As Passed by the House 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-SCHULER-GRENDELL-LEWIS-JOHNSON-TIBERI 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, the adjutant general's 54
department, or any court. 55
(3) "Internal management rule" means any rule, regulation, 57
bylaw, or standard governing the day-to-day staff procedures and 58
operations within an agency. 59
(4) "Substantive revision" has the same meaning as in 61
division (J) of section 119.01 of the Revised Code. 62
(B)(1) Any rule, other than a rule of an emergency nature, 64
adopted by any agency pursuant to this section shall be effective 65
on the tenth day after the day on which the rule in final form 66
and in compliance with division (B)(3) of this section is filed 67
as follows: 68
(a) Two certified copies of the rule shall be filed with 70
both the secretary of state and the director of the legislative 71
service commission; 72
(b) Two certified copies of the rule shall be filed with 74
the joint committee on agency rule review. Division (B)(1)(b) of 75
this section does not apply to any rule to which division (D) of 76
this section does not apply. 77
An agency that adopts or amends a rule that is subject to 79
division (D) of this section shall assign a review date to the 81
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 82
assigned to a rule exceeds the five-year maximum, the review date 83
for the rule is five years after its effective date. A rule with 84
a review date is subject to review under section 119.032 of the 85
Revised Code. This paragraph does not apply to a rule of a state 87
college or university, community college district, technical
college district, or state community college. 88
If all copies are not filed on the same day, the rule shall 90
be effective on the tenth day after the day on which the latest 91
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filing is made. If an agency in adopting a rule designates an 92
effective date that is later than the effective date provided for 93
by division (B)(1) of this section, the rule if filed as required 94
by such division shall become effective on the later date 95
designated by the agency. 96
Any rule that is required to be filed under division (B)(1) 98
of this section is also subject to division (D) of this section 99
if not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), 101
or (8) of this section.
(2) A rule of an emergency nature necessary for the 103
immediate preservation of the public peace, health, or safety 104
shall state the reasons for the necessity. Copies of the 105
emergency rule, in final form and in compliance with division 106
(B)(3) of this section, shall be filed as follows: two certified 107
copies of the emergency rule shall be filed with both the 108
secretary of state and the director of the legislative service 109
commission, and one certified copy of the emergency rule shall be 110
filed with the joint committee on agency rule review. The 111
emergency rule is effective immediately upon the latest filing, 112
except that if the agency in adopting the emergency rule 113
designates an effective date, or date and time of day, that is 114
later than the effective date and time provided for by division 115
(B)(2) of this section, the emergency rule if filed as required 116
by such division shall become effective at the later date, or 117
later date and time of day, designated by the agency. 118
An emergency rule becomes invalid at the end of the 120
ninetieth day it is in effect. Prior to that date, the agency 121
may file the emergency rule as a nonemergency rule in compliance 122
with division (B)(1) of this section. The agency may not refile 123
the emergency rule in compliance with division (B)(2) of this 124
section so that, upon the emergency rule becoming invalid under 125
such division, the emergency rule will continue in effect without 126
interruption for another ninety-day period. 127
(3) An agency shall file a rule under division (B)(1) or 129
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(2) of this section in compliance with the following standards 130
and procedures: 131
(a) The rule shall be numbered in accordance with the 133
numbering system devised by the director for the Ohio 134
administrative code. 135
(b) The rule shall be prepared and submitted in compliance 137
with the rules of the legislative service commission. 138
(c) The rule shall clearly state the date on which it is 140
to be effective and the date on which it will expire, if known. 141
(d) Each rule that amends or rescinds another rule shall 143
clearly refer to the rule that is amended or rescinded. Each 144
amendment shall fully restate the rule as amended. 145
If the director of the legislative service commission or 147
the director's designee gives an agency written notice pursuant 149
to section 103.05 of the Revised Code that a rule filed by the 150
agency is not in compliance with the rules of the legislative 151
service commission, the agency shall within thirty days after 152
receipt of the notice conform the rule to the rules of the 153
commission as directed in the notice. 154
(C) All rules filed pursuant to divisions (B)(1)(a) and 156
(2) of this section shall be recorded by the secretary of state 157
and the director under the title of the agency adopting the rule 158
and shall be numbered according to the numbering system devised 159
by the director. The secretary of state and the director shall 160
preserve the rules in an accessible manner. Each such rule shall 161
be a public record open to public inspection and may be lent to 162
any law publishing company that wishes to reproduce it. 163
(D) At least sixty days before a board, commission, 165
department, division, or bureau of the government of the state 166
files a rule under division (B)(1) of this section, it shall file 167
two copies of the full text of the proposed rule with the joint 169
committee on agency rule review, and the proposed rule is subject 172
to legislative review and invalidation under division (I) of 173
section 119.03 of the Revised Code. If a state board,
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commission, department, division, or bureau makes a substantive 174
revision in a proposed rule after it is filed with the joint 175
committee, the state board, commission, department, division, or 177
bureau shall promptly file two copies of the full text of the 179
proposed rule in its revised form with the joint committee. The 180
latest version of a proposed rule as filed with the joint 181
committee supersedes each earlier version of the text of the same 183
proposed rule. Except as provided in division (F) of this 184
section, a state board, commission, department, division, or 185
bureau shall attach one copy of the rule summary and fiscal 186
analysis prepared under section 121.24 or 127.18 of the Revised 187
Code, or both, to each copy of a proposed rule, and to each copy 188
of a proposed rule in revised form, that is filed under this 189
division. 190
As used in this division, "commission" includes the public 192
utilities commission when adopting rules under a federal or state 193
statute.
This division does not apply to any of the following: 195
(1) A proposed rule of an emergency nature; 197
(2) A rule proposed under section 1121.05, 1121.06, 199
1155.18, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40, 200
4123.411, 4123.44, or 4123.442 of the Revised Code; 202
(3) A rule proposed by an agency other than a board, 204
commission, department, division, or bureau of the government of 205
the state; 206
(4) A proposed internal management rule of a board, 208
commission, department, division, or bureau of the government of 209
the state; 210
(5) A rule proposed by the Ohio student aid commission 212
that complies with a federal law or rule, so long as the proposed 213
rule contains both of the following: 214
(a) A statement that it is proposed for the purpose of 216
complying with a federal law or rule; 217
(b) A citation to the federal law or rule that requires 219
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compliance. 220
(6) Any proposed rule that must be adopted verbatim by an 222
agency pursuant to federal law or rule, to become effective 223
within sixty days of adoption, in order to continue the operation 224
of a federally reimbursed program in this state, so long as the 225
proposed rule contains both of the following: 226
(a) A statement that it is proposed for the purpose of 228
complying with a federal law or rule; 229
(b) A citation to the federal law or rule that requires 231
verbatim compliance. 232
(7)(6) An initial rule proposed by the director of health 234
to impose safety standards, quality-of-care standards, and 235
quality-of-care data reporting requirements with respect to a 236
health service specified in section 3702.11 of the Revised Code, 237
or an initial rule proposed by the director to impose quality 239
standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised 240
Code requires that the rule be adopted under this section; 241
(8)(7) A rule of the state lottery commission pertaining 243
to instant game rules. 244
(E) Whenever a state board, commission, department, 246
division, or bureau files a proposed rule or a proposed rule in 247
revised form under division (D) of this section, it shall also 248
file one copy of the full text of the same proposed rule or 249
proposed rule in revised form with the secretary of state and two 250
copies thereof with the director of the legislative service 251
commission. Except as provided in division (F) of this section, 252
a state board, commission, department, division, or bureau shall 253
attach a copy of the rule summary and fiscal analysis prepared 254
under section 121.24 or 127.18 of the Revised Code, or both, to 255
each copy of a proposed rule or proposed rule in revised form 256
that is filed with the secretary of state or the director of the 257
legislative service commission. 258
(F) Except as otherwise provided in this division, the 260
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auditor of state or the auditor of state's designee is not 261
required to attach a rule summary and fiscal analysis to any copy 263
of a proposed rule, or proposed rule in revised form, that the 264
auditor of state proposes under section 117.12, 117.19, 117.38, 266
or 117.43 of the Revised Code and files under division (D) or (E) 267
of this section. If, however, the auditor of state or the 268
designee prepares a rule summary and fiscal analysis of the 269
original version of such a proposed rule for purposes of 270
complying with section 121.24 of the Revised Code, the auditor of 271
state or designee shall attach a copy of the rule summary and 272
fiscal analysis to each copy of the original version of the 273
proposed rule filed under division (D) or (E) of this section. 274
Sec. 131.15. (A) Any depositor enumerated in section 283
131.11 of the Revised Code shall make ample provisions for the 284
safekeeping of hypothecated securities. The interest thereon, 285
when paid, shall be turned over to the bank or trust company if 286
it is not in default. The depositor may make provisions for the 287
exchange and release of securities and the substitution of other 288
securities or of an undertaking therefor except in those cases 289
where the public depository has deposited eligible securities 290
with a trustee for safekeeping. 291
(B) When the public depository has deposited eligible 293
securities described in division (B)(1) of section 135.18 of the 294
Revised Code with a trustee for safekeeping, the public 295
depository may at any time substitute or exchange eligible 296
securities described in division (B)(1) of section 135.18 of the 297
Revised Code having a current market value equal to or greater 298
than the current market value of the securities then on deposit 299
and for which they are to be substituted or exchanged, without 300
specific authorization from the depositor of any substitution or 301
exchange. 302
(C) When the public depository has deposited eligible 304
securities described in division (B)(2) to (10)(9) of section 305
135.18 of the Revised Code with a trustee for safekeeping, the 306
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public depository may at any time substitute or exchange eligible 307
securities having a current market value equal to or greater than 308
the current market value of the securities then on deposit and 309
for which they are to be substituted or exchanged without 310
specific authorization of any depositor of any such substitution 311
or exchange only if: 312
(1) The depositor has authorized the public depository to 314
make such substitutions or exchanges on a continuing basis during 315
a specified period without prior approval of each substitution or 316
exchange. Such authorization may be effected by the depositor 317
sending to the trustee a written notice stating that substitution 318
may be effected on a continuing basis during a specified period 319
that shall not extend beyond the end of the period of designation 320
during which the notice is given. "Period of designation" as 321
used in this section means the period under section 135.12 of the 322
Revised Code for the award of inactive funds of the subdivision 323
of which the depositor is an officer or employee. The trustee 324
may rely upon such notice and upon the period of authorization 325
stated therein and upon the period of designation stated therein. 326
(2) No continuing authorization for substitution has been 328
given by the depositor, the public depository notifies the 329
depositor and the trustee of an intended substitution or 330
