As Reported by the House Finance and Appropriations Committee 1
122nd General Assembly 4
Regular Session Am. H. B. No. 562 5
1997-1998 6
REPRESENTATIVES DAMSCHRODER-TERWILLEGER-TAYLOR-GARCIA-MOTTLEY- 8
AMSTUTZ-OPFER 9
11
A B I L L
To amend sections 111.15, 131.15, 135.18, 135.181, 13
3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 14
4501.02 and to repeal sections 3351.05, 3351.06, 16
3351.071, 3351.08, 3351.09, 3351.10, 3351.11, 17
3351.12, 3351.13, and 3351.131 of the Revised 19
Code to remove statutory references to the Ohio 20
Student Aid Commission. 21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That sections 111.15, 131.15, 135.18, 135.181, 24
3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 of the 25
Revised Code be amended to read as follows: 26
Sec. 111.15. (A) As used in this section: 35
(1) "Rule" includes any rule, regulation, bylaw, or 37
standard having a general and uniform operation adopted by an 38
agency under the authority of the laws governing the agency; any 39
appendix to a rule; and any internal management rule. "Rule" 40
does not include any guideline adopted pursuant to section 41
3301.0714 of the Revised Code, any order respecting the duties of 42
employees, any finding, any determination of a question of law or 43
fact in a matter presented to an agency, or any rule promulgated 44
pursuant to Chapter 119., section 4141.14, division (C)(1) or (2) 45
of section 5117.02, or section 5703.14 of the Revised Code. 46
"Rule" includes any amendment or rescission of a rule. 47
(2) "Agency" means any governmental entity of the state 49
and includes, but is not limited to, any board, department, 50
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division, commission, bureau, society, council, institution, 51
state college or university, community college district, 52
technical college district, or state community college. "Agency" 53
does not include the general assembly or any court. 54
(3) "Internal management rule" means any rule, regulation, 56
bylaw, or standard governing the day-to-day staff procedures and 57
operations within an agency. 58
(4) "Substantive revision" has the same meaning as in 60
division (J) of section 119.01 of the Revised Code. 61
(B)(1) Any rule, other than a rule of an emergency nature, 63
adopted by any agency pursuant to this section shall be effective 64
on the tenth day after the day on which the rule in final form 65
and in compliance with division (B)(3) of this section is filed 66
as follows: 67
(a) Two certified copies of the rule shall be filed with 69
both the secretary of state and the director of the legislative 70
service commission; 71
(b) Two certified copies of the rule shall be filed with 73
the joint committee on agency rule review. Division (B)(1)(b) of 74
this section does not apply to any rule to which division (D) of 75
this section does not apply. 76
An agency that adopts or amends a rule that is subject to 78
division (D) of this section shall assign a review date to the 80
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 81
assigned to a rule exceeds the five-year maximum, the review date 82
for the rule is five years after its effective date. A rule with 83
a review date is subject to review under section 119.032 of the 84
Revised Code. This paragraph does not apply to a rule of a state 86
college or university, community college district, technical
college district, or state community college. 87
If all copies are not filed on the same day, the rule shall 89
be effective on the tenth day after the day on which the latest 90
filing is made. If an agency in adopting a rule designates an 91
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effective date that is later than the effective date provided for 92
by division (B)(1) of this section, the rule if filed as required 93
by such division shall become effective on the later date 94
designated by the agency. 95
Any rule that is required to be filed under division (B)(1) 97
of this section is also subject to division (D) of this section 98
if not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), 100
or (8) of this section.
(2) A rule of an emergency nature necessary for the 102
immediate preservation of the public peace, health, or safety 103
shall state the reasons for the necessity. Copies of the 104
emergency rule, in final form and in compliance with division 105
(B)(3) of this section, shall be filed as follows: two certified 106
copies of the emergency rule shall be filed with both the 107
secretary of state and the director of the legislative service 108
commission, and one certified copy of the emergency rule shall be 109
filed with the joint committee on agency rule review. The 110
emergency rule is effective immediately upon the latest filing, 111
except that if the agency in adopting the emergency rule 112
designates an effective date, or date and time of day, that is 113
later than the effective date and time provided for by division 114
(B)(2) of this section, the emergency rule if filed as required 115
by such division shall become effective at the later date, or 116
later date and time of day, designated by the agency. 117
An emergency rule becomes invalid at the end of the 119
ninetieth day it is in effect. Prior to that date, the agency 120
may file the emergency rule as a nonemergency rule in compliance 121
with division (B)(1) of this section. The agency may not refile 122
the emergency rule in compliance with division (B)(2) of this 123
section so that, upon the emergency rule becoming invalid under 124
such division, the emergency rule will continue in effect without 125
interruption for another ninety-day period. 126
(3) An agency shall file a rule under division (B)(1) or 128
(2) of this section in compliance with the following standards 129
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and procedures: 130
(a) The rule shall be numbered in accordance with the 132
numbering system devised by the director for the Ohio 133
administrative code. 134
(b) The rule shall be prepared and submitted in compliance 136
with the rules of the legislative service commission. 137
(c) The rule shall clearly state the date on which it is 139
to be effective and the date on which it will expire, if known. 140
(d) Each rule that amends or rescinds another rule shall 142
clearly refer to the rule that is amended or rescinded. Each 143
amendment shall fully restate the rule as amended. 144
If the director of the legislative service commission or 146
the director's designee gives an agency written notice pursuant 148
to section 103.05 of the Revised Code that a rule filed by the 149
agency is not in compliance with the rules of the legislative 150
service commission, the agency shall within thirty days after 151
receipt of the notice conform the rule to the rules of the 152
commission as directed in the notice. 153
(C) All rules filed pursuant to divisions (B)(1)(a) and 155
(2) of this section shall be recorded by the secretary of state 156
and the director under the title of the agency adopting the rule 157
and shall be numbered according to the numbering system devised 158
by the director. The secretary of state and the director shall 159
preserve the rules in an accessible manner. Each such rule shall 160
be a public record open to public inspection and may be lent to 161
any law publishing company that wishes to reproduce it. 162
(D) At least sixty days before a board, commission, 164
department, division, or bureau of the government of the state 165
files a rule under division (B)(1) of this section, it shall file 166
two copies of the full text of the proposed rule with the joint 168
committee on agency rule review, and the proposed rule is subject 171
to legislative review and invalidation under division (I) of 172
section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive 173
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revision in a proposed rule after it is filed with the joint 174
committee, the state board, commission, department, division, or 176
bureau shall promptly file two copies of the full text of the 178
proposed rule in its revised form with the joint committee. The 179
latest version of a proposed rule as filed with the joint 180
committee supersedes each earlier version of the text of the same 182
proposed rule. Except as provided in division (F) of this 183
section, a state board, commission, department, division, or 184
bureau shall attach one copy of the rule summary and fiscal 185
analysis prepared under section 121.24 or 127.18 of the Revised 186
Code, or both, to each copy of a proposed rule, and to each copy 187
of a proposed rule in revised form, that is filed under this 188
division. 189
As used in this division, "commission" includes the public 191
utilities commission when adopting rules under a federal or state 192
statute.
