CORRECTED VERSION 1
As Passed by the Senate 2
122nd General Assembly 5
Regular Session Sub. H. B. No. 562 6
1997-1998 7
REPRESENTATIVES DAMSCHRODER-TERWILLEGER-TAYLOR-GARCIA-MOTTLEY- 9
AMSTUTZ-OPFER-SCHULER-GRENDELL-LEWIS-JOHNSON-TIBERI 10
12
A B I L L
To amend sections 111.15, 131.15, 135.18, 135.181, 14
3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 15
4501.02 and to repeal sections 3351.05, 3351.06, 17
3351.071, 3351.08, 3351.09, 3351.10, 3351.11, 18
3351.12, 3351.13, and 3351.131 of the Revised 20
Code to remove statutory references to the Ohio 21
Student Aid Commission. 22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That sections 111.15, 131.15, 135.18, 135.181, 25
3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 of the 26
Revised Code be amended to read as follows: 27
Sec. 111.15. (A) As used in this section: 36
(1) "Rule" includes any rule, regulation, bylaw, or 38
standard having a general and uniform operation adopted by an 39
agency under the authority of the laws governing the agency; any 40
appendix to a rule; and any internal management rule. "Rule" 41
does not include any guideline adopted pursuant to section 42
3301.0714 of the Revised Code, any order respecting the duties of 43
employees, any finding, any determination of a question of law or 44
fact in a matter presented to an agency, or any rule promulgated 45
pursuant to Chapter 119., section 4141.14, division (C)(1) or (2) 46
of section 5117.02, or section 5703.14 of the Revised Code. 47
"Rule" includes any amendment or rescission of a rule. 48
(2) "Agency" means any governmental entity of the state 50
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and includes, but is not limited to, any board, department, 51
division, commission, bureau, society, council, institution, 52
state college or university, community college district, 53
technical college district, or state community college. "Agency" 54
does not include the general assembly, the adjutant general's 55
department, or any court. 56
(3) "Internal management rule" means any rule, regulation, 58
bylaw, or standard governing the day-to-day staff procedures and 59
operations within an agency. 60
(4) "Substantive revision" has the same meaning as in 62
division (J) of section 119.01 of the Revised Code. 63
(B)(1) Any rule, other than a rule of an emergency nature, 65
adopted by any agency pursuant to this section shall be effective 66
on the tenth day after the day on which the rule in final form 67
and in compliance with division (B)(3) of this section is filed 68
as follows: 69
(a) Two certified copies of the rule shall be filed with 71
both the secretary of state and the director of the legislative 72
service commission; 73
(b) Two certified copies of the rule shall be filed with 75
the joint committee on agency rule review. Division (B)(1)(b) of 76
this section does not apply to any rule to which division (D) of 77
this section does not apply. 78
An agency that adopts or amends a rule that is subject to 80
division (D) of this section shall assign a review date to the 82
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 83
assigned to a rule exceeds the five-year maximum, the review date 84
for the rule is five years after its effective date. A rule with 85
a review date is subject to review under section 119.032 of the 86
Revised Code. This paragraph does not apply to a rule of a state 88
college or university, community college district, technical
college district, or state community college. 89
If all copies are not filed on the same day, the rule shall 91
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be effective on the tenth day after the day on which the latest 92
filing is made. If an agency in adopting a rule designates an 93
effective date that is later than the effective date provided for 94
by division (B)(1) of this section, the rule if filed as required 95
by such division shall become effective on the later date 96
designated by the agency. 97
Any rule that is required to be filed under division (B)(1) 99
of this section is also subject to division (D) of this section 100
if not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), 102
or (8) of this section.
(2) A rule of an emergency nature necessary for the 104
immediate preservation of the public peace, health, or safety 105
shall state the reasons for the necessity. Copies of the 106
emergency rule, in final form and in compliance with division 107
(B)(3) of this section, shall be filed as follows: two certified 108
copies of the emergency rule shall be filed with both the 109
secretary of state and the director of the legislative service 110
commission, and one certified copy of the emergency rule shall be 111
filed with the joint committee on agency rule review. The 112
emergency rule is effective immediately upon the latest filing, 113
except that if the agency in adopting the emergency rule 114
designates an effective date, or date and time of day, that is 115
later than the effective date and time provided for by division 116
(B)(2) of this section, the emergency rule if filed as required 117
by such division shall become effective at the later date, or 118
later date and time of day, designated by the agency. 119
An emergency rule becomes invalid at the end of the 121
ninetieth day it is in effect. Prior to that date, the agency 122
may file the emergency rule as a nonemergency rule in compliance 123
with division (B)(1) of this section. The agency may not refile 124
the emergency rule in compliance with division (B)(2) of this 125
section so that, upon the emergency rule becoming invalid under 126
such division, the emergency rule will continue in effect without 127
interruption for another ninety-day period. 128
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(3) An agency shall file a rule under division (B)(1) or 130
(2) of this section in compliance with the following standards 131
and procedures: 132
(a) The rule shall be numbered in accordance with the 134
numbering system devised by the director for the Ohio 135
administrative code. 136
(b) The rule shall be prepared and submitted in compliance 138
with the rules of the legislative service commission. 139
(c) The rule shall clearly state the date on which it is 141
to be effective and the date on which it will expire, if known. 142
(d) Each rule that amends or rescinds another rule shall 144
clearly refer to the rule that is amended or rescinded. Each 145
amendment shall fully restate the rule as amended. 146
If the director of the legislative service commission or 148
the director's designee gives an agency written notice pursuant 150
to section 103.05 of the Revised Code that a rule filed by the 151
agency is not in compliance with the rules of the legislative 152
service commission, the agency shall within thirty days after 153
receipt of the notice conform the rule to the rules of the 154
commission as directed in the notice. 155
(C) All rules filed pursuant to divisions (B)(1)(a) and 157
(2) of this section shall be recorded by the secretary of state 158
and the director under the title of the agency adopting the rule 159
and shall be numbered according to the numbering system devised 160
by the director. The secretary of state and the director shall 161
preserve the rules in an accessible manner. Each such rule shall 162
be a public record open to public inspection and may be lent to 163
any law publishing company that wishes to reproduce it. 164
(D) At least sixty days before a board, commission, 166
department, division, or bureau of the government of the state 167
files a rule under division (B)(1) of this section, it shall file 168
two copies of the full text of the proposed rule with the joint 170
committee on agency rule review, and the proposed rule is subject 173
to legislative review and invalidation under division (I) of 174
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section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive 175
revision in a proposed rule after it is filed with the joint 176
committee, the state board, commission, department, division, or 178
bureau shall promptly file two copies of the full text of the 180
proposed rule in its revised form with the joint committee. The 181
latest version of a proposed rule as filed with the joint 182
committee supersedes each earlier version of the text of the same 184
proposed rule. Except as provided in division (F) of this 185
section, a state board, commission, department, division, or 186
bureau shall attach one copy of the rule summary and fiscal 187
analysis prepared under section 121.24 or 127.18 of the Revised 188
Code, or both, to each copy of a proposed rule, and to each copy 189
of a proposed rule in revised form, that is filed under this 190
division. 191
As used in this division, "commission" includes the public 193
utilities commission when adopting rules under a federal or state 194
statute.
