As Reported by the Senate Judiciary--Civil Justice Committee

124th General Assembly
Regular Session
2001-2002
Sub. H. B. No. 345


REPRESENTATIVES Womer Benjamin, Manning, Willamowski, Sulzer, Seitz, Jones, Rhine, Schmidt, Roman, Salerno, Carano, Wilson, Calvert, Barrett, Krupinski, Hollister, Latta, Coates



A BILL
To amend sections 1339.66, 1339.68, 1340.22, 1547.54,1
1548.07, 1548.071, 1548.08, 1548.11, 2106.18,2
2107.27, 2107.28, 2109.62, 2113.30, 2113.61,3
2117.25, 4503.12, 4505.06, 4505.10, 4549.08, and4
4549.41; to amend, for the purpose of adopting a5
new section number as indicated in parentheses,6
section 2106.17 (2131.12); and to enact sections7
1548.072, 2107.06, 2131.13, 2305.121, and 3923.0618
of the Revised Code relative to the valuation limit9
for termination of small trusts; transfer on death10
of a motor vehicle, watercraft, or outboard motor;11
reimbursement for payment of a decedent's debt;12
issuance of a certificate of transfer of real13
property; continuing a decedent's business after14
death; establishing an age requirement to witness a15
will; discretionary distributions by a fiduciary;16
lost, spoliated, or destroyed wills; statute of17
limitations for certain revocable trusts; and18
interest on proceeds of sickness and accident19
insurance policies due to death.20


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 1339.66, 1339.68, 1340.22, 1547.54,21
1548.07, 1548.071, 1548.08, 1548.11, 2106.18, 2107.27, 2107.28,22
2109.62, 2113.30, 2113.61, 2117.25, 4503.12, 4505.06, 4505.10,23
4549.08, and 4549.41 be amended; section 2106.17 (2131.12) be24
amended, for the purpose of adopting a new section number as25
indicated in parentheses; and sections 1548.072, 2107.06, 2131.13,26
2305.121, and 3923.061 of the Revised Code be enacted to read as27
follows:28

       Sec. 1339.66.  (A)(1) Upon the filing of a motion by a29
trustee with the court that has jurisdiction over the trust, upon30
the provision of reasonable notice to all beneficiaries who are31
known and in being and who have vested or contingent interests in32
the trust, and after holding a hearing, the court may terminate33
the trust, in whole or in part, if it determines that all of the34
following apply:35

       (a) It is no longer economically feasible to continue the36
trust;.37

       (b) The termination of the trust is for the benefit of the38
beneficiaries;.39

       (c) The termination of the trust is equitable and40
practical;.41

       (d) The current value of the trust is less than fiftyone42
hundred thousand dollars.43

       (2) The existence of a spendthrift or similar provision in a44
trust instrument or will does not preclude the termination of a45
trust pursuant to this section.46

       (B) If property is to be distributed from an estate being47
probated to a trust and the termination of the trust pursuant to48
this section does not clearly defeat the intent of the testator,49
the probate court has jurisdiction to order the outright50
distribution of the property or to make the property custodial51
property under sections 1339.31 to 1339.39 of the Revised Code. A52
probate court may so order whether the application for the order53
is made by an inter vivos trustee named in the will of the54
decedent or by a testamentary trustee.55

       Sec. 1339.68.  (A) As used in this section:56

       (1) "Disclaimant" means any person, any guardian or personal57
representative of a person or estate of a person, or any58
attorney-in-fact or agent of a person having a general or specific59
authority to act granted in a written instrument, who is any of60
the following:61

       (a) With respect to testamentary instruments and intestate62
succession, an heir, next of kin, devisee, legatee, donee, person63
succeeding to a disclaimed interest, surviving joint tenant,64
surviving tenant by the entireties, surviving tenant of a tenancy65
with a right of survivorship, beneficiary under a testamentary66
instrument, or person designated to take pursuant to a power of67
appointment exercised by a testamentary instrument;68

       (b) With respect to nontestamentary instruments, a grantee,69
donee, person succeeding to a disclaimed interest, surviving joint70
tenant, surviving tenant by the entireties, surviving tenant of a71
tenancy with a right of survivorship, beneficiary under a72
nontestamentary instrument, or person designated to take pursuant73
to a power of appointment exercised by a nontestamentary74
instrument;75

       (c) With respect to fiduciary rights, privileges, powers,76
and immunities, a fiduciary under a testamentary or77
nontestamentary instrument. This section does not authorize a78
fiduciary to disclaim the rights of beneficiaries unless the79
instrument creating the fiduciary relationship authorizes such a80
disclaimer.81

       (d) Any person entitled to take an interest in property upon82
the death of a person or upon the occurrence of any other event.83

       (2) "Property" means all forms of property, real and84
personal, tangible and intangible.85

       (B)(1) A disclaimant, other than a fiduciary under an86
instrument who is not authorized by the instrument to disclaim the87
interest of a beneficiary, may disclaim, in whole or in part, the88
succession to any property by executing and by delivering, filing,89
or recording a written disclaimer instrument in the manner90
provided in this section.91

       (2) A disclaimant who is a fiduciary under an instrument may92
disclaim, in whole or in part, any right, power, privilege, or93
immunity, by executing and by delivering, filing, or recording a94
written disclaimer instrument in the manner provided in this95
section.96

       (3) The written instrument of disclaimer shall be signed and97
acknowledged by the disclaimant and shall contain all of the98
following:99

       (a) A reference to the donative instrument;100

       (b) A description of the property, part of property, or101
interest disclaimed, and of any fiduciary right, power, privilege,102
or immunity disclaimed;103

       (c) A declaration of the disclaimer and its extent.104

       (4) The guardian of the estate of a minor or an incompetent,105
or the personal representative of a deceased person, with the106
consent of the probate division of the court of common pleas, may107
disclaim, in whole or in part, the succession to any property, or108
interest in property, that the ward, if an adult and competent, or109
the deceased, if living, might have disclaimed. The guardian or110
personal representative, or any interested person may file an111
application with the probate division of the court of common pleas112
that has jurisdiction of the estate, asking that the court order113
the guardian or personal representative to execute and deliver,114
file, or record the disclaimer on behalf of the ward or estate.115
The court shall order the guardian or personal representative to116
execute and deliver, file, or record the disclaimer if the court117
finds, upon hearing after notice to interested parties and such118
other persons as the court shall direct, that:119

       (a) It is in the best interests of those interested in the120
estate of the person and of those who will take the disclaimed121
interest;122

       (b) It would not materially, adversely affect the minor or123
incompetent, or the beneficiaries of the estate of the decedent,124
taking into consideration other available resources and the age,125
probable life expectancy, physical and mental condition, and126
present and reasonably anticipated future needs of the minor or127
incompetent or the beneficiaries of the estate of the decedent.128

       A written instrument of disclaimer ordered by the court under129
this division shall be executed and be delivered, filed, or130
recorded within the time and in the manner in which the person131
could have disclaimed if the person were living, an adult, and132
competent.133

       (C) A partial disclaimer of property that is subject to a134
burdensome interest created by the donative instrument is not135
effective unless the disclaimed property constitutes a gift that136
is separate and distinct from undisclaimed gifts.137

       (D) The disclaimant shall deliver, file, or record the138
disclaimer, or cause the same to be done, not later than nine139
months after the latest of the following dates:140

       (1) The effective date of the donative instrument if both141
the taker and the taker's interest in the property are finally142
ascertained on that date;143

       (2) The date of the occurrence of the event upon which both144
the taker and the taker's interest in the property become finally145
ascertainable;146

       (3) The date on which the disclaimant attains twenty-one147
years of age or is no longer an incompetent, without tendering or148
repaying any benefit received while the disclaimant was under149
twenty-one years of age or an incompetent, and even if a guardian150
of a minor or incompetent had filed an application pursuant to151
division (B)(4) of this section and the probate division of the152
court of common pleas involved did not consent to the guardian153
executing a disclaimer.154

       (E) No disclaimer instrument is effective under this section155
if either of the following applies under the terms of the156
disclaimer instrument:157

       (1) The disclaimant has power to revoke the disclaimer;.158

       (2) The disclaimant may transfer, or direct to be159
transferred, to self the entire legal and equitable ownership of160
the property subject to the disclaimer instrument.161

       (F)(1) Subject to division (F)(2) of this section, if the162
interest disclaimed is created by a nontestamentary instrument,163
the disclaimer instrument shall be delivered personally or by164
certified mail to the trustee or other person who has legal title165
to, or possession of, the property disclaimed.166

       (2) If the interest disclaimed is created by a testamentary167
instrument, by intestate succession, or by a transfer on death168
deed pursuant to section 5302.22 of the Revised Code, or by a169
certificate of title to a motor vehicle, watercraft, or outboard170
motor that evidences ownership of the motor vehicle, watercraft,171
or outboard motor that is transferable on death pursuant to172
section 2131.13 of the Revised Code, the disclaimer instrument173
shall be filed in the probate division of the court of common174
pleas in the county in which proceedings for the administration of175
the decedent's estate have been commenced, and an executed copy of176
the disclaimer instrument shall be delivered personally or by177
certified mail to the personal representative of the decedent's178
estate.179

       (3) If no proceedings for the administration of the180
decedent's estate have been commenced, the disclaimer instrument181
shall be filed in the probate division of the court of common182
pleas in the county in which proceedings for the administration of183
the decedent's estate might be commenced according to law. The184
disclaimer instrument shall be filed and indexed, and fees185
charged, in the same manner as provided by law for an application186
to be appointed as personal representative to administer the187
decedent's estate. The disclaimer is effective whether or not188
proceedings thereafter are commenced to administer the decedent's189
estate. If proceedings thereafter are commenced for the190
administration of the decedent's estate, they shall be filed191
under, or consolidated with, the case number assigned to the192
disclaimer instrument.193

       (4) If an interest in real estate is disclaimed, an executed194
copy of the disclaimer instrument also shall be recorded in the195
office of the recorder of the county in which the real estate is196
located. The disclaimer instrument shall include a description of197
the real estate with sufficient certainty to identify it, and198
shall contain a reference to the record of the instrument that199
created the interest disclaimed. If title to the real estate is200
registered under Chapters 5309. and 5310. of the Revised Code, the201
disclaimer interest shall be entered as a memorial on the last202
certificate of title. A spouse of a disclaimant has no dower or203
other interest in the real estate disclaimed.204

       (G) Unless the donative instrument expressly provides that,205
if there is a disclaimer, there shall not be any acceleration of206
remainders or other interests, the property, part of property, or207
interest in property disclaimed, and any future interest that is208
to take effect in possession or enjoyment at or after the209
termination of the interest disclaimed, shall descend, be210
distributed, or otherwise be disposed of, and shall be211
accelerated, in the following manner:212

       (1) If intestate or testate succession is disclaimed, as if213
the disclaimant had predeceased the decedent;214

       (2) If the disclaimant is one designated to take pursuant to215
a power of appointment exercised by a testamentary instrument, as216
if the disclaimant had predeceased the donee of the power;217

       (3) If the donative instrument is a nontestamentary218
instrument, as if the disclaimant had died before the effective219
date of the nontestamentary instrument;220

       (4) If the disclaimer is of a fiduciary right, power,221
privilege, or immunity, as if the right, power, privilege, or222
immunity was never in the donative instrument.223

       (H) A disclaimer pursuant to this section is effective as224
of, and relates back for all purposes to, the date upon which the225
taker and the taker's interest have been finally ascertained.226

       (I) A disclaimant who has a present and future interest in227
property, and disclaims the disclaimant's present interest in228
whole or in part, is considered to have disclaimed the229
disclaimant's future interest to the same extent, unless a230
contrary intention appears in the disclaimer instrument or the231
donative instrument. A disclaimant is not precluded from232
receiving, as an alternative taker, a beneficial interest in the233
property disclaimed, unless a contrary intention appears in the234
disclaimer instrument or in the donative instrument.235

       (J) The disclaimant's right to disclaim under this section236
is barred if, before the expiration of the period within which the237
disclaimant may disclaim the interest, the disclaimant does any of238
the following:239

       (1) Assigns, conveys, encumbers, pledges, or transfers, or240
contracts to assign, convey, encumber, pledge, or transfer, the241
property or any interest in it;242