This division does not apply to any of the following: 194
(1) A proposed rule of an emergency nature; 196
(2) A rule proposed under section 1121.05, 1121.06, 198
1155.18, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40, 199
4123.411, 4123.44, or 4123.442 of the Revised Code; 201
(3) A rule proposed by an agency other than a board, 203
commission, department, division, or bureau of the government of 204
the state; 205
(4) A proposed internal management rule of a board, 207
commission, department, division, or bureau of the government of 208
the state; 209
(5) A rule proposed by the Ohio student aid commission 211
that complies with a federal law or rule, so long as the proposed 212
rule contains both of the following: 213
(a) A statement that it is proposed for the purpose of 215
complying with a federal law or rule; 216
(b) A citation to the federal law or rule that requires 218
compliance. 219
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(6) Any proposed rule that must be adopted verbatim by an 221
agency pursuant to federal law or rule, to become effective 222
within sixty days of adoption, in order to continue the operation 223
of a federally reimbursed program in this state, so long as the 224
proposed rule contains both of the following: 225
(a) A statement that it is proposed for the purpose of 227
complying with a federal law or rule; 228
(b) A citation to the federal law or rule that requires 230
verbatim compliance. 231
(7)(6) An initial rule proposed by the director of health 233
to impose safety standards, quality-of-care standards, and 234
quality-of-care data reporting requirements with respect to a 235
health service specified in section 3702.11 of the Revised Code, 236
or an initial rule proposed by the director to impose quality 238
standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised 239
Code requires that the rule be adopted under this section; 240
(8)(7) A rule of the state lottery commission pertaining 242
to instant game rules. 243
(E) Whenever a state board, commission, department, 245
division, or bureau files a proposed rule or a proposed rule in 246
revised form under division (D) of this section, it shall also 247
file one copy of the full text of the same proposed rule or 248
proposed rule in revised form with the secretary of state and two 249
copies thereof with the director of the legislative service 250
commission. Except as provided in division (F) of this section, 251
a state board, commission, department, division, or bureau shall 252
attach a copy of the rule summary and fiscal analysis prepared 253
under section 121.24 or 127.18 of the Revised Code, or both, to 254
each copy of a proposed rule or proposed rule in revised form 255
that is filed with the secretary of state or the director of the 256
legislative service commission. 257
(F) Except as otherwise provided in this division, the 259
auditor of state or the auditor of state's designee is not 260
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required to attach a rule summary and fiscal analysis to any copy 262
of a proposed rule, or proposed rule in revised form, that the 263
auditor of state proposes under section 117.12, 117.19, 117.38, 265
or 117.43 of the Revised Code and files under division (D) or (E) 266
of this section. If, however, the auditor of state or the 267
designee prepares a rule summary and fiscal analysis of the 268
original version of such a proposed rule for purposes of 269
complying with section 121.24 of the Revised Code, the auditor of 270
state or designee shall attach a copy of the rule summary and 271
fiscal analysis to each copy of the original version of the 272
proposed rule filed under division (D) or (E) of this section. 273
Sec. 131.15. (A) Any depositor enumerated in section 282
131.11 of the Revised Code shall make ample provisions for the 283
safekeeping of hypothecated securities. The interest thereon, 284
when paid, shall be turned over to the bank or trust company if 285
it is not in default. The depositor may make provisions for the 286
exchange and release of securities and the substitution of other 287
securities or of an undertaking therefor except in those cases 288
where the public depository has deposited eligible securities 289
with a trustee for safekeeping. 290
(B) When the public depository has deposited eligible 292
securities described in division (B)(1) of section 135.18 of the 293
Revised Code with a trustee for safekeeping, the public 294
depository may at any time substitute or exchange eligible 295
securities described in division (B)(1) of section 135.18 of the 296
Revised Code having a current market value equal to or greater 297
than the current market value of the securities then on deposit 298
and for which they are to be substituted or exchanged, without 299
specific authorization from the depositor of any substitution or 300
exchange. 301
(C) When the public depository has deposited eligible 303
securities described in division (B)(2) to (10)(9) of section 304
135.18 of the Revised Code with a trustee for safekeeping, the 305
public depository may at any time substitute or exchange eligible 306
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securities having a current market value equal to or greater than 307
the current market value of the securities then on deposit and 308
for which they are to be substituted or exchanged without 309
specific authorization of any depositor of any such substitution 310
or exchange only if: 311
(1) The depositor has authorized the public depository to 313
make such substitutions or exchanges on a continuing basis during 314
a specified period without prior approval of each substitution or 315
exchange. Such authorization may be effected by the depositor 316
sending to the trustee a written notice stating that substitution 317
may be effected on a continuing basis during a specified period 318
that shall not extend beyond the end of the period of designation 319
during which the notice is given. "Period of designation" as 320
used in this section means the period under section 135.12 of the 321
Revised Code for the award of inactive funds of the subdivision 322
of which the depositor is an officer or employee. The trustee 323
may rely upon such notice and upon the period of authorization 324
stated therein and upon the period of designation stated therein. 325
(2) No continuing authorization for substitution has been 327
given by the depositor, the public depository notifies the 328
depositor and the trustee of an intended substitution or 329
exchange, and the depositor fails to object to the trustee as to 330
the eligibility or market value of the securities being 331
substituted within ten calendar days after the date appearing on 332
the notice of proposed substitution. The notice to the depositor 333
and to the trustee shall be given in writing and delivered 334
personally or by certified mail with a return receipt requested. 335
The trustee may assume in any case that the notice has been 336
delivered to the depositor. In order for objections of the 337
depositor to be effective, receipt of the objections must be 338
acknowledged in writing by the trustee. 339
(3) The depositor gives written authorization for a 341
substitution or exchange of specific securities. 342
(D) The public depository shall notify the depositor of 344
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any substitution or exchange under division (C)(1) or (2) of this 345
section. If the depository designates a trustee qualified under 346
section 135.18 of the Revised Code to act as such for the 347
safekeeping of securities, the depositor shall accept the written 348
receipt of the designated trustee, describing the securities that 349
have been deposited with the trustee by the public depository, as 350
and for a hypothecation of such securities and issue to the 351
depository his THE DEPOSITOR'S written acknowledgment to that 352
effect, keeping a copy thereof in his THE DEPOSITOR'S office. 353
Thereupon, all such securities pledged and deposited with the 354
trustee are deemed hypothecated and deposited with the depositor, 355
for all the purposes of sections 131.13 to 131.16 of the Revised 356
Code. The trustee shall hold the securities for the account of 357
the depositor and the depository as their respective rights to 358
and interests in such securities under said sections appear and 359
are asserted by written notice to or demand upon the trustee. 360
Notwithstanding the fact that a public depository is 362
required to pledge eligible securities in certain amounts to 363
secure deposits of public moneys, a trustee shall have no duty or 364
obligation to determine the eligibility, market value, or face 365
value of any securities deposited with the trustee by a public 366
depository. This applies in all situations including, without 367
limitation, a substitution or exchange of securities. 368
Sec. 135.18. (A) The treasurer, before making the initial 377
deposit in a public depository pursuant to an award made under 378
sections 135.01 to 135.21 of the Revised Code, shall require the 379
institution designated as a public depository to pledge to and 380
deposit with the treasurer, as security for the repayment of all 381
public moneys to be deposited in the public depository during the 382
period of designation pursuant to the award, eligible securities 383
of aggregate market value equal to the excess of the amount of 384
public moneys to be at the time so deposited, over and above such 385
portion or amount of such moneys as is at such time insured by 386
the federal deposit insurance corporation or by any other agency 387
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or instrumentality of the federal government, or the treasurer 388
may require the institution to deposit with the treasurer surety 389
company bonds which, when executed, shall be for an amount equal 390
to such excess amount. In the case of any deposit other than the 391
initial deposit made during the period of designation, the amount 392
of the aggregate market value of securities required to be 393
pledged and deposited, or of the surety company bonds required to 394
be deposited, shall be equal to the difference between the amount 395
of public moneys on deposit in such public depository plus the 396
amount to be so deposited, minus the portion or amount of the 397
aggregate as is at the time insured as provided in this section. 398
The treasurer may require additional eligible securities to be 399
deposited to provide for any depreciation which may occur in the 400
market value of any of the securities so deposited. 401
(B) The following securities shall be eligible for the 403
purposes of this section: 404
(1) Bonds, notes, or other obligations of the United 406
States; or bonds, notes, or other obligations guaranteed as to 407
principal and interest by the United States or those for which 408
the faith of the United States is pledged for the payment of 409
principal and interest thereon, by language appearing in the 410
instrument specifically providing such guarantee or pledge and 411
not merely by interpretation or otherwise; 412
(2) Bonds, notes, debentures, letters of credit, or other 414
obligations or securities issued by any federal government agency 415
or instrumentality, or the export-import bank of Washington; 416
bonds, notes, or other obligations guaranteed as to principal and 417
interest by the United States or those for which the faith of the 418
United States is pledged for the payment of principal and 419
interest thereon, by interpretation or otherwise and not by 420
language appearing in the instrument specifically providing such 421
guarantee or pledge;
(3) Obligations of or fully insured or fully guaranteed by 423
the United States or any federal government agency or 424
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instrumentality;
(4) Obligations partially insured or partially guaranteed 426
by any federal agency or instrumentality; 427
(5) Obligations of or fully guaranteed by the federal 429
national mortgage association, federal home loan mortgage 430
corporation, federal farm credit bank, or student loan marketing 431
association;
(6) Bonds and other obligations of this state; 433
(7) Bonds and other obligations of any county, township, 435
school district, municipal corporation, or other legally 436
constituted taxing subdivision of this state, which is not at the 437
time of such deposit, in default in the payment of principal or 438
interest on any of its bonds or other obligations, for which the 439
full faith and credit of the issuing subdivision is pledged; 441
(8) Bonds of other states of the United States which have 443
not during the ten years immediately preceding the time of such 444
deposit defaulted in payments of either interest or principal on 445
any of their bonds; 446
(9) Obligations guaranteed as to principal and interest by 448
the Ohio student aid commission; 449
(10) Shares of no-load money market mutual funds 451
consisting exclusively of obligations described in division 452
(B)(1) or (2) of this section and repurchase agreements secured 453
by such obligations. 454
(C) If the public depository fails to pay over any part of 456
the public deposit made therein as provided by law, the treasurer 457
shall sell at public sale any of the bonds or other securities 458
deposited with the treasurer pursuant to this section or section 459
131.09 of the Revised Code, or shall draw on any letter of credit 460
to the extent of such failure to pay. Thirty days' notice of 461
such sale shall be given in a newspaper of general circulation at 462
Columbus, in the case of the treasurer of state, and at the 463
county seat of the county in which the office of the treasurer is 464
located, in the case of any other treasurer. When a sale of 465
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bonds or other securities has been so made and upon payment to 466
the treasurer of the purchase money, the treasurer shall transfer 467
such bonds or securities whereupon the absolute ownership of such 468
bonds or securities shall pass to the purchasers. Any surplus 469
remaining after deducting the amount due the state or subdivision 470
and expenses of sale shall be paid to the public depository. 471
(D) An institution designated as a public depository may, 473
by written notice to the treasurer, designate a qualified trustee 474
and deposit the eligible securities required by this section with 475
the trustee for safekeeping for the account of the treasurer and 476
the institution as a public depository, as their respective 477
rights to and interests in such securities under this section may 478
appear and be asserted by written notice to or demand upon the 479
trustee. In such case, the treasurer shall accept the written 480
receipt of the trustee describing the securities which have been 481
deposited with the trustee by the public depository, a copy of 482
which shall also be delivered to the public depository. 483
Thereupon all such securities so deposited with the trustee are 484
deemed to be pledged with the treasurer and to be deposited with 485
the treasurer, for all the purposes of this section. 486
(E) The governing board may make provisions for the 488
exchange and release of securities and the substitution of other 489
eligible securities therefor except where the public depository 490
has deposited eligible securities with a trustee for safekeeping 491
as provided in this section. 492
(F) When the public depository has deposited eligible 494
securities described in division (B)(1) of this section with a 495
trustee for safekeeping, the public depository may at any time 496
substitute or exchange eligible securities described in division 497
(B)(1) of this section having a current market value equal to or 498
greater than the current market value of the securities then on 499
deposit and for which they are to be substituted or exchanged, 500
without specific authorization from any governing board, boards, 501
or treasurer of any such substitution or exchange. 502
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(G) When the public depository has deposited eligible 504
securities described in divisions (B)(2) to (10)(9) of this 505
section with a trustee for safekeeping, the public depository may 506
at any time substitute or exchange eligible securities having a 507
current market value equal to or greater than the current market 508
value of the securities then on deposit and for which they are to 509
be substituted or exchanged without specific authorization of any 510
governing board, boards, or treasurer of any such substitution or 511
exchange only if: 512
(1) The treasurer has authorized the public depository to 514
make such substitution or exchange on a continuing basis during a 515
specified period without prior approval of each substitution or 516
exchange. Such authorization may be effected by the treasurer 517
sending to the trustee a written notice stating that substitution 518
may be effected on a continuing basis during a specified period 519
which shall not extend beyond the end of the period of 520
designation during which the notice is given. The trustee may 521
rely upon such notice and upon the period of authorization stated 522
therein and upon the period of designation stated therein. 523
(2) No continuing authorization for substitution has been 525
given by the treasurer, the public depository notifies the 526
treasurer and the trustee of an intended substitution or 527
exchange, and the treasurer fails to object to the trustee as to 528
the eligibility or market value of the securities being 529
substituted within ten calendar days after the date appearing on 530
the notice of proposed substitution. The notice to the treasurer 531
and to the trustee shall be given in writing and delivered 532
personally or by certified or registered mail with a return 533
receipt requested. The trustee may assume in any case that the 534
notice has been delivered to the treasurer. In order for 535
objections of the treasurer to be effective, receipt of the 536
objections must be acknowledged in writing by the trustee. 537
(3) The treasurer gives written authorization for a 539
substitution or exchange of specific securities. 540
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(H) The public depository shall notify any governing 542
board, boards, or treasurer of any such substitution or exchange 543
under division (G)(1) or (2) of this section. Upon request from 544
the treasurer, the trustee shall furnish a statement of the 545
securities pledged against such public deposits. 546
(I) Any federal reserve bank or branch thereof located in 548
this state, without compliance with Chapter 1111. of the Revised 549
Code and without becoming subject to any other law of this state 552
relative to the exercise by corporations of trust powers 553
generally, is qualified to act as trustee for the safekeeping of 554
securities, under this section. Any institution mentioned in 555
section 135.03 of the Revised Code that holds a certificate of 556
qualification issued by the superintendent of financial 557
institutions or any institution complying with sections 1111.04,
1115.05, and 1111.06 of the Revised Code, is qualified to act as 559
trustee for the safekeeping of securities, other than those 560
belonging to itself, under this section. Upon application to the 561
superintendent in writing by any such institution, the
superintendent shall investigate the applicant and ascertain 563
whether or not it has been authorized to execute and accept 564
trusts in this state and has safe and adequate vaults and 565
efficient supervision thereof for the storage and safekeeping 566
within this state of such securities. If the superintendent 567
finds that the applicant has been so authorized and does have 568
such vaults and supervision thereof, the superintendent shall 569
approve the application and issue a certificate to that effect, 570
the original or any certified copy of which shall be conclusive 571
evidence that the institution therein named is qualified to act 572
as trustee for the purposes of this section with respect to 573
securities other than those belonging to itself.
