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To amend sections 121.07, 1101.15, 1109.15, 1109.43, | 1 |
1111.02, 1111.04, 1111.06, 1111.07, 1111.08, | 2 |
1121.30, 1151.14, 1151.321, 1161.18, 1161.51, | 3 |
1181.25, 1315.21, 1315.99, 1733.25, 4719.01, and | 4 |
4973.17; to enact new sections 1151.348, 1315.01 | 5 |
to 1315.11, and 1315.16 to 1315.18; to enact | 6 |
sections 1161.601, 1315.081, 1315.101, 1315.12, | 7 |
1315.121, 1315.122, 1315.13, 1315.14, 1315.15, | 8 |
1315.151, 1315.152, 1315.153, and 1315.161; to | 9 |
repeal sections 1151.348, 1315.01, 1315.02, | 10 |
1315.03, 1315.04, 1315.05, 1315.06, 1315.07, | 11 |
1315.08, 1315.09, 1315.10, 1315.11, 1315.16, | 12 |
1315.17, and 1315.18; and to repeal section | 13 |
1125.28 of the Revised Code, as it results from | 14 |
S.B. 293 of the 121st General Assembly, to | 15 |
authorize financial institutions to enter into | 16 |
debt suspension and cancellation contracts; to | 17 |
authorize savings banks to engage in trust | 18 |
business; to require savings and loan associations | 19 |
only engage in trust business under the Trust | 20 |
Company Law; to change the function, operations, | 21 |
and investing authority of bankers' banks; to | 22 |
change entities that may be financial institution | 23 |
qualified trustees and entities that may transfer | 24 |
trust company business; to authorize a savings and | 25 |
loan association or a savings bank board of | 26 |
directors to create committees to carry out | 27 |
certain functions of the board; to modify the | 28 |
Money Transmitter Law, to remove Ohio Peace | 29 |
Officer Training Commission certification as a | 30 |
criterion for serving as a financial institution | 31 |
police officer, to exempt financial institution | 32 |
police officers who are employed as police | 33 |
officers before April 14, 2006, from peace officer | 34 |
training, and to declare an emergency. | 35 |
Section 1. That sections 121.07, 1101.15, 1109.15, 1109.43, | 36 |
1111.02, 1111.04, 1111.06, 1111.07, 1111.08, 1121.30, 1151.14, | 37 |
1151.321, 1161.18, 1161.51, 1181.25, 1315.21, 1315.99, 1733.25, | 38 |
4719.01, and 4973.17 be amended and new sections 1151.348, | 39 |
1315.01, 1315.02, 1315.03, 1315.04, 1315.05, 1315.06, 1315.07, | 40 |
1315.08, 1315.09, 1315.10, 1315.11, 1315.16, 1315.17, and 1315.18 | 41 |
and sections 1161.601, 1315.081, 1315.101, 1315.12, 1315.121, | 42 |
1315.122, 1315.13, 1315.14, 1315.15, 1315.151, 1315.152, 1315.153, | 43 |
and 1315.161 of the Revised Code be enacted to read as follows: | 44 |
Sec. 121.07. (A) Except as otherwise provided in this | 45 |
division, the officers mentioned in sections 121.04 and 121.05 of | 46 |
the Revised Code and the offices and divisions they administer | 47 |
shall be under the direction, supervision, and control of the | 48 |
directors of their respective departments, and shall perform such | 49 |
duties as the directors prescribe. In performing or exercising any | 50 |
of the examination or regulatory functions, powers, or duties | 51 |
vested by Title XI, Chapters 1733. and 1761., and sections 1315.01 | 52 |
to | 53 |
financial institutions, the superintendent of financial | 54 |
institutions and the division of financial institutions are | 55 |
independent of and are not subject to the control of the | 56 |
department or the director of commerce. | 57 |
(B) With the approval of the governor, the director of each | 58 |
department shall establish divisions within the department, and | 59 |
distribute the work of the department among such divisions. Each | 60 |
officer created by section 121.04 of the Revised Code shall be the | 61 |
head of such a division. | 62 |
With the approval of the governor, the director of each | 63 |
department may consolidate any two or more of the offices created | 64 |
in the department by section 121.04 of the Revised Code, or reduce | 65 |
the number of or create new divisions therein. | 66 |
The director of each department may prescribe rules for the | 67 |
government of the department, the conduct of its employees, the | 68 |
performance of its business, and the custody, use, and | 69 |
preservation of the records, papers, books, documents, and | 70 |
property pertaining thereto. | 71 |
Sec. 1101.15. (A)(1) Except as provided in division (A)(2) | 72 |
of this section, no person other than a bank doing business under | 73 |
authority granted by the superintendent of financial institutions, | 74 |
the bank chartering authority of another state, the office of the | 75 |
comptroller of the currency, or the bank chartering authority of a | 76 |
foreign country shall do either of the following: | 77 |
(a) Use "bank," "banker," or "banking," or a word or words of | 78 |
similar meaning in any other language, in a designation or name, | 79 |
or as any part of a designation or name, under which business is | 80 |
or may be conducted in this state; | 81 |
(b) Represent itself as a bank. | 82 |
(2)(a) A corporation doing business under Chapter 1151. of | 83 |
the Revised Code may use the word "bank," "banker," or "banking," | 84 |
or a word or words of similar meaning in any other language, in or | 85 |
as part of a designation or name under which business is or may be | 86 |
conducted in this state, as provided in section 1151.07 of the | 87 |
Revised Code. | 88 |
(b) A corporation doing business under Chapter 1161. of the | 89 |
Revised Code may use the word "bank," "banker," or "banking," or a | 90 |
word or words of similar meaning in any other language, in or as | 91 |
part of a designation or name under which business is or may be | 92 |
conducted in this state, as provided in section 1161.09 of the | 93 |
Revised Code. | 94 |
(c) A corporation doing business under authority granted by | 95 |
the office of thrift supervision may use the word "bank," | 96 |
"banker," or "banking," or a word or words of similar meaning in | 97 |
any other language, in or as part of a designation or name under | 98 |
which business is or may be conducted in this state. | 99 |
(d) A person, whether operating for profit or not, may use | 100 |
the word "bank," "banker," or "banking," or a word or words of | 101 |
similar meaning in any other language, in or as part of a | 102 |
designation or name under which business is or may be conducted if | 103 |
the superintendent determines the name, on its face, is not likely | 104 |
to mislead the public and authorizes the use of the name. | 105 |
(B)(1) Except as provided in division (B)(2) of this section, | 106 |
no person, other than a corporation licensed in accordance with | 107 |
authority granted in Chapter 1111. of the Revised Code as a trust | 108 |
company, | 109 |
110 | |
bank with trust powers, or a federal savings association with | 111 |
trust powers, shall do either of the following: | 112 |
(a) Use the word "trust," or a word or words of similar | 113 |
meaning in any other language, in a designation or name, or as any | 114 |
part of a designation or name, under which business is or may be | 115 |
conducted in this state; | 116 |
(b) Otherwise represent itself as a fiduciary or trust | 117 |
company. | 118 |
(2)(a) A person that is not required to be licensed under | 119 |
Chapter 1111. of the Revised Code may serve as a fiduciary and, | 120 |
when acting in that fiduciary capacity, otherwise represent such | 121 |
person as a fiduciary. | 122 |
(b) A person licensed by another state to serve as a | 123 |
fiduciary and exempt from licensure under Chapter 1111. of the | 124 |
Revised Code may serve as a fiduciary to the extent permitted by | 125 |
the exemption. | 126 |
(c) A savings and loan association may serve as a trustee to | 127 |
the extent authorized by section 1151.191 of the Revised Code. | 128 |
(d) A savings bank may serve as a trustee to the extent | 129 |
authorized by section 1161.24 of the Revised Code. | 130 |
(e) A charitable trust, business trust, real estate | 131 |
investment trust, personal trust, or other bona fide trust may use | 132 |
the word "trust" or a word or words of similar meaning in any | 133 |
other language, in a designation or name, or as part of a | 134 |
designation or name, under which business is or may be conducted. | 135 |
(f) A person, whether operating for profit or not, may use | 136 |
"trust" or a word or words of similar meaning in any other | 137 |
language, in a designation or name, or as part of a designation or | 138 |
name, under which business is or may be conducted, if the | 139 |
superintendent determines the name, on its face, is not likely to | 140 |
mislead the public and authorizes the use of the name. | 141 |
(C) No bank shall use "state" as part of a designation or | 142 |
name under which it transacts business in this state, unless the | 143 |
bank is doing business under authority granted by the | 144 |
superintendent or the bank chartering authority of another state. | 145 |
Sec. 1109.15. (A)(1) Subject to the restrictions and | 146 |
limitations of the Revised Code, a bank may do any of the | 147 |
following: | 148 |
(a) Loan money, with or without security, and payable on | 149 |
demand, at maturity, in installments, or by any combination of | 150 |
these; | 151 |
(b) Issue, advise, and confirm letters of credit authorizing | 152 |
the beneficiaries of the letters to draw upon the bank or its | 153 |
correspondents; | 154 |
(c) Purchase open accounts, whether or not the accounts | 155 |
represent an evidence of debt. | 156 |
(2) Subject to the margin requirements the superintendent of | 157 |
financial institutions may prescribe by rule, a bank may make | 158 |
loans secured by stocks, bonds, or other securities. | 159 |
(B) Subject to sections 1109.22, 1109.32, and 1109.47 of the | 160 |
Revised Code and
any rules the superintendent | 161 |
prescribes, a bank may purchase obligations of any kind with or | 162 |
without recourse. | 163 |
(C) A bank may acquire personal property for lease to others, | 164 |
if the transaction, as a whole, has the character of an extension | 165 |
of credit. | 166 |
(D) Subject to any restrictions and limitations of the | 167 |
Revised Code and to any restrictions or requirements established | 168 |
by the superintendent, a bank may enter into a debt suspension or | 169 |
debt cancellation contract with a borrower or borrowers in | 170 |
connection with any loan or extension of credit. | 171 |
(E) Unless otherwise expressly agreed in writing, the | 172 |
relationship between a bank and its obligor, with respect to any | 173 |
extension of credit, is that of a creditor and debtor, and creates | 174 |
no fiduciary or other relationship between the parties. | 175 |
Sec. 1109.43. (A) For purposes of this section: | 176 |
(1) "Bankers' bank" means a bank organized to engage | 177 |
exclusively in providing services to other depository institutions | 178 |
and depository institution holding companies and their officers, | 179 |
directors, and employees. | 180 |
(2) "Bankers' bank holding company" means a corporation that | 181 |
owns or controls, directly or indirectly, a majority of the shares | 182 |
of the capital stock of a bankers' bank, or controls in any manner | 183 |
the election of a majority of the directors of a bankers' bank. | 184 |
(3) "Depository institution" means a bank, savings and loan | 185 |
association, savings bank, or credit union. | 186 |
(B) A bank may invest, in the aggregate, up to ten per cent | 187 |
of its | 188 |
a bankers' bank holding company, or both. | 189 |
(C)(1) The voting shares of a bankers' bank shall be owned by | 190 |
twenty or more depository institutions or depository institution | 191 |
holding companies, and no depository institution or depository | 192 |
institution holding company shall own, directly or indirectly, | 193 |
more than fifteen per cent of the voting shares of a bankers' | 194 |
bank. | 195 |
(2) The voting shares of a bankers' bank shall be owned, | 196 |
directly or indirectly, exclusively by depository institutions, | 197 |
depository institution holding companies, and persons who hold the | 198 |
shares under, or initially acquired them through, a plan for the | 199 |
benefit of the bankers' bank's officers and employees. | 200 |
(D) No bank or affiliate of a bank shall, directly, | 201 |
indirectly, or acting through one or more other persons, own or | 202 |
control or have the power to vote shares of any of the following: | 203 |
(1) More than one bankers' bank; | 204 |
(2) More than one bankers' bank holding company; | 205 |
(3) Both a bankers' bank and a bankers' bank holding company, | 206 |
unless the bankers' bank is an affiliate of that bankers' bank | 207 |
holding company. | 208 |
Sec. 1111.02. (A) Except as provided in divisions (B) and | 209 |
(C) of this section, no person shall solicit or engage in trust | 210 |
business in this state except a corporation that is one of the | 211 |
following: | 212 |
(1) A corporation licensed under section 1111.06 of the | 213 |
Revised Code that is one of the following: | 214 |
(a) A bank doing business under authority granted by the | 215 |
superintendent of financial institutions; | 216 |
(b) A savings and loan association doing business under | 217 |
authority granted by the superintendent of financial institutions; | 218 |
(c) A savings bank doing business under authority granted by | 219 |
the superintendent of financial institutions; | 220 |
(d) A bank authorized to accept and execute trusts and doing | 221 |
business under authority granted by the bank chartering authority | 222 |
of another state or country; | 223 |
| 224 |
state or country and authorized to accept and execute trusts in | 225 |
that state or country. | 226 |
(2) A bank authorized to accept and execute trusts and doing | 227 |
business under authority granted by the comptroller of the | 228 |
currency; | 229 |
(3) A savings association authorized to accept and execute | 230 |
trusts and doing business under authority granted by the office of | 231 |
thrift supervision; | 232 |
(4) A savings and loan association | 233 |
234 | |
granted by the superintendent of financial institutions; | 235 |
(5) A savings bank doing business under authority granted by | 236 |
the superintendent of financial institutions. | 237 |
(B) This chapter shall not apply to any of the following: | 238 |
(1) A savings and loan association serving as a trustee to | 239 |
the extent authorized by section 1151.191 of the Revised Code; | 240 |
(2) A savings bank serving as a trustee to the extent | 241 |
authorized by section 1161.24 of the Revised Code; | 242 |
(3) A corporation that is incorporated under the laws of | 243 |
another state or the United States, has its principal place of | 244 |
business in another state, is currently qualified to do and is | 245 |
engaging in trust business in the state where the corporation has | 246 |
its principal place of business, and is doing any of the | 247 |
following: | 248 |
(a) Serving as ancillary executor or administrator of | 249 |
property in this state that is in the estate of a decedent, after | 250 |
appointment as executor or administrator of the estate by the | 251 |
courts of the decedent's state of residence; | 252 |
(b) As trustee, acquiring, holding, or transferring a | 253 |
security interest in lands or other property in this state, by | 254 |
mortgage, deed of trust, or other instrument, to secure any | 255 |
evidence of indebtedness; | 256 |
(c) Certifying to any evidence of indebtedness. | 257 |
(C) The following persons shall not be subject to this | 258 |
chapter until July 1, 1997: | 259 |
(1) Any person, other than a person described in division (A) | 260 |
or (B) of this section, that is serving as a fiduciary under a | 261 |
trust instrument, will, or other document executed before July 1, | 262 |
1997; | 263 |
(2) Any person, other than a person described in division (A) | 264 |
or (B) of this section, that is named as a fiduciary in, or is | 265 |
nominated as a fiduciary under, a trust instrument, will, or other | 266 |
document executed before July 1, 1997. | 267 |
Sec. 1111.04. (A) Prior to soliciting or engaging in trust | 268 |
business in this state, a trust company shall pledge to the | 269 |
treasurer of state interest bearing securities authorized in | 270 |
division (B) of this section, having a par value, not including | 271 |
unaccrued interest, of one hundred thousand dollars, and approved | 272 |
by the superintendent of financial institutions. The trust company | 273 |
may pledge the securities either by delivery to the treasurer of | 274 |
state or by placing the securities with a qualified trustee for | 275 |
safekeeping to the account of the treasurer of state, the | 276 |
corporate fiduciary, and any other person having an interest in | 277 |
the securities under Chapter 1109. of the Revised Code, as their | 278 |
respective interests may appear and be asserted by written notice | 279 |
to or demand upon the qualified trustee or by order of judgment of | 280 |
a court. | 281 |
(B) Securities pledged by a trust company to satisfy the | 282 |
requirements of division (A) of this section shall be one or more | 283 |
of the following: | 284 |
(1) Bonds, notes, or other obligations of or guaranteed by | 285 |
the United States or for which the full faith and credit of the | 286 |
United States is pledged for the payment of principal and | 287 |
interest; | 288 |
(2) Bonds, notes, debentures, or other obligations or | 289 |
securities issued by any agency or instrumentality of the United | 290 |
States; | 291 |
(3) General obligations of this or any other state of the | 292 |
United States or any subdivision of this or any other state of the | 293 |
United States. | 294 |
(C) The treasurer of state shall accept delivery of | 295 |
securities pursuant to this section when accompanied by the | 296 |
superintendent's approval of the securities or the written receipt | 297 |
of a qualified trustee describing the securities and showing the | 298 |
superintendent's approval of the securities, and shall issue a | 299 |
written acknowledgment of the delivery of the securities or the | 300 |
qualified trustee's receipt and the superintendent's approval to | 301 |
the trust company. | 302 |
(D) The superintendent shall approve securities to be pledged | 303 |
by a trust company pursuant to this section if the securities are | 304 |
all of the following: | 305 |
(1) Interest bearing and of the value required by division | 306 |
(A) of this section; | 307 |
(2) Of one or more of the kinds authorized by division (B) of | 308 |
this section and not a derivative of or merely an interest in any | 309 |
of those securities; | 310 |
(3) Not in default. | 311 |
(E) The treasurer of state shall, with the approval of the | 312 |
superintendent, permit a trust company to pledge securities in | 313 |
substitution for securities pledged pursuant to this section and | 314 |
the withdrawal of the securities substituted for so long as the | 315 |
securities remaining pledged satisfy the requirements of division | 316 |
(A) of this section. The treasurer of state shall permit a trust | 317 |