       (2) Waives in writing the disclaimant's right to disclaim243
and executes and delivers, files, or records the waiver in the244
manner provided in this section for a disclaimer instrument;245

       (3) Accepts the property or an interest in it;246

       (4) Permits or suffers a sale or other disposition of the247
property pursuant to judicial action against the disclaimant.248

       (K) A fiduciary's application for appointment or assumption249
of duties as a fiduciary does not waive or bar the disclaimant's250
right to disclaim a right, power, privilege, or immunity.251

       (L) The right to disclaim under this section exists252
irrespective of any limitation on the interest of the disclaimant253
in the nature of a spendthrift provision or similar restriction.254

       (M) A disclaimer instrument or written waiver of the right255
to disclaim that has been executed and delivered, filed, or256
recorded as required by this section is final and binding upon all257
persons.258

       (N) The right to disclaim and the procedures for disclaimer259
established by this section are in addition to, and do not exclude260
or abridge, any other rights or procedures existing under any261
other section of the Revised Code or at common law to assign,262
convey, release, refuse to accept, renounce, waive, or disclaim263
property.264

       (O)(1) No person is liable for distributing or disposing of265
property in a manner inconsistent with the terms of a valid266
disclaimer if the distribution or disposition is otherwise proper267
and the person has no actual knowledge of the disclaimer.268

       (2) No person is liable for distributing or disposing of269
property in reliance upon the terms of a disclaimer that is270
invalid because the right of disclaimer has been waived or barred271
if the distribution or disposition is otherwise proper and the272
person has no actual knowledge of the facts that constitute a273
waiver or bar to the right to disclaim.274

       (P)(1) A disclaimant may disclaim pursuant to this section275
any interest in property that is in existence on September 27,276
1976, if either the interest in the property or the taker of the277
interest in the property is not finally ascertained on that date.278

       (2) No disclaimer executed pursuant to this section destroys279
or diminishes an interest in property that exists on September 27,280
1976, in any person other than the disclaimant.281

       Sec. 1340.22.  (A) Unless the governing instrument282
conferring the powers specifically refers to this section and283
states that this section does not apply and except as provided in284
divisions (B), (C), and (D) of this section, any of the following285
powers conferred upon a fiduciary by the governing instrument286
cannot be exercised by the fiduciary:287

       (1) The power to make any discretionary distribution of288
either principal or income to or for the benefit of the fiduciary289
in the fiduciary's individual capacity;290

       (2) The power to make any discretionary distribution of291
either principal or income to satisfy any of the fiduciary's legal292
obligations in the fiduciary's individual capacity for support or293
other purposes;294

       (3) The power to make any discretionary distribution of295
either principal or income to or for the benefit of one or more296
beneficiaries to the extent that the fiduciary would or could297
receive a similar distribution in the fiduciary's individual298
capacity under any governing instrument from the beneficiary or299
beneficiaries acting as a fiduciary;300

       (4) The power to make any discretionary distribution of301
either principal or income to or for the benefit of one or more302
beneficiaries who possess both the right to remove the fiduciary303
and the right to appoint a successor fiduciary that may include304
but is not limited to the beneficiary, any of the beneficiaries,305
or any related or subordinate person, within the meaning of306
section 672(c) of the "Internal Revenue Code of 1986," 100 Stat.307
2085, 26 U.S.C. 672(c), with respect to the beneficiary or any of308
the beneficiaries, if the successor fiduciary has been appointed309
by the exercise of both of those rights by the beneficiary or310
beneficiaries.311

       (B)(1) If division (A)(1), (3), or (4) of this section312
prohibits a fiduciary from exercising any power conferred by the313
governing instrument, the fiduciary, notwithstanding division314
(A)(1), (3), or (4) of this section, may exercise the power to the315
extent set forth in the governing instrument, provided that the316
exercise of that power, in all events, shall be limited to an317
ascertainable standard.318

       (2) Any power conferred upon a fiduciary that permits the319
fiduciary to make discretionary distributions of either principal320
or income and that is expressed in terms of a beneficiary's321
health, education, support, comfort, care, comfort and support,322
support in reasonable comfort, support in accustomed manner of323
living, maintenance, maintenance in health and reasonable comfort,324
or any combination of those factors, is a power conferred upon the325
fiduciary, the exercise of which is reasonably measurable in terms326
of, and limited by, an ascertainable standard related to the327
health, education, support, and maintenance of the beneficiary.328

       (C) Any fiduciary who is authorized to exercise one or more329
powers set forth in a governing instrument may exercise any of330
those powers that the fiduciary is not prohibited from exercising331
because of the operation of division (A) of this section even332
though one or more other fiduciaries under the governing333
instrument is prohibited from exercising the power because of the334
operation of division (A) of this section.335

       (D) Any power conferred upon a fiduciary that the fiduciary336
cannot exercise because of the operation of division (A) of this337
section may be exercised by a special fiduciary appointed by a338
court of competent jurisdiction. Upon the application of any339
party in interest, the appropriate probate court or general340
division of the appropriate court of common pleas may appoint a341
special fiduciary. Upon the appointment of a special fiduciary342
under this division, the special fiduciary is qualified to343
exercise any power set forth in the governing instrument during344
the period of time that the court designates.345

       (E) This section does not apply to any of the following:346

       (1) Any purely discretionary power to distribute either347
principal or income to or for the benefit of a beneficiary, other348
than a beneficiary who is also a fiduciary, that is exercisable in349
a fiduciary capacity in the sole and absolute discretion of the350
fiduciary and without any other direction or limitation as to its351
exercise or use set forth in the governing instrument;352

       (2) Any power of appointment or withdrawal that specifically353
is granted in the governing instrument to a beneficiary and that354
is exercisable in an individual capacity but not in a fiduciary355
capacity;356

       (3) Any trust during the time that the trust is revocable or357
amendable by its settlor;358

       (4) Any power held by a decedent's or settlor's spouse who359
is the trustee under a decedent's trust for which a marital360
deduction for estate tax purposes has been allowed, except a trust361
or portion of a trust regarding which a special election for362
qualified terminable interest property has been made as provided363
in section 2652(a)(3) of the "Internal Revenue Code of 1986," 100364
Stat. 2085, 26 U.S.C. 2652(a)(3);365

       (5)(a) Subject to divisions (E)(5)(b) and (c) of this366
section, any irrevocable trust created under a governing367
instrument executed before the expiration of three years after the368
effective date of this amendment, if all of the parties in369
interest elect affirmatively not to be subject to the application370
of this section through a written instrument delivered to the371
fiduciary.372

       (b) In the case of a testamentary trust, the election373
described in division (E)(5)(a) of this section shall be filed374
with the probate court in which the will was admitted to probate.375

       (c) All of the parties in interest shall make the election376
described in division (E)(5)(a) of this section on or before the377
later of the expiration of three years after the effective date of378
this amendment or three years after the date on which the trust379
becomes irrevocable.380

       (d) As used in division (E)(5) of this section, "party in381
interest" does not include a contingent remainder beneficiary and382
means any of the following:383

       (i) Each fiduciary then serving;384

       (ii) Each current beneficiary then in existence or, if that385
beneficiary has not attained the age of majority or otherwise is386
incapacitated, the beneficiary's legal representative under387
applicable law or the attorney in fact of the current beneficiary388
under a durable power of attorney that is sufficient to grant the389
authority under division (E)(5) of this section;390

       (iii) Each remainder beneficiary then in existence or, if391
that remainder beneficiary has not attained the age of majority or392
otherwise is incapacitated, the remainder beneficiary's legal393
representative under applicable law or the attorney in fact of the394
remainder beneficiary under a durable power of attorney that is395
sufficient to grant the authority under division (E)(5) of this396
section.397

       Sec. 1547.54.  (A)(1) The owner of every watercraft398
requiring registration under this chapter shall file an399
application for a triennial registration certificate with the400
chief of the division of watercraft on forms that shall be401
provided by the chief or by an electronic means approved by the402
chief. The application shall be signed by the following:403

       (a) If the watercraft is owned by two persons under joint404
ownership with right of survivorship established under section405
2106.172131.12 of the Revised Code, by both of those persons as406
owners of the watercraft. The signatures may be done by407
electronic signature if the owners themselves are renewing the408
registration and there are no changes in the registration409
information since the issuance of the immediately preceding410
registration certificate. In all other instances, the signatures411
mustshall be done manually.412

       (b) If the watercraft is owned by a minor, by the minor and413
a parent or legal guardian. The signatures may be done by414
electronic signature if the parent or legal guardian and the minor415
themselves are renewing the registration and there are no changes416
in the registration information since the issuance of the417
immediately preceding registration certificate. In all other418
instances, the signatures mustshall be done manually.419

       (c) In all other cases, by the owner of the watercraft. The420
signature may be done by electronic signature if the owner him or421
herself is renewing the registration and there are no changes in422
the registration information since the issuance of the immediately423
preceding registration certificate. In all other instances, the424
signatures mustshall be done manually.425

       (2) An application for a triennial registration of a426
watercraft filed under division (A)(1) of this section shall be427
accompanied by the following fee:428

       (a) For canoes, kayaks, rowboats, and inflatable watercraft,429
twelve dollars;430

       (b) For class A watercraft, including motorized canoes,431
thirty dollars;432

       (c) For class 1 watercraft, forty-five dollars;433

       (d) For class 2 watercraft, sixty dollars;434

       (e) For class 3 watercraft, seventy-five dollars;435

       (f) For class 4 watercraft, ninety dollars.436

       (3) For the purpose of registration, any watercraft operated437
by means of power, sail, or any other mechanical or electrical438
means of propulsion, except motorized canoes, shall be registered439
by length as prescribed in this section.440

       (4) If an application for registration is filed by two441
persons as owners under division (A)(1)(a) of this section, the442
person who is listed first on the title shall serve as and perform443
the duties of the "owner" and shall be considered the person "in444
whose name the watercraft is registered" for purposes of divisions445
(B) to (Q) of this section and for purposes of all other sections446
in this chapter.447

       (B) All registration certificates are valid for three years448
and are renewable on a triennial basis unless sooner terminated or449
discontinued in accordance with this chapter. The renewal date450
shall be printed on the registration certificate. A registration451
certificate may be renewed by the owner in the manner prescribed452
by the chief. All fees shall be charged according to a proration453
of the time remaining in the registration cycle to the nearest454
year.455

       (C) In addition to the fees set forth in this section, the456
chief, or any authorized agent, shall charge an additional fee of457
three dollars for any registration certificate the chief or458
authorized agent issues. When the registration certificate is459
issued by an authorized agent, the additional fee of three dollars460
shall be retained by the issuing agent. When the registration461
certificate is issued by the chief, the additional fee of three462
dollars shall be deposited to the credit of the waterways safety463
fund established in section 1547.75 of the Revised Code.464

       (D) Upon receipt of the application in approved form, the465
chief shall enter the same upon the records of the office of the466
division, assign a number to the watercraft if a number is467
required under section 1547.53 of the Revised Code, and issue to468
the applicant a registration certificate. If a number is assigned469
by the chief, it shall be set forth on the certificate. The470
registration certificate shall be on the watercraft for which it471
is issued and available at all times for inspection whenever the472
watercraft is in operation, except that livery operators may473
retain the registration certificate at the livery where it shall474
remain available for inspection at all times.475

       (E) No person shall issue or be issued a registration476
certificate for a watercraft that is required to be issued a477
certificate of title under Chapter 1548. of the Revised Code478
except upon presentation of a certificate of title for the479
watercraft as provided in that chapter, proof of current480
documentation by the United States coast guard, a renewal481
registration form provided by the division of watercraft, or a482
certificate of registration issued under this section that has483
expired if there is no change in the ownership or description of484
the watercraft.485

       (F) Whenever the ownership of a watercraft changes, a new486
application form together with the prescribed fee shall be filed487
with the chief or the chief's agent and a new registration488
certificate shall be issued. The application shall be signed489
manually by the person or persons specified in division (A)(1)(a)490
to (c) of this section and shall be accompanied by a two-dollar491
transfer fee. Any remaining time on the registration shall be492
transferred. An authorized agent of the chief shall charge an493
additional fee of three dollars, which shall be retained by the494
issuing agent. If the certificate is issued by the chief, an495
additional fee of three dollars for each certificate issued shall496
be collected.497

