As Reported by the Senate Finance and 2
Financial Institutions Committee 2
123rd General Assembly 5
Regular Session Sub. H. B. No. 510 6
1999-2000 7
REPRESENTATIVES EVANS-HOUSEHOLDER-VERICH-SCHULER-SALERNO- 9
BARNES-MYERS-CAREY-TIBERI-BUCHY-JOLIVETTE-HARTNETT-STEVENS- 10
FLANNERY-OLMAN-HOLLISTER-AUSTRIA-PETERSON-REDFERN- 12
SENATORS WHITE-KEARNS
_________________________________________________________________ 14
A B I L L
To amend sections 1101.15, 1155.13, 1163.16, 16
1181.16, and 1733.32, to enact new sections 18
1733.329 and 1733.3210 and section 1181.17, and
to repeal sections 1733.329 and 1733.3210 of the 19
Revised Code to revise the qualifications and 20
duties of members of the Savings and Loan 21
Associations and Savings Banks Board and the
Credit Union Council, and to make modifications 22
in the Banking Law relative to the authorized 23
name or designation of entities carrying on
banking or trust activities. 24
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 26
Section 1. That sections 1101.15, 1155.13, 1163.16, 28
1181.16, and 1733.32 be amended and new sections 1733.329 and 30
1733.3210 and section 1181.17 of the Revised Code be enacted to 31
read as follows:
Sec. 1101.15. (A)(1) Except as provided in division 40
(A)(2) of this section, no person other than a bank doing 41
business under authority granted by the superintendent of 42
financial institutions, the bank chartering authority of another 43
state, the office of the comptroller of the currency, or the bank 45
chartering authority of a foreign country shall do either of the 46
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following:
(a) Use "bank," "banker," or "banking," or a word or words 49
of similar meaning in any other language, as IN a designation or 50
name, or as ANY part of a designation or name, under which 52
business is or may be conducted in this state; 53
(b) Represent itself as a bank. 55
(2)(a) A corporation doing business under Chapter 1151. of 58
the Revised Code may use the word "bank," "banker," or "banking," 60
or a word or words of similar meaning in any other language, IN 62
OR as part of a designation or name under which business is or 65
may be conducted in this state, as provided in section 1151.07 of
the Revised Code. 66
(b) A corporation doing business under Chapter 1161. of 69
the Revised Code may use the word "bank," "banker," or "banking," 70
or a word or words of similar meaning in any other language, IN 72
OR as part of a designation or name under which business is or 75
may be conducted in this state, as provided in section 1161.09 of
the Revised Code. 76
(c) A corporation doing business under authority granted 78
by the office of thrift supervision may use the word "bank," 80
"banker," or "banking," or a word or words of similar meaning in 81
any other language, IN OR as part of a designation or name under 84
which business is or may be conducted in this state.
(d) A nonprofit organization PERSON, whether OPERATING FOR 86
PROFIT or not incorporated under Chapter 1702. of the Revised 88
Code, may use the word "bank," "banker," or "banking," or a word 91
or words of similar meaning in any other language, IN OR as part 92
of a designation or name under which business is or may be 94
conducted if the superintendent determines the organization's use 95
NAME, ON ITS FACE, is not likely to mislead the public and 96
authorizes the organization to use OF the word or words NAME. 98
(B)(1) Except as provided in division (B)(2) of this 101
section, no person, other than a corporation licensed in
accordance with authority granted in Chapter 1111. of the Revised 102
3
Code as a trust company, a savings and loan association licensed 105
under section 1151.348 of the Revised Code to serve as a 106
fiduciary, a national bank with trust powers, or a federal
savings association with trust powers, shall do either of the 107
following:
(a) Use the word "trust," or a word or words of similar 110
meaning in any other language, as IN a designation or name, or AS 111
ANY part of a designation or name, under which business is or may 113
be conducted in this state;
(b) Otherwise represent itself as a fiduciary or trust 115
company.
(2)(a) A person that is not required to be licensed under 117
Chapter 1111. of the Revised Code may serve as a fiduciary and, 118
when acting in that fiduciary capacity, otherwise represent such 120
person as a fiduciary. 121
(b) A person licensed by another state to serve as a 123
fiduciary and exempt from licensure under Chapter 1111. of the 124
Revised Code may serve as a fiduciary to the extent permitted by 125
the exemption.