exchange, and the depositor fails to object to the trustee as to 331
the eligibility or market value of the securities being 332
substituted within ten calendar days after the date appearing on 333
the notice of proposed substitution. The notice to the depositor 334
and to the trustee shall be given in writing and delivered 335
personally or by certified mail with a return receipt requested. 336
The trustee may assume in any case that the notice has been 337
delivered to the depositor. In order for objections of the 338
depositor to be effective, receipt of the objections must be 339
acknowledged in writing by the trustee. 340
(3) The depositor gives written authorization for a 342
substitution or exchange of specific securities. 343
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(D) The public depository shall notify the depositor of 345
any substitution or exchange under division (C)(1) or (2) of this 346
section. If the depository designates a trustee qualified under 347
section 135.18 of the Revised Code to act as such for the 348
safekeeping of securities, the depositor shall accept the written 349
receipt of the designated trustee, describing the securities that 350
have been deposited with the trustee by the public depository, as 351
and for a hypothecation of such securities and issue to the 352
depository his THE DEPOSITOR'S written acknowledgment to that 353
effect, keeping a copy thereof in his THE DEPOSITOR'S office. 354
Thereupon, all such securities pledged and deposited with the 355
trustee are deemed hypothecated and deposited with the depositor, 356
for all the purposes of sections 131.13 to 131.16 of the Revised 357
Code. The trustee shall hold the securities for the account of 358
the depositor and the depository as their respective rights to 359
and interests in such securities under said sections appear and 360
are asserted by written notice to or demand upon the trustee. 361
Notwithstanding the fact that a public depository is 363
required to pledge eligible securities in certain amounts to 364
secure deposits of public moneys, a trustee shall have no duty or 365
obligation to determine the eligibility, market value, or face 366
value of any securities deposited with the trustee by a public 367
depository. This applies in all situations including, without 368
limitation, a substitution or exchange of securities. 369
Sec. 135.18. (A) The treasurer, before making the initial 378
deposit in a public depository pursuant to an award made under 379
sections 135.01 to 135.21 of the Revised Code, shall require the 380
institution designated as a public depository to pledge to and 381
deposit with the treasurer, as security for the repayment of all 382
public moneys to be deposited in the public depository during the 383
period of designation pursuant to the award, eligible securities 384
of aggregate market value equal to the excess of the amount of 385
public moneys to be at the time so deposited, over and above such 386
portion or amount of such moneys as is at such time insured by 387
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the federal deposit insurance corporation or by any other agency 388
or instrumentality of the federal government, or the treasurer 389
may require the institution to deposit with the treasurer surety 390
company bonds which, when executed, shall be for an amount equal 391
to such excess amount. In the case of any deposit other than the 392
initial deposit made during the period of designation, the amount 393
of the aggregate market value of securities required to be 394
pledged and deposited, or of the surety company bonds required to 395
be deposited, shall be equal to the difference between the amount 396
of public moneys on deposit in such public depository plus the 397
amount to be so deposited, minus the portion or amount of the 398
aggregate as is at the time insured as provided in this section. 399
The treasurer may require additional eligible securities to be 400
deposited to provide for any depreciation which may occur in the 401
market value of any of the securities so deposited. 402
(B) The following securities shall be eligible for the 404
purposes of this section: 405
(1) Bonds, notes, or other obligations of the United 407
States; or bonds, notes, or other obligations guaranteed as to 408
principal and interest by the United States or those for which 409
the faith of the United States is pledged for the payment of 410
principal and interest thereon, by language appearing in the 411
instrument specifically providing such guarantee or pledge and 412
not merely by interpretation or otherwise; 413
(2) Bonds, notes, debentures, letters of credit, or other 415
obligations or securities issued by any federal government agency 416
or instrumentality, or the export-import bank of Washington; 417
bonds, notes, or other obligations guaranteed as to principal and 418
interest by the United States or those for which the faith of the 419
United States is pledged for the payment of principal and 420
interest thereon, by interpretation or otherwise and not by 421
language appearing in the instrument specifically providing such 422
guarantee or pledge;
(3) Obligations of or fully insured or fully guaranteed by 424
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the United States or any federal government agency or 425
instrumentality;
(4) Obligations partially insured or partially guaranteed 427
by any federal agency or instrumentality; 428
(5) Obligations of or fully guaranteed by the federal 430
national mortgage association, federal home loan mortgage 431
corporation, federal farm credit bank, or student loan marketing 432
association;
(6) Bonds and other obligations of this state; 434
(7) Bonds and other obligations of any county, township, 436
school district, municipal corporation, or other legally 437
constituted taxing subdivision of this state, which is not at the 438
time of such deposit, in default in the payment of principal or 439
interest on any of its bonds or other obligations, for which the 440
full faith and credit of the issuing subdivision is pledged; 442
(8) Bonds of other states of the United States which have 444
not during the ten years immediately preceding the time of such 445
deposit defaulted in payments of either interest or principal on 446
any of their bonds; 447
(9) Obligations guaranteed as to principal and interest by 449
the Ohio student aid commission; 450
(10) Shares of no-load money market mutual funds 452
consisting exclusively of obligations described in division 453
(B)(1) or (2) of this section and repurchase agreements secured 454
by such obligations. 455
(C) If the public depository fails to pay over any part of 457
the public deposit made therein as provided by law, the treasurer 458
shall sell at public sale any of the bonds or other securities 459
deposited with the treasurer pursuant to this section or section 460
131.09 of the Revised Code, or shall draw on any letter of credit 461
to the extent of such failure to pay. Thirty days' notice of 462
such sale shall be given in a newspaper of general circulation at 463
Columbus, in the case of the treasurer of state, and at the 464
county seat of the county in which the office of the treasurer is 465
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located, in the case of any other treasurer. When a sale of 466
bonds or other securities has been so made and upon payment to 467
the treasurer of the purchase money, the treasurer shall transfer 468
such bonds or securities whereupon the absolute ownership of such 469
bonds or securities shall pass to the purchasers. Any surplus 470
remaining after deducting the amount due the state or subdivision 471
and expenses of sale shall be paid to the public depository. 472
(D) An institution designated as a public depository may, 474
by written notice to the treasurer, designate a qualified trustee 475
and deposit the eligible securities required by this section with 476
the trustee for safekeeping for the account of the treasurer and 477
the institution as a public depository, as their respective 478
rights to and interests in such securities under this section may 479
appear and be asserted by written notice to or demand upon the 480
trustee. In such case, the treasurer shall accept the written 481
receipt of the trustee describing the securities which have been 482
deposited with the trustee by the public depository, a copy of 483
which shall also be delivered to the public depository. 484
Thereupon all such securities so deposited with the trustee are 485
deemed to be pledged with the treasurer and to be deposited with 486
the treasurer, for all the purposes of this section. 487
(E) The governing board may make provisions for the 489
exchange and release of securities and the substitution of other 490
eligible securities therefor except where the public depository 491
has deposited eligible securities with a trustee for safekeeping 492
as provided in this section. 493
(F) When the public depository has deposited eligible 495
securities described in division (B)(1) of this section with a 496
trustee for safekeeping, the public depository may at any time 497
substitute or exchange eligible securities described in division 498
(B)(1) of this section having a current market value equal to or 499
greater than the current market value of the securities then on 500
deposit and for which they are to be substituted or exchanged, 501
without specific authorization from any governing board, boards, 502
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or treasurer of any such substitution or exchange. 503
(G) When the public depository has deposited eligible 505
securities described in divisions (B)(2) to (10)(9) of this 506
section with a trustee for safekeeping, the public depository may 507
at any time substitute or exchange eligible securities having a 508
current market value equal to or greater than the current market 509
value of the securities then on deposit and for which they are to 510
be substituted or exchanged without specific authorization of any 511
governing board, boards, or treasurer of any such substitution or 512
exchange only if: 513
(1) The treasurer has authorized the public depository to 515
make such substitution or exchange on a continuing basis during a 516
specified period without prior approval of each substitution or 517
exchange. Such authorization may be effected by the treasurer 518
sending to the trustee a written notice stating that substitution 519
may be effected on a continuing basis during a specified period 520
which shall not extend beyond the end of the period of 521
designation during which the notice is given. The trustee may 522
rely upon such notice and upon the period of authorization stated 523
therein and upon the period of designation stated therein. 524
(2) No continuing authorization for substitution has been 526
given by the treasurer, the public depository notifies the 527
treasurer and the trustee of an intended substitution or 528
exchange, and the treasurer fails to object to the trustee as to 529
the eligibility or market value of the securities being 530
substituted within ten calendar days after the date appearing on 531
the notice of proposed substitution. The notice to the treasurer 532
and to the trustee shall be given in writing and delivered 533
personally or by certified or registered mail with a return 534
receipt requested. The trustee may assume in any case that the 535
notice has been delivered to the treasurer. In order for 536
objections of the treasurer to be effective, receipt of the 537
objections must be acknowledged in writing by the trustee. 538
(3) The treasurer gives written authorization for a 540
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substitution or exchange of specific securities. 541
(H) The public depository shall notify any governing 543
board, boards, or treasurer of any such substitution or exchange 544
under division (G)(1) or (2) of this section. Upon request from 545
the treasurer, the trustee shall furnish a statement of the 546
securities pledged against such public deposits. 547
(I) Any federal reserve bank or branch thereof located in 549
this state, without compliance with Chapter 1111. of the Revised 550
Code and without becoming subject to any other law of this state 553
relative to the exercise by corporations of trust powers 554
generally, is qualified to act as trustee for the safekeeping of 555
securities, under this section. Any institution mentioned in 556
section 135.03 of the Revised Code that holds a certificate of 557
qualification issued by the superintendent of financial 558
institutions or any institution complying with sections 1111.04,
1115.05 1111.05, and 1111.06 of the Revised Code, is qualified to 560
act as trustee for the safekeeping of securities, other than
those belonging to itself, under this section. Upon application 561
to the superintendent in writing by any such institution, the 562
superintendent shall investigate the applicant and ascertain 564
whether or not it has been authorized to execute and accept 565
trusts in this state and has safe and adequate vaults and 566
efficient supervision thereof for the storage and safekeeping 567
within this state of such securities. If the superintendent 568
finds that the applicant has been so authorized and does have 569
such vaults and supervision thereof, the superintendent shall 570
approve the application and issue a certificate to that effect, 571
the original or any certified copy of which shall be conclusive 572
evidence that the institution therein named is qualified to act 573
as trustee for the purposes of this section with respect to 574
securities other than those belonging to itself.
