS NOT TO PURSUE THAT RIGHT, AN    2,107        

ENTITLEMENT HOLDER WHOSE SECURITY ENTITLEMENT REMAINS UNSATISFIED               

HAS THE RIGHT TO RECOVER ITS INTEREST IN THE FINANCIAL ASSET FROM  2,108        

THE PURCHASER.                                                     2,109        

      (E)  AN ACTION BASED ON THE ENTITLEMENT HOLDER'S PROPERTY    2,111        

INTEREST WITH RESPECT TO A PARTICULAR FINANCIAL ASSET UNDER        2,112        

DIVISION (A) OF THIS SECTION, WHETHER FRAMED IN CONVERSION,        2,113        

REPLEVIN, CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR OTHER THEORY,     2,114        

MAY NOT BE ASSERTED AGAINST ANY PURCHASER OF A FINANCIAL ASSET OR  2,115        

INTEREST THEREIN WHO GIVES VALUE, OBTAINS CONTROL, AND DOES NOT    2,116        

ACT IN COLLUSION WITH THE SECURITIES INTERMEDIARY IN VIOLATING                  

THE SECURITIES INTERMEDIARY'S OBLIGATIONS UNDER SECTION 1308.54    2,118        

OF THE REVISED CODE.                                                            

      Sec. 1308.54.  (A)  A SECURITIES INTERMEDIARY SHALL          2,120        

PROMPTLY OBTAIN AND THEREAFTER MAINTAIN A FINANCIAL ASSET IN A     2,121        

QUANTITY CORRESPONDING TO THE AGGREGATE OF ALL SECURITY            2,122        

ENTITLEMENTS IT HAS ESTABLISHED IN FAVOR OF ITS ENTITLEMENT        2,123        

HOLDERS WITH RESPECT TO THAT FINANCIAL ASSET.  THE SECURITIES                   

INTERMEDIARY MAY MAINTAIN THOSE FINANCIAL ASSETS DIRECTLY OR       2,124        

THROUGH ONE OR MORE OTHER SECURITIES INTERMEDIARIES.               2,125        

      (B)  EXCEPT TO THE EXTENT OTHERWISE AGREED BY ITS            2,127        

ENTITLEMENT HOLDER, A SECURITIES INTERMEDIARY MAY NOT GRANT ANY    2,128        

SECURITY INTERESTS IN A FINANCIAL ASSET IT IS OBLIGATED TO         2,129        

MAINTAIN PURSUANT TO DIVISION (A) OF THIS SECTION.                 2,130        

      (C)  A SECURITIES INTERMEDIARY SATISFIES THE DUTY IN         2,132        

DIVISION (A) OF THIS SECTION IF:                                   2,133        

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,135        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,136        

                                                          49     

                                                                 
INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,138        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,139        

COMMERCIAL STANDARDS TO OBTAIN AND MAINTAIN THE FINANCIAL ASSET.   2,140        

      (D)  THIS SECTION DOES NOT APPLY TO A CLEARING CORPORATION   2,142        

THAT IS ITSELF THE OBLIGOR OF AN OPTION OR SIMILAR OBLIGATION TO   2,143        

WHICH ITS ENTITLEMENT HOLDERS HAVE SECURITY ENTITLEMENTS.          2,144        

      Sec. 1308.55.  (A)  A SECURITIES INTERMEDIARY SHALL TAKE     2,146        

ACTION TO OBTAIN A PAYMENT OR DISTRIBUTION MADE BY THE ISSUER OF   2,147        

A FINANCIAL ASSET.  A SECURITIES INTERMEDIARY SATISFIES THE DUTY   2,148        

IF:                                                                             

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,150        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,151        

INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,153        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,154        

COMMERCIAL STANDARDS TO ATTEMPT TO OBTAIN THE PAYMENT OR           2,155        

DISTRIBUTION.                                                                   

      (B)  A SECURITIES INTERMEDIARY IS OBLIGATED TO ITS           2,157        

ENTITLEMENT HOLDER FOR A PAYMENT OR DISTRIBUTION MADE BY THE       2,158        

ISSUER OF A FINANCIAL ASSET IF THE PAYMENT OR DISTRIBUTION IS      2,159        

RECEIVED BY THE SECURITIES INTERMEDIARY.                                        

      Sec. 1308.56.  A SECURITIES INTERMEDIARY SHALL EXERCISE      2,161        

RIGHTS WITH RESPECT TO A FINANCIAL ASSET IF DIRECTED TO DO SO BY   2,162        

AN ENTITLEMENT HOLDER.  A SECURITIES INTERMEDIARY SATISFIES THE    2,163        

DUTY IF:                                                                        

      (A)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,165        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,166        

INTERMEDIARY; OR                                                                

      (B)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,168        

INTERMEDIARY EITHER PLACES THE ENTITLEMENT HOLDER IN A POSITION    2,169        

TO EXERCISE THE RIGHTS DIRECTLY OR EXERCISES DUE CARE IN           2,170        

ACCORDANCE WITH REASONABLE COMMERCIAL STANDARDS TO FOLLOW THE      2,171        

DIRECTION OF THE ENTITLEMENT HOLDER.                                            

                                                          50     

                                                                 
      Sec. 1308.57.  (A)  A SECURITIES INTERMEDIARY SHALL COMPLY   2,173        

WITH AN ENTITLEMENT ORDER IF THE ENTITLEMENT ORDER IS ORIGINATED   2,174        

BY THE APPROPRIATE PERSON, THE SECURITIES INTERMEDIARY HAS HAD     2,175        

REASONABLE OPPORTUNITY TO ASSURE ITSELF THAT THE ENTITLEMENT       2,176        

ORDER IS GENUINE AND AUTHORIZED, AND THE SECURITIES INTERMEDIARY   2,177        

HAS HAD REASONABLE OPPORTUNITY TO COMPLY WITH THE ENTITLEMENT      2,178        

ORDER.  A SECURITIES INTERMEDIARY SATISFIES THE DUTY IF:                        

      (1)  THE SECURITIES INTERMEDIARY ACTS WITH RESPECT TO THE    2,180        

DUTY AS AGREED UPON BY THE ENTITLEMENT HOLDER AND THE SECURITIES   2,181        

INTERMEDIARY; OR                                                                

      (2)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,183        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,184        

COMMERCIAL STANDARDS TO COMPLY WITH THE ENTITLEMENT ORDER.         2,185        

      (B)  IF A SECURITIES INTERMEDIARY TRANSFERS A FINANCIAL      2,187        

ASSET PURSUANT TO AN INEFFECTIVE ENTITLEMENT ORDER, THE            2,188        

SECURITIES INTERMEDIARY SHALL REESTABLISH A SECURITY ENTITLEMENT   2,189        

IN FAVOR OF THE PERSON ENTITLED TO IT, AND PAY OR CREDIT ANY       2,190        

PAYMENTS OR DISTRIBUTIONS THAT THE PERSON DID NOT RECEIVE AS A     2,191        

RESULT OF THE WRONGFUL TRANSFER.  IF THE SECURITIES INTERMEDIARY                

DOES NOT REESTABLISH A SECURITY ENTITLEMENT, THE SECURITIES        2,192        

INTERMEDIARY IS LIABLE TO THE ENTITLEMENT HOLDER FOR DAMAGES.      2,193        

      Sec. 1308.58.  A SECURITIES INTERMEDIARY SHALL ACT AT THE    2,195        

DIRECTION OF AN ENTITLEMENT HOLDER TO CHANGE A SECURITY            2,196        

ENTITLEMENT INTO ANOTHER AVAILABLE FORM OF HOLDING FOR WHICH THE   2,197        

ENTITLEMENT HOLDER IS ELIGIBLE, OR TO CAUSE THE FINANCIAL ASSET    2,198        

TO BE TRANSFERRED TO A SECURITIES ACCOUNT OF THE ENTITLEMENT                    

HOLDER WITH ANOTHER SECURITIES INTERMEDIARY.  A SECURITIES         2,199        

INTERMEDIARY SATISFIES THE DUTY IF:                                2,200        

      (A)  THE SECURITIES INTERMEDIARY ACTS AS AGREED UPON BY THE  2,202        

ENTITLEMENT HOLDER AND THE SECURITIES INTERMEDIARY; OR             2,203        

      (B)  IN THE ABSENCE OF AGREEMENT, THE SECURITIES             2,205        

INTERMEDIARY EXERCISES DUE CARE IN ACCORDANCE WITH REASONABLE      2,206        

COMMERCIAL STANDARDS TO FOLLOW THE DIRECTION OF THE ENTITLEMENT    2,207        

HOLDER.                                                                         

                                                          51     

                                                                 
      Sec. 1308.59.  (A)  IF THE SUBSTANCE OF A DUTY IMPOSED UPON  2,209        

A SECURITIES INTERMEDIARY BY SECTIONS 1308.54 TO 1308.58 OF THE    2,210        

REVISED CODE IS THE SUBJECT OF OTHER STATUTE, REGULATION, OR       2,211        

RULE, COMPLIANCE WITH THAT STATUTE, REGULATION, OR RULE SATISFIES  2,212        

THE DUTY.                                                                       

      (B)  TO THE EXTENT THAT SPECIFIC STANDARDS FOR THE           2,214        

PERFORMANCE OF THE DUTIES OF A SECURITIES INTERMEDIARY OR THE      2,215        

EXERCISE OF THE RIGHTS OF AN ENTITLEMENT HOLDER ARE NOT SPECIFIED  2,216        

BY OTHER STATUTE, REGULATION, OR RULE OR BY AGREEMENT BETWEEN THE  2,217        

SECURITIES INTERMEDIARY AND ENTITLEMENT HOLDER, THE SECURITIES     2,218        

INTERMEDIARY SHALL PERFORM ITS DUTIES AND THE ENTITLEMENT HOLDER                

SHALL EXERCISE ITS RIGHTS IN A COMMERCIALLY REASONABLE MANNER.     2,219        

      (C)  THE OBLIGATION OF A SECURITIES INTERMEDIARY TO PERFORM  2,221        

THE DUTIES IMPOSED BY SECTIONS 1308.54 TO 1308.58 OF THE REVISED   2,222        

CODE IS SUBJECT TO:                                                             

      (1)  RIGHTS OF THE SECURITIES INTERMEDIARY ARISING OUT OF A  2,224        

SECURITY INTEREST UNDER A SECURITY AGREEMENT WITH THE ENTITLEMENT  2,225        

HOLDER OR OTHERWISE; AND                                           2,226        

      (2)  RIGHTS OF THE SECURITIES INTERMEDIARY UNDER OTHER LAW,  2,228        

REGULATION, RULE, OR AGREEMENT TO WITHHOLD PERFORMANCE OF ITS      2,229        

DUTIES AS A RESULT OF UNFULFILLED OBLIGATIONS OF THE ENTITLEMENT   2,230        

HOLDER TO THE SECURITIES INTERMEDIARY.                             2,231        

      (D)  SECTIONS 1308.54 TO 1308.58 OF THE REVISED CODE DO NOT  2,233        

REQUIRE A SECURITIES INTERMEDIARY TO TAKE ANY ACTION THAT IS       2,234        

PROHIBITED BY OTHER STATUTE, REGULATION, OR RULE.                  2,235        

      Sec. 1308.60.  (A)  AN ACTION BASED ON AN ADVERSE CLAIM TO   2,237        

A FINANCIAL ASSET OR SECURITY ENTITLEMENT, WHETHER FRAMED IN       2,238        

CONVERSION, REPLEVIN, CONSTRUCTIVE TRUST, EQUITABLE LIEN, OR       2,239        

OTHER THEORY, MAY NOT BE ASSERTED AGAINST A PERSON WHO PURCHASES   2,240        

A SECURITY ENTITLEMENT, OR AN INTEREST THEREIN, FROM AN            2,241        

ENTITLEMENT HOLDER IF THE PURCHASER GIVES VALUE, DOES NOT HAVE     2,242        

NOTICE OF THE ADVERSE CLAIM, AND OBTAINS CONTROL.                               

      (B)  IF AN ADVERSE CLAIM COULD NOT HAVE BEEN ASSERTED        2,244        

AGAINST AN ENTITLEMENT HOLDER UNDER SECTION 1308.52 OF THE         2,245        

                                                          52     

                                                                 
REVISED CODE, THE ADVERSE CLAIM CANNOT BE ASSERTED AGAINST A       2,246        

PERSON WHO PURCHASES A SECURITY ENTITLEMENT, OR AN INTEREST                     

THEREIN, FROM THE ENTITLEMENT HOLDER.                              2,247        

      (C)  IN A CASE NOT COVERED BY THE PRIORITY RULES IN CHAPTER  2,250        

1309. OF THE REVISED CODE, A PURCHASER FOR VALUE OF A SECURITY                  

ENTITLEMENT, OR AN INTEREST THEREIN, WHO OBTAINS CONTROL HAS       2,251        

PRIORITY OVER A PURCHASER OF A SECURITY ENTITLEMENT, OR AN         2,252        

INTEREST THEREIN, WHO DOES NOT OBTAIN CONTROL.  PURCHASERS WHO     2,253        

HAVE CONTROL RANK EQUALLY, EXCEPT THAT A SECURITIES INTERMEDIARY   2,254        

AS PURCHASER HAS PRIORITY OVER A CONFLICTING PURCHASER WHO HAS                  

CONTROL UNLESS OTHERWISE AGREED BY THE SECURITIES INTERMEDIARY.    2,255        

      Sec. 1308.61.  (A)  EXCEPT AS OTHERWISE PROVIDED IN          2,257        

DIVISIONS (B) AND (C) OF THIS SECTION, IF A SECURITIES             2,258        

INTERMEDIARY DOES NOT HAVE SUFFICIENT INTERESTS IN A PARTICULAR    2,259        

FINANCIAL ASSET TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT     2,260        

HOLDERS WHO HAVE SECURITY ENTITLEMENTS TO THAT FINANCIAL ASSET     2,261        

AND ITS OBLIGATION TO A CREDITOR OF THE SECURITIES INTERMEDIARY    2,262        

WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET, THE CLAIMS                 

OF ENTITLEMENT HOLDERS, OTHER THAN THE CREDITOR, HAVE PRIORITY     2,263        

OVER THE CLAIM OF THE CREDITOR.                                    2,264        

      (B)  A CLAIM OF A CREDITOR OF A SECURITIES INTERMEDIARY WHO  2,266        

HAS A SECURITY INTEREST IN A FINANCIAL ASSET HELD BY A SECURITIES  2,267        

INTERMEDIARY HAS PRIORITY OVER CLAIMS OF THE SECURITIES            2,268        

INTERMEDIARY'S ENTITLEMENT HOLDERS WHO HAVE SECURITY ENTITLEMENTS  2,269        

WITH RESPECT TO THAT FINANCIAL ASSET IF THE CREDITOR HAS CONTROL   2,270        

OVER THE FINANCIAL ASSET.                                                       

      (C)  IF A CLEARING CORPORATION DOES NOT HAVE SUFFICIENT      2,272        

FINANCIAL ASSETS TO SATISFY BOTH ITS OBLIGATIONS TO ENTITLEMENT    2,273        

HOLDERS WHO HAVE SECURITY ENTITLEMENTS WITH RESPECT TO A           2,274        

FINANCIAL ASSET AND ITS OBLIGATION TO A CREDITOR OF THE CLEARING   2,275        

CORPORATION WHO HAS A SECURITY INTEREST IN THAT FINANCIAL ASSET,   2,276        

THE CLAIM OF THE CREDITOR HAS PRIORITY OVER THE CLAIMS OF                       

ENTITLEMENT HOLDERS.                                               2,277        

      Sec. 1309.01.  (A)  As used in sections 1309.01 to 1309.50   2,286        

                                                          53     

                                                                 
of the Revised Code, unless the context otherwise requires:        2,287        

      (1)  "Account debtor" means the person who is obligated on   2,289        

an account, chattel paper, or general intangible.                  2,290        

      (2)  "Chattel paper" means a writing or writings which       2,292        

evidence both a monetary obligation and a security interest in or  2,293        

a lease of specific goods, but a charter or other contract         2,294        

involving the use or hire of a vessel is not chattel paper. When   2,295        

a transaction is evidenced both by such a security agreement or a  2,296        

lease and by an instrument or a series of instruments, the group   2,297        

of writings taken together constitutes chattel paper.              2,298        

      (3)  "Collateral" means the property subject to a security   2,300        

interest, and includes accounts and chattel paper which have been  2,301        

sold.                                                              2,302        

      (4)  "Debtor" means the person who owes payment or other     2,304        

performance of the obligations secured, whether or not he THE      2,305        

PERSON owns or has rights in the collateral, and includes the      2,306        

seller of accounts or chattel paper.  Where the debtor and the     2,307        

owner of the collateral are not the same person, the term          2,308        

"debtor" means the owner of the collateral in any provision of     2,309        

sections 1309.01 to 1309.50 of the Revised Code dealing with the   2,310        

collateral, the obligor in any provision dealing with the          2,311        

obligation and may include both where the context so requires.     2,312        

      (5)  "Deposit account" means a demand, time, savings,        2,314        

passbook or like account maintained with a bank, savings and loan  2,315        

association, credit union, or like organization, other than an     2,316        

account evidenced by a certificate of deposit.                     2,317        

      (6)  "Document" means document of title as defined in        2,319        

division (O) of section 1301.01 of the Revised Code, and a         2,320        

receipt of the kind described in division (B) of section 1307.06   2,321        

of the Revised Code.                                               2,322        

      (7)  "Encumbrance" includes real estate mortgages and other  2,324        

liens on real estate and all other rights in real estate that are  2,325        

not ownership interests.                                           2,326        

      (8)  "Goods" includes all things which are movable at the    2,328        

                                                          54     

                                                                 
time the security interest attaches or which are fixtures under    2,329        

section 1309.32 of the Revised Code, but does not include money,   2,330        

documents, instruments, INVESTMENT PROPERTY, COMMODITY CONTRACTS,  2,332        

accounts, chattel paper, general intangibles, or minerals or the   2,333        

like, including oil and gas, before extraction.  "Goods" also      2,334        

include standing timber which is to be cut and removed under a     2,335        

conveyance or contract for sale, the unborn young of animals, and  2,336        

growing crops.                                                                  