       (G) If an agency of the United States has in force an498
overall system of identification numbering for watercraft or499
certain types of watercraft within the United States, the500
numbering system employed by the division shall be in conformity501
with that system.502

       (H) The chief may assign any registration certificates to503
any authorized agent for the assignment thereofof the504
registration certificates. If a person accepts that505
authorization, the person may be assigned a block of numbers and506
certificates therefor that upon assignment, in conformity with507
this chapter and Chapter 1548. of the Revised Code and with rules508
of the division, shall be valid as if assigned directly by the509
division. Any person so designated as an agent by the chief shall510
post with the division security as may be required by the director511
of natural resources. The chief may issue an order temporarily or512
permanently restricting or suspending an agent's authorization513
without a hearing if the chief finds that the agent has violated514
this chapter or Chapter 1548. of the Revised Code, rules adopted515
under them, or any agreements prescribed by the chief.516

       (I) All records of the division made or kept pursuant to517
this section shall be public records. Those records shall be518
available for inspection at reasonable hours and in a manner519
compatible with normal operations of the division.520

       (J) The owner shall furnish the division notice within521
fifteen days of the following:522

       (1) The transfer, other than through the creation of a523
security interest in any watercraft, of all or any part of the524
owner's interest or, if the watercraft is owned by two persons525
under joint ownership with right of survivorship established under526
section 2106.172131.12 of the Revised Code, of all or any part of527
the joint interest of either of the two persons. The transfer528
shall not terminate the registration certificate.529

       (2) Any change in the address appearing on the certificate530
and, as a part of the notification, shall furnish the chief with531
the owner's new address;532

       (3) The destruction or abandonment of the watercraft.533

       (K) The chief may issue duplicate registration certificates534
or duplicate tags to owners of currently registered watercraft,535
the fee for which shall be four dollars.536

       (L) If the chief finds that a registration certificate537
previously issued to an owner is in error to a degree that would538
impair its basic purpose and use, the chief may issue a corrected539
certificate to the owner without charge.540

       (M) No authorized agent shall issue and no person shall541
receive or accept from an authorized agent a registration542
certificate assigned to the authorized agent under division (H) of543
this section unless the exact month, day, and year of issue are544
plainly written thereonon the certificate by the agent.545
Certificates issued with incorrect dates of issue are void from546
the time they are issued.547

       (N) The chief, in accordance with Chapter 119. of the548
Revised Code, shall adopt rules governing the renewal of549
watercraft registrations by electronic means.550

       (O) As used in this section:551

       (1) "Disabled veteran" means a person who is included in552
either of the following categories:553

       (a) Because of a service-connected disability, has been or554
is awarded funds for the purchase of a motor vehicle under the555
"Disabled Veterans' and Servicemen's Automobile Assistance Act of556
1970," 84 Stat. 1998, 38 U.S.C. 1901, and amendments thereto;557

       (b) Has a service-connected disability rated at one hundred558
per cent by the veterans administration.559

       (2) "Prisoner of war" means any regularly appointed,560
enrolled, enlisted, or inducted member of the military forces of561
the United States who was captured, separated, and incarcerated by562
an enemy of the United States at any time, and any regularly563
appointed, enrolled, or enlisted member of the military forces of564
Great Britain, France, Australia, Belgium, Brazil, Canada, China,565
Denmark, Greece, the Netherlands, New Zealand, Norway, Poland,566
South Africa, or the republics formerly associated with the Union567
of Soviet Socialist Republics or Yugoslavia who was a citizen of568
the United States at the time of the appointment, enrollment, or569
enlistment, and was captured, separated, and incarcerated by an570
enemy of this country during World War II.571

       (P) Any disabled veteran, congressional medal of honor572
awardee, or prisoner of war may apply to the chief for a573
certificate of registration, or for a renewal of the certificate574
of registration, without the payment of any fee required by this575
section. The application for a certificate of registration shall576
be accompanied by evidence of disability or by documentary577
evidence in support of a congressional medal of honor that the578
chief requires by rule. The application for a certificate of579
registration by any person who has been a prisoner of war shall be580
accompanied by written evidence in the form of a record of581
separation, a letter from one of the armed forces of a country582
listed in division (O)(2) of this section, or other evidence that583
the chief may require by rule, that the person was honorably584
discharged or is currently residing in this state on active duty585
with one of the branches of the armed forces of the United States,586
or was a prisoner of war and was honorably discharged or received587
an equivalent discharge or release from one of the armed forces of588
a country listed in division (O)(2) of this section.589

       (Q) Annually by the fifteenth day of January, the director590
of natural resources shall determine the amount of fees that would591
have been collected in the prior calendar year for each592
certificate of registration issued or renewed pursuant to division593
(P) of this section and shall certify the total amount of foregone594
revenue to the director of budget and management for595
reimbursement. The director of budget and management shall596
transfer the amount certified from the general revenue fund to the597
waterways safety fund created pursuant to section 1547.75 of the598
Revised Code.599

       Sec. 1548.07.  (A) An application for a certificate of title600
shall be sworn to before a notary public or other officer601
empowered to administer oaths by the lawful owner or purchaser of602
the watercraft or outboard motor and shall contain the following603
information in the form and together with any other information604
that the chief of the division of watercraft may require:605

       (1) Name, address, and social security number or employer's606
tax identification number of the applicant;607

       (2) Statement of how the watercraft or outboard motor was608
acquired;609

       (3) Name and address of the previous owner;610

       (4) A statement of all liens, mortgages, or other611
encumbrances on the watercraft or outboard motor, including a612
description of the nature and amount of each lien, mortgage, or613
encumbrance, and the name and address of each holder thereofof614
the lien, mortgage, or encumbrance;615

       (5) If there are no outstanding liens, mortgages, or other616
encumbrances, a statement of that fact;617

       (6) A description of the watercraft, including the make,618
year, length, series or model, if any, body type, hull619
identification number or hull identification number serial number,620
and make, manufacturer's serial number, and horsepower of any621
inboard motor or motors; or a description of the outboard motor,622
including the make, year, series or model, if any, manufacturer's623
serial number, and horsepower;624

       (G)(7) The purchase price, trade-in allowed, and amount of625
sales or use tax paid under Chapter 5739. or 5741. of the Revised626
Code.627

       (B) If the application is made by two persons regarding a628
watercraft or outboard motor in which they wish to establish joint629
ownership with right of survivorship, they may do so as provided630
in section 2106.172131.12 of the Revised Code.631

       (C) If the applicant wishes to designate a watercraft or632
outboard motor in beneficiary form, the applicant may do so as633
provided in section 2131.13 of the Revised Code.634

       (D) If the watercraft or outboard motor contains a permanent635
identification number placed thereonon the watercraft or outboard636
motor by the manufacturer, this number shall be used as the serial637
number or hull identification number. If there is no638
manufacturer's identification number, or if the manufacturer's639
identification number has been removed or obliterated, the chief,640
upon receipt of a prescribed application and proof of ownership,641
may assign an identification number for the watercraft or outboard642
motor, and this number shall be permanently affixed or imprinted643
by the applicant, at the place and in the manner designated by the644
chief, upon the watercraft or outboard motor for which it is645
assigned.646

       Sec. 1548.071.  Any two persons may establish in accordance647
with section 2106.172131.12 of the Revised Code joint ownership648
with right of survivorship in a watercraft or outboard motor for649
which a certificate of title is required under this chapter and650
that one or both of them owns. Two persons who establish joint651
ownership with right of survivorship in a watercraft or outboard652
motor in accordance with section 2106.172131.12 of the Revised653
Code may terminate the joint ownership with right of survivorship654
by applying for a title in accordance with Chapter 1548. of the655
Revised Codethis chapter.656

       Sec. 1548.072. Any person who owns a watercraft or outboard657
motor for which a certificate of title is required under this658
chapter may establish ownership of the watercraft or outboard659
motor that is transferable on death by designating the watercraft660
or outboard motor in beneficiary form in accordance with section661
2131.13 of the Revised Code. Any person who establishes ownership662
of a watercraft or outboard motor that is transferable on death in663
accordance with section 2131.13 of the Revised Code may terminate664
that type of ownership or change the designation of the665
transfer-on-death beneficiary or beneficiaries by applying for a666
certificate of title in accordance with this chapter.667

       Sec. 1548.08.  When the clerk of a court of common pleas668
issues a physical certificate of title for a watercraft or 669
outboard motor, the clerk shall issue it over the clerk's670
official seal. All physical certificates of title to watercraft671
or outboard motors shall contain the information required in672
the application for them as prescribed by section 1548.07 of673
the Revised Code, as well as spaces for the dates of notation674
and cancellation of each lien, mortgage, or encumbrance, over675
the signature of the clerk. If any certificate of title is676
issued for a watercraft or outboard motor in which two persons677
are establishing joint ownership with right of survivorship678
under section 2106.172131.12 of the Revised Code, the 679
certificate, in addition to the information required by this 680
section, shall show that the two persons have established joint 681
ownership with right of survivorship in the watercraft or682
outboard motor. If the certificate of title is issued for a683
watercraft or outboard motor that is designated in beneficiary684
form under section 2131.13 of the Revised Code, in addition to the685
information required by this section, the certificate shall show686
that the present owner of the watercraft or outboard motor has687
designated a specified transfer-on-death beneficiary or688
beneficiaries who will take ownership of the watercraft or689
outboard motor at the death of the present owner in accordance690
with section 2131.13 of the Revised Code.691

       An assignment of certificate of title before a notary public 692
or other officer empowered to administer oaths shall appear on693
the reverse side of each physical certificate of title in the694
form to be prescribed by the chief of the division of695
watercraft. The assignment form shall include a warranty that696
the signer is the owner of the watercraft or outboard motor and697
that there are no mortgages, liens, or encumbrances on the698
watercraft or outboard motor except asthose that are noted on699
the face of the certificate of title.700

       Sec. 1548.11.  (A) In the event of the transfer of 701
ownership of a watercraft or outboard motor by operation of law, 702
as upon inheritance, devise, bequest, order in bankruptcy, 703
insolvency, replevin, or execution of sale, or whenever the 704
engine of a watercraft is replaced by another engine, or whenever705
a watercraft or outboard motor is sold to satisfy storage or 706
repair charges, or repossession is had upon default in 707
performance of the terms of a security agreement as provided in 708
Chapter 1309. of the Revised Code, a clerk of a court of common709
pleas, upon the surrender of the prior certificate of title or710
the manufacturer's or importer's certificate, or, when that is711
not possible, upon presentation of satisfactory proof to the712
clerk of ownership and rights of possession to the watercraft or713
outboard motor, and upon payment of the fee prescribed in714
section 1548.10 of the Revised Code and presentation of an715
application for certificate of title, may issue to the applicant716
a certificate of title to the watercraft or outboard motor. Only717
an affidavit by the person or agent of the person to whom718
possession of the watercraft or outboard motor has passed,719
setting forth the facts entitling the person to possession and 720
ownership, together with a copy of the journal entry, court721
order, or instrument upon which the claim of possession and722
ownership is founded, is satisfactory proof of ownership and723
right of possession. If the applicant cannot produce such proof724
of ownership, the applicant may apply directly to the chief of725
the division of watercraft and submit such evidence as the726
applicant has, and the chief, if the chief finds the evidence727
sufficient, may authorize the clerk to issue a certificate of728
title. If, from the records in the office of the clerk, there729
appears to be any lien on the watercraft or outboard motor, the730
certificate of title shall contain a statement of the lien731
unless the application is accompanied by proper evidence of 732
its extinction.733

       (B) Upon the death of one of the persons who have 734
established joint ownership with right of survivorship under 735
section 2106.172131.12 of the Revised Code in a watercraft or736
outboard motor and the presentation to the clerk of the title and737
the certificate of death of the deceased person, the clerk shall 738
enter into the records the transfer of the watercraft or739
outboard motor to the surviving person, and the title to the740
watercraft or outboard motor immediately passes to the surviving741
person. The transfer does not affect any liens on the watercraft742
or outboard motor.743