(c) A savings and loan association may serve as a trustee 127
to the extent authorized by section 1151.191 of the Revised Code. 128
(d) A savings bank may serve as a trustee to the extent 130
authorized by section 1161.24 of the Revised Code. 131
(e) A charitable trust, business trust, real estate 133
investment trust, personal trust, or other bona fide trust may 135
use the word "trust" or a word or words of similar meaning in any 137
other language, as IN a designation or name, or AS part of a 138
designation or name, under which business is or may be conducted. 139
(f) A nonprofit organization PERSON, whether OPERATING FOR 141
PROFIT or not incorporated under Chapter 1702. of the Revised 144
Code, may use "trust" or a word or words of similar meaning in 146
any other language, as IN a designation or name, or AS part of a 147
designation or name, under which business is or may be conducted, 148
if the superintendent determines the organization's use NAME, ON 149
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ITS FACE, is not likely to mislead the public and authorizes the 151
organization to use OF the word or words NAME. 152
(C) No bank shall use "state" as part of a designation or 154
name under which it transacts business in this state, unless the 155
bank is doing business under authority granted by the 156
superintendent or the bank chartering authority of another state. 157
Sec. 1155.13. (A)(1) Each savings and loan association 166
subject to inspection and examination by the superintendent of 167
financial institutions and transacting business in this state as 168
of the thirty-first day of December of the prior fiscal year, or 169
the savings and loan association's successor in interest, shall 170
pay annual assessments to the superintendent as provided in this 171
section.
(2) After determining the budget of the division of 173
financial institutions for examination and regulation of savings 174
and loan associations, but prior to establishing the annual 175
assessment amount necessary to fund that budget, the
superintendent shall include any amounts collected but not yet 176
expended or encumbered by the superintendent in the previous 177
fiscal year's budget and remaining in the savings institutions 179
fund from the amount to be assessed. Based upon the resulting 180
budget amount AND UPON CONFIRMATION OF THE SCHEDULE OF 181
ASSESSMENTS BY THE SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS 182
BANKS BOARD, the superintendent shall make an assessment upon 184
each savings and loan association based on the total assets as 185
shown on the books of the savings and loan association as of the
thirty-first day of December of the previous fiscal year. The 186
assessments shall be collected on an annual or periodic basis 187
within the fiscal year, as determined by the superintendent. 188
(3) ANNUALLY AND PRIOR TO MAKING ANY ASSESSMENT PURSUANT 190
TO DIVISION (A)(2) OF THIS SECTION, THE SUPERINTENDENT SHALL 191
PRESENT TO THE SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS 192
BOARD FOR CONFIRMATION A SCHEDULE OF THE ASSESSMENTS TO BE BILLED 193
SAVINGS AND LOAN ASSOCIATIONS PURSUANT TO DIVISION (A)(2) OF THIS 194
5
SECTION.
(4) A savings and loan association authorized by the 196
superintendent to commence business in the period between 197
assessments shall pay the actual reasonable costs of the 198
division's examinations and visitations.
(B) Assessments and fees charged pursuant to this section 200
shall be paid within fourteen days after receiving an invoice for 201
payment of the assessment or fee. 202
Any assessment or fee collected is not refundable. 204
(C) The superintendent shall pay all assessments and fees 206
charged pursuant to this section and all forfeitures required to 207
be paid to the superintendent into the state treasury to the 208
credit of the savings institutions fund established under section 210
1181.18 of the Revised Code.
(D) Any money deposited into the state treasury to the 212
credit of the savings institutions fund, but not expended or 214
encumbered by the superintendent to defray the costs of 215
administering Chapters 1151. to 1157. of the Revised Code, shall 217
remain in the savings institutions fund for expenditures by the 218
superintendent in subsequent years in the administration of 220
Chapters 1151. to 1157. of the Revised Code.
Sec. 1163.16. (A)(1) Each savings bank subject to 231
inspection and examination by the superintendent of financial
institutions and transacting business in this state as of the 232
thirty-first day of December of the prior fiscal year, or the 233
savings bank's successor in interest, shall pay annual 234
assessments to the superintendent as provided in this section. 235
(2) After determining the budget of the division of 237
financial institutions for examination and regulation of savings 238
banks, but prior to establishing the annual assessment amount 239
necessary to fund that budget, the superintendent shall include 240
any amounts collected but not yet expended or encumbered by the 241
superintendent in the previous fiscal year's budget and remaining 242
in the savings institutions fund from the amount to be assessed. 243
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Based upon the resulting budget amount AND UPON CONFIRMATION OF 244
THE SCHEDULE OF ASSESSMENTS BY THE SAVINGS AND LOAN ASSOCIATIONS 245
AND SAVINGS BANKS BOARD, the superintendent shall make an 246
assessment upon each savings bank based on the total assets as 247
shown on the books of the savings bank as of the thirty-first day 248
of December of the previous fiscal year. The assessments shall 249
be collected on an annual or periodic basis within the fiscal 250
year, as determined by the superintendent.
(3) ANNUALLY AND PRIOR TO MAKING ANY ASSESSMENT PURSUANT 252
TO DIVISION (A)(2) OF THIS SECTION, THE SUPERINTENDENT SHALL 253
PRESENT TO THE SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS 254
BOARD FOR CONFIRMATION A SCHEDULE OF THE ASSESSMENTS TO BE BILLED 255
SAVINGS BANKS PURSUANT TO DIVISION (A)(2) OF THIS SECTION. 256
(4) A savings bank authorized by the superintendent to 258
commence business in the period between assessments shall pay the 259
actual reasonable costs of the division's examinations and 260
visitations.