Notwithstanding the fact that a public depository is 575
required to pledge eligible securities in certain amounts to 576
secure deposits of public moneys, a trustee shall have no duty or 577
obligation to determine the eligibility, market value, or face 578
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value of any securities deposited with the trustee by a public 579
depository. This applies in all situations including, without 580
limitation, a substitution or exchange of securities. 581
Any charges or compensation of a designated trustee for 583
acting as such under this section shall be paid by the public 584
depository and in no event shall be chargeable to the state or 585
the subdivision or to the treasurer or to any officer of the 586
state or subdivision. Such charges or compensation shall not be 587
a lien or charge upon the securities deposited for safekeeping 588
prior or superior to the rights to and interests in such 589
securities of the state or the subdivision or of the treasurer. 590
The treasurer and the treasurer's bondsmen BONDERS or surety 591
shall be relieved from any liability to the state or the 592
subdivision or to the public depository for the loss or 593
destruction of any securities deposited with a qualified trustee 594
pursuant to this section.
Sec. 135.181. (A) As used in this section: 606
(1) "Public depository" means that term as defined in 608
section 135.01 of the Revised Code, but also means an institution 609
which receives or holds any public deposits as defined in section 610
135.31 of the Revised Code. 611
(2) "Public deposits," "public moneys," and "treasurer" 613
mean those terms as defined in section 135.01 of the Revised 614
Code, but also have the same meanings as are set forth in section 615
135.31 of the Revised Code. 616
(3) "Subdivision" means that term as defined in section 618
135.01 of the Revised Code, but also includes a county. 619
(B) In lieu of the pledging requirements prescribed in 621
sections 135.18 and 135.37 of the Revised Code, an institution 622
designated as a public depository at its option may pledge a 623
single pool of eligible securities to secure the repayment of all 624
public moneys deposited in the institution and not otherwise 625
secured pursuant to law, provided that at all times the total 626
value of the securities so pledged, based on the valuations 627
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prescribed in division (C) of this section, is at least equal to 628
one hundred ten per cent of the total amount of all public 629
deposits to be secured by the pooled securities, including the 630
portion of such deposits covered by any federal deposit 631
insurance. Each such institution shall carry in its accounting 632
records at all times a general ledger or other appropriate 633
account of the total amount of all public deposits to be secured 634
by the pool, as determined at the opening of business each day, 635
and the total value of securities pledged to secure such 636
deposits. 637
(C) The following securities, at the specified valuations, 639
shall be eligible as collateral for the purposes of division (B) 640
of this section, provided no such securities pledged as 641
collateral are at any time in default as to either principal or 642
interest: 643
(1) Obligations of or fully insured or fully guaranteed by 645
the United States or any federal government agency or 646
instrumentality: at face value; 647
(2) Obligations partially insured or partially guaranteed 649
by any federal government agency or instrumentality: at face 650
value;
(3) Obligations of or fully guaranteed by the federal 652
national mortgage association, federal home loan mortgage 653
corporation, federal farm, credit bank, or student loan marketing 654
association: at face value; 655
(4) Obligations of any state, county, municipal 657
corporation, or other legally constituted authority of any state, 658
or any instrumentality of any state, county, municipal 659
corporation, or other authority, which are secured as to the 660
payment of principal and interest by the holding in escrow of 661
obligations of the United States for which the full faith and 662
credit of the United States is pledged: at face value; 663
(5) Obligations of this state, or any county or other 665
legally constituted authority of this state, or any 666
17
instrumentality of this state, or such county or other authority: 667
at face value; 668
(6) Obligations of any other state: at ninety per cent of 670
face value; 671
(7) Obligations of any county, municipal corporation, or 673
other legally constituted authority of any other state, or any 674
instrumentality of such county, municipal corporation, or other 675
authority: at eighty per cent of face value; 676
(8) Notes representing loans made to persons attending or 678
planning to attend eligible institutions of education and to 679
their parents, and insured or guaranteed by the United States or 680
any agency, department, or other instrumentality thereof, or 681
guaranteed by the Ohio student aid commission pursuant to 682
sections 3351.05 to 3351.14 of the Revised Code: at face value; 683
(9) Any other obligations the treasurer of state approves: 685
at the percentage of face value the treasurer of state 686
prescribes;
(10) Shares of no-load money market mutual funds 688
consisting exclusively of obligations described in division 689
(C)(1), (2), or (3) of this section and repurchase agreements 690
secured by such obligations: at face value. 691
(D) The state and each subdivision shall have an undivided 693
security interest in the pool of securities pledged by a public 694
depository pursuant to division (B) of this section in the 695
proportion that the total amount of the state's or subdivision's 696
public moneys secured by the pool bears to the total amount of 697
public deposits so secured. 698
(E) An institution designated as a public depository shall 700
designate a qualified trustee and deposit with the trustee for 701
safekeeping the eligible securities pledged pursuant to division 702
(B) of this section. The institution shall give written notice 703
of the qualified trustee to any treasurer or treasurers 704
depositing public moneys for which such securities are pledged. 705
The treasurer shall accept the written receipt of the trustee 706
18
describing the pool of securities so deposited by the depository, 707
a copy of which also shall be delivered to the depository. 708
(F) Any federal reserve bank or branch thereof located in 710
this state, without compliance with Chapter 1111. of the Revised 711
Code and without becoming subject to any other law of this state 714
relative to the exercise by corporations of trust powers 715
generally, is qualified to act as trustee for the safekeeping of 716
securities, under this section. Any institution mentioned in 717
section 135.03 or 135.32 of the Revised Code which holds a
certificate of qualification issued by the superintendent of 718
financial institutions or any institution complying with sections 720
1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to 721
act as trustee for the safekeeping of securities under this 722
section, other than those belonging to itself or to an affiliate 723
as defined in division (A) of section 1101.01 of the Revised 724
Code. Upon application to the superintendent in writing by any 725
such institution, the superintendent shall investigate the 727
applicant and ascertain whether or not it has been authorized to 728
execute and accept trusts in this state and has safe and adequate 729
vaults and efficient supervision thereof for the storage and 730
safekeeping of such securities. If the superintendent finds that 731
the applicant has been so authorized and does have such vaults 732
and supervision thereof, the superintendent shall approve the 733
application and issue a certificate to that effect, the original 735
or any certified copy of which shall be conclusive evidence that 736
the institution named therein is qualified to act as trustee for 737
the purposes of this section with respect to securities other 738
than those belonging to itself or to an affiliate. 739
(G) The public depository at any time may substitute, 741
exchange, or release eligible securities deposited with a 742
qualified trustee pursuant to this section, provided that such 743
substitution, exchange, or release does not reduce the total 744
value of the securities, based on the valuations prescribed in 745
division (C) of this section, to an amount that is less than one 746
19
hundred ten per cent of the total amount of public deposits as 747
determined pursuant to division (B) of this section. 748
(H) Notwithstanding the fact that a public depository is 750
required to pledge eligible securities in certain amounts to 751
secure deposits of public moneys, a trustee shall have no duty or 752
obligation to determine the eligibility, market value, or face 753
value of any securities deposited with the trustee by a public 754
depository. This applies in all situations including, but not 755
limited to, a substitution or exchange of securities, but 756
excluding those situations effectuated by division (I) of this 757
section in which the trustee is required to determine face and 758
market value. 759
(I) If the public depository fails to pay over any part of 761
the public deposits made therein as provided by law and secured 762
pursuant to division (B) of this section, the treasurer shall 763
give written notice of this failure to the qualified trustee 764
holding the pool of securities pledged against public moneys 765
deposited in the depository, and at the same time shall send a 766
copy of this notice to the depository. Upon receipt of such 767
notice, the trustee shall transfer to the treasurer for public 768
sale such of the pooled securities as may be necessary to produce 769
an amount equal to the deposits made by the treasurer and not 770
paid over, less the portion of such deposits covered by any 771
federal deposit insurance, plus any accrued interest due on such 772
deposits; however, such amount shall not exceed the state's or 773
subdivision's proportional security interest in the market value 774
of the pool as of the date of the depository's failure to pay 775
over the deposits, as such interest and value are determined by 776
the trustee. The treasurer shall sell at public sale any of the 777
bonds or other securities so transferred. Thirty days' notice of 778
such sale shall be given in a newspaper of general circulation at 779
Columbus, in the case of the treasurer of state, and at the 780
county seat of the county in which the office of the treasurer is 781
located, in the case of any other treasurer. When a sale of 782
20
bonds or other securities has been so made and upon payment to 783
the treasurer of the purchase money, the treasurer shall transfer 784
such bonds or securities whereupon the absolute ownership of such 785
bonds or securities shall pass to the purchasers. Any surplus 786
after deducting the amount due the state or subdivision and 787
expenses of sale shall be paid to the public depository. 788
(J) Any charges or compensation of a designated trustee 790
