As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 562 5
1997-1998 6
REPRESENTATIVES DAMSCHRODER-TERWILLEGER-TAYLOR-GARCIA-MOTTLEY 8
10
A B I L L
To amend sections 111.15, 131.15, 135.18, 135.181, 12
3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 13
4501.02 and to repeal sections 1107.36, 3351.05, 14
3351.06, 3351.071, 3351.08, 3351.09, 3351.10, 15
3351.11, 3351.12, 3351.13, and 3351.131 of the 16
Revised Code to remove statutory references to 17
the Ohio Student Aid Commission. 18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 111.15, 131.15, 135.18, 135.181, 21
3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 of the 22
Revised Code be amended to read as follows: 23
Sec. 111.15. (A) As used in this section: 32
(1) "Rule" includes any rule, regulation, bylaw, or 34
standard having a general and uniform operation adopted by an 35
agency under the authority of the laws governing the agency; any 36
appendix to a rule; and any internal management rule. "Rule" 37
does not include any guideline adopted pursuant to section 38
3301.0714 of the Revised Code, any order respecting the duties of 39
employees, any finding, any determination of a question of law or 40
fact in a matter presented to an agency, or any rule promulgated 41
pursuant to Chapter 119., section 4141.14, division (C)(1) or (2) 42
of section 5117.02, or section 5703.14 of the Revised Code. 43
"Rule" includes any amendment or rescission of a rule. 44
(2) "Agency" means any governmental entity of the state 46
and includes, but is not limited to, any board, department, 47
division, commission, bureau, society, council, institution, 48
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state college or university, community college district, 49
technical college district, or state community college. "Agency" 50
does not include the general assembly or any court. 51
(3) "Internal management rule" means any rule, regulation, 53
bylaw, or standard governing the day-to-day staff procedures and 54
operations within an agency. 55
(4) "Substantive revision" has the same meaning as in 57
division (J) of section 119.01 of the Revised Code. 58
(B)(1) Any rule, other than a rule of an emergency nature, 60
adopted by any agency pursuant to this section shall be effective 61
on the tenth day after the day on which the rule in final form 62
and in compliance with division (B)(3) of this section is filed 63
as follows: 64
(a) Two certified copies of the rule shall be filed with 66
both the secretary of state and the director of the legislative 67
service commission; 68
(b) Two certified copies of the rule shall be filed with 70
the joint committee on agency rule review. Division (B)(1)(b) of 71
this section does not apply to any rule to which division (D) of 72
this section does not apply. 73
An agency that adopts or amends a rule that is subject to 75
division (D) of this section shall assign a review date to the 77
rule that is not later than five years after its effective date.
If no review date is assigned to a rule, or if a review date 78
assigned to a rule exceeds the five-year maximum, the review date 79
for the rule is five years after its effective date. A rule with 80
a review date is subject to review under section 119.032 of the 81
Revised Code. This paragraph does not apply to a rule of a state 83
college or university, community college district, technical
college district, or state community college. 84
If all copies are not filed on the same day, the rule shall 86
be effective on the tenth day after the day on which the latest 87
filing is made. If an agency in adopting a rule designates an 88
effective date that is later than the effective date provided for 89
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by division (B)(1) of this section, the rule if filed as required 90
by such division shall become effective on the later date 91
designated by the agency. 92
Any rule that is required to be filed under division (B)(1) 94
of this section is also subject to division (D) of this section 95
if not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), 97
or (8) of this section.
(2) A rule of an emergency nature necessary for the 99
immediate preservation of the public peace, health, or safety 100
shall state the reasons for the necessity. Copies of the 101
emergency rule, in final form and in compliance with division 102
(B)(3) of this section, shall be filed as follows: two certified 103
copies of the emergency rule shall be filed with both the 104
secretary of state and the director of the legislative service 105
commission, and one certified copy of the emergency rule shall be 106
filed with the joint committee on agency rule review. The 107
emergency rule is effective immediately upon the latest filing, 108
except that if the agency in adopting the emergency rule 109
designates an effective date, or date and time of day, that is 110
later than the effective date and time provided for by division 111
(B)(2) of this section, the emergency rule if filed as required 112
by such division shall become effective at the later date, or 113
later date and time of day, designated by the agency. 114
An emergency rule becomes invalid at the end of the 116
ninetieth day it is in effect. Prior to that date, the agency 117
may file the emergency rule as a nonemergency rule in compliance 118
with division (B)(1) of this section. The agency may not refile 119
the emergency rule in compliance with division (B)(2) of this 120
section so that, upon the emergency rule becoming invalid under 121
such division, the emergency rule will continue in effect without 122
interruption for another ninety-day period. 123
(3) An agency shall file a rule under division (B)(1) or 125
(2) of this section in compliance with the following standards 126
and procedures: 127
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(a) The rule shall be numbered in accordance with the 129
numbering system devised by the director for the Ohio 130
administrative code. 131
(b) The rule shall be prepared and submitted in compliance 133
with the rules of the legislative service commission. 134
(c) The rule shall clearly state the date on which it is 136
to be effective and the date on which it will expire, if known. 137
(d) Each rule that amends or rescinds another rule shall 139
clearly refer to the rule that is amended or rescinded. Each 140
amendment shall fully restate the rule as amended. 141
If the director of the legislative service commission or 143
the director's designee gives an agency written notice pursuant 145
to section 103.05 of the Revised Code that a rule filed by the 146
agency is not in compliance with the rules of the legislative 147
service commission, the agency shall within thirty days after 148
receipt of the notice conform the rule to the rules of the 149
commission as directed in the notice. 150
(C) All rules filed pursuant to divisions (B)(1)(a) and 152
(2) of this section shall be recorded by the secretary of state 153
and the director under the title of the agency adopting the rule 154
and shall be numbered according to the numbering system devised 155
by the director. The secretary of state and the director shall 156
preserve the rules in an accessible manner. Each such rule shall 157
be a public record open to public inspection and may be lent to 158
any law publishing company that wishes to reproduce it. 159
(D) At least sixty days before a board, commission, 161
department, division, or bureau of the government of the state 162
files a rule under division (B)(1) of this section, it shall file 163
two copies of the full text of the proposed rule with the joint 165
committee on agency rule review, and the proposed rule is subject 168
to legislative review and invalidation under division (I) of 169
section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive 170
revision in a proposed rule after it is filed with the joint 171
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committee, the state board, commission, department, division, or 173
bureau shall promptly file two copies of the full text of the 175
proposed rule in its revised form with the joint committee. The 176
latest version of a proposed rule as filed with the joint 177
committee supersedes each earlier version of the text of the same 179
proposed rule. Except as provided in division (F) of this 180
section, a state board, commission, department, division, or 181
bureau shall attach one copy of the rule summary and fiscal 182
analysis prepared under section 121.24 or 127.18 of the Revised 183
Code, or both, to each copy of a proposed rule, and to each copy 184
of a proposed rule in revised form, that is filed under this 185
division. 186
As used in this division, "commission" includes the public 188
utilities commission when adopting rules under a federal or state 189
statute.
This division does not apply to any of the following: 191
(1) A proposed rule of an emergency nature; 193
(2) A rule proposed under section 1121.05, 1121.06, 195
1155.18, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40, 196
4123.411, 4123.44, or 4123.442 of the Revised Code; 198
(3) A rule proposed by an agency other than a board, 200
commission, department, division, or bureau of the government of 201
the state; 202
(4) A proposed internal management rule of a board, 204
commission, department, division, or bureau of the government of 205
the state; 206
(5) A rule proposed by the Ohio student aid commission 208
that complies with a federal law or rule, so long as the proposed 209
rule contains both of the following: 210
(a) A statement that it is proposed for the purpose of 212
complying with a federal law or rule; 213
(b) A citation to the federal law or rule that requires 215
compliance. 216
(6) Any proposed rule that must be adopted verbatim by an 218
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agency pursuant to federal law or rule, to become effective 219
within sixty days of adoption, in order to continue the operation 220
of a federally reimbursed program in this state, so long as the 221
proposed rule contains both of the following: 222
(a) A statement that it is proposed for the purpose of 224
complying with a federal law or rule; 225
(b) A citation to the federal law or rule that requires 227
verbatim compliance. 228
(7)(6) An initial rule proposed by the director of health 230
to impose safety standards, quality-of-care standards, and 231
quality-of-care data reporting requirements with respect to a 232
health service specified in section 3702.11 of the Revised Code, 233
or an initial rule proposed by the director to impose quality 235
standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised 236
Code requires that the rule be adopted under this section; 237
(8)(7) A rule of the state lottery commission pertaining 239
to instant game rules. 240
(E) Whenever a state board, commission, department, 242
division, or bureau files a proposed rule or a proposed rule in 243
revised form under division (D) of this section, it shall also 244
file one copy of the full text of the same proposed rule or 245
proposed rule in revised form with the secretary of state and two 246
copies thereof with the director of the legislative service 247
commission. Except as provided in division (F) of this section, 248
a state board, commission, department, division, or bureau shall 249
attach a copy of the rule summary and fiscal analysis prepared 250
under section 121.24 or 127.18 of the Revised Code, or both, to 251
each copy of a proposed rule or proposed rule in revised form 252
that is filed with the secretary of state or the director of the 253
legislative service commission. 254
(F) Except as otherwise provided in this division, the 256
auditor of state or the auditor of state's designee is not 257
required to attach a rule summary and fiscal analysis to any copy 259
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of a proposed rule, or proposed rule in revised form, that the 260
auditor of state proposes under section 117.12, 117.19, 117.38, 262
or 117.43 of the Revised Code and files under division (D) or (E) 263
of this section. If, however, the auditor of state or the 264
designee prepares a rule summary and fiscal analysis of the 265
original version of such a proposed rule for purposes of 266
complying with section 121.24 of the Revised Code, the auditor of 267
state or designee shall attach a copy of the rule summary and 268
fiscal analysis to each copy of the original version of the 269
proposed rule filed under division (D) or (E) of this section. 270
Sec. 131.15. (A) Any depositor enumerated in section 279
131.11 of the Revised Code shall make ample provisions for the 280
safekeeping of hypothecated securities. The interest thereon, 281
when paid, shall be turned over to the bank or trust company if 282
it is not in default. The depositor may make provisions for the 283
exchange and release of securities and the substitution of other 284
securities or of an undertaking therefor except in those cases 285
where the public depository has deposited eligible securities 286
with a trustee for safekeeping. 287
(B) When the public depository has deposited eligible 289
securities described in division (B)(1) of section 135.18 of the 290
Revised Code with a trustee for safekeeping, the public 291
depository may at any time substitute or exchange eligible 292
securities described in division (B)(1) of section 135.18 of the 293
Revised Code having a current market value equal to or greater 294
than the current market value of the securities then on deposit 295
and for which they are to be substituted or exchanged, without 296
specific authorization from the depositor of any substitution or 297
exchange. 298
(C) When the public depository has deposited eligible 300
securities described in division (B)(2) to (10)(9) of section 301
135.18 of the Revised Code with a trustee for safekeeping, the 302
public depository may at any time substitute or exchange eligible 303
securities having a current market value equal to or greater than 304
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the current market value of the securities then on deposit and 305
for which they are to be substituted or exchanged without 306
specific authorization of any depositor of any such substitution 307
or exchange only if: 308
(1) The depositor has authorized the public depository to 310
make such substitutions or exchanges on a continuing basis during 311
a specified period without prior approval of each substitution or 312
exchange. Such authorization may be effected by the depositor 313