company to collect interest paid on securities pledged pursuant to | 318 |
this section so long as the trust company is solvent. The | 319 |
treasurer of state shall, with the approval of the superintendent, | 320 |
permit a trust company to withdraw securities pledged pursuant to | 321 |
this section when the trust company has ceased to solicit or | 322 |
engage in trust business in this state. | 323 |
(F) For purposes of this section, a qualified trustee is a | 324 |
federal reserve bank | 325 |
326 | |
327 | |
defined in section 1101.01 of the Revised Code, a bank that has | 328 |
pledged securities pursuant to this section, is authorized to | 329 |
accept and execute trusts, and is doing business under authority | 330 |
granted by the comptroller of currency, or a savings association | 331 |
that has pledged securities pursuant to this section, is | 332 |
authorized to accept and execute trusts, and is doing business | 333 |
under authority granted by the office of thrift supervision except | 334 |
that a bank doing business under authority granted by the | 335 |
comptroller of the currency, a savings association doing business | 336 |
under authority granted by the office of thrift supervision, or a | 337 |
trust company may not act as a qualified trustee for securities it | 338 |
or any of its affiliates is pledging pursuant to this section. | 339 |
(G) The superintendent, with the approval of the treasurer of | 340 |
state and the attorney general, shall prescribe the form of all | 341 |
receipts and acknowledgments provided for by this section, and | 342 |
upon request shall furnish a copy of each form, with the | 343 |
superintendent's certification attached, to each qualified trustee | 344 |
eligible to hold securities for safekeeping under this section. | 345 |
Sec. 1111.06. (A) Any person, other than a | 346 |
347 | |
348 | |
savings association with trust powers, proposing to solicit or | 349 |
engage in trust business in this state shall apply to the | 350 |
superintendent of financial institutions to be licensed as a trust | 351 |
company. The superintendent shall approve or disapprove the | 352 |
application within sixty days after accepting it. | 353 |
(B) In determining whether to approve or disapprove an | 354 |
application for a trust company license, the superintendent shall | 355 |
consider all of the following: | 356 |
(1) Whether the applicant is a corporation described in | 357 |
division (A)(1) of section 1111.02 of the Revised Code; | 358 |
(2) Whether the applicant's articles of incorporation or | 359 |
association authorize the applicant to serve as a trustee; | 360 |
(3) If the applicant is not a bank, savings and loan | 361 |
association, or savings bank doing business under authority | 362 |
granted by the superintendent, whether the applicant is currently | 363 |
qualified to do and is engaging in trust business in the state or | 364 |
country under the laws of which the applicant is organized; | 365 |
(4) Whether the applicant satisfies the requirements of | 366 |
section 1111.05 of the Revised Code; | 367 |
(5) Whether it is reasonable to believe the applicant will | 368 |
comply with applicable laws and observe sound fiduciary standards | 369 |
in conducting trust business in this state; | 370 |
(6) If the applicant is not a bank, savings and loan | 371 |
association, or savings bank doing business under authority | 372 |
granted by the superintendent, whether the applicant is subject to | 373 |
comprehensive supervision and regulation of its fiduciary | 374 |
activities by appropriate authorities of the state or country | 375 |
under the laws of which the applicant is organized. | 376 |
(C) In approving an application for a trust company license, | 377 |
the superintendent may impose any condition the superintendent | 378 |
determines to be appropriate. | 379 |
(D) When an applicant has satisfied all prior conditions | 380 |
imposed by the superintendent in approving the applicant's | 381 |
application for a trust company license and has pledged securities | 382 |
as required by section 1111.04 of the Revised Code, the | 383 |
superintendent shall issue the applicant a trust company license. | 384 |
A license issued pursuant to this section shall remain in force | 385 |
and effect until surrendered by the licensee pursuant to section | 386 |
1111.31 of the Revised Code or suspended or revoked by the | 387 |
superintendent pursuant to section 1111.32 of the Revised Code. | 388 |
Sec. 1111.07. (A) A trust company's license to solicit or | 389 |
engage in trust business in this state is not transferable or | 390 |
assignable. | 391 |
(B) Subject to section 2109.28 of the Revised Code, if any | 392 |
trust company enters into a merger or consolidation in which the | 393 |
trust company is not the surviving corporation, or transfers all | 394 |
or substantially all of its assets and liabilities to another | 395 |
corporation, the resulting, surviving, or transferee corporation | 396 |
shall succeed the trust company as fiduciary as a matter of law | 397 |
and without necessity to do anything further, if the resulting, | 398 |
surviving, or transferee corporation is a trust company, a | 399 |
national bank authorized to accept and execute trusts and doing | 400 |
business under authority granted by the comptroller of the | 401 |
currency, or a federal savings association authorized to accept | 402 |
and execute trusts and doing business under authority granted by | 403 |
the office of thrift supervision | 404 |
405 | |
If the trust company is not the surviving corporation of a merger, | 406 |
enters a consolidation, or after transferring substantially all of | 407 |
its assets and liabilities ceases to solicit or engage in trust | 408 |
business in this state, the trust company shall surrender its | 409 |
trust company license in accordance with section 1111.31 of the | 410 |
Revised Code. | 411 |
Sec. 1111.08. (A) A trust company, a national bank | 412 |
authorized to accept and execute trusts and doing business under | 413 |
authority granted by the comptroller of the currency, or a federal | 414 |
savings association authorized to accept and execute trusts and | 415 |
doing business under authority granted by the office of thrift | 416 |
supervision may transfer all or part of its trust business in this | 417 |
state to another trust company, to a national bank authorized to | 418 |
accept and execute trusts and doing business under authority | 419 |
granted by the comptroller of the currency, or to a federal | 420 |
savings association authorized to accept and execute trusts and | 421 |
doing business under authority granted by the office of thrift | 422 |
supervision, if all of the following have occurred: | 423 |
(1) Not less than sixty days before consummation of the | 424 |
transfer, either the transferor or transferee, or both, for each | 425 |
fiduciary account or relationship to be transferred, has given | 426 |
written notice, by regular mail to the most recent address shown | 427 |
on the records of the transferor, to all of the following that | 428 |
apply: | 429 |
(a) Each court having jurisdiction over the fiduciary account | 430 |
or relationship; | 431 |
(b) Each cofiduciary of the fiduciary account or | 432 |
relationship; | 433 |
(c) Each surviving settlor of the trust; | 434 |
(d) Each person that, alone or in conjunction with others, | 435 |
has the power to remove the trust company as fiduciary or appoint | 436 |
a successor fiduciary; | 437 |
(e) Except in the case of a trust described in section 401(a) | 438 |
of the "Internal Revenue Code of 1986," 100 Stat. 2085, 26 | 439 |
U.S.C.A. 401(a), as amended, each adult beneficiary currently | 440 |
receiving or entitled as a matter of right to receive a | 441 |
distribution of principal or income from the trust, estate, or | 442 |
fund; | 443 |
(f) In the case of a trust described in section 401(a) of the | 444 |
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. | 445 |
401(a), as amended, the employer or employee organization, or | 446 |
both, responsible for the maintenance of the trust. | 447 |
(2) The transferor has filed a certified copy of the | 448 |
agreement for the sale with the superintendent of financial | 449 |
institutions. | 450 |
(B)(1) The transfer of a fiduciary account or relationship | 451 |
pursuant to division (A) of this section results in the transferee | 452 |
being substituted for the transferor as fiduciary as a matter of | 453 |
law and without necessity to do anything further. | 454 |
(2) The transfer of a fiduciary account or relationship | 455 |
pursuant to division (A) of this section does neither of the | 456 |
following: | 457 |
(a) Impair the right of any person that, alone or in | 458 |
conjunction with others, has the power to remove a fiduciary or | 459 |
appoint a successor fiduciary; | 460 |
(b) Absolve or discharge a transferor from any liability | 461 |
arising out of its breach of any fiduciary duty or obligation to | 462 |
the account prior to the transfer. | 463 |
Sec. 1121.30. (A) All assessments, fees, charges, and | 464 |
forfeitures provided for in Chapters 1101. to 1127. and sections | 465 |
466 | |
Code, except civil penalties assessed pursuant to section 1121.35 | 467 |
or 1315.152 of the Revised Code, shall be paid to the | 468 |
superintendent of financial institutions, and the superintendent | 469 |
shall deposit them into the state treasury to the credit of the | 470 |
banks fund, which is hereby created. | 471 |
(B) The superintendent may expend or obligate the banks fund | 472 |
to defray the costs of the division of financial institutions in | 473 |
administering Chapters 1101. to 1127. and sections 1315.01 to | 474 |
475 | |
superintendent shall pay from the fund all actual and necessary | 476 |
expenses incurred by the superintendent, including for any | 477 |
services rendered by the department of commerce for the division's | 478 |
administration of Chapters 1101. to 1127. and sections 1315.01 to | 479 |
480 | |
shall be assessed a proportionate share of the administrative | 481 |
costs of the department and the division of financial | 482 |
institutions. The proportionate share of the administration costs | 483 |
of the division of financial institutions shall be determined in | 484 |
accordance with procedures prescribed by the superintendent and | 485 |
approved by the director of budget and management. The amount | 486 |
assessed for the fund's proportional share of the department's | 487 |
administrative costs and the division's administrative costs shall | 488 |
be paid from the banks fund to the division of administration fund | 489 |
and the division of financial institutions fund respectively. | 490 |
(C) Any money deposited into the state treasury to the credit | 491 |
of the banks fund, but not expended or encumbered by the | 492 |
superintendent to defray the costs of administering Chapters 1101. | 493 |
to 1127. and sections
1315.01 to | 494 |
the Revised Code, shall remain in the banks fund for expenditures | 495 |
by the superintendent in subsequent years. | 496 |
Sec. 1151.14. | 497 |
savings and loan | 498 |
499 | |
500 | |
501 | |
502 | |
503 | |
504 | |
505 | |
506 | |
507 | |
the savings and loan association's constitution provides for a | 508 |
different frequency of meetings, which shall not be less than | 509 |
quarterly. | 510 |
(2) Division (A)(1) of this section does not prohibit either | 511 |
of the following: | 512 |
(a) More frequent meetings of a savings and loan | 513 |
association's board of directors than required by division (A)(1) | 514 |
of this section; | 515 |
(b) The superintendent of financial institutions requiring a | 516 |
savings and loan association's board of directors to meet more | 517 |
frequently than required by division (A)(1) of this section if the | 518 |
superintendent determines more frequent meetings are appropriate | 519 |
because of circumstances regarding the savings and loan | 520 |
association. | 521 |
(B) A savings and loan association's constitution may | 522 |
authorize the board of directors to do both of the following: | 523 |
(1) Create an executive committee or any other committee of | 524 |
the board of directors, each consisting of at least three | 525 |
directors; | 526 |
(2) Delegate to an executive committee or other committee of | 527 |
the board of directors described in division (B)(1) of this | 528 |
section, any authority of the board of directors, however | 529 |
conferred, other than the authority to fill vacancies on the board | 530 |
of directors or to fill vacancies on a committee of the board of | 531 |
directors. | 532 |
(C) All of the following apply to any executive committee or | 533 |
other committee described in division (B) of this section: | 534 |
(1) The board of directors may appoint one or more of the | 535 |
directors as alternate members of a committee of the board of | 536 |
directors to take the place of any absent member at any meeting of | 537 |
the committee of the board of directors. | 538 |
(2) Each committee of the board of directors serves at the | 539 |
pleasure of the board of directors, acts only in intervals between | 540 |
meetings of the board of directors, and is subject to the control | 541 |
and direction of the board of directors. | 542 |
(3) Unless otherwise provided in the constitution or ordered | 543 |
by the board of directors, a committee of the board of directors | 544 |
may act by a majority of its members at a meeting or by a writing | 545 |
or writings signed by all of its members. | 546 |
(4) An act or authorization of an act by a committee of the | 547 |
board of directors that is within the authority delegated to the | 548 |
committee is as effective for all purposes as an act or | 549 |
authorization of an act done by the board of directors. | 550 |
Sec. 1151.321. | 551 |
(B) of this section, a savings and loan association may cancel | 552 |
loans mentioned in
sections 1151.29 to 1151.32 | 553 |
Revised Code, and release the securities for them on such terms as | 554 |
its board of directors provides. | 555 |
(B) Subject to any restrictions or requirements established | 556 |
by the superintendent of financial institutions, in connection | 557 |
with any loan or extension of credit, a savings and loan | 558 |
association may enter into a debt suspension or debt cancellation | 559 |
contract with the borrower or borrowers. | 560 |
Sec. 1151.348. (A) A savings and loan association authorized | 561 |
to do business by the division of financial institutions pursuant | 562 |
to Chapters 1151. to 1157. of the Revised Code may engage in trust | 563 |
business after obtaining a license under section 1111.06 of the | 564 |
Revised Code. | 565 |
(B) Except as provided in division (C) of this section, a | 566 |
savings and loan association that is licensed under section | 567 |
1111.06 of the Revised Code is a trust company as defined in | 568 |
division (S) of section 1101.01 of the Revised Code for purposes | 569 |
of Chapter 1111. of the Revised Code and of all laws applicable to | 570 |
a trust company. | 571 |
(C) The division shall supervise any savings and loan | 572 |
association licensed as a trust company under Chapter 1111. of the | 573 |
Revised Code pursuant to Chapters 1151. to 1157. of the Revised | 574 |
Code, except that the division may apply provisions in Chapter | 575 |
1111. of the Revised Code in the case of a voluntary or forced | 576 |
liquidation of a savings and loan association's trust business. | 577 |
Sec. 1161.18. | 578 |
579 | |
580 | |
581 | |
582 | |
583 | |
584 | |
585 | |
586 | |
587 | |
meet monthly unless the savings bank's constitution provides for a | 588 |
different frequency or meetings, which shall not be less than | 589 |
quarterly. | 590 |
(2) Division (A)(1) of this section does not prohibit either | 591 |
of the following: | 592 |
(a) More frequent meetings of a savings bank's board of | 593 |
directors than required by division (A)(1) of this section; | 594 |
(b) The superintendent of financial institutions requiring a | 595 |
savings bank's board of directors to meet more frequently than | 596 |
required by division (A)(1) of this section if the superintendent | 597 |
determines more frequent meetings are appropriate because of | 598 |
circumstances regarding the savings bank. | 599 |
(B) A savings bank's constitution may authorize the board of | 600 |
directors to do both of the following: | 601 |
(1) Create an executive committee or any other committee of | 602 |
the board of directors, each consisting of at least three | 603 |
directors; | 604 |
(2) Delegate to an executive committee or other committee of | 605 |
the board of directors described in division (B)(1) of this | 606 |
section, any authority of the board of directors, however | 607 |
conferred, other than the authority to fill vacancies on the board | 608 |
of directors or to fill vacancies on a committee of the board of | 609 |
directors. | 610 |
(C) All of the following apply to any executive committee or | 611 |
other committee described in division (B) of this section: | 612 |
(1) The board of directors may appoint one or more of the | 613 |
directors as alternate members of a committee of the board of | 614 |
directors to take the place of any absent member at any meeting of | 615 |
the committee of the board of directors. | 616 |
(2) Each committee of the board of directors serves at the | 617 |
pleasure of the board of directors, acts only in intervals between | 618 |
meetings of the board of directors, and is subject to the control | 619 |
and direction of the board of directors. | 620 |
(3) Unless otherwise provided in the constitution or ordered | 621 |
by the board of directors, a committee of the board of directors | 622 |
may act by a majority of its members at a meeting or by a writing | 623 |
or writings signed by all of its members. | 624 |
(4) An act or authorization of an act by a committee of the | 625 |
board of directors that is within the authority delegated to the | 626 |
committee is as effective for all purposes as an act or | 627 |
authorization of an act done by the board of directors. | 628 |
Sec. 1161.51. | 629 |
this section, a savings bank may cancel loans mentioned in | 630 |
sections 1161.36 to 1161.50 of the Revised Code, and release the | 631 |
securities for them on such terms as its board of directors | 632 |
provides. | 633 |
(B) Subject to any restrictions or requirements established | 634 |
by the superintendent of financial institutions, in connection | 635 |
with any loan or extension of credit, a savings bank may enter | 636 |
into a debt suspension or debt cancellation contract with the | 637 |
borrower or borrowers. | 638 |
Sec. 1161.601. (A) A savings bank authorized to do business | 639 |
by the division of financial institutions pursuant to Chapters | 640 |
1161. to 1165. of the Revised Code may engage in trust business | 641 |
after obtaining a license under section 1111.06 of the Revised | 642 |
Code. | 643 |