for acting as such under this section shall be paid by the public 791
depository and in no event shall be chargeable to the state or 792
subdivision or to the treasurer or to any officer of the state or 793
subdivision. Such charges or compensation shall not be a lien or 794
charge upon the securities deposited for safekeeping prior or 795
superior to the rights to and interests in such securities of the 796
state or subdivision or of the treasurer. The treasurer and the 797
treasurer's bondspersons bonders or surety shall be relieved from 798
any liability to the state or subdivision or to the public 799
depository for the loss or destruction of any securities 800
deposited with a qualified trustee pursuant to this section. 801
(K) In lieu of placing its unqualified endorsement on each 803
security, a public depository pledging securities pursuant to 804
division (B) of this section that are not negotiable without its 805
endorsement or assignment may furnish to the qualified trustee 806
holding the securities an appropriate resolution and irrevocable 807
power of attorney authorizing the trustee to assign the 808
securities. The resolution and power of attorney shall conform 809
to such terms and conditions as the trustee prescribes. 810
(L) Upon request of a treasurer no more often than four 812
times per year, a public depository shall report the amount of 813
public moneys deposited by the treasurer and secured pursuant to 814
division (B) of this section, and the total value, based on the 815
valuations prescribed in division (C) of this section, of the 816
pool of securities pledged to secure public moneys held by the 817
depository, including those deposited by the treasurer. Upon 818
request of a treasurer no more often than four times per year, a 819
21
qualified trustee shall report such total value of the pool of 820
securities deposited with it by the depository and shall provide 821
an itemized list of the securities in the pool. These reports 822
shall be made as of the date the treasurer specifies. 823
Sec. 3333.25. There is hereby created the Ohio academic 832
scholarship payment fund, which shall be in the custody of the 833
treasurer of state but shall not be a part of the state treasury. 834
The fund shall consist of all moneys appropriated for the fund by 835
the general assembly and other moneys otherwise made available to 836
the fund. The payment fund shall be used for the payment of Ohio 837
academic scholarships or for additional scholarships to recognize 838
outstanding academic achievement and ability. The Ohio board of 839
regents shall administer this section and establish rules for the 840
distribution and awarding of any additional scholarships. 841
The board may direct the treasurer of state to invest any 844
moneys in the payment fund not currently needed for scholarship 845
payments, in any kinds of investments in which moneys of the Ohio 846
student aid commission PUBLIC EMPLOYEES RETIREMENT SYSTEM may be 847
invested.
The instruments of title of all investments shall be 849
delivered to the treasurer of state or to a qualified trustee 850
designated by the treasurer of state as provided in section 851
135.18 of the Revised Code. The treasurer of state shall collect 852
both principal and investment earnings on all investments as they 853
become due and pay them into the fund. 854
All deposits to the fund shall be made in financial 856
institutions of this state secured as provided in section 135.18 857
of the Revised Code. 858
Sec. 3345.32. (A) As used in this section: 867
(1) "State university or college" means the institutions 869
described in section 3345.27 of the Revised Code, the 870
northeastern Ohio universities college of medicine, and the 871
medical college of Ohio at Toledo. 872
(2) "Resident" has the meaning specified by rule of the 874
22
Ohio board of regents. 875
(3) "Statement of selective service status" means a 877
statement certifying one of the following: 878
(a) That the individual filing the statement has 880
registered with the selective service system in accordance with 881
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 882
App. 453, as amended; 883
(b) That the individual filing the statement is not 885
required to register with the selective service for one of the 886
following reasons: 887
(i) The individual is under eighteen or over twenty-six 889
years of age; 890
(ii) The individual is on active duty with the armed 892
forces of the United States other than for training in a reserve 893
or national guard unit; 894
(iii) The individual is a nonimmigrant alien lawfully in 896
the United States in accordance with section 101 (a)(15) of the 897
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended; 898
(iv) The individual is not a citizen of the United States 900
and is a permanent resident of the Trust Territory of the Pacific 902
Islands or the Northern Mariana Islands. 903
(4) "Institution of higher education" means any eligible 905
institution approved by the student aid commission UNITED STATES 907
DEPARTMENT OF EDUCATION pursuant to Chapter 3351. of the Revised 908
Code THE "HIGHER EDUCATION ACT OF 1965," 79 STAT. 1219, AS 909
AMENDED, or any institution whose students are eligible for 911
financial assistance under any of the programs described by 912
division (E) of this section.
(B) The Ohio board of regents shall, by rule, specify the 914
form of statements of selective service status to be filed in 915
compliance with divisions (C) to (F) of this section. Each 916
statement of selective service status shall contain a section 917
wherein a male student born after December 31, 1959, certifies 918
that the student has registered with the selective service system 920
23
in accordance with the "Military Selective Service Act," 62 Stat. 921
604, 50 U.S.C. App. 453, as amended. For those students not 923
required to register with the selective service, as specified in 924
divisions (A)(2)(b)(i) to (iv) of this section, a section shall 925
be provided on the statement of selective service status for the 926
certification of nonregistration and for an explanation of the 927
reason for the exemption. The board of regents may require that 928
such statements be accompanied by documentation specified by rule 929
of the board.
(C) A state university or college that enrolls in any 931
course, class, or program a male student born after December 31, 932
1959, who has not filed a statement of selective service status 933
with the university or college shall, regardless of the student's 934
residency, charge the student any tuition surcharge charged 935
students who are not residents of this state. 936
(D) No male born after December 31, 1959, shall be 938
eligible to receive any loan, grant, scholarship, or other 939
financial assistance for educational expenses under section 940
3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03, 941
5910.032, or 5919.34 of the Revised Code unless that person has 943
filed a statement of selective service status with that person's 944
institution of higher education.
(E) If an institution of higher education receives a 946
statement from an individual certifying that the individual has 948
registered with the selective service system in accordance with
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 949
App. 453, as amended or that the individual is exempt from 950
registration for a reason other than that the individual is under 952
eighteen years of age, the institution shall not require the 953
individual to file any further statements. If it receives a 954
statement certifying that the individual is not required to 955
register because the individual is under eighteen years of age, 956
the institution shall require the individual to file a new 957
statement of selective service status each time the individual 958
24
seeks to enroll for a new academic term or makes application for 960
a new loan or loan guarantee or for any form of financial 961
assistance for educational expenses, until it receives a 962
statement certifying that the individual has registered with the 963
selective service system or is exempt from registration for a
reason other than that the individual is under eighteen years of 965
age.
Sec. 3351.07. (A) The Ohio student aid commission may: 974
(1) Guarantee the loan of money, subject to section 976
3351.08 of the Revised Code and upon any other terms and 977
conditions as the commission may prescribe, to persons and 978
parents of persons attending or planning to attend eligible 979
institutions to assist them in meeting educational expenses; 980
(2) Reject or take, hold, and administer, on behalf of the 982
commission and for any of its purposes, real property, personal 983
property, and moneys, or any interest therein, and the income 984
therefrom, either absolutely or in trust, for any purpose of the 985
commission. The commission may invest its funds in any 986
investments listed in division (K) of this section. The 987
commission may acquire property or moneys for its purposes by the 989
acceptance of gifts, grants, bequests, devises, or loans; 990
provided, that no obligation of the commission shall be a debt of 991
the state, and the commission shall have no power to make its 992
debts payable out of moneys except those of the commission. 993
(3) Enter into such contracts as may be desirable with 995
eligible educational institutions, upon terms as may be agreed 997
upon between the commission and the institution, to provide for 998
the administration by the institution of any loan or loan plan 1,000
guaranteed by the commission, including applications therefor and 1,001
repayment thereof;
(4) Enter into contracts with any approved lender, upon 1,003
terms as may be agreed upon between the commission and the 1,004
approved lender, to provide for the administration by the 1,005
approved lender of any loan or loan plan guaranteed by the 1,006
25
commission, including applications therefor and terms and 1,007
repayment thereof, and to establish the conditions for payment by 1,008
the commission to the approved lender of the guarantee on any 1,009
loan. The commission may also enter into contracts with any 1,010
approved lender to provide assistance to lenders in the 1,011
administration of loans. No moneys of approved lenders or 1,012
borrowers that are temporarily administered by the commission 1,013
pursuant to the contracts shall be considered public moneys. A
loan shall be defaulted when, after the expiration of a 1,014
prescribed period of nonpayment and reasonable collection 1,015
efforts, the approved lender makes application to the commission 1,016
for payment on the loan stating that the loan is in default in 1,017
accordance with the terms of the federal law, contract, or 1,018
regulations of the commission, executed under this division. In
accordance with the "Higher Education Amendments of 1968," 82 1,019
Stat. 1020, 20 U.S.C.A. 1087, as amended, if a borrower dies, 1,020
becomes permanently and totally disabled, or is adjudged 1,021
bankrupt, the commission shall discharge the borrower's liability 1,022
on the borrower's debt by repaying the unpaid principal and 1,023
interest due thereon.