sending to the trustee a written notice stating that substitution 314
may be effected on a continuing basis during a specified period 315
that shall not extend beyond the end of the period of designation 316
during which the notice is given. "Period of designation" as 317
used in this section means the period under section 135.12 of the 318
Revised Code for the award of inactive funds of the subdivision 319
of which the depositor is an officer or employee. The trustee 320
may rely upon such notice and upon the period of authorization 321
stated therein and upon the period of designation stated therein. 322
(2) No continuing authorization for substitution has been 324
given by the depositor, the public depository notifies the 325
depositor and the trustee of an intended substitution or 326
exchange, and the depositor fails to object to the trustee as to 327
the eligibility or market value of the securities being 328
substituted within ten calendar days after the date appearing on 329
the notice of proposed substitution. The notice to the depositor 330
and to the trustee shall be given in writing and delivered 331
personally or by certified mail with a return receipt requested. 332
The trustee may assume in any case that the notice has been 333
delivered to the depositor. In order for objections of the 334
depositor to be effective, receipt of the objections must be 335
acknowledged in writing by the trustee. 336
(3) The depositor gives written authorization for a 338
substitution or exchange of specific securities. 339
(D) The public depository shall notify the depositor of 341
any substitution or exchange under division (C)(1) or (2) of this 342
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section. If the depository designates a trustee qualified under 343
section 135.18 of the Revised Code to act as such for the 344
safekeeping of securities, the depositor shall accept the written 345
receipt of the designated trustee, describing the securities that 346
have been deposited with the trustee by the public depository, as 347
and for a hypothecation of such securities and issue to the 348
depository his THE DEPOSITOR'S written acknowledgment to that 349
effect, keeping a copy thereof in his THE DEPOSITOR'S office. 350
Thereupon, all such securities pledged and deposited with the 351
trustee are deemed hypothecated and deposited with the depositor, 352
for all the purposes of sections 131.13 to 131.16 of the Revised 353
Code. The trustee shall hold the securities for the account of 354
the depositor and the depository as their respective rights to 355
and interests in such securities under said sections appear and 356
are asserted by written notice to or demand upon the trustee. 357
Notwithstanding the fact that a public depository is 359
required to pledge eligible securities in certain amounts to 360
secure deposits of public moneys, a trustee shall have no duty or 361
obligation to determine the eligibility, market value, or face 362
value of any securities deposited with the trustee by a public 363
depository. This applies in all situations including, without 364
limitation, a substitution or exchange of securities. 365
Sec. 135.18. (A) The treasurer, before making the initial 374
deposit in a public depository pursuant to an award made under 375
sections 135.01 to 135.21 of the Revised Code, shall require the 376
institution designated as a public depository to pledge to and 377
deposit with the treasurer, as security for the repayment of all 378
public moneys to be deposited in the public depository during the 379
period of designation pursuant to the award, eligible securities 380
of aggregate market value equal to the excess of the amount of 381
public moneys to be at the time so deposited, over and above such 382
portion or amount of such moneys as is at such time insured by 383
the federal deposit insurance corporation or by any other agency 384
or instrumentality of the federal government, or the treasurer 385
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may require the institution to deposit with the treasurer surety 386
company bonds which, when executed, shall be for an amount equal 387
to such excess amount. In the case of any deposit other than the 388
initial deposit made during the period of designation, the amount 389
of the aggregate market value of securities required to be 390
pledged and deposited, or of the surety company bonds required to 391
be deposited, shall be equal to the difference between the amount 392
of public moneys on deposit in such public depository plus the 393
amount to be so deposited, minus the portion or amount of the 394
aggregate as is at the time insured as provided in this section. 395
The treasurer may require additional eligible securities to be 396
deposited to provide for any depreciation which may occur in the 397
market value of any of the securities so deposited. 398
(B) The following securities shall be eligible for the 400
purposes of this section: 401
(1) Bonds, notes, or other obligations of the United 403
States; or bonds, notes, or other obligations guaranteed as to 404
principal and interest by the United States or those for which 405
the faith of the United States is pledged for the payment of 406
principal and interest thereon, by language appearing in the 407
instrument specifically providing such guarantee or pledge and 408
not merely by interpretation or otherwise; 409
(2) Bonds, notes, debentures, letters of credit, or other 411
obligations or securities issued by any federal government agency 412
or instrumentality, or the export-import bank of Washington; 413
bonds, notes, or other obligations guaranteed as to principal and 414
interest by the United States or those for which the faith of the 415
United States is pledged for the payment of principal and 416
interest thereon, by interpretation or otherwise and not by 417
language appearing in the instrument specifically providing such 418
guarantee or pledge;
(3) Obligations of or fully insured or fully guaranteed by 420
the United States or any federal government agency or 421
instrumentality;
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(4) Obligations partially insured or partially guaranteed 423
by any federal agency or instrumentality; 424
(5) Obligations of or fully guaranteed by the federal 426
national mortgage association, federal home loan mortgage 427
corporation, federal farm credit bank, or student loan marketing 428
association;
(6) Bonds and other obligations of this state; 430
(7) Bonds and other obligations of any county, township, 432
school district, municipal corporation, or other legally 433
constituted taxing subdivision of this state, which is not at the 434
time of such deposit, in default in the payment of principal or 435
interest on any of its bonds or other obligations, for which the 436
full faith and credit of the issuing subdivision is pledged; 438
(8) Bonds of other states of the United States which have 440
not during the ten years immediately preceding the time of such 441
deposit defaulted in payments of either interest or principal on 442
any of their bonds; 443
(9) Obligations guaranteed as to principal and interest by 445
the Ohio student aid commission; 446
(10) Shares of no-load money market mutual funds 448
consisting exclusively of obligations described in division 449
(B)(1) or (2) of this section and repurchase agreements secured 450
by such obligations. 451
(C) If the public depository fails to pay over any part of 453
the public deposit made therein as provided by law, the treasurer 454
shall sell at public sale any of the bonds or other securities 455
deposited with the treasurer pursuant to this section or section 456
131.09 of the Revised Code, or shall draw on any letter of credit 457
to the extent of such failure to pay. Thirty days' notice of 458
such sale shall be given in a newspaper of general circulation at 459
Columbus, in the case of the treasurer of state, and at the 460
county seat of the county in which the office of the treasurer is 461
located, in the case of any other treasurer. When a sale of 462
bonds or other securities has been so made and upon payment to 463
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the treasurer of the purchase money, the treasurer shall transfer 464
such bonds or securities whereupon the absolute ownership of such 465
bonds or securities shall pass to the purchasers. Any surplus 466
remaining after deducting the amount due the state or subdivision 467
and expenses of sale shall be paid to the public depository. 468
(D) An institution designated as a public depository may, 470
by written notice to the treasurer, designate a qualified trustee 471
and deposit the eligible securities required by this section with 472
the trustee for safekeeping for the account of the treasurer and 473
the institution as a public depository, as their respective 474
rights to and interests in such securities under this section may 475
appear and be asserted by written notice to or demand upon the 476
trustee. In such case, the treasurer shall accept the written 477
receipt of the trustee describing the securities which have been 478
deposited with the trustee by the public depository, a copy of 479
which shall also be delivered to the public depository. 480
Thereupon all such securities so deposited with the trustee are 481
deemed to be pledged with the treasurer and to be deposited with 482
the treasurer, for all the purposes of this section. 483
(E) The governing board may make provisions for the 485
exchange and release of securities and the substitution of other 486
eligible securities therefor except where the public depository 487
has deposited eligible securities with a trustee for safekeeping 488
as provided in this section. 489
(F) When the public depository has deposited eligible 491
securities described in division (B)(1) of this section with a 492
trustee for safekeeping, the public depository may at any time 493
substitute or exchange eligible securities described in division 494
(B)(1) of this section having a current market value equal to or 495
greater than the current market value of the securities then on 496
deposit and for which they are to be substituted or exchanged, 497
without specific authorization from any governing board, boards, 498
or treasurer of any such substitution or exchange. 499
(G) When the public depository has deposited eligible 501
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securities described in divisions (B)(2) to (10)(9) of this 502
section with a trustee for safekeeping, the public depository may 503
at any time substitute or exchange eligible securities having a 504
current market value equal to or greater than the current market 505
value of the securities then on deposit and for which they are to 506
be substituted or exchanged without specific authorization of any 507
governing board, boards, or treasurer of any such substitution or 508
exchange only if: 509
(1) The treasurer has authorized the public depository to 511
make such substitution or exchange on a continuing basis during a 512
specified period without prior approval of each substitution or 513
exchange. Such authorization may be effected by the treasurer 514
sending to the trustee a written notice stating that substitution 515
may be effected on a continuing basis during a specified period 516
which shall not extend beyond the end of the period of 517
designation during which the notice is given. The trustee may 518
rely upon such notice and upon the period of authorization stated 519
therein and upon the period of designation stated therein. 520
(2) No continuing authorization for substitution has been 522
given by the treasurer, the public depository notifies the 523
treasurer and the trustee of an intended substitution or 524
exchange, and the treasurer fails to object to the trustee as to 525
the eligibility or market value of the securities being 526
substituted within ten calendar days after the date appearing on 527
the notice of proposed substitution. The notice to the treasurer 528
and to the trustee shall be given in writing and delivered 529
personally or by certified or registered mail with a return 530
receipt requested. The trustee may assume in any case that the 531
notice has been delivered to the treasurer. In order for 532
objections of the treasurer to be effective, receipt of the 533
objections must be acknowledged in writing by the trustee. 534
(3) The treasurer gives written authorization for a 536
substitution or exchange of specific securities. 537
(H) The public depository shall notify any governing 539
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board, boards, or treasurer of any such substitution or exchange 540
under division (G)(1) or (2) of this section. Upon request from 541
the treasurer, the trustee shall furnish a statement of the 542
securities pledged against such public deposits. 543
(I) Any federal reserve bank or branch thereof located in 545
this state, without compliance with Chapter 1111. of the Revised 546
Code and without becoming subject to any other law of this state 549
relative to the exercise by corporations of trust powers 550
generally, is qualified to act as trustee for the safekeeping of 551
securities, under this section. Any institution mentioned in 552
section 135.03 of the Revised Code that holds a certificate of 553
qualification issued by the superintendent of financial 554
institutions or any institution complying with sections 1111.04,
1115.05, and 1111.06 of the Revised Code, is qualified to act as 556
trustee for the safekeeping of securities, other than those 557
belonging to itself, under this section. Upon application to the 558
superintendent in writing by any such institution, the
superintendent shall investigate the applicant and ascertain 560
whether or not it has been authorized to execute and accept 561
trusts in this state and has safe and adequate vaults and 562
efficient supervision thereof for the storage and safekeeping 563
within this state of such securities. If the superintendent 564
finds that the applicant has been so authorized and does have 565
such vaults and supervision thereof, the superintendent shall 566
approve the application and issue a certificate to that effect, 567
the original or any certified copy of which shall be conclusive 568
evidence that the institution therein named is qualified to act 569
as trustee for the purposes of this section with respect to 570
securities other than those belonging to itself.