       (C) The clerk shall transfer a decedent's interest in one 744
watercraft, one outboard motor, or one of each to the decedent's 745
surviving spouse as provided in section 2106.19 of the Revised 746
Code.747

       (D) Upon the death of an owner of a watercraft or outboard748
motor designated in beneficiary form under section 2131.13 of the749
Revised Code, upon application of the transfer-on-death750
beneficiary or beneficiaries designated pursuant to that section,751
and upon presentation to the clerk of the certificate of title and752
the certificate of death of the deceased owner, the clerk shall753
transfer the watercraft or outboard motor and issue a certificate754
of title to the transfer-on-death beneficiary or beneficiaries.755
The transfer does not affect any liens upon any watercraft or756
outboard motor so transferred.757

       Sec. 2106.18.  (A) Upon the death of a married resident who758
owned at least one automobile at the time of death, the interest759
of the deceased spouse in up to two automobiles that are not760
transferred to the surviving spouse due to joint ownership with761
right of survivorship established under section 2106.172131.12 of762
the Revised Code, that are not transferred to a transfer-on-death763
beneficiary or beneficiaries designated under section 2131.13 of764
the Revised Code, and that are not otherwise specifically disposed765
of by testamentary disposition, may be selected by the surviving766
spouse. This interest shall immediately pass to the surviving767
spouse upon transfer of the title or titles in accordance with768
section 4505.10 of the Revised Code. The sum total of the values769
of the automobiles selected by a surviving spouse under this770
division, as specified in the affidavit that the surviving spouse771
executes pursuant to division (B) of section 4505.10 of the772
Revised Code, shall not exceed forty thousand dollars. Each773
automobile that passes to a surviving spouse under this division774
shall not be considered an estate asset and shall not be included775
in the estate inventory.776

       (B) The executor or administrator, with the approval of the777
probate court, may transfer title to an automobile owned by the778
decedent to any of the following:779

       (1) The surviving spouse, when the automobile is purchased780
by the surviving spouse pursuant to section 2106.16 of the Revised781
Code;782

       (2) A distributee;783

       (3) A purchaser.784

       (C) The executor or administrator may transfer title to an785
automobile owned by the decedent without the approval of the786
probate court to any of the following:787

       (1) A legatee entitled to the automobile under the terms of788
the will;789

       (2) A distributee if the distribution of the automobile is790
made without court order pursuant to section 2113.55 of the791
Revised Code;792

       (3) A purchaser if the sale of the automobile is made793
pursuant to section 2113.39 of the Revised Code.794

       (D) As used in division (A) of this section, "automobile"795
includes a truck if the truck was used as a method of conveyance796
by the deceased spouse or the deceased spouse's family when the797
deceased spouse was alive.798

       Sec. 2107.06.  No person under eighteen years of age shall799
witness a will executed pursuant to section 2107.03 of the Revised800
Code or an agreement to make a will or to make a devise or bequest801
by will pursuant to section 2107.04 of the Revised Code.802

       Sec. 2107.27. (A) When application is made to the probate803
court to admit to probate a will that has been lost, spoliated, or804
destroyed, the party seeking to prove the will shall give a805
written notice by certified mail to the surviving spouse, to the806
next of kin of the testator, and to all persons whose interest it807
may be to resist the probatewho would be entitled to inherit from808
the testator under Chapter 2105. of the Revised Code if the809
testator had died intestate, to all legatees and devisees that are810
named in the will, and to all legatees and devisees that are named811
in the most recent will prior to the lost, spoliated, or destroyed812
will that is known to the applicant.813

       (B) In suchthe cases described in division (A) of this814
section, the courtproponents and opponents of the will shall815
cause the witnesses to the will, and any other witnesses that a816
person interested in havinghave relevant and material knowledge817
about the will admitted to probate desires, to have appear, to818
come before the court to testify. The witnesses shall be examined819
by the probate judge, and their testimony shall be reduced to820
writing and then filed in the records of the probate court821
pertaining to the testator's estate. WhenIf any witnesses reside822
out of its jurisdiction, or reside within its jurisdiction but are823
infirm or unable to attend, the probate court may order their824
testimony to be taken and reduced to writing by some competent825
person, which. The testimony shall be filed in suchthe records of826
the probate court pertaining to the testator's estate.827

       (C) If upon such proof, the court is satisfied that the will828
was executed in the manner provided by the law in force at the829
time of its execution, that its contents are substantially proved,830
that it was unrevoked at the death of the testator, and has been831
lost, spoliated, or destroyed since his death, since he became832
incapable of making a will by reason of insanity, or before the833
death of the testator if his lack of knowledge of the loss,834
spoliation, or destruction can be proved by clear and convincing835
testimonyfinds that the requirements of section 2107.26 of the836
Revised Code have been met, the probate court shall find and837
establish the contents of the will as near as can be ascertained838
and cause them and the testimony taken in the case to be recorded839
in the probate court. The840

       The contents of the will shall be as effectual for all841
purposes as if the original will had been admitted to probate and842
record.843

       Sec. 2107.28.  If a will is lost, spoliated, destroyed,844
mislaid, or stolen, after it has been admitted to probate but845
before it has been recorded, upon notice being given,to the846
persons as provided by section 2107.27 of the Revised Code, to847
persons whose interest it may be to resist the probate and record848
of such will the probate court may hear testimony, and if. If the849
court is satisfied that the contents of the will have been850
substantially proved, the court may record suchthe will as thus851
proven, which. The record shall have all the effecteffects of a852
record of the original will.853

       Sec. 2109.62.  (A)(1) Upon the filing of a motion by a854
trustee with the court that has jurisdiction over the trust, upon855
the provision of reasonable notice to all beneficiaries who are856
known and in being and who have vested or contingent interests in857
the trust, and after holding a hearing, the court may terminate858
the trust, in whole or in part, if it determines that all of the859
following apply:860

       (a) It is no longer economically feasible to continue the861
trust;.862

       (b) The termination of the trust is for the benefit of the863
beneficiaries;.864

       (c) The termination of the trust is equitable and865
practical;.866

       (d) The current value of the trust is less than fiftyone867
hundred thousand dollars.868

       (2) The existence of a spendthrift or similar provision in a869
trust instrument or will does not preclude the termination of a870
trust pursuant to this section.871

       (B) If property is to be distributed from an estate being872
probated to a trust and the termination of the trust pursuant to873
this section does not clearly defeat the intent of the testator,874
the probate court has jurisdiction to order the outright875
distribution of the property or to make the property custodial876
property under sections 1339.31 to 1339.39 of the Revised Code. A877
probate court may so order whether the application for the order878
is made by an inter vivos trustee named in the will of the879
decedent or by a testamentary trustee.880

       Sec. 2113.30. (A) Except as otherwise directed by the881
decedent in histhe decedent's last will and testament, an882
executor or administrator may, without personal liability for883
losses incurred, may continue the decedent's business during one884
monthfour months next following the date of the appointment of885
suchthat executor or administrator, unless the probate court886
directs otherwise, and for suchany further time asthat the court887
may authorize onupon a hearing and after notice to the surviving888
spouse and distributees. In either case, no debts incurred or889
contracts entered into shall involve the estate beyond the assets890
used in suchthat business immediately prior to the death of the891
decedent without first obtaining the approval of the court first892
obtained. During the time the business is continued, the executor893
or administrator shall file monthly reports in the court, setting894
forth the receipts and expenses of the business for the preceding895
month and suchany other pertinent information asthat the court896
may require. The executor or administrator may not bind the897
estate without court approval beyond the period during which the898
business is continued.899

       (B) As used in this section, "decedent's business" means a900
business that is owned by the decedent as a sole proprietor at the901
time of the decedent's death. "Decedent's business" does not902
include a business that is owned in whole or in part by the903
decedent as a shareholder of a corporation, a member of a limited904
liability company, or a partner of a partnership, or under any905
other form of ownership other than a sole proprietorship.906

       Sec. 2113.61.  (A)(1) When real property passes by the laws907
of intestate succession or under a will, the administrator or908
executor shall file in probate court, at any time after the filing909
of an inventory that includes the real property but prior to the910
filing of the administrator's or executor's final account, an911
application requesting the court to issue a certificate of912
transfer as to the real property. Real property sold by an913
executor or administrator or land registered under Chapters 5309.914
and 5310. of the Revised Code is excepted from the application915
requirement. Cases in which an order has been made under section916
2113.03 of the Revised Code relieving an estate from917
administration and in which the order directing transfer of real918
property to the person entitled to it may be substituted for the919
certificate of transfer also are excepted from the application920
requirement.921

       (2) In accordance with division (C)(3)(b) of section922
2113.031 of the Revised Code, an application for a certificate of923
transfer of an interest in real property included in the assets of924
the decedent's estate shall accompany an application for a summary925
release from administration under that section. This section926
applies to the application for and the issuance of the requested927
certificate of transfer except to the extent that the probate928
court determines that the nature of any of the provisions of this929
section is inconsistent with the nature of a grant of a summary930
release from administration.931

       (B) Subject to division (A)(2) of this section, the932
application for a certificate of transfer shall contain all of the933
following:934

       (1) The name, place of residence at death, and date of death935
of the decedent;936

       (2) A statement whether the decedent died testate or937
intestate;938

       (3) The fact and date of the filing and probate of the will,939
if applicable, and the fact and date of the appointment of the940
administrator or executor;941

       (4) A description of each parcel of real property situated942
in this state that is owned by the decedent at the time of death;943

       (5) Insofar as they can be ascertained, the names, ages,944
places of residence, and relationship to the decedent of the945
persons to whom each parcel of real property described in division946
(B)(4) of this section passed by descent or devise;947

       (6) A statement that all the known debts of the decedent's948
estate have been paid or secured to be paid, or that sufficient949
other assets are in hand to complete the payment of those debts;950

       (7) Other pertinent information that the court requires.951

       (C) Subject to division (A)(2) of this section, within five952
days following the filing of an application for a certificate of953
transfer that complies with division (B) of this section, the954
court shall issue a certificate of transfer for record in each955
county in this state in which real property so passing is956
situated, that shall recite all of the following:957

       (1) The name and date of death of the decedent;958

       (2) Whether the decedent died testate or intestate and, if959
testate, the volume and page of the record of the will;960

       (3) The volume and page of the probate court record of the961
administration of the estate;962

       (4) The names and places of residence of the devisees, the963
interests passing to them, the names and places of residence of964
the persons inheriting intestate, and the interests inherited by965
them, in each parcel of real property described in division (B)(4)966
of this section;967

       (5) A description of each parcel of real property described968
in division (B)(4) of this section;969

       (6) Other information that in the opinion of the court970
should be included.971

       (D) If an executor or administrator has failed to file an972
application for a certificate of transfer before being discharged,973
the application may be filed by an heir or devisee, or a successor974
in interest, in the probate court in which the testator's will was975
probated or, in the case of intestate estates, in the probate976
court in which administration was had. If no administration was977
had on an estate and if no administration is contemplated, except978
in the case of the grant of or contemplated application for the979
grant of an order of a summary release from administration under980
section 2113.031 of the Revised Code, an application for a981
certificate of transfer may be filed by an heir or devisee, or a982
successor in interest, in the probate court of the county in which983
the decedent was a resident at the time of death.984

       A foreign executor or administrator, when no ancillary985
administration proceedings have been had or are being had in this986
state, may file in accordance with this section an application for987
a certificate of transfer in the probate court of any county of988
this state in which real property of the decedent is located.989

       When a person who has entered into a written contract for the990
sale and conveyance of an interest in real property dies before991
its completion, the interest of the decedent in the contract and992
the record title to the real property described in the contract993
may be transferred to the persons, legatees, devisees, or heirs at994
law entitled to the interest of the decedent in the real property,995
in the same manner as provided in this section and sections996
2113.62 and 2113.63 of the Revised Code for the transfer of real997
property. The application for the certificate of transfer and the998
certificate itself also shall recite that the real property999
described in the application or certificate is subject to a1000
written contract for its sale and conveyance.1001

       Sec. 2117.25. (A) Every executor or administrator shall1002
proceed with diligence to pay the debts of the decedent, and shall1003
apply the assets in the following order:1004