(B) Except as provided in division (C) of this section, a | 644 |
savings bank that is licensed under section 1111.06 of the Revised | 645 |
Code is a trust company as defined in division (S) of section | 646 |
1101.01 of the Revised Code for purposes of Chapter 1111. of the | 647 |
Revised Code and of all laws applicable to a trust company. | 648 |
(C) The division shall supervise any savings bank licensed as | 649 |
a trust company under Chapter 1111. of the Revised Code pursuant | 650 |
to Chapters 1161. to 1165. of the Revised Code, except that the | 651 |
division may apply provisions in Chapter 1111. of the Revised Code | 652 |
in the case of a voluntary or forced liquidation of a savings | 653 |
bank's trust business. | 654 |
Sec. 1181.25. The superintendent of financial institutions | 655 |
may introduce into evidence or disclose, or authorize to be | 656 |
introduced into evidence or disclosed, information that, under | 657 |
sections 1121.18, 1155.16, 1163.20, 1315.122, 1321.09, 1321.55, | 658 |
1321.76, 1322.06, 1322.061, 1733.32, 1733.327, and 4727.18 of the | 659 |
Revised Code, is privileged, confidential, or otherwise not public | 660 |
information or a public record, provided that the superintendent | 661 |
acts only as provided in those sections or in the following | 662 |
circumstances: | 663 |
(A) When in the opinion of the superintendent, it is | 664 |
appropriate with regard to any enforcement actions taken and | 665 |
decisions made by the superintendent under Chapters 1315., 1321., | 666 |
1322., 1733., 4712., 4727., and 4728. of the Revised Code or Title | 667 |
XI of the Revised Code; | 668 |
(B) When litigation has been initiated by the superintendent | 669 |
in furtherance of the powers, duties, and obligations imposed upon | 670 |
the superintendent by Chapters 1315., 1321., 1322., 1733., 4712., | 671 |
4727., and 4728. of the Revised Code or Title XI of the Revised | 672 |
Code; | 673 |
(C) When in the opinion of the superintendent, it is | 674 |
appropriate with regard to enforcement actions taken or decisions | 675 |
made by other financial institution regulatory authorities to whom | 676 |
the superintendent has provided the information pursuant to | 677 |
authority in Chapters 1315., 1321., 1322., 1733., 4712., 4727., | 678 |
and 4728. of the Revised Code or Title XI of the Revised Code. | 679 |
Sec. 1315.01. Except when the context otherwise requires, as | 680 |
used in sections 1315.01 to 1315.18 of the Revised Code: | 681 |
(A) "Authorized delegate" means a person designated by a | 682 |
licensee under section 1315.11 of the Revised Code to receive, | 683 |
directly or indirectly, money or its equivalent for transmission | 684 |
by the licensee. | 685 |
(B) "Control" means the power, directly or indirectly, to | 686 |
direct the management and policies of a licensee or the ownership, | 687 |
control of, or power to vote twenty-five per cent or more of any | 688 |
class of the outstanding voting securities of a controlling | 689 |
person. For purposes of determining the percentage of a licensee | 690 |
controlled by any person, the person's interest shall be | 691 |
aggregated with the interest of any other person controlled by the | 692 |
person or by any spouse, parent, or child of the person. | 693 |
(C) "Controlling person" means any person that controls a | 694 |
licensee. | 695 |
(D) "Executive officer" means the licensee's president, | 696 |
treasurer, secretary, each senior officer responsible for the | 697 |
licensee's business, and any other person that performs similar | 698 |
functions. | 699 |
(E) "Licensee" means a person licensed under sections 1315.01 | 700 |
to 1315.18 of the Revised Code to receive, directly or indirectly, | 701 |
for transmission, money or its equivalent from persons located in | 702 |
this state. | 703 |
(F) "Outstandings" means the total of all moneys received for | 704 |
transmission that are not yet delivered, paid, or accessed. | 705 |
(G) "Transmit money" means to receive, directly or indirectly | 706 |
and by any means, money or its equivalent from a person and to | 707 |
deliver, pay, or make accessible, by any means, method, manner, or | 708 |
device, whether or not a payment instrument is used, the money | 709 |
received or its equivalent to the same or another person, at the | 710 |
same or another time, and at the same or another place, but does | 711 |
not include transactions in which the recipient of the money or | 712 |
its equivalent is the principal or authorized representative of | 713 |
the principal in a transaction for which the money or its | 714 |
equivalent is received, other than the transmission of money or | 715 |
its equivalent. "Transmit money" also includes the sale of checks | 716 |
and other payment instruments. | 717 |
Sec. 1315.02. (A) No person, regardless of the location of | 718 |
that person, its facilities, or its agents, shall receive, | 719 |
directly or indirectly and by any means, money or its equivalent | 720 |
for transmission from a person located in this state, unless that | 721 |
person receiving the money or its equivalent for transmission is a | 722 |
licensee, an authorized delegate of a licensee that is not itself | 723 |
required to be licensed under division (B) of this section, or is | 724 |
one of the following: | 725 |
(1) The United States or any department, agency, or | 726 |
instrumentality of the United States; | 727 |
(2) The United States postal service; | 728 |
(3) A state of the United States or any political subdivision | 729 |
of a state of the United States; | 730 |
(4) A bank, credit union, savings and loan association, | 731 |
savings association, or savings bank organized under the laws of | 732 |
the United States or any state of the United States or doing | 733 |
business under a license granted under Chapter 1119. of the | 734 |
Revised Code, a subsidiary or affiliate of a bank, savings and | 735 |
loan association, or savings bank or credit union service | 736 |
organization or an authorized representative of any of these; | 737 |
(5) A contractor providing electronic transfer of government | 738 |
benefits on behalf of the United States or any department, agency, | 739 |
or instrumentality of the United States or on behalf of any state | 740 |
or any political subdivision of the United States; | 741 |
(6) A person the only money transmitter activity of which is | 742 |
to deliver payroll money on behalf of employers to employees by | 743 |
check or deposit in a checking or savings account at a bank, | 744 |
savings bank, savings and loan association, savings association, | 745 |
or credit union; | 746 |
(7) A person the only money transmitter activity of which is | 747 |
to accept prepayment for future purchases of that person's goods | 748 |
or services that are other than money transmitter services; | 749 |
(8) A licensed securities, insurance, mortgage, or real | 750 |
estate broker or agent acting within the scope of its license; | 751 |
(9) A person the only money transmitter activity of which is | 752 |
receiving money or its equivalent as an intermediary facilitating | 753 |
the closing of a sale of property or a loan; | 754 |
(10) A retail seller of goods and services the only money | 755 |
transmitter activities of which are receipt of money or its | 756 |
equivalent from and to be delivered at the direction of an obligor | 757 |
on a credit card account for a credit card to be used solely for | 758 |
purchases from that retail seller or branded with the name of that | 759 |
retail seller or an affiliate of that retail seller; | 760 |
(11) A person, the regulation of money transmitter activities | 761 |
under sections 1315.01 to 1315.18 of the Revised Code of which, | 762 |
the superintendent of financial institutions determines would not | 763 |
serve the intended purposes of the regulation. | 764 |
(B) No authorized delegate of a licensee also shall do | 765 |
accounting, verification, or reconciliation of transmissions | 766 |
completed or bank statements for a licensee, unless the authorized | 767 |
delegate also is a licensee. | 768 |
Sec. 1315.03. (A) Each application for a money transmitter | 769 |
license shall be in the form prescribed by the superintendent of | 770 |
financial institutions and accompanied by an application fee | 771 |
established in section 1315.13 of the Revised Code. | 772 |
(B)(1) The superintendent shall approve or deny every | 773 |
application for a license under this section within one hundred | 774 |
eighty days after the date that the superintendent accepts the | 775 |
application as complete, unless the applicant has, by written | 776 |
consent, agreed to a longer time for the superintendent to make a | 777 |
determination on the application. | 778 |
(2) Subject to division (D) of this section, an application | 779 |
is not complete and the superintendent shall not accept it for | 780 |
processing until the applicant pays the application fee described | 781 |
in division (A) of this section. The time described in division | 782 |
(B)(1) of this section in which the superintendent must make a | 783 |
determination on an application does not begin until the | 784 |
superintendent has determined that the application is complete and | 785 |
has accepted it for processing. | 786 |
(3) A determination by the superintendent that an application | 787 |
is complete and is accepted for processing means only that the | 788 |
application, on its face, appears to include all of the items and | 789 |
to address all of the matters that are required, and is not an | 790 |
assessment of the substance of the application or of the | 791 |
sufficiency of the information provided. | 792 |
(C)(1) The superintendent may grant confidential treatment | 793 |
for information in or related to an application described in | 794 |
division (A) of this section, if confidential treatment is | 795 |
requested by the applicant in compliance with division (C)(2) of | 796 |
this section and any of the following applies: | 797 |
(a) The information is of a commercial or financial nature, | 798 |
disclosure of which likely would result in substantial harm to the | 799 |
competitive position of the applicant or its affiliates or to any | 800 |
party to the transaction or its affiliates. | 801 |
(b) The information is of a personal, medical, financial, or | 802 |
similar nature, disclosure of which would result in a clearly | 803 |
unwarranted invasion of personal privacy. | 804 |
(c) The information is contained in, related to, or derived | 805 |
from examinations, operating or condition reports, agreements, | 806 |
orders, or actions prepared by, on behalf of, or for the use of a | 807 |
governmental agency or authority. | 808 |
(d) The information has been filed with a governmental agency | 809 |
or authority and has not been approved for disclosure by that | 810 |
agency or authority. | 811 |
(e) The information specifically is excepted from disclosure | 812 |
by statute. | 813 |
(2)(a) An applicant requesting confidential treatment under | 814 |
division (C) of this section shall do so in writing at the time | 815 |
that the application containing the information, or additional | 816 |
information related to an application, is submitted. | 817 |
(b) The request described in division (C)(2)(a) of this | 818 |
section separately shall address each item of information for | 819 |
which confidential treatment is requested, explaining the | 820 |
applicability of the asserted justification for confidential | 821 |
treatment and either specifically demonstrating the harm that | 822 |
would result from public disclosure of the item of information or | 823 |
setting forth the reason that the applicant cannot authorize | 824 |
public disclosure of the item of information. | 825 |
(c) The applicant separately shall bind and identify all | 826 |
items of information for which confidential treatment is requested | 827 |
under division (C) of this section and shall make specific | 828 |
reference to those items in the remainder of the application or | 829 |
additional information related to the application. | 830 |
(3)(a) The superintendent shall review a request for | 831 |
confidential treatment under division (C) of this section and | 832 |
provide the applicant with written notice of the superintendent's | 833 |
decision on granting confidential treatment for each item of | 834 |
information for which it is requested. | 835 |
(b) If the superintendent's decision provided pursuant to | 836 |
division (C)(3)(a) of this section is not to grant confidential | 837 |
treatment to an item of information, the applicant may withdraw | 838 |
the item of information by written notice within ten days after | 839 |
the applicant's receipt of the superintendent's decision. If the | 840 |
applicant fails to withdraw the item of information within the | 841 |
ten-day period, the applicant is deemed to have waived the right | 842 |
to withdraw, and the item of information is a part of the | 843 |
application available to the public. | 844 |
(4)(a) An item of information submitted with a request for | 845 |
confidential treatment under division (C) of this section is not | 846 |
deemed filed with the superintendent until the superintendent | 847 |
grants confidential treatment or the applicant is deemed to have | 848 |
waived the right to withdraw the item of information. | 849 |
(b) Until the item of information submitted with a request | 850 |
for confidential treatment is filed in accordance with division | 851 |
(C)(4)(a) of this section, no person shall copy or inspect the | 852 |
item of information or anything derived from the item of | 853 |
information, except as necessary to assist the superintendent in | 854 |
deciding whether to grant confidential treatment to the item of | 855 |
information in accordance with division (C) of this section. | 856 |
(5) When an item of information is filed following the | 857 |
superintendent's decision to grant it confidential treatment | 858 |
pursuant to division (C)(3)(a) of this section, the item of | 859 |
information is not a public record as defined in section 149.43 of | 860 |
the Revised Code and only the superintendent shall use it in | 861 |
connection with the performance of the duties and exercise of the | 862 |
powers of the superintendent. Without prior notice to the | 863 |
applicant, the superintendent may disclose or comment on any of | 864 |
the contents of the application in an order, statement, or opinion | 865 |
issued by the superintendent in connection with a decision on the | 866 |
application. | 867 |
(D) Division (B)(2) of this section does not prohibit either | 868 |
of the following: | 869 |
(1) The superintendent denying an application described in | 870 |
division (A) of this section prior to the superintendent's | 871 |
acceptance of the application for processing, on the basis that | 872 |
the applicant failed to include all of the items and address all | 873 |
of the issues required for the application, if both of the | 874 |
following apply: | 875 |
(a) The superintendent advised the applicant that the | 876 |
application was incomplete. | 877 |
(b) After being advised by the superintendent pursuant to | 878 |
division (D)(1)(a) of this section that the application was | 879 |
incomplete, the applicant did not, within a reasonable period of | 880 |
time, complete the application. | 881 |
(2) The superintendent denying an application described in | 882 |
division (A) of this section on the basis that the applicant | 883 |
failed to provide the information necessary for the superintendent | 884 |
to consider the application adequately after the superintendent's | 885 |
acceptance of the application for processing, if both of the | 886 |
following apply: | 887 |
(a) After beginning to process the application, the | 888 |
superintendent determined and advised the applicant additional | 889 |
information was necessary to consider the application adequately. | 890 |
(b) After the superintendent advised the applicant pursuant | 891 |
to division (D)(2)(a) of this section that additional information | 892 |
was necessary to consider the application adequately, the | 893 |
applicant did not, within a reasonable period of time, provide | 894 |
that information. | 895 |
Sec. 1315.04. (A)(1) After accepting an application for a | 896 |
money transmitter license described in section 1315.03 of the | 897 |
Revised Code, the superintendent of financial institutions shall | 898 |
examine all the facts and circumstances relating to the | 899 |
application. | 900 |
(2) At the applicant's expense, the superintendent may | 901 |
conduct an on-site examination of the applicant's books, records, | 902 |
and operations. If the superintendent requests, the applicant | 903 |
shall advance to the superintendent the superintendent's estimate | 904 |
of the cost of the on-site examination, with any unconsumed | 905 |
portion to be returned to the applicant. | 906 |
(3) The applicant shall pay the cost of its examination | 907 |
described in division (A) of this section, or any balance of the | 908 |
cost of its examination in the case of an applicant that advanced | 909 |
the estimated cost of its examination, within fourteen days after | 910 |
receiving an invoice for payment. | 911 |
(B) In making a determination on an application described in | 912 |
division (A)(1) of this section, the superintendent shall consider | 913 |
all of the following: | 914 |
(1) The applicant's financial condition; | 915 |
(2) The applicant's business practices; | 916 |
(3) The applicant's and its directors', executive officers', | 917 |
and controlling persons' experience, competence, character, and | 918 |
history of compliance with applicable laws. | 919 |
(C) The superintendent shall not approve an application | 920 |
described in division (A)(1) of this section if the applicant does | 921 |
not meet both of the following requirements: | 922 |
(1) The applicant is a legally established business entity | 923 |
that is capitalized separately and distinctly from every other | 924 |
legal entity and is qualified to do business in this state. | 925 |
(2) The applicant has a minimum net worth of not less than | 926 |
five hundred thousand dollars, calculated according to generally | 927 |
accepted accounting principles, but excluding any assets that the | 928 |
superintendent disqualifies and including any off-balance sheet | 929 |
liabilities that the superintendent requires. | 930 |
(D)(1) In approving an application for a money transmitter | 931 |
license, the superintendent may impose any condition the | 932 |
superintendent determines to be appropriate. | 933 |
(2) When an applicant has satisfied all prior conditions | 934 |
imposed by the superintendent in approving the applicant's | 935 |
application for a money transmitter license and has provided a | 936 |
security device as required by section 1315.07 of the Revised | 937 |
Code, the superintendent shall issue the applicant a money | 938 |