Notwithstanding the fact that a public depository is 572
required to pledge eligible securities in certain amounts to 573
secure deposits of public moneys, a trustee shall have no duty or 574
obligation to determine the eligibility, market value, or face 575
value of any securities deposited with the trustee by a public 576
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depository. This applies in all situations including, without 577
limitation, a substitution or exchange of securities. 578
Any charges or compensation of a designated trustee for 580
acting as such under this section shall be paid by the public 581
depository and in no event shall be chargeable to the state or 582
the subdivision or to the treasurer or to any officer of the 583
state or subdivision. Such charges or compensation shall not be 584
a lien or charge upon the securities deposited for safekeeping 585
prior or superior to the rights to and interests in such 586
securities of the state or the subdivision or of the treasurer. 587
The treasurer and the treasurer's bondsmen BONDERS or surety 588
shall be relieved from any liability to the state or the 589
subdivision or to the public depository for the loss or 590
destruction of any securities deposited with a qualified trustee 591
pursuant to this section.
Sec. 135.181. (A) As used in this section: 603
(1) "Public depository" means that term as defined in 605
section 135.01 of the Revised Code, but also means an institution 606
which receives or holds any public deposits as defined in section 607
135.31 of the Revised Code. 608
(2) "Public deposits," "public moneys," and "treasurer" 610
mean those terms as defined in section 135.01 of the Revised 611
Code, but also have the same meanings as are set forth in section 612
135.31 of the Revised Code. 613
(3) "Subdivision" means that term as defined in section 615
135.01 of the Revised Code, but also includes a county. 616
(B) In lieu of the pledging requirements prescribed in 618
sections 135.18 and 135.37 of the Revised Code, an institution 619
designated as a public depository at its option may pledge a 620
single pool of eligible securities to secure the repayment of all 621
public moneys deposited in the institution and not otherwise 622
secured pursuant to law, provided that at all times the total 623
value of the securities so pledged, based on the valuations 624
prescribed in division (C) of this section, is at least equal to 625
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one hundred ten per cent of the total amount of all public 626
deposits to be secured by the pooled securities, including the 627
portion of such deposits covered by any federal deposit 628
insurance. Each such institution shall carry in its accounting 629
records at all times a general ledger or other appropriate 630
account of the total amount of all public deposits to be secured 631
by the pool, as determined at the opening of business each day, 632
and the total value of securities pledged to secure such 633
deposits. 634
(C) The following securities, at the specified valuations, 636
shall be eligible as collateral for the purposes of division (B) 637
of this section, provided no such securities pledged as 638
collateral are at any time in default as to either principal or 639
interest: 640
(1) Obligations of or fully insured or fully guaranteed by 642
the United States or any federal government agency or 643
instrumentality: at face value; 644
(2) Obligations partially insured or partially guaranteed 646
by any federal government agency or instrumentality: at face 647
value;
(3) Obligations of or fully guaranteed by the federal 649
national mortgage association, federal home loan mortgage 650
corporation, federal farm, credit bank, or student loan marketing 651
association: at face value; 652
(4) Obligations of any state, county, municipal 654
corporation, or other legally constituted authority of any state, 655
or any instrumentality of any state, county, municipal 656
corporation, or other authority, which are secured as to the 657
payment of principal and interest by the holding in escrow of 658
obligations of the United States for which the full faith and 659
credit of the United States is pledged: at face value; 660
(5) Obligations of this state, or any county or other 662
legally constituted authority of this state, or any 663
instrumentality of this state, or such county or other authority: 664
17
at face value; 665
(6) Obligations of any other state: at ninety per cent of 667
face value; 668
(7) Obligations of any county, municipal corporation, or 670
other legally constituted authority of any other state, or any 671
instrumentality of such county, municipal corporation, or other 672
authority: at eighty per cent of face value; 673
(8) Notes representing loans made to persons attending or 675
planning to attend eligible institutions of education and to 676
their parents, and insured or guaranteed by the United States or 677
any agency, department, or other instrumentality thereof, or 678
guaranteed by the Ohio student aid commission pursuant to 679
sections 3351.05 to 3351.14 of the Revised Code: at face value; 680
(9) Any other obligations the treasurer of state approves: 682
at the percentage of face value the treasurer of state 683
prescribes;
(10) Shares of no-load money market mutual funds 685
consisting exclusively of obligations described in division 686
(C)(1), (2), or (3) of this section and repurchase agreements 687
secured by such obligations: at face value. 688
(D) The state and each subdivision shall have an undivided 690
security interest in the pool of securities pledged by a public 691
depository pursuant to division (B) of this section in the 692
proportion that the total amount of the state's or subdivision's 693
public moneys secured by the pool bears to the total amount of 694
public deposits so secured. 695
(E) An institution designated as a public depository shall 697
designate a qualified trustee and deposit with the trustee for 698
safekeeping the eligible securities pledged pursuant to division 699
(B) of this section. The institution shall give written notice 700
of the qualified trustee to any treasurer or treasurers 701
depositing public moneys for which such securities are pledged. 702
The treasurer shall accept the written receipt of the trustee 703
describing the pool of securities so deposited by the depository, 704
18
a copy of which also shall be delivered to the depository. 705
(F) Any federal reserve bank or branch thereof located in 707
this state, without compliance with Chapter 1111. of the Revised 708
Code and without becoming subject to any other law of this state 711
relative to the exercise by corporations of trust powers 712
generally, is qualified to act as trustee for the safekeeping of 713
securities, under this section. Any institution mentioned in 714
section 135.03 or 135.32 of the Revised Code which holds a
certificate of qualification issued by the superintendent of 715
financial institutions or any institution complying with sections 717
1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to 718
act as trustee for the safekeeping of securities under this 719
section, other than those belonging to itself or to an affiliate 720
as defined in division (A) of section 1101.01 of the Revised 721
Code. Upon application to the superintendent in writing by any 722
such institution, the superintendent shall investigate the 724
applicant and ascertain whether or not it has been authorized to 725
execute and accept trusts in this state and has safe and adequate 726
vaults and efficient supervision thereof for the storage and 727
safekeeping of such securities. If the superintendent finds that 728
the applicant has been so authorized and does have such vaults 729
and supervision thereof, the superintendent shall approve the 730
application and issue a certificate to that effect, the original 732
or any certified copy of which shall be conclusive evidence that 733
the institution named therein is qualified to act as trustee for 734
the purposes of this section with respect to securities other 735
than those belonging to itself or to an affiliate. 736
(G) The public depository at any time may substitute, 738
exchange, or release eligible securities deposited with a 739
qualified trustee pursuant to this section, provided that such 740
substitution, exchange, or release does not reduce the total 741
value of the securities, based on the valuations prescribed in 742
division (C) of this section, to an amount that is less than one 743
hundred ten per cent of the total amount of public deposits as 744
19
determined pursuant to division (B) of this section. 745
(H) Notwithstanding the fact that a public depository is 747
required to pledge eligible securities in certain amounts to 748
secure deposits of public moneys, a trustee shall have no duty or 749
obligation to determine the eligibility, market value, or face 750
value of any securities deposited with the trustee by a public 751
depository. This applies in all situations including, but not 752
limited to, a substitution or exchange of securities, but 753
excluding those situations effectuated by division (I) of this 754
section in which the trustee is required to determine face and 755
market value. 756
(I) If the public depository fails to pay over any part of 758
the public deposits made therein as provided by law and secured 759
pursuant to division (B) of this section, the treasurer shall 760
give written notice of this failure to the qualified trustee 761
holding the pool of securities pledged against public moneys 762
deposited in the depository, and at the same time shall send a 763
copy of this notice to the depository. Upon receipt of such 764
notice, the trustee shall transfer to the treasurer for public 765
sale such of the pooled securities as may be necessary to produce 766
an amount equal to the deposits made by the treasurer and not 767
paid over, less the portion of such deposits covered by any 768
federal deposit insurance, plus any accrued interest due on such 769
deposits; however, such amount shall not exceed the state's or 770
subdivision's proportional security interest in the market value 771
of the pool as of the date of the depository's failure to pay 772
over the deposits, as such interest and value are determined by 773
the trustee. The treasurer shall sell at public sale any of the 774
bonds or other securities so transferred. Thirty days' notice of 775
such sale shall be given in a newspaper of general circulation at 776
Columbus, in the case of the treasurer of state, and at the 777
county seat of the county in which the office of the treasurer is 778
located, in the case of any other treasurer. When a sale of 779
bonds or other securities has been so made and upon payment to 780
20
the treasurer of the purchase money, the treasurer shall transfer 781
such bonds or securities whereupon the absolute ownership of such 782
bonds or securities shall pass to the purchasers. Any surplus 783
after deducting the amount due the state or subdivision and 784
expenses of sale shall be paid to the public depository. 785
(J) Any charges or compensation of a designated trustee 787