This division does not apply to any of the following: 196
(1) A proposed rule of an emergency nature; 198
(2) A rule proposed under section 1121.05, 1121.06, 200
1155.18, 1733.412, 4123.29, 4123.34, 4123.341, 4123.342, 4123.40, 201
4123.411, 4123.44, or 4123.442 of the Revised Code; 203
(3) A rule proposed by an agency other than a board, 205
commission, department, division, or bureau of the government of 206
the state; 207
(4) A proposed internal management rule of a board, 209
commission, department, division, or bureau of the government of 210
the state; 211
(5) A rule proposed by the Ohio student aid commission 213
that complies with a federal law or rule, so long as the proposed 214
rule contains both of the following: 215
(a) A statement that it is proposed for the purpose of 217
complying with a federal law or rule; 218
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(b) A citation to the federal law or rule that requires 220
compliance. 221
(6) Any proposed rule that must be adopted verbatim by an 223
agency pursuant to federal law or rule, to become effective 224
within sixty days of adoption, in order to continue the operation 225
of a federally reimbursed program in this state, so long as the 226
proposed rule contains both of the following: 227
(a) A statement that it is proposed for the purpose of 229
complying with a federal law or rule; 230
(b) A citation to the federal law or rule that requires 232
verbatim compliance. 233
(7)(6) An initial rule proposed by the director of health 235
to impose safety standards, quality-of-care standards, and 236
quality-of-care data reporting requirements with respect to a 237
health service specified in section 3702.11 of the Revised Code, 238
or an initial rule proposed by the director to impose quality 240
standards on a facility listed in division (A)(4) of section
3702.30 of the Revised Code, if section 3702.12 of the Revised 241
Code requires that the rule be adopted under this section; 242
(8)(7) A rule of the state lottery commission pertaining 244
to instant game rules. 245
(E) Whenever a state board, commission, department, 247
division, or bureau files a proposed rule or a proposed rule in 248
revised form under division (D) of this section, it shall also 249
file one copy of the full text of the same proposed rule or 250
proposed rule in revised form with the secretary of state and two 251
copies thereof with the director of the legislative service 252
commission. Except as provided in division (F) of this section, 253
a state board, commission, department, division, or bureau shall 254
attach a copy of the rule summary and fiscal analysis prepared 255
under section 121.24 or 127.18 of the Revised Code, or both, to 256
each copy of a proposed rule or proposed rule in revised form 257
that is filed with the secretary of state or the director of the 258
legislative service commission. 259
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(F) Except as otherwise provided in this division, the 261
auditor of state or the auditor of state's designee is not 262
required to attach a rule summary and fiscal analysis to any copy 264
of a proposed rule, or proposed rule in revised form, that the 265
auditor of state proposes under section 117.12, 117.19, 117.38, 267
or 117.43 of the Revised Code and files under division (D) or (E) 268
of this section. If, however, the auditor of state or the 269
designee prepares a rule summary and fiscal analysis of the 270
original version of such a proposed rule for purposes of 271
complying with section 121.24 of the Revised Code, the auditor of 272
state or designee shall attach a copy of the rule summary and 273
fiscal analysis to each copy of the original version of the 274
proposed rule filed under division (D) or (E) of this section. 275
Sec. 131.15. (A) Any depositor enumerated in section 284
131.11 of the Revised Code shall make ample provisions for the 285
safekeeping of hypothecated securities. The interest thereon, 286
when paid, shall be turned over to the bank or trust company if 287
it is not in default. The depositor may make provisions for the 288
exchange and release of securities and the substitution of other 289
securities or of an undertaking therefor except in those cases 290
where the public depository has deposited eligible securities 291
with a trustee for safekeeping. 292
(B) When the public depository has deposited eligible 294
securities described in division (B)(1) of section 135.18 of the 295
Revised Code with a trustee for safekeeping, the public 296
depository may at any time substitute or exchange eligible 297
securities described in division (B)(1) of section 135.18 of the 298
Revised Code having a current market value equal to or greater 299
than the current market value of the securities then on deposit 300
and for which they are to be substituted or exchanged, without 301
specific authorization from the depositor of any substitution or 302
exchange. 303
(C) When the public depository has deposited eligible 305
securities described in division (B)(2) to (10)(9) of section 306
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135.18 of the Revised Code with a trustee for safekeeping, the 307
public depository may at any time substitute or exchange eligible 308
securities having a current market value equal to or greater than 309
the current market value of the securities then on deposit and 310
for which they are to be substituted or exchanged without 311
specific authorization of any depositor of any such substitution 312
or exchange only if: 313
(1) The depositor has authorized the public depository to 315
make such substitutions or exchanges on a continuing basis during 316
a specified period without prior approval of each substitution or 317
exchange. Such authorization may be effected by the depositor 318
sending to the trustee a written notice stating that substitution 319
may be effected on a continuing basis during a specified period 320
that shall not extend beyond the end of the period of designation 321
during which the notice is given. "Period of designation" as 322
used in this section means the period under section 135.12 of the 323
Revised Code for the award of inactive funds of the subdivision 324
of which the depositor is an officer or employee. The trustee 325
may rely upon such notice and upon the period of authorization 326
stated therein and upon the period of designation stated therein. 327
(2) No continuing authorization for substitution has been 329
given by the depositor, the public depository notifies the 330
depositor and the trustee of an intended substitution or 331
exchange, and the depositor fails to object to the trustee as to 332
the eligibility or market value of the securities being 333
substituted within ten calendar days after the date appearing on 334
the notice of proposed substitution. The notice to the depositor 335
and to the trustee shall be given in writing and delivered 336
personally or by certified mail with a return receipt requested. 337
The trustee may assume in any case that the notice has been 338
delivered to the depositor. In order for objections of the 339
depositor to be effective, receipt of the objections must be 340
acknowledged in writing by the trustee. 341
(3) The depositor gives written authorization for a 343
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substitution or exchange of specific securities. 344
(D) The public depository shall notify the depositor of 346
any substitution or exchange under division (C)(1) or (2) of this 347
section. If the depository designates a trustee qualified under 348
section 135.18 of the Revised Code to act as such for the 349
safekeeping of securities, the depositor shall accept the written 350
receipt of the designated trustee, describing the securities that 351
have been deposited with the trustee by the public depository, as 352
and for a hypothecation of such securities and issue to the 353
depository his THE DEPOSITOR'S written acknowledgment to that 354
effect, keeping a copy thereof in his THE DEPOSITOR'S office. 355
Thereupon, all such securities pledged and deposited with the 356
trustee are deemed hypothecated and deposited with the depositor, 357
for all the purposes of sections 131.13 to 131.16 of the Revised 358
Code. The trustee shall hold the securities for the account of 359
the depositor and the depository as their respective rights to 360
and interests in such securities under said sections appear and 361
are asserted by written notice to or demand upon the trustee. 362
Notwithstanding the fact that a public depository is 364
required to pledge eligible securities in certain amounts to 365
secure deposits of public moneys, a trustee shall have no duty or 366
obligation to determine the eligibility, market value, or face 367
value of any securities deposited with the trustee by a public 368
depository. This applies in all situations including, without 369
limitation, a substitution or exchange of securities. 370
Sec. 135.18. (A) The treasurer, before making the initial 379
deposit in a public depository pursuant to an award made under 380
sections 135.01 to 135.21 of the Revised Code, shall require the 381
institution designated as a public depository to pledge to and 382
deposit with the treasurer, as security for the repayment of all 383
public moneys to be deposited in the public depository during the 384
period of designation pursuant to the award, eligible securities 385
of aggregate market value equal to the excess of the amount of 386
public moneys to be at the time so deposited, over and above such 387
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portion or amount of such moneys as is at such time insured by 388
the federal deposit insurance corporation or by any other agency 389
or instrumentality of the federal government, or the treasurer 390
may require the institution to deposit with the treasurer surety 391
company bonds which, when executed, shall be for an amount equal 392
to such excess amount. In the case of any deposit other than the 393
initial deposit made during the period of designation, the amount 394
of the aggregate market value of securities required to be 395
pledged and deposited, or of the surety company bonds required to 396
be deposited, shall be equal to the difference between the amount 397
of public moneys on deposit in such public depository plus the 398
amount to be so deposited, minus the portion or amount of the 399
aggregate as is at the time insured as provided in this section. 400
The treasurer may require additional eligible securities to be 401
deposited to provide for any depreciation which may occur in the 402
market value of any of the securities so deposited. 403
(B) The following securities shall be eligible for the 405
purposes of this section: 406
(1) Bonds, notes, or other obligations of the United 408
States; or bonds, notes, or other obligations guaranteed as to 409
principal and interest by the United States or those for which 410
the faith of the United States is pledged for the payment of 411
principal and interest thereon, by language appearing in the 412
instrument specifically providing such guarantee or pledge and 413
not merely by interpretation or otherwise; 414
(2) Bonds, notes, debentures, letters of credit, or other 416
obligations or securities issued by any federal government agency 417
or instrumentality, or the export-import bank of Washington; 418
bonds, notes, or other obligations guaranteed as to principal and 419
interest by the United States or those for which the faith of the 420
United States is pledged for the payment of principal and 421
interest thereon, by interpretation or otherwise and not by 422
language appearing in the instrument specifically providing such 423
guarantee or pledge;
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(3) Obligations of or fully insured or fully guaranteed by 425
the United States or any federal government agency or 426
instrumentality;
(4) Obligations partially insured or partially guaranteed 428
by any federal agency or instrumentality; 429
(5) Obligations of or fully guaranteed by the federal 431
national mortgage association, federal home loan mortgage 432
corporation, federal farm credit bank, or student loan marketing 433
association;
(6) Bonds and other obligations of this state; 435
(7) Bonds and other obligations of any county, township, 437
school district, municipal corporation, or other legally 438
constituted taxing subdivision of this state, which is not at the 439
time of such deposit, in default in the payment of principal or 440
interest on any of its bonds or other obligations, for which the 441
full faith and credit of the issuing subdivision is pledged; 443
(8) Bonds of other states of the United States which have 445
not during the ten years immediately preceding the time of such 446
deposit defaulted in payments of either interest or principal on 447
any of their bonds; 448
(9) Obligations guaranteed as to principal and interest by 450
the Ohio student aid commission; 451
(10) Shares of no-load money market mutual funds 453
consisting exclusively of obligations described in division 454
(B)(1) or (2) of this section and repurchase agreements secured 455
by such obligations. 456
(C) If the public depository fails to pay over any part of 458
the public deposit made therein as provided by law, the treasurer 459
shall sell at public sale any of the bonds or other securities 460
deposited with the treasurer pursuant to this section or section 461
131.09 of the Revised Code, or shall draw on any letter of credit 462
to the extent of such failure to pay. Thirty days' notice of 463
such sale shall be given in a newspaper of general circulation at 464
Columbus, in the case of the treasurer of state, and at the 465
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county seat of the county in which the office of the treasurer is 466
located, in the case of any other treasurer. When a sale of 467
bonds or other securities has been so made and upon payment to 468
the treasurer of the purchase money, the treasurer shall transfer 469
such bonds or securities whereupon the absolute ownership of such 470
bonds or securities shall pass to the purchasers. Any surplus 471
remaining after deducting the amount due the state or subdivision 472
and expenses of sale shall be paid to the public depository. 473
(D) An institution designated as a public depository may, 475
by written notice to the treasurer, designate a qualified trustee 476
and deposit the eligible securities required by this section with 477
the trustee for safekeeping for the account of the treasurer and 478
the institution as a public depository, as their respective 479
rights to and interests in such securities under this section may 480
appear and be asserted by written notice to or demand upon the 481
trustee. In such case, the treasurer shall accept the written 482
receipt of the trustee describing the securities which have been 483
deposited with the trustee by the public depository, a copy of 484
which shall also be delivered to the public depository. 485
Thereupon all such securities so deposited with the trustee are 486
deemed to be pledged with the treasurer and to be deposited with 487
the treasurer, for all the purposes of this section. 488
(E) The governing board may make provisions for the 490
exchange and release of securities and the substitution of other 491
eligible securities therefor except where the public depository 492
has deposited eligible securities with a trustee for safekeeping 493
as provided in this section. 494
(F) When the public depository has deposited eligible 496
securities described in division (B)(1) of this section with a 497
trustee for safekeeping, the public depository may at any time 498
substitute or exchange eligible securities described in division 499
(B)(1) of this section having a current market value equal to or 500
greater than the current market value of the securities then on 501
deposit and for which they are to be substituted or exchanged, 502
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without specific authorization from any governing board, boards, 503
or treasurer of any such substitution or exchange. 504
(G) When the public depository has deposited eligible 506
securities described in divisions (B)(2) to (10)(9) of this 507
section with a trustee for safekeeping, the public depository may 508
at any time substitute or exchange eligible securities having a 509
current market value equal to or greater than the current market 510
value of the securities then on deposit and for which they are to 511
be substituted or exchanged without specific authorization of any 512
governing board, boards, or treasurer of any such substitution or 513
exchange only if: 514
(1) The treasurer has authorized the public depository to 516
make such substitution or exchange on a continuing basis during a 517
specified period without prior approval of each substitution or 518
exchange. Such authorization may be effected by the treasurer 519
sending to the trustee a written notice stating that substitution 520
may be effected on a continuing basis during a specified period 521
which shall not extend beyond the end of the period of 522
designation during which the notice is given. The trustee may 523
rely upon such notice and upon the period of authorization stated 524
therein and upon the period of designation stated therein. 525
(2) No continuing authorization for substitution has been 527
given by the treasurer, the public depository notifies the 528
treasurer and the trustee of an intended substitution or 529
exchange, and the treasurer fails to object to the trustee as to 530
the eligibility or market value of the securities being 531
substituted within ten calendar days after the date appearing on 532
the notice of proposed substitution. The notice to the treasurer 533
and to the trustee shall be given in writing and delivered 534
personally or by certified or registered mail with a return 535
receipt requested. The trustee may assume in any case that the 536
notice has been delivered to the treasurer. In order for 537
objections of the treasurer to be effective, receipt of the 538
objections must be acknowledged in writing by the trustee. 539
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(3) The treasurer gives written authorization for a 541
substitution or exchange of specific securities. 542
(H) The public depository shall notify any governing 544
board, boards, or treasurer of any such substitution or exchange 545
under division (G)(1) or (2) of this section. Upon request from 546
the treasurer, the trustee shall furnish a statement of the 547
securities pledged against such public deposits. 548
(I) Any federal reserve bank or branch thereof located in 550
this state, without compliance with Chapter 1111. of the Revised 551
Code and without becoming subject to any other law of this state 554
relative to the exercise by corporations of trust powers 555
generally, is qualified to act as trustee for the safekeeping of 556
securities, under this section. Any institution mentioned in 557
section 135.03 of the Revised Code that holds a certificate of 558
qualification issued by the superintendent of financial 559
institutions or any institution complying with sections 1111.04,
1115.05 1111.05, and 1111.06 of the Revised Code, is qualified to 561
act as trustee for the safekeeping of securities, other than
those belonging to itself, under this section. Upon application 562
to the superintendent in writing by any such institution, the 563
superintendent shall investigate the applicant and ascertain 565
whether or not it has been authorized to execute and accept 566
trusts in this state and has safe and adequate vaults and 567
efficient supervision thereof for the storage and safekeeping 568
within this state of such securities. If the superintendent 569
finds that the applicant has been so authorized and does have 570
such vaults and supervision thereof, the superintendent shall 571
approve the application and issue a certificate to that effect, 572
the original or any certified copy of which shall be conclusive 573
evidence that the institution therein named is qualified to act 574
as trustee for the purposes of this section with respect to 575
securities other than those belonging to itself.