transmitter license. A license issued pursuant to this section | 939 |
remains in force and effect until surrendered by the licensee | 940 |
pursuant to section 1315.18 of the Revised Code or suspended or | 941 |
revoked by the superintendent pursuant to section 1315.151 of the | 942 |
Revised Code. | 943 |
(E) On or before the first day of July of each year, each | 944 |
licensee shall pay to the superintendent an annual fee for | 945 |
carrying on the business as a money transmitter, which fee is | 946 |
established by the superintendent pursuant to division (B) of | 947 |
section 1315.13 of the Revised Code. | 948 |
Sec. 1315.05. Each licensee, at all times, shall meet both of | 949 |
the following requirements: | 950 |
(A) Be a legally established business entity that is | 951 |
capitalized separately and distinctly from every other legal | 952 |
entity and qualified to do business in this state; | 953 |
(B) Have a minimum net worth of not less than five hundred | 954 |
thousand dollars, calculated according to generally accepted | 955 |
accounting principles, but excluding any assets that the | 956 |
superintendent of financial institutions disqualifies and | 957 |
including any off-balance sheet liabilities that the | 958 |
superintendent requires. | 959 |
(C) No licensee shall fail to comply with this section. | 960 |
Sec. 1315.06. (A)(1)(a) Subject to division (A)(2) of this | 961 |
section, each licensee shall maintain permissible investments | 962 |
described in division (B) of this section having an aggregate | 963 |
market value of not less than the aggregate amount of all of the | 964 |
licensee's outstandings received from persons in the United | 965 |
States, directly and through authorized delegates, to the extent | 966 |
reported to the licensee. | 967 |
(b) For purposes of division (A)(1)(a) of this section, a | 968 |
licensee's permissible investments, even if commingled with other | 969 |
assets of the licensee, and a licensee's other assets to the | 970 |
extent necessary to equal the licensee's outstandings, are, by | 971 |
operation of law, impressed with a trust and held for the benefit | 972 |
of persons the money of which the licensee holds for transmission, | 973 |
and these permissible investments are not available to satisfy any | 974 |
other of the licensee's creditors. | 975 |
(2) The superintendent of financial institutions may waive | 976 |
the requirement described in division (A)(1)(a) of this section if | 977 |
the volume of a licensee's outstandings does not exceed the | 978 |
licensee's security device provided pursuant to section 1315.07 of | 979 |
the Revised Code. | 980 |
(B) All of the following are permissible investments by a | 981 |
licensee: | 982 |
(1) Cash; | 983 |
(2) Certificates of deposit or other debt obligations of a | 984 |
depository institution, either domestic or foreign; | 985 |
(3) Bills of exchange or time drafts drawn on and accepted by | 986 |
a commercial bank, otherwise known as bankers' acceptances, that | 987 |
are eligible for purchase by member banks of the federal reserve | 988 |
system; | 989 |
(4) Any investment bearing a rating of one of the three | 990 |
highest grades as defined by a nationally recognized organization | 991 |
that rates securities; | 992 |
(5) Investment securities that are obligations of the United | 993 |
States or its agencies or instrumentalities; obligations that are | 994 |
guaranteed fully as to principal and interest by the United | 995 |
States; or any obligations of any state, municipality, or | 996 |
political subdivision of a state; | 997 |
(6) Shares in a money market mutual fund; interest-bearing | 998 |
bills, notes, bonds, debentures, or preferred stock traded on any | 999 |
national securities exchange or on a national over-the-counter | 1000 |
market; or mutual funds primarily composed of such securities or a | 1001 |
fund composed of one or more permissible investments described in | 1002 |
division (B) of this section; | 1003 |
(7) Any demand borrowing agreement or agreements made to a | 1004 |
corporation or a subsidiary of a corporation the capital stock of | 1005 |
which is listed on a national exchange, provided that the total | 1006 |
borrowing agreements with any one borrower do not exceed ten per | 1007 |
cent of the licensee's outstandings; | 1008 |
(8) To the extent permitted by the superintendent, | 1009 |
receivables that are due to a licensee from its authorized | 1010 |
delegates and are not past due or doubtful of collection; | 1011 |
(9) Any other investments approved by the superintendent. | 1012 |
(C) No licensee shall fail to comply with this section. | 1013 |
Sec. 1315.07. (A)(1) In a form satisfactory to the | 1014 |
superintendent of financial institutions, each licensee shall | 1015 |
provide and maintain a security device of one or more of the types | 1016 |
described in division (B) of this section of not less than three | 1017 |
hundred thousand dollars or such greater amount as the | 1018 |
superintendent finds appropriate but, except pursuant to a | 1019 |
supervisory action, not exceeding two million dollars. | 1020 |
(2) By control agreement or terms of the bond, the security | 1021 |
device described in division (A)(1) of this section shall run to | 1022 |
the superintendent for the benefit of any claimants against the | 1023 |
licensee, to secure the faithful performance of the obligations of | 1024 |
the licensee with respect to its receipt of money from persons in | 1025 |
this state for transmission. In the case of a bond, the | 1026 |
superintendent may bring suit on behalf of claimants, either in | 1027 |
one action or in successive actions, or may authorize claimants to | 1028 |
bring their own actions on the bond. | 1029 |
(B) The security device required by division (A) of this | 1030 |
section shall be one or more of the following: | 1031 |
(1) A pledge, with a holder acceptable to the superintendent | 1032 |
and subject to a control agreement with the superintendent, of any | 1033 |
of the following: | 1034 |
(a) Cash; | 1035 |
(b) Interest-bearing stocks, bonds, notes, debentures, or | 1036 |
other obligations of the United States or any agency or | 1037 |
instrumentality of the United States, or guaranteed by the United | 1038 |
States; | 1039 |
(c) Interest bearing stocks, bonds, notes, debentures, or | 1040 |
other obligations of this state, or of a city, county, town, | 1041 |
village, school district, or instrumentality of this state, or | 1042 |
guaranteed by this state. | 1043 |
(2) A surety bond; | 1044 |
(3) Any other security device approved by the superintendent. | 1045 |
(C)(1)(a) In the case of a security device provided in the | 1046 |
form of a pledge of securities, the securities pledged shall be | 1047 |
valued at the lower of principal amount or market value. | 1048 |
(b) The licensee is entitled to receive all interest and | 1049 |
dividends on cash or securities pledged and, with the approval of | 1050 |
the superintendent, may substitute pledged securities, which | 1051 |
substitution also may be ordered by the superintendent pursuant to | 1052 |
a written order. | 1053 |
(2) In the case of a security device provided in the form of | 1054 |
a surety bond, both of the following apply: | 1055 |
(a) The surety bond shall remain in effect until canceled, | 1056 |
which may occur only after thirty days' written notice to the | 1057 |
superintendent. | 1058 |
(b) Cancellation of a surety bond does not affect any | 1059 |
liability incurred or accrued during the bond's effective period. | 1060 |
(D) A licensee shall maintain the security device required by | 1061 |
division (A) of this section after the licensee ceases money | 1062 |
transmission operations in this state, until the licensee's | 1063 |
outstandings in this state all have been satisfied or properly | 1064 |
reported to the division of unclaimed funds. However, the | 1065 |
superintendent may permit the security device to be reduced to the | 1066 |
extent that the amount of the licensee's outstandings in this | 1067 |
state are reduced. | 1068 |
(E) No licensee shall fail to comply with this section. | 1069 |
Sec. 1315.08. (A) Within forty-five days after the end of | 1070 |
each calendar quarter, each licensee shall submit to the | 1071 |
superintendent of financial institutions all of the following in | 1072 |
the form prescribed by the superintendent: | 1073 |
(1) The licensee's unaudited, unconsolidated financial | 1074 |
statements as of the end of the calendar quarter, including a | 1075 |
balance sheet, income statement, statement of changes in | 1076 |
shareholder's equity, and statement of cash flows; | 1077 |
(2) A statement for the calendar quarter of the number of | 1078 |
money transmission transactions undertaken by the licensee in this | 1079 |
state and in the United States in total, the dollar amount of | 1080 |
transactions, and the number and dollar amount of those | 1081 |
transactions currently outstanding; | 1082 |
(3) A schedule of the licensee's permissible investments and | 1083 |
their market values as of the end of the calendar quarter; | 1084 |
(4) A schedule of the locations, if any, within this state at | 1085 |
which the licensee is conducting business directly or through its | 1086 |
authorized delegates; | 1087 |
(5) Any other information that the superintendent requires. | 1088 |
(B) Annually, not more than one hundred twenty days after the | 1089 |
end of its fiscal year, each licensee shall submit to the | 1090 |
superintendent its audited unconsolidated financial statements for | 1091 |
the fiscal year, including a balance sheet, income statement, | 1092 |
statement of changes in shareholder equity, and statement of cash | 1093 |
flows. If the licensee is a subsidiary of another company, the | 1094 |
licensee also shall submit the audited consolidated financial | 1095 |
statements of its parent company. | 1096 |
(C) No licensee shall fail to comply with this section. | 1097 |
Sec. 1315.081. (A) Within fifteen business days after the | 1098 |
occurrence of any of the events listed below, a licensee shall | 1099 |
file a written report with the superintendent describing the event | 1100 |
and its expected impact on the licensee's activities in the state: | 1101 |
(1) Any material changes in information provided in a | 1102 |
licensee's application or any report submitted to the | 1103 |
superintendent under sections 1315.01 to 1315.18 of the Revised | 1104 |
Code; | 1105 |
(2) The licensee's filing for bankruptcy or reorganization; | 1106 |
(3) The institution of revocation or suspension proceedings | 1107 |
against the licensee by any state or governmental authority with | 1108 |
regard to the licensee's money transmission activities; | 1109 |
(4) Any felony indictment of the licensee, or any of its | 1110 |
controlling persons, directors, officers, or employees, related to | 1111 |
money transmission activities; | 1112 |
(5) Any felony conviction of the licensee, or any of its | 1113 |
controlling persons, directors, officers, or employees, related to | 1114 |
money transmission activities; | 1115 |
(6) Any proposed change of control of the licensee; | 1116 |
(7) The licensee's decision to voluntarily surrender or not | 1117 |
to renew a money transmitter license it holds in another | 1118 |
jurisdiction. | 1119 |
(B)(1) No person shall make a false statement, | 1120 |
misrepresentation, or false certification to the division of | 1121 |
financial institutions or in a record filed or required to be | 1122 |
maintained under sections 1315.01 to 1315.18 of the Revised Code | 1123 |
or make a false entry or omit a material entry in a record filed | 1124 |
or required to be maintained under sections 1315.01 to 1315.18 of | 1125 |
the Revised Code or made available to the division. | 1126 |
(2) No licensee shall fail to comply with this section. | 1127 |
Sec. 1315.09. (A) Each licensee shall make, keep, and | 1128 |
preserve with respect to the licensee the following books, | 1129 |
accounts, and other records for a period of five years to be open | 1130 |
to inspection by the superintendent of financial institutions: | 1131 |
(1) A record or records of each money transmission | 1132 |
transaction; | 1133 |
(2) A general ledger containing all assets, liabilities, | 1134 |
capital, income, and expense accounts, posted at least monthly; | 1135 |
(3) All bank statements and bank reconciliation records; | 1136 |
(4) A record of all outstandings; | 1137 |
(5) A record of all payments made; | 1138 |
(6) The names and addresses of all authorized delegates of | 1139 |
the licensee; | 1140 |
(7) Any other records that the superintendent requires. | 1141 |
(B) For purposes of this section, a licensee may retain a | 1142 |
document, paper, or other instrument or record by use of a process | 1143 |
to record, copy, photograph, or store a representation of the | 1144 |
original document, paper, or other instrument or record, if all of | 1145 |
the following apply: | 1146 |
(1) The process correctly and accurately copies or | 1147 |
reproduces, or provides a means for correctly and accurately | 1148 |
copying or reproducing, the original document, paper, or other | 1149 |
instrument or record with regard to both its substance and | 1150 |
appearance, except that the copy or reproduction need not reflect | 1151 |
the original paper or other medium, size, or color, unless the | 1152 |
medium, size, or color is necessary to establish the authenticity | 1153 |
of the original. | 1154 |
(2) The process does not permit the recording, copy, | 1155 |
photographic image, or stored representation of the original | 1156 |
document, paper, or other instrument or record to be altered or | 1157 |
manipulated. | 1158 |
(3) The medium the process uses to record, copy, photograph, | 1159 |
or store a representation of an original document, paper, or other | 1160 |
instrument or record is a durable medium for retaining and | 1161 |
reproducing records. | 1162 |
(C) A licensee may maintain its records described in division | 1163 |
(A) of this section at a location other than within this state, so | 1164 |
long as the licensee makes its records accessible to the | 1165 |
superintendent on seven business days written notice. | 1166 |
(D) No licensee shall fail to comply with this section. | 1167 |
Sec. 1315.10. (A) Subject to division (F) of this section, no | 1168 |
person, alone or acting in concert with other persons, shall, | 1169 |
directly or indirectly, acquire control of a licensee without the | 1170 |
prior approval of the superintendent of financial institutions. | 1171 |
(B) A person or group of persons proposing to acquire control | 1172 |
of a licensee shall submit an application for the superintendent's | 1173 |
approval in the form prescribed by the superintendent. | 1174 |
(C)(1) The superintendent may grant confidential treatment | 1175 |
for information in or related to an application described in | 1176 |
division (B) of this section, if confidential treatment is | 1177 |
requested by the applicant in compliance with division (C)(2) of | 1178 |
this section and any of the following applies: | 1179 |
(a) The information is of a commercial or financial nature, | 1180 |
disclosure of which likely would result in substantial harm to the | 1181 |
competitive position of the applicant or its affiliates or to any | 1182 |
party to the transaction or its affiliates. | 1183 |
(b) The information is of a personal, medical, financial, or | 1184 |
similar nature, disclosure of which would result in a clearly | 1185 |
unwarranted invasion of personal privacy. | 1186 |
(c) The information is contained in, related to, or derived | 1187 |
from examinations, operating or condition reports, agreements, | 1188 |
orders, or actions prepared by, on behalf of, or for the use of a | 1189 |
governmental agency or authority. | 1190 |
(d) The information has been filed with a governmental agency | 1191 |
or authority and has not been approved for disclosure by that | 1192 |
agency or authority. | 1193 |
(e) The information specifically is excepted from disclosure | 1194 |
by statute. | 1195 |
(2)(a) An applicant requesting confidential treatment under | 1196 |
division (C) of this section shall do so in writing at the time | 1197 |
the application containing the information, or additional | 1198 |
information related to an application, is submitted. | 1199 |
(b) The request described in division (C)(2)(a) of this | 1200 |
section separately shall address each item of information for | 1201 |
which confidential treatment is requested, explaining the | 1202 |
applicability of the asserted justification for confidential | 1203 |
treatment and either specifically demonstrating the harm that | 1204 |
would result from public disclosure of the item of information or | 1205 |
setting forth the reason that the applicant cannot authorize | 1206 |
public disclosure of the item of information. | 1207 |
(c) The applicant separately shall bind and identify all | 1208 |
items of information for which confidential treatment is requested | 1209 |
under division (C) of this section and make specific reference to | 1210 |
those items in the remainder of the application or additional | 1211 |
information related to the application. | 1212 |
(3)(a) The superintendent shall review a request for | 1213 |
confidential treatment under division (C) of this section and | 1214 |
provide the applicant with written notice of the superintendent's | 1215 |
decision on granting confidential treatment for each item of | 1216 |
information for which it is requested. | 1217 |
(b) If the superintendent's decision provided pursuant to | 1218 |
division (C)(3)(a) of this section is not to grant confidential | 1219 |
treatment to an item of information, the applicant may withdraw | 1220 |
the item of information by written notice within ten days after | 1221 |
the applicant's receipt of the superintendent's decision. If the | 1222 |
applicant fails to withdraw the item of information within the | 1223 |
ten-day period, the applicant is deemed to have waived the right | 1224 |
to withdraw, and the item of information is deemed a part of the | 1225 |
application available to the public. | 1226 |
(4)(a) An item of information submitted with a request for | 1227 |
confidential treatment under division (C) of this section is not | 1228 |
deemed filed with the superintendent until the superintendent | 1229 |
grants confidential treatment, or the applicant is deemed to have | 1230 |
waived the right to withdraw the item of information. | 1231 |
(b) Until the item of information submitted with a request | 1232 |
for confidential treatment is filed in accordance with division | 1233 |
(C)(4)(a) of this section, no person shall copy or inspect the | 1234 |
item of information or anything derived from the item of | 1235 |
information, except as is necessary to assist the superintendent | 1236 |
in deciding whether to grant confidential treatment to the item of | 1237 |
information in accordance with division (C) of this section. | 1238 |