      (9)  "Instrument" means a negotiable instrument as defined   2,338        

in section 1303.03 of the Revised Code, or a certificated          2,339        

security as defined in section 1308.01 of the Revised Code, or     2,340        

any other writing which evidences a right to the payment of money  2,341        

and is not itself a security agreement or lease and is of a type   2,342        

which is in ordinary course of business transferred by delivery    2,343        

with any necessary indorsement or assignment.  "INSTRUMENT" DOES   2,344        

NOT INCLUDE INVESTMENT PROPERTY.                                   2,346        

      (10)  "Mortgage" means a consensual interest created by a    2,348        

real estate mortgage, a trust deed on real estate, or the like.    2,349        

      (11)  An advance is made "pursuant to commitment" if the     2,351        

secured party has bound himself ITSELF to make it, whether or not  2,353        

a subsequent event of default or other event not within his THE                 

SECURED PARTY'S control has relieved or may relieve him THE        2,354        

SECURED PARTY from his THE SECURED PARTY'S obligation.             2,355        

      (12)  "Security agreement" means an agreement which creates  2,357        

or provides for a security interest.                               2,358        

      (13)  "Secured party" means a lender, seller, or other       2,360        

person in whose favor there is a security interest, including a    2,361        

person to whom accounts or chattel paper have been sold.  When     2,362        

the holders of obligations issued under an indenture of trust,     2,363        

equipment trust agreement, or the like are represented by a        2,364        

trustee or other person, the representative is the secured party.  2,365        

      (14)  "Transmitting utility" means any person primarily      2,367        

engaged in the railroad, street railway, or trolley bus business,  2,368        

the electric or electronic communications business, the            2,369        

                                                          55     

                                                                 
transmission of goods by pipeline, or the transmission or the      2,370        

production and transmission of electricity, steam, gas, or water,  2,371        

or the provision of sewer service.                                 2,372        

      (15)  "Account" means any right to payment for goods sold    2,374        

or leased or for services rendered which is not evidenced by an    2,375        

instrument or chattel paper, whether or not it has been earned by  2,376        

performance.                                                       2,377        

      (16)  "General intangible INTANGIBLES" means any personal    2,379        

property, including things in action, other than goods, accounts,  2,381        

chattel paper, documents, instruments, INVESTMENT PROPERTY, and    2,382        

money.  All rights to payment earned or unearned under a charter   2,384        

or other contract involving the use or hire of a vessel and all    2,385        

rights incident to the charter or contract are accounts.           2,386        

      (B)  Other definitions applying to sections 1309.01 to       2,388        

1309.50 of the Revised Code are:                                   2,389        

      (1)  "Attach," as defined in section 1309.14 of the Revised  2,391        

Code;                                                              2,392        

      (2)  "Construction mortgage," as defined in section 1309.32  2,394        

of the Revised Code;                                               2,395        

      (3)  "Consumer goods," as defined in section 1309.07 of the  2,397        

Revised Code;                                                      2,398        

      (4)  "Equipment," as defined in section 1309.07 of the       2,400        

Revised Code;                                                      2,401        

      (5)  "Farm products," as defined in section 1309.07 of the   2,403        

Revised Code;                                                      2,404        

      (6)  "Fixture," as defined in section 1309.32 of the         2,406        

Revised Code;                                                      2,407        

      (7)  "Fixture filing," as defined in section 1309.32 of the  2,409        

Revised Code;                                                      2,410        

      (8)  "Inventory," as defined in section 1309.07 of the       2,412        

Revised Code;                                                      2,413        

      (9)  "Lien creditor," as defined in section 1309.20 of the   2,415        

Revised Code;                                                      2,416        

      (10)  "Proceeds," as defined in section 1309.25 of the       2,418        

                                                          56     

                                                                 
Revised Code;                                                      2,419        

      (11)  "Purchase money security interest," as defined in      2,421        

section 1309.05 of the Revised Code;                               2,422        

      (12)  "COMMODITY CONTRACT," "COMMODITY CUSTOMER,"            2,424        

"COMMODITY INTERMEDIARY," "CONTROL," AND "INVESTMENT PROPERTY,"    2,425        

AS DEFINED IN SECTION 1309.112 OF THE REVISED CODE;                2,426        

      (13)  "United States," as defined in section 1309.03 of the  2,428        

Revised Code.                                                      2,429        

      (C)  As used in sections 1309.01 to 1309.50 of the Revised   2,431        

Code, "check" and "note" have the meaning set forth in section     2,432        

1303.03 of the Revised Code; "contract for sale" and "sale" have   2,433        

the meaning set forth in section 1302.01 of the Revised Code; and  2,434        

"holder in due course" has the meaning set forth in section        2,435        

1303.31 of the Revised Code.                                       2,436        

      (D)  The terms and principles of construction and            2,438        

interpretation set forth in sections 1301.01 to 1301.14 of the     2,439        

Revised Code are applicable to sections 1309.01 to 1309.50 of the  2,440        

Revised Code.                                                      2,441        

      Sec. 1309.03.  (A)  Documents, instruments, and ordinary     2,450        

goods:                                                             2,451        

      (1)  This division applies to documents and instruments and  2,453        

to goods other than those covered by a certificate of title        2,454        

described in division (B) of this section, mobile goods described  2,455        

in division (C) of this section, and minerals described in         2,456        

division (E) of this section.                                      2,457        

      (2)  Except as otherwise provided in this division,          2,459        

perfection and the effect of perfection or nonperfection of a      2,460        

security interest in collateral are governed by the law of the     2,461        

jurisdiction where the collateral is when the last event occurs    2,462        

on which is based the assertion that the security interest is      2,463        

perfected or unperfected.                                          2,464        

      (3)  If the parties to a transaction creating a purchase     2,466        

money security interest in goods in one jurisdiction understand    2,467        

at the time that the security interest attaches that the goods     2,468        

                                                          57     

                                                                 
will be kept in another jurisdiction, then the law of the other    2,469        

jurisdiction governs the perfection and the effect of perfection   2,470        

or nonperfection of the security interest from the time it         2,471        

attaches until thirty days after the debtor receives possession    2,472        

of the goods and thereafter if the goods are taken to the other    2,473        

jurisdiction before the end of the thirty-day period.              2,474        

      (4)  When collateral is brought into and kept in this state  2,476        

while subject to a security interest perfected under the law of    2,477        

the jurisdiction from which the collateral was removed, the        2,478        

security interest remains perfected, but if action is required by  2,479        

sections 1309.20 to 1309.37 of the Revised Code to perfect the     2,480        

security interest:                                                 2,481        

      (a)  If the action is not taken before the expiration of     2,483        

the period of perfection in the other jurisdiction or the end of   2,484        

four months after the collateral is brought into this state,       2,485        

whichever period first expires, the security interest becomes      2,486        

unperfected at the end of that period and is thereafter deemed to  2,487        

have been unperfected as against a person who became a purchaser   2,488        

after removal;                                                     2,489        

      (b)  If the action is taken before the expiration of the     2,491        

period specified in division (A)(4)(a) of this section, the        2,492        

security interest continues perfected thereafter;                  2,493        

      (c)  For the purpose of priority over a buyer of consumer    2,495        

goods, division (B) of section 1309.26 of the Revised Code, the    2,496        

period of the effectiveness of a filing in the jurisdiction from   2,497        

which the collateral is removed is governed by the rules with      2,498        

respect to perfection in divisions (A)(4)(a) and (b) of this       2,499        

section.                                                           2,500        

      (B)  Certificate of title.                                   2,502        

      (1)  This division applies to goods covered by a             2,504        

certificate of title issued under a statute of this state or of    2,505        

another jurisdiction under the law of which indication of a        2,506        

security interest on the certificate is required as a condition    2,507        

of perfection.                                                     2,508        

                                                          58     

                                                                 
      (2)  Except as otherwise provided in this division,          2,510        

perfection and the effect of perfection or nonperfection of the    2,511        

security interest are governed by the law, including the conflict  2,512        

of laws rules, of the jurisdiction issuing the certificate until   2,513        

four months after the goods are removed from that jurisdiction     2,514        

and thereafter until the goods are registered in another           2,515        

jurisdiction, but in any event not beyond surrender of the         2,516        

certificate.  After the expiration of that period, the goods are   2,517        

not covered by the certificate of title within the meaning of      2,518        

this section.                                                      2,519        

      (3)  Except with respect to the rights of a buyer described  2,521        

in division (B)(4) of this section a security interest, perfected  2,522        

in another jurisdiction otherwise than by notation on a            2,523        

certificate of title, in goods brought into this state and         2,524        

thereafter covered by a certificate of title issued by this state  2,525        

is subject to the rules stated in division (A)(4) of this          2,526        

section.                                                           2,527        

      (4)  If goods are brought into this state while a security   2,529        

interest therein is perfected in any manner under the law of the   2,530        

jurisdiction from which the goods are removed and a certificate    2,531        

of title is issued by this state and the certificate does not      2,532        

show that the goods are subject to the security interest or that   2,533        

they may be subject to security interests not shown on the         2,534        

certificate, the security interest is subordinate to the rights    2,535        

of a buyer of the goods who is not in the business of selling      2,536        

goods of that kind to the extent that he THE BUYER gives value     2,537        

and receives delivery of the goods after issuance of the           2,538        

certificate and without knowledge of the security interest.        2,539        

      (C)  Accounts, general intangibles, and mobile goods.        2,541        

      (1)  This division applies to accounts, other than an        2,543        

account described in division (E) of this section on minerals,     2,544        

and general intangibles, other than uncertificated securities,     2,545        

and to goods which are mobile and which are of a type normally     2,546        

used in more than one jurisdiction, such as motor vehicles,        2,547        

                                                          59     

                                                                 
trailers, rolling stock, airplanes, shipping containers, road      2,548        

building and construction machinery, and commercial harvesting     2,549        

machinery and the like, if the goods are equipment or are          2,550        

inventory leased or held for lease by the debtor to others, and    2,551        

are not covered by a certificate of title described in division    2,552        

(B) of this section.                                               2,553        

      (2)  The law, including the conflict of laws rules, of the   2,555        

jurisdiction in which the debtor is located governs the            2,556        

perfection and the effect of perfection or nonperfection of the    2,557        

security interest.                                                 2,558        

      (3)  If, however, the debtor is located in a jurisdiction    2,560        

which is not a part of the United States, and which does not       2,561        

provide for perfection of the security interest by filing or       2,562        

recording in that jurisdiction, the law of the jurisdiction in     2,563        

the United States in which the debtor has its major executive      2,564        

office in the United States governs the perfection and the effect  2,565        

of perfection or nonperfection of the security interest through    2,566        

filing.  In the alternative, if the debtor is located in a         2,567        

jurisdiction which is not a part of the United States or Canada    2,568        

and the collateral is accounts or general intangibles for money    2,569        

due or to become due, the security interest may be perfected by    2,570        

notification to the account debtor.  As used in this division,     2,571        

"United States" includes its territories and possessions and the   2,572        

Commonwealth of Puerto Rico.                                       2,573        

      (4)  A debtor shall be deemed located at his THE DEBTOR'S    2,575        

place of business if he THE DEBTOR has one, at his THE DEBTOR'S    2,577        

chief executive office if he DEBTOR has more than one place of     2,578        

business; otherwise at his THE DEBTOR'S residence.  If, however,   2,579        

the debtor is a foreign air carrier under the "Federal Aviation                 

Act of 1958," as amended, it shall be deemed located at the        2,581        

designated office of the agent upon whom service of process may    2,582        

be made on behalf of the foreign air carrier.                                   

      (5)  A security interest perfected under the law of the      2,584        

jurisdiction of the location of the debtor is perfected until the  2,585        

                                                          60     

                                                                 
expiration of four months after a change of the debtor's location  2,586        

to another jurisdiction, or until perfection would have ceased by  2,587        

the law of the first jurisdiction, whichever period first          2,588        

expires.  Unless perfected in the new jurisdiction before the end  2,589        

of that period, it becomes unperfected thereafter and is deemed    2,590        

to have been unperfected as against a person who became a          2,591        

purchaser after the change.                                        2,592        

      (D)  Chattel Paper.                                          2,594        

      The rules stated for goods in division (A) of this section   2,596        

apply to a possessory security interest in chattel paper.  The     2,597        

rule stated for accounts in division (C) of this section applies   2,598        

to a nonpossessory security in chattel paper, but the security     2,599        

interest may not be perfected by notification to the account       2,600        

debtor.                                                            2,601        

      (E)  Minerals.                                               2,603        

      Perfection and the effect of perfection or nonperfection of  2,605        

a security interest which is created by a debtor who has an        2,606        

interest in minerals or the like, including oil and gas, before    2,607        

extraction and which attaches thereto as extracted, or which       2,608        

attaches to an account resulting from the sale thereof at the      2,609        

wellhead or minehead are governed by the law, including the        2,610        

conflict of laws rules, of the jurisdiction wherein the wellhead   2,611        

or minehead is located.                                            2,612        

      (F)  Uncertificated securities INVESTMENT PROPERTY.          2,614        

      The law, including the conflict of laws rules, of the        2,616        

jurisdiction of organization of the issuer governs the perfection  2,617        

and the effect of perfection or non-perfection of a security       2,619        

interest in uncertificated securities.                                          

      (1)  THIS DIVISION APPLIES TO INVESTMENT PROPERTY.           2,621        

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,623        

THIS SECTION, DURING THE TIME THAT A SECURITY CERTIFICATE IS       2,624        

LOCATED IN A JURISDICTION, PERFECTION OF A SECURITY INTEREST, THE  2,625        

EFFECT OF PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A       2,626        

SECURITY INTEREST IN THE CERTIFICATED SECURITY REPRESENTED         2,627        

                                                          61     

                                                                 
THEREBY ARE GOVERNED BY THE LOCAL LAW OF THAT JURISDICTION.        2,628        

      (3)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,630        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,631        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,632        

INTEREST IN AN UNCERTIFICATED SECURITY ARE GOVERNED BY THE LOCAL   2,633        

LAW OF THE ISSUER'S JURISDICTION AS SPECIFIED IN DIVISION (D) OF   2,634        

SECTION 1308.05 OF THE REVISED CODE.                                            

      (4)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,636        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,637        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,638        

INTEREST IN A SECURITY ENTITLEMENT OR SECURITIES ACCOUNT ARE       2,639        

GOVERNED BY THE LOCAL LAW OF THE SECURITIES INTERMEDIARY'S         2,640        

JURISDICTION AS SPECIFIED IN DIVISION (E) OF SECTION 1308.05 OF    2,641        

THE REVISED CODE.                                                               

      (5)  EXCEPT AS OTHERWISE PROVIDED IN DIVISION (F)(6) OF      2,643        

THIS SECTION, PERFECTION OF A SECURITY INTEREST, THE EFFECT OF     2,644        

PERFECTION OR NONPERFECTION, AND THE PRIORITY OF A SECURITY        2,645        

INTEREST IN A COMMODITY CONTRACT OR COMMODITY ACCOUNT ARE          2,646        

GOVERNED BY THE LOCAL LAW OF THE COMMODITY INTERMEDIARY'S          2,647        

JURISDICTION.  THE FOLLOWING RULES DETERMINE A "COMMODITY                       

INTERMEDIARY'S JURISDICTION" FOR PURPOSES OF THIS DIVISION:        2,648        

      (a)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,650        

COMMODITY CUSTOMER SPECIFIES THAT IT IS GOVERNED BY THE LAW OF A   2,651        

PARTICULAR JURISDICTION, THAT JURISDICTION IS THE COMMODITY        2,652        

INTERMEDIARY'S JURISDICTION.                                                    

      (b)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,654        

COMMODITY CUSTOMER DOES NOT SPECIFY THE GOVERNING LAW AS PROVIDED  2,655        

IN DIVISION (F)(5)(a) OF THIS SECTION, BUT EXPRESSLY SPECIFIES     2,656        

THAT THE COMMODITY ACCOUNT IS MAINTAINED AT AN OFFICE IN A         2,657        

PARTICULAR JURISDICTION, THAT JURISDICTION IS THE COMMODITY        2,658        

INTERMEDIARY'S JURISDICTION.                                                    

      (c)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,660        

COMMODITY CUSTOMER DOES NOT SPECIFY A JURISDICTION AS PROVIDED IN  2,661        

DIVISION (F)(5)(a) OR (b) OF THIS SECTION, THE COMMODITY           2,663        

                                                          62     

                                                                 
INTERMEDIARY'S JURISDICTION IS THE JURISDICTION IN WHICH IS                     

LOCATED THE OFFICE IDENTIFIED IN AN ACCOUNT STATEMENT AS THE       2,664        

OFFICE SERVING THE COMMODITY CUSTOMER'S ACCOUNT.                   2,665        

      (d)  IF AN AGREEMENT BETWEEN THE COMMODITY INTERMEDIARY AND  2,667        

COMMODITY CUSTOMER DOES NOT SPECIFY A JURISDICTION AS PROVIDED IN  2,668        

DIVISION (F)(5)(a) OR (b) OF THIS SECTION AND AN ACCOUNT           2,670        

STATEMENT DOES NOT IDENTIFY AN OFFICE SERVING THE COMMODITY                     

CUSTOMER'S ACCOUNT AS PROVIDED IN DIVISION (F)(5)(c) OF THIS       2,671        

SECTION, THE COMMODITY INTERMEDIARY'S JURISDICTION IS THE          2,672        

JURISDICTION IN WHICH IS LOCATED THE CHIEF EXECUTIVE OFFICE OF     2,673        

THE COMMODITY INTERMEDIARY.                                                     

      (6)  PERFECTION OF A SECURITY INTEREST BY FILING, AUTOMATIC  2,675        

PERFECTION OF A SECURITY INTEREST IN INVESTMENT PROPERTY GRANTED   2,676        

BY A BROKER OR SECURITIES INTERMEDIARY, AND AUTOMATIC PERFECTION   2,677        

OF A SECURITY INTEREST IN A COMMODITY CONTRACT OR COMMODITY        2,678        

ACCOUNT GRANTED BY A COMMODITY INTERMEDIARY ARE GOVERNED BY THE    2,679        

LOCAL LAW OF THE JURISDICTION IN WHICH THE DEBTOR IS LOCATED.                   

      Sec. 1309.112.  (A)  IN THIS CHAPTER:                        2,681        

      (1)  "COMMODITY ACCOUNT" MEANS AN ACCOUNT MAINTAINED BY A    2,683        

COMMODITY INTERMEDIARY IN WHICH A COMMODITY CONTRACT IS CARRIED    2,684        

FOR A COMMODITY CUSTOMER.                                          2,685        

      (2)  "COMMODITY CONTRACT" MEANS A COMMODITY FUTURES          2,687        

CONTRACT, AN OPTION ON A COMMODITY FUTURES CONTRACT, A COMMODITY   2,688        

OPTION, OR OTHER CONTRACT THAT, IN EACH CASE, IS:                  2,689        

      (a)  TRADED ON OR SUBJECT TO THE RULES OF A BOARD OF TRADE   2,691        

THAT HAS BEEN DESIGNATED AS A CONTRACT MARKET FOR SUCH A CONTRACT  2,692        

PURSUANT TO THE FEDERAL COMMODITIES LAWS; OR                       2,693        

      (b)  TRADED ON A FOREIGN COMMODITY BOARD OF TRADE,           2,695        

EXCHANGE, OR MARKET, AND IS CARRIED ON THE BOOKS OF A COMMODITY    2,696        

INTERMEDIARY FOR A COMMODITY CUSTOMER.                             2,697        

      (3)  "COMMODITY CUSTOMER" MEANS A PERSON FOR WHOM A          2,699        

COMMODITY INTERMEDIARY CARRIES A COMMODITY CONTRACT ON ITS BOOKS.  2,700        

      (4)  "COMMODITY INTERMEDIARY" MEANS:                         2,702        

      (a)  A PERSON WHO IS REGISTERED AS A FUTURES COMMISSION      2,704        

                                                          63     

                                                                 
MERCHANT UNDER THE FEDERAL COMMODITIES LAWS; OR                    2,705        

      (b)  A PERSON WHO IN THE ORDINARY COURSE OF ITS BUSINESS     2,707        

PROVIDES CLEARANCE OR SETTLEMENT SERVICES FOR A BOARD OF TRADE     2,708        

THAT HAS BEEN DESIGNATED AS A CONTRACT MARKET PURSUANT TO THE      2,709        

FEDERAL COMMODITIES LAWS.                                                       

      (5)  "CONTROL" WITH RESPECT TO A CERTIFICATED SECURITY,      2,711        

UNCERTIFICATED SECURITY, OR SECURITY ENTITLEMENT HAS THE MEANING   2,712        

SPECIFIED IN SECTION 1308.24 OF THE REVISED CODE.  A SECURED       2,713        

PARTY HAS CONTROL OVER A COMMODITY CONTRACT IF BY AGREEMENT AMONG  2,714        

THE COMMODITY CUSTOMER, THE COMMODITY INTERMEDIARY, AND THE                     

SECURED PARTY, THE COMMODITY INTERMEDIARY HAS AGREED THAT IT WILL  2,715        

APPLY ANY VALUE DISTRIBUTED ON ACCOUNT OF THE COMMODITY CONTRACT   2,716        

AS DIRECTED BY THE SECURED PARTY WITHOUT FURTHER CONSENT BY THE    2,717        

COMMODITY CUSTOMER.  IF A COMMODITY CUSTOMER GRANTS A SECURITY     2,718        

INTEREST IN A COMMODITY CONTRACT TO ITS OWN COMMODITY              2,719        

INTERMEDIARY, THE COMMODITY INTERMEDIARY AS SECURED PARTY HAS                   

CONTROL.  A SECURED PARTY HAS CONTROL OVER A SECURITIES ACCOUNT    2,720        

OR COMMODITY ACCOUNT IF THE SECURED PARTY HAS CONTROL OVER ALL     2,721        

SECURITY ENTITLEMENTS OR COMMODITY CONTRACTS CARRIED IN THE        2,722        

SECURITIES ACCOUNT OR COMMODITY ACCOUNT.                                        