for acting as such under this section shall be paid by the public 788
depository and in no event shall be chargeable to the state or 789
subdivision or to the treasurer or to any officer of the state or 790
subdivision. Such charges or compensation shall not be a lien or 791
charge upon the securities deposited for safekeeping prior or 792
superior to the rights to and interests in such securities of the 793
state or subdivision or of the treasurer. The treasurer and the 794
treasurer's bondspersons bonders or surety shall be relieved from 795
any liability to the state or subdivision or to the public 796
depository for the loss or destruction of any securities 797
deposited with a qualified trustee pursuant to this section. 798
(K) In lieu of placing its unqualified endorsement on each 800
security, a public depository pledging securities pursuant to 801
division (B) of this section that are not negotiable without its 802
endorsement or assignment may furnish to the qualified trustee 803
holding the securities an appropriate resolution and irrevocable 804
power of attorney authorizing the trustee to assign the 805
securities. The resolution and power of attorney shall conform 806
to such terms and conditions as the trustee prescribes. 807
(L) Upon request of a treasurer no more often than four 809
times per year, a public depository shall report the amount of 810
public moneys deposited by the treasurer and secured pursuant to 811
division (B) of this section, and the total value, based on the 812
valuations prescribed in division (C) of this section, of the 813
pool of securities pledged to secure public moneys held by the 814
depository, including those deposited by the treasurer. Upon 815
request of a treasurer no more often than four times per year, a 816
qualified trustee shall report such total value of the pool of 817
21
securities deposited with it by the depository and shall provide 818
an itemized list of the securities in the pool. These reports 819
shall be made as of the date the treasurer specifies. 820
Sec. 3333.25. There is hereby created the Ohio academic 829
scholarship payment fund, which shall be in the custody of the 830
treasurer of state but shall not be a part of the state treasury. 831
The fund shall consist of all moneys appropriated for the fund by 832
the general assembly and other moneys otherwise made available to 833
the fund. The payment fund shall be used for the payment of Ohio 834
academic scholarships or for additional scholarships to recognize 835
outstanding academic achievement and ability. The Ohio board of 836
regents shall administer this section and establish rules for the 837
distribution and awarding of any additional scholarships. 838
The board may direct the treasurer of state to invest any 841
moneys in the payment fund not currently needed for scholarship 842
payments, in any kinds of investments in which moneys of the Ohio 843
student aid commission PUBLIC EMPLOYEES RETIREMENT SYSTEM may be 844
invested.
The instruments of title of all investments shall be 846
delivered to the treasurer of state or to a qualified trustee 847
designated by the treasurer of state as provided in section 848
135.18 of the Revised Code. The treasurer of state shall collect 849
both principal and investment earnings on all investments as they 850
become due and pay them into the fund. 851
All deposits to the fund shall be made in financial 853
institutions of this state secured as provided in section 135.18 854
of the Revised Code. 855
Sec. 3345.32. (A) As used in this section: 864
(1) "State university or college" means the institutions 866
described in section 3345.27 of the Revised Code, the 867
northeastern Ohio universities college of medicine, and the 868
medical college of Ohio at Toledo. 869
(2) "Resident" has the meaning specified by rule of the 871
Ohio board of regents. 872
22
(3) "Statement of selective service status" means a 874
statement certifying one of the following: 875
(a) That the individual filing the statement has 877
registered with the selective service system in accordance with 878
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 879
App. 453, as amended; 880
(b) That the individual filing the statement is not 882
required to register with the selective service for one of the 883
following reasons: 884
(i) The individual is under eighteen or over twenty-six 886
years of age; 887
(ii) The individual is on active duty with the armed 889
forces of the United States other than for training in a reserve 890
or national guard unit; 891
(iii) The individual is a nonimmigrant alien lawfully in 893
the United States in accordance with section 101 (a)(15) of the 894
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended; 895
(iv) The individual is not a citizen of the United States 897
and is a permanent resident of the Trust Territory of the Pacific 899
Islands or the Northern Mariana Islands. 900
(4) "Institution of higher education" means any eligible 902
institution approved by the student aid commission UNITED STATES 904
DEPARTMENT OF EDUCATION pursuant to Chapter 3351. of the Revised 905
Code THE "HIGHER EDUCATION ACT OF 1965," 79 STAT. 1219, AS 906
AMENDED, or any institution whose students are eligible for 908
financial assistance under any of the programs described by 909
division (E) of this section.
(B) The Ohio board of regents shall, by rule, specify the 911
form of statements of selective service status to be filed in 912
compliance with divisions (C) to (F) of this section. Each 913
statement of selective service status shall contain a section 914
wherein a male student born after December 31, 1959, certifies 915
that the student has registered with the selective service system 917
in accordance with the "Military Selective Service Act," 62 Stat. 918
23
604, 50 U.S.C. App. 453, as amended. For those students not 920
required to register with the selective service, as specified in 921
divisions (A)(2)(b)(i) to (iv) of this section, a section shall 922
be provided on the statement of selective service status for the 923
certification of nonregistration and for an explanation of the 924
reason for the exemption. The board of regents may require that 925
such statements be accompanied by documentation specified by rule 926
of the board.
(C) A state university or college that enrolls in any 928
course, class, or program a male student born after December 31, 929
1959, who has not filed a statement of selective service status 930
with the university or college shall, regardless of the student's 931
residency, charge the student any tuition surcharge charged 932
students who are not residents of this state. 933
(D) No male born after December 31, 1959, shall be 935
eligible to receive any loan, grant, scholarship, or other 936
financial assistance for educational expenses under section 937
3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03, 938
5910.032, or 5919.34 of the Revised Code unless that person has 940
filed a statement of selective service status with that person's 941
institution of higher education.
(E) If an institution of higher education receives a 943
statement from an individual certifying that the individual has 945
registered with the selective service system in accordance with
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 946
App. 453, as amended or that the individual is exempt from 947
registration for a reason other than that the individual is under 949
eighteen years of age, the institution shall not require the 950
individual to file any further statements. If it receives a 951
statement certifying that the individual is not required to 952
register because the individual is under eighteen years of age, 953
the institution shall require the individual to file a new 954
statement of selective service status each time the individual 955
seeks to enroll for a new academic term or makes application for 957
24
a new loan or loan guarantee or for any form of financial 958
assistance for educational expenses, until it receives a 959
statement certifying that the individual has registered with the 960
selective service system or is exempt from registration for a
reason other than that the individual is under eighteen years of 962
age.
Sec. 3351.07. (A) The Ohio student aid commission may: 971
(1) Guarantee the loan of money, subject to section 973
3351.08 of the Revised Code and upon any other terms and 974
conditions as the commission may prescribe, to persons and 975
parents of persons attending or planning to attend eligible 976
institutions to assist them in meeting educational expenses; 977
(2) Reject or take, hold, and administer, on behalf of the 979
commission and for any of its purposes, real property, personal 980
property, and moneys, or any interest therein, and the income 981
therefrom, either absolutely or in trust, for any purpose of the 982
commission. The commission may invest its funds in any 983
investments listed in division (K) of this section. The 984
commission may acquire property or moneys for its purposes by the 986
acceptance of gifts, grants, bequests, devises, or loans; 987
provided, that no obligation of the commission shall be a debt of 988
the state, and the commission shall have no power to make its 989
debts payable out of moneys except those of the commission. 990
(3) Enter into such contracts as may be desirable with 992
eligible educational institutions, upon terms as may be agreed 994
upon between the commission and the institution, to provide for 995
the administration by the institution of any loan or loan plan 997
guaranteed by the commission, including applications therefor and 998
repayment thereof;
(4) Enter into contracts with any approved lender, upon 1,000
terms as may be agreed upon between the commission and the 1,001
approved lender, to provide for the administration by the 1,002
approved lender of any loan or loan plan guaranteed by the 1,003
commission, including applications therefor and terms and 1,004
25
repayment thereof, and to establish the conditions for payment by 1,005
the commission to the approved lender of the guarantee on any 1,006
loan. The commission may also enter into contracts with any 1,007
approved lender to provide assistance to lenders in the 1,008
administration of loans. No moneys of approved lenders or 1,009
borrowers that are temporarily administered by the commission 1,010
pursuant to the contracts shall be considered public moneys. A
loan shall be defaulted when, after the expiration of a 1,011
prescribed period of nonpayment and reasonable collection 1,012
efforts, the approved lender makes application to the commission 1,013
for payment on the loan stating that the loan is in default in 1,014
accordance with the terms of the federal law, contract, or 1,015
regulations of the commission, executed under this division. In
accordance with the "Higher Education Amendments of 1968," 82 1,016
Stat. 1020, 20 U.S.C.A. 1087, as amended, if a borrower dies, 1,017
becomes permanently and totally disabled, or is adjudged 1,018
bankrupt, the commission shall discharge the borrower's liability 1,019
on the borrower's debt by repaying the unpaid principal and 1,020
interest due thereon.