(5) Sue and be sued in the name of the commission; 1,025
(6) Collect loans guaranteed by the commission on which 1,027
the commission has met its guarantee obligations. The commission 1,028
may, if it prefers, employ a private collection agency or 1,029
agencies for the purpose of collecting loans on which it has met 1,030
its guarantee obligations. 1,031
(7) Adopt rules, not inconsistent with sections 3351.05 to 1,034
3351.14 of the Revised Code, governing the guarantee of loans
made by the commission, and governing any other matters relating 1,035
to the activities of the commission; 1,036
(8) Participate in or administer education-related state 1,038
or federal financial aid programs on behalf of the state in 1,039
accordance with state and federal law. 1,040
(9) Perform any other acts necessary or appropriate to 1,043
26
carry out effectively the objects and purposes of the commission. 1,044
(B) The Ohio student aid commission, for the purposes of 1,046
sections 3351.05 to 3351.14 of the Revised Code, shall: 1,047
(1) Prescribe the academic status required for a resident, 1,049
qualified nonresident, or the parent of a resident or qualified 1,050
nonresident to obtain guarantee of a loan; 1,051
(2) Approve eligible institutions in which a student must 1,053
be enrolled or accepted for enrollment in order for the student 1,054
or the student's parent to be eligible for guaranteed loans. 1,055
(C) For the purposes of this chapter, "approved lender" 1,057
means any bank as defined in section 1101.01 of the Revised Code, 1,058
any domestic savings and loan association as defined in section 1,059
1151.01 of the Revised Code, any credit union as defined in 1,060
section 1733.01 of the Revised Code, any federal credit union 1,061
established pursuant to federal law, any insurance company 1,062
organized or authorized to do business in this state, any 1,063
eligible educational institution approved pursuant to division 1,064
(B)(2) of this section that applies for and receives formal 1,065
approval as an eligible lender by the commission pursuant to the 1,066
rules of the commission as they pertain to that institution, any 1,067
pension fund eligible under the "Higher Education Amendments of 1,068
1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary 1,069
market operation designated under division (D)(B) of this 1,070
section, or any secondary market operation established pursuant 1,071
to the "Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A. 1,072
1071, as amended, or under the laws of any state. 1,073
(D)(B) The governor may designate one nonprofit 1,075
corporation secondary market operation to be the single nonprofit 1,076
private agency designated by the state under the "Higher 1,077
Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D), 1,078
as amended. The commission shall enter into appropriate 1,079
contracts with the designated secondary market operation that 1,080
shall be on not less favorable terms than those contracts entered 1,081
into by the commission with any other approved lender. No 1,082
27
approval by the commission shall be necessary for the transfer of 1,083
loans by any approved lender to the designated secondary market 1,084
operation.
(E)(C) The nonprofit corporation designated by the 1,086
governor under division (D)(B) of this section as the private 1,087
agency secondary market operation shall be considered to be an 1,088
agency of the state, in accordance with section 435(d)(1)(F) of 1,089
the "Higher Education Act of 1965," as amended, 101 Stat. 347, 20 1,090
U.S.C.A. 1085(d)(1)(F), AS AMENDED, exclusively for the purpose 1,091
of functioning as a secondary student loan market. The 1,093
corporation shall be considered a state agency only for the 1,094
purposes of this division and no other division or section of the 1,095
Revised Code regarding state agencies shall apply to the 1,096
corporation. No liability or obligation incurred by the 1,097
corporation shall be considered to be a liability or debt of the 1,098
state, nor shall the state be construed to act as guarantor of 1,099
any debt of the corporation.
(F)(D) The nonprofit corporation designated under division 1,101
(D)(B) of this section shall designate a separate nonprofit 1,102
corporation to operate exclusively for charitable and educational 1,103
purposes, complementing and supplementing the designating 1,104
corporation's secondary market operation for student loans 1,105
authorized under the "Higher Education Act of 1965," as amended, 1,106
101 Stat. 347, 20 U.S.C.A. 1085, AS AMENDED, and promoting the 1,107
general health and welfare of the state, the public interest, and 1,108
a public purpose through improving student assistance programs by 1,109
expanding access to higher education financing programs for 1,110
students and families in need of student financial aid. In 1,111
furtherance of such purposes, the separate nonprofit corporation 1,112
may do all of the following: 1,113
(1) Assist educational institutions in establishing 1,115
financial aid programs to help students obtain an economical 1,116
education; 1,117
(2) Encourage financial institutions to increase 1,119
28
educational opportunities by making funds available to both 1,120
students and educational institutions; 1,121
(3) Make available financial aid that supplements the 1,123
financial assistance provided by eligible and approved lenders 1,124
under state and federal programs; 1,125
(4) Develop and administer programs that do all of the 1,127
following: 1,128
(a) Provide financial aid and incidental student financial 1,130
aid information to students and their parents or other persons 1,131
responsible for paying educational costs of those students at 1,132
educational institutions; 1,133
(b) Provide financial aid and information relating to it 1,135
to and through educational institutions, enabling those 1,136
institutions to assist students financially in obtaining an 1,137
education and fully expanding their intellectual capacity and 1,138
skills; 1,139
(c) Better enable financial institutions to participate in 1,141
student loan programs and other forms of financial aid, assisting 1,142
students and educational institutions to increase education 1,143
excellence and accessibility. 1,144
(G)(E) The nonprofit corporation designated under 1,146
authority of division (F)(D) of this section shall do both of the 1,147
following: 1,148
(1) Establish the criteria, standards, terms, and 1,150
conditions for participation by students, parents, educational 1,151
institutions, and financial institutions in that corporation's 1,152
programs; 1,153
(2) Provide the governor a report of its programs and a 1,155
copy of its audited financial statements not later than one 1,156
hundred eighty days after the end of each fiscal year of the 1,157
corporation. 1,158
No liability, obligation, or debt incurred by the 1,160
corporation designated under authority of division (F)(D) of this 1,162
section or by any person under that corporation's programs shall
29
be, or be considered to be, a liability, obligation, or debt of, 1,163
or a pledge of the faith and credit of, the state, any political 1,164
subdivision of the state, or any state-supported or 1,165
state-assisted institution of higher education, nor shall the 1,166
state or any political subdivision of the state or any 1,167
state-supported or state-assisted institution of higher education 1,168
be or be construed to act as an obligor under or guarantor of any 1,169
liability, obligation, or debt of that corporation or of any 1,170
person under that corporation's programs or incur or be construed 1,171
to have incurred any other liability, obligation, or debt as a 1,172
result of any acts of the corporation. 1,173
(H)(F) The nonprofit corporation designated under 1,175
authority of division (F)(D) of this section shall not be deemed 1,176
to qualify by reason of the designation as a guarantor or an 1,178
eligible lender under sections 435(d) and (j) of the "Higher 1,180
Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A. 1,181
1085(d) and (j), AS AMENDED. 1,182
(J) As used in division (K) of this section: 1,184
(1) "American depositary receipt" means a receipt for the 1,186
shares of a foreign corporation held by an American bank or trust 1,187
company, representing the deposit of an equivalent amount of 1,188
underlying foreign shares. 1,189
(2) "Commingled stock investment fund" means a pooling of 1,191
securities to create a fund of a certain type or classification 1,192
of stock wherein participants share in the total return of the 1,193
fund represented by dividends, interest, and appreciation. 1,194
(3) "Derivative instrument" means a financial obligation 1,196
that derives its precise value from the value of one or more 1,197
other instruments or assets at the same point in time. 1,198
(4) "Pass-through security" means a security, representing 1,200
pooled debt obligations repackaged as shares, that passes income 1,201
and principal from debtors through an intermediary to investors. 1,202
(K) The commission shall have full power to invest the 1,204
funds: 1,205
30
(1)(a) In bonds of the United States or this state, or in 1,207
bonds, notes, debentures, or other obligations the principal and 1,208
interest of which are guaranteed in full by the United States 1,209
government or this state, or those for which the credit of the 1,210
United States is pledged for the payment of the principal and 1,211
interest thereof; 1,212
(b) In derivative instruments based on the bonds, notes, 1,214
debentures, or obligations described in division (K)(1)(a) of 1,216
this section.
(2)(a) In bonds, notes, debentures, or any other 1,218
obligations or securities issued by any federal government agency 1,219
presently or in the future established by act of congress; 1,220
(b) In derivative instruments based on the bonds, notes, 1,222
debentures, obligations, or securities described in division 1,224
(K)(2)(a) of this section.