      (6)  "INVESTMENT PROPERTY" MEANS:                            2,724        

      (a)  A SECURITY, WHETHER CERTIFICATED OR UNCERTIFICATED;     2,726        

      (b)  A SECURITY ENTITLEMENT;                                 2,728        

      (c)  A SECURITIES ACCOUNT;                                   2,730        

      (d)  A COMMODITY CONTRACT; OR                                2,732        

      (e)  A COMMODITY ACCOUNT.                                    2,734        

      (B)  ATTACHMENT OR PERFECTION OF A SECURITY INTEREST IN A    2,736        

SECURITIES ACCOUNT IS ALSO ATTACHMENT OR PERFECTION OF A SECURITY  2,737        

INTEREST IN ALL SECURITY ENTITLEMENTS CARRIED IN THE SECURITIES    2,738        

ACCOUNT.  ATTACHMENT OR PERFECTION OF A SECURITY INTEREST IN A     2,739        

COMMODITY ACCOUNT IS ALSO ATTACHMENT OR PERFECTION OF A SECURITY   2,740        

INTEREST IN ALL COMMODITY CONTRACTS CARRIED IN THE COMMODITY       2,741        

ACCOUNT.                                                                        

      (C)  A DESCRIPTION OF COLLATERAL IN A SECURITY AGREEMENT OR  2,743        

                                                          64     

                                                                 
FINANCING STATEMENT IS SUFFICIENT TO CREATE OR PERFECT A SECURITY  2,744        

INTEREST IN A CERTIFICATED SECURITY, UNCERTIFICATED SECURITY,      2,745        

SECURITY ENTITLEMENT, SECURITIES ACCOUNT, COMMODITY CONTRACT, OR   2,746        

COMMODITY ACCOUNT WHETHER IT DESCRIBES THE COLLATERAL BY THOSE     2,747        

TERMS, OR AS INVESTMENT PROPERTY, OR BY DESCRIPTION OF THE         2,748        

UNDERLYING SECURITY, FINANCIAL ASSET, OR COMMODITY CONTRACT.  A    2,749        

DESCRIPTION OF INVESTMENT PROPERTY COLLATERAL IN A SECURITY                     

AGREEMENT OR FINANCING STATEMENT IS SUFFICIENT IF IT IDENTIFIES    2,750        

THE COLLATERAL BY SPECIFIC LISTING, BY CATEGORY, BY QUANTITY, BY   2,751        

A COMPUTATIONAL OR ALLOCATIONAL FORMULA OR PROCEDURE, OR BY ANY    2,752        

OTHER METHOD, IF THE IDENTITY OF THE COLLATERAL IS OBJECTIVELY     2,753        

DETERMINABLE.                                                                   

      (D)  PERFECTION OF A SECURITY INTEREST IN INVESTMENT         2,755        

PROPERTY IS GOVERNED BY THE FOLLOWING RULES:                       2,756        

      (1)  A SECURITY INTEREST IN INVESTMENT PROPERTY MAY BE       2,758        

PERFECTED BY CONTROL.                                              2,759        

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (D)(3) AND    2,761        

(4) OF THIS SECTION, A SECURITY INTEREST IN INVESTMENT PROPERTY    2,762        

MAY BE PERFECTED BY FILING.                                        2,763        

      (3)  IF THE DEBTOR IS A BROKER OR SECURITIES INTERMEDIARY,   2,765        

A SECURITY INTEREST IN INVESTMENT PROPERTY IS PERFECTED WHEN IT    2,766        

ATTACHES.  THE FILING OF A FINANCING STATEMENT WITH RESPECT TO A   2,767        

SECURITY INTEREST IN INVESTMENT PROPERTY GRANTED BY A BROKER OR    2,768        

SECURITIES INTERMEDIARY HAS NO EFFECT FOR PURPOSES OF PERFECTION   2,769        

OR PRIORITY WITH RESPECT TO THAT SECURITY INTEREST.                             

      (4)  IF A DEBTOR IS A COMMODITY INTERMEDIARY, A SECURITY     2,771        

INTEREST IN A COMMODITY CONTRACT OR A COMMODITY ACCOUNT IS         2,772        

PERFECTED WHEN IT ATTACHES.  THE FILING OF A FINANCING STATEMENT   2,773        

WITH RESPECT TO A SECURITY INTEREST IN A COMMODITY CONTRACT OR A   2,774        

COMMODITY ACCOUNT GRANTED BY A COMMODITY INTERMEDIARY HAS NO       2,775        

EFFECT FOR PURPOSES OF PERFECTION OR PRIORITY WITH RESPECT TO                   

THAT SECURITY INTEREST.                                            2,776        

      (E)  PRIORITY BETWEEN CONFLICTING SECURITY INTERESTS IN THE  2,778        

SAME INVESTMENT PROPERTY IS GOVERNED BY THE FOLLOWING RULES:       2,779        

                                                          65     

                                                                 
      (1)  A SECURITY INTEREST OF A SECURED PARTY WHO HAS CONTROL  2,781        

OVER INVESTMENT PROPERTY HAS PRIORITY OVER A SECURITY INTEREST OF  2,782        

A SECURED PARTY WHO DOES NOT HAVE CONTROL OVER THE INVESTMENT      2,783        

PROPERTY.                                                                       

      (2)  EXCEPT AS OTHERWISE PROVIDED IN DIVISIONS (E)(3) AND    2,785        

(4) OF THIS SECTION, CONFLICTING SECURITY INTERESTS OF SECURED     2,786        

PARTIES EACH OF WHOM HAS CONTROL RANK EQUALLY.                     2,787        

      (3)  EXCEPT AS OTHERWISE AGREED BY THE SECURITIES            2,789        

INTERMEDIARY, A SECURITY INTEREST IN A SECURITY ENTITLEMENT OR A   2,790        

SECURITIES ACCOUNT GRANTED TO THE DEBTOR'S OWN SECURITIES          2,791        

INTERMEDIARY HAS PRIORITY OVER ANY SECURITY INTEREST GRANTED BY    2,792        

THE DEBTOR TO ANOTHER SECURED PARTY.                                            

      (4)  EXCEPT AS OTHERWISE AGREED BY THE COMMODITY             2,794        

INTERMEDIARY, A SECURITY INTEREST IN A COMMODITY CONTRACT OR A     2,795        

COMMODITY ACCOUNT GRANTED TO THE DEBTOR'S OWN COMMODITY            2,796        

INTERMEDIARY HAS PRIORITY OVER ANY SECURITY INTEREST GRANTED BY    2,797        

THE DEBTOR TO ANOTHER SECURED PARTY.                                            

      (5)  CONFLICTING SECURITY INTERESTS GRANTED BY A BROKER, A   2,799        

SECURITIES INTERMEDIARY, OR A COMMODITY INTERMEDIARY WHICH ARE     2,800        

PERFECTED WITHOUT CONTROL RANK EQUALLY.                            2,801        

      (6)  IN ALL OTHER CASES, PRIORITY BETWEEN CONFLICTING        2,803        

SECURITY INTERESTS IN INVESTMENT PROPERTY IS GOVERNED BY           2,804        

DIVISIONS (E), (F), AND (G) OF SECTION 1309.31 OF THE REVISED      2,805        

CODE.  DIVISION (D) OF SECTION 1309.31 OF THE REVISED CODE DOES    2,806        

NOT APPLY TO INVESTMENT PROPERTY.                                               

      (F)  IF A SECURITY CERTIFICATE IN REGISTERED FORM IS         2,808        

DELIVERED TO A SECURED PARTY PURSUANT TO AGREEMENT, A WRITTEN      2,809        

SECURITY AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR               2,810        

ENFORCEABILITY OF THE SECURITY INTEREST, DELIVERY SUFFICES FOR     2,811        

PERFECTION OF THE SECURITY INTEREST, AND THE SECURITY INTEREST                  

HAS PRIORITY OVER A CONFLICTING SECURITY INTEREST PERFECTED BY     2,812        

MEANS OTHER THAN CONTROL, EVEN IF A NECESSARY INDORSEMENT IS       2,813        

LACKING.                                                                        

      Sec. 1309.113.  (A)  IF A PERSON BUYS A FINANCIAL ASSET      2,815        

                                                          66     

                                                                 
THROUGH A SECURITIES INTERMEDIARY IN A TRANSACTION IN WHICH THE    2,816        

BUYER IS OBLIGATED TO PAY THE PURCHASE PRICE TO THE SECURITIES     2,817        

INTERMEDIARY AT THE TIME OF THE PURCHASE, AND THE SECURITIES       2,818        

INTERMEDIARY CREDITS THE FINANCIAL ASSET TO THE BUYER'S            2,819        

SECURITIES ACCOUNT BEFORE THE BUYER PAYS THE SECURITIES                         

INTERMEDIARY, THE SECURITIES INTERMEDIARY HAS A SECURITY INTEREST  2,820        

IN THE BUYER'S SECURITY ENTITLEMENT SECURING THE BUYER'S           2,821        

OBLIGATION TO PAY.  A SECURITY AGREEMENT IS NOT REQUIRED FOR       2,822        

ATTACHMENT OR ENFORCEABILITY OF THE SECURITY INTEREST, AND THE     2,823        

SECURITY INTEREST IS AUTOMATICALLY PERFECTED.                                   

      (B)  IF A CERTIFICATED SECURITY, OR OTHER FINANCIAL ASSET    2,825        

REPRESENTED BY A WRITING WHICH IN THE ORDINARY COURSE OF BUSINESS  2,826        

IS TRANSFERRED BY DELIVERY WITH ANY NECESSARY INDORSEMENT OR       2,827        

ASSIGNMENT IS DELIVERED PURSUANT TO AN AGREEMENT BETWEEN PERSONS   2,828        

IN THE BUSINESS OF DEALING WITH SUCH SECURITIES OR FINANCIAL       2,829        

ASSETS AND THE AGREEMENT CALLS FOR DELIVERY VERSUS PAYMENT, THE    2,830        

PERSON DELIVERING THE CERTIFICATE OR OTHER FINANCIAL ASSET HAS A   2,831        

SECURITY INTEREST IN THE CERTIFICATED SECURITY OR OTHER FINANCIAL               

ASSET SECURING THE SELLER'S RIGHT TO RECEIVE PAYMENT.  A SECURITY  2,832        

AGREEMENT IS NOT REQUIRED FOR ATTACHMENT OR ENFORCEABILITY OF THE  2,833        

SECURITY INTEREST, AND THE SECURITY INTEREST IS AUTOMATICALLY      2,834        

PERFECTED.                                                                      

      Sec. 1309.14.  (A)  Subject to the provisions of section     2,843        

1304.20 of the Revised Code on the security interest of a          2,844        

collecting bank, section 1308.36 SECTIONS 1309.112 AND 1309.113    2,846        

of the Revised Code on security interests in securities            2,847        

INVESTMENT PROPERTY, and section 1309.11 of the Revised Code on a  2,849        

security interest arising under sections 1302.01 to 1302.98 of     2,850        

the Revised Code, a security interest is not enforceable against   2,851        

the debtor or third parties with respect to the collateral and     2,852        

does not attach unless:                                                         

      (1)  The collateral is in the possession of the secured      2,854        

party pursuant to agreement, THE COLLATERAL IS INVESTMENT          2,855        

PROPERTY AND THE SECURED PARTY HAS CONTROL PURSUANT TO AGREEMENT,  2,856        

                                                          67     

                                                                 
or the debtor has signed a security agreement which contains a     2,858        

description of the collateral and in addition, when the security   2,859        

interest covers crops growing or to be grown or timber to be cut,  2,860        

a description of the land concerned; and                           2,861        

      (2)  Value has been given; and                               2,863        

      (3)  The debtor has rights in the collateral.                2,865        

      (B)  A security interest attaches when it becomes            2,867        

enforceable against the debtor with respect to the collateral.     2,868        

Attachment occurs as soon as all of the events specified in        2,869        

division (A) of this section have taken place unless explicit      2,870        

agreement postpones the time of attaching.                         2,871        

      (C)  Unless otherwise agreed, a security agreement gives     2,873        

the secured party the rights to proceeds provided by section       2,874        

1309.25 of the Revised Code.                                       2,875        

      (D)  A transaction although subject to sections 1309.01 to   2,877        

1309.50 of the Revised Code, is also subject to sections 1317.01   2,878        

to 1317.99 and 1321.01 to 1321.33 of the Revised Code, and         2,879        

divisions (A), (B), and (C) of section 1321.99 of the Revised      2,880        

Code and in the event of conflict between the provisions of        2,881        

sections 1309.01 to 1309.50, and 1317.01 to 1317.99, 1321.01 to    2,882        

1321.33 of the Revised Code, and divisions (A), (B), and (C) of    2,883        

section 1321.99 of the Revised Code, the provisions of sections    2,884        

1317.01 to 1317.99, 1321.01 to 1321.33 of the Revised Code, and    2,885        

divisions (A), (B), and (C) of section 1321.99 of the Revised      2,886        

Code shall prevail.  Failure to comply with such provisions has    2,887        

only the effect provided therein.                                  2,888        

      Sec. 1309.20.  (A)  Except as otherwise provided in          2,897        

division (B) of this section, an unperfected security interest is  2,898        

subordinate to the rights of:                                      2,899        

      (1)  Persons entitled to priority under section 1309.31 of   2,901        

the Revised Code;                                                  2,902        

      (2)  A person who becomes a lien creditor before the         2,904        

security interest is perfected;                                    2,905        

      (3)  In the case of goods, instruments, documents, and       2,907        

                                                          68     

                                                                 
chattel paper, a person who is not a secured party and who is a    2,908        

transferee in bulk or other buyer not in ordinary course of        2,909        

business, or is a buyer of farm products in ordinary course of     2,910        

business, to the extent that he THE PERSON gives value and         2,911        

receives delivery of the collateral without knowledge of the       2,912        

security interest and before it is perfected;                      2,914        

      (4)  In the case of accounts and, general intangibles, AND   2,916        

INVESTMENT PROPERTY, a person who is not a secured party and who   2,918        

is a transferee to the extent that he THE PERSON gives value       2,919        

without knowledge of the security interest and before it is        2,920        

perfected.                                                                      

      (B)  If the secured party files with respect to a purchase   2,922        

money security interest before or within twenty days after the     2,923        

debtor receives possession of the collateral he THE SECURED PARTY  2,925        

takes priority over the rights of a transferee in bulk or of a                  

lien creditor which arise between the time the security interest   2,926        

attaches and the time of filing.                                   2,927        

      (C)  A "lien creditor" means a creditor who has acquired a   2,929        

lien on the property involved by attachment, levy or the like and  2,930        

includes an assignee for benefit of creditors from the time of     2,931        

assignment, and a trustee in bankruptcy from the date of the       2,932        

filing of the petition or a receiver in equity from the time of    2,933        

appointment.                                                       2,934        

      (D)  A person who becomes a lien creditor while a security   2,936        

interest is perfected takes subject to the security interest only  2,937        

to the extent that it secures advances made before he THE PERSON   2,938        

becomes a lien creditor or within forty-five days thereafter or    2,939        

made without knowledge of the lien or pursuant to a commitment     2,940        

entered into without knowledge of the lien.                        2,941        

      Sec. 1309.21.  (A)  A financing statement must be filed to   2,950        

perfect all security interests except the following:               2,951        

      (1)  A security interest in collateral in possession of the  2,953        

secured party under section 1309.24 of the Revised Code;           2,954        

      (2)  A security interest temporarily perfected in            2,956        

                                                          69     

                                                                 
instruments, CERTIFICATED SECURITIES, or documents without         2,958        

delivery under section 1309.23 of the Revised Code or in proceeds  2,959        

for a ten-day period under section 1309.25 of the Revised Code;    2,960        

      (3)  A security interest created by an assignment of a       2,962        

beneficial interest in a trust or a decedent's estate;             2,963        

      (4)  A purchase money security interest in consumer goods;   2,965        

but fixture filing is required for a priority over conflicting     2,966        

interests in fixtures to the extent provided in section 1309.32    2,967        

of the Revised Code;                                               2,968        

      (5)  An assignment of accounts which does not alone or in    2,970        

conjunction with other assignments to the same assignee transfer   2,971        

a significant part of the outstanding accounts of the assignor;    2,972        

      (6)  A security interest of a collecting bank as provided    2,974        

in section 1304.20 of the Revised Code, or in securities as        2,975        

provided in section 1308.36 of the Revised Code, or arising under  2,976        

sections 1302.01 to 1302.98 of the Revised Code, or covered in     2,977        

division (C) of this section;                                      2,978        

      (7)  An assignment for the benefit of all the creditors of   2,980        

the transferor, and subsequent transfers by the assignee           2,981        

thereunder;                                                        2,982        

      (8)  A SECURITY INTEREST IN INVESTMENT PROPERTY WHICH IS     2,984        

PERFECTED WITHOUT FILING UNDER SECTION 1309.112 OR 1309.113 OF     2,985        

THE REVISED CODE.                                                               

      (B)  If a secured party assigns a perfected security         2,987        

interest, no filing under sections 1309.01 to 1309.50 of the       2,988        

Revised Code is required in order to continue the perfected        2,989        

status of the security interest against creditors of and           2,990        

transferees from the original debtor.                              2,991        

      (C)  The filing of a financing statement otherwise required  2,993        

by sections 1309.01 to 1309.50 of the Revised Code is not          2,994        

necessary or effective to perfect a security interest in property  2,995        

subject to:                                                        2,996        

      (1)  A statute or treaty of the United States which          2,998        

provides for a national or international registration or a         2,999        

                                                          70     

                                                                 
national or international certificate of title or which specifies  3,000        

a place of filing different from that specified in sections        3,001        

1309.01 to 1309.50 of the Revised Code for filing of the security  3,002        

interest; or                                                       3,003        

      (2)  The following statutes of this state:  sections         3,005        

1548.20, 1701.66, 4505.13 except to the extent provided in         3,006        

division (A) of such section, and 4969.05 of the Revised Code; or  3,007        

      (3)  A certificate of title statute of another jurisdiction  3,009        

under the law of which indication of a security interest on the    3,010        

certificate is required as a condition of perfection, division     3,011        

(B) of section 1309.03 of the Revised Code.                        3,012        

      (D)  Compliance with a statute or treaty described in        3,014        

division (C) of this section is equivalent to the filing of a      3,015        

financing statement under sections 1309.01 to 1309.50 of the       3,016        

Revised Code, and a security interest in property subject to the   3,017        

statute or treaty can be perfected only by compliance therewith    3,018        

except as provided in section 1309.03 of the Revised Code on       3,019        

multiple state transactions.  Duration and renewal of perfection   3,020        

of a security interest perfected by compliance with the statute    3,021        

or treaty are governed by the provisions of the statute or         3,022        

treaty; in other respects the security interest is subject to      3,023        

sections 1309.01 to 1309.50 of the Revised Code.                   3,024        

      Sec. 1309.22.  (A)  A security interest is perfected when    3,033        

it has attached and when all of the applicable steps required for  3,034        

perfection have been taken, as provided in sections 1309.112,      3,035        

1309.21, 1309.23, 1309.24, and 1309.25 of the Revised Code.  If    3,037        

such steps are taken before the security interest attaches, it is               

perfected at the time when it attaches.                            3,038        

      (B)  If a security interest is originally perfected in any   3,040        

way permitted under sections 1309.01 to 1309.50, inclusive, of     3,041        

the Revised Code, and is subsequently perfected in some other way  3,042        

under sections 1309.01 to 1309.50, inclusive, of the Revised       3,043        

Code, without an intermediate period when it was unperfected, the  3,044        

security interest shall be deemed to be perfected continuously     3,045        

                                                          71     

                                                                 
for the purposes of such sections.                                              