(B) Assessments and fees charged pursuant to this section 262
shall be paid within fourteen days after receiving an invoice for 263
payment of the assessment or fee. 264
Any assessment or fee collected is not refundable. 266
(C) The superintendent shall pay all assessments and fees 268
charged pursuant to this section and all forfeitures required to 269
be paid to the superintendent into the state treasury to the 270
credit of the savings institutions fund established under section 271
1181.18 of the Revised Code. 272
(D) Any money deposited into the state treasury to the 274
credit of the savings institutions fund, but not expended or 275
encumbered by the superintendent to defray the costs of 277
administering Chapters 1161. to 1165. of the Revised Code, shall 278
remain in the savings institutions fund for expenditures by the 279
superintendent in subsequent years in the administration of 280
Chapters 1161. to 1165. of the Revised Code.
Sec. 1181.16. (A) There is hereby created a savings and 291
7
loan associations and savings banks board which shall consist of
seven members. The deputy superintendent for savings and loan 293
associations and savings banks shall be a member of the board and 294
its chairperson and executive head. The governor, with the 295
advice and consent of the senate, shall appoint the remaining six 296
members, and the governor may remove any of them whenever in the 297
governor's judgment the public interest requires removal. Upon 299
such removal the governor shall file with the superintendent of 300
financial institutions a statement of the cause thereof. 301
(B) After the second Monday in January of each year, the 304
governor shall appoint two members. Terms of office shall be for
three years commencing on the first day of February and ending on 305
the thirty-first day of January. Each member shall hold office 306
from the date of appointment until the end of the term for which 307
the member was appointed. In the case of a vacancy in the office 308
of any such member, the governor shall appoint a successor who 310
shall hold office for the remainder of the term for which the 311
successor's predecessor was appointed. Any member shall continue 312
in office subsequent to the expiration date of the member's term 313
until the member's successor takes office, or until a period of 314
sixty days has elapsed, whichever occurs first.
(C) No person appointed as a member of such board may 316
serve more than two full consecutive terms. HOWEVER, A MEMBER 318
MAY SERVE TWO FULL CONSECUTIVE TERMS FOLLOWING THE REMAINDER OF A 319
TERM FOR WHICH THE MEMBER WAS APPOINTED TO FILL A VACANCY. 320
(D)(1) At least two of the six appointive members of the 322
savings and loan associations and savings banks board shall have 323
had savings and loan association experience in a savings and loan 324
association organized and transacting business under the laws of 325
this state AUTHORITY GRANTED BY THE SUPERINTENDENT OF FINANCIAL 326
INSTITUTIONS.
(E)(2) At least two of the six appointive members of the 328
savings and loan associations and savings banks board shall have 330
had savings banks experience in a savings bank organized and 331
8
transacting business under the laws of this state AUTHORITY 333
GRANTED BY THE SUPERINTENDENT.
(F) Two appointed members of the savings and loan 335
associations and savings banks board shall represent the public 336
and shall not at the time of appointment or during the term of 337
appointment be engaged in the management or direction of a 338
financial institution or have a financial interest in a financial 339
institution other than as a customer or member of the financial
institution. For purposes of this division, "financial 340
institution" includes a credit union, bank, savings and loan 341
association, and savings bank. 342
(G) A majority of the board shall constitute a quorum and 344
action taken by a majority of those present at any meeting at 345
which a quorum is present shall be the action of the board. 346
No member shall participate in a proceeding before the 348
board involving any savings and loan association or savings bank 349
of which the member is or was at any time in the preceding twelve 351
months a member of the board of directors, officer, employee, or 352
stockholder. A member may disqualify himself or herself from 353
participating in a proceeding for any other cause deemed by the 354
member to be sufficient.
(E) NO PERSON WHO HAS BEEN CONVICTED OF, OR PLEADED GUILTY 356
TO, A FELONY INVOLVING DISHONESTY OR BREACH OF TRUST SHALL TAKE 357
OR HOLD OFFICE AS A MEMBER OF THE SAVINGS AND LOAN ASSOCIATIONS 358
AND SAVINGS BANKS BOARD. 359
(F) THE MEMBERS OF THE BOARD SHALL RECEIVE NO SALARY, BUT 362
THEIR EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES SHALL 363
BE PAID FROM FUNDS APPROPRIATED FOR THAT PURPOSE.
(G) THE GOVERNOR MAY REMOVE ANY OF THE SIX MEMBERS 365
APPOINTED TO THE BOARD WHENEVER IN THE GOVERNOR'S JUDGMENT THE 367
PUBLIC INTEREST REQUIRES REMOVAL. UPON REMOVING A MEMBER OF THE 368
BOARD, THE GOVERNOR SHALL FILE WITH THE SUPERINTENDENT A 370
STATEMENT OF THE CAUSE FOR REMOVAL. 371
(H)(1) The savings and loan associations and savings banks 373
9
board shall hold regular meetings at such times and places as it 374
fixes, BUT AT LEAST ONCE EVERY SIX MONTHS, and shall meet at any 376
time on call of the deputy superintendent for savings and loan 377
associations and savings banks upon two days' notice unless the 378
board by resolution provides for a shorter notice. The members 379
of the board shall receive no salary, but their expenses incurred 380
in the performance of their duties shall be paid from funds 381
appropriated therefor.