Notwithstanding the fact that a public depository is 576
required to pledge eligible securities in certain amounts to 577
secure deposits of public moneys, a trustee shall have no duty or 578
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obligation to determine the eligibility, market value, or face 579
value of any securities deposited with the trustee by a public 580
depository. This applies in all situations including, without 581
limitation, a substitution or exchange of securities. 582
Any charges or compensation of a designated trustee for 584
acting as such under this section shall be paid by the public 585
depository and in no event shall be chargeable to the state or 586
the subdivision or to the treasurer or to any officer of the 587
state or subdivision. Such charges or compensation shall not be 588
a lien or charge upon the securities deposited for safekeeping 589
prior or superior to the rights to and interests in such 590
securities of the state or the subdivision or of the treasurer. 591
The treasurer and the treasurer's bondsmen BONDERS or surety 592
shall be relieved from any liability to the state or the 593
subdivision or to the public depository for the loss or 594
destruction of any securities deposited with a qualified trustee 595
pursuant to this section.
Sec. 135.181. (A) As used in this section: 607
(1) "Public depository" means that term as defined in 609
section 135.01 of the Revised Code, but also means an institution 610
which receives or holds any public deposits as defined in section 611
135.31 of the Revised Code. 612
(2) "Public deposits," "public moneys," and "treasurer" 614
mean those terms as defined in section 135.01 of the Revised 615
Code, but also have the same meanings as are set forth in section 616
135.31 of the Revised Code. 617
(3) "Subdivision" means that term as defined in section 619
135.01 of the Revised Code, but also includes a county. 620
(B) In lieu of the pledging requirements prescribed in 622
sections 135.18 and 135.37 of the Revised Code, an institution 623
designated as a public depository at its option may pledge a 624
single pool of eligible securities to secure the repayment of all 625
public moneys deposited in the institution and not otherwise 626
secured pursuant to law, provided that at all times the total 627
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value of the securities so pledged, based on the valuations 628
prescribed in division (C) of this section, is at least equal to 629
one hundred ten per cent of the total amount of all public 630
deposits to be secured by the pooled securities, including the 631
portion of such deposits covered by any federal deposit 632
insurance. Each such institution shall carry in its accounting 633
records at all times a general ledger or other appropriate 634
account of the total amount of all public deposits to be secured 635
by the pool, as determined at the opening of business each day, 636
and the total value of securities pledged to secure such 637
deposits. 638
(C) The following securities, at the specified valuations, 640
shall be eligible as collateral for the purposes of division (B) 641
of this section, provided no such securities pledged as 642
collateral are at any time in default as to either principal or 643
interest: 644
(1) Obligations of or fully insured or fully guaranteed by 646
the United States or any federal government agency or 647
instrumentality: at face value; 648
(2) Obligations partially insured or partially guaranteed 650
by any federal government agency or instrumentality: at face 651
value;
(3) Obligations of or fully guaranteed by the federal 653
national mortgage association, federal home loan mortgage 654
corporation, federal farm, credit bank, or student loan marketing 655
association: at face value; 656
(4) Obligations of any state, county, municipal 658
corporation, or other legally constituted authority of any state, 659
or any instrumentality of any state, county, municipal 660
corporation, or other authority, which are secured as to the 661
payment of principal and interest by the holding in escrow of 662
obligations of the United States for which the full faith and 663
credit of the United States is pledged: at face value; 664
(5) Obligations of this state, or any county or other 666
17
legally constituted authority of this state, or any 667
instrumentality of this state, or such county or other authority: 668
at face value; 669
(6) Obligations of any other state: at ninety per cent of 671
face value; 672
(7) Obligations of any county, municipal corporation, or 674
other legally constituted authority of any other state, or any 675
instrumentality of such county, municipal corporation, or other 676
authority: at eighty per cent of face value; 677
(8) Notes representing loans made to persons attending or 679
planning to attend eligible institutions of education and to 680
their parents, and insured or guaranteed by the United States or 681
any agency, department, or other instrumentality thereof, or 682
guaranteed by the Ohio student aid commission pursuant to 683
sections 3351.05 to 3351.14 of the Revised Code: at face value; 684
(9) Any other obligations the treasurer of state approves: 686
at the percentage of face value the treasurer of state 687
prescribes;
(10) Shares of no-load money market mutual funds 689
consisting exclusively of obligations described in division 690
(C)(1), (2), or (3) of this section and repurchase agreements 691
secured by such obligations: at face value. 692
(D) The state and each subdivision shall have an undivided 694
security interest in the pool of securities pledged by a public 695
depository pursuant to division (B) of this section in the 696
proportion that the total amount of the state's or subdivision's 697
public moneys secured by the pool bears to the total amount of 698
public deposits so secured. 699
(E) An institution designated as a public depository shall 701
designate a qualified trustee and deposit with the trustee for 702
safekeeping the eligible securities pledged pursuant to division 703
(B) of this section. The institution shall give written notice 704
of the qualified trustee to any treasurer or treasurers 705
depositing public moneys for which such securities are pledged. 706
18
The treasurer shall accept the written receipt of the trustee 707
describing the pool of securities so deposited by the depository, 708
a copy of which also shall be delivered to the depository. 709
(F) Any federal reserve bank or branch thereof located in 711
this state, without compliance with Chapter 1111. of the Revised 712
Code and without becoming subject to any other law of this state 715
relative to the exercise by corporations of trust powers 716
generally, is qualified to act as trustee for the safekeeping of 717
securities, under this section. Any institution mentioned in 718
section 135.03 or 135.32 of the Revised Code which holds a
certificate of qualification issued by the superintendent of 719
financial institutions or any institution complying with sections 721
1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to 722
act as trustee for the safekeeping of securities under this 723
section, other than those belonging to itself or to an affiliate 724
as defined in division (A) of section 1101.01 of the Revised 725
Code. Upon application to the superintendent in writing by any 726
such institution, the superintendent shall investigate the 728
applicant and ascertain whether or not it has been authorized to 729
execute and accept trusts in this state and has safe and adequate 730
vaults and efficient supervision thereof for the storage and 731
safekeeping of such securities. If the superintendent finds that 732
the applicant has been so authorized and does have such vaults 733
and supervision thereof, the superintendent shall approve the 734
application and issue a certificate to that effect, the original 736
or any certified copy of which shall be conclusive evidence that 737
the institution named therein is qualified to act as trustee for 738
the purposes of this section with respect to securities other 739
than those belonging to itself or to an affiliate. 740
(G) The public depository at any time may substitute, 742
exchange, or release eligible securities deposited with a 743
qualified trustee pursuant to this section, provided that such 744
substitution, exchange, or release does not reduce the total 745
value of the securities, based on the valuations prescribed in 746
19
division (C) of this section, to an amount that is less than one 747
hundred ten per cent of the total amount of public deposits as 748
determined pursuant to division (B) of this section. 749
(H) Notwithstanding the fact that a public depository is 751
required to pledge eligible securities in certain amounts to 752
secure deposits of public moneys, a trustee shall have no duty or 753
obligation to determine the eligibility, market value, or face 754
value of any securities deposited with the trustee by a public 755
depository. This applies in all situations including, but not 756
limited to, a substitution or exchange of securities, but 757
excluding those situations effectuated by division (I) of this 758
section in which the trustee is required to determine face and 759
market value. 760
(I) If the public depository fails to pay over any part of 762
the public deposits made therein as provided by law and secured 763
pursuant to division (B) of this section, the treasurer shall 764
give written notice of this failure to the qualified trustee 765
holding the pool of securities pledged against public moneys 766
deposited in the depository, and at the same time shall send a 767
copy of this notice to the depository. Upon receipt of such 768
notice, the trustee shall transfer to the treasurer for public 769
sale such of the pooled securities as may be necessary to produce 770
an amount equal to the deposits made by the treasurer and not 771
paid over, less the portion of such deposits covered by any 772
federal deposit insurance, plus any accrued interest due on such 773
deposits; however, such amount shall not exceed the state's or 774
subdivision's proportional security interest in the market value 775
of the pool as of the date of the depository's failure to pay 776
over the deposits, as such interest and value are determined by 777
the trustee. The treasurer shall sell at public sale any of the 778
bonds or other securities so transferred. Thirty days' notice of 779
such sale shall be given in a newspaper of general circulation at 780
Columbus, in the case of the treasurer of state, and at the 781
county seat of the county in which the office of the treasurer is 782
20
located, in the case of any other treasurer. When a sale of 783
bonds or other securities has been so made and upon payment to 784
the treasurer of the purchase money, the treasurer shall transfer 785
such bonds or securities whereupon the absolute ownership of such 786
bonds or securities shall pass to the purchasers. Any surplus 787
after deducting the amount due the state or subdivision and 788
expenses of sale shall be paid to the public depository. 789
(J) Any charges or compensation of a designated trustee 791
for acting as such under this section shall be paid by the public 792
depository and in no event shall be chargeable to the state or 793
subdivision or to the treasurer or to any officer of the state or 794
subdivision. Such charges or compensation shall not be a lien or 795
charge upon the securities deposited for safekeeping prior or 796
superior to the rights to and interests in such securities of the 797
state or subdivision or of the treasurer. The treasurer and the 798
treasurer's bondspersons bonders or surety shall be relieved from 799
any liability to the state or subdivision or to the public 800
depository for the loss or destruction of any securities 801
deposited with a qualified trustee pursuant to this section. 802
(K) In lieu of placing its unqualified endorsement on each 804
security, a public depository pledging securities pursuant to 805
division (B) of this section that are not negotiable without its 806
endorsement or assignment may furnish to the qualified trustee 807
holding the securities an appropriate resolution and irrevocable 808
power of attorney authorizing the trustee to assign the 809
securities. The resolution and power of attorney shall conform 810
to such terms and conditions as the trustee prescribes. 811
(L) Upon request of a treasurer no more often than four 813
times per year, a public depository shall report the amount of 814
public moneys deposited by the treasurer and secured pursuant to 815
division (B) of this section, and the total value, based on the 816
valuations prescribed in division (C) of this section, of the 817
pool of securities pledged to secure public moneys held by the 818
depository, including those deposited by the treasurer. Upon 819
21
request of a treasurer no more often than four times per year, a 820
qualified trustee shall report such total value of the pool of 821
securities deposited with it by the depository and shall provide 822
an itemized list of the securities in the pool. These reports 823
shall be made as of the date the treasurer specifies. 824
Sec. 3333.25. There is hereby created the Ohio academic 833
scholarship payment fund, which shall be in the custody of the 834
treasurer of state but shall not be a part of the state treasury. 835
The fund shall consist of all moneys appropriated for the fund by 836
the general assembly and other moneys otherwise made available to 837
the fund. The payment fund shall be used for the payment of Ohio 838
academic scholarships or for additional scholarships to recognize 839
outstanding academic achievement and ability. The Ohio board of 840
regents shall administer this section and establish rules for the 841
distribution and awarding of any additional scholarships. 842
The board may direct the treasurer of state to invest any 845
moneys in the payment fund not currently needed for scholarship 846
payments, in any kinds of investments in which moneys of the Ohio 847
student aid commission PUBLIC EMPLOYEES RETIREMENT SYSTEM may be 848
invested.