(3)(a) In bonds, notes, certificates of indebtedness, or 1,226
other obligations of the state; any county, township, municipal 1,227
corporation, school district, conservancy district, or sanitary 1,228
district of the state; or any other legally constituted taxing or 1,229
bond issuing authority, subdivision, or municipal corporation 1,230
within the state; 1,231
(b) In derivative instruments based on the bonds, notes, 1,233
certificates of indebtedness, or obligations described in 1,234
division (K)(3)(a) of this section. 1,235
(4) In revenue bonds issued by a taxing subdivision of the 1,237
state; 1,238
(5) In farm loan bonds issued under the "Federal Farm Loan 1,241
Act of 1916," 39 Stat. 360, 12 U.S.C.A. 641, as amended;
(6) In notes secured by mortgages and insured by the 1,243
federal housing commissioner, or the commissioner's successor or 1,244
assigns, or in debentures issued by the commissioner, which are 1,245
guaranteed as to principal and interest by the federal housing 1,246
administration, an agency of the United States government; 1,247
(7)(a) In bonds or other interest-bearing obligations of 1,249
31
any other state of the United States that, within ten years prior 1,251
to the making of the investment, has not defaulted for more than 1,252
ninety days in the payment of principal or interest on any of its 1,253
bonds or other interest-bearing obligations;
(b) In derivative instruments based on the bonds or 1,255
obligations described in division (K)(7)(a) of this section. 1,257
(8) In obligations issued by a federal home loan bank 1,259
created under the "Federal Home Loan Bank Act of 1932," 47 Stat. 1,260
725, 12 U.S.C.A. 1421, as amended; 1,261
(9) In shares, certificates, or other evidences of 1,263
deposits issued by a federal savings and loan association 1,264
organized and incorporated under the "Home Owners' Loan Act of 1,265
1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended, but only to 1,266
the extent that the shares or certificates or other evidences of 1,267
deposits are insured under subchapter IV of the "National Housing 1,269
Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;
(10) In bonds issued by the home owners' loan corporation 1,271
created under the "Home Owners' Loan Act of 1933," 48 Stat. 128, 1,273
12 U.S.C.A. 1461, as amended;
(11) In obligations issued by national mortgage 1,275
associations created under the "National Housing Act," 48 Stat. 1,277
1246 (1934), 12 U.S.C.A. 1701, as amended;
(12) In shares, certificates, or other evidences of 1,279
deposits issued by a state-chartered savings and loan association 1,280
organized under the laws of the state, which association has 1,281
obtained insurance of accounts as provided in subchapter IV of 1,282
the "National Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1,284
1701, as amended, but only to the extent that the evidences of 1,286
deposits are insured under the act, as amended;
(13) In savings accounts in a national bank located in the 1,288
state or a state bank located in and organized under the laws of 1,289
the state by depositing the funds therein, provided that no 1,290
deposit shall be made unless the deposits of the depository bank 1,291
are insured by the federal deposit insurance corporation, created 1,292
32
under the "Federal Deposit Insurance Corporation Act of 1933," 48 1,294
Stat. 162, 12 U.S.C.A. 264, as amended; and provided further, 1,295
that the deposit of the funds in any such savings accounts in any 1,296
one bank shall not exceed the sum insured under the act, as 1,297
amended; 1,298
(14) In bonds and notes backed by pools of first liens on 1,300
fee simple estates in land in this state that are improved by 1,301
one- to four-family residential structures; 1,302
(15) In bonds, notes, or other evidences of indebtedness 1,304
that are secured by first liens upon improved commercial real 1,305
property, upon condition that: 1,306
(a) No mortgage loan on any one property, at the time of 1,308
investment by the commission, exceeds ninety per cent of the 1,309
value of the real property securing the loan unless that portion 1,310
of the loan exceeding ninety per cent is insured or the mortgage 1,311
is a participating or convertible mortgage; 1,312
(b) The aggregate investment in mortgage loans on 1,314
commercial property that are not insured by the federal housing 1,315
commissioner shall not exceed ten per cent of the total value of 1,316
all funds invested by the commission. 1,317
(16) In pass-through securities backed by pools of first 1,319
liens on fee simple estates in land in this state that are 1,320
improved by one- to four-family residential structures; 1,321
(17) In pass-through securities backed by pools of first 1,323
liens upon improved commercial real property, provided that no 1,324
mortgage loan on any one property, at the time of investment by 1,325
the commission, exceeds ninety per cent of the value of the real 1,326
property securing the loan unless that portion of the loan 1,327
exceeding ninety per cent is insured; 1,328
(18) In the following corporate, trust, or partnership 1,330
obligations: 1,331
(a) Notes, bonds, debentures, conditional sales contracts, 1,333
equipment trust certificates, pass-through securities, other 1,334
fixed obligations, or evidences of indebtedness or interests that 1,335
33
are the obligations of a corporation, trust, or partnership; 1,336
provided that the obligor is incorporated or created under the 1,337
laws of the United States or any state thereof, or of the 1,338
District of Columbia; and that the obligations are rated at the 1,340
time of purchase the equivalent of an "A-" or higher quality
rating according to the Standard and Poor's rating service by at 1,342
least two standard rating services; or that for a period of five
fiscal years for which the necessary statistical data are 1,343
available next preceding the date of investment, the corporation, 1,344
trust, or partnership, as disclosed by its annual fiscal 1,345
statements, had an average annual pre-tax income plus its average 1,346
annual fixed charges at least equal to two times its average 1,347
annual fixed charges for the same period; provided, that in 1,348
neither of the last two years of that period shall the sum of its 1,349
annual net income and its annual fixed charges have been less 1,350
than two times its fixed charges for the same period. As used in 1,351
this division, "fixed charges" means interest on funded or 1,352
unfunded debt, contingent interest charges, amortization of debt 1,353
discount, and expense and one-third of rentals for leased 1,354
property, and includes, in the case of consolidated earnings 1,355
statements of parent and subsidiary entities, which shall be used 1,356
if available, all fixed charges of the subsidiaries. 1,357
(b) Derivative instruments based on the corporate, trust, 1,359
or partnership obligations described in division (K)(18)(a) of 1,361
this section;
(c) Various forms of commercial paper issued by any 1,363
corporation that is incorporated under the laws of the United 1,364
States or any state thereof; banker's acceptances that are 1,365
eligible for discount at any federal reserve bank; negotiable 1,366
time certificates of deposit issued by commercial banks and 1,367
domestic savings and loan associations as defined in section 1,368
1151.01 of the Revised Code, if the obligations mature within 1,369
nine months from the date of purchase; and repurchase agreements 1,370
secured by obligations of the United States treasury or federal 1,371
34
agencies or by any other money market instruments specified in 1,372
this section; 1,373
(d) Corporate debentures convertible or exchangeable into 1,375
common stock, provided that at the time of acquisition the 1,376
requirements of division (K)(20) of this section are met. 1,377
(19) In real estate located within the United States; 1,379
provided, that the aggregate of all investments made under this 1,380
division shall not exceed twenty-five per cent of the total value 1,381
of all funds invested by the commission, except that no 1,383
investment in real estate made under authority granted elsewhere 1,384
in this section shall be counted toward this limitation. 1,385
The commission may invest under this division in any 1,387
direct, indirect, or beneficial interest in real property, 1,388
including, but not limited to, improved or unimproved real 1,389
property, suitable or adaptable without excessive cost for more 1,390
than one use, and whether or not income-producing; mortgages; 1,391
deeds of trust; notes secured by real property; leaseholds; 1,392
leases; ground leases; air rights; limited partnerships; real 1,393
property interests owned, developed, or managed by joint ventures 1,394
or limited partnerships; variable notes secured by real property; 1,395
participations, created by any person regularly engaged in the 1,396
business of making, or acting as a broker of, mortgage loans, in 1,397
notes secured by real property; interests in collective 1,398
investment funds; corporations, trusts, or associations that 1,399
qualify as real estate investment trusts under section 856 of the 1,400
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 856, 1,402
as amended; interests in or real property for the development of 1,403
natural resources, excluding oil or gas; and condominium 1,404
interests, provided that liability is limited to the amount of 1,405
the investment. Unimproved real property or interests in the 1,406
property acquired shall be subject to a commercial development 1,407
plan or a natural resources development plan. 1,408
Real property purchased under this division may be improved 1,410
by the commission. Expenditures for improvements may include, 1,411
35
but are not limited to, expenditures for demolition of existing 1,412
structures, grading and landscaping, construction of new 1,413
structures, modification of existing structures, fixtures, 1,414
equipment, and related personal property. The commission may 1,415
manage the real property or may contract for management 1,416
responsibilities with firms having expertise in the management of 1,417
similar real property. 1,418
Real property purchased or improved under this division: 1,420
(a) Shall be geographically dispersed; 1,422
(b) May be leased to corporations, partnerships, or sole 1,424
proprietorships with or without purchase option provisions, and 1,425
lease payments may, but need not, include all or part of the 1,426
purchase and improvement costs; 1,427
(c) May be mortgaged to facilitate activities authorized 1,429
in this division. 1,430
(20)(a) In common and preferred stocks and American 1,432
depositary receipts, provided the stocks are issued or guaranteed 1,433
by a corporation created or existing under the laws of the United 1,434
States or any state thereof and the following criteria are met; 1,435
or the stocks or American depositary receipts are, at the time of 1,436
the commission's acquisition, included in the Standard and Poor's 1,438
Composite 500-Stock Index or 400 Mid-Cap Index, or listed on the 1,440
New York or American stock exchange; or the American depositary 1,442
receipts meet the following criteria: 1,443
(i) For a period of five fiscal years for which the 1,445
necessary statistical data are available next preceding the date 1,446
of investment, the corporation, as disclosed by its published 1,447
fiscal annual statements, has had an average annual net income 1,448
plus its average annual fixed charges at least equal to one and 1,449
one-half times the sum of its average annual dividend or 1,450
distribution requirement for preferred stock and its average 1,451
annual fixed charges for the same period; provided, during 1,452
neither of the last two years of the period shall the sum of its 1,453
annual net income and its annual fixed charges be less than one 1,454
36
and one-half times the sum of its dividend or distribution 1,455
requirements for preferred stock and its fixed charges for the 1,456
same period. As used in this paragraph, "fixed charges" means 1,457
interest on funded or unfunded debt, contingent interest charges, 1,458
amortization of debt discount, and expense and rentals for leased 1,459
property and, in the case of consolidated earnings statements of 1,460
parent and subsidiary corporations, includes all fixed charges 1,461
and preferred dividend or distribution requirements, if any, of 1,462