Notwithstanding the fact that a public depository is 577
required to pledge eligible securities in certain amounts to 578
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secure deposits of public moneys, a trustee shall have no duty or 579
obligation to determine the eligibility, market value, or face 580
value of any securities deposited with the trustee by a public 581
depository. This applies in all situations including, without 582
limitation, a substitution or exchange of securities. 583
Any charges or compensation of a designated trustee for 585
acting as such under this section shall be paid by the public 586
depository and in no event shall be chargeable to the state or 587
the subdivision or to the treasurer or to any officer of the 588
state or subdivision. Such charges or compensation shall not be 589
a lien or charge upon the securities deposited for safekeeping 590
prior or superior to the rights to and interests in such 591
securities of the state or the subdivision or of the treasurer. 592
The treasurer and the treasurer's bondsmen BONDERS or surety 593
shall be relieved from any liability to the state or the 594
subdivision or to the public depository for the loss or 595
destruction of any securities deposited with a qualified trustee 596
pursuant to this section.
Sec. 135.181. (A) As used in this section: 608
(1) "Public depository" means that term as defined in 610
section 135.01 of the Revised Code, but also means an institution 611
which receives or holds any public deposits as defined in section 612
135.31 of the Revised Code. 613
(2) "Public deposits," "public moneys," and "treasurer" 615
mean those terms as defined in section 135.01 of the Revised 616
Code, but also have the same meanings as are set forth in section 617
135.31 of the Revised Code. 618
(3) "Subdivision" means that term as defined in section 620
135.01 of the Revised Code, but also includes a county. 621
(B) In lieu of the pledging requirements prescribed in 623
sections 135.18 and 135.37 of the Revised Code, an institution 624
designated as a public depository at its option may pledge a 625
single pool of eligible securities to secure the repayment of all 626
public moneys deposited in the institution and not otherwise 627
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secured pursuant to law, provided that at all times the total 628
value of the securities so pledged, based on the valuations 629
prescribed in division (C) of this section, is at least equal to 630
one hundred ten per cent of the total amount of all public 631
deposits to be secured by the pooled securities, including the 632
portion of such deposits covered by any federal deposit 633
insurance. Each such institution shall carry in its accounting 634
records at all times a general ledger or other appropriate 635
account of the total amount of all public deposits to be secured 636
by the pool, as determined at the opening of business each day, 637
and the total value of securities pledged to secure such 638
deposits. 639
(C) The following securities, at the specified valuations, 641
shall be eligible as collateral for the purposes of division (B) 642
of this section, provided no such securities pledged as 643
collateral are at any time in default as to either principal or 644
interest: 645
(1) Obligations of or fully insured or fully guaranteed by 647
the United States or any federal government agency or 648
instrumentality: at face value; 649
(2) Obligations partially insured or partially guaranteed 651
by any federal government agency or instrumentality: at face 652
value;
(3) Obligations of or fully guaranteed by the federal 654
national mortgage association, federal home loan mortgage 655
corporation, federal farm, credit bank, or student loan marketing 656
association: at face value; 657
(4) Obligations of any state, county, municipal 659
corporation, or other legally constituted authority of any state, 660
or any instrumentality of any state, county, municipal 661
corporation, or other authority, which are secured as to the 662
payment of principal and interest by the holding in escrow of 663
obligations of the United States for which the full faith and 664
credit of the United States is pledged: at face value; 665
17
(5) Obligations of this state, or any county or other 667
legally constituted authority of this state, or any 668
instrumentality of this state, or such county or other authority: 669
at face value; 670
(6) Obligations of any other state: at ninety per cent of 672
face value; 673
(7) Obligations of any county, municipal corporation, or 675
other legally constituted authority of any other state, or any 676
instrumentality of such county, municipal corporation, or other 677
authority: at eighty per cent of face value; 678
(8) Notes representing loans made to persons attending or 680
planning to attend eligible institutions of education and to 681
their parents, and insured or guaranteed by the United States or 682
any agency, department, or other instrumentality thereof, or 683
guaranteed by the Ohio student aid commission pursuant to 684
sections 3351.05 to 3351.14 of the Revised Code: at face value; 685
(9) Any other obligations the treasurer of state approves: 687
at the percentage of face value the treasurer of state 688
prescribes;
(10) Shares of no-load money market mutual funds 690
consisting exclusively of obligations described in division 691
(C)(1), (2), or (3) of this section and repurchase agreements 692
secured by such obligations: at face value. 693
(D) The state and each subdivision shall have an undivided 695
security interest in the pool of securities pledged by a public 696
depository pursuant to division (B) of this section in the 697
proportion that the total amount of the state's or subdivision's 698
public moneys secured by the pool bears to the total amount of 699
public deposits so secured. 700
(E) An institution designated as a public depository shall 702
designate a qualified trustee and deposit with the trustee for 703
safekeeping the eligible securities pledged pursuant to division 704
(B) of this section. The institution shall give written notice 705
of the qualified trustee to any treasurer or treasurers 706
18
depositing public moneys for which such securities are pledged. 707
The treasurer shall accept the written receipt of the trustee 708
describing the pool of securities so deposited by the depository, 709
a copy of which also shall be delivered to the depository. 710
(F) Any federal reserve bank or branch thereof located in 712
this state, without compliance with Chapter 1111. of the Revised 713
Code and without becoming subject to any other law of this state 716
relative to the exercise by corporations of trust powers 717
generally, is qualified to act as trustee for the safekeeping of 718
securities, under this section. Any institution mentioned in 719
section 135.03 or 135.32 of the Revised Code which holds a
certificate of qualification issued by the superintendent of 720
financial institutions or any institution complying with sections 722
1111.04, 1111.05, and 1111.06 of the Revised Code is qualified to 723
act as trustee for the safekeeping of securities under this 724
section, other than those belonging to itself or to an affiliate 725
as defined in division (A) of section 1101.01 of the Revised 726
Code. Upon application to the superintendent in writing by any 727
such institution, the superintendent shall investigate the 729
applicant and ascertain whether or not it has been authorized to 730
execute and accept trusts in this state and has safe and adequate 731
vaults and efficient supervision thereof for the storage and 732
safekeeping of such securities. If the superintendent finds that 733
the applicant has been so authorized and does have such vaults 734
and supervision thereof, the superintendent shall approve the 735
application and issue a certificate to that effect, the original 737
or any certified copy of which shall be conclusive evidence that 738
the institution named therein is qualified to act as trustee for 739
the purposes of this section with respect to securities other 740
than those belonging to itself or to an affiliate. 741
(G) The public depository at any time may substitute, 743
exchange, or release eligible securities deposited with a 744
qualified trustee pursuant to this section, provided that such 745
substitution, exchange, or release does not reduce the total 746
19
value of the securities, based on the valuations prescribed in 747
division (C) of this section, to an amount that is less than one 748
hundred ten per cent of the total amount of public deposits as 749
determined pursuant to division (B) of this section. 750
(H) Notwithstanding the fact that a public depository is 752
required to pledge eligible securities in certain amounts to 753
secure deposits of public moneys, a trustee shall have no duty or 754
obligation to determine the eligibility, market value, or face 755
value of any securities deposited with the trustee by a public 756
depository. This applies in all situations including, but not 757
limited to, a substitution or exchange of securities, but 758
excluding those situations effectuated by division (I) of this 759
section in which the trustee is required to determine face and 760
market value. 761
(I) If the public depository fails to pay over any part of 763
the public deposits made therein as provided by law and secured 764
pursuant to division (B) of this section, the treasurer shall 765
give written notice of this failure to the qualified trustee 766
holding the pool of securities pledged against public moneys 767
deposited in the depository, and at the same time shall send a 768
copy of this notice to the depository. Upon receipt of such 769
notice, the trustee shall transfer to the treasurer for public 770
sale such of the pooled securities as may be necessary to produce 771
an amount equal to the deposits made by the treasurer and not 772
paid over, less the portion of such deposits covered by any 773
federal deposit insurance, plus any accrued interest due on such 774
deposits; however, such amount shall not exceed the state's or 775
subdivision's proportional security interest in the market value 776
of the pool as of the date of the depository's failure to pay 777
over the deposits, as such interest and value are determined by 778
the trustee. The treasurer shall sell at public sale any of the 779
bonds or other securities so transferred. Thirty days' notice of 780
such sale shall be given in a newspaper of general circulation at 781
Columbus, in the case of the treasurer of state, and at the 782
20
county seat of the county in which the office of the treasurer is 783
located, in the case of any other treasurer. When a sale of 784
bonds or other securities has been so made and upon payment to 785
the treasurer of the purchase money, the treasurer shall transfer 786
such bonds or securities whereupon the absolute ownership of such 787
bonds or securities shall pass to the purchasers. Any surplus 788
after deducting the amount due the state or subdivision and 789
expenses of sale shall be paid to the public depository. 790
(J) Any charges or compensation of a designated trustee 792