(5) When an item of information is filed following the | 1239 |
superintendent's decision to grant it confidential treatment | 1240 |
pursuant to division (C)(3)(a) of this section, the item of | 1241 |
information is not a public record as defined in section 149.43 of | 1242 |
the Revised Code and only the superintendent shall use it in | 1243 |
connection with the performance of the duties and exercise of the | 1244 |
powers of the superintendent. Without prior notice to the | 1245 |
applicant, the superintendent may disclose or comment on any of | 1246 |
the contents of the application in an order, statement, or opinion | 1247 |
issued by the superintendent in connection with a decision on the | 1248 |
application. | 1249 |
(D)(1) If the superintendent requests, the applicant shall | 1250 |
bear the expense of the examination conducted in accordance with | 1251 |
section 1315.101 of the Revised Code, and upon the | 1252 |
superintendent's request, shall advance to the superintendent the | 1253 |
superintendent's estimate of the cost of the examination, with any | 1254 |
unconsumed portion to be returned to the applicant. | 1255 |
(2) If the superintendent requests payment pursuant to | 1256 |
division (D)(1) of this section, the applicant shall pay the cost | 1257 |
of its examination described in section 1315.101 of the Revised | 1258 |
Code, or any balance of the cost of its examination in the case of | 1259 |
an applicant that advanced the estimated cost of its examination, | 1260 |
within fourteen days after receiving an invoice for payment. | 1261 |
(E) The superintendent may do either of the following: | 1262 |
(1) Deny an application described in division (B) of this | 1263 |
section prior to the superintendent's acceptance of the | 1264 |
application for processing, on the basis that the applicant failed | 1265 |
to include all of the items and address all of the issues required | 1266 |
for the application, if both of the following apply: | 1267 |
(a) The superintendent advised the person that the | 1268 |
application was incomplete. | 1269 |
(b) After being advised by the superintendent pursuant to | 1270 |
division (E)(1)(a) of this section that the application was | 1271 |
incomplete, the person, within a reasonable period of time, did | 1272 |
not complete the application. | 1273 |
(2) Deny an application described in division (B) of this | 1274 |
section on the basis that the applicant failed to provide the | 1275 |
information necessary for the superintendent to consider the | 1276 |
application adequately after the superintendent's acceptance of | 1277 |
the application for processing, if both of the following apply: | 1278 |
(a) After beginning to process the application, the | 1279 |
superintendent determined and advised the applicant that | 1280 |
additional information was necessary to consider the application | 1281 |
adequately. | 1282 |
(b) After being advised by the superintendent pursuant to | 1283 |
division (E)(2)(a) of this section that additional information was | 1284 |
necessary to consider the application adequately, the applicant, | 1285 |
within a reasonable period of time, did not provide that | 1286 |
information. | 1287 |
(F)(1) Division (A) of this section requiring prior approval | 1288 |
to obtain control, directly or indirectly, of a licensee does not | 1289 |
apply to any of the following persons, but these persons shall | 1290 |
notify the superintendent of a change of control: | 1291 |
(a) A person that acts as a proxy for the sole purpose of | 1292 |
voting at a designated meeting of the shareholders or holders of | 1293 |
voting interests of a licensee or person in control of a licensee; | 1294 |
(b) A person that acquires control of a licensee by devise or | 1295 |
descent; | 1296 |
(c) A person that acquires control as a personal | 1297 |
representative, custodian, guardian, conservator, or trustee, or | 1298 |
as an officer appointed by a court of competent jurisdiction or by | 1299 |
operation of law; | 1300 |
(d) A person that the superintendent by rule or order | 1301 |
determines is not subject to division (A) of this section based on | 1302 |
the public interest. | 1303 |
(2) Division (A) of this section does not apply to public | 1304 |
offerings of securities. | 1305 |
(3) Before filing an application described in division (A) of | 1306 |
this section, a person may request in writing a determination from | 1307 |
the superintendent of whether the person would be considered a | 1308 |
person in control of a licensee upon consummation of a proposed | 1309 |
transaction. If the superintendent determines that the person | 1310 |
would not be a person in control of a licensee, the person and the | 1311 |
proposed transaction are not subject to the requirements of | 1312 |
division (A) of this section. | 1313 |
(G) No person shall fail to comply with this section. | 1314 |
Sec. 1315.101. (A) After accepting an application to acquire | 1315 |
control of a licensee described in section 1315.10 of the Revised | 1316 |
Code, the superintendent of financial institutions shall examine | 1317 |
all of the facts and circumstances relating to the application. | 1318 |
(B) The superintendent shall approve the application | 1319 |
described in division (A) of this section if the superintendent | 1320 |
determines both of the following: | 1321 |
(1) The competence, experience, and character of the | 1322 |
applicant or applicants seeking to acquire control of a licensee | 1323 |
and the applicant's or applicants' general fitness to operate the | 1324 |
licensee or person in control of the licensee in a lawful and | 1325 |
proper manner are acceptable. | 1326 |
(2) The interests of the public are not jeopardized by the | 1327 |
change of control. | 1328 |
Sec. 1315.11. (A) A licensee that chooses to conduct money | 1329 |
transmission activities in this state through an authorized | 1330 |
delegate shall execute an express written contract with the | 1331 |
authorized delegate that, at a minimum, sets forth all of the | 1332 |
following: | 1333 |
(1) The duties and responsibilities of the authorized | 1334 |
delegate regarding money or its equivalent received from persons | 1335 |
located in this state for transmission by the licensee; | 1336 |
(2) The duties and responsibilities of the authorized | 1337 |
delegate regarding instruments, devices, or processes used by the | 1338 |
licensee to transmit money; | 1339 |
(3) The duties and responsibilities of the authorized | 1340 |
delegate with regard to compliance with laws regulating money | 1341 |
transmission activities. | 1342 |
(B) A licensee shall monitor the activities of its authorized | 1343 |
delegate with regard to money or its equivalent received from | 1344 |
persons in this state for transmission by the licensee and for | 1345 |
compliance with all of the following: | 1346 |
(1) The written contract between the licensee and the | 1347 |
authorized delegate; | 1348 |
(2) Sections 1315.01 to 1315.18 of the Revised Code; | 1349 |
(3) Other laws applicable to the business of transmitting | 1350 |
money. | 1351 |
(C) As part of the examination of a licensee authorized by | 1352 |
section 1315.12 of the Revised Code, the superintendent of | 1353 |
financial institutions may examine the books and records and | 1354 |
policies and procedures of the licensee's authorized delegate. | 1355 |
(D)(1) An authorized delegate or other person that receives | 1356 |
money or its equivalent for transmission by a licensee shall keep | 1357 |
it separate and shall not commingle it with other money or | 1358 |
receipts. All money or its equivalent, less fees, that is received | 1359 |
by an authorized delegate or by any other person for transmission | 1360 |
by a licensee, from the time received until remitted to the | 1361 |
licensee, shall constitute funds owned by and belonging to the | 1362 |
licensee and shall be impressed with a trust for the benefit of | 1363 |
the person from which the money or its equivalent is received. | 1364 |
(2) If an authorized delegate or other person fails to comply | 1365 |
with division (D)(1) of this section and commingles any money or | 1366 |
its equivalent received for transmission by a licensee with any | 1367 |
other funds or property owned or controlled by the authorized | 1368 |
delegate or other person, all commingled proceeds and other | 1369 |
property shall be impressed with a trust in favor of the licensee | 1370 |
in an amount equal to the amount due the licensee. | 1371 |
(E) No licensee shall fail to comply with division (A) or (B) | 1372 |
of this section, and no authorized delegate or other person that | 1373 |
receives money or its equivalent for transmission by a licensee | 1374 |
shall fail to comply with division (D) of this section. | 1375 |
Sec. 1315.12. (A) As often as the superintendent of financial | 1376 |
institutions considers necessary, the superintendent, or any | 1377 |
deputy or examiner appointed or any contractor engaged by the | 1378 |
superintendent for that purpose, thoroughly shall examine the | 1379 |
records and affairs of each licensee. The examination shall | 1380 |
include a review of all of the following: | 1381 |
(1) Compliance with law; | 1382 |
(2) Safety and soundness; | 1383 |
(3) Other matters that the superintendent determines. | 1384 |
(B) The superintendent may conduct all aspects of an | 1385 |
examination described in division (A) of this section concurrently | 1386 |
or may divide the examination into constituent parts and conduct | 1387 |
them at various times. | 1388 |
(C)(1) The licensee shall bear the expense of the | 1389 |
examination. If the superintendent requests, the licensee shall | 1390 |
advance to the superintendent the superintendent's estimate of the | 1391 |
cost of the examination, with any unconsumed portion to be | 1392 |
returned to the licensee. | 1393 |
(2) A licensee shall pay the cost of its examination | 1394 |
conducted pursuant to this section, or any balance of the cost of | 1395 |
its examination in the case of a licensee that advanced the | 1396 |
estimated cost of its examination, within fourteen days of | 1397 |
receiving an invoice for payment. | 1398 |
(D) The superintendent shall preserve the report of each | 1399 |
examination conducted pursuant to this section, including related | 1400 |
correspondence received and copies of related correspondence sent, | 1401 |
for twenty years after the examination date. | 1402 |
Sec. 1315.121. (A) In administering sections 1315.01 to | 1403 |
1315.18 of the Revised Code and fulfilling the duties imposed by | 1404 |
those sections, including the duty imposed by section 1315.12 of | 1405 |
the Revised Code, the superintendent of financial institutions may | 1406 |
do any of the following: | 1407 |
(1) Participate with financial institution regulatory | 1408 |
authorities of this and other states, the United States, and other | 1409 |
countries in any of the following: | 1410 |
(a) Programs for alternate examinations of the records and | 1411 |
affairs of licensees and other money transmitters over which they | 1412 |
have concurrent jurisdiction; | 1413 |
(b) Joint or concurrent examinations of the records and | 1414 |
affairs of licensees and other money transmitters over which they | 1415 |
have concurrent jurisdiction; | 1416 |
(c) Coordinated examinations of the records and affairs of | 1417 |
licensees and other money transmitters over which they have | 1418 |
collective jurisdiction. | 1419 |
(2) Conduct, participate in, or coordinate independent, | 1420 |
concurrent, joint, or coordinated examinations of the records and | 1421 |
affairs of licensees and other money transmitters and otherwise | 1422 |
act on behalf of financial institution regulatory authorities of | 1423 |
this and other states, the United States, and other countries | 1424 |
having jurisdiction over the licensees and other money | 1425 |
transmitters; | 1426 |
(3) Rely on information leading to, arising from, or obtained | 1427 |
in the course of examinations conducted by financial institution | 1428 |
regulatory authorities of this and other states, the United | 1429 |
States, and other countries when both of the following apply: | 1430 |
(a) Pursuant to agreement and applicable law, the | 1431 |
superintendent may receive and use the information leading to, | 1432 |
arising from, or obtained in the course of the other regulatory | 1433 |
authorities' examinations in administering sections 1315.01 to | 1434 |
1315.18 of the Revised Code and acting under the authority of | 1435 |
those sections; | 1436 |
(b) In the superintendent's judgment the other regulatory | 1437 |
authorities' personnel, practices, and authority warrant the | 1438 |
superintendent's reliance. | 1439 |
(4) Authorize financial institution regulatory authorities of | 1440 |
this and other states, the United States, and other countries to | 1441 |
receive and use information leading to, arising from, or obtained | 1442 |
in the course of examinations conducted by the division of | 1443 |
financial institutions in the same manner and for the purposes | 1444 |
they could use information leading to, arising from, or obtained | 1445 |
in the course of their own examinations when both of the following | 1446 |
apply: | 1447 |
(a) Pursuant to applicable law, information leading to, | 1448 |
arising from, or obtained in the course of examinations the other | 1449 |
regulatory authorities conduct is protected from general | 1450 |
disclosure and may only be disclosed for purposes similar to those | 1451 |
provided in section 1315.122 of the Revised Code, which are | 1452 |
principally regulatory in nature, for disclosure of information | 1453 |
leading to, arising from, or obtained in the course of | 1454 |
examinations conducted by the division; | 1455 |
(b) Pursuant to agreement and applicable law, information | 1456 |
leading to, arising from, or obtained in the course of | 1457 |
examinations conducted by the division will, in the other | 1458 |
regulatory authorities' possession or the possession of any | 1459 |
persons to whom the other regulatory authorities disclosed the | 1460 |
information as a part of examinations of those persons, be | 1461 |
protected from disclosure to the same extent as information | 1462 |
leading to, arising from, or obtained in the course of those | 1463 |
regulatory authorities' examinations. | 1464 |
(5) Rely on the actions of financial institution regulatory | 1465 |
authorities of this and other states, the United States, or other | 1466 |
countries, or participate with them jointly, in responding to | 1467 |
violations of law, unsafe or unsound practices, breaches of | 1468 |
fiduciary duty, or other regulatory concerns affecting licensees | 1469 |
and other money transmitters over which they have concurrent | 1470 |
jurisdiction when the other regulatory authorities have adequate | 1471 |
personnel, practices, and authority to warrant the reliance; | 1472 |
(6) Implement other cooperative arrangements with financial | 1473 |
institution regulatory authorities of this and other states, the | 1474 |
United States, and other countries consistent with safety and | 1475 |
soundness. | 1476 |
(B) No person shall use any reliance by the superintendent, | 1477 |
in whole or in part, on financial institution regulatory | 1478 |
authorities of this or other states, the United States, or other | 1479 |
countries in accordance with division (A) of this section to | 1480 |
support any assertion of either of the following: | 1481 |
(1) Failure of the superintendent or division to properly | 1482 |
administer sections 1315.01 to 1315.18 of the Revised Code or | 1483 |
fulfill the duties imposed by those sections; | 1484 |
(2) Disagreement by the superintendent or division with any | 1485 |
action taken by financial institution regulatory authorities of | 1486 |
this or other states, the United States, or other countries. | 1487 |
(C) In conducting, participating in, or coordinating | 1488 |
independent, concurrent, joint, or coordinated examinations of the | 1489 |
records and affairs of licensees and other money transmitters, the | 1490 |
superintendent may purchase services from financial institution | 1491 |
regulatory authorities of this and other states, the United | 1492 |
States, and other countries, including services provided by | 1493 |
employees of other financial institution regulatory authorities in | 1494 |
their capacities as employees of other financial institution | 1495 |
regulatory authorities. The purchase of services from one or more | 1496 |
financial institution regulatory authorities of this and other | 1497 |
states, the United States, or other countries is the purchase of | 1498 |
services from a sole source provider and is not the employment of | 1499 |
any financial institution regulatory authority or any of its | 1500 |
employees. | 1501 |
The authority to purchase services pursuant to this division | 1502 |
does not impair the superintendent's authority to purchase | 1503 |
services from any other source. | 1504 |
Sec. 1315.122. (A) Information leading to, arising from, or | 1505 |
obtained in the course of the examination of a licensee or other | 1506 |
person conducted pursuant to the authority of sections 1315.01 to | 1507 |
1315.18 of the Revised Code is privileged and confidential. No | 1508 |
person, including any person to whom the information is disclosed | 1509 |
under the authority of this section, shall disclose information | 1510 |
leading to, arising from, or obtained in the course of an | 1511 |
examination, except as specifically provided in this section. | 1512 |
(B) The superintendent of financial institutions and the | 1513 |
superintendent's agents and employees may disclose information | 1514 |
leading to, arising from, or obtained in the course of an | 1515 |
examination conducted pursuant to section 1315.12 or 1315.121 of | 1516 |
the Revised Code as follows: | 1517 |
(1) To the governor, director of commerce, or deputy director | 1518 |
of commerce to enable them to act in the interests of the public; | 1519 |
(2) To the banking commission, created pursuant to section | 1520 |
1123.01 of the Revised Code, to enable the commission to | 1521 |
effectively advise the superintendent and take action on any | 1522 |
matter the superintendent presents to the commission; | 1523 |
(3) To financial institution regulatory authorities of this | 1524 |
and other states, the United States, and other countries to assist | 1525 |
them in their regulatory duties; | 1526 |
(4) To the directors, officers, agents, and parent company of | 1527 |
the licensee or other money transmitter examined to assist them in | 1528 |
conducting the business of the licensee or other money transmitter | 1529 |
examined in a safe and sound manner and in compliance with law; | 1530 |
(5) To law enforcement authorities conducting criminal | 1531 |
investigations. | 1532 |
(C) Information leading to, arising from, or obtained in the | 1533 |