      (C)  A security interest by whatever name designated by any  3,047        

law in effect prior to July 1, 1962, which was perfected prior to  3,048        

such date and in connection with which any statement, instrument,  3,049        

document, or notice was filed, refiled, or recorded pursuant to    3,050        

such law, shall, if such law required a further filing, refiling,  3,051        

or recording to continue the perfection of such security           3,052        

interest, continue to be perfected without any further filing,                  

refiling, or recording of any statement, instrument, document, or  3,053        

notice until the date provided by such law or July 1, 1964,        3,054        

whichever date is later and will thereupon lapse, unless a         3,055        

continuation statement has been filed after July 1, 1962, and      3,056        

prior to the lapse of such statement, instrument, document, or     3,057        

notice pursuant to this section.  Section 1309.38 of the Revised                

Code determines the proper place to file such continuation         3,058        

statement and succeeding continuation statements and, except as    3,059        

otherwise provided in this section, division (C) of section        3,060        

1309.40 of the Revised Code applies to and governs the period of   3,061        

effectiveness and the requirements respecting such continuation                 

statements.                                                        3,062        

      Sec. 1309.23.  (A)  A security interest in chattel paper or  3,071        

negotiable documents may be perfected by filing.  A security       3,072        

interest in money or instruments, other than certificated          3,073        

securities or instruments which constitute part of chattel paper,  3,074        

can be perfected only by the secured party's taking possession,    3,075        

except as provided in divisions (D) and (E) of this section and    3,076        

divisions (B) and (C) of section 1309.25 of the Revised Code on    3,077        

proceeds.                                                          3,078        

      (B)  During the period that goods are in the possession of   3,080        

the issuer of a negotiable document therefor, a security interest  3,081        

in the goods is perfected by perfecting a security interest in     3,082        

the document, and any security interest in the goods otherwise     3,083        

perfected during such period is subject thereto.                   3,084        

      (C)  A security interest in goods in the possession of a     3,086        

                                                          72     

                                                                 
bailee other than one who has issued a negotiable document         3,087        

therefor is perfected by issuance of a document in the name of     3,088        

the secured party or by the bailee's receipt of notification of    3,089        

the secured party's interest or by filing as to the goods.         3,090        

      (D)  A security interest in instruments, other than          3,092        

certificated securities, or negotiable documents is perfected      3,093        

without filing or the taking of possession for a period of         3,094        

twenty-one days from the time it attaches to the extent that it    3,095        

arises for new value given under a written security agreement.     3,096        

      (E)  A security interest remains perfected for a period of   3,098        

twenty-one days without filing where a secured party having a      3,099        

perfected security interest in an instrument, other than a         3,100        

certificated security, a negotiable document, or goods in          3,101        

possession of a bailee other than one who has issued a negotiable  3,102        

document therefor:                                                 3,103        

      (1)  Makes available to the debtor the goods or documents    3,105        

representing the goods for the purpose of ultimate sale or         3,106        

exchange or for the purpose of loading, unloading, storing,        3,107        

shipping, trans-shipping, manufacturing, processing, or otherwise  3,108        

dealing with them in a manner preliminary to their sale or         3,109        

exchange, but priority between conflicting security interests in   3,110        

the goods is subject to division (C) of section 1309.31 of the     3,111        

Revised Code; or                                                   3,112        

      (2)  Delivers the instrument OR CERTIFICATED SECURITY to     3,114        

the debtor for the purpose of ultimate sale or exchange or of      3,116        

presentation, collection, renewal, or registration of transfer.    3,117        

      (F)  After the twenty-one day period set forth in divisions  3,119        

(D) and (E) of this section, perfection depends upon compliance    3,120        

with applicable provisions of sections 1309.01 to 1309.50 of the   3,121        

Revised Code.                                                      3,122        

      Sec. 1309.24.  A security interest in letters of credit and  3,131        

advices of credit, as provided in division (B)(1) of section       3,132        

1305.15 of the Revised Code, goods, instruments, other than        3,133        

certificated securities, negotiable documents, money, or chattel   3,134        

                                                          73     

                                                                 
paper may be perfected by the secured party's taking possession    3,135        

of the collateral.  If such collateral other than goods covered    3,136        

by a negotiable document is held by a bailee, the secured party    3,137        

is deemed to have possession from the time the bailee receives     3,138        

notification of the secured party's interest.  A security          3,139        

interest is perfected by possession from the time possession is    3,140        

taken without relation back and continues only so long as          3,141        

possession is retained, unless otherwise specified in sections     3,142        

1309.01 to 1309.50 of the Revised Code.  The security interest     3,143        

may be otherwise perfected as provided in sections 1309.01 to      3,144        

1309.50 of the Revised Code, before or after the period of         3,145        

possession by the secured party.                                   3,146        

      Sec. 1309.25.  (A)  "Proceeds" includes whatever is          3,155        

received upon the sale, exchange, collection, or other             3,156        

disposition of collateral or proceeds.  Insurance payable by       3,157        

reason of loss or damage to the collateral is proceeds, except to  3,158        

the extent that it is payable to a person other than a party to    3,159        

the security agreement.  Moneys ANY PAYMENTS OR DISTRIBUTIONS      3,160        

MADE WITH RESPECT TO INVESTMENT PROPERTY COLLATERAL ARE PROCEEDS.  3,161        

MONEY, checks, deposit accounts, and the like are "cash            3,163        

proceeds."  All other proceeds are "non-cash proceeds."            3,164        

      (B)  Except where sections 1309.01 to 1309.50 of the         3,166        

Revised Code otherwise provide, a security interest continues in   3,167        

collateral notwithstanding sale, exchange, or other disposition    3,168        

thereof unless the disposition was authorized by the secured       3,169        

party in the security agreement or otherwise, and also continues   3,170        

in any identifiable proceeds including collections received by     3,171        

the debtor.                                                        3,172        

      (C)  The security interest in proceeds is a continuously     3,174        

perfected security interest if the interest in the original        3,175        

collateral was perfected but it ceases to be a perfected security  3,176        

interest and becomes unperfected ten days after receipt of the     3,177        

proceeds by the debtor unless:                                     3,178        

      (1)  a A filed financing statement covers the original       3,180        

                                                          74     

                                                                 
collateral and the proceeds are collateral in which a security     3,181        

interest may be perfected by filing in the office or offices       3,182        

where the financing statement has been filed and, if the proceeds  3,183        

are acquired with cash proceeds, the description of the            3,184        

collateral in the financing statement indicates the types of       3,185        

property constituting the proceeds; or                             3,186        

      (2)  a A filed financing statement covers the original       3,188        

collateral and the proceeds are identifiable cash proceeds; or     3,189        

      (3)  the THE ORIGINAL COLLATERAL WAS INVESTMENT PROPERTY     3,191        

AND THE PROCEEDS ARE IDENTIFIABLE CASH PROCEEDS; OR                3,192        

      (4)  THE security interest in the proceeds is perfected      3,194        

before the expiration of the ten day period.  Except as provided   3,195        

in this section, a security interest in proceeds can be perfected  3,196        

only by the methods or under the circumstances permitted in        3,197        

sections 1309.01 to 1309.50 of the Revised Code for original       3,198        

collateral of the same type.                                       3,199        

      (D)  In the event of insolvency proceedings instituted by    3,201        

or against a debtor, a secured party with a perfected security     3,202        

interest in proceeds has a perfected security interest only in     3,203        

the following proceeds:                                            3,204        

      (1)  in IN identifiable non-cash proceeds and in separate    3,206        

deposit accounts containing only proceeds;                         3,207        

      (2)  in IN identifiable cash proceeds in the form of money   3,209        

which is neither commingled with other money nor deposited in a    3,210        

deposit account prior to the insolvency proceedings;               3,211        

      (3)  in IN identifiable cash proceeds in the form of checks  3,213        

and the like which are not deposited in a deposit account prior    3,214        

to the insolvency proceedings; and                                 3,215        

      (4)  in IN all cash and deposit accounts of the debtor in    3,217        

which proceeds have been commingled with other funds, but the      3,218        

perfected security interest under this division is:                3,219        

      (a)  subject SUBJECT to any right of set-off; and            3,221        

      (b)  limited LIMITED to an amount not greater than the       3,223        

amount of any cash proceeds received by the debtor within ten      3,224        

                                                          75     

                                                                 
days before the institution of the insolvency proceedings, less    3,225        

the sum of (i) the payments to the secured party on account of     3,226        

cash proceeds received by the debtor; and (ii) the cash proceeds   3,227        

received by the debtor during such period to which the secured     3,228        

party is entitled under divisions (D)(1) to (3) of this section.   3,229        

      (E)  If a sale of goods results in an account or chattel     3,231        

paper which is transferred by the seller to a secured party, and   3,232        

if the goods are returned to or are repossessed by the seller or   3,233        

the secured party, the following rules determine priorities:       3,234        

      (1)  If the goods were collateral at the time of sale for    3,236        

an indebtedness of the seller which is still unpaid, the original  3,237        

security interest attaches again to the goods and continues as a   3,238        

perfected security interest if it was perfected at the time when   3,239        

the goods were sold.  If the security interest was originally      3,240        

perfected by a filing which is still effective, nothing further    3,241        

is required to continue the perfected status; in any other case,   3,242        

the secured party must take possession of the returned or          3,243        

repossessed goods or must file.                                    3,244        

      (2)  An unpaid transferee of the chattel paper has a         3,246        

security interest in the goods against the transferor.  Such       3,247        

security interest is prior to a security interest asserted under   3,248        

division (E)(1) of this section to the extent that the transferee  3,249        

of the chattel paper was entitled to priority under section        3,250        

1309.27 of the Revised Code.                                       3,251        

      (3)  An unpaid transferee of the account has a security      3,253        

interest in the goods against the transferor.  Such security       3,254        

interest is subordinate to a security interest asserted under      3,255        

division (E)(1) of this section.                                   3,256        

      (4)  A security interest of an unpaid transferee asserted    3,258        

under division (E)(2) or (3) of this section must be perfected     3,259        

for protection against creditors of the transferor and purchasers  3,260        

of the returned or repossessed goods.                              3,261        

      Sec. 1309.28.  Nothing in sections 1309.01 to 1309.50 of     3,270        

the Revised Code, limit LIMITS the rights of a holder in due       3,271        

                                                          76     

                                                                 
course of a negotiable instrument, as defined in section 1303.32   3,273        

of the Revised Code, or a holder to whom a negotiable document of  3,274        

title has been duly negotiated under section 1307.29 of the        3,275        

Revised Code, or a bona fide PROTECTED purchaser of a security     3,276        

under section 1308.17 of the Revised Code, and such holders or     3,278        

purchasers take priority over an earlier security interest even    3,279        

though perfected. Filing under sections 1309.01 to 1309.50 of the  3,280        

Revised Code, does not constitute notice of the security interest  3,281        

to such holders or purchasers.                                     3,282        

      Sec. 1309.31.  (A)  The rules of priority stated in          3,291        

sections 1309.20 to 1309.27 of the Revised Code and in the         3,292        

following sections shall govern where applicable:  section         3,293        

1304.20 of the Revised Code with respect to the security           3,294        

interests of collecting banks in items being collected,            3,295        

accompanying documents, and proceeds; section 1309.03 of the       3,296        

Revised Code on security interests related to other                3,297        

jurisdictions; section 1309.111 of the Revised Code on             3,298        

consignments; SECTION 1309.112 OF THE REVISED CODE ON SECURITY     3,299        

INTERESTS IN INVESTMENT PROPERTY.                                  3,300        

      (B)  A perfected security interest in crops for new value    3,302        

given to enable the debtor to produce the crops during the         3,303        

production season and given not more than three months before the  3,304        

crops become growing crops by planting or otherwise takes          3,305        

priority over an earlier perfected security interest to the        3,306        

extent that such earlier interest secures obligations due more     3,307        

than six months before the crops become growing crops by planting  3,308        

or otherwise, even though the person giving new value had          3,309        

knowledge of the earlier security interest.                        3,310        

      (C)  A perfected purchase money security interest in         3,312        

inventory has priority over a conflicting security interest in     3,313        

the same inventory and also has priority in identifiable cash      3,314        

proceeds received on or before the delivery of the inventory to a  3,315        

buyer if:                                                          3,316        

      (1)  The purchase money security interest is perfected at    3,318        

                                                          77     

                                                                 
the time the debtor receives possession of the inventory; and      3,319        

      (2)  The purchase money secured party gives notification in  3,321        

writing to the holder of the conflicting security interest if the  3,322        

holder had filed a financing statement covering the same types of  3,323        

inventory:                                                         3,324        

      (a)  Before the date of the filing made by the purchase      3,326        

money secured party; or                                            3,327        

      (b)  Before the beginning of the twenty-one-day period       3,329        

where the purchase money security interest is temporarily          3,330        

perfected without filing or possession pursuant to division (E)    3,331        

of section 1309.23 of the Revised Code; and                        3,332        

      (3)  The holder of the conflicting security interest         3,334        

receives the notification within five years before the debtor      3,335        

receives possession of the inventory; and                          3,336        

      (4)  The notification states that the person giving the      3,338        

notice has or expects to acquire a purchase money security         3,339        

interest in inventory of the debtor, describing such inventory by  3,340        

item or type.                                                      3,341        

      (D)  A purchase money security interest in collateral other  3,343        

than inventory has priority over a conflicting security interest   3,344        

in the same collateral or its proceeds if the purchase money       3,345        

security interest is perfected at the time the debtor receives     3,346        

possession of the collateral or within twenty days thereafter.     3,347        

      (E)  In all cases not governed by other rules stated in      3,349        

this section, including cases of purchase money security           3,350        

interests which do not qualify for the special priorities set      3,351        

forth in divisions (C) and (D) of this section, priority between   3,352        

conflicting security interests in the same collateral shall be     3,353        

determined according to the following rules:                       3,354        

      (1)  Conflicting security interests rank according to        3,356        

priority in time of filing or perfection.  Priority dates from     3,357        

the time a filing is first made covering the collateral or the     3,358        

time the security interest is first perfected, whichever is        3,359        

earlier, provided that there is no period thereafter when there    3,360        

                                                          78     

                                                                 
is neither filing nor perfection.                                  3,361        

      (2)  So long as conflicting security interests are           3,363        

unperfected, the first to attach has priority.                     3,364        

      (F)  For the purpose of division (E) of this section, a      3,366        

date of filing or perfection as to collateral is also a date of    3,367        

filing or perfection as to proceeds.                               3,368        

      (G)  If future advances are made while a security interest   3,370        

is perfected by filing, the taking of possession, or under         3,371        

section 1308.36 1309.112 OR 1309.113 of the Revised Code on        3,373        

securities INVESTMENT PROPERTY, the security interest has the      3,374        

same priority for the purposes of division (E) of this section OR  3,375        

DIVISION (E) OF SECTION 1309.112 OF THE REVISED CODE with respect  3,376        

to the future advances as it does with respect to the first        3,377        

advance.  If a commitment is made before or while the security     3,378        

interest is so perfected, the security interest has the same       3,379        

priority with respect to advances made pursuant thereto.  In       3,380        

other cases a perfected security interest has priority from the    3,381        

date the advance is made.                                                       

      Sec. 1701.01.  As used in sections 1701.01 to 1701.98 of     3,390        

the Revised Code, unless the context otherwise requires:           3,391        

      (A)  "Corporation" or "domestic corporation" means a         3,393        

corporation for profit formed under the laws of this state.        3,394        

      (B)  "Foreign corporation" means a corporation for profit    3,396        

formed under the laws of another state, and "foreign entity"       3,397        

means an entity formed under the laws of another state.            3,398        

      (C)  "State" means the United States; any state, territory,  3,400        

insular possession, or other political subdivision of the United   3,401        

States, including the District of Columbia; any foreign country    3,402        

or nation; and any province, territory, or other political         3,403        

subdivision of such foreign country or nation.                     3,404        

      (D)  "Articles" includes original articles of                3,406        

incorporation, certificates of reorganization, amended articles,   3,408        

and amendments to any of these, and, in the case of a corporation  3,409        

created before September 1, 1851, the special charter and any      3,410        

                                                          79     

                                                                 
amendments to it made by special act of the general assembly or    3,411        

pursuant to general law.                                           3,412        

      (E)  "Incorporator" means a person who signed the original   3,414        

articles of incorporation.                                         3,415        

      (F)  "Shareholder" means a person whose name appears on the  3,417        

books of the corporation as the owner of shares of such            3,418        

corporation.  Unless the articles, the regulations, or the         3,419        

contract of subscription otherwise provides, "shareholder"         3,420        

includes a subscriber to shares, whether the subscription is       3,421        

received by the incorporators or pursuant to authorization by the  3,422        

directors, and such shares shall be deemed to be outstanding       3,423        

shares.                                                            3,424        

      (G)  "Person" includes, without limitation, A NATURAL        3,426        

PERSON, a corporation, whether nonprofit or for profit, a          3,427        

partnership, a limited liability company, an unincorporated        3,428        

society or association, and two or more persons having a joint or  3,429        

common interest.                                                   3,430        

      (H)  The location of the "principal office" of a             3,432        

corporation is the place named as the principal office in its      3,433        

articles.                                                                       