the subsidiaries. 1,463
(ii) The corporation has no arrears of dividends or 1,465
distributions on its preferred stock; 1,466
(iii) The common stock or American depositary receipt is 1,468
registered on a national securities exchange as provided in the 1,469
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.A. 77b, 1,472
or, if traded only in the over-the-counter market, at least five 1,473
member firms of the national association of securities dealers 1,474
make markets in the stock or American depositary receipt. 1,475
Registration is not required of the common stock of a bank that 1,476
is a member of the federal deposit insurance corporation or a 1,477
bank holding company and has capital funds, represented by 1,478
capital, surplus, and undivided profits, of at least twenty 1,479
million dollars; the common stock of a life insurance or an 1,480
insurance holding company that has capital funds, represented by 1,481
capital, special surplus funds, and unassigned surplus, of at 1,482
least fifty million dollars; or the common stock of a fire or 1,483
casualty insurance company, or a combination thereof, that has 1,484
capital funds represented by capital, net surplus, and voluntary 1,485
reserves, of at least fifty million dollars; 1,486
(iv) The preferred stock of the corporation, if any is 1,488
outstanding, qualifies for investment under division (K)(18)(a) 1,490
of this section;
(v) The corporation, having no preferred stock 1,492
outstanding, has had either earnings before interest and taxes 1,493
for the five fiscal years next preceding the date of investment 1,494
37
of at least twice the interest on all mortgages, bonds, 1,495
debentures, and funded debts, if any, after deduction of the 1,496
proper charges for replacements, depreciation, and obsolescence 1,497
or the corporation's senior subordinated debt obligations are 1,498
rated "A-" or higher quality rating according to the Standard and 1,499
Poor's rating service or the equivalent rating in another 1,500
standard rating service; 1,501
(vi) The corporation has paid a cash dividend or 1,503
distribution on its common stock in at least three years of the 1,504
five-year period next preceding the date of investment, and the 1,505
aggregate net earnings available for dividends or distributions 1,506
on the common stock of the corporation for the whole of the 1,507
period has been at least equal to the amount of the dividends or 1,508
distributions paid, except that ten per cent of the total value 1,509
of all funds invested by the commission may be invested in 1,510
nondividend paying common stocks; 1,511
(vii) In applying the earnings test under this division to 1,513
any issuing, assuming, or guaranteeing corporation, where the 1,514
corporation has acquired its property or any substantial part 1,515
thereof within a five-year period immediately preceding the date 1,516
of investment by consolidations, merger, or by the purchase of 1,517
all or a substantial portion of the property of any other 1,518
corporation or corporations, or has acquired the assets of any 1,519
unincorporated business enterprise by purchase or otherwise, net 1,520
income, fixed charges, and preferred dividends or distributions 1,521
of the several predecessor or constituent corporations or 1,522
enterprises shall be consolidated and adjusted so as to ascertain 1,523
whether or not the applicable requirements of this section have 1,524
been complied with. 1,525
(b) In derivative instruments based on the stocks or 1,527
American depositary receipts that qualify for investment under 1,528
division (K)(20)(a) of this section; 1,529
(c) In beneficial interests in commingled stock investment 1,531
funds; 1,532
38
(d) The total value of common and preferred stocks, 1,534
American depositary receipts, derivative instruments, and 1,535
commingled stock investment fund investments made under this 1,536
division shall not exceed fifty per cent of the total value of 1,537
all funds invested by the commission, provided: 1,538
(i) Not more than one and one-half per cent of the total 1,540
value of the funds is invested in the common stock of a single 1,541
corporation; 1,542
(ii) The total number of common shares in a single 1,544
corporation does not exceed ten per cent of the issued and 1,545
outstanding common stock of such corporation. 1,546
(e) As used in division (K)(20)(d) of this section, 1,548
"value" consists of cash, the par value of unpaid balance of all 1,549
unmatured or unpaid investments requiring the payment of a fixed 1,550
amount at payment date, and the cost of all other investments. 1,551
(21)(a) In debt or equity interests in either of the 1,553
following: 1,554
(i) Any corporation, partnership, proprietorship, or other 1,556
entity not otherwise meeting the investment requirements of this 1,557
section, provided more than one-half of its assets are within 1,558
this state, more than one-half of its employees are employed 1,559
within this state, or its principal office is located within this 1,560
state, and provided liability is limited to the amount of the 1,561
investment; 1,562
(ii) Venture capital firms having an office within this 1,564
state, provided that, as a condition of the commission making an 1,565
investment in a venture capital firm, the firm shall agree to use 1,566
its best efforts to make investments, in an aggregate amount at 1,567
least equal to the investment to be made by the commission in 1,568
that venture capital firm, in small businesses having their 1,569
principal offices within this state and having either more than 1,570
one-half of their assets within this state or more than one-half 1,571
of their employees employed within this state. 1,572
(b) Investments made under division (K)(21) of this 1,574
39
section shall not exceed in the aggregate five per cent of the 1,575
total value of all funds invested by the commission. 1,576
(c) As used in division (K)(21) of this section: 1,578
(i) "Venture capital firm" means any corporation, 1,580
partnership, proprietorship, or other entity, the principal 1,581
business of which is or will be the making of investments in 1,582
small businesses. 1,583
(ii) "Small business" means any corporation, partnership, 1,585
proprietorship, or other entity that either does not have more 1,586
than four hundred employees when the investment is made or would 1,587
qualify as a small business for the purpose of receiving 1,588
financial assistance from small business investment companies 1,589
licensed under the "Small Business Investment Act of 1958," 72 1,590
Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small 1,591
business administration. 1,592
(iii) "Equity interests" means limited partnership 1,594
interests and other equity interests in which liability is 1,595
limited to the amount of the investment, but does not mean 1,596
general partnership interests or other interests involving 1,597
general liability. 1,598
(22) In the following Canadian obligations, which shall 1,600
not exceed fifteen per cent of the total value of all funds 1,601
invested by the commission: bonds, debentures, notes, or other 1,603
obligations issued, guaranteed, or assumed as to both principal 1,604
and interest by the government of Canada, by any province of 1,605
Canada, or by any city of Canada that has a population of not 1,606
less than one hundred fifty thousand, if all of the following 1,607
apply:
(a) The faith and credit of the issuer, guarantor, or 1,609
assumer of the bonds, debentures, notes, or other obligations is 1,610
pledged for the payment of principal and interest thereof, and 1,611
the principal and interest thereof is payable in United States 1,613
funds, either unconditionally or at the option of the holder; 1,614
(b) Any such city, if the issuer, guarantor, or assumer is 1,616
40
a city, has power to levy taxes on the taxable real property 1,617
therein or to collect other revenues for the payment of both 1,618
principal and interest of the bonds, debentures, notes, or other 1,619
obligations without limitation of rate or amount; 1,620
(c) The issuer, guarantor, or assumer of the bonds, 1,622
debentures, notes, or other obligations has not within ten years 1,623
prior to the making of the investment defaulted in payment of 1,624
principal or interest of any debt evidenced by its bonds, 1,625
debentures, notes, or other obligations for more than ninety 1,626
days; 1,627
(d) The bonds, debentures, notes, or other obligations are 1,629
rated at the time of purchase the equivalent of an "A-" or higher 1,630
quality rating according to the Standard and Poor's rating 1,631
service by at least two standard rating services or, if not 1,632
rated, are certified in writing by two or more such services to 1,633
be of investment quality equivalent to or higher than the quality 1,634
of bonds rated an "A-". 1,635
(23) In obligations issued, assumed, or guaranteed by the 1,637
international bank for reconstruction and development, the Asian 1,638
development bank, the inter-American development bank, the 1,639
African development bank, the international finance corporation, 1,640
or other similar development bank in which the president, as 1,641
authorized by congress and on behalf of the United States, has 1,643
accepted membership; 1,644
(24) In general obligations backed by the full faith and 1,646
credit of the state of Israel. All interest and principal shall 1,647
be denominated and payable in United States funds. 1,648
(25) In debt or equity interests in or issued by foreign 1,650
entities or any instrument based on, derived from, or related to 1,651
those interests and foreign currency denominated contracts or 1,652
obligations. The investments made under this division shall not 1,653
exceed in the aggregate ten per cent of the total value of all 1,654
funds invested by the commission. 1,655
Sec. 3365.08. (A) A college that expects to receive or 1,664
41
receives reimbursement under section 3365.07 of the Revised Code 1,665
shall furnish to a participant all textbooks and materials 1,666
directly related to a course taken by the participant under 1,667
division (B) of section 3365.04 of the Revised Code. No college 1,668
shall charge such participant for tuition, textbooks, materials, 1,669
or other fees directly related to any such course. 1,670
(B) No student enrolled under this chapter in a course for 1,672
which credit toward high school graduation is awarded is eligible 1,673
for any SHALL RECEIVE DIRECT financial aid under Chapter 3351. of 1,675
the Revised Code THROUGH ANY STATE OR FEDERAL PROGRAM.
(C) If a school district provides transportation for 1,677
resident school students in grades eleven and twelve under 1,678
section 3327.01 of the Revised Code, a parent of a pupil enrolled 1,679
in a course under division (B) of section 3365.04 of the Revised 1,680
Code may apply to the board of education for full or partial 1,681
reimbursement for the necessary costs of transporting the student 1,682
between the secondary school he THE STUDENT attends and the 1,683
college in which he THE STUDENT is enrolled. Reimbursement may 1,684
be paid solely from funds received by the district under division 1,685
(K) of section 3317.024 of the Revised Code. The state board of 1,687
education shall establish guidelines, based on financial need, 1,688
under which a district may provide such reimbursement. 1,689
Sec. 3366.01. As used in this chapter, the following words 1,699
and terms have the following meanings unless the context 1,700
indicates a different meaning or intent:
(A) "Bond proceedings" means the order, trust, agreement, 1,703
indenture and other agreements, or amendments and supplements to 1,704
the foregoing, or any one or more or combination thereof, 1,705
authorizing or providing for the terms and conditions applicable 1,706
to, or providing for the issuance, security, or liquidity of, 1,707
obligations and the provisions contained in such obligations. 1,708
(B) "Bond service charges" means principal, including 1,711
mandatory sinking fund requirements for retirement of 1,712
obligations, and interest, and redemption premium, if any, 1,713
42
required to be paid on obligations.
(C) "Bond service fund" means the applicable fund and 1,716
accounts therein created in the bond proceedings for and pledged 1,717
to the payment of bond service charges, including all moneys and 1,718
investments, and earnings from investments, credited and to be 1,719
credited thereto.