course of an examination of a licensee or other person pursuant to | 1534 |
sections 1315.01 to 1315.18 of the Revised Code shall not be | 1535 |
discoverable from any source. The information shall not be | 1536 |
introduced into evidence, except in the following circumstances: | 1537 |
(1) In connection with criminal proceedings; | 1538 |
(2) When, in the opinion of the superintendent, it is | 1539 |
appropriate with regard to enforcement actions taken and decisions | 1540 |
made by the superintendent under the authority of sections 1315.01 | 1541 |
to 1315.18 of the Revised Code regarding a licensee or other | 1542 |
person; | 1543 |
(3) When litigation has been initiated by the superintendent | 1544 |
in furtherance of the powers, duties, and obligations imposed upon | 1545 |
the superintendent by sections 1315.01 to 1315.18 of the Revised | 1546 |
Code; | 1547 |
(4) When authorized by agreements between the superintendent | 1548 |
and financial institution regulatory authorities of this and other | 1549 |
states, the United States, and other countries authorized by | 1550 |
section 1315.121 of the Revised Code; | 1551 |
(5) When and in the manner authorized in section 1181.25 of | 1552 |
the Revised Code. | 1553 |
(D) A report of an examination conducted pursuant to section | 1554 |
1315.12 or 1315.121 of the Revised Code is the property of the | 1555 |
division of financial institutions. Under no circumstances may the | 1556 |
licensee or other money transmitter examined, its directors, | 1557 |
officers, employees, agents, regulated persons, or contractors, or | 1558 |
any person having knowledge or possession of a report of | 1559 |
examination, or any of its contents, disclose or make public in | 1560 |
any manner the report of examination or its contents. The | 1561 |
authority provided in division (B)(4) of this section for use of | 1562 |
examination information to assist in conducting the business of | 1563 |
the licensee or other money transmitter examined in a safe and | 1564 |
sound manner and in compliance with law shall not be construed to | 1565 |
authorize disclosure of a report of examination or any of its | 1566 |
contents in conducting business with the examined licensee's or | 1567 |
other money transmitter's customers, creditors, or shareholders, | 1568 |
or with other persons. | 1569 |
(E) Whoever violates this section shall be removed from | 1570 |
office, shall be liable, with the violator's bonder in damages to | 1571 |
the person injured by the disclosure of information, and is guilty | 1572 |
of a felony of the fourth degree. | 1573 |
Sec. 1315.13. Annually, the superintendent shall establish | 1574 |
both of the following: | 1575 |
(A) The application fee for an application for a license to | 1576 |
transmit money under section 1315.03 of the Revised Code; | 1577 |
(B) An annual fee described in division (E) of section | 1578 |
1315.04 of the Revised Code for each licensee to carry on the | 1579 |
business of a money transmitter. When establishing the annual fee | 1580 |
for each licensee, the superintendent may consider the number of | 1581 |
offices and authorized delegates the licensee has and the volume | 1582 |
of business the licensee does in this state. | 1583 |
Sec. 1315.14. The superintendent of financial institutions | 1584 |
may adopt rules that, in the superintendent's judgment, are | 1585 |
necessary or appropriate to carry out the purposes of sections | 1586 |
1315.01 to 1315.18 of the Revised Code. | 1587 |
Sec. 1315.15. (A) The superintendent of financial | 1588 |
institutions may issue and serve a notice of charges and intent to | 1589 |
issue a cease and desist order upon a licensee or other person if, | 1590 |
in the opinion of the superintendent, either of the following | 1591 |
applies to the licensee or other person: | 1592 |
(1) The licensee or other person is engaging, has engaged, | 1593 |
or, the superintendent has reasonable cause to believe, is about | 1594 |
to engage in an unsafe or unsound practice in conducting the | 1595 |
business of transmitting money. | 1596 |
(2) The licensee or other person is violating, has violated, | 1597 |
or, the superintendent has reasonable cause to believe, is about | 1598 |
to violate any of the following: | 1599 |
(a) A law or rule; | 1600 |
(b) A condition imposed in writing by the superintendent in | 1601 |
connection with granting an application or other request by the | 1602 |
licensee or other person; | 1603 |
(c) A written agreement entered into with the superintendent. | 1604 |
(B) The notice of charges and intent to issue a cease and | 1605 |
desist order described in division (A) of this section shall | 1606 |
include all of the following: | 1607 |
(1) A statement of the violation or violations or unsafe or | 1608 |
unsound practice or practices alleged; | 1609 |
(2) A statement of the facts constituting the violation or | 1610 |
violations or unsafe or unsound practice or practices alleged; | 1611 |
(3) Notice that the licensee or other person is entitled to a | 1612 |
hearing, in accordance with section 1315.17 of the Revised Code, | 1613 |
to determine whether a cease and desist order should be issued | 1614 |
against the licensee or other person, if the licensee or other | 1615 |
person requests the hearing within thirty days of service of the | 1616 |
notice; | 1617 |
(4) Notice that, if the licensee or other person makes a | 1618 |
timely request for a hearing, the licensee or other person may | 1619 |
appear at the hearing in person or by attorney or by presenting | 1620 |
positions, arguments, and contentions in writing, and at the | 1621 |
hearing may present evidence and examine witnesses for and against | 1622 |
the licensee or other person. | 1623 |
(5) Notice that failure of the licensee or other person to | 1624 |
make a timely request for a hearing to determine whether a cease | 1625 |
and desist order should be issued or to appear at the hearing, in | 1626 |
person, by attorney, or by writing, is consent by the licensee or | 1627 |
other person to the issuance of the cease and desist order. | 1628 |
(C) The superintendent may issue a cease and desist order | 1629 |
against the licensee or other person if any of the following | 1630 |
applies: | 1631 |
(1) The licensee or other person consents to the issuance of | 1632 |
the cease and desist order. | 1633 |
(2) Upon the record of the hearing described in division (B) | 1634 |
of this section, the superintendent finds that a violation or | 1635 |
unsafe or unsound practice has been established. | 1636 |
(3) The superintendent determines that the licensee's or | 1637 |
other person's books and records are too incomplete or inaccurate | 1638 |
to permit the superintendent, through the normal supervisory | 1639 |
process, to determine the financial condition of the licensee or | 1640 |
other person or the details or purpose of one or more transactions | 1641 |
that may have a material effect on the financial condition of the | 1642 |
licensee or other person. | 1643 |
(4) The superintendent finds that the violation or unsafe or | 1644 |
unsound practice alleged in division (B) of this section is | 1645 |
likely, prior to completion of the hearing described in that | 1646 |
division, to cause any of the following: | 1647 |
(a) The licensee's or other person's insolvency; | 1648 |
(b) Significant dissipation of the licensee's or other | 1649 |
person's earnings or assets; | 1650 |
(c) Weakening of the licensee's or other person's condition | 1651 |
or other prejudice to the interests of the licensee's or other | 1652 |
person's customers. | 1653 |
(D) A cease and desist order may require the licensee or | 1654 |
other person to cease and desist from each violation or unsafe or | 1655 |
unsound practice, to correct or remedy the conditions resulting | 1656 |
from each violation or unsafe or unsound practice, and to take | 1657 |
affirmative action, including any of the following: | 1658 |
(1) Make restitution or provide reimbursement, | 1659 |
indemnification, or guarantee against loss, if either of the | 1660 |
following applies: | 1661 |
(a) The licensee or other person was or will be unjustly | 1662 |
enriched in connection with the violation or practice. | 1663 |
(b) The violation or practice involved a reckless disregard | 1664 |
for the law or any applicable rule or prior order of the | 1665 |
superintendent. | 1666 |
(2) Restrict the licensee's or other person's growth; | 1667 |
(3) Dispose of any loan or asset involved; | 1668 |
(4) Rescind agreements or contracts; | 1669 |
(5) Employ qualified officers or employees, who may be | 1670 |
subject to approval by the superintendent; | 1671 |
(6) Take any other action that the superintendent determines | 1672 |
appropriate. | 1673 |
(E) A cease and desist order issued by the superintendent | 1674 |
pursuant to division (C) of this section is effective at the time | 1675 |
specified in the order, which shall be as follows: | 1676 |
(1) In the case of a cease and desist order issued pursuant | 1677 |
to division (C)(2) of this section, not less than thirty days | 1678 |
after service of the order upon the licensee or other person; | 1679 |
(2) In the case of a cease and desist order issued pursuant | 1680 |
to division (C)(1), (3), or (4) of this section, immediately upon | 1681 |
service of the order on the licensee or other person. | 1682 |
(F) A cease and desist order shall remain effective and | 1683 |
enforceable as provided in the order except to the extent it is | 1684 |
stayed, modified, terminated, or set aside by action of the | 1685 |
superintendent or a reviewing court. If, upon the record of a | 1686 |
hearing, the superintendent determines not to issue a cease and | 1687 |
desist order, any cease and desist order issued pursuant to | 1688 |
division (C)(3) or (4) of this section is terminated. | 1689 |
(G) Within ten days after being served a cease and desist | 1690 |
order issued pursuant to division (C)(3) or (4) of this section, a | 1691 |
licensee or other person may apply to the court of common pleas of | 1692 |
the county in which the principal place of business of the | 1693 |
licensee or other person is located, or to the court of common | 1694 |
pleas of Franklin county, for an injunction setting aside, | 1695 |
limiting, or suspending the enforcement, operation, or | 1696 |
effectiveness of the cease and desist order pending completion of | 1697 |
the hearing to determine whether a cease and desist order should | 1698 |
be issued against the licensee or other person pursuant to | 1699 |
division (C)(2) of this section, and the court has jurisdiction to | 1700 |
issue the injunction. | 1701 |
Sec. 1315.151. (A) The superintendent of financial | 1702 |
institutions may issue and serve a notice of charges and intent to | 1703 |
suspend or revoke a licensee's license, if the superintendent | 1704 |
finds that any of the following applies: | 1705 |
(1) Any fact or condition exists that, if it had existed at | 1706 |
the time when the licensee applied for its license, would have | 1707 |
been grounds for denying the application. | 1708 |
(2) The licensee's net worth becomes inadequate and the | 1709 |
licensee, after ten days' written notice from the superintendent, | 1710 |
fails to take steps that the superintendent considers necessary to | 1711 |
remedy the deficiency. | 1712 |
(3) The licensee knowingly violates any material provision of | 1713 |
sections 1315.01 to 1315.18 of the Revised Code or any rule or | 1714 |
order adopted by the superintendent. | 1715 |
(4) The licensee is conducting its business in an unsafe or | 1716 |
unsound manner. | 1717 |
(5) The licensee is insolvent. | 1718 |
(6) The licensee has suspended payment of its obligations, | 1719 |
has made an assignment for the benefit of its creditors, or has | 1720 |
admitted in writing its inability to pay its debts as they become | 1721 |
due. | 1722 |
(7) The licensee has applied for an adjudication of | 1723 |
bankruptcy, reorganization, arrangement, or other relief relating | 1724 |
to bankruptcy. | 1725 |
(8) The licensee refuses to permit the superintendent to make | 1726 |
any examination authorized by sections 1315.01 to 1315.18 of the | 1727 |
Revised Code. | 1728 |
(9) The licensee willfully fails to make any report required | 1729 |
by sections 1315.01 to 1315.18 of the Revised Code. | 1730 |
(10) The competence, experience, character, or general | 1731 |
fitness of the licensee indicates that it is not in the public | 1732 |
interest to permit the licensee to continue to transmit money in | 1733 |
this state. | 1734 |
(B) The notice of charges and intent to suspend or revoke a | 1735 |
license described in division (A) of this section shall include | 1736 |
all of the following: | 1737 |
(1) A statement of the grounds alleged; | 1738 |
(2) A statement of the facts constituting the grounds | 1739 |
alleged; | 1740 |
(3) Notice that the licensee is entitled to a hearing, in | 1741 |
accordance with section 1315.17 of the Revised Code, to determine | 1742 |
whether a license should be suspended or revoked, if the licensee | 1743 |
requests the hearing within thirty days of service of the notice; | 1744 |
(4) Notice that, if the licensee makes a timely request for a | 1745 |
hearing, the licensee may appear at the hearing in person or by | 1746 |
attorney or by presenting positions, arguments, and contentions in | 1747 |
writing, and at the hearing may present evidence and examine | 1748 |
witnesses for and against the licensee. | 1749 |
(5) Notice that failure of the licensee to make a timely | 1750 |
request for a hearing to determine whether the license should be | 1751 |
suspended or revoked or to appear at the hearing, in person, by | 1752 |
attorney, or by writing, is consent by the licensee to the | 1753 |
suspension or revocation of the license. | 1754 |
(C) The superintendent may order a license suspended or | 1755 |
revoked, if any of the following applies: | 1756 |
(1) The licensee consents to the suspension or revocation. | 1757 |
(2) Upon the record of the hearing described in division (B) | 1758 |
of this section, the superintendent finds that one or more grounds | 1759 |
alleged pursuant to that division have been established. | 1760 |
(3) The superintendent determines that the licensee's books | 1761 |
and records are too incomplete or inaccurate to permit the | 1762 |
superintendent, through the normal supervisory process, to | 1763 |
determine the financial condition of the licensee or the details | 1764 |
or purpose of one or more transactions that may have a material | 1765 |
effect on the financial condition of the licensee. | 1766 |
(4) The superintendent finds that one or more of the grounds | 1767 |
alleged pursuant to division (B) of this section are likely, prior | 1768 |
to completion of the hearing described in that division, to cause | 1769 |
any of the following: | 1770 |
(a) The licensee's insolvency; | 1771 |
(b) Significant dissipation of the licensee's earnings or | 1772 |
assets; | 1773 |
(c) Weakening of the licensee's condition or other prejudice | 1774 |
to the interests of the licensee's customers. | 1775 |
(D) A suspension or revocation of a license order issued by | 1776 |
the superintendent pursuant to division (C) of this section is | 1777 |
effective at the time specified in the order, which shall be as | 1778 |
follows: | 1779 |
(1) In the case of a suspension or revocation order issued | 1780 |
pursuant to division (C)(2) of this section, not less than thirty | 1781 |
days after service of the order upon the licensee; | 1782 |
(2) In the case of a suspension or revocation order issued | 1783 |
pursuant to division (C)(1), (3), or (4) of this section, | 1784 |
immediately upon service of the order on the licensee. | 1785 |
(E) A suspension or revocation of a license order shall | 1786 |
remain effective and enforceable as provided in the order except | 1787 |
to the extent it is stayed, modified, terminated, or set aside by | 1788 |
action of the superintendent or a reviewing court. If, upon the | 1789 |
record of a hearing, the superintendent determines not to suspend | 1790 |
or revoke a license, any suspension or revocation order issued | 1791 |
pursuant to division (C)(3) or (4) of this section is terminated. | 1792 |
(F) Within ten days after being served a suspension or | 1793 |
revocation of a license order issued pursuant to division (C)(3) | 1794 |
or (4) of this section, a licensee may apply to the court of | 1795 |
common pleas of the county in which the principal place of | 1796 |
business of the licensee is located, or to the court of common | 1797 |
pleas of Franklin county, for an injunction setting aside, | 1798 |
limiting, or suspending the enforcement, operation, or | 1799 |
effectiveness of the suspension or revocation order pending | 1800 |
completion of the hearing to determine whether a suspension or | 1801 |
revocation order should be issued against the licensee pursuant to | 1802 |
division (C)(2) of this section, and the court has jurisdiction to | 1803 |
issue the injunction. | 1804 |
Sec. 1315.152. (A) The superintendent of financial | 1805 |
institutions may assess civil penalties against a licensee or | 1806 |
other person for each day a violation, unsafe or unsound practice, | 1807 |
or breach continues as follows: | 1808 |
(1) The superintendent may assess a civil penalty of not more | 1809 |
than five hundred dollars per day if the licensee or other person | 1810 |
violates any of the following: | 1811 |
(a) Any law or rule; | 1812 |
(b) Any order issued pursuant to section 1315.15 or 1315.151 | 1813 |
of the Revised Code; | 1814 |
(c) Any condition imposed in writing by the superintendent in | 1815 |
connection with granting any application by the licensee or other | 1816 |
person; | 1817 |
(d) A written agreement between the licensee or other person | 1818 |
and the superintendent. | 1819 |
(2) The superintendent may assess a civil penalty of not more | 1820 |
than one thousand dollars per day if both of the following apply: | 1821 |
(a) The licensee or other person does any of the following: | 1822 |
(i) Commits any violation listed in division (A)(1) of this | 1823 |
section; | 1824 |
(ii) Recklessly engages in an unsafe or unsound practice; | 1825 |
(iii) Breaches any fiduciary duty. | 1826 |
(b) The violation, unsafe or unsound practice, or breach is | 1827 |
part of a pattern of misconduct or causes or is likely to cause | 1828 |
more than a minimal loss to the licensee or other person. | 1829 |
(B) A notice of assessment of a civil penalty shall include | 1830 |
all of the following: | 1831 |
(1) A statement of the violation or violations or unsafe or | 1832 |
unsound practice or practices or breach or breaches alleged; | 1833 |
(2) A statement of the facts supporting the assessment of the | 1834 |
civil penalty; | 1835 |
(3) Notice that the licensee or other person is entitled to a | 1836 |
hearing, in accordance with section 1315.17 of the Revised Code to | 1837 |
determine whether a civil penalty should be assessed against the | 1838 |