(5) Sue and be sued in the name of the commission; 1,022
(6) Collect loans guaranteed by the commission on which 1,024
the commission has met its guarantee obligations. The commission 1,025
may, if it prefers, employ a private collection agency or 1,026
agencies for the purpose of collecting loans on which it has met 1,027
its guarantee obligations. 1,028
(7) Adopt rules, not inconsistent with sections 3351.05 to 1,031
3351.14 of the Revised Code, governing the guarantee of loans
made by the commission, and governing any other matters relating 1,032
to the activities of the commission; 1,033
(8) Participate in or administer education-related state 1,035
or federal financial aid programs on behalf of the state in 1,036
accordance with state and federal law. 1,037
(9) Perform any other acts necessary or appropriate to 1,040
carry out effectively the objects and purposes of the commission. 1,041
26
(B) The Ohio student aid commission, for the purposes of 1,043
sections 3351.05 to 3351.14 of the Revised Code, shall: 1,044
(1) Prescribe the academic status required for a resident, 1,046
qualified nonresident, or the parent of a resident or qualified 1,047
nonresident to obtain guarantee of a loan; 1,048
(2) Approve eligible institutions in which a student must 1,050
be enrolled or accepted for enrollment in order for the student 1,051
or the student's parent to be eligible for guaranteed loans. 1,052
(C) For the purposes of this chapter, "approved lender" 1,054
means any bank as defined in section 1101.01 of the Revised Code, 1,055
any domestic savings and loan association as defined in section 1,056
1151.01 of the Revised Code, any credit union as defined in 1,057
section 1733.01 of the Revised Code, any federal credit union 1,058
established pursuant to federal law, any insurance company 1,059
organized or authorized to do business in this state, any 1,060
eligible educational institution approved pursuant to division 1,061
(B)(2) of this section that applies for and receives formal 1,062
approval as an eligible lender by the commission pursuant to the 1,063
rules of the commission as they pertain to that institution, any 1,064
pension fund eligible under the "Higher Education Amendments of 1,065
1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary 1,066
market operation designated under division (D)(B) of this 1,067
section, or any secondary market operation established pursuant 1,068
to the "Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A. 1,069
1071, as amended, or under the laws of any state. 1,070
(D)(B) The governor may designate one nonprofit 1,072
corporation secondary market operation to be the single nonprofit 1,073
private agency designated by the state under the "Higher 1,074
Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D), 1,075
as amended. The commission shall enter into appropriate 1,076
contracts with the designated secondary market operation that 1,077
shall be on not less favorable terms than those contracts entered 1,078
into by the commission with any other approved lender. No 1,079
approval by the commission shall be necessary for the transfer of 1,080
27
loans by any approved lender to the designated secondary market 1,081
operation.
(E)(C) The nonprofit corporation designated by the 1,083
governor under division (D)(B) of this section as the private 1,084
agency secondary market operation shall be considered to be an 1,085
agency of the state, in accordance with section 435(d)(1)(F) of 1,086
the "Higher Education Act of 1965," as amended, 101 Stat. 347, 20 1,087
U.S.C.A. 1085(d)(1)(F), AS AMENDED, exclusively for the purpose 1,088
of functioning as a secondary student loan market. The 1,090
corporation shall be considered a state agency only for the 1,091
purposes of this division and no other division or section of the 1,092
Revised Code regarding state agencies shall apply to the 1,093
corporation. No liability or obligation incurred by the 1,094
corporation shall be considered to be a liability or debt of the 1,095
state, nor shall the state be construed to act as guarantor of 1,096
any debt of the corporation.
(F)(D) The nonprofit corporation designated under division 1,098
(D)(B) of this section shall designate a separate nonprofit 1,099
corporation to operate exclusively for charitable and educational 1,100
purposes, complementing and supplementing the designating 1,101
corporation's secondary market operation for student loans 1,102
authorized under the "Higher Education Act of 1965," as amended, 1,103
101 Stat. 347, 20 U.S.C.A. 1085, AS AMENDED, and promoting the 1,104
general health and welfare of the state, the public interest, and 1,105
a public purpose through improving student assistance programs by 1,106
expanding access to higher education financing programs for 1,107
students and families in need of student financial aid. In 1,108
furtherance of such purposes, the separate nonprofit corporation 1,109
may do all of the following: 1,110
(1) Assist educational institutions in establishing 1,112
financial aid programs to help students obtain an economical 1,113
education; 1,114
(2) Encourage financial institutions to increase 1,116
educational opportunities by making funds available to both 1,117
28
students and educational institutions; 1,118
(3) Make available financial aid that supplements the 1,120
financial assistance provided by eligible and approved lenders 1,121
under state and federal programs; 1,122
(4) Develop and administer programs that do all of the 1,124
following: 1,125
(a) Provide financial aid and incidental student financial 1,127
aid information to students and their parents or other persons 1,128
responsible for paying educational costs of those students at 1,129
educational institutions; 1,130
(b) Provide financial aid and information relating to it 1,132
to and through educational institutions, enabling those 1,133
institutions to assist students financially in obtaining an 1,134
education and fully expanding their intellectual capacity and 1,135
skills; 1,136
(c) Better enable financial institutions to participate in 1,138
student loan programs and other forms of financial aid, assisting 1,139
students and educational institutions to increase education 1,140
excellence and accessibility. 1,141
(G)(E) The nonprofit corporation designated under 1,143
authority of division (F)(D) of this section shall do both of the 1,144
following: 1,145
(1) Establish the criteria, standards, terms, and 1,147
conditions for participation by students, parents, educational 1,148
institutions, and financial institutions in that corporation's 1,149
programs; 1,150
(2) Provide the governor a report of its programs and a 1,152
copy of its audited financial statements not later than one 1,153
hundred eighty days after the end of each fiscal year of the 1,154
corporation. 1,155
No liability, obligation, or debt incurred by the 1,157
corporation designated under authority of division (F)(D) of this 1,159
section or by any person under that corporation's programs shall
be, or be considered to be, a liability, obligation, or debt of, 1,160
29
or a pledge of the faith and credit of, the state, any political 1,161
subdivision of the state, or any state-supported or 1,162
state-assisted institution of higher education, nor shall the 1,163
state or any political subdivision of the state or any 1,164
state-supported or state-assisted institution of higher education 1,165
be or be construed to act as an obligor under or guarantor of any 1,166
liability, obligation, or debt of that corporation or of any 1,167
person under that corporation's programs or incur or be construed 1,168
to have incurred any other liability, obligation, or debt as a 1,169
result of any acts of the corporation. 1,170
(H)(F) The nonprofit corporation designated under 1,172
authority of division (F)(D) of this section shall not be deemed 1,173
to qualify by reason of the designation as a guarantor or an 1,175
eligible lender under sections 435(d) and (j) of the "Higher 1,177
Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A. 1,178
1085(d) and (j), AS AMENDED. 1,179
(J) As used in division (K) of this section: 1,181
(1) "American depositary receipt" means a receipt for the 1,183
shares of a foreign corporation held by an American bank or trust 1,184
company, representing the deposit of an equivalent amount of 1,185
underlying foreign shares. 1,186
(2) "Commingled stock investment fund" means a pooling of 1,188
securities to create a fund of a certain type or classification 1,189
of stock wherein participants share in the total return of the 1,190
fund represented by dividends, interest, and appreciation. 1,191
(3) "Derivative instrument" means a financial obligation 1,193
that derives its precise value from the value of one or more 1,194
other instruments or assets at the same point in time. 1,195
(4) "Pass-through security" means a security, representing 1,197
pooled debt obligations repackaged as shares, that passes income 1,198
and principal from debtors through an intermediary to investors. 1,199
(K) The commission shall have full power to invest the 1,201
funds: 1,202
(1)(a) In bonds of the United States or this state, or in 1,204
30
bonds, notes, debentures, or other obligations the principal and 1,205
interest of which are guaranteed in full by the United States 1,206
government or this state, or those for which the credit of the 1,207
United States is pledged for the payment of the principal and 1,208
interest thereof; 1,209
(b) In derivative instruments based on the bonds, notes, 1,211
debentures, or obligations described in division (K)(1)(a) of 1,213
this section.
(2)(a) In bonds, notes, debentures, or any other 1,215
obligations or securities issued by any federal government agency 1,216
presently or in the future established by act of congress; 1,217
(b) In derivative instruments based on the bonds, notes, 1,219
debentures, obligations, or securities described in division 1,221
(K)(2)(a) of this section.