(2) A MAJORITY OF THE FULL BOARD CONSTITUTES A QUORUM AND 383
ACTION TAKEN BY A MAJORITY OF THOSE PRESENT AT ANY MEETING AT 384
WHICH A QUORUM IS PRESENT SHALL BE THE ACTION OF THE BOARD. 385
(3) NO MEMBER SHALL PARTICIPATE IN A PROCEEDING BEFORE THE 387
BOARD INVOLVING ANY SAVINGS AND LOAN ASSOCIATION OR SAVINGS BANK 388
OF WHICH THE MEMBER IS OR WAS AT ANY TIME IN THE PRECEDING TWELVE 390
MONTHS A MEMBER OF THE BOARD OF DIRECTORS, OFFICER, EMPLOYEE, OR 391
STOCKHOLDER. A MEMBER MAY DISQUALIFY HIMSELF OR HERSELF FROM 392
PARTICIPATING IN A PROCEEDING FOR ANY OTHER CAUSE DEEMED BY THE 393
MEMBER TO BE SUFFICIENT.
(4) The board may, by a majority vote OF THOSE PRESENT AT 395
A MEETING AT WHICH THERE IS A QUORUM, adopt and amend such bylaws 396
and rules as THE BOARD, in its judgment are, CONSIDERS necessary 398
and proper. It shall select one of its members as secretary, who 400
shall keep a record of all its proceedings.
(I) The savings and loan associations and savings banks 402
board may: 403
(a) Consider and make recommendations upon any matter 405
addressed in Chapters 1151., 1153., 1155., 1157., 1161., 1163., 407
and 1165., which the superintendent of financial institutions or 408
deputy superintendent for savings and loan associations and 409
savings banks submits to it for that purpose, and pass upon and 410
determine any matter which the superintendent or deputy 411
superintendent submits to it for determination; and
(b) Submit to the governor proposed amendments to the laws 413
of this state governing savings and loan associations and savings 414
10
banks.
(J) Neither the deputy superintendent for savings and loan 416
associations and savings banks, nor any other member of the 417
savings and loan associations and savings banks board, shall be 418
liable, in any civil or criminal action or proceeding, for any 419
mistake of judgment or discretion in any action taken, or in any 420
omission made, by the deputy superintendent or other member in 421
good faith.
Sec. 1181.17. THE SAVINGS AND LOAN ASSOCIATIONS AND 423
SAVINGS BANKS BOARD SHALL DO ALL OF THE FOLLOWING: 425
(A) MAKE RECOMMENDATIONS TO THE SUPERINTENDENT OF 428
FINANCIAL INSTITUTIONS AND THE DEPUTY SUPERINTENDENT FOR SAVINGS 429
AND LOAN ASSOCIATIONS AND SAVINGS BANKS ON MATTERS RELATING TO
THE BUSINESS OF SAVINGS AND LOAN ASSOCIATIONS AND SAVINGS BANKS; 430
(B) CONSIDER AND MAKE RECOMMENDATIONS UPON ANY MATTER 432
ADDRESSED IN CHAPTERS 1151., 1153., 1155., 1157., 1161., 1163., 434
AND 1165. OF THE REVISED CODE THAT THE SUPERINTENDENT OR DEPUTY 435
SUPERINTENDENT SUBMITS TO THE BOARD FOR THAT PURPOSE; 437
(C) PASS UPON AND DETERMINE ANY MATTER THE SUPERINTENDENT 439
OR DEPUTY SUPERINTENDENT SUBMITS TO THE BOARD FOR DETERMINATION; 440
(D) SUBMIT TO THE GOVERNOR PROPOSED AMENDMENTS TO THE 442
SAVINGS AND LOAN ASSOCIATIONS OR SAVINGS BANKS LAWS OF THIS 444
STATE;
(E) CONSIDER AND DETERMINE WHETHER TO CONFIRM THE ANNUAL 446
SCHEDULE OF ASSESSMENTS PROPOSED BY THE SUPERINTENDENT OF 448
FINANCIAL INSTITUTIONS IN ACCORDANCE WITH DIVISION (A) OF 449
SECTIONS 1155.13 AND 1163.16 OF THE REVISED CODE. 450
Sec. 1733.32. (A)(1) The superintendent of financial 459
institutions shall see that the laws relating to credit unions 461
are executed and enforced.