The instruments of title of all investments shall be 850
delivered to the treasurer of state or to a qualified trustee 851
designated by the treasurer of state as provided in section 852
135.18 of the Revised Code. The treasurer of state shall collect 853
both principal and investment earnings on all investments as they 854
become due and pay them into the fund. 855
All deposits to the fund shall be made in financial 857
institutions of this state secured as provided in section 135.18 858
of the Revised Code. 859
Sec. 3345.32. (A) As used in this section: 868
(1) "State university or college" means the institutions 870
described in section 3345.27 of the Revised Code, the 871
northeastern Ohio universities college of medicine, and the 872
medical college of Ohio at Toledo. 873
22
(2) "Resident" has the meaning specified by rule of the 875
Ohio board of regents. 876
(3) "Statement of selective service status" means a 878
statement certifying one of the following: 879
(a) That the individual filing the statement has 881
registered with the selective service system in accordance with 882
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 883
App. 453, as amended; 884
(b) That the individual filing the statement is not 886
required to register with the selective service for one of the 887
following reasons: 888
(i) The individual is under eighteen or over twenty-six 890
years of age; 891
(ii) The individual is on active duty with the armed 893
forces of the United States other than for training in a reserve 894
or national guard unit; 895
(iii) The individual is a nonimmigrant alien lawfully in 897
the United States in accordance with section 101 (a)(15) of the 898
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended; 899
(iv) The individual is not a citizen of the United States 901
and is a permanent resident of the Trust Territory of the Pacific 903
Islands or the Northern Mariana Islands. 904
(4) "Institution of higher education" means any eligible 906
institution approved by the student aid commission UNITED STATES 908
DEPARTMENT OF EDUCATION pursuant to Chapter 3351. of the Revised 909
Code THE "HIGHER EDUCATION ACT OF 1965," 79 STAT. 1219, AS 910
AMENDED, or any institution whose students are eligible for 912
financial assistance under any of the programs described by 913
division (E) of this section.
(B) The Ohio board of regents shall, by rule, specify the 915
form of statements of selective service status to be filed in 916
compliance with divisions (C) to (F) of this section. Each 917
statement of selective service status shall contain a section 918
wherein a male student born after December 31, 1959, certifies 919
23
that the student has registered with the selective service system 921
in accordance with the "Military Selective Service Act," 62 Stat. 922
604, 50 U.S.C. App. 453, as amended. For those students not 924
required to register with the selective service, as specified in 925
divisions (A)(2)(b)(i) to (iv) of this section, a section shall 926
be provided on the statement of selective service status for the 927
certification of nonregistration and for an explanation of the 928
reason for the exemption. The board of regents may require that 929
such statements be accompanied by documentation specified by rule 930
of the board.
(C) A state university or college that enrolls in any 932
course, class, or program a male student born after December 31, 933
1959, who has not filed a statement of selective service status 934
with the university or college shall, regardless of the student's 935
residency, charge the student any tuition surcharge charged 936
students who are not residents of this state. 937
(D) No male born after December 31, 1959, shall be 939
eligible to receive any loan, grant, scholarship, or other 940
financial assistance for educational expenses under section 941
3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03, 942
5910.032, or 5919.34 of the Revised Code unless that person has 944
filed a statement of selective service status with that person's 945
institution of higher education.
(E) If an institution of higher education receives a 947
statement from an individual certifying that the individual has 949
registered with the selective service system in accordance with
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 950
App. 453, as amended or that the individual is exempt from 951
registration for a reason other than that the individual is under 953
eighteen years of age, the institution shall not require the 954
individual to file any further statements. If it receives a 955
statement certifying that the individual is not required to 956
register because the individual is under eighteen years of age, 957
the institution shall require the individual to file a new 958
24
statement of selective service status each time the individual 959
seeks to enroll for a new academic term or makes application for 961
a new loan or loan guarantee or for any form of financial 962
assistance for educational expenses, until it receives a 963
statement certifying that the individual has registered with the 964
selective service system or is exempt from registration for a
reason other than that the individual is under eighteen years of 966
age.
Sec. 3351.07. (A) The Ohio student aid commission may: 975
(1) Guarantee the loan of money, subject to section 977
3351.08 of the Revised Code and upon any other terms and 978
conditions as the commission may prescribe, to persons and 979
parents of persons attending or planning to attend eligible 980
institutions to assist them in meeting educational expenses; 981
(2) Reject or take, hold, and administer, on behalf of the 983
commission and for any of its purposes, real property, personal 984
property, and moneys, or any interest therein, and the income 985
therefrom, either absolutely or in trust, for any purpose of the 986
commission. The commission may invest its funds in any 987
investments listed in division (K) of this section. The 988
commission may acquire property or moneys for its purposes by the 990
acceptance of gifts, grants, bequests, devises, or loans; 991
provided, that no obligation of the commission shall be a debt of 992
the state, and the commission shall have no power to make its 993
debts payable out of moneys except those of the commission. 994
(3) Enter into such contracts as may be desirable with 996
eligible educational institutions, upon terms as may be agreed 998
upon between the commission and the institution, to provide for 999
the administration by the institution of any loan or loan plan 1,001
guaranteed by the commission, including applications therefor and 1,002
repayment thereof;
(4) Enter into contracts with any approved lender, upon 1,004
terms as may be agreed upon between the commission and the 1,005
approved lender, to provide for the administration by the 1,006
25
approved lender of any loan or loan plan guaranteed by the 1,007
commission, including applications therefor and terms and 1,008
repayment thereof, and to establish the conditions for payment by 1,009
the commission to the approved lender of the guarantee on any 1,010
loan. The commission may also enter into contracts with any 1,011
approved lender to provide assistance to lenders in the 1,012
administration of loans. No moneys of approved lenders or 1,013
borrowers that are temporarily administered by the commission 1,014
pursuant to the contracts shall be considered public moneys. A
loan shall be defaulted when, after the expiration of a 1,015
prescribed period of nonpayment and reasonable collection 1,016
efforts, the approved lender makes application to the commission 1,017
for payment on the loan stating that the loan is in default in 1,018
accordance with the terms of the federal law, contract, or 1,019
regulations of the commission, executed under this division. In
accordance with the "Higher Education Amendments of 1968," 82 1,020
Stat. 1020, 20 U.S.C.A. 1087, as amended, if a borrower dies, 1,021
becomes permanently and totally disabled, or is adjudged 1,022
bankrupt, the commission shall discharge the borrower's liability 1,023
on the borrower's debt by repaying the unpaid principal and 1,024
interest due thereon.