      (I)  The "express terms" of shares of a class are the        3,435        

statements expressed in the articles with respect to such shares.  3,436        

      (J)  Shares of a class are "junior" to shares of another     3,438        

class when any of their dividend or distribution rights are        3,439        

subordinate to, or dependent or contingent upon, any right of, or  3,440        

dividend on, or distribution to, shares of such other class.       3,441        

      (K)  "Treasury shares" means shares belonging to the         3,443        

corporation and not retired that have been either issued and       3,444        

thereafter acquired by the corporation or paid as a dividend or    3,445        

distribution in shares of the corporation on treasury shares of    3,446        

the same class; such shares shall be deemed to be issued, but      3,447        

they shall not be considered as an asset or a liability of the     3,448        

corporation, or as outstanding for dividend or distribution,       3,449        

quorum, voting, or other purposes, except, when authorized by the  3,450        

                                                          80     

                                                                 
directors, for dividends or distributions in authorized but        3,451        

unissued shares of the corporation of the same class.              3,452        

      (L)  To "retire" a share means to restore it to the status   3,454        

of an authorized but unissued share.                               3,455        

      (M)  "Redemption price of shares" means the amount required  3,457        

by the articles to be paid on redemption of shares.                3,458        

      (N)  "Liquidation price" means the amount or portion of      3,460        

assets required by the articles to be distributed to the holders   3,461        

of shares of any class upon dissolution, liquidation, merger, or   3,462        

consolidation of the corporation, or upon sale of all or           3,463        

substantially all of its assets.                                   3,464        

      (O)  "Insolvent" means that the corporation is unable to     3,466        

pay its obligations as they become due in the usual course of its  3,467        

affairs.                                                           3,468        

      (P)  "Parent corporation" or "parent" means a domestic or    3,470        

foreign corporation that owns and holds of record shares of        3,472        

another corporation, domestic or foreign, entitling the holder of  3,473        

the shares at the time to exercise a majority of the voting power  3,474        

in the election of the directors of the other corporation without  3,475        

regard to voting power that may thereafter exist upon a default,   3,477        

failure, or other contingency; "subsidiary corporation" or         3,478        

"subsidiary" means a domestic or foreign corporation of which      3,479        

another corporation, domestic or foreign, is the parent.           3,480        

      (Q)  "Combination" means a transaction, other than a merger  3,482        

or consolidation, wherein either of the following applies:         3,483        

      (1)  Voting shares of a domestic corporation are issued or   3,485        

transferred in consideration in whole or in part for the transfer  3,486        

to itself or to one or more of its subsidiaries, domestic or       3,487        

foreign, of all or substantially all the assets of one or more     3,488        

corporations, domestic or foreign, with or without good will or    3,489        

the assumption of liabilities;                                     3,490        

      (2)  Voting shares of a foreign parent corporation are       3,492        

issued or transferred in consideration in whole or in part for     3,493        

the transfer of such assets to one or more of its domestic         3,494        

                                                          81     

                                                                 
subsidiaries.                                                      3,495        

      "Transferee corporation" in a combination means the          3,497        

corporation, domestic or foreign, to which the assets are          3,498        

transferred, and "transferor corporation" in a combination means   3,499        

the corporation, domestic or foreign, transferring such assets     3,500        

and to which, or to the shareholders of which, the voting shares   3,501        

of the domestic or foreign corporation are issued or transferred.  3,502        

      (R)  "Majority share acquisition" means the acquisition of   3,504        

shares of a corporation, domestic or foreign, entitling the        3,505        

holder of the shares to exercise a majority of the voting power    3,506        

in the election of directors of such corporation without regard    3,507        

to voting power that may thereafter exist upon a default,          3,508        

failure, or other contingency, by either of the following:         3,509        

      (1)  A domestic corporation in consideration in whole or in  3,511        

part, for the issuance or transfer of its voting shares;           3,512        

      (2)  A domestic or foreign subsidiary in consideration in    3,514        

whole or in part for the issuance or transfer of voting shares of  3,515        

its domestic parent.                                               3,516        

      (S)  "Acquiring corporation" in a combination means the      3,518        

domestic corporation whose voting shares are issued or             3,519        

transferred by it or its subsidiary or subsidiaries to the         3,520        

transferor corporation or corporations or the shareholders of the  3,521        

transferor corporation or corporations; and "acquiring             3,522        

corporation" in a majority share acquisition means the domestic    3,523        

corporation whose voting shares are issued or transferred by it    3,524        

or its subsidiary in consideration for shares of a domestic or     3,525        

foreign corporation entitling the holder of the shares to          3,526        

exercise a majority of the voting power in the election of         3,527        

directors of such corporation.                                     3,528        

      (T)  When used in connection with a combination or a         3,530        

majority share acquisition, "voting shares" means shares of a      3,531        

corporation, domestic or foreign, entitling the holder of the      3,532        

shares to vote at the time in the election of directors of such    3,533        

corporation without regard to voting power which may thereafter    3,534        

                                                          82     

                                                                 
exist upon a default, failure, or other contingency.               3,535        

      (U)  "An emergency" exists when the governor, or any other   3,537        

person lawfully exercising the power and discharging the duties    3,538        

of the office of governor, proclaims that an attack on the United  3,539        

States or any nuclear, atomic, or other disaster has caused an     3,540        

emergency for corporations, and such an emergency shall continue   3,541        

until terminated by proclamation of the governor or any other      3,542        

person lawfully exercising the powers and discharging the duties   3,543        

of the office of governor.                                         3,544        

      (V)  "Constituent corporation" means an existing             3,546        

corporation merging into or into which is being merged one or      3,547        

more other entities in a merger or an existing corporation being   3,549        

consolidated with one or more other entities into a new entity in  3,550        

a consolidation, whether any of the entities is domestic or        3,551        

foreign, and "constituent entity" means any entity merging into                 

or into which is being merged one or more other entities in a      3,552        

merger, or an existing entity being consolidated with one or more  3,553        

other entities into a new entity in a consolidation, whether any   3,554        

of the entities is domestic or foreign.                            3,555        

      (W)  "Surviving corporation" means the constituent domestic  3,558        

or foreign corporation that is specified as the corporation into   3,559        

which one or more other constituent entities are to be or have     3,560        

been merged, and "surviving entity" means the constituent                       

domestic or foreign entity that is specified as the entity into    3,561        

which one or more other constituent entities are to be or have     3,562        

been merged.                                                                    

      (X)  "Close corporation agreement" means an agreement that   3,564        

satisfies the three requirements of division (A) of section        3,565        

1701.591 of the Revised Code.                                      3,566        

      (Y)  "Issuing public corporation" means a domestic           3,568        

corporation with fifty or more shareholders that has its           3,569        

principal place of business, its principal executive offices,      3,570        

assets having substantial value, or a substantial percentage of    3,571        

its assets within this state, and as to which no valid close       3,572        

                                                          83     

                                                                 
corporation agreement exists under division (H) of section         3,573        

1701.591 of the Revised Code.                                      3,574        

      (Z)(1)  "Control share acquisition" means the acquisition,   3,576        

directly or indirectly, by any person of shares of an issuing      3,577        

public corporation that, when added to all other shares of the     3,578        

issuing public corporation in respect of which such person may     3,579        

exercise or direct the exercise of voting power as provided in     3,580        

this division, would entitle such person, immediately after such   3,581        

acquisition, directly or indirectly, alone or with others, to      3,582        

exercise or direct the exercise of the voting power of the         3,583        

issuing public corporation in the election of directors within     3,584        

any of the following ranges of such voting power:                  3,585        

      (a)  One-fifth or more but less than one-third of such       3,587        

voting power;                                                      3,588        

      (b)  One-third or more but less than a majority of such      3,590        

voting power;                                                      3,591        

      (c)  A majority or more of such voting power.                3,593        

      A bank, broker, nominee, trustee, or other person who        3,595        

acquires shares in the ordinary course of business for the         3,596        

benefit of others in good faith and not for the purpose of         3,597        

circumventing section 1701.831 of the Revised Code shall,          3,598        

however, be deemed to have voting power only of shares in respect  3,599        

of which such person would be able, without further instructions   3,600        

from others, to exercise or direct the exercise of votes on a      3,601        

proposed control share acquisition at a meeting of shareholders    3,602        

called under section 1701.831 of the Revised Code.                 3,603        

      (2)  The acquisition by any person of any shares of an       3,605        

issuing public corporation does not constitute a control share     3,606        

acquisition for the purpose of section 1701.831 of the Revised     3,607        

Code if the acquisition was or is consummated in, results from,    3,608        

or is the consequence of any of the following circumstances:       3,609        

      (a)  Prior to November 19, 1982;                             3,611        

      (b)  Pursuant to a contract existing prior to November 19,   3,613        

1982;                                                              3,614        

                                                          84     

                                                                 
      (c)  By bequest or inheritance, by operation of law upon     3,616        

the death of an individual, or by any other transfer without       3,617        

valuable consideration, including a gift, that is made in good     3,618        

faith and not for the purpose of circumventing section 1701.831    3,619        

of the Revised Code;                                               3,620        

      (d)  Pursuant to the satisfaction of a pledge or other       3,622        

security interest created in good faith and not for the purpose    3,623        

of circumventing section 1701.831 of the Revised Code;             3,624        

      (e)  Pursuant to a merger or consolidation adopted, or a     3,626        

combination or majority share acquisition authorized, by           3,627        

shareholder vote in compliance with section 1701.78, 1701.781, or  3,629        

1701.83 of the Revised Code provided the issuing public            3,630        

corporation is the surviving or new corporation in the merger or   3,631        

consolidation or is the acquiring corporation in the combination   3,632        

or majority share acquisition;                                                  

      (f)  The person's being entitled, immediately thereafter,    3,634        

to exercise or direct the exercise of voting power of the issuing  3,635        

public corporation in the election of directors within the same    3,636        

range theretofore attained by that person either in compliance     3,637        

with the provisions of section 1701.831 of the Revised Code or as  3,638        

a result solely of the issuing public corporation's purchase of    3,639        

shares issued by it.                                               3,640        

      The acquisition by any person of shares of an issuing        3,642        

public corporation in a manner described under division (Z)(2) of  3,643        

this section shall be deemed a control share acquisition           3,644        

authorized pursuant to section 1701.831 of the Revised Code        3,645        

within the range of voting power under division (Z)(1)(a), (b),    3,646        

or (c) of this section that such person is entitled to exercise    3,647        

after such acquisition, provided, in the case of an acquisition    3,648        

in a manner described under division (Z)(2)(c) or (d) of this      3,649        

section, the transferor of shares to such person had previously    3,650        

obtained any authorization of shareholders required under section  3,651        

1701.831 of the Revised Code in connection with such transferor's  3,652        

acquisition of shares of the issuing public corporation.           3,653        

                                                          85     

                                                                 
      (3)  The acquisition of shares of an issuing public          3,655        

corporation in good faith and not for the purpose of               3,656        

circumventing section 1701.831 of the Revised Code from any        3,657        

person whose control share acquisition previously had been         3,658        

authorized by shareholders in compliance with section 1701.831 of  3,659        

the Revised Code, or from any person whose previous acquisition    3,660        

of shares of an issuing public corporation would have constituted  3,661        

a control share acquisition but for division (Z)(2) or (3) of      3,662        

this section, does not constitute a control share acquisition for  3,663        

the purpose of section 1701.831 of the Revised Code unless such    3,664        

acquisition entitles the person making the acquisition, directly   3,665        

or indirectly, alone or with others, to exercise or direct the     3,666        

exercise of voting power of the corporation in the election of     3,667        

directors in excess of the range of such voting power authorized   3,668        

pursuant to section 1701.831 of the Revised Code, or deemed to be  3,669        

so authorized under division (Z)(2) of this section.               3,670        

      (AA)  "Acquiring person" means any person who has delivered  3,672        

an acquiring person statement to an issuing public corporation     3,673        

pursuant to section 1701.831 of the Revised Code.                  3,674        

      (BB)  "Acquiring person statement" means a written           3,676        

statement that complies with division (B) of section 1701.831 of   3,677        

the Revised Code.                                                  3,678        

      (CC)(1)  "Interested shares" means the shares of an issuing  3,680        

public corporation in respect of which any of the following        3,681        

persons may exercise or direct the exercise of the voting power    3,682        

of the corporation in the election of directors:                   3,683        

      (a)  An acquiring person;                                    3,685        

      (b)  Any officer of the issuing public corporation elected   3,687        

or appointed by the directors of the issuing public corporation;   3,688        

      (c)  Any employee of the issuing public corporation who is   3,690        

also a director of such corporation.;                              3,691        

      (2)  "Interested shares" also means any shares of an         3,693        

issuing public corporation acquired, directly or indirectly, by    3,694        

any (d)  ANY person from the holder or holders thereof for a THAT  3,696        

                                                          86     

                                                                 
ACQUIRES SUCH SHARES FOR valuable consideration during the period  3,697        

beginning with the date of the first public disclosure of a        3,698        

proposed control share acquisition of the issuing public           3,699        

corporation or any proposed merger, consolidation, or other        3,700        

transaction that would result in a change in control of the        3,701        

corporation or all or substantially all of its assets, and ending  3,702        

on the RECORD date of any special meeting of the corporation's     3,703        

shareholders held thereafter pursuant to section 1701.831 of the   3,704        

Revised Code, for the purpose of voting on a control share         3,705        

acquisition proposed by any acquiring person ESTABLISHED BY THE    3,706        

DIRECTORS PURSUANT TO SECTION 1701.45 AND DIVISION (D) OF SECTION  3,707        

1701.831 OF THE REVISED CODE, if either of the following applies:  3,708        

      (a)(i)  The aggregate consideration paid or given by the     3,710        

person who acquired the shares, and any other persons acting in    3,711        

concert with the person, for all such shares exceeds two hundred   3,713        

fifty thousand dollars;                                                         

      (b)(ii)  The number of shares acquired by the person who     3,715        

acquired the shares, and any other persons acting in concert with  3,716        

the person, exceeds one-half of one per cent of the outstanding    3,718        

shares of the corporation entitled to vote in the election of      3,719        

directors.                                                                      

      (e)  ANY PERSON THAT TRANSFERS SUCH SHARES FOR VALUABLE      3,721        

CONSIDERATION AFTER THE RECORD DATE DESCRIBED IN DIVISION          3,723        

(CC)(1)(d) OF THIS SECTION AS TO SHARES SO TRANSFERRED, IF         3,724        

ACCOMPANIED BY THE VOTING POWER IN THE FORM OF A BLANK PROXY, AN   3,725        

AGREEMENT TO VOTE AS INSTRUCTED BY THE TRANSFEREE, OR OTHERWISE.                

      (3)(2)  If any part of this division is held to be illegal   3,727        

or invalid in application, the illegality or invalidity does not   3,728        

affect any legal and valid application thereof or any other        3,729        

provision or application of this division or section 1701.831 of   3,730        

the Revised Code that can be given effect without the invalid or   3,732        

illegal provision, and the parts and applications of this          3,733        

division are severable.                                            3,734        

      (DD)  "Certificated security" and "uncertificated security"  3,736        

                                                          87     

                                                                 
have the same meanings as in section 1308.01 of the Revised Code.  3,737        

      (EE)  "Entity" means any of the following:                   3,739        

      (1)  A for profit corporation existing under the laws of     3,741        

this state or any other state;                                     3,742        

      (2)  Any of the following organizations existing under the   3,744        

laws of this state, the United States, or any other state:         3,745        

      (a)  A business trust or association;                        3,747        

      (b)  A real estate investment trust;                         3,749        

      (c)  A common law trust;                                     3,751        

      (d)  An unincorporated business or for profit organization,  3,753        

including a general or limited partnership;                        3,754        

      (e)  A limited liability company.                            3,756        

      Sec. 1701.24.  (A)  The shares of a corporation are          3,765        

personal property.                                                 3,766        

      (B)  Each holder of shares is entitled to one or more        3,768        

certificates, signed by the chairman CHAIRPERSON of the board or   3,769        

the president or a vice-president and by the secretary, an         3,770        

assistant secretary, the treasurer, or an assistant treasurer of   3,771        

the corporation, which shall certify the number and class of       3,772        

shares held by him THE HOLDER in such corporation, but no          3,773        

certificate for shares shall be executed or delivered until such   3,774        

shares are fully paid.  When such a certificate is countersigned   3,775        

by an incorporated transfer agent or registrar, the signature of   3,776        

any of said SUCH officers of the corporation may be facsimile,     3,777        

engraved, stamped, or printed.  Although any officer of the        3,778        

corporation whose manual or facsimile signature is affixed to      3,779        

such a certificate ceases to be such officer before the            3,780        

certificate is delivered, such certificate nevertheless shall be   3,781        

effective in all respects when delivered.                          3,782        

      (C)  A corporation is not obligated to but may issue         3,784        

fractional shares.  In the case of uncertificated securities, the  3,785        

corporation may treat the issuance of fractional shares in         3,786        

accordance with the procedures set forth in section 1308.44 of     3,787        

the Revised Code, or may proceed as provided in divisions (C)(1)   3,788        

                                                          88     

                                                                 
and (2) of this section.  In the case of certificated securities   3,789        

the corporation may execute and deliver a certificate for or       3,790        

including a fraction of a share; or, in lieu thereof, may:         3,791        

      (1)  Pay to the person otherwise entitled to become a        3,793        

holder of a fraction of a share an amount in cash specified as     3,794        

the value thereof in the articles, a resolution of the directors,  3,795        

or other agreement or instrument pursuant to which such fraction   3,796        

of a share would otherwise be issued, or, if not so specified,     3,797        

then the amount determined for such purpose by the directors of    3,798        

the issuing corporation, or the amount realized upon sale of such  3,799        

fraction of a share;                                               3,800        

      (2)  Provide reasonable means to afford to such person the   3,802        

opportunity, on specified terms and conditions, to purchase or     3,803        

sell fractional interests in shares, to the exclusion of all       3,804        

rights he might otherwise have;                                    3,805        

      (3)  Execute and deliver registered or bearer scrip over     3,807        

the manual or facsimile signature of an officer of the             3,808        

corporation or of its agent for that purpose, exchangeable as      3,809        

therein provided for full shares, but such scrip shall not         3,810        

entitle the holder to any rights as a shareholder except as        3,811        

therein provided.  The scrip may provide that it shall become      3,812        

void unless the rights of the holders are exercised within a       3,813        

specified period and may contain any other provisions that the     3,814        

corporation deems advisable.  Whenever any such scrip ceases to    3,815        

be exchangeable for full shares, the shares that would otherwise   3,816        

have been issuable as therein provided shall be deemed to be       3,817        

treasury shares unless the scrip contains other provision for      3,818        

their disposition.                                                 3,819        

      (D)  A joint estate with the incidents of a joint estate as  3,821        

at common law, including the right of survivorship, may be         3,822        

created in shares by registering the same in the case of           3,823        

uncertificated securities, or by executing and delivering a        3,824        

certificate therefor in the case of certificated securities to     3,825        

two or more persons with the words "as joint tenants" or "as       3,826        

                                                          89     

                                                                 
joint tenants with right of survivorship and not as tenants in     3,827        

common" following their names.  Upon receipt by the corporation    3,828        

of proof satisfactory to it of the death of one or more of such    3,829        

joint tenants, it may register the transfer to, or execute and     3,830        

deliver a new certificate to the survivor or survivors.            3,831        

      (E)  Whenever a corporation has determined that any          3,833        

outstanding certificates for shares should be canceled and         3,834        

exchanged for other certificates, the corporation may order and    3,835        

require the holders of the outstanding certificates to surrender   3,836        

them for such purpose within a reasonable time to be fixed by the  3,837        

corporation.  Such order may provide that, until compliance        3,838        

therewith, any or all rights as a shareholder of the holder of     3,839        

any certificate so required to be surrendered shall be suspended   3,840        

with respect to the shares represented thereby.  Not less than     3,841        

ten days before any such order is to become effective, the         3,842        

corporation shall give notice thereof by mail to each shareholder  3,843        

affected thereby at his address as it appears on the records of    3,844        

the corporation.                                                   3,845        

      (F)  Unless otherwise provided by the articles or            3,847        

regulations, the directors may provide by resolution that some or  3,848        

all of any or all classes and series of shares of a corporation    3,849        

shall be uncertificated shares, provided that such resolution      3,850        

shall not apply to shares represented by a certificate until such  3,851        

certificate is surrendered to the corporation as provided in       3,852        

division (B) of section 1308.43 of the Revised Code, and that      3,853        

such resolution shall not apply to a certificated security issued  3,854        

in exchange for an uncertificated security as provided in          3,855        

division (C) of section 1308.43 of the Revised Code.  Within a     3,856        

reasonable time after the issuance or transfer of uncertificated   3,857        

shares, the corporation shall send to the registered owner         3,858        

thereof a written notice containing the information required to    3,859        

be set forth or stated on certificates pursuant to division (A)    3,860        

of section 1701.25 of the Revised Code.  Such notice may be        3,861        

contained in the statement required by section 1308.44 of the      3,862        

                                                          90     

                                                                 
Revised Code.  Except as otherwise expressly provided by law, the  3,863        

rights and obligations of the holders of uncertificated shares     3,864        

and the rights and obligations of the holders of certificates      3,865        

representing shares of the same class and series shall be          3,866        

identical.                                                         3,867        

      Sec. 1701.25.  (A)  Each certificate for shares of a         3,876        

corporation shall state:                                           3,877        

      (1)  That the corporation is organized under the laws of     3,879        

this state;                                                        3,880        

      (2)  The name of the person to whom the shares represented   3,882        

by the certificate are issued;                                     3,883        

      (3)  The number of shares represented by the certificate;    3,885        

      (4)  If the shares of the corporation are classified, the    3,887        

designation of the class, and the series, if any, of the shares    3,888        

represented by the certificate;                                    3,889        

      (5)  On the face or the back of the certificate:             3,891        

      (a)  The express terms, if any, of the shares represented    3,893        

by the certificate and of the other class or classes and series    3,894        

of shares, if any, which the corporation is authorized to issue;   3,895        

or                                                                 3,896        

      (b)  A summary of such express terms; or                     3,898        

      (c)  That the corporation will mail to the shareholder a     3,900        

copy of such express terms without charge within five days after   3,901        

receipt of written request therefor; or                            3,902        

      (d)  That a copy of such express terms is attached to and    3,904        

by reference made a part of such certificate and that the          3,905        

corporation will mail to the shareholder a copy of such express    3,906        

terms without charge within five days after receipt of written     3,907        

request therefor if the copy has become detached from the          3,908        

certificate.                                                       3,909        

      (B)  No restriction on the right to transfer shares and no   3,911        

reservation of lien on shares shall be effective against a         3,912        

transferee of such shares unless, as to uncertificated             3,913        

securities, there is set forth in the initial transaction          3,914        

                                                          91     

                                                                 
statement required for liens by section 1308.02 of the Revised     3,915        

Code, and for restrictions on transfer by THERE HAS BEEN           3,916        

COMPLIANCE WITH section 1308.11 of the Revised Code, and unless,   3,918        

as to certificated securities, there is set forth on the face or   3,919        

the back of the certificate therefor:                                           