       (A)(1) Costs and expenses of administration;1005

       (B)(2) An amount, not exceeding two thousand dollars, for1006
funeral expenses that are included in the bill of a funeral1007
director, funeral expenses other than those in the bill of a1008
funeral director that are approved by the probate court, and an1009
amount, not exceeding two thousand dollars, for burial and1010
cemetery expenses, including that portion of the funeral1011
director's bill allocated to cemetery expenses that have been paid1012
to the cemetery by the funeral director.1013

       For purposes of this division, burial and cemetery expenses1014
shall be limited to the following:1015

       (1)(a) The purchase of a place of interment;1016

       (2)(b) Monuments or other markers;1017

       (3)(c) The outer burial container;1018

       (4)(d) The cost of opening and closing the place of1019
interment;1020

       (5)(e) The urn.1021

       (C)(3) The allowance for support made to the surviving1022
spouse, minor children, or both under section 2106.13 of the1023
Revised Code;1024

       (D)(4) Debts entitled to a preference under the laws of the1025
United States;1026

       (E)(5) Expenses of the last sickness of the decedent;1027

       (F)(6) If the total bill of a funeral director for funeral1028
expenses exceeds two thousand dollars, then, in addition to the1029
amount described in division (B)(A)(2) of this section, an amount,1030
not exceeding one thousand dollars, for funeral expenses that are1031
included in the bill and that exceed two thousand dollars;1032

       (G)(7) Personal property taxes and obligations for which the1033
decedent was personally liable to the state or any of its1034
subdivisions;1035

       (H)(8) Debts for manual labor performed for the decedent1036
within twelve months preceding the decedent's death, not exceeding1037
three hundred dollars to any one person;1038

       (I)(9) Other debts for which claims have been presented and1039
finally allowed.1040

       (B) The part of the bill of a funeral director that exceeds1041
the total of three thousand dollars as described in divisions1042
(B)(A)(2) and (F)(6) of this section, and the part of a claim1043
included in division (H)(A)(8) of this section that exceeds three1044
hundred dollars shall be included as a debt under division1045
(I)(A)(9) of this section, depending upon the time when the claim1046
for the additional amount is presented.1047

       (C) Any natural person or fiduciary who pays a claim of any1048
creditor described in division (A) of this section shall be1049
subrogated to the rights of that creditor proportionate to the1050
amount of the payment and shall be entitled to reimbursement for1051
that amount in accordance with the priority of payments set forth1052
in that division.1053

       (D)(1) Chapters 2113. to 2125. of the Revised Code, relating1054
to the manner in which and the time within which claims shall be1055
presented, shall apply to claims set forth in divisions (B)(A)(2),1056
(F)(6), and (H)(8) of this section. Claims for an expense of1057
administration or for the allowance for support need not be1058
presented. The executor or administrator shall pay debts included1059
in divisions (D)(A)(4) and (G)(7) of this section, of which the1060
executor or administrator has knowledge, regardless of1061
presentation.1062

       (2) The giving of written notice to an executor or1063
administrator of a motion or application to revive an action1064
pending against the decedent at the date of death shall be1065
equivalent to the presentation of a claim to the executor or1066
administrator for the purpose of determining the order of payment1067
of any judgment rendered or decree entered in such an action.1068

       (E) No payments shall be made to creditors of one class1069
until all those of the preceding class are fully paid or provided1070
for. If the assets are insufficient to pay all the claims of one1071
class, the creditors of that class shall be paid ratably.1072

       (F) If it appears at any time that the assets have been1073
exhausted in paying prior or preferred charges, allowances, or1074
claims, suchthose payments shall be a bar to an action on any1075
claim not entitled to suchthat priority or preference.1076

       Sec. 2106.17.        Sec. 2131.12.  (A) As used in this section:1077

       (1) "Motor vehicle" has the same meaning as in section1078
4505.01 of the Revised Code.1079

       (2) "Joint ownership with right of survivorship" means a1080
form of ownership of a motor vehicle, watercraft, or outboard1081
motor that is established pursuant to this section and pursuant to1082
which the entire interest in the motor vehicle, watercraft, or1083
outboard motor is held by two persons for their joint lives and1084
thereafter by the survivor of them.1085

       (3) "Watercraft" has the same meaning as in division (A) of1086
section 1548.01 of the Revised Code.1087

       (B)(1) Any two persons may establish in accordance with this1088
section joint ownership with right of survivorship in a motor1089
vehicle or in a watercraft or outboard motor for which a1090
certificate of title is required under Chapter 1548. of the1091
Revised Code.1092

       (2) If two persons wish to establish joint ownership with1093
right of survivorship in a motor vehicle or in a watercraft or1094
outboard motor that is required to be titled under Chapter 1548.1095
of the Revised Code, they may make a joint application for a1096
certificate of title under section 4505.06 or 1548.07 of the1097
Revised Code, as applicable.1098

       (C) If two persons have established in a certificate of1099
title joint ownership with right of survivorship in a motor1100
vehicle or a watercraft or outboard motor that is required to be1101
titled under Chapter 1548. of the Revised Code, and if one of1102
those persons dies, the interest of the deceased person in the1103
motor vehicle, watercraft, or outboard motor shall pass to the1104
survivor of them upon transfer of title to the motor vehicle or1105
watercraft or outboard motor in accordance with section 4505.10 or1106
1548.11 of the Revised Code. The motor vehicle, watercraft, or1107
outboard motor shall not be considered an estate asset and shall1108
not be included and stated in the estate inventory.1109

       Sec. 2131.13. (A) As used in this section:1110

       (1) "Designate or designation in beneficiary form" means to1111
designate, or the designation of, a motor vehicle, watercraft, or1112
outboard motor in a certificate of title that indicates the1113
present owner of the motor vehicle, watercraft, or outboard motor1114
and the intention of the present owner with respect to the1115
transfer of ownership on the present owner's death by designating1116
one or more persons as the beneficiary or beneficiaries who will1117
become the owner or owners of the motor vehicle, watercraft, or1118
outboard motor upon the death of the present owner.1119

       (2) "Motor vehicle" has the same meaning as in section1120
4505.01 of the Revised Code.1121

       (3) "Person" means an individual, a corporation, an1122
organization, or other legal entity.1123

       (4) "Transfer-on-death beneficiary or beneficiaries" means a1124
person or persons specified in a certificate of title of a motor1125
vehicle, watercraft, or outboard motor who will become the owner1126
or owners of the motor vehicle, watercraft, or outboard motor upon1127
the death of the present owner of the motor vehicle, watercraft,1128
or outboard motor.1129

       (5) "Watercraft" has the same meaning as in section 1548.011130
of the Revised Code.1131

       (B) An individual whose certificate of title of a motor1132
vehicle, watercraft, or outboard motor shows sole ownership by1133
that individual may make an application for a certificate of title1134
under section 1548.07 or 4505.06 of the Revised Code to designate1135
that motor vehicle, watercraft, or outboard motor in beneficiary1136
form pursuant to this section.1137

       (C)(1) A motor vehicle, watercraft, or outboard motor is1138
designated in beneficiary form if the certificate of title of the1139
motor vehicle, watercraft, or outboard motor includes the name or1140
names of the transfer-on-death beneficiary or beneficiaries.1141

       (2) The designation of a motor vehicle, watercraft, or1142
outboard motor in beneficiary form is not required to be supported1143
by consideration, and the certificate of title in which the1144
designation is made is not required to be delivered to the1145
transfer-on-death beneficiary or beneficiaries in order for the1146
designation in beneficiary form to be effective.1147

       (D) The designation of a motor vehicle, watercraft, or1148
outboard motor in beneficiary form may be shown in the certificate1149
of title by the words "transfer-on-death" or the abbreviation1150
"TOD" after the name of the owner of a motor vehicle, watercraft,1151
or outboard motor and before the name or names of the1152
transfer-on-death beneficiary or beneficiaries.1153

       (E) The designation of a transfer-on-death beneficiary or1154
beneficiaries on a certificate of title has no effect on the1155
ownership of a motor vehicle, watercraft, or outboard motor until1156
the death of the owner of the motor vehicle, watercraft, or1157
outboard motor. The owner of a motor vehicle, watercraft, or1158
outboard motor may cancel or change the designation of a1159
transfer-on-death beneficiary or beneficiaries on a certificate of1160
title at any time without the consent of the transfer-on-death1161
beneficiary or beneficiaries by making an application for a1162
certificate of title under section 1548.07 or 4505.06 of the1163
Revised Code.1164

       (F)(1) Upon the death of the owner of a motor vehicle,1165
watercraft, or outboard motor designated in beneficiary form, the1166
ownership of the motor vehicle, watercraft, or outboard motor1167
shall pass to the transfer-on-death beneficiary or beneficiaries1168
who survive the owner upon transfer of title to the motor vehicle,1169
watercraft, or outboard motor in accordance with section 1548.111170
or 4505.10 of the Revised Code. The transfer-on-death beneficiary1171
or beneficiaries who survive the owner may apply for a certificate1172
of title to the motor vehicle, watercraft, or outboard motor upon1173
submitting proof of the death of the owner of the motor vehicle,1174
watercraft, or outboard motor.1175

       (2) If no transfer-on-death beneficiary or beneficiaries1176
survive the owner of a motor vehicle, watercraft, or outboard1177
motor, the motor vehicle, watercraft, or outboard motor shall be1178
included in the probate estate of the deceased owner.1179

       (G)(1) Any transfer of a motor vehicle, watercraft, or1180
outboard motor to a transfer-on-death beneficiary or beneficiaries1181
that results from a designation of the motor vehicle, watercraft,1182
or outboard motor in beneficiary form is not testamentary.1183

       (2) This section does not limit the rights of any creditor1184
of the owner of a motor vehicle, watercraft, or outboard motor1185
against any transfer-on-death beneficiary or beneficiaries or1186
other transferees of the motor vehicle, watercraft, or outboard1187
motor under other laws of this state.1188

       (H)(1) This section shall be known and may be cited as the1189
"Transfer-on-Death of Motor Vehicle, Watercraft, or Outboard Motor1190
Statute."1191

       (2) Divisions (A) to (H) of this section shall be liberally1192
construed and applied to promote their underlying purposes and1193
policy.1194

       (3) Unless displaced by particular provisions of divisions1195
(A) to (H) of this section, the principles of law and equity1196
supplement the provisions of those divisions.1197

       Sec. 2305.121.  (A) Any of the following actions pertaining1198
to a revocable trust that is made irrevocable by the death of the1199
grantor of the trust shall be commenced within two years after the1200
date of the death of the grantor of the trust:1201

       (1) An action to contest the validity of the trust;1202

       (2) An action to contest the validity of any amendment to1203
the trust that was made during the lifetime of the grantor of the1204
trust;1205

       (3) An action to contest the revocation of the trust during1206
the lifetime of the grantor of the trust;1207

       (4) An action to contest the validity of any transfer made1208
to the trust during the lifetime of the grantor of the trust.1209

       (B) Upon the death of the grantor of a revocable trust that1210
was made irrevocable by the death of the grantor, the trustee,1211
without liability, may proceed to distribute the trust property in1212
accordance with the terms of the trust unless either of the1213
following applies:1214

       (1) The trustee has actual knowledge of a pending action to1215
contest the validity of the trust, any amendment to the trust, the1216
revocation of the trust, or any transfer made to the trust during1217
the lifetime of the grantor of the trust.1218

       (2) The trustee receives written notification from a1219
potential contestant of a potential action to contest the validity1220
of the trust, any amendment to the trust, the revocation of the1221
trust, or any transfer made to the trust during the lifetime of1222
the grantor of the trust, and the action is actually filed within1223
ninety days after the written notification was given to the1224
trustee.1225

       (C) If a distribution of trust property is made pursuant to1226
division (B) of this section, a beneficiary of the trust shall1227
return any distribution to the extent that it exceeds the1228
distribution to which the beneficiary is entitled if the trust, an1229
amendment to the trust, or a transfer made to the trust later is1230
determined to be invalid.1231

       (D) This section applies only to revocable trusts that are1232
made irrevocable by the death of the grantor of the trust if the1233
grantor dies on or after the effective date of this section.1234