for acting as such under this section shall be paid by the public 793
depository and in no event shall be chargeable to the state or 794
subdivision or to the treasurer or to any officer of the state or 795
subdivision. Such charges or compensation shall not be a lien or 796
charge upon the securities deposited for safekeeping prior or 797
superior to the rights to and interests in such securities of the 798
state or subdivision or of the treasurer. The treasurer and the 799
treasurer's bondspersons bonders or surety shall be relieved from 800
any liability to the state or subdivision or to the public 801
depository for the loss or destruction of any securities 802
deposited with a qualified trustee pursuant to this section. 803
(K) In lieu of placing its unqualified endorsement on each 805
security, a public depository pledging securities pursuant to 806
division (B) of this section that are not negotiable without its 807
endorsement or assignment may furnish to the qualified trustee 808
holding the securities an appropriate resolution and irrevocable 809
power of attorney authorizing the trustee to assign the 810
securities. The resolution and power of attorney shall conform 811
to such terms and conditions as the trustee prescribes. 812
(L) Upon request of a treasurer no more often than four 814
times per year, a public depository shall report the amount of 815
public moneys deposited by the treasurer and secured pursuant to 816
division (B) of this section, and the total value, based on the 817
valuations prescribed in division (C) of this section, of the 818
pool of securities pledged to secure public moneys held by the 819
21
depository, including those deposited by the treasurer. Upon 820
request of a treasurer no more often than four times per year, a 821
qualified trustee shall report such total value of the pool of 822
securities deposited with it by the depository and shall provide 823
an itemized list of the securities in the pool. These reports 824
shall be made as of the date the treasurer specifies. 825
Sec. 3333.25. There is hereby created the Ohio academic 834
scholarship payment fund, which shall be in the custody of the 835
treasurer of state but shall not be a part of the state treasury. 836
The fund shall consist of all moneys appropriated for the fund by 837
the general assembly and other moneys otherwise made available to 838
the fund. The payment fund shall be used for the payment of Ohio 839
academic scholarships or for additional scholarships to recognize 840
outstanding academic achievement and ability. The Ohio board of 841
regents shall administer this section and establish rules for the 842
distribution and awarding of any additional scholarships. 843
The board may direct the treasurer of state to invest any 846
moneys in the payment fund not currently needed for scholarship 847
payments, in any kinds of investments in which moneys of the Ohio 848
student aid commission PUBLIC EMPLOYEES RETIREMENT SYSTEM may be 849
invested.
The instruments of title of all investments shall be 851
delivered to the treasurer of state or to a qualified trustee 852
designated by the treasurer of state as provided in section 853
135.18 of the Revised Code. The treasurer of state shall collect 854
both principal and investment earnings on all investments as they 855
become due and pay them into the fund. 856
All deposits to the fund shall be made in financial 858
institutions of this state secured as provided in section 135.18 859
of the Revised Code. 860
Sec. 3345.32. (A) As used in this section: 869
(1) "State university or college" means the institutions 871
described in section 3345.27 of the Revised Code, the 872
northeastern Ohio universities college of medicine, and the 873
22
medical college of Ohio at Toledo. 874
(2) "Resident" has the meaning specified by rule of the 876
Ohio board of regents. 877
(3) "Statement of selective service status" means a 879
statement certifying one of the following: 880
(a) That the individual filing the statement has 882
registered with the selective service system in accordance with 883
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 884
App. 453, as amended; 885
(b) That the individual filing the statement is not 887
required to register with the selective service for one of the 888
following reasons: 889
(i) The individual is under eighteen or over twenty-six 891
years of age; 892
(ii) The individual is on active duty with the armed 894
forces of the United States other than for training in a reserve 895
or national guard unit; 896
(iii) The individual is a nonimmigrant alien lawfully in 898
the United States in accordance with section 101 (a)(15) of the 899
"Immigration and Nationality Act," 8 U.S.C. 1101, as amended; 900
(iv) The individual is not a citizen of the United States 902
and is a permanent resident of the Trust Territory of the Pacific 904
Islands or the Northern Mariana Islands. 905
(4) "Institution of higher education" means any eligible 907
institution approved by the student aid commission UNITED STATES 909
DEPARTMENT OF EDUCATION pursuant to Chapter 3351. of the Revised 910
Code THE "HIGHER EDUCATION ACT OF 1965," 79 STAT. 1219, AS 911
AMENDED, or any institution whose students are eligible for 913
financial assistance under any of the programs described by 914
division (E) of this section.
(B) The Ohio board of regents shall, by rule, specify the 916
form of statements of selective service status to be filed in 917
compliance with divisions (C) to (F) of this section. Each 918
statement of selective service status shall contain a section 919
23
wherein a male student born after December 31, 1959, certifies 920
that the student has registered with the selective service system 922
in accordance with the "Military Selective Service Act," 62 Stat. 923
604, 50 U.S.C. App. 453, as amended. For those students not 925
required to register with the selective service, as specified in 926
divisions (A)(2)(b)(i) to (iv) of this section, a section shall 927
be provided on the statement of selective service status for the 928
certification of nonregistration and for an explanation of the 929
reason for the exemption. The board of regents may require that 930
such statements be accompanied by documentation specified by rule 931
of the board.
(C) A state university or college that enrolls in any 933
course, class, or program a male student born after December 31, 934
1959, who has not filed a statement of selective service status 935
with the university or college shall, regardless of the student's 936
residency, charge the student any tuition surcharge charged 937
students who are not residents of this state. 938
(D) No male born after December 31, 1959, shall be 940
eligible to receive any loan, grant, scholarship, or other 941
financial assistance for educational expenses under section 942
3315.33, 3333.12, 3333.21, 3333.22, 3333.26, 3333.27, 5910.03, 943
5910.032, or 5919.34 of the Revised Code unless that person has 945
filed a statement of selective service status with that person's 946
institution of higher education.
(E) If an institution of higher education receives a 948
statement from an individual certifying that the individual has 950
registered with the selective service system in accordance with
the "Military Selective Service Act," 62 Stat. 604, 50 U.S.C. 951
App. 453, as amended or that the individual is exempt from 952
registration for a reason other than that the individual is under 954
eighteen years of age, the institution shall not require the 955
individual to file any further statements. If it receives a 956
statement certifying that the individual is not required to 957
register because the individual is under eighteen years of age, 958
24
the institution shall require the individual to file a new 959
statement of selective service status each time the individual 960
seeks to enroll for a new academic term or makes application for 962
a new loan or loan guarantee or for any form of financial 963
assistance for educational expenses, until it receives a 964
statement certifying that the individual has registered with the 965
selective service system or is exempt from registration for a
reason other than that the individual is under eighteen years of 967
age.
Sec. 3351.07. (A) The Ohio student aid commission may: 976
(1) Guarantee the loan of money, subject to section 978
3351.08 of the Revised Code and upon any other terms and 979
conditions as the commission may prescribe, to persons and 980
parents of persons attending or planning to attend eligible 981
institutions to assist them in meeting educational expenses; 982
(2) Reject or take, hold, and administer, on behalf of the 984
commission and for any of its purposes, real property, personal 985
property, and moneys, or any interest therein, and the income 986
therefrom, either absolutely or in trust, for any purpose of the 987
commission. The commission may invest its funds in any 988
investments listed in division (K) of this section. The 989
commission may acquire property or moneys for its purposes by the 991
acceptance of gifts, grants, bequests, devises, or loans; 992
provided, that no obligation of the commission shall be a debt of 993
the state, and the commission shall have no power to make its 994
debts payable out of moneys except those of the commission. 995
(3) Enter into such contracts as may be desirable with 997
eligible educational institutions, upon terms as may be agreed 999
upon between the commission and the institution, to provide for 1,000
the administration by the institution of any loan or loan plan 1,002
guaranteed by the commission, including applications therefor and 1,003
repayment thereof;
(4) Enter into contracts with any approved lender, upon 1,005
terms as may be agreed upon between the commission and the 1,006
25
approved lender, to provide for the administration by the 1,007
approved lender of any loan or loan plan guaranteed by the 1,008
commission, including applications therefor and terms and 1,009
repayment thereof, and to establish the conditions for payment by 1,010
the commission to the approved lender of the guarantee on any 1,011
loan. The commission may also enter into contracts with any 1,012
approved lender to provide assistance to lenders in the 1,013
administration of loans. No moneys of approved lenders or 1,014
borrowers that are temporarily administered by the commission 1,015
pursuant to the contracts shall be considered public moneys. A
loan shall be defaulted when, after the expiration of a 1,016
prescribed period of nonpayment and reasonable collection 1,017
efforts, the approved lender makes application to the commission 1,018
for payment on the loan stating that the loan is in default in 1,019
accordance with the terms of the federal law, contract, or 1,020
regulations of the commission, executed under this division. In
accordance with the "Higher Education Amendments of 1968," 82 1,021
Stat. 1020, 20 U.S.C.A. 1087, as amended, if a borrower dies, 1,022
becomes permanently and totally disabled, or is adjudged 1,023
bankrupt, the commission shall discharge the borrower's liability 1,024
on the borrower's debt by repaying the unpaid principal and 1,025
interest due thereon.