      (1)  A statement of the terms of such restriction or         3,921        

reservation; or                                                    3,922        

      (2)  A summary of the terms of such restriction or           3,924        

reservation and a statement that the corporation will mail to the  3,925        

shareholder a copy of such restriction or reservation without      3,926        

charge within five days after receipt of written request           3,927        

therefor; or                                                       3,928        

      (3)  If such restriction or reservation is contained in the  3,930        

articles or regulations of the corporation, or in an instrument    3,931        

in writing to which the corporation is a party, a statement to     3,932        

that effect and a statement that the corporation will mail to the  3,933        

shareholder a copy of such restriction or reservation without      3,934        

charge within five days after receipt of written request           3,935        

therefor; or                                                       3,936        

      (4)  If such restriction or reservation is contained in an   3,938        

instrument in writing (other than the articles or regulations of   3,939        

the corporation or an instrument in writing to which the           3,940        

corporation is a party), a statement to that effect identifying    3,941        

the instrument by title, date, and parties.                        3,942        

      (C)  A corporation shall mail to a shareholder without       3,944        

charge within five days after receipt of written request therefor  3,945        

the copy or copies referred to in paragraphs (5)(c) and (5)(d) of  3,946        

division (A) and paragraphs (2) and (3) of division (B) of this    3,947        

section.                                                           3,948        

      Sec. 1701.27.  (A)  In case a certificate for shares is      3,957        

lost, stolen, or destroyed, the court of common pleas or the       3,958        

probate court of the county in which the principal office of the   3,959        

corporation is located shall have jurisdiction to hear and         3,960        

determine all questions respecting such loss, theft, or            3,961        

                                                          92     

                                                                 
destruction, the person interested therein, the bond required to                

be given to protect the corporation or any person injured by the   3,962        

execution and delivery of a new certificate, the terms on which a  3,963        

new certificate shall be executed and delivered, and the costs     3,964        

and counsel fees, if any, to be allowed to the corporation.        3,965        

      (B)  A corporation which voluntarily and in good faith       3,967        

executes and delivers a new certificate in lieu of one believed    3,968        

to have been lost, stolen, or destroyed, or which executes and     3,969        

delivers a new certificate in compliance with an order of a court  3,970        

of competent jurisdiction, may recognize the person named in the   3,971        

new certificate, or any certificate thereafter executed and                     

delivered in exchange or substitution for such new certificate,    3,972        

as the owner of the shares described therein for all purposes,     3,973        

until the owner of the original certificate, or a transferee       3,974        

thereof without notice and for value, enjoins the corporation and  3,975        

the holder of any new certificate, or any certificate executed                  

and delivered in exchange or substitution for such new             3,976        

certificate, from so acting.                                       3,977        

      (C)  Special provisions in sections 1308.01 to 1308.36,      3,979        

inclusive, of the Revised Code, (particularly section 1308.35      3,980        

1308.41 of the Revised Code) relating to the replacement of lost,  3,982        

apparently destroyed, or wrongfully taken securities shall govern  3,983        

to the exclusion of the provisions of this section on this                      

subject, except where it clearly appears that a special provision  3,984        

is cumulative, in which case it and the provisions of this         3,985        

section on the same subject shall apply.                           3,986        

      Sec. 1701.49.  (A)  By written agreement certificates for    3,995        

shares of a corporation may be deposited within or without this    3,996        

state by any holder or holders thereof with one or more persons    3,997        

as trustees, or with any depositary designated by or pursuant to   3,998        

such agreement to act for such trustees, for the purpose and with  3,999        

the effect of granting to such trustees or a majority of them, or  4,000        

to such persons as may be designated by or pursuant to such        4,001        

agreement, all the voting, consenting, or other rights in respect  4,002        

                                                          93     

                                                                 
of the shares represented by such certificates, or such of these   4,003        

rights as may be specified in the agreement, or for such other     4,004        

lawful purposes as may be specified in the agreement, for such     4,005        

period and upon such terms as may be stated therein.               4,006        

      In the case of uncertificated securities, the deposit of     4,008        

the shares may be accomplished by registration in the name of the  4,009        

trustee or trustees as provided in division (F) of this section.   4,010        

      (B)  No such agreement which grants the voting or            4,012        

consenting rights in respect of shares shall be irrevocable for a  4,013        

period of more than ten years, unless the voting or consenting     4,014        

rights granted thereby are coupled with an interest in the shares  4,015        

to which such rights relate, except that, if the agreement so      4,016        

provides, such irrevocable grant may be extended for additional    4,017        

periods of not more than ten years each, upon the affirmative      4,018        

vote or assent of the beneficial owners of not less than a         4,019        

majority of the shares deposited under the agreement.  Such        4,020        

rights shall be deemed coupled with an interest in the shares if   4,021        

granted in connection with:  an option, authority, or contract to  4,022        

buy or sell the shares or a part thereof; a pledge of the shares   4,023        

to secure the performance or nonperformance of any act; the        4,024        

performance or nonperformance of any act, or agreement for an      4,025        

act, by the corporation issuing the shares; or any other act or    4,026        

thing constituting an interest sufficient in law to support a      4,027        

power coupled therewith.                                           4,028        

      (C)  The trustees under the agreement may issue, or cause    4,030        

to be issued by their depositary or agent, voting trust            4,031        

certificates registered in the name of the owners thereof.  So     4,032        

far as consistent with the agreement and the voting trust          4,033        

certificates issued thereunder, the provisions of sections         4,034        

1308.01 to 1308.44 CHAPTER 1308., and of sections 1701.01 to       4,036        

1701.99 of the Revised Code, with respect to the transfer of       4,037        

certificates for shares shall apply to transfers of such voting    4,038        

trust certificates.                                                4,039        

      Voting trust certificates must be in certificated form, and  4,041        

                                                          94     

                                                                 
interests in a voting trust shall not be eligible for treatment    4,042        

as uncertificated securities.                                      4,043        

      (D)  The agreement may include any terms not repugnant to    4,045        

law, including provisions defining, limiting, or regulating the    4,046        

exercise of the authority, and the liability of, the trustees, or  4,047        

of such persons as are designated by or pursuant to any such       4,048        

agreement to exercise the voting, consenting, or other rights in   4,049        

respect of the deposited shares or to act as depositary            4,050        

thereunder.                                                        4,051        

      (E)  An executed counterpart of the agreement may be filed   4,053        

with the secretary of the corporation, and upon such filing shall  4,054        

be open to inspection by any shareholder at the office of the      4,055        

corporation at all reasonable times.                               4,056        

      (F)  The certificates for shares so deposited may be         4,058        

surrendered to and canceled by the issuing corporation, and if     4,059        

this is done new certificates therefor shall be issued by the      4,060        

corporation in the names of the trustees or of such persons as     4,061        

are designated by or pursuant to the agreement, as specified in a  4,062        

writing signed by the trustees and delivered to the issuing        4,063        

corporation.  The new certificates shall be delivered to the       4,064        

trustees, or to any depositary, as the trustees may direct.  The   4,065        

new certificates shall be issued in such manner that it shall      4,066        

appear that they are issued pursuant to the agreement, and in the  4,067        

entry of ownership in the proper books of the corporation that     4,068        

fact shall also be noted.                                          4,069        

      If the corporation has elected to issue uncertificated       4,071        

securities, shares in uncertificated form may be deposited, with   4,072        

the effect provided by division (A) of this section, by            4,073        

registration in the name of the trustee or trustees or of such     4,074        

persons as are designated by or pursuant to the agreement, in      4,075        

accordance with sections 1308.01 to 1308.44 CHAPTER 1308. of the   4,077        

Revised Code.                                                                   