(3)(a) In bonds, notes, certificates of indebtedness, or 1,223
other obligations of the state; any county, township, municipal 1,224
corporation, school district, conservancy district, or sanitary 1,225
district of the state; or any other legally constituted taxing or 1,226
bond issuing authority, subdivision, or municipal corporation 1,227
within the state; 1,228
(b) In derivative instruments based on the bonds, notes, 1,230
certificates of indebtedness, or obligations described in 1,231
division (K)(3)(a) of this section. 1,232
(4) In revenue bonds issued by a taxing subdivision of the 1,234
state; 1,235
(5) In farm loan bonds issued under the "Federal Farm Loan 1,238
Act of 1916," 39 Stat. 360, 12 U.S.C.A. 641, as amended;
(6) In notes secured by mortgages and insured by the 1,240
federal housing commissioner, or the commissioner's successor or 1,241
assigns, or in debentures issued by the commissioner, which are 1,242
guaranteed as to principal and interest by the federal housing 1,243
administration, an agency of the United States government; 1,244
(7)(a) In bonds or other interest-bearing obligations of 1,246
any other state of the United States that, within ten years prior 1,248
31
to the making of the investment, has not defaulted for more than 1,249
ninety days in the payment of principal or interest on any of its 1,250
bonds or other interest-bearing obligations;
(b) In derivative instruments based on the bonds or 1,252
obligations described in division (K)(7)(a) of this section. 1,254
(8) In obligations issued by a federal home loan bank 1,256
created under the "Federal Home Loan Bank Act of 1932," 47 Stat. 1,257
725, 12 U.S.C.A. 1421, as amended; 1,258
(9) In shares, certificates, or other evidences of 1,260
deposits issued by a federal savings and loan association 1,261
organized and incorporated under the "Home Owners' Loan Act of 1,262
1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended, but only to 1,263
the extent that the shares or certificates or other evidences of 1,264
deposits are insured under subchapter IV of the "National Housing 1,266
Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;
(10) In bonds issued by the home owners' loan corporation 1,268
created under the "Home Owners' Loan Act of 1933," 48 Stat. 128, 1,270
12 U.S.C.A. 1461, as amended;
(11) In obligations issued by national mortgage 1,272
associations created under the "National Housing Act," 48 Stat. 1,274
1246 (1934), 12 U.S.C.A. 1701, as amended;
(12) In shares, certificates, or other evidences of 1,276
deposits issued by a state-chartered savings and loan association 1,277
organized under the laws of the state, which association has 1,278
obtained insurance of accounts as provided in subchapter IV of 1,279
the "National Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1,281
1701, as amended, but only to the extent that the evidences of 1,283
deposits are insured under the act, as amended;
(13) In savings accounts in a national bank located in the 1,285
state or a state bank located in and organized under the laws of 1,286
the state by depositing the funds therein, provided that no 1,287
deposit shall be made unless the deposits of the depository bank 1,288
are insured by the federal deposit insurance corporation, created 1,289
under the "Federal Deposit Insurance Corporation Act of 1933," 48 1,291
32
Stat. 162, 12 U.S.C.A. 264, as amended; and provided further, 1,292
that the deposit of the funds in any such savings accounts in any 1,293
one bank shall not exceed the sum insured under the act, as 1,294
amended; 1,295
(14) In bonds and notes backed by pools of first liens on 1,297
fee simple estates in land in this state that are improved by 1,298
one- to four-family residential structures; 1,299
(15) In bonds, notes, or other evidences of indebtedness 1,301
that are secured by first liens upon improved commercial real 1,302
property, upon condition that: 1,303
(a) No mortgage loan on any one property, at the time of 1,305
investment by the commission, exceeds ninety per cent of the 1,306
value of the real property securing the loan unless that portion 1,307
of the loan exceeding ninety per cent is insured or the mortgage 1,308
is a participating or convertible mortgage; 1,309
(b) The aggregate investment in mortgage loans on 1,311
commercial property that are not insured by the federal housing 1,312
commissioner shall not exceed ten per cent of the total value of 1,313
all funds invested by the commission. 1,314
(16) In pass-through securities backed by pools of first 1,316
liens on fee simple estates in land in this state that are 1,317
improved by one- to four-family residential structures; 1,318
(17) In pass-through securities backed by pools of first 1,320
liens upon improved commercial real property, provided that no 1,321
mortgage loan on any one property, at the time of investment by 1,322
the commission, exceeds ninety per cent of the value of the real 1,323
property securing the loan unless that portion of the loan 1,324
exceeding ninety per cent is insured; 1,325
(18) In the following corporate, trust, or partnership 1,327
obligations: 1,328
(a) Notes, bonds, debentures, conditional sales contracts, 1,330
equipment trust certificates, pass-through securities, other 1,331
fixed obligations, or evidences of indebtedness or interests that 1,332
are the obligations of a corporation, trust, or partnership; 1,333
33
provided that the obligor is incorporated or created under the 1,334
laws of the United States or any state thereof, or of the 1,335
District of Columbia; and that the obligations are rated at the 1,337
time of purchase the equivalent of an "A-" or higher quality
rating according to the Standard and Poor's rating service by at 1,339
least two standard rating services; or that for a period of five
fiscal years for which the necessary statistical data are 1,340
available next preceding the date of investment, the corporation, 1,341
trust, or partnership, as disclosed by its annual fiscal 1,342
statements, had an average annual pre-tax income plus its average 1,343
annual fixed charges at least equal to two times its average 1,344
annual fixed charges for the same period; provided, that in 1,345
neither of the last two years of that period shall the sum of its 1,346
annual net income and its annual fixed charges have been less 1,347
than two times its fixed charges for the same period. As used in 1,348
this division, "fixed charges" means interest on funded or 1,349
unfunded debt, contingent interest charges, amortization of debt 1,350
discount, and expense and one-third of rentals for leased 1,351
property, and includes, in the case of consolidated earnings 1,352
statements of parent and subsidiary entities, which shall be used 1,353
if available, all fixed charges of the subsidiaries. 1,354
(b) Derivative instruments based on the corporate, trust, 1,356
or partnership obligations described in division (K)(18)(a) of 1,358
this section;
(c) Various forms of commercial paper issued by any 1,360
corporation that is incorporated under the laws of the United 1,361
States or any state thereof; banker's acceptances that are 1,362
eligible for discount at any federal reserve bank; negotiable 1,363
time certificates of deposit issued by commercial banks and 1,364
domestic savings and loan associations as defined in section 1,365
1151.01 of the Revised Code, if the obligations mature within 1,366
nine months from the date of purchase; and repurchase agreements 1,367
secured by obligations of the United States treasury or federal 1,368
agencies or by any other money market instruments specified in 1,369
34
this section; 1,370
(d) Corporate debentures convertible or exchangeable into 1,372
common stock, provided that at the time of acquisition the 1,373
requirements of division (K)(20) of this section are met. 1,374
(19) In real estate located within the United States; 1,376
provided, that the aggregate of all investments made under this 1,377
division shall not exceed twenty-five per cent of the total value 1,378
of all funds invested by the commission, except that no 1,380
investment in real estate made under authority granted elsewhere 1,381
in this section shall be counted toward this limitation. 1,382
The commission may invest under this division in any 1,384
direct, indirect, or beneficial interest in real property, 1,385
including, but not limited to, improved or unimproved real 1,386
property, suitable or adaptable without excessive cost for more 1,387
than one use, and whether or not income-producing; mortgages; 1,388
deeds of trust; notes secured by real property; leaseholds; 1,389
leases; ground leases; air rights; limited partnerships; real 1,390
property interests owned, developed, or managed by joint ventures 1,391
or limited partnerships; variable notes secured by real property; 1,392
participations, created by any person regularly engaged in the 1,393
business of making, or acting as a broker of, mortgage loans, in 1,394
notes secured by real property; interests in collective 1,395
investment funds; corporations, trusts, or associations that 1,396
qualify as real estate investment trusts under section 856 of the 1,397
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 856, 1,399
as amended; interests in or real property for the development of 1,400
natural resources, excluding oil or gas; and condominium 1,401
interests, provided that liability is limited to the amount of 1,402
the investment. Unimproved real property or interests in the 1,403
property acquired shall be subject to a commercial development 1,404
plan or a natural resources development plan. 1,405
Real property purchased under this division may be improved 1,407
by the commission. Expenditures for improvements may include, 1,408
but are not limited to, expenditures for demolition of existing 1,409
35
structures, grading and landscaping, construction of new 1,410
structures, modification of existing structures, fixtures, 1,411
equipment, and related personal property. The commission may 1,412
manage the real property or may contract for management 1,413
responsibilities with firms having expertise in the management of 1,414
similar real property. 1,415
Real property purchased or improved under this division: 1,417
(a) Shall be geographically dispersed; 1,419
(b) May be leased to corporations, partnerships, or sole 1,421
proprietorships with or without purchase option provisions, and 1,422
lease payments may, but need not, include all or part of the 1,423
purchase and improvement costs; 1,424
(c) May be mortgaged to facilitate activities authorized 1,426
in this division. 1,427
(20)(a) In common and preferred stocks and American 1,429
depositary receipts, provided the stocks are issued or guaranteed 1,430
by a corporation created or existing under the laws of the United 1,431
States or any state thereof and the following criteria are met; 1,432
or the stocks or American depositary receipts are, at the time of 1,433
the commission's acquisition, included in the Standard and Poor's 1,435
Composite 500-Stock Index or 400 Mid-Cap Index, or listed on the 1,437
New York or American stock exchange; or the American depositary 1,439
receipts meet the following criteria: 1,440
(i) For a period of five fiscal years for which the 1,442
necessary statistical data are available next preceding the date 1,443
of investment, the corporation, as disclosed by its published 1,444
fiscal annual statements, has had an average annual net income 1,445
plus its average annual fixed charges at least equal to one and 1,446
one-half times the sum of its average annual dividend or 1,447
distribution requirement for preferred stock and its average 1,448
annual fixed charges for the same period; provided, during 1,449
neither of the last two years of the period shall the sum of its 1,450
annual net income and its annual fixed charges be less than one 1,451
and one-half times the sum of its dividend or distribution 1,452
36
requirements for preferred stock and its fixed charges for the 1,453
same period. As used in this paragraph, "fixed charges" means 1,454
interest on funded or unfunded debt, contingent interest charges, 1,455
amortization of debt discount, and expense and rentals for leased 1,456
property and, in the case of consolidated earnings statements of 1,457
parent and subsidiary corporations, includes all fixed charges 1,458
and preferred dividend or distribution requirements, if any, of 1,459
the subsidiaries. 1,460
(ii) The corporation has no arrears of dividends or 1,462
distributions on its preferred stock; 1,463
(iii) The common stock or American depositary receipt is 1,465
registered on a national securities exchange as provided in the 1,466
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.A. 77b, 1,469