       Sec. 3923.061.  (A) On and after January 1, 2003, any1235
insurance company authorized to do business in this state shall1236
pay interest, in accordance with division (B) of this section and1237
subject to division (C) of this section, on any proceeds that1238
become due pursuant to the terms of a policy of sickness and1239
accident insurance due to the death of the insured by sickness or1240
accident.1241

       (B) The interest payable pursuant to division (A) of this1242
section shall be computed from the date of the death of the1243
insured to the date of the payment of the proceeds and shall be at1244
whichever of the following rates is greater:1245

       (1) The annual short-term applicable federal rate for1246
purposes of section 1274(d) of the Internal Revenue Code, as1247
defined in section 5747.01 of the Revised Code, in effect for the1248
month in which the insured died;1249

       (2) The current rate of interest on proceeds left on1250
deposit with the company under an interest settlement option1251
contained in the policy of sickness and accident insurance.1252

       (C) Division (A) or (B) of this section does not require1253
the payment of interest unless the insured was a resident of this1254
state on the date of the insured's death and unless the1255
beneficiary under the policy of sickness and accident insurance1256
elects in writing to receive, or a written election has been made1257
for the beneficiary to receive, the proceeds of the policy by1258
means of a lump sum payment.1259

       Sec. 4503.12.  Upon the transfer of ownership of a motor1260
vehicle, the registration of the motor vehicle expires, and the1261
original owner immediately shall remove the license plates from1262
the motor vehicle, except that:1263

       (A) If a statutory merger or consolidation results in the1264
transfer of ownership of a motor vehicle from a constituent1265
corporation to the surviving corporation, or if the incorporation1266
of a proprietorship or partnership results in the transfer of1267
ownership of a motor vehicle from the proprietorship or1268
partnership to the corporation, the registration shall be1269
continued upon the filing by the surviving or new corporation,1270
within thirty days of such transfer, of an application for an1271
amended certificate of registration, unless such registration is1272
prohibited by division (D) of section 2935.27, division (A) of1273
section 2937.221, division (B) of section 4507.168, or division1274
(B)(1) of section 4521.10 of the Revised Code. The application1275
shall be accompanied by a service fee of two dollars and 1276
seventy-five cents commencing on July 1, 2001, three dollars and1277
twenty-five cents commencing on January 1, 2003, and three dollars1278
and fifty cents commencing on January 1, 2004, a transfer fee of1279
one dollar, and the original certificate of registration. Upon a1280
proper filing, the registrar of motor vehicles shall issue an1281
amended certificate of registration in the name of the new owner.1282

       (B) If the death of the owner of a motor vehicle results in1283
the transfer of ownership of the motor vehicle to the surviving1284
spouse of the owner or if a motor vehicle is owned by two persons1285
under joint ownership with right of survivorship established under1286
section 2106.172131.12 of the Revised Code and one of those1287
persons dies, the registration shall be continued upon the filing1288
by the surviving spousesurvivor of an application for an amended1289
certificate of registration, unless such registration is1290
prohibited by division (D) of section 2935.27, division (A) of1291
section 2937.221, division (A) of section 4503.13, division (B) of1292
section 4507.168, or division (B)(1) of section 4521.10 of the1293
Revised Code. The application shall be accompanied by a service1294
fee of two dollars and seventy-five cents commencing on July 1,1295
2001, three dollars and twenty-five cents commencing on January 1,1296
2003, and three dollars and fifty cents commencing on January 1,1297
2004, a transfer fee of one dollar, the original certificate of1298
registration, and, in relation to a motor vehicle that is owned by1299
two persons under joint ownership with right of survivorship1300
established under section 2106.172131.12 of the Revised Code, by1301
a copy of the certificate of title that specifies that the vehicle1302
is owned under joint ownership with right of survivorship. Upon a1303
proper filing, the registrar shall issue an amended certificate of1304
registration in the name of the surviving spousesurvivor.1305

       (C) If the death of the owner of a motor vehicle results in1306
the transfer of ownership of the motor vehicle to a1307
transfer-on-death beneficiary or beneficiaries designated under1308
section 2131.13 of the Revised Code, the registration shall be1309
continued upon the filing by the transfer-on-death beneficiary or1310
beneficiaries of an application for an amended certificate of1311
registration, unless that registration is prohibited by division1312
(D) of section 2935.27, division (A) of section 2937.221, division1313
(A) of section 4503.13, division (B) of section 4507.168, or1314
division (B)(1) of section 4521.10 of the Revised Code. The1315
application shall be accompanied by a service fee of two dollars1316
and seventy-five cents commencing on July 1, 2001, three dollars1317
and twenty-five cents commencing on January 1, 2003, and three1318
dollars and fifty cents commencing on January 1, 2004, a transfer1319
fee of one dollar, the original certificate of registration, and a1320
copy of the certificate of title that specifies that the owner of1321
the motor vehicle has designated the motor vehicle in beneficiary1322
form under section 2131.13 of the Revised Code. Upon a proper1323
filing, the registrar shall issue an amended certificate of1324
registration in the name of the transfer-on-death beneficiary or1325
beneficiaries.1326

       (D) If the original owner of a motor vehicle that has been1327
transferred makes application for the registration of another1328
motor vehicle at any time during the remainder of the registration1329
period for which the transferred motor vehicle was registered, the1330
owner, unless such registration is prohibited by division (D) of1331
section 2935.27, division (A) of section 2937.221, division (A) of1332
section 4503.13, division (E) of section 4503.234, division (B) of1333
section 4507.168, or division (B)(1) of section 4521.10 of the1334
Revised Code, may file an application for transfer of the1335
registration and, where applicable, the license plates,1336
accompanied by a service fee of two dollars and seventy-five1337
cents commencing on July 1, 2001, three dollars and twenty-five1338
cents commencing on January 1, 2003, and three dollars and fifty1339
cents commencing on January 1, 2004, a transfer fee of one dollar,1340
and the original certificate of registration. The transfer of the1341
registration and, where applicable, the license plates from the1342
motor vehicle for which they originally were issued to a1343
succeeding motor vehicle purchased by the same person in whose1344
name the original registration and license plates were issued1345
shall be done within a period not to exceed thirty days. During1346
that thirty-day period, the license plates from the motor vehicle1347
for which they originally were issued may be displayed on the1348
succeeding motor vehicle, and the succeeding motor vehicle may be1349
operated on the public roads and highways in this state.1350

       At the time of application for transfer, the registrar shall1351
compute and collect the amount of tax due on the succeeding motor1352
vehicle, based upon the amount that would be due on a new1353
registration as of the date on which the transfer is made less a1354
credit for the unused portion of the original registration1355
beginning on that date. If the credit exceeds the amount of tax1356
due on the new registration, no refund shall be made. In1357
computing the amount of tax due and credits to be allowed under1358
this division, the provisions of division (B)(1)(a) and (b) of1359
section 4503.11 of the Revised Code shall apply. As to passenger1360
cars, noncommercial vehicles, motor homes, and motorcycles,1361
transfers within or between these classes of motor vehicles only1362
shall be allowed. If the succeeding motor vehicle is of a1363
different class than the motor vehicle for which the registration1364
originally was issued, new license plates also shall be issued1365
upon the surrender of the license plates originally issued and1366
payment of the fees provided in divisions (C) and (D) of section1367
4503.10 of the Revised Code.1368

       (D)(E) The owner of a commercial car having a gross vehicle1369
weight or combined gross vehicle weight of more than ten thousand1370
pounds may transfer the registration of that commercial car to1371
another commercial car the owner owns without transferring1372
ownership of the first commercial car, unless registration of the1373
second commercial car is prohibited by division (D) of section1374
2935.27, division (A) of section 2937.221, division (A) of section1375
4503.13, division (B) of section 4507.168, or division (B)(1) of1376
section 4521.10 of the Revised Code. At any time during the1377
remainder of the registration period for which the first1378
commercial car was registered, the owner may file an application1379
for the transfer of the registration and, where applicable, the1380
license plates, accompanied by a service fee of two dollars and 1381
seventy-five cents commencing on July 1, 2001, three dollars and1382
twenty-five cents commencing on January 1, 2003, and three dollars1383
and fifty cents commencing on January 1, 2004, a transfer fee of1384
one dollar, and the certificate of registration of the first1385
commercial car. The amount of any tax due or credit to be allowed1386
for a transfer of registration under this division shall be1387
computed in accordance with division (C)(D) of this section.1388

       No commercial car to which a registration is transferred1389
under this division shall be operated on a public road or highway1390
in this state until after the transfer of registration is1391
completed in accordance with this division.1392

       (E)(F) Upon application to the registrar or a deputy1393
registrar, a person who owns or leases a motor vehicle may1394
transfer special license plates assigned to that vehicle to any1395
other vehicle that the person owns or leases or that is owned or1396
leased by the person's spouse. The application shall be1397
accompanied by a service fee of two dollars and seventy-five1398
cents commencing on July 1, 2001, three dollars and twenty-five1399
cents commencing on January 1, 2003, and three dollars and fifty1400
cents commencing on January 1, 2004, a transfer fee of one dollar,1401
and the original certificate of registration. As appropriate, the1402
application also shall be accompanied by a power of attorney for1403
the registration of a leased vehicle and a written statement1404
releasing the special plates to the applicant. Upon a proper1405
filing, the registrar or deputy registrar shall assign the special1406
license plates to the motor vehicle owned or leased by the1407
applicant and issue a new certificate of registration for that1408
motor vehicle.1409

       As used in division (E)(F) of this section, "special license1410
plates" means either of the following:1411

       (1) Any license plates for which the person to whom the1412
license plates are issued must pay an additional fee in excess of1413
the fees prescribed in section 4503.04 of the Revised Code,1414
Chapter 4504. of the Revised Code, and the service fee prescribed1415
in division (D) or (G) of section 4503.10 of the Revised Code;1416

       (2) License plates issued under section 4503.44 of the1417
Revised Code.1418

       Sec. 4505.06.  (A)(1) Application for a certificate of title 1419
shall be made in a form prescribed by the registrar of motor 1420
vehicles and shall be sworn to before a notary public or other 1421
officer empowered to administer oaths. The application shall be 1422
filed with the clerk of any court of common pleas. An1423
application for a certificate of title may be filed 1424
electronically by any electronic means approved by the registrar1425
in any county with the clerk of the court of common pleas of1426
that county. Any payments required by this chapter shall be1427
considered as accompanying any electronically transmitted 1428
application when payment actually is received by the clerk. 1429
Payment of any fee or taxes may be made by electronic transfer1430
of funds.1431

       (2) The application for a certificate of title shall be 1432
accompanied by the fee prescribed in section 4505.09 of the 1433
Revised Code. The fee shall be retained by the clerk who issues1434
the certificate of title and shall be distributed in accordance1435
with that section. If a clerk of a court of common pleas, other1436
than the clerk of the court of common pleas of an applicant's1437
county of residence, issues a certificate of title to the1438
applicant, the clerk shall transmit data related to the 1439
transaction to the automated title processing system.1440

       (3) If a certificate of title previously has been issued for 1441
a motor vehicle in this state, the application for a 1442
certificate of title also shall be accompanied by that 1443
certificate of title duly assigned, unless otherwise provided in 1444
this chapter. If a certificate of title previously has not been 1445
issued for the motor vehicle in this state, the application, 1446
unless otherwise provided in this chapter, shall be accompanied 1447
by a manufacturer's or importer's certificate or by a certificate1448
of title of another state from which the motor vehicle was1449
brought into this state. If the application refers to a motor1450
vehicle last previously registered in another state, the1451
application also shall be accompanied by the physical inspection1452
certificate required by section 4505.061 of the Revised Code. If1453
the application is made by two persons regarding a motor vehicle1454
in which they wish to establish joint ownership with right of1455
survivorship, they may do so as provided in section 2106.171456
2131.12 of the Revised Code. If the applicant requests a1457
designation of the motor vehicle in beneficiary form so that upon1458
the death of the owner of the motor vehicle, ownership of the1459
motor vehicle will pass to a designated transfer-on-death1460
beneficiary or beneficiaries, the applicant may do so as provided1461
in section 2131.13 of the Revised Code. A person who establishes1462
ownership of a motor vehicle that is transferable on death in1463
accordance with section 2131.13 of the Revised Code may terminate1464
that type of ownership or change the designation of the1465
transfer-on-death beneficiary or beneficiaries by applying for a1466
certificate of title pursuant to this section. The clerk shall1467
retain the evidence of title presented by the applicant and on1468
which the certificate of title is issued, except that, if an 1469
application for a certificate of title is filed electronically1470
by an electronic motor vehicle dealer on behalf of the purchaser1471
of a motor vehicle, the clerk shall retain the completed1472
electronic record to which the dealer converted the certificate1473
of title application and other required documents. The1474
electronic motor vehicle dealer shall forward the actual1475
application and all other documents relating to the sale of the1476
motor vehicle to any clerk within thirty days after the1477
certificate of title is issued. The registrar, after consultation1478
with the attorney general, shall adopt rules that govern the1479
location at which, and the manner in which, are stored the actual1480
application and all other documents relating to the sale of a1481
motor vehicle when an electronic motor vehicle dealer files the1482
application for a certificate of title electronically on behalf of1483
the purchaser.1484