(5) Sue and be sued in the name of the commission; 1,027
(6) Collect loans guaranteed by the commission on which 1,029
the commission has met its guarantee obligations. The commission 1,030
may, if it prefers, employ a private collection agency or 1,031
agencies for the purpose of collecting loans on which it has met 1,032
its guarantee obligations. 1,033
(7) Adopt rules, not inconsistent with sections 3351.05 to 1,036
3351.14 of the Revised Code, governing the guarantee of loans
made by the commission, and governing any other matters relating 1,037
to the activities of the commission; 1,038
(8) Participate in or administer education-related state 1,040
or federal financial aid programs on behalf of the state in 1,041
26
accordance with state and federal law. 1,042
(9) Perform any other acts necessary or appropriate to 1,045
carry out effectively the objects and purposes of the commission. 1,046
(B) The Ohio student aid commission, for the purposes of 1,048
sections 3351.05 to 3351.14 of the Revised Code, shall: 1,049
(1) Prescribe the academic status required for a resident, 1,051
qualified nonresident, or the parent of a resident or qualified 1,052
nonresident to obtain guarantee of a loan; 1,053
(2) Approve eligible institutions in which a student must 1,055
be enrolled or accepted for enrollment in order for the student 1,056
or the student's parent to be eligible for guaranteed loans. 1,057
(C) For the purposes of this chapter, "approved lender" 1,059
means any bank as defined in section 1101.01 of the Revised Code, 1,060
any domestic savings and loan association as defined in section 1,061
1151.01 of the Revised Code, any credit union as defined in 1,062
section 1733.01 of the Revised Code, any federal credit union 1,063
established pursuant to federal law, any insurance company 1,064
organized or authorized to do business in this state, any 1,065
eligible educational institution approved pursuant to division 1,066
(B)(2) of this section that applies for and receives formal 1,067
approval as an eligible lender by the commission pursuant to the 1,068
rules of the commission as they pertain to that institution, any 1,069
pension fund eligible under the "Higher Education Amendments of 1,070
1968," 82 Stat. 1026, 20 U.S.C.A. 1085, as amended, the secondary 1,071
market operation designated under division (D)(B) of this 1,072
section, or any secondary market operation established pursuant 1,073
to the "Education Amendments of 1972," 86 Stat. 261, 20 U.S.C.A. 1,074
1071, as amended, or under the laws of any state. 1,075
(D)(B) The governor may designate one nonprofit 1,077
corporation secondary market operation to be the single nonprofit 1,078
private agency designated by the state under the "Higher 1,079
Education Act of 1965," 101 Stat. 347, 20 U.S.C.A. 1085(d)(1)(D), 1,080
as amended. The commission shall enter into appropriate 1,081
contracts with the designated secondary market operation that 1,082
27
shall be on not less favorable terms than those contracts entered 1,083
into by the commission with any other approved lender. No 1,084
approval by the commission shall be necessary for the transfer of 1,085
loans by any approved lender to the designated secondary market 1,086
operation.
(E)(C) The nonprofit corporation designated by the 1,088
governor under division (D)(B) of this section as the private 1,089
agency secondary market operation shall be considered to be an 1,090
agency of the state, in accordance with section 435(d)(1)(F) of 1,091
the "Higher Education Act of 1965," as amended, 101 Stat. 347, 20 1,092
U.S.C.A. 1085(d)(1)(F), AS AMENDED, exclusively for the purpose 1,093
of functioning as a secondary student loan market. The 1,095
corporation shall be considered a state agency only for the 1,096
purposes of this division and no other division or section of the 1,097
Revised Code regarding state agencies shall apply to the 1,098
corporation. No liability or obligation incurred by the 1,099
corporation shall be considered to be a liability or debt of the 1,100
state, nor shall the state be construed to act as guarantor of 1,101
any debt of the corporation.
(F)(D) The nonprofit corporation designated under division 1,103
(D)(B) of this section shall designate a separate nonprofit 1,104
corporation to operate exclusively for charitable and educational 1,105
purposes, complementing and supplementing the designating 1,106
corporation's secondary market operation for student loans 1,107
authorized under the "Higher Education Act of 1965," as amended, 1,108
101 Stat. 347, 20 U.S.C.A. 1085, AS AMENDED, and promoting the 1,109
general health and welfare of the state, the public interest, and 1,110
a public purpose through improving student assistance programs by 1,111
expanding access to higher education financing programs for 1,112
students and families in need of student financial aid. In 1,113
furtherance of such purposes, the separate nonprofit corporation 1,114
may do all of the following: 1,115
(1) Assist educational institutions in establishing 1,117
financial aid programs to help students obtain an economical 1,118
28
education; 1,119
(2) Encourage financial institutions to increase 1,121
educational opportunities by making funds available to both 1,122
students and educational institutions; 1,123
(3) Make available financial aid that supplements the 1,125
financial assistance provided by eligible and approved lenders 1,126
under state and federal programs; 1,127
(4) Develop and administer programs that do all of the 1,129
following: 1,130
(a) Provide financial aid and incidental student financial 1,132
aid information to students and their parents or other persons 1,133
responsible for paying educational costs of those students at 1,134
educational institutions; 1,135
(b) Provide financial aid and information relating to it 1,137
to and through educational institutions, enabling those 1,138
institutions to assist students financially in obtaining an 1,139
education and fully expanding their intellectual capacity and 1,140
skills; 1,141
(c) Better enable financial institutions to participate in 1,143
student loan programs and other forms of financial aid, assisting 1,144
students and educational institutions to increase education 1,145
excellence and accessibility. 1,146
(G)(E) The nonprofit corporation designated under 1,148
authority of division (F)(D) of this section shall do both of the 1,149
following: 1,150
(1) Establish the criteria, standards, terms, and 1,152
conditions for participation by students, parents, educational 1,153
institutions, and financial institutions in that corporation's 1,154
programs; 1,155
(2) Provide the governor a report of its programs and a 1,157
copy of its audited financial statements not later than one 1,158
hundred eighty days after the end of each fiscal year of the 1,159
corporation. 1,160
No liability, obligation, or debt incurred by the 1,162
29
corporation designated under authority of division (F)(D) of this 1,164
section or by any person under that corporation's programs shall
be, or be considered to be, a liability, obligation, or debt of, 1,165
or a pledge of the faith and credit of, the state, any political 1,166
subdivision of the state, or any state-supported or 1,167
state-assisted institution of higher education, nor shall the 1,168
state or any political subdivision of the state or any 1,169
state-supported or state-assisted institution of higher education 1,170
be or be construed to act as an obligor under or guarantor of any 1,171
liability, obligation, or debt of that corporation or of any 1,172
person under that corporation's programs or incur or be construed 1,173
to have incurred any other liability, obligation, or debt as a 1,174
result of any acts of the corporation. 1,175
(H)(F) The nonprofit corporation designated under 1,177
authority of division (F)(D) of this section shall not be deemed 1,178
to qualify by reason of the designation as a guarantor or an 1,180
eligible lender under sections 435(d) and (j) of the "Higher 1,182
Education Act of 1965," as amended, 101 Stat. 347, 20 U.S.C.A. 1,183
1085(d) and (j), AS AMENDED. 1,184
(J) As used in division (K) of this section: 1,186
(1) "American depositary receipt" means a receipt for the 1,188
shares of a foreign corporation held by an American bank or trust 1,189
company, representing the deposit of an equivalent amount of 1,190
underlying foreign shares. 1,191
(2) "Commingled stock investment fund" means a pooling of 1,193
securities to create a fund of a certain type or classification 1,194
of stock wherein participants share in the total return of the 1,195
fund represented by dividends, interest, and appreciation. 1,196
(3) "Derivative instrument" means a financial obligation 1,198
that derives its precise value from the value of one or more 1,199
other instruments or assets at the same point in time. 1,200
(4) "Pass-through security" means a security, representing 1,202
pooled debt obligations repackaged as shares, that passes income 1,203
and principal from debtors through an intermediary to investors. 1,204
30
(K) The commission shall have full power to invest the 1,206
funds: 1,207
(1)(a) In bonds of the United States or this state, or in 1,209
bonds, notes, debentures, or other obligations the principal and 1,210
interest of which are guaranteed in full by the United States 1,211
government or this state, or those for which the credit of the 1,212
United States is pledged for the payment of the principal and 1,213
interest thereof; 1,214
(b) In derivative instruments based on the bonds, notes, 1,216
debentures, or obligations described in division (K)(1)(a) of 1,218
this section.
(2)(a) In bonds, notes, debentures, or any other 1,220
obligations or securities issued by any federal government agency 1,221
presently or in the future established by act of congress; 1,222
(b) In derivative instruments based on the bonds, notes, 1,224
debentures, obligations, or securities described in division 1,226
(K)(2)(a) of this section.