or, if traded only in the over-the-counter market, at least five 1,470
member firms of the national association of securities dealers 1,471
make markets in the stock or American depositary receipt. 1,472
Registration is not required of the common stock of a bank that 1,473
is a member of the federal deposit insurance corporation or a 1,474
bank holding company and has capital funds, represented by 1,475
capital, surplus, and undivided profits, of at least twenty 1,476
million dollars; the common stock of a life insurance or an 1,477
insurance holding company that has capital funds, represented by 1,478
capital, special surplus funds, and unassigned surplus, of at 1,479
least fifty million dollars; or the common stock of a fire or 1,480
casualty insurance company, or a combination thereof, that has 1,481
capital funds represented by capital, net surplus, and voluntary 1,482
reserves, of at least fifty million dollars; 1,483
(iv) The preferred stock of the corporation, if any is 1,485
outstanding, qualifies for investment under division (K)(18)(a) 1,487
of this section;
(v) The corporation, having no preferred stock 1,489
outstanding, has had either earnings before interest and taxes 1,490
for the five fiscal years next preceding the date of investment 1,491
of at least twice the interest on all mortgages, bonds, 1,492
37
debentures, and funded debts, if any, after deduction of the 1,493
proper charges for replacements, depreciation, and obsolescence 1,494
or the corporation's senior subordinated debt obligations are 1,495
rated "A-" or higher quality rating according to the Standard and 1,496
Poor's rating service or the equivalent rating in another 1,497
standard rating service; 1,498
(vi) The corporation has paid a cash dividend or 1,500
distribution on its common stock in at least three years of the 1,501
five-year period next preceding the date of investment, and the 1,502
aggregate net earnings available for dividends or distributions 1,503
on the common stock of the corporation for the whole of the 1,504
period has been at least equal to the amount of the dividends or 1,505
distributions paid, except that ten per cent of the total value 1,506
of all funds invested by the commission may be invested in 1,507
nondividend paying common stocks; 1,508
(vii) In applying the earnings test under this division to 1,510
any issuing, assuming, or guaranteeing corporation, where the 1,511
corporation has acquired its property or any substantial part 1,512
thereof within a five-year period immediately preceding the date 1,513
of investment by consolidations, merger, or by the purchase of 1,514
all or a substantial portion of the property of any other 1,515
corporation or corporations, or has acquired the assets of any 1,516
unincorporated business enterprise by purchase or otherwise, net 1,517
income, fixed charges, and preferred dividends or distributions 1,518
of the several predecessor or constituent corporations or 1,519
enterprises shall be consolidated and adjusted so as to ascertain 1,520
whether or not the applicable requirements of this section have 1,521
been complied with. 1,522
(b) In derivative instruments based on the stocks or 1,524
American depositary receipts that qualify for investment under 1,525
division (K)(20)(a) of this section; 1,526
(c) In beneficial interests in commingled stock investment 1,528
funds; 1,529
(d) The total value of common and preferred stocks, 1,531
38
American depositary receipts, derivative instruments, and 1,532
commingled stock investment fund investments made under this 1,533
division shall not exceed fifty per cent of the total value of 1,534
all funds invested by the commission, provided: 1,535
(i) Not more than one and one-half per cent of the total 1,537
value of the funds is invested in the common stock of a single 1,538
corporation; 1,539
(ii) The total number of common shares in a single 1,541
corporation does not exceed ten per cent of the issued and 1,542
outstanding common stock of such corporation. 1,543
(e) As used in division (K)(20)(d) of this section, 1,545
"value" consists of cash, the par value of unpaid balance of all 1,546
unmatured or unpaid investments requiring the payment of a fixed 1,547
amount at payment date, and the cost of all other investments. 1,548
(21)(a) In debt or equity interests in either of the 1,550
following: 1,551
(i) Any corporation, partnership, proprietorship, or other 1,553
entity not otherwise meeting the investment requirements of this 1,554
section, provided more than one-half of its assets are within 1,555
this state, more than one-half of its employees are employed 1,556
within this state, or its principal office is located within this 1,557
state, and provided liability is limited to the amount of the 1,558
investment; 1,559
(ii) Venture capital firms having an office within this 1,561
state, provided that, as a condition of the commission making an 1,562
investment in a venture capital firm, the firm shall agree to use 1,563
its best efforts to make investments, in an aggregate amount at 1,564
least equal to the investment to be made by the commission in 1,565
that venture capital firm, in small businesses having their 1,566
principal offices within this state and having either more than 1,567
one-half of their assets within this state or more than one-half 1,568
of their employees employed within this state. 1,569
(b) Investments made under division (K)(21) of this 1,571
section shall not exceed in the aggregate five per cent of the 1,572
39
total value of all funds invested by the commission. 1,573
(c) As used in division (K)(21) of this section: 1,575
(i) "Venture capital firm" means any corporation, 1,577
partnership, proprietorship, or other entity, the principal 1,578
business of which is or will be the making of investments in 1,579
small businesses. 1,580
(ii) "Small business" means any corporation, partnership, 1,582
proprietorship, or other entity that either does not have more 1,583
than four hundred employees when the investment is made or would 1,584
qualify as a small business for the purpose of receiving 1,585
financial assistance from small business investment companies 1,586
licensed under the "Small Business Investment Act of 1958," 72 1,587
Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small 1,588
business administration. 1,589
(iii) "Equity interests" means limited partnership 1,591
interests and other equity interests in which liability is 1,592
limited to the amount of the investment, but does not mean 1,593
general partnership interests or other interests involving 1,594
general liability. 1,595
(22) In the following Canadian obligations, which shall 1,597
not exceed fifteen per cent of the total value of all funds 1,598
invested by the commission: bonds, debentures, notes, or other 1,600
obligations issued, guaranteed, or assumed as to both principal 1,601
and interest by the government of Canada, by any province of 1,602
Canada, or by any city of Canada that has a population of not 1,603
less than one hundred fifty thousand, if all of the following 1,604
apply:
(a) The faith and credit of the issuer, guarantor, or 1,606
assumer of the bonds, debentures, notes, or other obligations is 1,607
pledged for the payment of principal and interest thereof, and 1,608
the principal and interest thereof is payable in United States 1,610
funds, either unconditionally or at the option of the holder; 1,611
(b) Any such city, if the issuer, guarantor, or assumer is 1,613
a city, has power to levy taxes on the taxable real property 1,614
40
therein or to collect other revenues for the payment of both 1,615
principal and interest of the bonds, debentures, notes, or other 1,616
obligations without limitation of rate or amount; 1,617
(c) The issuer, guarantor, or assumer of the bonds, 1,619
debentures, notes, or other obligations has not within ten years 1,620
prior to the making of the investment defaulted in payment of 1,621
principal or interest of any debt evidenced by its bonds, 1,622
debentures, notes, or other obligations for more than ninety 1,623
days; 1,624
(d) The bonds, debentures, notes, or other obligations are 1,626
rated at the time of purchase the equivalent of an "A-" or higher 1,627
quality rating according to the Standard and Poor's rating 1,628
service by at least two standard rating services or, if not 1,629
rated, are certified in writing by two or more such services to 1,630
be of investment quality equivalent to or higher than the quality 1,631
of bonds rated an "A-". 1,632
(23) In obligations issued, assumed, or guaranteed by the 1,634
international bank for reconstruction and development, the Asian 1,635
development bank, the inter-American development bank, the 1,636
African development bank, the international finance corporation, 1,637
or other similar development bank in which the president, as 1,638
authorized by congress and on behalf of the United States, has 1,640
accepted membership; 1,641
(24) In general obligations backed by the full faith and 1,643
credit of the state of Israel. All interest and principal shall 1,644
be denominated and payable in United States funds. 1,645
(25) In debt or equity interests in or issued by foreign 1,647
entities or any instrument based on, derived from, or related to 1,648
those interests and foreign currency denominated contracts or 1,649
obligations. The investments made under this division shall not 1,650
exceed in the aggregate ten per cent of the total value of all 1,651
funds invested by the commission. 1,652
Sec. 3365.08. (A) A college that expects to receive or 1,661
receives reimbursement under section 3365.07 of the Revised Code 1,662
41
shall furnish to a participant all textbooks and materials 1,663
directly related to a course taken by the participant under 1,664
division (B) of section 3365.04 of the Revised Code. No college 1,665
shall charge such participant for tuition, textbooks, materials, 1,666
or other fees directly related to any such course. 1,667
(B) No student enrolled under this chapter in a course for 1,669
which credit toward high school graduation is awarded is eligible 1,670
for any SHALL RECEIVE DIRECT financial aid under Chapter 3351. of 1,672
the Revised Code THROUGH ANY STATE OR FEDERAL PROGRAM.
(C) If a school district provides transportation for 1,674
resident school students in grades eleven and twelve under 1,675
section 3327.01 of the Revised Code, a parent of a pupil enrolled 1,676
in a course under division (B) of section 3365.04 of the Revised 1,677
Code may apply to the board of education for full or partial 1,678
reimbursement for the necessary costs of transporting the student 1,679
between the secondary school he THE STUDENT attends and the 1,680
college in which he THE STUDENT is enrolled. Reimbursement may 1,681
be paid solely from funds received by the district under division 1,682
(K) of section 3317.024 of the Revised Code. The state board of 1,684
education shall establish guidelines, based on financial need, 1,685
under which a district may provide such reimbursement. 1,686
Sec. 3366.01. As used in this chapter, the following words 1,696
and terms have the following meanings unless the context 1,697
indicates a different meaning or intent:
(A) "Bond proceedings" means the order, trust, agreement, 1,700
indenture and other agreements, or amendments and supplements to 1,701
the foregoing, or any one or more or combination thereof, 1,702
authorizing or providing for the terms and conditions applicable 1,703
to, or providing for the issuance, security, or liquidity of, 1,704
obligations and the provisions contained in such obligations. 1,705
(B) "Bond service charges" means principal, including 1,708
mandatory sinking fund requirements for retirement of 1,709
obligations, and interest, and redemption premium, if any, 1,710
required to be paid on obligations.
42
(C) "Bond service fund" means the applicable fund and 1,713
accounts therein created in the bond proceedings for and pledged 1,714
to the payment of bond service charges, including all moneys and 1,715
investments, and earnings from investments, credited and to be 1,716
credited thereto.
(D) "Costs of attendance" means all costs of a student 1,719
incurred in connection with a program of study at an eligible 1,720
institution, as determined by the institution, including tuition; 1,721
instructional fees; room and board; books, computers, and 1,722
supplies; and other related fees, charges, and expenses. 1,723
(E) "Designated nonprofit corporation" means the nonprofit 1,726
corporation designated under division (F)(D) of section 3351.07 1,727
of the Revised Code to operate exclusively for charitable and 1,729
educational purposes by expanding access to higher education 1,730
financing programs for students and families in need of student 1,731
financial aid.