      (G)  Shares issued by a foreign corporation may be made the  4,079        

subject of an agreement under this section.                        4,080        

                                                          95     

                                                                 
      (H)  The rights conferred by this section are in addition    4,082        

to rights at common law, and no limitation established by this     4,083        

section shall limit rights at common law.                          4,084        

      (I)  Any such agreement shall be conclusively deemed to      4,086        

have been made under the common law, and not under this section,   4,087        

if the agreement so states.                                        4,088        

      Sec. 1701.591.  (A)  In order to qualify as a close          4,097        

corporation agreement under this section, the agreement shall      4,098        

meet the following requirements:                                   4,099        

      (1)  Every person who is a shareholder of the corporation    4,101        

at the time of the agreement's adoption, whether or not entitled   4,102        

to vote, shall have assented to the agreement in writing;          4,103        

      (2)  The agreement shall be set forth in the articles, the   4,105        

regulations, or another written instrument;                        4,106        

      (3)  The agreement shall include a statement that it is to   4,108        

be governed by this section.                                       4,109        

      (B)  A close corporation agreement that is not set forth in  4,111        

the articles or the regulations shall be entered in the record of  4,112        

minutes of the proceedings of the shareholders of the corporation  4,113        

and shall be subject to the provisions of division (C) of section  4,114        

1701.92 of the Revised Code.                                       4,115        

      (C)  Irrespective of any other provisions of this chapter,   4,117        

but subject to division (D)(2) of this section, a close            4,118        

corporation agreement may contain provisions, which shall be       4,119        

binding on the corporation and all of its shareholders,            4,120        

regulating any aspect of the internal affairs of the corporation   4,121        

or the relations of the shareholders among themselves, including   4,122        

the following:                                                     4,123        

      (1)  Regulation of the management of the business and        4,125        

affairs of the corporation;                                        4,126        

      (2)  The right of one or more shareholders to dissolve the   4,128        

corporation at will or on the occurrence of a specified event or   4,129        

contingency;                                                       4,130        

      (3)  The obligation to vote the shares of a person as        4,132        

                                                          96     

                                                                 
specified, or voting requirements, including the requirement of    4,133        

the affirmative vote or approval of all shareholders or of all     4,134        

directors, which voting requirements need not appear in the        4,135        

articles unless the close corporation agreement is set forth in    4,136        

the articles;                                                      4,137        

      (4)  The designation of the persons who shall be the         4,139        

officers or directors of the corporation;                          4,140        

      (5)  The authority of any individual who holds more than     4,142        

one office of the corporation to execute, acknowledge, or certify  4,143        

in more than one capacity any instrument required to be executed,  4,144        

acknowledged, or certified by the holders of two or more offices;  4,145        

      (6)  The terms and conditions of employment of an officer    4,147        

or employee of the corporation without regard to the period of     4,148        

his employment;                                                    4,149        

      (7)  The declaration and payment of dividends or             4,151        

distributions or the division of profits;                          4,152        

      (8)  Elimination of the board of directors, restrictions     4,154        

upon the exercise by directors of their authority, or delegation   4,155        

to one or more shareholders or other persons of all or part of     4,156        

the authority of the directors;                                    4,157        

      (9)  Conferring on any shareholder or his agent OF A         4,159        

SHAREHOLDER the absolute right, without the necessity of stating   4,160        

any purpose, to examine and copy during usual business hours any   4,161        

of the corporation's records or documents to which reference is    4,162        

made in section 1701.37 of the Revised Code;                       4,163        

      (10)  Prohibition of or limitation upon the issuance or      4,165        

sale by the corporation of any of its shares, including treasury   4,166        

shares, without the affirmative vote or approval of the holders    4,167        

of all or a proportion of the outstanding shares or unless other   4,168        

specified terms and conditions are met;                            4,169        

      (11)  Arbitration of issues on which the shareholders are    4,171        

deadlocked in voting power or on which the directors or other      4,172        

parties managing the corporation are deadlocked;                   4,173        

      (12)  Dispensing with the annual meeting of shareholders     4,175        

                                                          97     

                                                                 
unless a shareholder, by written notice to the president or        4,176        

secretary either by personal delivery or by mail within thirty     4,177        

days after the end of the most recent fiscal year of the           4,178        

corporation, requests that the meeting be held.                    4,179        

      (D)  Except as may be necessary to give effect to divisions  4,181        

(C)(3), (5), (8), (9), and (12) and division (I) of this section,  4,182        

any provision of a close corporation agreement that does either    4,183        

of the following shall be invalid:                                 4,184        

      (1)  Eliminates the filing with the secretary of state of    4,186        

any document required under this chapter or changes the required   4,187        

form or content of the document;                                   4,188        

      (2)  Waives or alters the effect of any of the provisions    4,190        

of section 1701.03, 1701.18, 1701.24, 1701.25, 1701.30, 1701.31,   4,191        

1701.32, 1701.33, 1701.35, 1701.37, 1701.38, 1701.39, 1701.591,    4,192        

1701.91, 1701.93, 1701.94, 1701.95, or the first sentence of       4,193        

section 1701.64 of the Revised Code.                               4,194        

      Unless otherwise provided in the close corporation           4,196        

agreement, the invalidity of a provision pursuant to this          4,197        

division does not affect the validity of the remainder of the      4,198        

agreement.                                                         4,199        

      Any certificate that is required to be filed with the        4,201        

secretary of state with respect to the authorization or taking of  4,202        

any action pursuant to a close corporation agreement that would    4,203        

not be permitted under this chapter in the absence of division     4,204        

(C) of this section shall recite the existence of a close          4,205        

corporation agreement that authorizes the action.                  4,206        

      (E)(1)  Except as provided in division (E)(2) of this        4,208        

section, a close corporation agreement may be amended or           4,209        

terminated by the affirmative vote or written consent of the       4,210        

holders, then parties to the close corporation agreement, of all   4,211        

of the outstanding shares of each class or, as may be provided by  4,212        

the close corporation agreement, of the holders, then parties to   4,213        

the close corporation agreement, of a proportion of not less than  4,214        

four-fifths of the outstanding shares of each class.  If a close   4,215        

                                                          98     

                                                                 
corporation agreement is amended or terminated by the written      4,216        

consent of the holders of fewer than all of the shares, the        4,217        

secretary of the corporation shall mail a copy of the amendment    4,218        

or a notice of the termination to each shareholder who did not so  4,219        

consent.  If a close corporation agreement set forth in the        4,220        

articles is amended, the amendment shall not be effective unless   4,221        

it is filed as an amendment to the articles pursuant to section    4,222        

1701.73 of the Revised Code.  No corporation with respect to       4,223        

which a close corporation agreement is in effect shall cause to    4,224        

occur any of the actions described in division (I)(1)(a), (b), or  4,225        

(c) of this section unless the action has been authorized by the   4,226        

affirmative vote or written consent of the holders, then parties   4,227        

to the close corporation agreement, of that proportion of shares   4,228        

of each class that is required to terminate the close corporation  4,229        

agreement.                                                         4,230        

      (2)  A close corporation agreement that was in existence on  4,232        

December 31, 1993, and that did not specify on that date and that  4,233        

has not specified since that date the proportion of shares         4,234        

required to amend or terminate the close corporation agreement     4,235        

may be amended or terminated by the affirmative vote or written    4,236        

consent of the holders, then parties to the close corporation      4,237        

agreement, of four-fifths of the outstanding shares of each        4,238        

class.                                                             4,239        

      (F)  No close corporation agreement is invalid among the     4,241        

parties or in respect of the corporation on any of the following   4,242        

grounds:                                                           4,243        

      (1)  The agreement is an attempt to treat the corporation    4,245        

as if it were a partnership or to arrange the relationship of the  4,246        

parties in a manner that would be appropriate only among           4,247        

partners;                                                          4,248        

      (2)  The agreement provides for the conduct of the affairs   4,250        

of a corporation or relations among shareholders in any manner     4,251        

that would be inappropriate or unlawful under provisions of this   4,252        

chapter other than those set forth in division (D)(2) of this      4,253        

                                                          99     

                                                                 
section or under other applicable law;                             4,254        

      (3)  The agreement interferes with the authority or          4,256        

discretion of the directors;                                       4,257        

      (4)  The agreement has not been filed with the minutes as    4,259        

required by division (B) of this section.                          4,260        

      (G)  If a close corporation agreement provides that there    4,262        

shall be no board of directors, both of the following apply:       4,263        

      (1)  The shareholders, for the purposes of any statute or    4,265        

rule of law relating to corporations, are deemed to be the         4,266        

directors and to have all of the liabilities, immunities,          4,267        

defenses, and indemnifications of directors with respect to any    4,268        

action or inaction of the corporation, except that any             4,269        

shareholder who is not permitted by the articles, the              4,270        

regulations, or the close corporation agreement to vote on or      4,271        

assent to an action or assent to an inaction shall not be liable   4,272        

as a director with respect to the action or inaction.              4,273        

      (2)  Except to the extent that the voting rights of the      4,275        

shares of a class are increased, limited, or denied by the         4,276        

articles, the regulations, or the close corporation agreement,     4,277        

each outstanding share regardless of class shall entitle its       4,278        

holder to one vote on each matter, including any matter normally   4,279        

voted on by directors, that is properly submitted to the           4,280        

shareholders for their vote, consent, waiver, release, or other    4,281        

action.                                                            4,282        

      (H)  The existence of a close corporation agreement shall    4,284        

be noted conspicuously on the face or the back of every            4,285        

certificate for shares of the corporation and a purchaser or       4,286        

transferee of shares represented by a certificate on which such a  4,287        

notation so appears shall be conclusively considered to have       4,288        

taken delivery with notice of the close corporation agreement.     4,289        

Any transferee of shares by gift, bequest, or inheritance and any  4,290        

purchaser or transferee of shares with knowledge or notice of a    4,291        

close corporation agreement is bound by the agreement and shall    4,292        

be considered to be a party to the agreement.                      4,293        

                                                          100    

                                                                 
      (I)(1)  A close corporation agreement becomes invalid under  4,295        

any of the following circumstances:                                4,296        

      (a)  Shares of the corporation are listed on a national      4,298        

securities exchange.                                               4,299        

      (b)  Shares of the corporation are registered under section  4,301        

12(g) of the "Securities Exchange Act of 1934," 48 Stat. 892, 15   4,302        

U.S.C. 781, as amended.                                            4,303        

      (c)  Shares of the corporation have been included in a       4,305        

registration statement that has become effective pursuant to the   4,306        

"Securities Act of 1933," 84 Stat. 74, 15 U.S.C. 77a-77aa, and     4,307        

the corporation is required to file periodic reports and           4,308        

information pursuant to section 15(d) of the "Securities Exchange  4,309        

Act of 1934," 48 Stat. 892, 15 U.S.C. 77m, as amended.             4,310        

      (d)  Shares of the corporation are transferred or issued to  4,312        

a person who takes delivery of the certificate for the shares      4,313        

other than by gift, bequest, or inheritance and without knowledge  4,314        

or notice of the close corporation agreement; that person          4,315        

delivers to the corporation a written rejection of the close       4,316        

corporation agreement within ninety days after the date on which   4,317        

that person first received notice of the existence of the close    4,318        

corporation agreement or within three years of the date of         4,319        

transfer or issuance, whichever is earlier; and the corporation    4,320        

does not offer in writing, within thirty days after the date on    4,321        

which the corporation received the written rejection, to purchase  4,322        

the shares from that person for the full amount paid for the       4,323        

shares, or, having made an offer to purchase the shares for that   4,324        

amount, the corporation, upon that person's acceptance of the      4,325        

offer, does not purchase the shares in accordance with division    4,326        

(I)(3) of this section.                                            4,327        

      (2)  A close corporation agreement does not become invalid   4,329        

and the person to whom the shares are transferred or issued is     4,330        

not entitled to any payment from the corporation pursuant to       4,331        

division (I)(3) of this section if both of the following apply:    4,332        

      (a)  Shares of the corporation are transferred or issued to  4,334        

                                                          101    

                                                                 
a person who takes delivery of the certificate for the shares      4,335        

other than by gift, bequest, or inheritance and without knowledge  4,336        

or notice of the close corporation agreement;                      4,337        

      (b)  That person does either of the following:               4,339        

      (i)  Fails to deliver a written rejection of the close       4,341        

corporation agreement to the corporation within ninety days after  4,342        

the date on which that person first received notice of the         4,343        

existence of the close corporation agreement or within three       4,344        

years of the date of transfer or issuance, whichever is earlier;   4,345        

      (ii)  Fails, within thirty days after the date on which      4,347        

that person receives a written offer by the corporation to         4,348        

purchase the shares from that person for the full amount paid for  4,349        

the shares, to accept the offer.                                   4,350        

      (3)  If shares of a corporation are transferred or issued    4,352        

to a person who takes delivery of the certificate for the shares   4,353        

other than by gift, bequest, or inheritance and without knowledge  4,354        

or notice of the close corporation agreement and that person       4,355        

accepts an offer by the corporation to purchase the shares, the    4,356        

corporation shall pay to that person the full amount paid for the  4,357        

shares within seven days after that person delivers to the         4,358        

corporation the certificate for the shares and proof of payment    4,359        

of the amount paid for the shares.  If the amount paid for the     4,360        

shares included property other than cash, the corporation, at its  4,361        

option, may return the property to that person or may pay to that  4,362        

person cash in an amount equal to the fair market value of the     4,363        

property on the date of transfer or issuance of the shares, as     4,364        

determined in good faith by the corporation.  A shareholder who    4,365        

transfers shares to a person who takes delivery of the             4,366        

certificate for the shares other than by gift, bequest, or         4,367        

inheritance and without knowledge or notice of the close           4,368        

corporation agreement is liable to the corporation, upon the       4,369        

corporation's written demand made upon the shareholder within      4,370        

ninety days after the date on which the corporation made payment   4,371        

for the shares, for the full amount that the corporation paid for  4,372        

                                                          102    

                                                                 
the shares.  Upon receiving payment in that amount from the        4,373        

shareholder, the corporation shall transfer the shares to the      4,374        

shareholder.                                                       4,375        

      (4)  In the event of the invalidity of a close corporation   4,377        

agreement and unless otherwise provided in the close corporation   4,378        

agreement, any provision contained in the close corporation        4,379        

agreement that would not be invalid under any other section of     4,380        

this chapter or under other applicable law remains valid and       4,381        

binding on the parties to the close corporation agreement.         4,382        

      Any officer of the corporation who learns of the occurrence  4,384        

of any event causing the invalidity of the close corporation       4,385        

agreement shall immediately give written notice of the invalidity  4,386        

to all of the shareholders.                                        4,387        

      If a close corporation agreement set forth in the articles   4,389        

of the corporation is terminated or becomes invalid, the officers  4,390        

of the corporation shall promptly sign and file the certificate    4,391        

of amendment prescribed by section 1701.73 of the Revised Code,    4,392        

setting forth the reason for the termination or invalidity and     4,393        

deleting the close corporation agreement from the articles.  If    4,394        

the officers fail to execute and file the certificate within       4,395        

thirty days after the occurrence of the event giving rise to the   4,396        

termination or invalidity, the certificate may be signed and       4,397        

filed by any shareholder and shall set forth a statement that the  4,398        

person signing the certificate is a shareholder and is filing the  4,399        

certificate because of the failure of the officers to do so.       4,400        

      (J)  A close corporation agreement, in the sound discretion  4,402        

of a court exercising its equity powers, is enforceable by         4,403        

injunction, specific performance, or other relief that the court   4,404        

may determine to be fair and appropriate.                          4,405        

      (K)  This section shall not be construed as prohibiting any  4,407        

other lawful agreement among two or more shareholders.             4,408        

      (L)  No corporation with respect to which a close            4,410        

corporation agreement is in effect, shall issue shares in          4,411        

uncertificated form, and any resolution of the directors of such   4,412        

                                                          103    

                                                                 
a corporation, providing for the issuance of shares in             4,413        

uncertificated form, shall be ineffective during any period in     4,414        

which a close corporation agreement is in effect.  The adoption    4,415        

of a close corporation agreement shall act as a transfer           4,416        

instruction to the corporation to replace uncertificated           4,417        

securities with appropriate certificated securities in accordance  4,418        

with division (C) of section 1308.43 of the Revised Code.          4,419        

      (M)  If the annual meeting of the shareholders is dispensed  4,421        

with in accordance with a provision in the close corporation       4,422        

agreement authorized by division (C)(12) of this section, the      4,423        

annual financial statements required by section 1701.38 of the     4,424        

Revised Code shall be delivered to each shareholder on or before   4,425        

the last date upon which the annual meeting otherwise could have   4,426        

been held.                                                         4,427        

      (N)  The amendments to this section that are effective       4,429        

April 4, 1985, are remedial in nature and apply to all close       4,430        

corporation agreements created on or after November 17, 1981. The  4,432        

amendments to this section that are effective December 31, 1993,   4,433        

are remedial in nature and, except as those amendments otherwise   4,434        

provide, apply to all close corporation agreements created on or   4,435        

after November 17, 1981.                                                        

      Sec. 1701.831.  (A)  Unless the articles or the regulations  4,444        

of the issuing public corporation provide that this section does   4,445        

not apply to control share acquisitions of shares of such          4,446        

corporation, any control share acquisition of an issuing public    4,447        

corporation shall be made only with the prior authorization of     4,448        

the shareholders of such corporation in accordance with this       4,449        

section.                                                           4,450        

      (B)  Any person who proposes to make a control share         4,452        

acquisition shall deliver an acquiring person statement to the     4,453        

issuing public corporation at the issuing public corporation's     4,454        

principal executive offices.  Such acquiring person statement      4,455        

shall set forth all of the following:                              4,456        

      (1)  The identity of the acquiring person;                   4,458        

                                                          104    

                                                                 
      (2)  A statement that the acquiring person statement is      4,460        

given pursuant to this section;                                    4,461        

      (3)  The number of shares of the issuing public corporation  4,463        

owned, directly or indirectly, by the acquiring person;            4,464        

      (4)  The range of voting power, described in division        4,466        

(Z)(1)(a), (b), or (c) of section 1701.01 of the Revised Code,     4,467        

under which the proposed control share acquisition would, if       4,468        

consummated, fall;                                                 4,469        

      (5)  A description in reasonable detail of the terms of the  4,471        

proposed control share acquisition;                                4,472        

      (6)  Representations of the acquiring person, together with  4,474        

a statement in reasonable detail of the facts upon which they are  4,475        

based, that the proposed control share acquisition, if             4,476        

consummated, will not be contrary to law, and that the acquiring   4,477        

person has the financial capacity to make the proposed control     4,478        

share acquisition.                                                 4,479        

      (C)  Within ten days after receipt of an acquiring person    4,481        

statement that complies with division (B) of this section, the     4,482        

directors of the issuing public corporation shall call a special   4,483        

meeting of shareholders of the issuing public corporation for the  4,484        

purpose of voting on the proposed control share acquisition.       4,485        

Unless the acquiring person agrees in writing to another date,     4,486        

such special meeting of shareholders shall be held within fifty    4,487        

days after receipt by the issuing public corporation of the        4,488        

acquiring person statement.  If the acquiring person so requests   4,489        

in writing at the time of delivery of the acquiring person         4,490        

statement, such special meetings shall be held no sooner than      4,491        

thirty days after receipt by the issuing public corporation of     4,492        

the acquiring person statement.  Such special meeting of           4,493        

shareholders shall be held no later than any other special         4,494        

meeting of shareholders that is called, after receipt by the       4,495        

issuing public corporation of the acquiring person statement, in   4,496        

compliance with section 1701.76, 1701.78, 1701.79, 1701.83, or     4,497        

1701.831 of the Revised Code.                                      4,498        

                                                          105    

                                                                 
      (D)  Notice of the special meeting of shareholders shall be  4,500        

given as promptly as reasonably practicable by the issuing public  4,501        

corporation to all shareholders of record as of the record date    4,502        

set for such meeting, whether or not entitled to vote thereat.     4,503        

Such notice shall include or be accompanied by both of the         4,504        

following:                                                         4,505        

      (1)  A copy of the acquiring person statement delivered to   4,507        

the issuing public corporation pursuant to this section;           4,508        

      (2)  A statement by the issuing public corporation,          4,510        

authorized by its directors, of its position or recommendation,    4,511        

or that it is taking no position or making no recommendation,      4,512        

with respect to the proposed control share acquisition.            4,513        

      (E)  The acquiring person may make the proposed control      4,515        

share acquisition if both of the following occur:                  4,516        

      (1)  The shareholders of the issuing public corporation who  4,518        

hold shares AS OF THE RECORD DATE of such corporation entitling    4,519        

them to vote in the election of directors authorize such THE       4,521        

acquisition at the special meeting held for that purpose at which  4,523        

a quorum is present by an affirmative vote of a majority of the    4,524        

voting power of such corporation in the election of directors      4,525        

represented at such THE meeting in person or by proxy, and a       4,526        

majority of the portion of such THE voting power excluding the     4,527        

voting power of interested shares REPRESENTED AT THE MEETING IN    4,528        

PERSON OR BY PROXY.  A quorum shall be deemed to be present at     4,529        

such THE special meeting if at least a majority of the voting      4,530        

power of the issuing public corporation in the election of         4,531        

directors, and a majority of the portion of such voting power      4,532        

excluding the voting power of interested shares are IS             4,533        

represented at such THE meeting in person or by proxy.             4,534        

      (2)  Such THE acquisition is consummated, in accordance      4,536        

with the terms so authorized, no later than three hundred sixty    4,537        

days following shareholder authorization of the control share      4,538        

acquisition.                                                       4,539        

      (F)  Except as expressly improved PROVIDED in this section,  4,541        

                                                          106    

                                                                 
nothing in this section shall be construed to affect or impair     4,542        

any right, remedy, obligation, duty, power, or authority of any    4,543        

acquiring person, any issuing public corporation, the directors    4,544        

of any acquiring person or issuing public corporation, or any      4,545        

other person under the laws of this or any other state or of the   4,546        

United States.                                                     4,547        

      (G)  If any application of any provision of this section is  4,549        

for any reason held to be illegal or invalid, the illegality or    4,550        

invalidity shall not affect any legal and valid provision or       4,551        

application of this section, and the parts and applications of     4,552        

this section are severable.                                        4,553        

      Sec. 1701.832.  (A)  In enacting Amended Substitute House    4,562        

Bill No. 822 of the 114th general assembly, which amended          4,563        

sections 1701.01, 1701.11, 1701.37, 1701.48, 1707.01, 1707.23,     4,564        

1707.26, 1707.29, and 1707.99 and enacted sections 1701.831 and    4,565        

1707.042 of the Revised Code, the general assembly found and       4,566        

continues to find that:                                            4,567        

      (1)  Existing Ohio corporate law was designed to deal with   4,569        

traditional methods of transfer of control of Ohio corporations.   4,570        

The tender offer has evolved as an alternative device to acquire   4,571        

control of a public corporation that has been in widespread use    4,572        

in the past several decades.  The acquisition of significant       4,573        

blocks of the securities of a public company in the open market    4,574        

or private transactions in connection with actual or apparent      4,575        

efforts to acquire control has become more common in recent years  4,576        

and has further complicated the impact of tender offers upon a     4,577        

corporation and its shareholders.  Numerous Ohio corporations      4,578        

have been the subject of tender offers and accumulations of        4,579        

significant blocks of securities.                                  4,580        

      (2)  The accumulation of a large block of a corporation's    4,582        

voting shares, or other securities convertible into voting         4,583        

shares, through direct or indirect acquisition from one or more    4,584        

existing shareholders of the corporation has not been subject to   4,585        

the normal corporate approval mechanisms involved in other         4,586        

                                                          107    

                                                                 
typical types of acquisition transactions such as mergers,         4,587        

consolidations, combinations, and majority share acquisitions.     4,588        

Such accumulations, however, can result in shifts of effective     4,589        

corporate control and hence, from a business and financial         4,590        

perspective, directly or indirectly, can result in significant     4,591        

changes in a variety of basic corporate circumstances identical    4,592        

or substantially similar to those arising as a result of the       4,593        

above-mentioned transactions.  For instance, a change in           4,594        

corporate control accompanying a large accumulation of shares      4,595        

will very often result in a fundamental change in the ongoing      4,596        

business of the corporation and a concomitant fundamental change   4,597        

in the nature of the shareholders' investment in it.  Thus the     4,598        

potential that such changes in corporate circumstances will occur  4,599        

gives rise to basic issues concerning the internal affairs of the  4,600        

corporation typical of those arising in mergers, consolidations,   4,601        

combinations, and majority share acquisitions.  The form of the    4,602        

transaction in which such issues arise should not alter the basic  4,603        

corporate mechanisms by which such issues are presented and        4,604        

resolved.                                                          4,605        

      (3)  Tender offers almost always involve a change in         4,607        

corporate control and, therefore, give rise to these same basic    4,608        

issues concerning internal corporate affairs.  Although tender     4,609        

offers in theory offer shareholders the opportunity to consider    4,610        

such issues in deciding whether or not to tender their shares, in  4,611        

practice they do not.  Tender offers are coercive in the sense     4,612        

that shareholders are normally concerned that a majority of their  4,613        

fellow shareholders will tender their shares, leaving them in a    4,614        

minority position with one controlling shareholder.  Thus,         4,615        

shareholders often feel compelled to tender their shares,          4,616        

regardless of how they feel about the corporate control issues     4,617        

inherent in any tender offer.  The opportunity for reasoned        4,618        

decision-making is further hindered by the short time periods in   4,619        

which tender offers can be consummated, the structures of many     4,620        

recent tender offers, which are designed to encourage prompt       4,621        

                                                          108    

                                                                 
tenders, and the fact that individual shareholders typically       4,622        

receive or obtain tender offer materials much later than           4,623        

institutional shareholders.                                        4,624        

      (4)  It is in the public interest for shareholders to have   4,626        

a reasonable opportunity to express their views by voting on a     4,627        

proposed shift of control, an opportunity currently available      4,628        

under Ohio GENERAL corporation law, CHAPTER 1701. OF THE REVISED   4,630        

CODE, in transactions with similar effects.  The general assembly               

also believes that it is in the public interest for Ohio           4,632        

securities laws, CHAPTER 1707. OF THE REVISED CODE, to provide     4,633        

evenhanded protection of offerors and shareholders from            4,634        

fraudulent and manipulative transactions arising in connection     4,635        

with control acquisitions.                                         4,636        

      (5)  Initial state efforts to deal with tender offer         4,638        

developments have been questioned by the federal courts.  The      4,639        

general assembly observes that responsibility for general          4,640        

corporate laws is the function of state legislation and that no    4,641        

federal law of corporations exists.  The general assembly          4,642        

observes that securities law protection of state residents has     4,643        

long been recognized as an appropriate subject of state law        4,644        

regulation under the federal system.  The general assembly         4,645        

acknowledges an in loco parentis responsibility to shareholders    4,646        

who invest in corporations created under the laws of Ohio and to   4,647        

shareholders generally who reside in Ohio.                         4,648        

      (B)  Sections 1701.01, 1701.11, 1701.37, 1701.48, 1707.01,   4,650        

1707.23, 1707.26, 1707.29, and 1707.99, as amended by Amended      4,651        

Substitute House Bill No. 822 of the 114th general assembly, and   4,652        

sections 1701.831 and 1707.042, as enacted by that act, were a     4,653        

recognition of the state's responsibility with respect to the      4,654        

subject matter of the act.  Nevertheless, with a view to avoiding  4,655        

an undue burden on interstate commerce, as expressed in recent     4,656        

court decisions, the amendments were designed to have the minimum  4,657        

impact upon interstate commerce consistent with Ohio               4,658        

responsibility in respect to the subject matter.  Accordingly,     4,659        

                                                          109    

                                                                 
the security law amendments made by that act to sections 1707.23,  4,660        

1707.26, 1707.29, and 1707.99 and in newly enacted section         4,661        

1707.042 of the Revised Code were limited to application to Ohio   4,662        

resident investors, and the corporate law amendments made by that  4,663        

act to sections 1701.01, 1701.11, 1701.37, and 1701.48 and in      4,664        

newly enacted section 1701.831 of the Revised Code were limited    4,665        

to corporations created under the laws of Ohio with the strong     4,666        

Ohio ties provided in the amendments.  The corporate legislation   4,667        

does not include a requirement for Ohio resident investors         4,668        

because of the difficulty of ascertainment by potential acquirers  4,669        

and others of the residence of shareholders.  The general          4,670        

assembly finds that corporations satisfying the jurisdictional     4,671        

nexus provided by the amendments may be deemed to have a           4,672        

substantial and significant shareholder base in the state.         4,673        

      (C)  The general assembly confirms all of the findings of    4,675        

this section as enacted by Amended Substitute House Bill No. 822   4,676        

of the 114th general assembly, except that the general assembly    4,677        

declares that, from the effective date of this amendment,          4,679        

NOVEMBER 2, 1989, and the concurrent amendment of section 1701.11  4,680        

of the Revised Code by the addition of division (B)(9)(a)(ii) to   4,681        

that section, the standards of that division are permitted, as an  4,682        

alternative to the ties with Ohio essential to the status of a     4,683        

control share acquisition, to qualify for the authorized           4,684        

restrictions on transfer of shares.  The general assembly further  4,685        

finds that the omission of a reference to "1701.01" immediately    4,686        

following the phrase "the corporate law amendments in sections"    4,687        

in the enactment of division (B) of this section was inadvertent.  4,688        

      (D)  THE GENERAL ASSEMBLY CONFIRMS ALL OF THE FINDINGS OF    4,691        

THIS SECTION AS ENACTED BY AMENDED SUBSTITUTE HOUSE BILL NO. 822   4,693        

OF THE 114th GENERAL ASSEMBLY, AND AS AMENDED BY AMENDED           4,694        

SUBSTITUTE HOUSE BILL NO. 358 OF THE 118th GENERAL ASSEMBLY, AND   4,695        

FURTHER FINDS ALL OF THE FOLLOWING:                                4,696        

      (1)  ALTHOUGH OHIO GENERAL CORPORATION LAW, CHAPTER 1701.    4,699        

OF THE REVISED CODE, REQUIRES THAT A SPECIAL MEETING BE HELD TO    4,701        

                                                          110    

                                                                 
ENABLE SHAREHOLDERS OF AN ISSUING PUBLIC CORPORATION TO VOTE ON    4,702        

ANY CONTROL SHARE ACQUISITION, IT DESCRIBES MEETING PROCEDURES,    4,703        

LIKE OTHER STATES, PRIMARILY IN GENERAL TERMS.                     4,704        

      (2)  WHERE THE LAW, OR THE ARTICLES OF INCORPORATION AND     4,706        

CODE OF REGULATIONS OF THE ISSUING PUBLIC CORPORATION, DO NOT      4,707        

MANDATE SPECIFIC MEETING PROCEDURES, THE DIRECTORS OF THE          4,708        

CORPORATION MUST DEFINE APPROPRIATE PROCEDURES CONSISTENT WITH     4,710        

THEIR FIDUCIARY DUTIES AS PROVIDED IN SECTION 1701.59 OF THE       4,711        

REVISED CODE.  IN CARRYING OUT THESE DUTIES, PRACTICES AND         4,713        

PROCEDURES HAVE DEVELOPED FROM EXPERIENCE IN THIS STATE AND        4,714        

ELSEWHERE TO ENSURE FAIR AND EFFICIENT MEETINGS.  THESE PRACTICES  4,715        

AND PROCEDURES INCLUDE THE USE OF A VARIETY AND NUMBER OF          4,716        

PRESUMPTIONS AND FORMS OF PROXY.                                                