(2) The deputy superintendent for credit unions shall be 464
the principal supervisor of credit unions. In that position the 465
deputy superintendent for credit unions shall, notwithstanding 466
division (A)(3) of this section, be responsible for conducting 467
11
examinations and preparing examination reports under that 468
division. In addition, the deputy superintendent for credit 469
unions shall, notwithstanding sections 1733.191, 1733.41, 470
1733.411, and 1733.412 of the Revised Code, have the authority to 472
adopt rules in accordance with those sections, and, 473
notwithstanding section 1733.05 of the Revised Code, shall have 474
the authority to approve issues and matters pertaining to fields 476
of membership. In performing or exercising any of the 477
examination, rule-making, or other regulatory functions, powers, 478
or duties vested by division (A)(2) of this section in the deputy 480
superintendent for credit unions, the deputy superintendent for 481
credit unions shall be subject to the control of the 483
superintendent of financial institutions.
(3) The superintendent shall develop and implement a 485
system for evaluating the safety and soundness of credit unions 486
and for determining when examinations and supervisory actions are 487
necessary. Credit unions shall be subject to periodic 488
examinations, as specified in rules adopted by the 489
superintendent, and their books, records, and accounts shall be 490
open to the inspection of the superintendent at all times. For 491
the purpose of such examination or inspection, the superintendent 492
may subpoena witnesses, administer oaths, receive testimony, and 493
order the submission of documents. 494
(B) Every credit union shall prepare and submit, on forms 496
provided by the superintendent, a financial report to the 497
superintendent showing its assets and liabilities whenever 498
requested to do so by the superintendent. Every financial report 499
shall be verified by the oaths of the two principal officers in 500
charge of the affairs of the credit union at the time of such 501
verification and shall be submitted to the superintendent within 502
thirty days after the superintendent requests the financial 503
report. 504
(C) An annual financial report of the affairs and business 506
of the credit union, showing its condition as of the thirty-first 507
12
day of December unless otherwise authorized by the 508
superintendent, shall be filed with the superintendent not later 509
than the date authorized in the rules adopted by the 510
superintendent. 511
(D) If a financial report or an annual financial report is 513
not filed with the superintendent in accordance with division (B) 514
or (C) of this section, the superintendent may do both of the 515
following: 516
(1) Assess a fine, determined by rule adopted by the 518
superintendent, for each day the report is in arrears; 519
(2) If the superintendent gives written notice to the 521
president of the credit union of the superintendent's intention 523
to do so, issue an order revoking the credit union's articles of 524
incorporation and appointing a liquidating agent to liquidate the 525
credit union in accordance with section 1733.37 of the Revised 526
Code.
(E)(1) Except as provided in division (E)(2) of this 528
section, each credit union doing business in this state shall 529
remit, semiannually and within fifteen days after billing, to the 530
treasurer of state, a supervisory fee in an amount determined by 531
the superintendent, AND CONFIRMED BY THE CREDIT UNION COUNCIL. 533
THE SUPERVISORY FEE DESCRIBED IN DIVISION (E)(1) OF THIS SECTION 534
SHALL BE based on a percentage of the gross assets of the credit 536
union as shown by its last annual financial report filed with the 537
superintendent in accordance with division (C) of this section. 538
The minimum supervisory fee shall be determined by the 539
superintendent AND CONFIRMED BY THE CREDIT UNION COUNCIL. 540
(2) Each corporate credit union doing business in this 542
state shall remit, semiannually and within fifteen days after 543
billing, to the treasurer of state, a supervisory fee determined 544
by rule adopted by the superintendent AND CONFIRMED BY THE CREDIT 546
UNION COUNCIL. The aggregate annual amount of the fee shall not 547
exceed the annual operating fee that the national credit union 548
administration charges a federally chartered credit union 549
13
pursuant to the "Federal Credit Union Act," 84 Stat. 994 (1970), 550
12 U.S.C.A. 1751.
(3) THE SUPERINTENDENT ANNUALLY SHALL PRESENT TO THE 552
CREDIT UNION COUNCIL FOR CONFIRMATION THE SUPERVISORY FEES TO BE 555
BILLED CREDIT UNIONS AND CORPORATE CREDIT UNIONS PURSUANT TO
DIVISION (E) OF THIS SECTION. 556
(4) If any supervisory fee is not remitted in accordance 558
with division (E)(1) or (2) of this section, the superintendent 559
may assess a fine, determined by rule adopted by the 560
superintendent, for each day that each fee is in arrears. 561
(4) The (5)(a) SUBJECT TO DIVISION (E)(5)(b) OF THIS 565
SECTION, THE total amount of each semiannual billing to all 566
credit unions and corporate credit unions combined shall equal 567
one-half of the appropriation made by the main operating 568
appropriation act, including any modifications made by the 569
controlling board, to the division of financial institutions for 570
the regulation of credit unions for the fiscal year in which the 572
billings occur, except that the superintendent, in determining 573
the supervisory fees, may take into consideration any funds 574
lapsed from the appropriation made in the previous fiscal year. 575
(b) IF DURING THE PERIOD BETWEEN THE CREDIT UNION 577
COUNCIL'S CONFIRMATION OF SUPERVISORY FEES AND WHEN SUPERVISORY 578
FEES DESCRIBED IN THIS SECTION ARE COLLECTED, THE CREDIT UNION 579
COUNCIL DETERMINES ADDITIONAL MONEY IS REQUIRED TO ADEQUATELY 580
FUND THE OPERATIONS OF THE DIVISION OF FINANCIAL INSTITUTIONS FOR 581
THAT FISCAL YEAR, THE CREDIT UNION COUNCIL MAY, BY THE 582
AFFIRMATIVE VOTE OF FIVE OF ITS MEMBERS, INCREASE THE SUPERVISORY 583
FEES BILLED. THE SUPERINTENDENT PROMPTLY SHALL NOTIFY EACH 584
CREDIT UNION AND CORPORATE CREDIT UNION OF THE INCREASED 585
SUPERVISORY FEES, AND EACH CREDIT UNION OR CORPORATE CREDIT UNION 586
SHALL PAY THE INCREASED SUPERVISORY FEES BILLED BY THE 587
SUPERINTENDENT.