(F) "Education loan" means a loan made by an eligible 1,734
lender pursuant to the policy guidelines to or for the benefit of 1,736
a student for the purpose of financing part or all of the
student's costs of attendance. 1,737
(G) "Eligible borrower" means any of the following: 1,740
(1) Individuals who are residents of the state, and who 1,742
are attending and are in good standing in, or who have been 1,743
accepted for attendance at, any eligible institution located in 1,744
this state or elsewhere, on a part-time or full-time basis, to 1,745
pursue an associate, baccalaureate, or advanced degree or a 1,746
nursing diploma; 1,747
(2) Individuals who reside outside the state and who have 1,750
been accepted for attendance at, or who are attending and are in 1,751
good standing in, any eligible institution located in this state, 1,752
on a part-time or full-time basis, to pursue an associate,
baccalaureate, or advanced degree or a nursing diploma; 1,753
(3) Individuals who are parents or legal guardians of, or 1,756
other persons, as set forth in the policy guidelines, borrowing 1,757
43
under an education loan for the benefit of individuals meeting 1,758
requirements set forth in division (G)(1) or (2) of this section, 1,759
in order to assist them in paying costs of attendance. 1,760
(H)(1) "Eligible institution" means an institution 1,763
described in any of divisions (H)(1)(a), (b), or (c) of this 1,764
section that satisfies all of the requirements set forth in 1,766
divisions (H)(2), (3), and (4) of this section. 1,767
(a) The institution is a state-assisted post-secondary 1,770
educational institution within this state.
(b) The institution is a nonprofit institution within this 1,773
state having a certificate of authorization from the Ohio board 1,774
of regents pursuant to Chapter 1713. of the Revised Code. 1,775
(c) The institution is a post-secondary educational 1,778
institution similar to one described in division (H)(1)(a) or (b) 1,779
of this section that is located outside this state and that is 1,780
similarly approved by the appropriate agency of that state. 1,781
(2) The institution is accredited by the appropriate 1,783
regional and, when appropriate, professional accrediting 1,784
associations within whose jurisdiction it falls. 1,785
(3) The institution satisfies the eligibility requirements 1,788
for participation in the federal family education loan program 1,789
authorized under Title IV, Part B, of the "Higher Education Act 1,791
of 1965," 20 U.S.C.A. 1071 et seq., as amended, as long as that 1,793
program remains in existence.
(4) The institution satisfies the other conditions set 1,795
forth in the policy guidelines. 1,796
(I) "Eligible lender" means a bank, national banking 1,798
association, savings bank, savings and loan association, or 1,799
credit union having an office in this state that satisfies the 1,800
criteria for eligible lenders established pursuant to the policy 1,801
guidelines. 1,802
(J) "Governmental agency" means the state and any state 1,805
department, division, commission, institution, or authority; the 1,806
United States or any agency thereof; or any agency, commission, 1,807
44
or authority established pursuant to an interstate compact or 1,808
agreement; or any combination of the foregoing. 1,809
(K) "Issuing authority" means the treasurer of state, or 1,812
the officer who by law performs the functions of the treasurer of 1,813
state.
(L) "Obligations" means the bonds, notes, or securities of 1,816
this state issued by the issuing authority pursuant to this 1,817
chapter.
(M) "Person" means any individual, corporation, business 1,820
trust, estate, trust, partnership, or association, any federal, 1,821
state, interstate, regional, or local governmental agency, any 1,822
subdivision of the state, or any combination of these. 1,823
(N) "Pledged receipts" means, to the extent the following 1,826
are pledged by the bond proceedings for the payment of bond 1,827
service charges: all receipts representing moneys accruing from 1,828
or in connection with the repayment of education loans, including 1,829
interest and payments from any guarantee or insurance in respect 1,830
to such education loans; accrued interest received from the sale 1,831
of obligations; the balances in the special funds; income from 1,832
the investment of the special funds; all right, title, or 1,833
interest of the state in any education loans and any guarantees 1,834
or insurance in respect thereof; all right, title, and interest 1,835
of the designated nonprofit corporation in the education loans 1,836
and any guarantees or insurance in respect thereof, and any money 1,837
representing the proceeds of obligations or any income from or 1,838
interest on those proceeds; or any other gifts, grants, 1,839
donations, and pledges and any income and receipts therefrom, 1,840
available and pledged for the payment of bond service charges. 1,841
(O) "Policy guidelines" means the rules adopted pursuant 1,844
to division (A) of section 3366.03 of the Revised Code. 1,845
(P) "Proceeds loan" means the transfer, pursuant to a loan 1,848
agreement or agency agreement, of the proceeds of the 1,849
obligations, or the deposit of the proceeds of the obligations 1,850
with a trustee in trust under a trust agreement, indenture, or 1,851
45
other trust document under the bond proceedings pending their 1,852
disbursement for the purposes authorized by this chapter. 1,853
(Q) "Resident" means any student who would qualify as a 1,856
resident of this state for state subsidy and tuition surcharge 1,857
purposes under rules adopted by the Ohio board of regents under 1,858
section 3333.31 of the Revised Code. 1,859
(R) "Special funds" or "funds" means the bond service fund 1,862
and any other funds, including reserve funds, created under the 1,863
bond proceedings, including all moneys and investments, and 1,864
earnings from investment, credited and to be credited thereto. 1,865
(S) "Student" means an individual described in division 1,868
(G)(1) or (2) of this section who meets requirements established 1,869
under the policy guidelines. "Student" includes dependent and 1,870
independent undergraduate, graduate, and professional students. 1,871
(T) "Subdivision" has the same meaning as in division (MM) 1,874
of section 133.01 of the Revised Code. 1,875
Sec. 4501.02. (A) There is hereby created in the 1,884
department of public safety a bureau of motor vehicles, which 1,885
shall be administered by a registrar of motor vehicles. The 1,886
registrar shall be appointed by the director of public safety and 1,887
shall serve at his THE DIRECTOR'S pleasure. 1,888
The registrar shall administer the laws of the state 1,890
relative to the registration of and certificates of title for 1,891
motor vehicles, and the licensing of motor vehicle dealers, motor 1,892
vehicle leasing dealers, distributors, and salespersons, and of 1,893
motor vehicle salvage dealers, salvage motor vehicle auctions, 1,894
and salvage motor vehicle pools. The registrar also shall, in 1,895
accordance with section 4503.61 of the Revised Code, take those 1,896
steps necessary to enter this state into membership in the 1,897
international registration plan and carry out his THE REGISTRAR'S 1,899
other duties under that section. The registrar, with the 1,900
approval of the director of public safety, may do all of the 1,901
following:
(1) Adopt such forms and rules as are necessary to carry 1,903
46
out all laws he THE REGISTRAR is required to administer; 1,904
(2) Appoint such number of assistants, deputies, clerks, 1,906
stenographers, and other employees as are necessary to carry out 1,907
such laws; 1,908
(3) Acquire or lease such facilities as are necessary to 1,910
carry out the duties of his THE REGISTRAR'S office. 1,911
The registrar shall give a bond for the faithful 1,913
performance of his THE REGISTRAR'S duties in such amount and with 1,915
such security as the director approves. When in the opinion of 1,916
the director it is advisable, any deputy or other employee may be 1,917
required to give bond in such amount and with such security as 1,918
the director approves. In the discretion of the director, the 1,919
bonds authorized to be taken on deputies or other employees may 1,920
be individual, schedule, or blanket bonds. 1,921
The registrar shall furnish the director of the Ohio 1,923
student aid commission with the information required under 1,924
division (C) of section 3351.071 of the Revised Code. 1,925
The director of public safety may investigate the 1,927
activities of the bureau and have access to its records at any 1,928
time, and the registrar shall make a report to the director at 1,929
any time upon request. 1,930
All laws relating to the licensing of motor vehicle 1,932
dealers, motor vehicle leasing dealers, distributors, and 1,933
salespersons, and of motor vehicle salvage dealers, salvage motor 1,934
vehicle auctions, and salvage motor vehicle pools, designating 1,935
and granting power to the registrar shall be liberally construed 1,936
to the end that the practice or commission of fraud in the 1,937
business of selling motor vehicles and of disposing of salvage 1,938
motor vehicles may be prohibited and prevented. 1,939
(B) There is hereby created in the department of public 1,941
safety a division of emergency medical services, which shall be 1,942
administered by an executive director of emergency medical 1,943
services appointed under section 4765.03 of the Revised Code. 1,944
Section 2. That existing sections 111.15, 131.15, 135.18, 1,946
47
135.181, 3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 1,948
and sections 1107.36, 3351.05, 3351.06, 3351.071, 3351.08, 1,949
3351.09, 3351.10, 3351.11, 3351.12, 3351.13, and 3351.131 of the 1,950
Revised Code are hereby repealed.
Section 3. Section 135.18 of the Revised Code is presented 1,952
in this act as a composite of the section as amended by both Am. 1,954
Sub. S.B. 81 and Am. Sub. H.B. 538 of the 121st General Assembly,
with the new language of neither of the acts shown in capital 1,956
letters. Section 135.181 of the Revised Code is presented in 1,957
this act as a composite of the section as amended by Am. Sub. 1,958
S.B. 81, Am. Sub. S.B. 293, and Am. Sub. H.B. 538 of the 121st 1,959
General Assembly, with the new language of none of the acts shown 1,961
in capital letters. Sections 3333.25 and 3351.07 of the Revised 1,962
Code is presented in this act as composites of the sections as 1,963
amended by both Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the 1,964
121st General Assembly, with the new language of neither of the 1,966
acts shown in capital letters. This is in recognition of the 1,967
principle stated in division (B) of section 1.52 of the Revised 1,968
Code that such amendments are to be harmonized where not 1,969
substantively irreconcilable and constitutes a legislative 1,970
finding that such is the resulting version in effect prior to the 1,971
effective date of this act.