licensee or other person, if the licensee or other person requests | 1839 |
the hearing within thirty days of service of the notice of | 1840 |
assessment of a civil penalty; | 1841 |
(4) Notice that, if the licensee or other person makes a | 1842 |
timely request for a hearing, the licensee or other person may | 1843 |
appear at the hearing in person, by attorney, or by presenting | 1844 |
positions, arguments, and contentions in writing, and at the | 1845 |
hearing may present evidence and examine witnesses for and against | 1846 |
the licensee or other person; | 1847 |
(5) Notice that failure of the licensee or other person to | 1848 |
make a timely request for a hearing to determine whether a civil | 1849 |
penalty should be assessed against the licensee or other person, | 1850 |
or to appear at the hearing, in person, by attorney, or by | 1851 |
writing, is consent by the licensee or other person to the | 1852 |
assessment of the civil penalty. | 1853 |
(C) The superintendent may assess a civil penalty if either | 1854 |
of the following applies: | 1855 |
(1) The licensee or other person consents to the assessment | 1856 |
of the civil penalty. | 1857 |
(2) Upon the record of the hearing described in division (B) | 1858 |
of this section the superintendent finds a violation, unsafe or | 1859 |
unsound practice, or breach has been established. | 1860 |
(D) In determining the amount of the civil penalty to be | 1861 |
assessed pursuant to this section, the superintendent shall | 1862 |
consider all of the following: | 1863 |
(1) The seriousness of and the risk posed by the violation, | 1864 |
unsafe or unsound practice, or breach; | 1865 |
(2) The licensee's or other person's good faith efforts to | 1866 |
prevent the violation, unsafe or unsound practice, or breach; | 1867 |
(3) The licensee's or other person's history regarding | 1868 |
violations, unsafe or unsound practices, and breaches; | 1869 |
(4) The licensee's or other person's financial resources; | 1870 |
(5) Any other matters justice may require. | 1871 |
(E) Any licensee's or other person assessed a civil penalty | 1872 |
pursuant to this section shall pay the civil penalty to the | 1873 |
superintendent, and the superintendent shall deposit any civil | 1874 |
penalty paid into the state treasury to the credit of the general | 1875 |
revenue fund. | 1876 |
Sec. 1315.153. If the superintendent of financial | 1877 |
institutions has reason to believe that a person has violated or | 1878 |
is violating section 1315.02 of the Revised Code, the | 1879 |
superintendent may petition the court of common pleas of the | 1880 |
county where the person's principal place of business or residence | 1881 |
is located or, if the person's principal place of business or | 1882 |
residence is not in this state, the court of common pleas of | 1883 |
Franklin county for the issuance of a temporary restraining order | 1884 |
or an injunction. | 1885 |
Sec. 1315.16. (A) The superintendent of financial | 1886 |
institutions may do both of the following: | 1887 |
(1) Summon and compel, by order or subpoena, witnesses to | 1888 |
appear before the superintendent, deputy superintendent, examiner, | 1889 |
or attorney examiner, and testify under oath regarding the affairs | 1890 |
of a licensee or other person; | 1891 |
(2) Compel, by order or subpoena, the production of any | 1892 |
record, book, paper, document, item, or other thing pertaining to | 1893 |
a licensee or other person. | 1894 |
(B) The superintendent shall serve an order or subpoena | 1895 |
issued pursuant to division (A) of this section in any manner | 1896 |
provided by section 1315.161 of the Revised Code. | 1897 |
(C) If a person fails to comply with an order or subpoena of | 1898 |
the superintendent or refuses to testify to any matter regarding | 1899 |
which the person is lawfully interrogated before the | 1900 |
superintendent, on application of the superintendent, the court of | 1901 |
common pleas of the county in which the person resides or in which | 1902 |
the principal place of business of the person is located, or a | 1903 |
judge of the court, shall compel compliance by attachment | 1904 |
proceedings as for contempt in the case of noncompliance with a | 1905 |
subpoena issued from the court or refusal to testify in the court. | 1906 |
Sec. 1315.161. (A) The superintendent of financial | 1907 |
institutions may serve any notice that the superintendent is | 1908 |
required or authorized to give and any subpoena or order that the | 1909 |
superintendent is required or authorized to issue pursuant to | 1910 |
sections 1315.01 to 1315.18 of the Revised Code, at the sole | 1911 |
discretion of the superintendent, by any of the following means: | 1912 |
(1) In person by the superintendent or an employee or agent | 1913 |
of the division of financial institutions; | 1914 |
(2) By regular mail; | 1915 |
(3) By registered or certified mail; | 1916 |
(4) By private carrier; | 1917 |
(5) By any other means permitted by the Rules of Civil | 1918 |
Procedure for service of process; | 1919 |
(6) By any other manner the superintendent provides, by rule | 1920 |
or otherwise, that is reasonably calculated to give notice, | 1921 |
including by publication. | 1922 |
(B) A notice, subpoena, or order served by the superintendent | 1923 |
in accordance with this section is effective upon delivery with | 1924 |
respect to divisions (A)(1) and (4) of this section, upon placing | 1925 |
in the regular mail with respect to divisions (A)(2) and (3) of | 1926 |
this section, and upon publication or completion of the act | 1927 |
reasonably calculated to give notice with respect to division | 1928 |
(A)(6) of this section. | 1929 |
(C) Fees for service of a notice, subpoena, or order | 1930 |
described in division (A) of this section shall be paid from | 1931 |
amounts appropriated to the division of financial institutions for | 1932 |
that purpose. | 1933 |
Sec. 1315.17. (A)(1) Upon a licensee's or other person's | 1934 |
request for an administrative hearing authorized in section | 1935 |
1315.15, 1315.151, or 1315.152 of the Revised Code, the division | 1936 |
of financial institutions shall set a reasonable time, date, and | 1937 |
place in this state for the hearing and notify the licensee or | 1938 |
other person requesting the hearing. Within ninety days after the | 1939 |
hearing, the superintendent of financial institutions shall render | 1940 |
a decision, which shall include findings of fact upon which the | 1941 |
decision is predicated, and shall issue and serve on the licensee | 1942 |
or other person the decision and an order consistent with the | 1943 |
decision. Judicial review of the order exclusively is as provided | 1944 |
in division (B) of this section. Unless a notice of appeal is | 1945 |
filed within thirty days after service of the superintendent's | 1946 |
order as provided in division (B) of this section, and until the | 1947 |
record of the administrative hearing has been filed, the | 1948 |
superintendent may, at anytime, upon the notice and in the manner | 1949 |
that the superintendent considers proper, modify, terminate, or | 1950 |
set aside the superintendent's order. After filing the record, the | 1951 |
superintendent may modify, terminate, or set aside the | 1952 |
superintendent's order with permission of the court. | 1953 |
(2) In the course of, or in connection with, an | 1954 |
administrative hearing governed by this section, the | 1955 |
superintendent, or a person designated by the superintendent to | 1956 |
conduct the hearing, may administer oaths and affirmations; take | 1957 |
or cause depositions to be taken; and issue, revoke, quash, or | 1958 |
modify subpoenas and subpoenas duces tecum. The superintendent may | 1959 |
adopt rules regarding these hearings. The attendance of witnesses | 1960 |
and the production of documents provided for in this section may | 1961 |
be required from any place within or outside the state. A party to | 1962 |
a hearing governed by this section may apply to the court of | 1963 |
common pleas of Franklin county, or the court of common pleas of | 1964 |
the county in which the hearing is being conducted or the witness | 1965 |
resides or carries on business, for enforcement of a subpoena or | 1966 |
subpoena duces tecum issued pursuant to this section, and the | 1967 |
courts have jurisdiction and power to order and require compliance | 1968 |
with the subpoena. Witnesses subpoenaed under this section shall | 1969 |
be paid the same fees and mileage that are paid witnesses in the | 1970 |
courts of common pleas in civil cases. | 1971 |
(B)(1) A licensee or other person against whom the | 1972 |
superintendent issues an order upon the record of a hearing under | 1973 |
the authority of section 1315.15, 1315.151, or 1315.152 of the | 1974 |
Revised Code may obtain a review of the order by filing a notice | 1975 |
of appeal in the court of common pleas in the county in which the | 1976 |
principal place of business of the licensee or other person, or | 1977 |
the residence of the other person, is located, or in the court of | 1978 |
common pleas of Franklin county, within thirty days after the date | 1979 |
of service of the superintendent's order. The clerk of the court | 1980 |
promptly shall transmit a copy of the notice of appeal to the | 1981 |
superintendent, and the superintendent shall file the record of | 1982 |
the administrative hearing. Upon the filing of the notice of | 1983 |
appeal, the court has jurisdiction, which upon the filing of the | 1984 |
record of the administrative hearing is exclusive, to affirm, | 1985 |
modify, terminate, or set aside, in whole or in part, the | 1986 |
superintendent's order. | 1987 |
(2) The commencement of proceedings for judicial review | 1988 |
pursuant to division (B) of this section does not, unless | 1989 |
specifically ordered by the court, operate as a stay of any order | 1990 |
issued by the superintendent. If it appears to the court an | 1991 |
unusual hardship to the appellant will result from the execution | 1992 |
of the superintendent's order pending determination of the appeal, | 1993 |
and the interests of the public will not be threatened by a stay | 1994 |
of the order, the court may grant a stay and fix its terms. | 1995 |
(C) The superintendent may, in the sole discretion of the | 1996 |
superintendent, apply to the court of common pleas of the county | 1997 |
in which the principal place of business of the licensee or other | 1998 |
person, or the residence of the other person, is located, or the | 1999 |
court of common pleas of Franklin county, for the enforcement of | 2000 |
an effective and outstanding superintendent's order issued under | 2001 |
section 1315.15, 1315.151, or 1315.152 of the Revised Code, and | 2002 |
the court has jurisdiction and power to order and require | 2003 |
compliance with the superintendent's order. In an action by the | 2004 |
superintendent pursuant to this division to enforce an order | 2005 |
assessing a civil penalty issued under section 1315.152 of the | 2006 |
Revised Code, the validity and appropriateness of the civil | 2007 |
penalty is not subject to review. | 2008 |
(D) No court has jurisdiction to affect, by injunction or | 2009 |
otherwise, the issuance or enforcement of an order issued under | 2010 |
section 1315.15, 1315.151, or 1315.152 of the Revised Code or to | 2011 |
review, modify, suspend, terminate, or set aside an order issued | 2012 |
under section 1315.15, 1315.151, or 1315.152 of the Revised Code, | 2013 |
except as provided in this section, in division (G) of section | 2014 |
1315.15 of the Revised Code for an order issued pursuant to | 2015 |
division (C)(3) or (4) of section 1315.15 of the Revised Code, or | 2016 |
in division (F) of section 1315.151 of the Revised Code for an | 2017 |
order issued pursuant to division (C)(3) or (4) of section | 2018 |
1315.151 of the Revised Code. | 2019 |
(E) Nothing in this section or in any other section of the | 2020 |
Revised Code or rules implementing this or any other section of | 2021 |
the Revised Code shall prohibit or limit the superintendent from | 2022 |
doing any of the following: | 2023 |
(1) Issuing orders pursuant to section 1315.15, 1315.151, or | 2024 |
1315.152 of the Revised Code; | 2025 |
(2) Individually or contemporaneously taking any other action | 2026 |
provided by law or rule with respect to a licensee or other | 2027 |
person; | 2028 |
(3) Taking any action provided by law or rule, whether alone | 2029 |
or in conjunction with another regulatory agency or authority, | 2030 |
with respect to a licensee or other person. | 2031 |
Sec. 1315.18. (A) A licensee that ceases to do business in | 2032 |
this state shall do so in accordance with a plan approved by the | 2033 |
superintendent of financial institutions or pursuant to directions | 2034 |
issued by the superintendent in connection with the revocation or | 2035 |
suspension of the licensee's license pursuant to section 1315.151 | 2036 |
of the Revised Code. | 2037 |
(B) When a licensee ceases to do business in this state, if | 2038 |
the superintendent considers it necessary to protect the interests | 2039 |
of the licensee's customers, the superintendent may do either of | 2040 |
the following: | 2041 |
(1) Take control of permissible investments or other assets | 2042 |
owned by the licensee equal in value to the licensee's | 2043 |
outstandings in this state; | 2044 |
(2) Require the sale of the licensee's contracts for | 2045 |
continuing services or require the licensee's termination of those | 2046 |
contracts with compensation to the customers for loss of the | 2047 |
services. | 2048 |
(C) No licensee shall fail to comply with this section. | 2049 |
Sec. 1315.21. As used in sections 1315.21 to 1315.30 of the | 2050 |
Revised Code: | 2051 |
(A) "Check" means any check, draft, money order, or other | 2052 |
instrument for the transmission or payment of money. "Check" does | 2053 |
not include a travelers check. | 2054 |
(B) "Check-cashing business" means any person | 2055 |
engages in the business of cashing checks for a fee. | 2056 |
"Check-cashing business" does not include any of the following: | 2057 |
(1) A licensee as defined in section 1321.01 of the Revised | 2058 |
Code; | 2059 |
(2) A registrant as defined in section 1321.51 of the Revised | 2060 |
Code; | 2061 |
(3) A financial institution; | 2062 |
(4) A person | 2063 |
selling tangible personal property or services at retail and does | 2064 |
not derive more than five per cent of | 2065 |
income from the cashing of checks; | 2066 |
(5) A person licensed under sections
1315.01 to | 2067 |
1315.18 of the Revised Code, or any agent of that person, to the | 2068 |
extent that the person or the agent is engaged in cashing checks | 2069 |
or travelers checks issued by the licensed person. | 2070 |
(C) "Financial institution" means any bank, trust company, | 2071 |
savings bank, savings and loan association, or credit union,
| 2072 |
that is incorporated or organized under the laws of the United | 2073 |
States or of any state thereof, or of Canada or any province | 2074 |
thereof, and subject to regulation or supervision by such country, | 2075 |
state, or province. | 2076 |
(D) "Superintendent of financial institutions" includes the | 2077 |
deputy superintendent for consumer finance as provided in section | 2078 |
1181.21 of the Revised Code. | 2079 |
Sec. 1315.99. (A) Whoever violates | 2080 |
2081 | |
or division (E)(2) of section 1315.53 of the Revised Code is | 2082 |
guilty of a misdemeanor of the first degree. | 2083 |
(B) Whoever violates division (F)(1) of section 1315.53 or | 2084 |
division (B) of section 1315.54 of the Revised Code is guilty of a | 2085 |
felony of the fourth degree. | 2086 |
(C) Whoever violates division (A) of section 1315.55 of the | 2087 |
Revised Code is guilty of money laundering. A violation of | 2088 |
division (A)(1), (2), (3), (4), or (5) of that section is a felony | 2089 |
of the third degree, and, in addition, the court may impose a fine | 2090 |
of seven thousand five hundred dollars or twice the value of the | 2091 |
property involved, whichever is greater. | 2092 |
(D) Whoever knowingly violates division (A) of section | 2093 |
1315.02, or intentionally violates division (B)(1) of section | 2094 |
1315.081, of the Revised Code is guilty of a felony of the fourth | 2095 |
degree. | 2096 |
Sec. 1733.25. (A) A credit union may make loans to members | 2097 |
for provident and productive purposes as authorized by law, the | 2098 |
articles, and regulations, and subject to policies adopted by the | 2099 |
credit committee and approved by the board of directors. | 2100 |
(B) Upon the approval of the board of directors, a credit | 2101 |
union may make loans to other credit unions, provided that loans | 2102 |
made to other credit unions need not have the approval of the | 2103 |
board of directors on a per case basis. The total of all such | 2104 |
loans, including the aggregate of all money paid into any trust | 2105 |
established by one or more credit unions for the purpose of making | 2106 |
loans to other credit unions, shall not exceed twenty-five per | 2107 |
cent of the shares and undivided earnings of the lending credit | 2108 |
union, except that this percentage limitation does not apply to | 2109 |
corporate credit unions. | 2110 |
(C) The interest on any loan made by a credit union shall not | 2111 |
exceed one and one-half per cent per month on unpaid balances. | 2112 |
Such interest may accrue and be chargeable upon a monthly basis, | 2113 |
and may be computed upon the unpaid balance of the loan as of the | 2114 |
end of the previous calendar month. | 2115 |
Such interest may be accrued and charged by any technique | 2116 |
approved by the superintendent of credit unions so long as the | 2117 |
effective interest rate on any loan does not exceed the amount | 2118 |
permitted to be charged by the computation authorized in this | 2119 |
division. | 2120 |
(D) A credit union may accept security in such form and under | 2121 |
such rules as shall be set forth in the articles, the regulations, | 2122 |
or established by the credit committee and approved by the board | 2123 |
of directors. | 2124 |
(E) The total loans to association members shall not exceed | 2125 |
ten per cent of the shares and undivided earnings or the total | 2126 |
value of shares pledged by association members as security for | 2127 |
loans, whichever is greater. | 2128 |
(F) Subject to any restrictions or requirements established | 2129 |
by the superintendent, in connection with any loan or extension of | 2130 |
credit, a credit union may enter into a debt suspension or debt | 2131 |
cancellation contract with the borrower or borrowers. | 2132 |
Sec. 4719.01. (A) As used in sections 4719.01 to 4719.18 of | 2133 |
the Revised Code: | 2134 |
(1) "Affiliate" means a business entity that is owned by, | 2135 |
operated by, controlled by, or under common control with another | 2136 |