       The clerk shall use reasonable diligence in ascertaining 1485
whether or not the facts in the application for a certificate of 1486
title are true by checking the application and documents 1487
accompanying it or the electronic record to which a dealer1488
converted the application and accompanying documents with the1489
records of motor vehicles in the clerk's office. If the clerk is1490
satisfied that the applicant is the owner of the motor vehicle 1491
and that the application is in the proper form, the clerk, 1492
within five business days after the application is filed, shall 1493
issue a physical certificate of title over the clerk's signature 1494
and sealed with the clerk's seal unless the applicant1495
specifically requests the clerk not to issue a physical1496
certificate of title and instead to issue an electronic 1497
certificate of title. For purposes of the transfer of a 1498
certificate of title, if the clerk is satisfied that the secured 1499
party has duly discharged a lien notation but has not canceled 1500
the lien notation with a clerk, the clerk may cancel the lien1501
notation on the automated title processing system and notify the1502
clerk of the county of origin.1503

       (4) In the case of the sale of a motor vehicle to a general1504
buyer or user by a dealer, by a motor vehicle leasing dealer1505
selling the motor vehicle to the lessee or, in a case in which1506
the leasing dealer subleased the motor vehicle, the sublessee,1507
at the end of the lease agreement or sublease agreement, or by a1508
manufactured home broker, the certificate of title shall be 1509
obtained in the name of the buyer by the dealer, leasing dealer,1510
or manufactured home broker, as the case may be, upon1511
application signed by the buyer. The certificate of title shall1512
be issued, or the process of entering the certificate of title1513
application information into the automated title processing1514
system if a physical certificate of title is not to be issued1515
shall be completed, within five business days after the1516
application for title is filed with the clerk. If the buyer of1517
the motor vehicle previously leased the motor vehicle and is1518
buying the motor vehicle at the end of the lease pursuant to that1519
lease, the certificate of title shall be obtained in the name of1520
the buyer by the motor vehicle leasing dealer who previously1521
leased the motor vehicle to the buyer or by the motor vehicle1522
leasing dealer who subleased the motor vehicle to the buyer1523
under a sublease agreement.1524

       In all other cases, except as provided in section 4505.032 1525
and division (D)(2) of section 4505.11 of the Revised Code, such 1526
certificates shall be obtained by the buyer.1527

       (5)(a)(i) If the certificate of title is being obtained in1528
the name of the buyer by a motor vehicle dealer or motor vehicle1529
leasing dealer and there is a security interest to be noted on the1530
certificate of title, the dealer or leasing dealer shall submit1531
the application for the certificate of title and payment of the1532
applicable tax to a clerk within seven business days after the1533
later of the delivery of the motor vehicle to the buyer or the1534
date the dealer or leasing dealer obtains the manufacturer's or1535
importer's certificate, or certificate of title issued in the name1536
of the dealer or leasing dealer, for the motor vehicle. Submission1537
of the application for the certificate of title and payment of the1538
applicable tax within the required seven business days may be1539
indicated by postmark or receipt by a clerk within that period.1540

       (ii) Upon receipt of the certificate of title with the1541
security interest noted on its face, the dealer or leasing dealer1542
shall forward the certificate of title to the secured party at the1543
location noted in the financing documents or otherwise specified1544
by the secured party.1545

       (iii) A motor vehicle dealer or motor vehicle leasing dealer1546
is liable to a secured party for a late fee of ten dollars per day1547
for each certificate of title application and payment of the1548
applicable tax that is submitted to a clerk more than seven1549
business days but less than twenty-one days after the later of the1550
delivery of the motor vehicle to the buyer or the date the dealer1551
or leasing dealer obtains the manufacturer's or importer's1552
certificate, or certificate of title issued in the name of the1553
dealer or leasing dealer, for the motor vehicle and, from then on,1554
twenty-five dollars per day until the application and applicable1555
tax are submitted to a clerk.1556

       (b) In all cases of transfer of a motor vehicle, the1557
application for certificate of title shall be filed within1558
thirty days after the assignment or delivery of the motor1559
vehicle. If an application for a certificate of title is not1560
filed within the period specified in division (A)(5)(b) of this1561
section, the clerk shall collect a fee of five dollars for the1562
issuance of the certificate, except that no such fee shall be1563
required from a motor vehicle salvage dealer, as defined in1564
division (A) of section 4738.01 of the Revised Code, who1565
immediately surrenders the certificate of title for 1566
cancellation. The fee shall be in addition to all other fees 1567
established by this chapter, and shall be retained by the clerk.1568
The registrar shall provide, on the certificate of title form 1569
prescribed by section 4505.07 of the Revised Code, language 1570
necessary to give evidence of the date on which the assignment or 1571
delivery of the motor vehicle was made.1572

       (6) As used in division (A) of this section, "lease1573
agreement," "lessee," and "sublease agreement" have the same1574
meanings as in section 4505.04 of the Revised Code.1575

       (B) The clerk, except as provided in this section, shall 1576
refuse to accept for filing any application for a certificate of 1577
title and shall refuse to issue a certificate of title unless the 1578
dealer or manufactured home broker or the applicant, in cases in 1579
which the certificate shall be obtained by the buyer, submits1580
with the application payment of the tax levied by or pursuant to 1581
Chapters 5739. and 5741. of the Revised Code based on the 1582
purchaser's county of residence. Upon payment of the tax in 1583
accordance with division (E) of this section, the clerk shall 1584
issue a receipt prescribed by the registrar and agreed upon by the 1585
tax commissioner showing payment of the tax or a receipt issued1586
by the commissioner showing the payment of the tax. When1587
submitting payment of the tax to the clerk, a dealer shall1588
retain any discount to which the dealer is entitled under1589
section 5739.12 of the Revised Code.1590

       For receiving and disbursing such taxes paid to the clerk by1591
a resident of the clerk's county, the clerk may retain a poundage 1592
fee of one and one one-hundredth per cent, whichand the clerk1593
shall be paidpay the poundage fee into the certificate of title 1594
administration fund created by section 325.33 of the Revised1595
Code. The clerk shall not retain a poundage fee from payments of1596
taxes by persons who do not reside in the clerk's county.1597

       A clerk, however, may retain from the taxes paid to the clerk1598
an amount equal to the poundage fees associated with certificates1599
of title issued by other clerks of courts of common pleas to1600
applicants who reside in the first clerk's county. The registrar,1601
in consultation with the tax commissioner and the clerks of the1602
courts of common pleas, shall develop a report from the automated1603
title processing system that informs each clerk of the amount of1604
the poundage fees that the clerk is permitted to retain from those1605
taxes because of certificates of title issued by the clerks of1606
other counties to applicants who reside in the first clerk's1607
county.1608

       In the case of casual sales of motor vehicles, as defined in 1609
section 4517.01 of the Revised Code, the price for the purpose of 1610
determining the tax shall be the purchase price on the assigned 1611
certificate of title executed by the seller and filed with the 1612
clerk by the buyer on a form to be prescribed by the registrar, 1613
which shall be prima-facie evidence of the amount for the 1614
determination of the tax.1615

       (C)(1) If the transferor indicates on the certificate of 1616
title that the odometer reflects mileage in excess of the1617
designed mechanical limit of the odometer, the clerk shall enter1618
the phrase "exceeds mechanical limits" following the mileage 1619
designation. If the transferor indicates on the certificate of 1620
title that the odometer reading is not the actual mileage, the 1621
clerk shall enter the phrase "nonactual: warning - odometer1622
discrepancy" following the mileage designation. The clerk shall1623
use reasonable care in transferring the information supplied by1624
the transferor, but is not liable for any errors or omissions of1625
the clerk or those of the clerk's deputies in the performance of1626
the clerk's duties created by this chapter.1627

       The registrar shall prescribe an affidavit in which the 1628
transferor shall swear to the true selling price and, except as 1629
provided in this division, the true odometer reading of the motor 1630
vehicle. The registrar may prescribe an affidavit in which the 1631
seller and buyer provide information pertaining to the odometer 1632
reading of the motor vehicle in addition to that required by this 1633
section, as such information may be required by the United States 1634
secretary of transportation by rule prescribed under authority of 1635
subchapter IV of the "Motor Vehicle Information and Cost Savings 1636
Act," 86 Stat. 961 (1972), 15 U.S.C. 1981.1637

       (2) Division (C)(1) of this section does not require the 1638
giving of information concerning the odometer and odometer1639
reading of a motor vehicle when ownership of a motor vehicle is1640
being transferred as a result of a bequest, under the laws of1641
intestate succession, to a surviving spousesurvivor pursuant to1642
section 2106.17, 2106.18, 2131.12, or 4505.10 of the Revised1643
Code, to a transfer-on-death beneficiary or beneficiaries pursuant1644
to section 2131.13 of the Reviseed Code, or in connection with the 1645
creation of a security interest.1646

       (D) When the transfer to the applicant was made in some 1647
other state or in interstate commerce, the clerk, except as 1648
provided in this section, shall refuse to issue any certificate 1649
of title unless the tax imposed by or pursuant to Chapter 5741.1650
of the Revised Code based on the purchaser's county of residence1651
has been paid as evidenced by a receipt issued by the tax 1652
commissioner, or unless the applicant submits with the1653
application payment of the tax. Upon payment of the tax in1654
accordance with division (E) of this section, the clerk shall1655
issue a receipt prescribed by the registrar and agreed upon by1656
the tax commissioner, showing payment of the tax.1657

       For receiving and disbursing such taxes paid to the clerk1658
by a resident of the clerk's county, the clerk may retain a 1659
poundage fee of one and one one-hundredth per cent. The clerk1660
shall not retain a poundage fee from payments of taxes by persons1661
who do not reside in the clerk's county.1662

       A clerk, however, may retain from the taxes paid to the clerk1663
an amount equal to the poundage fees associated with certificates1664
of title issued by other clerks of courts of common pleas to1665
applicants who reside in the first clerk's county. The registrar,1666
in consultation with the tax commissioner and the clerks of the1667
courts of common pleas, shall develop a report from the automated1668
title processing system that informs each clerk of the amount of1669
the poundage fees that the clerk is permitted to retain from those1670
taxes because of certificates of title issued by the clerks of1671
other counties to applicants who reside in the first clerk's1672
county.1673

       When the vendor is not regularly engaged in the business of 1674
selling motor vehicles, the vendor shall not be required to 1675
purchase a vendor's license or make reports concerning those1676
sales.1677

       (E) The clerk shall accept any payment of a tax in cash, or 1678
by cashier's check, certified check, draft, money order, or 1679
teller check issued by any insured financial institution payable 1680
to the clerk and submitted with an application for a certificate 1681
of title under division (B) or (D) of this section. The clerk 1682
also may accept payment of the tax by corporate, business, or 1683
personal check, credit card, electronic transfer or wire1684
transfer, debit card, or any other accepted form of payment made1685
payable to the clerk. The clerk may require bonds, guarantees,1686
or letters of credit to ensure the collection of corporate, 1687
business, or personal checks. Any service fee charged by a1688
third party to a clerk for the use of any form of payment may be1689
paid by the clerk from the certificate of title administration1690
fund created in section 325.33 of the Revised Code, or may be 1691
assessed by the clerk upon the applicant as an additional fee.1692
Upon collection, the additional fees shall be paid by the clerk1693
into that certificate of title administration fund.1694