(5)(6) The fees or fines collected pursuant to this 589
section shall be credited to the credit unions fund created in 591
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section 1733.321 of the Revised Code.
(F) A report of such examination shall be forwarded to the 593
president of each credit union after the completion of the 594
examination. Such report may contain comments relative to the 595
management of the affairs of the credit union and also as to the 596
general condition of its assets. Within thirty days of the 597
receipt of such report, a meeting of the directors shall be 598
called to consider matters contained in the report, and the 599
president shall notify the superintendent of any action taken at 600
such meeting. 601
(G)(1) The superintendent shall furnish reports of 603
examinations or other appropriate information to any organization 604
referred to in section 1733.041 of the Revised Code when 605
requested by such organization and authorized by the credit 606
union. The superintendent may charge a fee for such reports and 607
other information as may be established by rules adopted by the 608
superintendent. 609
(2) A report of examination furnished pursuant to division 611
(G)(1) of this section is the property of the division of credit 612
unions and may be used by the examined credit union only in the 613
conduct of its business. Under no circumstances may the credit 614
union, its current or former directors, officers, employees, 615
agents, shareholders, participants in the conduct of its affairs, 616
or their agents disclose or make public, in any manner, a report 617
of examination or its contents. 618
(H) Except as provided in this division, information 620
obtained by the superintendent of credit unions and the 621
superintendent's employees as a result of or arising out of the 623
examination or independent audit of a credit union, from required 624
reports, or because of their official position, shall be 625
confidential. Such information may be disclosed only in 626
connection with criminal proceedings or, subject to section 627
1733.327 of the Revised Code, when it is necessary for the 628
superintendent to take official action pursuant to Chapter 1733. 629
15
of the Revised Code and the rules adopted thereunder regarding 630
the affairs of the credit union examined. This division does not 631
prevent the superintendent from properly exchanging information 632
relating to an examined credit union pursuant to division (F) or 633
(G) of this section or with officials of properly authorized 634
state or federal supervisory authorities or with any insurer 635
recognized under section 1733.041 or any surety recognized under 636
section 1733.23 of the Revised Code. This division also does not 637
prevent the superintendent from disclosing information contained 638
in the financial reports or annual financial reports described in 639
division (B) or (C) of this section to recognized credit union 640
trade associations.
Sec. 1733.329. (A) THERE IS HEREBY CREATED IN THE 642
DIVISION OF FINANCIAL INSTITUTIONS THE CREDIT UNION COUNCIL, 643
WHICH SHALL CONSIST OF SEVEN MEMBERS. THE DEPUTY SUPERINTENDENT 644
FOR CREDIT UNIONS SHALL BE A MEMBER OF THE COUNCIL AND ITS 645
CHAIRPERSON. THE GOVERNOR, WITH THE ADVICE AND CONSENT OF THE 646
SENATE, SHALL APPOINT THE REMAINING SIX MEMBERS. 647
(B)(1) AT LEAST FIVE OF THE SIX MEMBERS APPOINTED TO THE 649
COUNCIL SHALL HAVE HAD CREDIT UNION EXPERIENCE. 650
(2) AT LEAST FOUR OF THE SIX MEMBERS APPOINTED TO THE 652
COUNCIL SHALL BE, AT THE TIME OF APPOINTMENT, INDIVIDUALS 653
CURRENTLY ENGAGED IN THE EXERCISE OF DUTIES, RESPONSIBILITIES, 654
RIGHTS, AND POWERS OF A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 655
STATE-CHARTERED CREDIT UNION HAVING ITS PRINCIPAL OFFICE IN THIS 656
STATE AND DOING BUSINESS IN THIS STATE PURSUANT TO THIS CHAPTER 657
UNDER THE AUTHORITY OF THE SUPERINTENDENT OF FINANCIAL 658
INSTITUTIONS.
(3) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 660
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 661
STATE-CHARTERED, FEDERALLY INSURED CREDIT UNION. 662
(4) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 664
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 665
STATE-CHARTERED, PRIVATELY INSURED CREDIT UNION. 666
16
(5) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 668
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 669
STATE-CHARTERED CREDIT UNION WITH FIVE MILLION DOLLARS OR LESS IN 670
ASSETS.