(5) Sue and be sued in the name of the commission; 1,026
(6) Collect loans guaranteed by the commission on which 1,028
the commission has met its guarantee obligations. The commission 1,029
may, if it prefers, employ a private collection agency or 1,030
agencies for the purpose of collecting loans on which it has met 1,031
its guarantee obligations. 1,032
(7) Adopt rules, not inconsistent with sections 3351.05 to 1,035
3351.14 of the Revised Code, governing the guarantee of loans
made by the commission, and governing any other matters relating 1,036
to the activities of the commission; 1,037
(8) Participate in or administer education-related state 1,039
or federal financial aid programs on behalf of the state in 1,040
accordance with state and federal law. 1,041
26
(9) Perform any other acts necessary or appropriate to 1,044
carry out effectively the objects and purposes of the commission. 1,045
(B) The Ohio student aid commission, for the purposes of 1,047
sections 3351.05 to 3351.14 of the Revised Code, shall: 1,048
(1) Prescribe the academic status required for a resident, 1,050
qualified nonresident, or the parent of a resident or qualified 1,051
nonresident to obtain guarantee of a loan; 1,052
(2) Approve eligible institutions in which a student must 1,054
be enrolled or accepted for enrollment in order for the student 1,055
or the student's parent to be eligible for guaranteed loans. 1,056
(C) For the purposes of this chapter, "approved lender" 1,058
means any bank as defined in section 1101.01 of the Revised Code, 1,059
any domestic savings and loan association as defined in section 1,060
1151.01 of the Revised Code, any credit union as defined in 1,061
section 1733.01 of the Revised Code, any federal credit union 1,062
established pursuant to federal law, any insurance company 1,063
organized or authorized to do business in this state, any 1,064
eligible educational institution approved pursuant to division 1,065
(B)(2) of this section that applies for and receives formal 1,066
approval as an eligible lender by the commission pursuant to the 1,067
rules of the commission as they pertain to that institution, any 1,068
pension fund eligible under the "Higher Education Amendments of 1,069
1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary 1,070
market operation designated under division (D)(B) of this 1,071
section, or any secondary market operation established pursuant 1,072
to the "Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A. 1,073
1071, as amended, or under the laws of any state. 1,074
(D)(B) The governor may designate one nonprofit 1,076
corporation secondary market operation to be the single nonprofit 1,077
private agency designated by the state under the "Higher 1,078
Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D), 1,079
as amended. The commission shall enter into appropriate 1,080
contracts with the designated secondary market operation that 1,081
shall be on not less favorable terms than those contracts entered 1,082
27
into by the commission with any other approved lender. No 1,083
approval by the commission shall be necessary for the transfer of 1,084
loans by any approved lender to the designated secondary market 1,085
operation.
(E)(C) The nonprofit corporation designated by the 1,087
governor under division (D)(B) of this section as the private 1,088
agency secondary market operation shall be considered to be an 1,089
agency of the state, in accordance with section 435(d)(1)(F) of 1,090
the "Higher Education Act of 1965," as amended, 101 Stat. 347, 20 1,091
U.S.C.A. 1085(d)(1)(F), AS AMENDED, exclusively for the purpose 1,092
of functioning as a secondary student loan market. The 1,094
corporation shall be considered a state agency only for the 1,095
purposes of this division and no other division or section of the 1,096
Revised Code regarding state agencies shall apply to the 1,097
corporation. No liability or obligation incurred by the 1,098
corporation shall be considered to be a liability or debt of the 1,099
state, nor shall the state be construed to act as guarantor of 1,100
any debt of the corporation.
(F)(D) The nonprofit corporation designated under division 1,102
(D)(B) of this section shall designate a separate nonprofit 1,103
corporation to operate exclusively for charitable and educational 1,104
purposes, complementing and supplementing the designating 1,105
corporation's secondary market operation for student loans 1,106
authorized under the "Higher Education Act of 1965," as amended, 1,107
101 Stat. 347, 20 U.S.C.A. 1085, AS AMENDED, and promoting the 1,108
general health and welfare of the state, the public interest, and 1,109
a public purpose through improving student assistance programs by 1,110
expanding access to higher education financing programs for 1,111
students and families in need of student financial aid. In 1,112
furtherance of such purposes, the separate nonprofit corporation 1,113
may do all of the following: 1,114
(1) Assist educational institutions in establishing 1,116
financial aid programs to help students obtain an economical 1,117
education; 1,118
28
(2) Encourage financial institutions to increase 1,120
educational opportunities by making funds available to both 1,121
students and educational institutions; 1,122
(3) Make available financial aid that supplements the 1,124
financial assistance provided by eligible and approved lenders 1,125
under state and federal programs; 1,126
(4) Develop and administer programs that do all of the 1,128
following: 1,129
(a) Provide financial aid and incidental student financial 1,131
aid information to students and their parents or other persons 1,132
responsible for paying educational costs of those students at 1,133
educational institutions; 1,134
(b) Provide financial aid and information relating to it 1,136
to and through educational institutions, enabling those 1,137
institutions to assist students financially in obtaining an 1,138
education and fully expanding their intellectual capacity and 1,139
skills; 1,140
(c) Better enable financial institutions to participate in 1,142
student loan programs and other forms of financial aid, assisting 1,143
students and educational institutions to increase education 1,144
excellence and accessibility. 1,145
(G)(E) The nonprofit corporation designated under 1,147
authority of division (F)(D) of this section shall do both of the 1,148
following: 1,149
(1) Establish the criteria, standards, terms, and 1,151
conditions for participation by students, parents, educational 1,152
institutions, and financial institutions in that corporation's 1,153
programs; 1,154
(2) Provide the governor a report of its programs and a 1,156
copy of its audited financial statements not later than one 1,157
hundred eighty days after the end of each fiscal year of the 1,158
corporation. 1,159
No liability, obligation, or debt incurred by the 1,161
corporation designated under authority of division (F)(D) of this 1,163
29
section or by any person under that corporation's programs shall
be, or be considered to be, a liability, obligation, or debt of, 1,164
or a pledge of the faith and credit of, the state, any political 1,165
subdivision of the state, or any state-supported or 1,166
state-assisted institution of higher education, nor shall the 1,167
state or any political subdivision of the state or any 1,168
state-supported or state-assisted institution of higher education 1,169
be or be construed to act as an obligor under or guarantor of any 1,170
liability, obligation, or debt of that corporation or of any 1,171
person under that corporation's programs or incur or be construed 1,172
to have incurred any other liability, obligation, or debt as a 1,173
result of any acts of the corporation. 1,174
(H)(F) The nonprofit corporation designated under 1,176
authority of division (F)(D) of this section shall not be deemed 1,177
to qualify by reason of the designation as a guarantor or an 1,179
eligible lender under sections 435(d) and (j) of the "Higher 1,181
Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A. 1,182
1085(d) and (j), AS AMENDED. 1,183
(J) As used in division (K) of this section: 1,185
(1) "American depositary receipt" means a receipt for the 1,187
shares of a foreign corporation held by an American bank or trust 1,188
company, representing the deposit of an equivalent amount of 1,189
underlying foreign shares. 1,190
(2) "Commingled stock investment fund" means a pooling of 1,192
securities to create a fund of a certain type or classification 1,193
of stock wherein participants share in the total return of the 1,194
fund represented by dividends, interest, and appreciation. 1,195
(3) "Derivative instrument" means a financial obligation 1,197
that derives its precise value from the value of one or more 1,198
other instruments or assets at the same point in time. 1,199
(4) "Pass-through security" means a security, representing 1,201
pooled debt obligations repackaged as shares, that passes income 1,202
and principal from debtors through an intermediary to investors. 1,203
(K) The commission shall have full power to invest the 1,205
30
funds: 1,206
(1)(a) In bonds of the United States or this state, or in 1,208
bonds, notes, debentures, or other obligations the principal and 1,209
interest of which are guaranteed in full by the United States 1,210
government or this state, or those for which the credit of the 1,211
United States is pledged for the payment of the principal and 1,212
interest thereof; 1,213
(b) In derivative instruments based on the bonds, notes, 1,215
debentures, or obligations described in division (K)(1)(a) of 1,217
this section.
(2)(a) In bonds, notes, debentures, or any other 1,219
obligations or securities issued by any federal government agency 1,220
presently or in the future established by act of congress; 1,221
(b) In derivative instruments based on the bonds, notes, 1,223
debentures, obligations, or securities described in division 1,225
(K)(2)(a) of this section.