(3)(a) In bonds, notes, certificates of indebtedness, or 1,228
other obligations of the state; any county, township, municipal 1,229
corporation, school district, conservancy district, or sanitary 1,230
district of the state; or any other legally constituted taxing or 1,231
bond issuing authority, subdivision, or municipal corporation 1,232
within the state; 1,233
(b) In derivative instruments based on the bonds, notes, 1,235
certificates of indebtedness, or obligations described in 1,236
division (K)(3)(a) of this section. 1,237
(4) In revenue bonds issued by a taxing subdivision of the 1,239
state; 1,240
(5) In farm loan bonds issued under the "Federal Farm Loan 1,243
Act of 1916," 39 Stat. 360, 12 U.S.C.A. 641, as amended;
(6) In notes secured by mortgages and insured by the 1,245
federal housing commissioner, or the commissioner's successor or 1,246
assigns, or in debentures issued by the commissioner, which are 1,247
guaranteed as to principal and interest by the federal housing 1,248
31
administration, an agency of the United States government; 1,249
(7)(a) In bonds or other interest-bearing obligations of 1,251
any other state of the United States that, within ten years prior 1,253
to the making of the investment, has not defaulted for more than 1,254
ninety days in the payment of principal or interest on any of its 1,255
bonds or other interest-bearing obligations;
(b) In derivative instruments based on the bonds or 1,257
obligations described in division (K)(7)(a) of this section. 1,259
(8) In obligations issued by a federal home loan bank 1,261
created under the "Federal Home Loan Bank Act of 1932," 47 Stat. 1,262
725, 12 U.S.C.A. 1421, as amended; 1,263
(9) In shares, certificates, or other evidences of 1,265
deposits issued by a federal savings and loan association 1,266
organized and incorporated under the "Home Owners' Loan Act of 1,267
1933," 48 Stat. 128, 12 U.S.C.A. 1461, as amended, but only to 1,268
the extent that the shares or certificates or other evidences of 1,269
deposits are insured under subchapter IV of the "National Housing 1,271
Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1701, as amended;
(10) In bonds issued by the home owners' loan corporation 1,273
created under the "Home Owners' Loan Act of 1933," 48 Stat. 128, 1,275
12 U.S.C.A. 1461, as amended;
(11) In obligations issued by national mortgage 1,277
associations created under the "National Housing Act," 48 Stat. 1,279
1246 (1934), 12 U.S.C.A. 1701, as amended;
(12) In shares, certificates, or other evidences of 1,281
deposits issued by a state-chartered savings and loan association 1,282
organized under the laws of the state, which association has 1,283
obtained insurance of accounts as provided in subchapter IV of 1,284
the "National Housing Act," 48 Stat. 1246 (1934), 12 U.S.C.A. 1,286
1701, as amended, but only to the extent that the evidences of 1,288
deposits are insured under the act, as amended;
(13) In savings accounts in a national bank located in the 1,290
state or a state bank located in and organized under the laws of 1,291
the state by depositing the funds therein, provided that no 1,292
32
deposit shall be made unless the deposits of the depository bank 1,293
are insured by the federal deposit insurance corporation, created 1,294
under the "Federal Deposit Insurance Corporation Act of 1933," 48 1,296
Stat. 162, 12 U.S.C.A. 264, as amended; and provided further, 1,297
that the deposit of the funds in any such savings accounts in any 1,298
one bank shall not exceed the sum insured under the act, as 1,299
amended; 1,300
(14) In bonds and notes backed by pools of first liens on 1,302
fee simple estates in land in this state that are improved by 1,303
one- to four-family residential structures; 1,304
(15) In bonds, notes, or other evidences of indebtedness 1,306
that are secured by first liens upon improved commercial real 1,307
property, upon condition that: 1,308
(a) No mortgage loan on any one property, at the time of 1,310
investment by the commission, exceeds ninety per cent of the 1,311
value of the real property securing the loan unless that portion 1,312
of the loan exceeding ninety per cent is insured or the mortgage 1,313
is a participating or convertible mortgage; 1,314
(b) The aggregate investment in mortgage loans on 1,316
commercial property that are not insured by the federal housing 1,317
commissioner shall not exceed ten per cent of the total value of 1,318
all funds invested by the commission. 1,319
(16) In pass-through securities backed by pools of first 1,321
liens on fee simple estates in land in this state that are 1,322
improved by one- to four-family residential structures; 1,323
(17) In pass-through securities backed by pools of first 1,325
liens upon improved commercial real property, provided that no 1,326
mortgage loan on any one property, at the time of investment by 1,327
the commission, exceeds ninety per cent of the value of the real 1,328
property securing the loan unless that portion of the loan 1,329
exceeding ninety per cent is insured; 1,330
(18) In the following corporate, trust, or partnership 1,332
obligations: 1,333
(a) Notes, bonds, debentures, conditional sales contracts, 1,335
33
equipment trust certificates, pass-through securities, other 1,336
fixed obligations, or evidences of indebtedness or interests that 1,337
are the obligations of a corporation, trust, or partnership; 1,338
provided that the obligor is incorporated or created under the 1,339
laws of the United States or any state thereof, or of the 1,340
District of Columbia; and that the obligations are rated at the 1,342
time of purchase the equivalent of an "A-" or higher quality
rating according to the Standard and Poor's rating service by at 1,344
least two standard rating services; or that for a period of five
fiscal years for which the necessary statistical data are 1,345
available next preceding the date of investment, the corporation, 1,346
trust, or partnership, as disclosed by its annual fiscal 1,347
statements, had an average annual pre-tax income plus its average 1,348
annual fixed charges at least equal to two times its average 1,349
annual fixed charges for the same period; provided, that in 1,350
neither of the last two years of that period shall the sum of its 1,351
annual net income and its annual fixed charges have been less 1,352
than two times its fixed charges for the same period. As used in 1,353
this division, "fixed charges" means interest on funded or 1,354
unfunded debt, contingent interest charges, amortization of debt 1,355
discount, and expense and one-third of rentals for leased 1,356
property, and includes, in the case of consolidated earnings 1,357
statements of parent and subsidiary entities, which shall be used 1,358
if available, all fixed charges of the subsidiaries. 1,359
(b) Derivative instruments based on the corporate, trust, 1,361
or partnership obligations described in division (K)(18)(a) of 1,363
this section;
(c) Various forms of commercial paper issued by any 1,365
corporation that is incorporated under the laws of the United 1,366
States or any state thereof; banker's acceptances that are 1,367
eligible for discount at any federal reserve bank; negotiable 1,368
time certificates of deposit issued by commercial banks and 1,369
domestic savings and loan associations as defined in section 1,370
1151.01 of the Revised Code, if the obligations mature within 1,371
34
nine months from the date of purchase; and repurchase agreements 1,372
secured by obligations of the United States treasury or federal 1,373
agencies or by any other money market instruments specified in 1,374
this section; 1,375
(d) Corporate debentures convertible or exchangeable into 1,377
common stock, provided that at the time of acquisition the 1,378
requirements of division (K)(20) of this section are met. 1,379
(19) In real estate located within the United States; 1,381
provided, that the aggregate of all investments made under this 1,382
division shall not exceed twenty-five per cent of the total value 1,383
of all funds invested by the commission, except that no 1,385
investment in real estate made under authority granted elsewhere 1,386
in this section shall be counted toward this limitation. 1,387
The commission may invest under this division in any 1,389
direct, indirect, or beneficial interest in real property, 1,390
including, but not limited to, improved or unimproved real 1,391
property, suitable or adaptable without excessive cost for more 1,392
than one use, and whether or not income-producing; mortgages; 1,393
deeds of trust; notes secured by real property; leaseholds; 1,394
leases; ground leases; air rights; limited partnerships; real 1,395
property interests owned, developed, or managed by joint ventures 1,396
or limited partnerships; variable notes secured by real property; 1,397
participations, created by any person regularly engaged in the 1,398
business of making, or acting as a broker of, mortgage loans, in 1,399
notes secured by real property; interests in collective 1,400
investment funds; corporations, trusts, or associations that 1,401
qualify as real estate investment trusts under section 856 of the 1,402
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 856, 1,404
as amended; interests in or real property for the development of 1,405
natural resources, excluding oil or gas; and condominium 1,406
interests, provided that liability is limited to the amount of 1,407
the investment. Unimproved real property or interests in the 1,408
property acquired shall be subject to a commercial development 1,409
plan or a natural resources development plan. 1,410
35
Real property purchased under this division may be improved 1,412
by the commission. Expenditures for improvements may include, 1,413
but are not limited to, expenditures for demolition of existing 1,414
structures, grading and landscaping, construction of new 1,415
structures, modification of existing structures, fixtures, 1,416
equipment, and related personal property. The commission may 1,417
manage the real property or may contract for management 1,418
responsibilities with firms having expertise in the management of 1,419
similar real property. 1,420
Real property purchased or improved under this division: 1,422
(a) Shall be geographically dispersed; 1,424
(b) May be leased to corporations, partnerships, or sole 1,426
proprietorships with or without purchase option provisions, and 1,427
lease payments may, but need not, include all or part of the 1,428
purchase and improvement costs; 1,429
(c) May be mortgaged to facilitate activities authorized 1,431
in this division. 1,432
(20)(a) In common and preferred stocks and American 1,434
depositary receipts, provided the stocks are issued or guaranteed 1,435
by a corporation created or existing under the laws of the United 1,436
States or any state thereof and the following criteria are met; 1,437
or the stocks or American depositary receipts are, at the time of 1,438
the commission's acquisition, included in the Standard and Poor's 1,440
Composite 500-Stock Index or 400 Mid-Cap Index, or listed on the 1,442
New York or American stock exchange; or the American depositary 1,444
receipts meet the following criteria: 1,445
(i) For a period of five fiscal years for which the 1,447
necessary statistical data are available next preceding the date 1,448
of investment, the corporation, as disclosed by its published 1,449
fiscal annual statements, has had an average annual net income 1,450
plus its average annual fixed charges at least equal to one and 1,451
one-half times the sum of its average annual dividend or 1,452
distribution requirement for preferred stock and its average 1,453
annual fixed charges for the same period; provided, during 1,454
36
neither of the last two years of the period shall the sum of its 1,455
annual net income and its annual fixed charges be less than one 1,456
and one-half times the sum of its dividend or distribution 1,457
requirements for preferred stock and its fixed charges for the 1,458
same period. As used in this paragraph, "fixed charges" means 1,459
interest on funded or unfunded debt, contingent interest charges, 1,460
amortization of debt discount, and expense and rentals for leased 1,461
property and, in the case of consolidated earnings statements of 1,462
parent and subsidiary corporations, includes all fixed charges 1,463
and preferred dividend or distribution requirements, if any, of 1,464