(6) AT LEAST ONE OF THE SIX MEMBERS APPOINTED TO THE 672
COUNCIL SHALL BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A 673
STATE-CHARTERED CREDIT UNION WITH MORE THAN FIVE MILLION DOLLARS 674
IN ASSETS.
(C)(1) INITIAL APPOINTMENTS TO THE COUNCIL SHALL BE MADE 676
WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION. OF 677
THE INITIAL APPOINTMENTS, TWO SHALL EXPIRE ONE YEAR AFTER THE 678
EFFECTIVE DATE OF THIS SECTION, TWO SHALL EXPIRE TWO YEARS AFTER 679
THE EFFECTIVE DATE OF THIS SECTION, AND TWO SHALL EXPIRE THREE 680
YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION. THEREAFTER, 681
TERMS OF OFFICE SHALL BE FOR THREE YEARS. 682
(2) EACH MEMBER SHALL HOLD OFFICE FROM THE DATE OF 684
APPOINTMENT UNTIL THE END OF THE TERM FOR WHICH THE MEMBER WAS 685
APPOINTED. IN THE CASE OF A VACANCY IN THE OFFICE OF ANY MEMBER, 686
THE GOVERNOR SHALL APPOINT A SUCCESSOR, WHO SHALL HOLD OFFICE FOR 687
THE REMAINDER OF THE TERM FOR WHICH THE SUCCESSOR'S PREDECESSOR 688
WAS APPOINTED. ANY MEMBER SHALL CONTINUE IN OFFICE SUBSEQUENT TO 689
THE EXPIRATION DATE OF THE MEMBER'S TERM UNTIL THE MEMBER'S 690
SUCCESSOR TAKES OFFICE, OR UNTIL SIXTY DAYS HAS ELAPSED, 691
WHICHEVER OCCURS FIRST.
(3) IF DURING A MEMBER'S TERM ON THE COUNCIL, THE MEMBER 693
CEASES TO BE A DIRECTOR OR CHIEF EXECUTIVE OFFICER OF A CREDIT 694
UNION AS DESCRIBED IN DIVISIONS (B)(2) TO (6) OF THIS SECTION FOR 695
A PERIOD EXCEEDING NINETY DAYS, THE MEMBER SHALL BE INELIGIBLE TO 696
CONTINUE TO SERVE AS A MEMBER OF THE COUNCIL, AND THE MEMBER'S 697
POSITION ON THE COUNCIL SHALL BE CONSIDERED VACANT. 698
(D) NO PERSON APPOINTED AS A MEMBER OF THE CREDIT UNION 700
COUNCIL MAY SERVE MORE THAN TWO CONSECUTIVE FULL TERMS. HOWEVER, 701
A MEMBER MAY SERVE TWO CONSECUTIVE FULL TERMS FOLLOWING THE 702
REMAINDER OF A TERM FOR WHICH THE MEMBER WAS APPOINTED TO FILL A 703
17
VACANCY OR FOLLOWING ANY TERM FOR WHICH THE MEMBER WAS APPOINTED 704
PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. 705
(E)(1) THE COUNCIL SHALL HOLD REGULAR MEETINGS AT THE TIME 707
AND PLACE IT FIXES, BUT AT LEAST ONCE EVERY SIX MONTHS, AND SHALL 708
MEET AT ANY TIME ON CALL OF THE DEPUTY SUPERINTENDENT TO CONDUCT 709
ITS BUSINESS AND TO DECIDE BY VOTE OF THE MEMBERS THE LOCATION OF 710
FUTURE MEETINGS. EACH MEMBER SHALL BE PROVIDED WITH WRITTEN 711
NOTICE OF THE TIME AND LOCATION OF EACH COUNCIL MEETING AT LEAST 712
TWO DAYS PRIOR TO THE SCHEDULED DATE OF THE MEETING, UNLESS THE 713
COUNCIL BY RESOLUTION PROVIDES FOR A SHORTER TIME. FOUR OF THE 714
MEMBERS OF THE COUNCIL CONSTITUTE A QUORUM TO TRANSACT AND VOTE 715
ON ALL BUSINESS COMING BEFORE THE COUNCIL. 716
(2) THE COUNCIL, BY A MAJORITY VOTE OF THOSE PRESENT AT A 718
MEETING AT WHICH THERE IS A QUORUM, MAY ADOPT AND AMEND BYLAWS 719
AND RULES THE COUNCIL CONSIDERS NECESSARY AND PROPER. THE 720
COUNCIL SHALL SELECT ONE OF ITS MEMBERS AS SECRETARY, WHO SHALL 721
KEEP A RECORD OF ALL ITS PROCEEDINGS. 722
(3) NO MEMBER SHALL PARTICIPATE IN A PROCEEDING BEFORE THE 724
COUNCIL INVOLVING ANY CREDIT UNION OF WHICH THE MEMBER IS OR WAS 725
AT ANY TIME IN THE PRECEDING TWELVE MONTHS A MEMBER OF THE BOARD 726
OF DIRECTORS, AN OFFICER, AN EMPLOYEE, OR A SHAREHOLDER. A 727