(3)(a) In bonds, notes, certificates of indebtedness, or 1,227
other obligations of the state; any county, township, municipal 1,228
corporation, school district, conservancy district, or sanitary 1,229
district of the state; or any other legally constituted taxing or 1,230
bond issuing authority, subdivision, or municipal corporation 1,231
within the state; 1,232
(b) In derivative instruments based on the bonds, notes, 1,234
certificates of indebtedness, or obligations described in 1,235
division (K)(3)(a) of this section. 1,236
(4) In revenue bonds issued by a taxing subdivision of the 1,238
state; 1,239
(5) In farm loan bonds issued under the "Federal Farm Loan 1,242
Act of 1916," 39 Stat. 360, 12 U.S.C.A. 641, as amended;
(6) In notes secured by mortgages and insured by the 1,244
federal housing commissioner, or the commissioner's successor or 1,245
assigns, or in debentures issued by the commissioner, which are 1,246
guaranteed as to principal and interest by the federal housing 1,247
administration, an agency of the United States government; 1,248
31
(7)(a) In bonds or other interest-bearing obligations of 1,250
any other state of the United States that, within ten years prior 1,252
to the making of the investment, has not defaulted for more than 1,253
ninety days in the payment of principal or interest on any of its 1,254
bonds or other interest-bearing obligations;
(b) In derivative instruments based on the bonds or 1,256
obligations described in division (K)(7)(a) of this section. 1,258
(8) In obligations issued by a federal home loan bank 1,260
created under the "Federal Home Loan Bank Act of 1932," 47 Stat. 1,261
725, 12 U.S.C.A. 1421, as amended; 1,262
(9) In shares, certificates, or other evidences of 1,264
deposits issued by a federal savings and loan association 1,265
organized and incorporated under the "Home Owners' Loan Act of 1,266
1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended, but only to 1,267
the extent that the shares or certificates or other evidences of 1,268
deposits are insured under subchapter IV of the "National Housing 1,270
Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;
(10) In bonds issued by the home owners' loan corporation 1,272
created under the "Home Owners' Loan Act of 1933," 48 Stat. 128, 1,274
12 U.S.C.A. 1461, as amended;
(11) In obligations issued by national mortgage 1,276
associations created under the "National Housing Act," 48 Stat. 1,278
1246 (1934), 12 U.S.C.A. 1701, as amended;
(12) In shares, certificates, or other evidences of 1,280
deposits issued by a state-chartered savings and loan association 1,281
organized under the laws of the state, which association has 1,282
obtained insurance of accounts as provided in subchapter IV of 1,283
the "National Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1,285
1701, as amended, but only to the extent that the evidences of 1,287
deposits are insured under the act, as amended;
(13) In savings accounts in a national bank located in the 1,289
state or a state bank located in and organized under the laws of 1,290
the state by depositing the funds therein, provided that no 1,291
deposit shall be made unless the deposits of the depository bank 1,292
32
are insured by the federal deposit insurance corporation, created 1,293
under the "Federal Deposit Insurance Corporation Act of 1933," 48 1,295
Stat. 162, 12 U.S.C.A. 264, as amended; and provided further, 1,296
that the deposit of the funds in any such savings accounts in any 1,297
one bank shall not exceed the sum insured under the act, as 1,298
amended; 1,299
(14) In bonds and notes backed by pools of first liens on 1,301
fee simple estates in land in this state that are improved by 1,302
one- to four-family residential structures; 1,303
(15) In bonds, notes, or other evidences of indebtedness 1,305
that are secured by first liens upon improved commercial real 1,306
property, upon condition that: 1,307
(a) No mortgage loan on any one property, at the time of 1,309
investment by the commission, exceeds ninety per cent of the 1,310
value of the real property securing the loan unless that portion 1,311
of the loan exceeding ninety per cent is insured or the mortgage 1,312
is a participating or convertible mortgage; 1,313
(b) The aggregate investment in mortgage loans on 1,315
commercial property that are not insured by the federal housing 1,316
commissioner shall not exceed ten per cent of the total value of 1,317
all funds invested by the commission. 1,318
(16) In pass-through securities backed by pools of first 1,320
liens on fee simple estates in land in this state that are 1,321
improved by one- to four-family residential structures; 1,322
(17) In pass-through securities backed by pools of first 1,324
liens upon improved commercial real property, provided that no 1,325
mortgage loan on any one property, at the time of investment by 1,326
the commission, exceeds ninety per cent of the value of the real 1,327
property securing the loan unless that portion of the loan 1,328
exceeding ninety per cent is insured; 1,329
(18) In the following corporate, trust, or partnership 1,331
obligations: 1,332
(a) Notes, bonds, debentures, conditional sales contracts, 1,334
equipment trust certificates, pass-through securities, other 1,335
33
fixed obligations, or evidences of indebtedness or interests that 1,336
are the obligations of a corporation, trust, or partnership; 1,337
provided that the obligor is incorporated or created under the 1,338
laws of the United States or any state thereof, or of the 1,339
District of Columbia; and that the obligations are rated at the 1,341
time of purchase the equivalent of an "A-" or higher quality
rating according to the Standard and Poor's rating service by at 1,343
least two standard rating services; or that for a period of five
fiscal years for which the necessary statistical data are 1,344
available next preceding the date of investment, the corporation, 1,345
trust, or partnership, as disclosed by its annual fiscal 1,346
statements, had an average annual pre-tax income plus its average 1,347
annual fixed charges at least equal to two times its average 1,348
annual fixed charges for the same period; provided, that in 1,349
neither of the last two years of that period shall the sum of its 1,350
annual net income and its annual fixed charges have been less 1,351
than two times its fixed charges for the same period. As used in 1,352
this division, "fixed charges" means interest on funded or 1,353
unfunded debt, contingent interest charges, amortization of debt 1,354
discount, and expense and one-third of rentals for leased 1,355
property, and includes, in the case of consolidated earnings 1,356
statements of parent and subsidiary entities, which shall be used 1,357
if available, all fixed charges of the subsidiaries. 1,358
(b) Derivative instruments based on the corporate, trust, 1,360
or partnership obligations described in division (K)(18)(a) of 1,362
this section;
(c) Various forms of commercial paper issued by any 1,364
corporation that is incorporated under the laws of the United 1,365
States or any state thereof; banker's acceptances that are 1,366
eligible for discount at any federal reserve bank; negotiable 1,367
time certificates of deposit issued by commercial banks and 1,368
domestic savings and loan associations as defined in section 1,369
1151.01 of the Revised Code, if the obligations mature within 1,370
nine months from the date of purchase; and repurchase agreements 1,371
34
secured by obligations of the United States treasury or federal 1,372
agencies or by any other money market instruments specified in 1,373
this section; 1,374
(d) Corporate debentures convertible or exchangeable into 1,376
common stock, provided that at the time of acquisition the 1,377
requirements of division (K)(20) of this section are met. 1,378
(19) In real estate located within the United States; 1,380
provided, that the aggregate of all investments made under this 1,381
division shall not exceed twenty-five per cent of the total value 1,382
of all funds invested by the commission, except that no 1,384
investment in real estate made under authority granted elsewhere 1,385
in this section shall be counted toward this limitation. 1,386
The commission may invest under this division in any 1,388
direct, indirect, or beneficial interest in real property, 1,389
including, but not limited to, improved or unimproved real 1,390
property, suitable or adaptable without excessive cost for more 1,391
than one use, and whether or not income-producing; mortgages; 1,392
deeds of trust; notes secured by real property; leaseholds; 1,393
leases; ground leases; air rights; limited partnerships; real 1,394
property interests owned, developed, or managed by joint ventures 1,395
or limited partnerships; variable notes secured by real property; 1,396
participations, created by any person regularly engaged in the 1,397
business of making, or acting as a broker of, mortgage loans, in 1,398
notes secured by real property; interests in collective 1,399
investment funds; corporations, trusts, or associations that 1,400
qualify as real estate investment trusts under section 856 of the 1,401
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 856, 1,403
as amended; interests in or real property for the development of 1,404
natural resources, excluding oil or gas; and condominium 1,405
interests, provided that liability is limited to the amount of 1,406
the investment. Unimproved real property or interests in the 1,407
property acquired shall be subject to a commercial development 1,408
plan or a natural resources development plan. 1,409
Real property purchased under this division may be improved 1,411
35
by the commission. Expenditures for improvements may include, 1,412
but are not limited to, expenditures for demolition of existing 1,413
structures, grading and landscaping, construction of new 1,414
structures, modification of existing structures, fixtures, 1,415
equipment, and related personal property. The commission may 1,416
manage the real property or may contract for management 1,417
responsibilities with firms having expertise in the management of 1,418
similar real property. 1,419
Real property purchased or improved under this division: 1,421
(a) Shall be geographically dispersed; 1,423
(b) May be leased to corporations, partnerships, or sole 1,425
proprietorships with or without purchase option provisions, and 1,426
lease payments may, but need not, include all or part of the 1,427
purchase and improvement costs; 1,428
(c) May be mortgaged to facilitate activities authorized 1,430
in this division. 1,431
(20)(a) In common and preferred stocks and American 1,433
depositary receipts, provided the stocks are issued or guaranteed 1,434
by a corporation created or existing under the laws of the United 1,435
States or any state thereof and the following criteria are met; 1,436
or the stocks or American depositary receipts are, at the time of 1,437
the commission's acquisition, included in the Standard and Poor's 1,439
Composite 500-Stock Index or 400 Mid-Cap Index, or listed on the 1,441
New York or American stock exchange; or the American depositary 1,443
receipts meet the following criteria: 1,444
(i) For a period of five fiscal years for which the 1,446
necessary statistical data are available next preceding the date 1,447
of investment, the corporation, as disclosed by its published 1,448
fiscal annual statements, has had an average annual net income 1,449
plus its average annual fixed charges at least equal to one and 1,450
one-half times the sum of its average annual dividend or 1,451
distribution requirement for preferred stock and its average 1,452
annual fixed charges for the same period; provided, during 1,453
neither of the last two years of the period shall the sum of its 1,454
36
annual net income and its annual fixed charges be less than one 1,455
and one-half times the sum of its dividend or distribution 1,456
requirements for preferred stock and its fixed charges for the 1,457
same period. As used in this paragraph, "fixed charges" means 1,458
interest on funded or unfunded debt, contingent interest charges, 1,459
amortization of debt discount, and expense and rentals for leased 1,460
property and, in the case of consolidated earnings statements of 1,461
parent and subsidiary corporations, includes all fixed charges 1,462
and preferred dividend or distribution requirements, if any, of 1,463
the subsidiaries. 1,464
(ii) The corporation has no arrears of dividends or 1,466
distributions on its preferred stock; 1,467
(iii) The common stock or American depositary receipt is 1,469
registered on a national securities exchange as provided in the 1,470
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.A. 77b, 1,473