      (3)  THE USE OF PRESUMPTIONS AND FORMS OF PROXY REFLECTS     4,718        

THE FACT THAT, IN THIS STATE AND OTHER STATES WITH SIMILAR LAWS,   4,719        

EFFICIENCY AND FINALITY ARE NECESSARY PRIORITIES OVER PRECISION    4,720        

AND CERTITUDE IN THE CONDUCT OF A MEETING.  IT IS THE              4,721        

RESPONSIBILITY OF THE DIRECTORS TO UTILIZE PRACTICES AND           4,722        

PROCEDURES, INCLUDING PRESUMPTIONS AND FORMS OF PROXY, THAT ARE    4,723        

CONSISTENT WITH THEIR FIDUCIARY DUTIES.                            4,724        

      Sec. 1705.01.  As used in this chapter:                      4,733        

      (A)  "Business" means every trade, occupation, or            4,735        

profession.                                                        4,736        

      (B)  "Contribution" means any cash, property, services       4,738        

rendered, promissory note, or other binding obligation to          4,739        

contribute cash or property or to perform services that a member   4,740        

contributes to a limited liability company in his THE capacity as  4,742        

a member.                                                          4,743        

      (C)  "Conveyance" means every assignment, lease, mortgage,   4,745        

or encumbrance.                                                    4,746        

      (D)  "Entity" means any of the following:                    4,748        

      (1)  A for profit corporation existing under the laws of     4,750        

this state or any other state;                                     4,751        

      (2)  Any of the following organizations existing under the   4,753        

                                                          111    

                                                                 
laws of this state, the United States, or any other state:         4,754        

      (a)  A business trust or association;                        4,756        

      (b)  A real estate investment trust;                         4,758        

      (c)  A common law trust;                                     4,760        

      (d)  An unincorporated business or for profit organization,  4,762        

including a general or limited partnership;                        4,763        

      (e)  A limited liability company.                            4,765        

      (E)  "Incompetent" has the same meaning as in section        4,767        

2111.01 of the Revised Code.                                       4,768        

      (F)  "Knowledge," of a fact, means actual knowledge of that  4,770        

fact and knowledge of other facts that under the circumstances     4,771        

shows bad faith.                                                   4,772        

      (G)  "Member" means a person whose name appears on the       4,774        

records of the limited liability company as the owner of a         4,775        

membership interest in that company.                               4,776        

      (H)  "Membership interest" means a member's share of the     4,778        

profits and losses of a limited liability company and the right    4,779        

to receive distributions from that company.                        4,780        

      (I)  "Notice" means that the person who claims the benefit   4,782        

of the notice has done one of the following:                       4,783        

      (1)  Stated the fact to the person entitled to notice;       4,785        

      (2)  Delivered through the mail or by other means of         4,787        

communication a written statement of the fact to the person        4,788        

entitled to notice or to a proper person at the place of business  4,789        

or residence of the person entitled to receive a notice.           4,790        

      (J)  "Operating agreement" means all of the valid written    4,792        

or oral agreements of the members OR, IN THE CASE OF A LIMITED     4,793        

LIABILITY COMPANY CONSISTING OF ONE MEMBER, A WRITTEN DECLARATION  4,794        

OF THAT MEMBER, as to the affairs of a limited liability company   4,796        

and the conduct of its business.                                                

      (K)  "Person" means any natural person; partnership,         4,798        

limited partnership, trust, estate, association, limited           4,799        

liability company, or corporation; any custodian, nominee,         4,800        

trustee, executor, administrator, or other fiduciary; or any       4,801        

                                                          112    

                                                                 
other individual or entity in its own or any representative        4,802        

capacity.                                                          4,803        

      (L)  "Professional association" and "professional service"   4,805        

have the same meanings as in section 1785.01 of the Revised Code.  4,806        

      (M)  "State" has the same meaning as in section 1.59 of the  4,808        

Revised Code and additionally includes a foreign country and any   4,809        

province, territory, or other political subdivision of a foreign   4,810        

country.                                                           4,811        

      Sec. 1705.04.  (A)  Two ONE or more persons, without regard  4,820        

to residence, domicile, or state of organization, may form a       4,821        

limited liability company.  The entity is formed when one or more  4,823        

persons or their authorized representative signs and files with    4,824        

the secretary of state articles of organization that set forth     4,825        

all of the following:                                              4,826        

      (1)  The name of the company;                                4,828        

      (2)  Except as provided in division (B) of this section,     4,830        

the period of its duration, which may be perpetual;                4,831        

      (3)  The address to which interested persons may direct      4,833        

requests for copies of any operating agreement and any bylaws of   4,834        

the company;                                                       4,835        

      (4)  Any other provisions that are from the operating        4,837        

agreement or that are not inconsistent with applicable law and     4,838        

that the members elect to set out in the articles for the          4,839        

regulation of the affairs of the company.                          4,840        

      (B)  If the articles of organization OR OPERATING AGREEMENT  4,842        

do not set forth the period of the duration of the limited         4,844        

liability company, its duration shall be perpetual.                4,845        

      (C)  If a limited liability company is formed under this     4,847        

chapter for the purpose of rendering a professional service or     4,848        

the kinds of professional services authorized under Chapters       4,849        

4703. and 4733. of the Revised Code, the following apply:          4,850        

      (1)  Each member, employee, or other agent of the company    4,852        

who renders a professional service in this state and, if the       4,853        

management of the company is not reserved to its members, each     4,854        

                                                          113    

                                                                 
manager of the company who renders a professional service in this  4,855        

state shall be licensed or otherwise legally authorized to render  4,856        

in this state the same kind of professional service or, if         4,857        

applicable, the kinds of professional services authorized under    4,858        

Chapters 4703. and 4733. of the Revised Code.                      4,859        

      (2)  Each member, employee, or other agent of the company    4,861        

who renders a professional service in another state and, if the    4,862        

management of the company is not reserved to its members, each     4,863        

manager of the company who renders a professional service in       4,864        

another state shall be licensed or otherwise legally authorized    4,865        

to render that professional service in the other state.            4,866        

      (D)  Except for the provisions of this chapter pertaining    4,868        

to the personal liability of members, employees, or other agents   4,869        

of a limited liability company and, if the management of the       4,870        

company is not reserved to its members, the personal liability of  4,871        

managers of the company, this chapter does not restrict, limit,    4,872        

or otherwise affect the authority or responsibilities of any       4,873        

agency, board, commission, department, office, or other entity to  4,874        

license, register, and otherwise regulate the professional         4,875        

conduct of individuals or organizations of any kind rendering      4,876        

professional services in this state or to regulate the practice    4,877        

of any profession that is within the jurisdiction of the agency,   4,878        

board, commission, department, office, or other entity,            4,879        

notwithstanding that the individual is a member or manager of a    4,880        

limited liability company and is rendering the professional        4,881        

services or engaging in the practice of the profession through     4,882        

the limited liability company or that the organization is a        4,883        

limited liability company.                                         4,884        

      Sec. 1705.16.  (A)  If EXCEPT AS PROVIDED IN DIVISION (C)    4,894        

OF THIS SECTION, IF the management of a limited liability company  4,896        

is reserved to its members, a member may withdraw from the         4,897        

company at any time by giving written notice to the other          4,898        

members.  If the withdrawal violates the operating agreement,      4,899        

then, in addition to exercising any remedies otherwise available   4,900        

                                                          114    

                                                                 
under applicable law, the company may recover from the                          

withdrawing member damages for breach of the operating agreement   4,901        

and may offset the damages against the amount otherwise            4,902        

distributable to him THE WITHDRAWING MEMBER on account of his THE  4,904        

WITHDRAWING MEMBER'S membership interest.                                       

      (B)  If EXCEPT AS PROVIDED IN DIVISION (C) OF THIS SECTION,  4,906        

IF the management of a limited liability company is not reserved   4,908        

to its members, the operating agreement may prohibit withdrawal    4,909        

or may specify the time at which or the events the occurrence of   4,910        

which entitle a member to withdraw.  If the operating agreement    4,911        

does not prohibit withdrawal, does not specify the time at which   4,912        

or the events upon the occurrence of which a member may withdraw,  4,913        

and does not indicate a definite time for the dissolution and the  4,914        

winding up of the company, a member may withdraw after giving at   4,915        

least six-months written notice of the proposed withdrawal to      4,916        

each nonwithdrawing member at its address as set forth in the      4,917        

records of the company that are required to be kept under section  4,918        

1705.28 of the Revised Code.                                       4,919        

      (C)  IF THE LIMITED LIABILITY COMPANY WAS FORMED ON OR       4,921        

AFTER THE EFFECTIVE DATE OF THIS AMENDMENT, OR THE COMPANY WAS     4,922        

FORMED PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT AND ITS       4,923        

ARTICLES OF ORGANIZATION OR OPERATING AGREEMENT SPECIFICALLY       4,924        

STATE THAT THIS DIVISION APPLIES TO THE COMPANY, A MEMBER MAY      4,925        

WITHDRAW FROM THE COMPANY ONLY AT THE TIME OR UPON THE OCCURRENCE               

OF AN EVENT SPECIFIED IN WRITING IN THE ARTICLES OF ORGANIZATION   4,926        

OR THE OPERATING AGREEMENT.                                        4,927        

      Sec. 1705.43.  (A)  A limited liability company organized    4,936        

under this chapter shall be dissolved upon the occurrence of any   4,937        

of the following events:                                           4,938        

      (1)  The expiration of the period, if any, fixed by the      4,940        

operating agreement or articles of organization for the duration   4,942        

of the company;                                                                 

      (2)  One or more events specified in writing in the          4,944        

operating agreement as causing the dissolution of the company;     4,945        

                                                          115    

                                                                 
      (3)  The unanimous written agreement of all members to       4,947        

dissolve the company;                                              4,948        

      (4)  The withdrawal of a member of the company, unless the   4,950        

business of the company is continued by the consent of all of the  4,951        

remaining members or under a right to continue the company that    4,952        

is stated in writing in the operating agreement;                   4,953        

      (5)  At any time when there are less than two members;       4,955        

      (6)  Upon entry of a decree of judicial dissolution under    4,957        

section 1705.47 of the Revised Code.                               4,958        

      (B)  Following the occurrence of any of the events           4,960        

specified in division (A) of this section, the limited liability   4,961        

company shall deliver to the secretary of state for filing a       4,962        

certificate of dissolution on a form that is prescribed by the     4,963        

secretary of state and that includes the name of the company and   4,964        

the effective date of its dissolution.                             4,965        

      Sec. 1782.33.  A (A)  EXCEPT AS PROVIDED IN DIVISION (B) OF  4,976        

THIS SECTION, A limited partner may withdraw from a limited        4,977        

partnership at the time, or upon the happening of events,          4,978        

specified in writing in the partnership agreement.  If the         4,979        

partnership agreement does not specify in writing the time or      4,980        

events upon the happening of which a limited partner may withdraw  4,981        

or a definite time for the dissolution and winding up of the                    

limited partnership, a limited partner may withdraw upon not less  4,982        

than six months' prior written notice to each general partner at   4,983        

his THE GENERAL PARTNER'S address on the books of the limited      4,984        

partnership at its office in this state.                           4,985        

      (B)  IF THE LIMITED PARTNERSHIP WAS FORMED ON OR AFTER THE   4,987        

EFFECTIVE DATE OF THIS AMENDMENT, OR THE LIMITED PARTNERSHIP WAS   4,988        

FORMED PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT AND ITS       4,989        

CERTIFICATE OF LIMITED PARTNERSHIP OR PARTNERSHIP AGREEMENT        4,990        

SPECIFICALLY STATES THAT THIS DIVISION APPLIES TO THE LIMITED      4,991        

PARTNERSHIP, A LIMITED PARTNER MAY WITHDRAW FROM THE LIMITED       4,992        

PARTNERSHIP ONLY AT THE TIME OR UPON THE OCCURRENCE OF AN EVENT                 

SPECIFIED IN WRITING IN THE PARTNERSHIP AGREEMENT.                 4,993        

                                                          116    

                                                                 
      Sec. 3901.51.  As used in sections 3901.51 to 3901.55 of     5,002        

the Revised Code:                                                  5,003        

      (A)  "Clearing corporation" has the same meaning as in       5,005        

division (C) of section 1308.01 of the Revised Code, except that   5,006        

with respect to securities issued by institutions organized or     5,007        

existing under the laws of any foreign country or securities used  5,008        

to meet the deposit requirements pursuant to the laws of a         5,009        

foreign country as a condition of doing business in that country,  5,010        

"clearing corporation" includes a corporation that is organized    5,011        

or existing under the laws of any foreign country and is legally   5,012        

qualified under those laws to effect transactions in securities    5,013        

by computerized book-entry.                                        5,014        

      (B)  "Direct participant" means a bank, trust company, or    5,016        

other entity that maintains an account in its name in a clearing   5,017        

corporation and through which an insurance company participates    5,018        

in a clearing corporation.                                         5,019        

      (C)  "Federal reserve book-entry system" means the           5,021        

computerized systems sponsored by the United States department of  5,022        

the treasury and agencies and instrumentalities of the United      5,023        

States for holding and transferring securities of the United       5,024        

States government and agencies and instrumentalities in federal    5,025        

reserve banks through banks that are members of the federal        5,026        

reserve system or that otherwise have access to these              5,027        

computerized systems.                                              5,028        

      (D)  "Member bank" means a national or state bank or a       5,030        

trust company that is a member of the federal reserve system and   5,031        

through which an insurance company participates in the federal     5,032        

reserve book-entry system.                                         5,033        

      (E)  "Provisions of the insurance laws of this state" means  5,035        

provisions of Title XXXIX of the Revised Code related to the       5,036        

deposit of securities for the benefit and security of              5,037        

policyholders, and includes, but is not limited to, sections       5,038        

3901.18, 3903.73, 3905.24, 3905.25, 3905.41, 3907.07, 3909.03,     5,039        

3909.09, 3909.17, 3913.01, 3913.04, 3919.13, 3919.36, 3919.37,     5,040        

                                                          117    

                                                                 
3919.41, 3925.07, 3927.02, 3927.06, 3929.01, 3929.07, 3929.08,     5,041        

3929.09, 3929.10, 3929.11, 3941.30, 3941.31, 3941.32, 3941.33,     5,042        

3941.34, 3941.42, 3953.06, 3953.11, and 3957.03 of the Revised     5,043        

Code.                                                                           

      (F)  "Securities" has the same meaning as in division        5,045        

(A)(3) of section 1308.01 of the Revised Code.                     5,046        

      Section 2.  That existing sections 1301.05, 1301.12,         5,048        

1303.02, 1304.01, 1304.02, 1305.10, 1305.13, 1308.03, 1308.04,     5,049        

1308.08, 1308.09, 1308.10, 1308.11, 1308.12, 1308.13, 1308.14,     5,050        

1308.15, 1308.16, 1308.17, 1308.22, 1308.31, 1308.37, 1308.38,     5,051        

1308.41, 1308.42, 1309.01, 1309.03, 1309.14, 1309.20, 1309.21,     5,052        

1309.22, 1309.23, 1309.24, 1309.25, 1309.28, 1309.31, 1701.01,     5,053        

1701.24, 1701.25, 1701.27, 1701.49, 1701.591, 1701.831, 1701.832,  5,054        

1705.01, 1705.04, 1705.16, 1705.43, 1782.33, and 3901.51 and       5,056        

sections 1308.01, 1308.02, 1308.05, 1308.06, 1308.07, 1308.18,     5,057        

1308.19, 1308.20, 1308.21, 1308.23, 1308.24, 1308.25, 1308.26,     5,058        

1308.27, 1308.28, 1308.32, 1308.33, 1308.34, 1308.35, 1308.36,     5,059        

1308.39, 1308.40, 1308.43, and 1308.44 of the Revised Code are     5,060        

hereby repealed.                                                                

      Section 3.  Sections 1 and 2 of this act, except for         5,062        

sections 1701.01, 1701.831, 1701.832, 1705.01, 1705.04, 1705.16,   5,063        

1705.43, and 1782.33 of the Revised Code, shall take effect on     5,064        

January 1, 1998.  Sections 1701.01, 1701.831, 1701.832, 1705.01,   5,065        

1705.04, 1705.16, 1705.43, and 1782.33 of the Revised Code, as     5,066        

amended by this act, shall take effect at the earliest time                     

permitted by law.                                                  5,067        

      Section 4.  (A)  Sections 1301.05, 1301.12, 1303.02,         5,069        

1304.01, 1304.02, 1305.10, 1305.13, 1308.01, 1308.02, 1308.03,     5,070        

1308.04, 1308.05, 1308.06, 1308.07, 1308.08, 1308.09, 1308.10,     5,071        

1308.11, 1308.12, 1308.13, 1308.14, 1308.15, 1308.16, 1308.17,     5,072        

1308.18, 1308.19, 1308.20, 1308.21, 1308.22, 1308.23, 1308.24,     5,073        

1308.25, 1308.26, 1308.27, 1308.28, 1308.31, 1308.32, 1308.33,                  

1308.34, 1308.35, 1308.36, 1308.37, 1308.38, 1308.39, 1308.40,     5,074        

1308.41, 1308.42, 1308.43, 1308.44, 1308.51, 1308.52, 1308.53,     5,075        

                                                          118    

                                                                 
1308.54, 1308.55, 1308.56, 1308.57, 1308.58, 1308.59, 1308.60,     5,076        

1308.61, 1309.01, 1309.03, 1309.112, 1309.113, 1309.14, 1309.20,   5,077        

1309.21, 1309.22, 1309.23, 1309.24, 1309.25, 1309.28, 1309.31,     5,078        

1701.24, 1701.25, 1701.27, 1701.49, 1701.591, and 3901.51 of the   5,079        

Revised Code, as amended, enacted, or repealed by this act, do                  

not affect an action or proceeding commenced before January 1,     5,080        

1998.                                                                           

      (B)  If a security interest in a security is perfected at    5,082        

January 1, 1998, and the action by which the security interest     5,083        

was perfected would suffice to perfect a security interest under   5,085        

this act, no further action is required to continue perfection.    5,086        

If a security interest in a security is perfected at January 1,    5,087        

1998, but the action by which the security interest was perfected  5,088        

would not suffice to perfect a security interest under this act,   5,089        

the security interest remains perfected for the period ending      5,091        

April 30, 1998, and continues perfected thereafter if appropriate  5,092        

action to perfect under this act is taken within that period.  If               

a security interest is perfected at January 1, 1998, and the       5,093        

security interest can be perfected by filing under this act, a     5,094        

financing statement signed by the secured party instead of the     5,095        

debtor may be filed within that period to continue perfection or   5,096        

thereafter to perfect.