       The clerk shall make a good faith effort to collect any 1695
payment of taxes due but not made because the payment was1696
returned or dishonored, but the clerk is not personally liable1697
for the payment of uncollected taxes or uncollected fees. The1698
clerk shall notify the tax commissioner of any such payment of1699
taxes that is due but not made and shall furnish suchthe1700
information to the commissioner asthat the commissioner1701
requires. The clerk shall deduct the amount of taxes due but not 1702
paid from the clerk's periodic remittance of tax payments, in1703
accordance with procedures agreed upon by the tax commissioner.1704
The commissioner may collect taxes due by assessment in the1705
manner provided in section 5739.13 of the Revised Code.1706

       Any person who presents payment that is returned or 1707
dishonored for any reason is liable to the clerk for payment of a 1708
penalty over and above the amount of the taxes due. The clerk 1709
shall determine the amount of the penalty, whichand the penalty1710
shall be no greater than that amount necessary to compensate the1711
clerk for banking charges, legal fees, or other expenses1712
incurred by the clerk in collecting the returned or dishonored1713
payment. The remedies and procedures provided in this section1714
are in addition to any other available civil or criminal1715
remedies. Subsequently collected penalties, poundage fees, and1716
title fees, less any title fee due the state, from returned or1717
dishonored payments collected by the clerk shall be paid into the1718
certificate of title administration fund. Subsequently1719
collected taxes, less poundage fees, shall be sent by the clerk1720
to the treasurer of state at the next scheduled periodic1721
remittance of tax payments, with information as the1722
commissioner may require. The clerk may abate all or any part of1723
any penalty assessed under this division.1724

       (F) In the following cases, the clerk shall accept for 1725
filing an application and shall issue a certificate of title 1726
without requiring payment or evidence of payment of the tax:1727

       (1) When the purchaser is this state or any of its 1728
political subdivisions, a church, or an organization whose 1729
purchases are exempted by section 5739.02 of the Revised Code;1730

       (2) When the transaction in this state is not a retail sale 1731
as defined by section 5739.01 of the Revised Code;1732

       (3) When the purchase is outside this state or in 1733
interstate commerce and the purpose of the purchaser is not to 1734
use, store, or consume within the meaning of section 5741.01 of 1735
the Revised Code;1736

       (4) When the purchaser is the federal government;1737

       (5) When the motor vehicle was purchased outside this state 1738
for use outside this state;1739

       (6) When the motor vehicle is purchased by a nonresident of 1740
this state for immediate removal from this state, and will be 1741
permanently titled and registered in another state, as provided 1742
by division (B)(23) of section 5739.02 of the Revised Code, and 1743
upon presentation of a copy of the affidavit provided by that 1744
section, and a copy of the exemption certificate provided by 1745
section 5739.03 of the Revised Code.1746

       The clerk shall forward all payments of taxes, less poundage 1747
fees, to the treasurer of state in a manner to be prescribed by1748
the tax commissioner and shall furnish information to the 1749
commissioner as the commissioner requires.1750

       (G) An application, as prescribed by the registrar and 1751
agreed to by the tax commissioner, shall be filled out and sworn 1752
to by the buyer of a motor vehicle in a casual sale. The 1753
application shall contain the following notice in bold lettering: 1754
"WARNING TO TRANSFEROR AND TRANSFEREE (SELLER AND BUYER): You 1755
are required by law to state the true selling price. A false 1756
statement is in violation of section 2921.13 of the Revised Code 1757
and is punishable by six months' imprisonment or a fine of up to 1758
one thousand dollars, or both. All transfers are audited by the 1759
department of taxation. The seller and buyer must provide any 1760
information requested by the department of taxation. The buyer 1761
may be assessed any additional tax found to be due."1762

       (H) For sales of manufactured homes or mobile homes 1763
occurring on or after January 1, 2000, the clerk shall accept for 1764
filing, pursuant to Chapter 5739. of the Revised Code, an 1765
application for a certificate of title for a manufactured home or 1766
mobile home without requiring payment of any tax pursuant to 1767
section 5739.02, 5741.021, 5741.022, or 5741.023 of the Revised 1768
Code, or a receipt issued by the tax commissioner showing payment 1769
of the tax. For sales of manufactured homes or mobile homes 1770
occurring on or after January 1, 2000, the applicant shall pay to 1771
the clerk an additional fee of five dollars for each certificate 1772
of title issued by the clerk for a manufactured or mobile home 1773
pursuant to division (H) of section 4505.11 of the Revised Code 1774
and for each certificate of title issued upon transfer of 1775
ownership of the home. The clerk shall credit the fee to the 1776
county certificate of title administration fund, and the fee shall1777
be used to pay the expenses of archiving suchthose certificates1778
pursuant to division (A) of section 4505.08 and division (H)(3)1779
of section 4505.11 of the Revised Code. The tax commissioner 1780
shall administer any tax on a manufactured or mobile home 1781
pursuant to Chapters 5739. and 5741. of the Revised Code.1782

       (I) Every clerk shall have the capability to transact by 1783
electronic means all procedures and transactions relating to the 1784
issuance of motor vehicle certificates of title that are 1785
described in the Revised Code as being accomplished by 1786
electronic means.1787

       Sec. 4505.10.  (A) In the event of the transfer of ownership1788
of a motor vehicle by operation of law, as upon inheritance,1789
devise, bequest, order in bankruptcy, insolvency, replevin, or1790
execution sale, a motor vehicle is sold to satisfy storage or1791
repair charges, or repossession is had upon default in performance1792
of the terms of a security agreement as provided in Chapter 1309.1793
of the Revised Code and the secured party has notified the debtor1794
as required by division (B) of section 1309.611 of the Revised1795
Code, a clerk of a court of common pleas, upon the surrender of1796
the prior certificate of title or the manufacturer's or importer's1797
certificate, or, when that is not possible, upon presentation of1798
satisfactory proof to the clerk of ownership and rights of1799
possession to the motor vehicle, and upon payment of the fee1800
prescribed in section 4505.09 of the Revised Code and presentation1801
of an application for certificate of title, may issue to the1802
applicant a certificate of title to the motor vehicle. Only an1803
affidavit by the person or agent of the person to whom possession1804
of the motor vehicle has passed, setting forth the facts entitling1805
the person to the possession and ownership, together with a copy1806
of the journal entry, court order, or instrument upon which the1807
claim of possession and ownership is founded, is satisfactory1808
proof of ownership and right of possession. If the applicant1809
cannot produce that proof of ownership, the applicant may apply1810
directly to the registrar of motor vehicles and submit the1811
evidence the applicant has, and the registrar, if the registrar1812
finds the evidence sufficient, then may authorize a clerk to issue1813
a certificate of title. If, from the records in the office of the1814
clerk involved, there appears to be any lien on the motor vehicle,1815
the certificate of title shall contain a statement of the lien1816
unless the application is accompanied by proper evidence of its1817
extinction.1818

       (B) A clerk shall transfer a decedent's interest in one or1819
two automobiles to the surviving spouse of the decedent, as1820
provided in section 2106.18 of the Revised Code, upon receipt of1821
the title or titles. An affidavit executed by the surviving1822
spouse shall be submitted to the clerk with the title or titles.1823
The affidavit shall give the date of death of the decedent, shall1824
state that each automobile for which the decedent's interest is to1825
be so transferred is not disposed of by testamentary disposition,1826
and shall provide an approximate value for each automobile1827
selected to be transferred by the surviving spouse. The affidavit1828
shall also contain a description for each automobile for which the1829
decedent's interest is to be so transferred. The transfer does1830
not affect any liens upon any automobile for which the decedent's1831
interest is so transferred.1832

       (C) Upon the death of one of the persons who have1833
established joint ownership with right of survivorship under1834
section 2106.172131.12 of the Revised Code in a motor vehicle,1835
and upon presentation to a clerk of the title and the certificate1836
of death of the decedent, the clerk shall transfer title to the1837
motor vehicle to the survivor. The transfer does not affect any1838
liens upon any motor vehicle so transferred.1839

       (D) Upon the death of the owner of a motor vehicle1840
designated in beneficiary form under section 2131.13 of the1841
Revised Code, upon application for a certificate of title by the1842
transfer-on-death beneficiary or beneficiaries designated pursuant1843
to that section, and upon presentation to the clerk of the1844
certificate of title and the certificate of death of the decedent,1845
the clerk shall transfer the motor vehicle and issue a certificate1846
of title to the transfer-on-death beneficiary or beneficiaries.1847
The transfer does not affect any liens upon the motor vehicle so1848
transferred.1849

       Sec. 4549.08.  No person shall operate or drive a motor1850
vehicle upon the public roads and highways in this state if it1851
displays a license plate or a distinctive number or identification1852
mark that meets any of the following criteria:1853

       (A) Is fictitious;1854

       (B) Is a counterfeit or an unlawfully made copy of any1855
distinctive number or identification mark;1856

       (C) Belongs to another motor vehicle, provided that this1857
section does not apply to a motor vehicle that is operated on the1858
public roads and highways in this state when the motor vehicle1859
displays license plates that originally were issued for a motor1860
vehicle that previously was owned by the same person who owns the1861
motor vehicle that is operated on the public roads and highways in1862
this state, during the thirty-day period described in division1863
(C)(D) of section 4503.12 of the Revised Code.1864

       A person who fails to comply with the transfer of1865
registration provisions of section 4503.12 of the Revised Code and1866
is charged with a violation of that section shall not be charged1867
with a violation of this section.1868

       Sec. 4549.41.  As used in sections 4549.41 to 4549.51 of the1869
Revised Code:1870

       (A) "Person" includes an individual, corporation,1871
government, governmental subdivision or agency, business trust,1872
estate, trust, partnership, association, or cooperative or any1873
other legal entity, whether acting individually or by their1874
agents, officers, employees, or representatives.1875

       (B) "Motor vehicle" means any vehicle driven or drawn by1876
mechanical power for use on the public streets, roads, or1877
highways.1878

       (C) "Odometer" means an instrument for measuring and1879
recording the total distance whichthat a motor vehicle travels1880
while in operation, including any cable, line, or other part1881
necessary to make the instrument function properly. Odometer does1882
not include any auxiliary odometer designed to be reset by the1883
operator of a motor vehicle for the purpose of recording mileage1884
on trips.1885

       (D) "Transfer" means to change ownership of a motor vehicle1886
by purchase, by gift, or, except as otherwise provided in this1887
division, by any other means. A "transfer" does not include a1888
change of ownership as a result of a bequest, under the laws of1889
intestate succession, as a result of a surviving spouse's actions1890
pursuant to section 2106.18 or 4505.10 of the Revised Code, as a1891
result of the operation of section 2106.172131.12 or 2131.13 of1892
the Revised Code, or in connection with the creation of a security1893
interest.1894

       (E) "Transferor" means the person involved in a transfer,1895
who transfers ownership of a motor vehicle.1896

       (F) "Transferee" means the person involved in a transfer, to1897
whom the ownership of a motor vehicle is transferred.1898

       (G) "Service" means to repair or replace an odometer which1899
that is not properly functioning.1900

       Section 2. That existing sections 1339.66, 1339.68, 1340.22,1901
1547.54, 1548.07, 1548.071, 1548.08, 1548.11, 2106.17, 2106.18,1902
2107.27, 2107.28, 2109.62, 2113.30, 2113.61, 2117.25, 4503.12,1903
4505.06, 4505.10, 4549.08, and 4549.41 of the Revised Code are1904
hereby repealed.1905

       Section 3. Section 1548.07 of the Revised Code is presented1906
in this act as a composite of the section as amended by both Sub.1907
H.B. 458 and Am. Sub. S.B. 182 of the 120th General Assembly.1908
Section 4505.10 of the Revised Code is presented in this act as a1909
composite of the section as amended by both Am. Sub. S.B. 74 and1910
Sub. S.B. 59 of the 124th General Assembly. The General Assembly,1911
applying the principle stated in division (B) of section 1.52 of1912
the Revised Code that amendments are to be harmonized if1913
reasonably capable of simultaneous operation, finds that each1914
composite is the resulting version of the section in effect prior1915
to the effective date of the section as presented in this act.1916