or, if traded only in the over-the-counter market, at least five 1,474
member firms of the national association of securities dealers 1,475
make markets in the stock or American depositary receipt. 1,476
Registration is not required of the common stock of a bank that 1,477
is a member of the federal deposit insurance corporation or a 1,478
bank holding company and has capital funds, represented by 1,479
capital, surplus, and undivided profits, of at least twenty 1,480
million dollars; the common stock of a life insurance or an 1,481
insurance holding company that has capital funds, represented by 1,482
capital, special surplus funds, and unassigned surplus, of at 1,483
least fifty million dollars; or the common stock of a fire or 1,484
casualty insurance company, or a combination thereof, that has 1,485
capital funds represented by capital, net surplus, and voluntary 1,486
reserves, of at least fifty million dollars; 1,487
(iv) The preferred stock of the corporation, if any is 1,489
outstanding, qualifies for investment under division (K)(18)(a) 1,491
of this section;
(v) The corporation, having no preferred stock 1,493
outstanding, has had either earnings before interest and taxes 1,494
37
for the five fiscal years next preceding the date of investment 1,495
of at least twice the interest on all mortgages, bonds, 1,496
debentures, and funded debts, if any, after deduction of the 1,497
proper charges for replacements, depreciation, and obsolescence 1,498
or the corporation's senior subordinated debt obligations are 1,499
rated "A-" or higher quality rating according to the Standard and 1,500
Poor's rating service or the equivalent rating in another 1,501
standard rating service; 1,502
(vi) The corporation has paid a cash dividend or 1,504
distribution on its common stock in at least three years of the 1,505
five-year period next preceding the date of investment, and the 1,506
aggregate net earnings available for dividends or distributions 1,507
on the common stock of the corporation for the whole of the 1,508
period has been at least equal to the amount of the dividends or 1,509
distributions paid, except that ten per cent of the total value 1,510
of all funds invested by the commission may be invested in 1,511
nondividend paying common stocks; 1,512
(vii) In applying the earnings test under this division to 1,514
any issuing, assuming, or guaranteeing corporation, where the 1,515
corporation has acquired its property or any substantial part 1,516
thereof within a five-year period immediately preceding the date 1,517
of investment by consolidations, merger, or by the purchase of 1,518
all or a substantial portion of the property of any other 1,519
corporation or corporations, or has acquired the assets of any 1,520
unincorporated business enterprise by purchase or otherwise, net 1,521
income, fixed charges, and preferred dividends or distributions 1,522
of the several predecessor or constituent corporations or 1,523
enterprises shall be consolidated and adjusted so as to ascertain 1,524
whether or not the applicable requirements of this section have 1,525
been complied with. 1,526
(b) In derivative instruments based on the stocks or 1,528
American depositary receipts that qualify for investment under 1,529
division (K)(20)(a) of this section; 1,530
(c) In beneficial interests in commingled stock investment 1,532
38
funds; 1,533
(d) The total value of common and preferred stocks, 1,535
American depositary receipts, derivative instruments, and 1,536
commingled stock investment fund investments made under this 1,537
division shall not exceed fifty per cent of the total value of 1,538
all funds invested by the commission, provided: 1,539
(i) Not more than one and one-half per cent of the total 1,541
value of the funds is invested in the common stock of a single 1,542
corporation; 1,543
(ii) The total number of common shares in a single 1,545
corporation does not exceed ten per cent of the issued and 1,546
outstanding common stock of such corporation. 1,547
(e) As used in division (K)(20)(d) of this section, 1,549
"value" consists of cash, the par value of unpaid balance of all 1,550
unmatured or unpaid investments requiring the payment of a fixed 1,551
amount at payment date, and the cost of all other investments. 1,552
(21)(a) In debt or equity interests in either of the 1,554
following: 1,555
(i) Any corporation, partnership, proprietorship, or other 1,557
entity not otherwise meeting the investment requirements of this 1,558
section, provided more than one-half of its assets are within 1,559
this state, more than one-half of its employees are employed 1,560
within this state, or its principal office is located within this 1,561
state, and provided liability is limited to the amount of the 1,562
investment; 1,563
(ii) Venture capital firms having an office within this 1,565
state, provided that, as a condition of the commission making an 1,566
investment in a venture capital firm, the firm shall agree to use 1,567
its best efforts to make investments, in an aggregate amount at 1,568
least equal to the investment to be made by the commission in 1,569
that venture capital firm, in small businesses having their 1,570
principal offices within this state and having either more than 1,571
one-half of their assets within this state or more than one-half 1,572
of their employees employed within this state. 1,573
39
(b) Investments made under division (K)(21) of this 1,575
section shall not exceed in the aggregate five per cent of the 1,576
total value of all funds invested by the commission. 1,577
(c) As used in division (K)(21) of this section: 1,579
(i) "Venture capital firm" means any corporation, 1,581
partnership, proprietorship, or other entity, the principal 1,582
business of which is or will be the making of investments in 1,583
small businesses. 1,584
(ii) "Small business" means any corporation, partnership, 1,586
proprietorship, or other entity that either does not have more 1,587
than four hundred employees when the investment is made or would 1,588
qualify as a small business for the purpose of receiving 1,589
financial assistance from small business investment companies 1,590
licensed under the "Small Business Investment Act of 1958," 72 1,591
Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small 1,592
business administration. 1,593
(iii) "Equity interests" means limited partnership 1,595
interests and other equity interests in which liability is 1,596
limited to the amount of the investment, but does not mean 1,597
general partnership interests or other interests involving 1,598
general liability. 1,599
(22) In the following Canadian obligations, which shall 1,601
not exceed fifteen per cent of the total value of all funds 1,602
invested by the commission: bonds, debentures, notes, or other 1,604
obligations issued, guaranteed, or assumed as to both principal 1,605
and interest by the government of Canada, by any province of 1,606
Canada, or by any city of Canada that has a population of not 1,607
less than one hundred fifty thousand, if all of the following 1,608
apply:
(a) The faith and credit of the issuer, guarantor, or 1,610
assumer of the bonds, debentures, notes, or other obligations is 1,611
pledged for the payment of principal and interest thereof, and 1,612
the principal and interest thereof is payable in United States 1,614
funds, either unconditionally or at the option of the holder; 1,615
40
(b) Any such city, if the issuer, guarantor, or assumer is 1,617
a city, has power to levy taxes on the taxable real property 1,618
therein or to collect other revenues for the payment of both 1,619
principal and interest of the bonds, debentures, notes, or other 1,620
obligations without limitation of rate or amount; 1,621
(c) The issuer, guarantor, or assumer of the bonds, 1,623
debentures, notes, or other obligations has not within ten years 1,624
prior to the making of the investment defaulted in payment of 1,625
principal or interest of any debt evidenced by its bonds, 1,626
debentures, notes, or other obligations for more than ninety 1,627
days; 1,628
(d) The bonds, debentures, notes, or other obligations are 1,630
rated at the time of purchase the equivalent of an "A-" or higher 1,631
quality rating according to the Standard and Poor's rating 1,632
service by at least two standard rating services or, if not 1,633
rated, are certified in writing by two or more such services to 1,634
be of investment quality equivalent to or higher than the quality 1,635
of bonds rated an "A-". 1,636
(23) In obligations issued, assumed, or guaranteed by the 1,638
international bank for reconstruction and development, the Asian 1,639
development bank, the inter-American development bank, the 1,640
African development bank, the international finance corporation, 1,641
or other similar development bank in which the president, as 1,642
authorized by congress and on behalf of the United States, has 1,644
accepted membership; 1,645
(24) In general obligations backed by the full faith and 1,647
credit of the state of Israel. All interest and principal shall 1,648
be denominated and payable in United States funds. 1,649
(25) In debt or equity interests in or issued by foreign 1,651
entities or any instrument based on, derived from, or related to 1,652
those interests and foreign currency denominated contracts or 1,653
obligations. The investments made under this division shall not 1,654
exceed in the aggregate ten per cent of the total value of all 1,655
funds invested by the commission. 1,656
41
Sec. 3365.08. (A) A college that expects to receive or 1,665
receives reimbursement under section 3365.07 of the Revised Code 1,666
shall furnish to a participant all textbooks and materials 1,667
directly related to a course taken by the participant under 1,668
division (B) of section 3365.04 of the Revised Code. No college 1,669
shall charge such participant for tuition, textbooks, materials, 1,670
or other fees directly related to any such course. 1,671
(B) No student enrolled under this chapter in a course for 1,673
which credit toward high school graduation is awarded is eligible 1,674
for any SHALL RECEIVE DIRECT financial aid under Chapter 3351. of 1,676
the Revised Code THROUGH ANY STATE OR FEDERAL PROGRAM.
(C) If a school district provides transportation for 1,678
resident school students in grades eleven and twelve under 1,679
section 3327.01 of the Revised Code, a parent of a pupil enrolled 1,680
in a course under division (B) of section 3365.04 of the Revised 1,681
Code may apply to the board of education for full or partial 1,682
reimbursement for the necessary costs of transporting the student 1,683
between the secondary school he THE STUDENT attends and the 1,684
college in which he THE STUDENT is enrolled. Reimbursement may 1,685
be paid solely from funds received by the district under division 1,686
(K) of section 3317.024 of the Revised Code. The state board of 1,688
education shall establish guidelines, based on financial need, 1,689
under which a district may provide such reimbursement. 1,690
Sec. 3366.01. As used in this chapter, the following words 1,700
and terms have the following meanings unless the context 1,701
indicates a different meaning or intent:
(A) "Bond proceedings" means the order, trust, agreement, 1,704
indenture and other agreements, or amendments and supplements to 1,705
the foregoing, or any one or more or combination thereof, 1,706
authorizing or providing for the terms and conditions applicable 1,707
to, or providing for the issuance, security, or liquidity of, 1,708
obligations and the provisions contained in such obligations. 1,709
(B) "Bond service charges" means principal, including 1,712
mandatory sinking fund requirements for retirement of 1,713
42
obligations, and interest, and redemption premium, if any, 1,714
required to be paid on obligations.
(C) "Bond service fund" means the applicable fund and 1,717
accounts therein created in the bond proceedings for and pledged 1,718
to the payment of bond service charges, including all moneys and 1,719
investments, and earnings from investments, credited and to be 1,720
credited thereto.
(D) "Costs of attendance" means all costs of a student 1,723
incurred in connection with a program of study at an eligible 1,724
institution, as determined by the institution, including tuition; 1,725
instructional fees; room and board; books, computers, and 1,726
supplies; and other related fees, charges, and expenses. 1,727
(E) "Designated nonprofit corporation" means the nonprofit 1,730
corporation designated under division (F)(D) of section 3351.07 1,731
of the Revised Code to operate exclusively for charitable and 1,733
educational purposes by expanding access to higher education 1,734
financing programs for students and families in need of student 1,735
financial aid.