(D) "Costs of attendance" means all costs of a student 1,722
incurred in connection with a program of study at an eligible 1,723
institution, as determined by the institution, including tuition; 1,724
instructional fees; room and board; books, computers, and 1,725
supplies; and other related fees, charges, and expenses. 1,726
(E) "Designated nonprofit corporation" means the nonprofit 1,729
corporation designated under division (F)(D) of section 3351.07 1,730
of the Revised Code to operate exclusively for charitable and 1,732
educational purposes by expanding access to higher education 1,733
financing programs for students and families in need of student 1,734
financial aid.
(F) "Education loan" means a loan made by an eligible 1,737
lender pursuant to the policy guidelines to or for the benefit of 1,739
a student for the purpose of financing part or all of the
student's costs of attendance. 1,740
(G) "Eligible borrower" means any of the following: 1,743
(1) Individuals who are residents of the state, and who 1,745
are attending and are in good standing in, or who have been 1,746
accepted for attendance at, any eligible institution located in 1,747
this state or elsewhere, on a part-time or full-time basis, to 1,748
pursue an associate, baccalaureate, or advanced degree or a 1,749
nursing diploma; 1,750
(2) Individuals who reside outside the state and who have 1,753
been accepted for attendance at, or who are attending and are in 1,754
good standing in, any eligible institution located in this state, 1,755
on a part-time or full-time basis, to pursue an associate,
baccalaureate, or advanced degree or a nursing diploma; 1,756
(3) Individuals who are parents or legal guardians of, or 1,759
43
other persons, as set forth in the policy guidelines, borrowing 1,760
under an education loan for the benefit of individuals meeting 1,761
requirements set forth in division (G)(1) or (2) of this section, 1,762
in order to assist them in paying costs of attendance. 1,763
(H)(1) "Eligible institution" means an institution 1,766
described in any of divisions (H)(1)(a), (b), or (c) of this 1,767
section that satisfies all of the requirements set forth in 1,769
divisions (H)(2), (3), and (4) of this section. 1,770
(a) The institution is a state-assisted post-secondary 1,773
educational institution within this state.
(b) The institution is a nonprofit institution within this 1,776
state having a certificate of authorization from the Ohio board 1,777
of regents pursuant to Chapter 1713. of the Revised Code. 1,778
(c) The institution is a post-secondary educational 1,781
institution similar to one described in division (H)(1)(a) or (b) 1,782
of this section that is located outside this state and that is 1,783
similarly approved by the appropriate agency of that state. 1,784
(2) The institution is accredited by the appropriate 1,786
regional and, when appropriate, professional accrediting 1,787
associations within whose jurisdiction it falls. 1,788
(3) The institution satisfies the eligibility requirements 1,791
for participation in the federal family education loan program 1,792
authorized under Title IV, Part B, of the "Higher Education Act 1,794
of 1965," 20 U.S.C.A. 1071 et seq., as amended, as long as that 1,796
program remains in existence.
(4) The institution satisfies the other conditions set 1,798
forth in the policy guidelines. 1,799
(I) "Eligible lender" means a bank, national banking 1,801
association, savings bank, savings and loan association, or 1,802
credit union having an office in this state that satisfies the 1,803
criteria for eligible lenders established pursuant to the policy 1,804
guidelines. 1,805
(J) "Governmental agency" means the state and any state 1,808
department, division, commission, institution, or authority; the 1,809
44
United States or any agency thereof; or any agency, commission, 1,810
or authority established pursuant to an interstate compact or 1,811
agreement; or any combination of the foregoing. 1,812
(K) "Issuing authority" means the treasurer of state, or 1,815
the officer who by law performs the functions of the treasurer of 1,816
state.
(L) "Obligations" means the bonds, notes, or securities of 1,819
this state issued by the issuing authority pursuant to this 1,820
chapter.
(M) "Person" means any individual, corporation, business 1,823
trust, estate, trust, partnership, or association, any federal, 1,824
state, interstate, regional, or local governmental agency, any 1,825
subdivision of the state, or any combination of these. 1,826
(N) "Pledged receipts" means, to the extent the following 1,829
are pledged by the bond proceedings for the payment of bond 1,830
service charges: all receipts representing moneys accruing from 1,831
or in connection with the repayment of education loans, including 1,832
interest and payments from any guarantee or insurance in respect 1,833
to such education loans; accrued interest received from the sale 1,834
of obligations; the balances in the special funds; income from 1,835
the investment of the special funds; all right, title, or 1,836
interest of the state in any education loans and any guarantees 1,837
or insurance in respect thereof; all right, title, and interest 1,838
of the designated nonprofit corporation in the education loans 1,839
and any guarantees or insurance in respect thereof, and any money 1,840
representing the proceeds of obligations or any income from or 1,841
interest on those proceeds; or any other gifts, grants, 1,842
donations, and pledges and any income and receipts therefrom, 1,843
available and pledged for the payment of bond service charges. 1,844
(O) "Policy guidelines" means the rules adopted pursuant 1,847
to division (A) of section 3366.03 of the Revised Code. 1,848
(P) "Proceeds loan" means the transfer, pursuant to a loan 1,851
agreement or agency agreement, of the proceeds of the 1,852
obligations, or the deposit of the proceeds of the obligations 1,853
45
with a trustee in trust under a trust agreement, indenture, or 1,854
other trust document under the bond proceedings pending their 1,855
disbursement for the purposes authorized by this chapter. 1,856
(Q) "Resident" means any student who would qualify as a 1,859
resident of this state for state subsidy and tuition surcharge 1,860
purposes under rules adopted by the Ohio board of regents under 1,861
section 3333.31 of the Revised Code. 1,862
(R) "Special funds" or "funds" means the bond service fund 1,865
and any other funds, including reserve funds, created under the 1,866
bond proceedings, including all moneys and investments, and 1,867
earnings from investment, credited and to be credited thereto. 1,868
(S) "Student" means an individual described in division 1,871
(G)(1) or (2) of this section who meets requirements established 1,872
under the policy guidelines. "Student" includes dependent and 1,873
independent undergraduate, graduate, and professional students. 1,874
(T) "Subdivision" has the same meaning as in division (MM) 1,877
of section 133.01 of the Revised Code. 1,878
Sec. 4501.02. (A) There is hereby created in the 1,887
department of public safety a bureau of motor vehicles, which 1,888
shall be administered by a registrar of motor vehicles. The 1,889
registrar shall be appointed by the director of public safety and 1,890
shall serve at his THE DIRECTOR'S pleasure. 1,891
The registrar shall administer the laws of the state 1,893
relative to the registration of and certificates of title for 1,894
motor vehicles, and the licensing of motor vehicle dealers, motor 1,895
vehicle leasing dealers, distributors, and salespersons, and of 1,896
motor vehicle salvage dealers, salvage motor vehicle auctions, 1,897
and salvage motor vehicle pools. The registrar also shall, in 1,898
accordance with section 4503.61 of the Revised Code, take those 1,899
steps necessary to enter this state into membership in the 1,900
international registration plan and carry out his THE REGISTRAR'S 1,902
other duties under that section. The registrar, with the 1,903
approval of the director of public safety, may do all of the 1,904
following:
46
(1) Adopt such forms and rules as are necessary to carry 1,906
out all laws he THE REGISTRAR is required to administer; 1,907
(2) Appoint such number of assistants, deputies, clerks, 1,909
stenographers, and other employees as are necessary to carry out 1,910
such laws; 1,911
(3) Acquire or lease such facilities as are necessary to 1,913
carry out the duties of his THE REGISTRAR'S office. 1,914
The registrar shall give a bond for the faithful 1,916
performance of his THE REGISTRAR'S duties in such amount and with 1,918
such security as the director approves. When in the opinion of 1,919
the director it is advisable, any deputy or other employee may be 1,920
required to give bond in such amount and with such security as 1,921
the director approves. In the discretion of the director, the 1,922
bonds authorized to be taken on deputies or other employees may 1,923
be individual, schedule, or blanket bonds. 1,924
The registrar shall furnish the director of the Ohio 1,926
student aid commission with the information required under 1,927
division (C) of section 3351.071 of the Revised Code. 1,928
The director of public safety may investigate the 1,930
activities of the bureau and have access to its records at any 1,931
time, and the registrar shall make a report to the director at 1,932
any time upon request. 1,933
All laws relating to the licensing of motor vehicle 1,935
dealers, motor vehicle leasing dealers, distributors, and 1,936
salespersons, and of motor vehicle salvage dealers, salvage motor 1,937
vehicle auctions, and salvage motor vehicle pools, designating 1,938
and granting power to the registrar shall be liberally construed 1,939
to the end that the practice or commission of fraud in the 1,940
business of selling motor vehicles and of disposing of salvage 1,941
motor vehicles may be prohibited and prevented. 1,942
(B) There is hereby created in the department of public 1,944
safety a division of emergency medical services, which shall be 1,945
administered by an executive director of emergency medical 1,946
services appointed under section 4765.03 of the Revised Code. 1,947
47
Section 2. That existing sections 111.15, 131.15, 135.18, 1,949
135.181, 3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 1,951
and sections 3351.05, 3351.06, 3351.071, 3351.08, 3351.09, 1,952
3351.10, 3351.11, 3351.12, 3351.13, and 3351.131 of the Revised 1,953
Code are hereby repealed.
Section 3. Section 135.18 of the Revised Code is presented 1,955
in this act as a composite of the section as amended by both Am. 1,957
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 1,959
letters. Section 135.181 of the Revised Code is presented in 1,960
this act as a composite of the section as amended by Am. Sub. 1,961
S.B. 81, Am. Sub. S.B. 293, and Am. Sub. H.B. 538 of the 121st 1,962
General Assembly, with the new language of none of the acts shown 1,964
in capital letters. Sections 3333.25 and 3351.07 of the Revised 1,965
Code is presented in this act as composites of the sections as 1,966
amended by both Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the 1,967
121st General Assembly, with the new language of neither of the 1,969
acts shown in capital letters. This is in recognition of the 1,970
principle stated in division (B) of section 1.52 of the Revised 1,971
Code that such amendments are to be harmonized where not 1,972
substantively irreconcilable and constitutes a legislative 1,973
finding that such is the resulting version in effect prior to the 1,974
effective date of this act.