the subsidiaries. 1,465
(ii) The corporation has no arrears of dividends or 1,467
distributions on its preferred stock; 1,468
(iii) The common stock or American depositary receipt is 1,470
registered on a national securities exchange as provided in the 1,471
"Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C.A. 77b, 1,474
or, if traded only in the over-the-counter market, at least five 1,475
member firms of the national association of securities dealers 1,476
make markets in the stock or American depositary receipt. 1,477
Registration is not required of the common stock of a bank that 1,478
is a member of the federal deposit insurance corporation or a 1,479
bank holding company and has capital funds, represented by 1,480
capital, surplus, and undivided profits, of at least twenty 1,481
million dollars; the common stock of a life insurance or an 1,482
insurance holding company that has capital funds, represented by 1,483
capital, special surplus funds, and unassigned surplus, of at 1,484
least fifty million dollars; or the common stock of a fire or 1,485
casualty insurance company, or a combination thereof, that has 1,486
capital funds represented by capital, net surplus, and voluntary 1,487
reserves, of at least fifty million dollars; 1,488
(iv) The preferred stock of the corporation, if any is 1,490
outstanding, qualifies for investment under division (K)(18)(a) 1,492
of this section;
(v) The corporation, having no preferred stock 1,494
37
outstanding, has had either earnings before interest and taxes 1,495
for the five fiscal years next preceding the date of investment 1,496
of at least twice the interest on all mortgages, bonds, 1,497
debentures, and funded debts, if any, after deduction of the 1,498
proper charges for replacements, depreciation, and obsolescence 1,499
or the corporation's senior subordinated debt obligations are 1,500
rated "A-" or higher quality rating according to the Standard and 1,501
Poor's rating service or the equivalent rating in another 1,502
standard rating service; 1,503
(vi) The corporation has paid a cash dividend or 1,505
distribution on its common stock in at least three years of the 1,506
five-year period next preceding the date of investment, and the 1,507
aggregate net earnings available for dividends or distributions 1,508
on the common stock of the corporation for the whole of the 1,509
period has been at least equal to the amount of the dividends or 1,510
distributions paid, except that ten per cent of the total value 1,511
of all funds invested by the commission may be invested in 1,512
nondividend paying common stocks; 1,513
(vii) In applying the earnings test under this division to 1,515
any issuing, assuming, or guaranteeing corporation, where the 1,516
corporation has acquired its property or any substantial part 1,517
thereof within a five-year period immediately preceding the date 1,518
of investment by consolidations, merger, or by the purchase of 1,519
all or a substantial portion of the property of any other 1,520
corporation or corporations, or has acquired the assets of any 1,521
unincorporated business enterprise by purchase or otherwise, net 1,522
income, fixed charges, and preferred dividends or distributions 1,523
of the several predecessor or constituent corporations or 1,524
enterprises shall be consolidated and adjusted so as to ascertain 1,525
whether or not the applicable requirements of this section have 1,526
been complied with. 1,527
(b) In derivative instruments based on the stocks or 1,529
American depositary receipts that qualify for investment under 1,530
division (K)(20)(a) of this section; 1,531
38
(c) In beneficial interests in commingled stock investment 1,533
funds; 1,534
(d) The total value of common and preferred stocks, 1,536
American depositary receipts, derivative instruments, and 1,537
commingled stock investment fund investments made under this 1,538
division shall not exceed fifty per cent of the total value of 1,539
all funds invested by the commission, provided: 1,540
(i) Not more than one and one-half per cent of the total 1,542
value of the funds is invested in the common stock of a single 1,543
corporation; 1,544
(ii) The total number of common shares in a single 1,546
corporation does not exceed ten per cent of the issued and 1,547
outstanding common stock of such corporation. 1,548
(e) As used in division (K)(20)(d) of this section, 1,550
"value" consists of cash, the par value of unpaid balance of all 1,551
unmatured or unpaid investments requiring the payment of a fixed 1,552
amount at payment date, and the cost of all other investments. 1,553
(21)(a) In debt or equity interests in either of the 1,555
following: 1,556
(i) Any corporation, partnership, proprietorship, or other 1,558
entity not otherwise meeting the investment requirements of this 1,559
section, provided more than one-half of its assets are within 1,560
this state, more than one-half of its employees are employed 1,561
within this state, or its principal office is located within this 1,562
state, and provided liability is limited to the amount of the 1,563
investment; 1,564
(ii) Venture capital firms having an office within this 1,566
state, provided that, as a condition of the commission making an 1,567
investment in a venture capital firm, the firm shall agree to use 1,568
its best efforts to make investments, in an aggregate amount at 1,569
least equal to the investment to be made by the commission in 1,570
that venture capital firm, in small businesses having their 1,571
principal offices within this state and having either more than 1,572
one-half of their assets within this state or more than one-half 1,573
39
of their employees employed within this state. 1,574
(b) Investments made under division (K)(21) of this 1,576
section shall not exceed in the aggregate five per cent of the 1,577
total value of all funds invested by the commission. 1,578
(c) As used in division (K)(21) of this section: 1,580
(i) "Venture capital firm" means any corporation, 1,582
partnership, proprietorship, or other entity, the principal 1,583
business of which is or will be the making of investments in 1,584
small businesses. 1,585
(ii) "Small business" means any corporation, partnership, 1,587
proprietorship, or other entity that either does not have more 1,588
than four hundred employees when the investment is made or would 1,589
qualify as a small business for the purpose of receiving 1,590
financial assistance from small business investment companies 1,591
licensed under the "Small Business Investment Act of 1958," 72 1,592
Stat. 689, 15 U.S.C.A. 661, as amended, and rules of the small 1,593
business administration. 1,594
(iii) "Equity interests" means limited partnership 1,596
interests and other equity interests in which liability is 1,597
limited to the amount of the investment, but does not mean 1,598
general partnership interests or other interests involving 1,599
general liability. 1,600
(22) In the following Canadian obligations, which shall 1,602
not exceed fifteen per cent of the total value of all funds 1,603
invested by the commission: bonds, debentures, notes, or other 1,605
obligations issued, guaranteed, or assumed as to both principal 1,606
and interest by the government of Canada, by any province of 1,607
Canada, or by any city of Canada that has a population of not 1,608
less than one hundred fifty thousand, if all of the following 1,609
apply:
(a) The faith and credit of the issuer, guarantor, or 1,611
assumer of the bonds, debentures, notes, or other obligations is 1,612
pledged for the payment of principal and interest thereof, and 1,613
the principal and interest thereof is payable in United States 1,615
40
funds, either unconditionally or at the option of the holder; 1,616
(b) Any such city, if the issuer, guarantor, or assumer is 1,618
a city, has power to levy taxes on the taxable real property 1,619
therein or to collect other revenues for the payment of both 1,620
principal and interest of the bonds, debentures, notes, or other 1,621
obligations without limitation of rate or amount; 1,622
(c) The issuer, guarantor, or assumer of the bonds, 1,624
debentures, notes, or other obligations has not within ten years 1,625
prior to the making of the investment defaulted in payment of 1,626
principal or interest of any debt evidenced by its bonds, 1,627
debentures, notes, or other obligations for more than ninety 1,628
days; 1,629
(d) The bonds, debentures, notes, or other obligations are 1,631
rated at the time of purchase the equivalent of an "A-" or higher 1,632
quality rating according to the Standard and Poor's rating 1,633
service by at least two standard rating services or, if not 1,634
rated, are certified in writing by two or more such services to 1,635
be of investment quality equivalent to or higher than the quality 1,636
of bonds rated an "A-". 1,637
(23) In obligations issued, assumed, or guaranteed by the 1,639
international bank for reconstruction and development, the Asian 1,640
development bank, the inter-American development bank, the 1,641
African development bank, the international finance corporation, 1,642
or other similar development bank in which the president, as 1,643
authorized by congress and on behalf of the United States, has 1,645
accepted membership; 1,646
(24) In general obligations backed by the full faith and 1,648
credit of the state of Israel. All interest and principal shall 1,649
be denominated and payable in United States funds. 1,650
(25) In debt or equity interests in or issued by foreign 1,652
entities or any instrument based on, derived from, or related to 1,653
those interests and foreign currency denominated contracts or 1,654
obligations. The investments made under this division shall not 1,655
exceed in the aggregate ten per cent of the total value of all 1,656
41
funds invested by the commission. 1,657
Sec. 3365.08. (A) A college that expects to receive or 1,666
receives reimbursement under section 3365.07 of the Revised Code 1,667
shall furnish to a participant all textbooks and materials 1,668
directly related to a course taken by the participant under 1,669
division (B) of section 3365.04 of the Revised Code. No college 1,670
shall charge such participant for tuition, textbooks, materials, 1,671
or other fees directly related to any such course. 1,672
(B) No student enrolled under this chapter in a course for 1,674
which credit toward high school graduation is awarded is eligible 1,675
for any SHALL RECEIVE DIRECT financial aid under Chapter 3351. of 1,677
the Revised Code THROUGH ANY STATE OR FEDERAL PROGRAM.
(C) If a school district provides transportation for 1,679
resident school students in grades eleven and twelve under 1,680
section 3327.01 of the Revised Code, a parent of a pupil enrolled 1,681
in a course under division (B) of section 3365.04 of the Revised 1,682
Code may apply to the board of education for full or partial 1,683
reimbursement for the necessary costs of transporting the student 1,684
between the secondary school the student attends and the college 1,686
in which the student is enrolled. Reimbursement may be paid 1,687
solely from funds received by the district under division (D) of 1,688
section 3317.022 of the Revised Code. The state board of 1,689
education shall establish guidelines, based on financial need, 1,690
under which a district may provide such reimbursement. 1,691
Sec. 3366.01. As used in this chapter, the following words 1,701
and terms have the following meanings unless the context 1,702
indicates a different meaning or intent:
(A) "Bond proceedings" means the order, trust, agreement, 1,705
indenture and other agreements, or amendments and supplements to 1,706
the foregoing, or any one or more or combination thereof, 1,707
authorizing or providing for the terms and conditions applicable 1,708
to, or providing for the issuance, security, or liquidity of, 1,709
obligations and the provisions contained in such obligations. 1,710
(B) "Bond service charges" means principal, including 1,713
42
mandatory sinking fund requirements for retirement of 1,714
obligations, and interest, and redemption premium, if any, 1,715
required to be paid on obligations.
(C) "Bond service fund" means the applicable fund and 1,718
accounts therein created in the bond proceedings for and pledged 1,719
to the payment of bond service charges, including all moneys and 1,720
investments, and earnings from investments, credited and to be 1,721
credited thereto.