MEMBER MAY REFRAIN FROM PARTICIPATING IN THE PROCEEDINGS OF THE 728
COUNCIL FOR ANY OTHER CAUSE THE MEMBER CONSIDERS SUFFICIENT. 729
(F) THE MEMBERS OF THE COUNCIL SHALL RECEIVE NO SALARY, 731
BUT THEIR EXPENSES INCURRED IN PERFORMANCE OF THEIR DUTIES SHALL 732
BE PAID FROM FUNDS APPROPRIATED FOR THAT PURPOSE. 733
(G) THE GOVERNOR MAY REMOVE ANY OF THE SIX MEMBERS 735
APPOINTED TO THE COUNCIL WHENEVER IN THE GOVERNOR'S JUDGMENT THE 736
PUBLIC INTEREST REQUIRES REMOVAL. UPON REMOVING A MEMBER OF THE 737
COUNCIL, THE GOVERNOR SHALL FILE WITH THE SUPERINTENDENT OF 738
FINANCIAL INSTITUTIONS A STATEMENT OF THE CAUSE FOR THE REMOVAL. 739
Sec. 1733.3210. (A) THE CREDIT UNION COUNCIL SHALL DO ALL 741
OF THE FOLLOWING: 742
(1) CONSULT WITH, ADVISE, AND MAKE RECOMMENDATIONS TO THE 744
18
SUPERINTENDENT OF FINANCIAL INSTITUTIONS AND THE DEPUTY 745
SUPERINTENDENT FOR CREDIT UNIONS ON MATTERS RELATING TO THE 746
BUSINESS FOR CREDIT UNIONS, INCLUDING FIELD OF MEMBERSHIP, 747
REGULATION, EXAMINATION, SAFETY AND SOUNDNESS, AND APPLICATIONS 748
OF CREDIT UNIONS UNDER THIS CHAPTER;
(2) CONSIDER AND MAKE RECOMMENDATIONS UPON ANY MATTER 750
ADDRESSED IN CHAPTERS 1733. AND 1761. OF THE REVISED CODE THAT 751
THE SUPERINTENDENT OR DEPUTY SUPERINTENDENT SUBMITS TO THE 753
COUNCIL FOR THAT PURPOSE; 754
(3) PASS UPON AND DETERMINE ANY MATTER THE SUPERINTENDENT 756
OR DEPUTY SUPERINTENDENT SUBMITS TO THE COUNCIL FOR 757
DETERMINATION;
(4) SUBMIT TO THE GOVERNOR RECOMMENDATIONS CONCERNING 759
AMENDMENTS TO THE CREDIT UNION LAWS OF THIS STATE OR RULES 760
ADOPTED PURSUANT TO THOSE LAWS THAT THE COUNCIL CONSIDERS 761
APPROPRIATE;
(5) CONSIDER AND DETERMINE WHETHER TO CONFIRM THE 763
SUPERVISORY FEES PROPOSED BY THE SUPERINTENDENT OF FINANCIAL 764
INSTITUTIONS IN ACCORDANCE WITH DIVISION (E) OF SECTION 1733.32 765
OF THE REVISED CODE. 766
(6) WITH RESPECT TO THE ADOPTION, AMENDMENT, OR RECISSION 768
OF RULES ADOPTED PURSUANT TO THIS CHAPTER, BE PRESENT AT THE 769
PUBLIC HEARING REQUIRED BY SECTION 119.03 OF THE REVISED CODE AND 770
PROVIDE RECOMMENDATIONS, ADVICE, OR ASSISTANCE AT THE PUBLIC 771
HEARING.
(B) NEITHER THE DEPUTY SUPERINTENDENT, NOR ANY OTHER 773
MEMBER OF THE COUNCIL, SHALL BE LIABLE, IN ANY CIVIL OR CRIMINAL 775
ACTION OR PROCEEDING, FOR ANY MISTAKE OF JUDGMENT OR DISCRETION 776
IN ANY ACTION TAKEN, OR IN ANY OMISSION MADE, IN GOOD FAITH BY 777
THE DEPUTY SUPERINTENDENT OR OTHER MEMBER. 778
Section 2. That existing sections 1101.15, 1155.13, 780
1163.16, 1181.16, and 1733.32 and sections 1733.329 and 1733.3210 782
of the Revised Code are hereby repealed.
Section 3. The Savings and Loan Associations and Savings 784
19
Banks Board as it existed prior to the effective date of this act 785
shall be reorganized in accordance with this act within sixty 786
days after the effective date of this act. 787
Section 4. The Credit Union Council as it existed prior to 789
the effective date of this act, within sixty days after the 790
effective date of this act, shall conclude any pending matters 791
for which the council was responsible under law prior to the 792
effective date of this act and for which the council is not 793
responsible under this act.