(F) "Education loan" means a loan made by an eligible 1,738
lender pursuant to the policy guidelines to or for the benefit of 1,740
a student for the purpose of financing part or all of the
student's costs of attendance. 1,741
(G) "Eligible borrower" means any of the following: 1,744
(1) Individuals who are residents of the state, and who 1,746
are attending and are in good standing in, or who have been 1,747
accepted for attendance at, any eligible institution located in 1,748
this state or elsewhere, on a part-time or full-time basis, to 1,749
pursue an associate, baccalaureate, or advanced degree or a 1,750
nursing diploma; 1,751
(2) Individuals who reside outside the state and who have 1,754
been accepted for attendance at, or who are attending and are in 1,755
good standing in, any eligible institution located in this state, 1,756
on a part-time or full-time basis, to pursue an associate,
baccalaureate, or advanced degree or a nursing diploma; 1,757
43
(3) Individuals who are parents or legal guardians of, or 1,760
other persons, as set forth in the policy guidelines, borrowing 1,761
under an education loan for the benefit of individuals meeting 1,762
requirements set forth in division (G)(1) or (2) of this section, 1,763
in order to assist them in paying costs of attendance. 1,764
(H)(1) "Eligible institution" means an institution 1,767
described in any of divisions (H)(1)(a), (b), or (c) of this 1,768
section that satisfies all of the requirements set forth in 1,770
divisions (H)(2), (3), and (4) of this section. 1,771
(a) The institution is a state-assisted post-secondary 1,774
educational institution within this state.
(b) The institution is a nonprofit institution within this 1,777
state having a certificate of authorization from the Ohio board 1,778
of regents pursuant to Chapter 1713. of the Revised Code. 1,779
(c) The institution is a post-secondary educational 1,782
institution similar to one described in division (H)(1)(a) or (b) 1,783
of this section that is located outside this state and that is 1,784
similarly approved by the appropriate agency of that state. 1,785
(2) The institution is accredited by the appropriate 1,787
regional and, when appropriate, professional accrediting 1,788
associations within whose jurisdiction it falls. 1,789
(3) The institution satisfies the eligibility requirements 1,792
for participation in the federal family education loan program 1,793
authorized under Title IV, Part B, of the "Higher Education Act 1,795
of 1965," 20 U.S.C.A. 1071 et seq., as amended, as long as that 1,797
program remains in existence.
(4) The institution satisfies the other conditions set 1,799
forth in the policy guidelines. 1,800
(I) "Eligible lender" means a bank, national banking 1,802
association, savings bank, savings and loan association, or 1,803
credit union having an office in this state that satisfies the 1,804
criteria for eligible lenders established pursuant to the policy 1,805
guidelines. 1,806
(J) "Governmental agency" means the state and any state 1,809
44
department, division, commission, institution, or authority; the 1,810
United States or any agency thereof; or any agency, commission, 1,811
or authority established pursuant to an interstate compact or 1,812
agreement; or any combination of the foregoing. 1,813
(K) "Issuing authority" means the treasurer of state, or 1,816
the officer who by law performs the functions of the treasurer of 1,817
state.
(L) "Obligations" means the bonds, notes, or securities of 1,820
this state issued by the issuing authority pursuant to this 1,821
chapter.
(M) "Person" means any individual, corporation, business 1,824
trust, estate, trust, partnership, or association, any federal, 1,825
state, interstate, regional, or local governmental agency, any 1,826
subdivision of the state, or any combination of these. 1,827
(N) "Pledged receipts" means, to the extent the following 1,830
are pledged by the bond proceedings for the payment of bond 1,831
service charges: all receipts representing moneys accruing from 1,832
or in connection with the repayment of education loans, including 1,833
interest and payments from any guarantee or insurance in respect 1,834
to such education loans; accrued interest received from the sale 1,835
of obligations; the balances in the special funds; income from 1,836
the investment of the special funds; all right, title, or 1,837
interest of the state in any education loans and any guarantees 1,838
or insurance in respect thereof; all right, title, and interest 1,839
of the designated nonprofit corporation in the education loans 1,840
and any guarantees or insurance in respect thereof, and any money 1,841
representing the proceeds of obligations or any income from or 1,842
interest on those proceeds; or any other gifts, grants, 1,843
donations, and pledges and any income and receipts therefrom, 1,844
available and pledged for the payment of bond service charges. 1,845
(O) "Policy guidelines" means the rules adopted pursuant 1,848
to division (A) of section 3366.03 of the Revised Code. 1,849
(P) "Proceeds loan" means the transfer, pursuant to a loan 1,852
agreement or agency agreement, of the proceeds of the 1,853
45
obligations, or the deposit of the proceeds of the obligations 1,854
with a trustee in trust under a trust agreement, indenture, or 1,855
other trust document under the bond proceedings pending their 1,856
disbursement for the purposes authorized by this chapter. 1,857
(Q) "Resident" means any student who would qualify as a 1,860
resident of this state for state subsidy and tuition surcharge 1,861
purposes under rules adopted by the Ohio board of regents under 1,862
section 3333.31 of the Revised Code. 1,863
(R) "Special funds" or "funds" means the bond service fund 1,866
and any other funds, including reserve funds, created under the 1,867
bond proceedings, including all moneys and investments, and 1,868
earnings from investment, credited and to be credited thereto. 1,869
(S) "Student" means an individual described in division 1,872
(G)(1) or (2) of this section who meets requirements established 1,873
under the policy guidelines. "Student" includes dependent and 1,874
independent undergraduate, graduate, and professional students. 1,875
(T) "Subdivision" has the same meaning as in division (MM) 1,878
of section 133.01 of the Revised Code. 1,879
Sec. 4501.02. (A) There is hereby created in the 1,888
department of public safety a bureau of motor vehicles, which 1,889
shall be administered by a registrar of motor vehicles. The 1,890
registrar shall be appointed by the director of public safety and 1,891
shall serve at his THE DIRECTOR'S pleasure. 1,892
The registrar shall administer the laws of the state 1,894
relative to the registration of and certificates of title for 1,895
motor vehicles, and the licensing of motor vehicle dealers, motor 1,896
vehicle leasing dealers, distributors, and salespersons, and of 1,897
motor vehicle salvage dealers, salvage motor vehicle auctions, 1,898
and salvage motor vehicle pools. The registrar also shall, in 1,899
accordance with section 4503.61 of the Revised Code, take those 1,900
steps necessary to enter this state into membership in the 1,901
international registration plan and carry out his THE REGISTRAR'S 1,903
other duties under that section. The registrar, with the 1,904
approval of the director of public safety, may do all of the 1,905
46
following:
(1) Adopt such forms and rules as are necessary to carry 1,907
out all laws he THE REGISTRAR is required to administer; 1,908
(2) Appoint such number of assistants, deputies, clerks, 1,910
stenographers, and other employees as are necessary to carry out 1,911
such laws; 1,912
(3) Acquire or lease such facilities as are necessary to 1,914
carry out the duties of his THE REGISTRAR'S office. 1,915
The registrar shall give a bond for the faithful 1,917
performance of his THE REGISTRAR'S duties in such amount and with 1,919
such security as the director approves. When in the opinion of 1,920
the director it is advisable, any deputy or other employee may be 1,921
required to give bond in such amount and with such security as 1,922
the director approves. In the discretion of the director, the 1,923
bonds authorized to be taken on deputies or other employees may 1,924
be individual, schedule, or blanket bonds. 1,925
The registrar shall furnish the director of the Ohio 1,927
student aid commission with the information required under 1,928
division (C) of section 3351.071 of the Revised Code. 1,929
The director of public safety may investigate the 1,931
activities of the bureau and have access to its records at any 1,932
time, and the registrar shall make a report to the director at 1,933
any time upon request. 1,934
All laws relating to the licensing of motor vehicle 1,936
dealers, motor vehicle leasing dealers, distributors, and 1,937
salespersons, and of motor vehicle salvage dealers, salvage motor 1,938
vehicle auctions, and salvage motor vehicle pools, designating 1,939
and granting power to the registrar shall be liberally construed 1,940
to the end that the practice or commission of fraud in the 1,941
business of selling motor vehicles and of disposing of salvage 1,942
motor vehicles may be prohibited and prevented. 1,943
(B) There is hereby created in the department of public 1,945
safety a division of emergency medical services, which shall be 1,946
administered by an executive director of emergency medical 1,947
47
services appointed under section 4765.03 of the Revised Code. 1,948
Section 2. That existing sections 111.15, 131.15, 135.18, 1,950
135.181, 3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 1,952
and sections 3351.05, 3351.06, 3351.071, 3351.08, 3351.09, 1,953
3351.10, 3351.11, 3351.12, 3351.13, and 3351.131 of the Revised 1,954
Code are hereby repealed.
Section 3. Section 135.18 of the Revised Code is presented 1,956
in this act as a composite of the section as amended by both Am. 1,958
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 1,960
letters. Section 135.181 of the Revised Code is presented in 1,961
this act as a composite of the section as amended by Am. Sub. 1,962
S.B. 81, Am. Sub. S.B. 293, and Am. Sub. H.B. 538 of the 121st 1,963
General Assembly, with the new language of none of the acts shown 1,965
in capital letters. Sections 3333.25 and 3351.07 of the Revised 1,966
Code are presented in this act as composites of the sections as 1,967
amended by both Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the 1,968
121st General Assembly, with the new language of neither of the 1,970
acts shown in capital letters. This is in recognition of the 1,971
principle stated in division (B) of section 1.52 of the Revised 1,972
Code that such amendments are to be harmonized where not 1,973
substantively irreconcilable and constitutes a legislative 1,974
finding that such is the resulting version in effect prior to the 1,975
effective date of this act.