(D) "Costs of attendance" means all costs of a student 1,724
incurred in connection with a program of study at an eligible 1,725
institution, as determined by the institution, including tuition; 1,726
instructional fees; room and board; books, computers, and 1,727
supplies; and other related fees, charges, and expenses. 1,728
(E) "Designated nonprofit corporation" means the nonprofit 1,731
corporation designated under division (F)(D) of section 3351.07 1,732
of the Revised Code to operate exclusively for charitable and 1,734
educational purposes by expanding access to higher education 1,735
financing programs for students and families in need of student 1,736
financial aid.
(F) "Education loan" means a loan made by an eligible 1,739
lender pursuant to the policy guidelines to or for the benefit of 1,741
a student for the purpose of financing part or all of the
student's costs of attendance. 1,742
(G) "Eligible borrower" means any of the following: 1,745
(1) Individuals who are residents of the state, and who 1,747
are attending and are in good standing in, or who have been 1,748
accepted for attendance at, any eligible institution located in 1,749
this state or elsewhere, on a part-time or full-time basis, to 1,750
pursue an associate, baccalaureate, or advanced degree or a 1,751
nursing diploma; 1,752
(2) Individuals who reside outside the state and who have 1,755
been accepted for attendance at, or who are attending and are in 1,756
good standing in, any eligible institution located in this state, 1,757
on a part-time or full-time basis, to pursue an associate,
43
baccalaureate, or advanced degree or a nursing diploma; 1,758
(3) Individuals who are parents or legal guardians of, or 1,761
other persons, as set forth in the policy guidelines, borrowing 1,762
under an education loan for the benefit of individuals meeting 1,763
requirements set forth in division (G)(1) or (2) of this section, 1,764
in order to assist them in paying costs of attendance. 1,765
(H)(1) "Eligible institution" means an institution 1,768
described in any of divisions (H)(1)(a), (b), or (c) of this 1,769
section that satisfies all of the requirements set forth in 1,771
divisions (H)(2), (3), and (4) of this section. 1,772
(a) The institution is a state-assisted post-secondary 1,775
educational institution within this state.
(b) The institution is a nonprofit institution within this 1,778
state having a certificate of authorization from the Ohio board 1,779
of regents pursuant to Chapter 1713. of the Revised Code. 1,780
(c) The institution is a post-secondary educational 1,783
institution similar to one described in division (H)(1)(a) or (b) 1,784
of this section that is located outside this state and that is 1,785
similarly approved by the appropriate agency of that state. 1,786
(2) The institution is accredited by the appropriate 1,788
regional and, when appropriate, professional accrediting 1,789
associations within whose jurisdiction it falls. 1,790
(3) The institution satisfies the eligibility requirements 1,793
for participation in the federal family education loan program 1,794
authorized under Title IV, Part B, of the "Higher Education Act 1,796
of 1965," 20 U.S.C.A. 1071 et seq., as amended, as long as that 1,798
program remains in existence.
(4) The institution satisfies the other conditions set 1,800
forth in the policy guidelines. 1,801
(I) "Eligible lender" means a bank, national banking 1,803
association, savings bank, savings and loan association, or 1,804
credit union having an office in this state that satisfies the 1,805
criteria for eligible lenders established pursuant to the policy 1,806
guidelines. 1,807
44
(J) "Governmental agency" means the state and any state 1,810
department, division, commission, institution, or authority; the 1,811
United States or any agency thereof; or any agency, commission, 1,812
or authority established pursuant to an interstate compact or 1,813
agreement; or any combination of the foregoing. 1,814
(K) "Issuing authority" means the treasurer of state, or 1,817
the officer who by law performs the functions of the treasurer of 1,818
state.
(L) "Obligations" means the bonds, notes, or securities of 1,821
this state issued by the issuing authority pursuant to this 1,822
chapter.
(M) "Person" means any individual, corporation, business 1,825
trust, estate, trust, partnership, or association, any federal, 1,826
state, interstate, regional, or local governmental agency, any 1,827
subdivision of the state, or any combination of these. 1,828
(N) "Pledged receipts" means, to the extent the following 1,831
are pledged by the bond proceedings for the payment of bond 1,832
service charges: all receipts representing moneys accruing from 1,833
or in connection with the repayment of education loans, including 1,834
interest and payments from any guarantee or insurance in respect 1,835
to such education loans; accrued interest received from the sale 1,836
of obligations; the balances in the special funds; income from 1,837
the investment of the special funds; all right, title, or 1,838
interest of the state in any education loans and any guarantees 1,839
or insurance in respect thereof; all right, title, and interest 1,840
of the designated nonprofit corporation in the education loans 1,841
and any guarantees or insurance in respect thereof, and any money 1,842
representing the proceeds of obligations or any income from or 1,843
interest on those proceeds; or any other gifts, grants, 1,844
donations, and pledges and any income and receipts therefrom, 1,845
available and pledged for the payment of bond service charges. 1,846
(O) "Policy guidelines" means the rules adopted pursuant 1,849
to division (A) of section 3366.03 of the Revised Code. 1,850
(P) "Proceeds loan" means the transfer, pursuant to a loan 1,853
45
agreement or agency agreement, of the proceeds of the 1,854
obligations, or the deposit of the proceeds of the obligations 1,855
with a trustee in trust under a trust agreement, indenture, or 1,856
other trust document under the bond proceedings pending their 1,857
disbursement for the purposes authorized by this chapter. 1,858
(Q) "Resident" means any student who would qualify as a 1,861
resident of this state for state subsidy and tuition surcharge 1,862
purposes under rules adopted by the Ohio board of regents under 1,863
section 3333.31 of the Revised Code. 1,864
(R) "Special funds" or "funds" means the bond service fund 1,867
and any other funds, including reserve funds, created under the 1,868
bond proceedings, including all moneys and investments, and 1,869
earnings from investment, credited and to be credited thereto. 1,870
(S) "Student" means an individual described in division 1,873
(G)(1) or (2) of this section who meets requirements established 1,874
under the policy guidelines. "Student" includes dependent and 1,875
independent undergraduate, graduate, and professional students. 1,876
(T) "Subdivision" has the same meaning as in division (MM) 1,879
of section 133.01 of the Revised Code. 1,880
Sec. 4501.02. (A) There is hereby created in the 1,889
department of public safety a bureau of motor vehicles, which 1,890
shall be administered by a registrar of motor vehicles. The 1,891
registrar shall be appointed by the director of public safety and 1,892
shall serve at his THE DIRECTOR'S pleasure. 1,893
The registrar shall administer the laws of the state 1,895
relative to the registration of and certificates of title for 1,896
motor vehicles, and the licensing of motor vehicle dealers, motor 1,897
vehicle leasing dealers, distributors, and salespersons, and of 1,898
motor vehicle salvage dealers, salvage motor vehicle auctions, 1,899
and salvage motor vehicle pools. The registrar also shall, in 1,900
accordance with section 4503.61 of the Revised Code, take those 1,901
steps necessary to enter this state into membership in the 1,902
international registration plan and carry out his THE REGISTRAR'S 1,904
other duties under that section. The registrar, with the 1,905
46
approval of the director of public safety, may do all of the 1,906
following:
(1) Adopt such forms and rules as are necessary to carry 1,908
out all laws he THE REGISTRAR is required to administer; 1,909
(2) Appoint such number of assistants, deputies, clerks, 1,911
stenographers, and other employees as are necessary to carry out 1,912
such laws; 1,913
(3) Acquire or lease such facilities as are necessary to 1,915
carry out the duties of his THE REGISTRAR'S office. 1,916
The registrar shall give a bond for the faithful 1,918
performance of his THE REGISTRAR'S duties in such amount and with 1,920
such security as the director approves. When in the opinion of 1,921
the director it is advisable, any deputy or other employee may be 1,922
required to give bond in such amount and with such security as 1,923
the director approves. In the discretion of the director, the 1,924
bonds authorized to be taken on deputies or other employees may 1,925
be individual, schedule, or blanket bonds. 1,926
The registrar shall furnish the director of the Ohio 1,928
student aid commission with the information required under 1,929
division (C) of section 3351.071 of the Revised Code. 1,930
The director of public safety may investigate the 1,932
activities of the bureau and have access to its records at any 1,933
time, and the registrar shall make a report to the director at 1,934
any time upon request. 1,935
All laws relating to the licensing of motor vehicle 1,937
dealers, motor vehicle leasing dealers, distributors, and 1,938
salespersons, and of motor vehicle salvage dealers, salvage motor 1,939
vehicle auctions, and salvage motor vehicle pools, designating 1,940
and granting power to the registrar shall be liberally construed 1,941
to the end that the practice or commission of fraud in the 1,942
business of selling motor vehicles and of disposing of salvage 1,943
motor vehicles may be prohibited and prevented. 1,944
(B) There is hereby created in the department of public 1,946
safety a division of emergency medical services, which shall be 1,947
47
administered by an executive director of emergency medical 1,948
services appointed under section 4765.03 of the Revised Code. 1,949
Section 2. That existing sections 111.15, 131.15, 135.18, 1,951
135.181, 3333.25, 3345.32, 3351.07, 3365.08, 3366.01, and 4501.02 1,953
and sections 3351.05, 3351.06, 3351.071, 3351.08, 3351.09, 1,954
3351.10, 3351.11, 3351.12, 3351.13, and 3351.131 of the Revised 1,955
Code are hereby repealed.
Section 3. Section 135.18 of the Revised Code is presented 1,957
in this act as a composite of the section as amended by both Am. 1,959
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 1,961
letters. Section 135.181 of the Revised Code is presented in 1,962
this act as a composite of the section as amended by Am. Sub. 1,963
S.B. 81, Am. Sub. S.B. 293, and Am. Sub. H.B. 538 of the 121st 1,964
General Assembly, with the new language of none of the acts shown 1,966
in capital letters. Sections 3333.25 and 3351.07 of the Revised 1,967
Code are presented in this act as composites of the sections as 1,968
amended by both Am. Sub. H.B. 627 and Am. Sub. S.B. 82 of the 1,969
121st General Assembly, with the new language of neither of the 1,971
acts shown in capital letters. This is in recognition of the 1,972
principle stated in division (B) of section 1.52 of the Revised 1,973
Code that such amendments are to be harmonized where not 1,974
substantively irreconcilable and constitutes a legislative 1,975
finding that such is the resulting version in effect prior to the 1,976
effective date of this act.