business entity. | 2137 |
(2) "Communication" means a written or oral notification or | 2138 |
advertisement that meets both of the following criteria, as | 2139 |
applicable: | 2140 |
(a) The notification or advertisement is transmitted by or on | 2141 |
behalf of the seller of goods or services and by or through any | 2142 |
printed, audio, video, cinematic, telephonic, or electronic means. | 2143 |
(b) In the case of a notification or advertisement other than | 2144 |
by telephone, either of the following conditions is met: | 2145 |
(i) The notification or advertisement is followed by a | 2146 |
telephone call from a telephone solicitor or salesperson. | 2147 |
(ii) The notification or advertisement invites a response by | 2148 |
telephone, and, during the course of that response, a telephone | 2149 |
solicitor or salesperson attempts to make or makes a sale of goods | 2150 |
or services. As used in division (A)(2)(b)(ii) of this section, | 2151 |
"invites a response by telephone" excludes the mere listing or | 2152 |
inclusion of a telephone number in a notification or | 2153 |
advertisement. | 2154 |
(3) "Gift, award, or prize" means anything of value that is | 2155 |
offered or purportedly offered, or given or purportedly given by | 2156 |
chance, at no cost to the receiver and with no obligation to | 2157 |
purchase goods or services. As used in this division, "chance" | 2158 |
includes a situation in which a person is guaranteed to receive an | 2159 |
item and, at the time of the offer or purported offer, the | 2160 |
telephone solicitor does not identify the specific item that the | 2161 |
person will receive. | 2162 |
(4) "Goods or services" means any real property or any | 2163 |
tangible or intangible personal property, or services of any kind | 2164 |
provided or offered to a person. "Goods or services" includes, but | 2165 |
is not limited to, advertising; labor performed for the benefit of | 2166 |
a person; personal property intended to be attached to or | 2167 |
installed in any real property, regardless of whether it is so | 2168 |
attached or installed; timeshare estates or licenses; and extended | 2169 |
service contracts. | 2170 |
(5) "Purchaser" means a person that is solicited to become or | 2171 |
does become financially obligated as a result of a telephone | 2172 |
solicitation. | 2173 |
(6) "Salesperson" means an individual who is employed, | 2174 |
appointed, or authorized by a telephone solicitor to make | 2175 |
telephone solicitations but does not mean any of the following: | 2176 |
(a) An individual who comes within one of the exemptions in | 2177 |
division (B) of this section; | 2178 |
(b) An individual employed, appointed, or authorized by a | 2179 |
person who comes within one of the exemptions in division (B) of | 2180 |
this section; | 2181 |
(c) An individual under a written contract with a person who | 2182 |
comes within one of the exemptions in division (B) of this | 2183 |
section, if liability for all transactions with purchasers is | 2184 |
assumed by the person so exempted. | 2185 |
(7) "Telephone solicitation" means a communication to a | 2186 |
person that meets both of the following criteria: | 2187 |
(a) The communication is initiated by or on behalf of a | 2188 |
telephone solicitor or by a salesperson. | 2189 |
(b) The communication either represents a price or the | 2190 |
quality or availability of goods or services or is used to induce | 2191 |
the person to purchase goods or services, including, but not | 2192 |
limited to, inducement through the offering of a gift, award, or | 2193 |
prize. | 2194 |
(8) "Telephone solicitor" means a person that engages in | 2195 |
telephone solicitation directly or through one or more | 2196 |
salespersons either from a location in this state, or from a | 2197 |
location outside this state to persons in this state. "Telephone | 2198 |
solicitor" includes, but is not limited to, any such person that | 2199 |
is an owner, operator, officer, or director of, partner in, or | 2200 |
other individual engaged in the management activities of, a | 2201 |
business. | 2202 |
(B) A telephone solicitor is exempt from the provisions of | 2203 |
sections 4719.02 to 4719.18 and section 4719.99 of the Revised | 2204 |
Code if the telephone solicitor is any one of the following: | 2205 |
(1) A person engaging in a telephone solicitation that is a | 2206 |
one-time or infrequent transaction not done in the course of a | 2207 |
pattern of repeated transactions of a like nature; | 2208 |
(2) A person engaged in telephone solicitation solely for | 2209 |
religious or political purposes; a charitable organization, | 2210 |
fund-raising counsel, or professional solicitor in compliance with | 2211 |
the registration and reporting requirements of Chapter 1716. of | 2212 |
the Revised Code; or any person or other entity exempt under | 2213 |
section 1716.03 of the Revised Code from filing a registration | 2214 |
statement under section 1716.02 of the Revised Code; | 2215 |
(3) A person, making a telephone solicitation involving a | 2216 |
home solicitation sale as defined in section 1345.21 of the | 2217 |
Revised Code, that makes the sales presentation and completes the | 2218 |
sale at a later, face-to-face meeting between the seller and the | 2219 |
purchaser rather than during the telephone solicitation. However, | 2220 |
if the person, following the telephone solicitation, causes | 2221 |
another person to collect the payment of any money, this exemption | 2222 |
does not apply. | 2223 |
(4) A licensed securities, commodities, or investment broker, | 2224 |
dealer, investment advisor, or associated person when making a | 2225 |
telephone solicitation within the scope of the person's license. | 2226 |
As used in division (B)(4) of this section, "licensed securities, | 2227 |
commodities, or investment broker, dealer, investment advisor, or | 2228 |
associated person" means a person subject to licensure or | 2229 |
registration as such by the securities and exchange commission; | 2230 |
the National Association of Securities Dealers or other | 2231 |
self-regulatory organization, as defined by 15 U.S.C.A. 78c; by | 2232 |
the division of securities under Chapter 1707. of the Revised | 2233 |
Code; or by an official or agency of any other state of the United | 2234 |
States. | 2235 |
(5)(a) A person primarily engaged in soliciting the sale of a | 2236 |
newspaper of general circulation; | 2237 |
(b) As used in division (B)(5)(a) of this section, "newspaper | 2238 |
of general circulation" includes, but is not limited to, both of | 2239 |
the following: | 2240 |
(i) A newspaper that is a daily law journal designated as an | 2241 |
official publisher of court calendars pursuant to section 2701.09 | 2242 |
of the Revised Code; | 2243 |
(ii) A newspaper or publication that has at least twenty-five | 2244 |
per cent editorial, non-advertising content, exclusive of inserts, | 2245 |
measured relative to total publication space, and an audited | 2246 |
circulation to at least fifty per cent of the households in the | 2247 |
newspaper's retail trade zone as defined by the audit. | 2248 |
(6)(a) An issuer, or its subsidiary, that has a class of | 2249 |
securities to which all of the following apply: | 2250 |
(i) The class of securities is subject to section 12 of the | 2251 |
"Securities Exchange Act of 1934," 15 U.S.C.A. 78l, and is | 2252 |
registered or is exempt from registration under 15 U.S.C.A. | 2253 |
78l(g)(2)(A), (B), (C), (E), (F), (G), or (H); | 2254 |
(ii) The class of securities is listed on the New York stock | 2255 |
exchange, the American stock exchange, or the NASDAQ national | 2256 |
market system; | 2257 |
(iii) The class of securities is a reported security as | 2258 |
defined in 17 C.F.R. 240.11Aa3-1(a)(4). | 2259 |
(b) An issuer, or its subsidiary, that formerly had a class | 2260 |
of securities that met the criteria set forth in division | 2261 |
(B)(6)(a) of this section if the issuer, or its subsidiary, has a | 2262 |
net worth in excess of one hundred million dollars, files or its | 2263 |
parent files with the securities and exchange commission an S.E.C. | 2264 |
form 10-K, and has continued in substantially the same business | 2265 |
since it had a class of securities that met the criteria in | 2266 |
division (B)(6)(a) of this section. As used in division (B)(6)(b) | 2267 |
of this section, "issuer" and "subsidiary" include the successor | 2268 |
to an issuer or subsidiary. | 2269 |
(7) A person soliciting a transaction regulated by the | 2270 |
commodity futures trading commission, if the person is registered | 2271 |
or temporarily registered for that activity with the commission | 2272 |
under 7 U.S.C.A. 1 et. seq. and the registration or temporary | 2273 |
registration has not expired or been suspended or revoked; | 2274 |
(8) A person soliciting the sale of any book, record, audio | 2275 |
tape, compact disc, or video, if the person allows the purchaser | 2276 |
to review the merchandise for at least seven days and provides a | 2277 |
full refund within thirty days to a purchaser who returns the | 2278 |
merchandise or if the person solicits the sale on behalf of a | 2279 |
membership club operating in compliance with regulations adopted | 2280 |
by the federal trade commission in 16 C.F.R. 425; | 2281 |
(9) A supervised financial institution or its subsidiary. As | 2282 |
used in division (B)(9) of this section, "supervised financial | 2283 |
institution" means a bank, trust company, savings and loan | 2284 |
association, savings bank, credit union, industrial loan company, | 2285 |
consumer finance lender, commercial finance lender, or institution | 2286 |
described in section 2(c)(2)(F) of the "Bank Holding Company Act | 2287 |
of 1956," 12 U.S.C.A. 1841(c)(2)(F), as amended, supervised by an | 2288 |
official or agency of the United States, this state, or any other | 2289 |
state of the United States; or a licensee or registrant under | 2290 |
sections 1321.01 to 1321.19, 1321.51 to 1321.60, or 1321.71 to | 2291 |
1321.83 of the Revised Code. | 2292 |
(10)(a) An insurance company, association, or other | 2293 |
organization that is licensed or authorized to conduct business in | 2294 |
this state by the superintendent of insurance pursuant to Title | 2295 |
XXXIX of the Revised Code or Chapter 1751. of the Revised Code, | 2296 |
when soliciting within the scope of its license or authorization. | 2297 |
(b) A licensed insurance broker, agent, or solicitor when | 2298 |
soliciting within the scope of the person's license. As used in | 2299 |
division (B)(10)(b) of this section, "licensed insurance broker, | 2300 |
agent, or solicitor" means any person licensed as an insurance | 2301 |
broker, agent, or solicitor by the superintendent of insurance | 2302 |
pursuant to Title XXXIX of the Revised Code. | 2303 |
(11) A person soliciting the sale of services provided by a | 2304 |
cable television system operating under authority of a | 2305 |
governmental franchise or permit; | 2306 |
(12) A person soliciting a business-to-business sale under | 2307 |
which any of the following conditions are met: | 2308 |
(a) The telephone solicitor has been operating continuously | 2309 |
for at least three years under the same business name under which | 2310 |
it solicits purchasers, and at least fifty-one per cent of its | 2311 |
gross dollar volume of sales consists of repeat sales to existing | 2312 |
customers to whom it has made sales under the same business name. | 2313 |
(b) The purchaser business intends to resell the goods | 2314 |
purchased. | 2315 |
(c) The purchaser business intends to use the goods or | 2316 |
services purchased in a recycling, reuse, manufacturing, or | 2317 |
remanufacturing process. | 2318 |
(d) The telephone solicitor is a publisher of a periodical or | 2319 |
of magazines distributed as controlled circulation publications as | 2320 |
defined in division (CC) of section 5739.01 of the Revised Code | 2321 |
and is soliciting sales of advertising, subscriptions, reprints, | 2322 |
lists, information databases, conference participation or | 2323 |
sponsorships, trade shows or media products related to the | 2324 |
periodical or magazine, or other publishing services provided by | 2325 |
the controlled circulation publication. | 2326 |
(13) A person that, not less often than once each year, | 2327 |
publishes and delivers to potential purchasers a catalog that | 2328 |
complies with both of the following: | 2329 |
(a) It includes all of the following: | 2330 |
(i) The business address of the seller; | 2331 |
(ii) A written description or illustration of each good or | 2332 |
service offered for sale; | 2333 |
(iii) A clear and conspicuous disclosure of the sale price of | 2334 |
each good or service; shipping, handling, and other charges; and | 2335 |
return policy; | 2336 |
(b) One of the following applies: | 2337 |
(i) The catalog includes at least twenty-four pages of | 2338 |
written material and illustrations, is distributed in more than | 2339 |
one state, and has an annual postage-paid mail circulation of not | 2340 |
less than two hundred fifty thousand households; | 2341 |
(ii) The catalog includes at least ten pages of written | 2342 |
material or an equivalent amount of material in electronic form on | 2343 |
the internet or an on-line computer service, the person does not | 2344 |
solicit customers by telephone but solely receives telephone calls | 2345 |
made in response to the catalog, and during the calls the person | 2346 |
takes orders but does not engage in further solicitation of the | 2347 |
purchaser. As used in division (B)(13)(b)(ii) of this section, | 2348 |
"further solicitation" does not include providing the purchaser | 2349 |
with information about, or attempting to sell, any other item in | 2350 |
the catalog that prompted the purchaser's call or in a | 2351 |
substantially similar catalog issued by the seller. | 2352 |
(14) A political subdivision or instrumentality of the United | 2353 |
States, this state, or any state of the United States; | 2354 |
(15) A college or university or any other public or private | 2355 |
institution of higher education in this state; | 2356 |
(16) A public utility as defined in section 4905.02 of the | 2357 |
Revised Code or a retail natural gas supplier as defined in | 2358 |
section 4929.01 of the Revised Code, if the utility or supplier is | 2359 |
subject to regulation by the public utilities commission, or the | 2360 |
affiliate of the utility or supplier; | 2361 |
(17) A person that solicits sales through a television | 2362 |
program or advertisement that is presented in the same market area | 2363 |
no fewer than twenty days per month or offers for sale no fewer | 2364 |
than ten distinct items of goods or services; and offers to the | 2365 |
purchaser an unconditional right to return any good or service | 2366 |
purchased within a period of at least seven days and to receive a | 2367 |
full refund within thirty days after the purchaser returns the | 2368 |
good or cancels the service; | 2369 |
(18)(a) A person that, for at least one year, has been | 2370 |
operating a retail business under the same name as that used in | 2371 |
connection with telephone solicitation and both of the following | 2372 |
occur on a continuing basis: | 2373 |
(i) The person either displays goods and offers them for | 2374 |
retail sale at the person's business premises or offers services | 2375 |
for sale and provides them at the person's business premises. | 2376 |
(ii) At least fifty-one per cent of the person's gross dollar | 2377 |
volume of retail sales involves purchases of goods or services at | 2378 |
the person's business premises. | 2379 |
(b) An affiliate of a person that meets the requirements in | 2380 |
division (B)(18)(a) of this section if the affiliate meets all of | 2381 |
the following requirements: | 2382 |
(i) The affiliate has operated a retail business for a period | 2383 |
of less than one year; | 2384 |
(ii) The affiliate either displays goods and offers them for | 2385 |
retail sale at the affiliate's business premises or offers | 2386 |
services for sale and provides them at the affiliate's business | 2387 |
premises; | 2388 |
(iii) At least fifty-one per cent of the affiliate's gross | 2389 |
dollar volume of retail sales involves purchases of goods or | 2390 |
services at the affiliate's business premises. | 2391 |
(c) A person that, for a period of less than one year, has | 2392 |
been operating a retail business in this state under the same name | 2393 |
as that used in connection with telephone solicitation, as long as | 2394 |
all of the following requirements are met: | 2395 |
(i) The person either displays goods and offers them for | 2396 |
retail sale at the person's business premises or offers services | 2397 |
for sale and provides them at the person's business premises; | 2398 |
(ii) The goods or services that are the subject of telephone | 2399 |
solicitation are sold at the person's business premises, and at | 2400 |
least sixty-five per cent of the person's gross dollar volume of | 2401 |
retail sales involves purchases of goods or services at the | 2402 |
person's business premises; | 2403 |
(iii) The person conducts all telephone solicitation | 2404 |
activities according to sections 310.3, 310.4, and 310.5 of the | 2405 |
telemarketing sales rule adopted by the federal trade commission | 2406 |
in 16 C.F.R. part 310. | 2407 |
(19) A person who performs telephone solicitation sales | 2408 |
services on behalf of other persons and to whom one of the | 2409 |
following applies: | 2410 |
(a) The person has operated under the same ownership, | 2411 |
control, and business name for at least five years, and the person | 2412 |
receives at least seventy-five per cent of its gross revenues from | 2413 |
written telephone solicitation contracts with persons who come | 2414 |
within one of the exemptions in division (B) of this section. | 2415 |
(b) The person is an affiliate of one or more exempt persons | 2416 |
and makes telephone solicitations on behalf of only the exempt | 2417 |
persons of which it is an affiliate. | 2418 |
(c) The person makes telephone solicitations on behalf of | 2419 |
only exempt persons, the person and each exempt person on whose | 2420 |
behalf telephone solicitations are made have entered into a | 2421 |
written contract that specifies the manner in which the telephone | 2422 |
solicitations are to be conducted and that at a minimum requires | 2423 |
compliance with the telemarketing sales rule adopted by the | 2424 |
federal trade commission in 16 C.F.R. part 310, and the person | 2425 |
conducts the telephone solicitations in the manner specified in | 2426 |
the written contract. | 2427 |
(d) The person performs telephone solicitation for religious | 2428 |
or political purposes, a charitable organization, a fund-raising | 2429 |
council, or a professional solicitor in compliance with the | 2430 |
registration and reporting requirements of Chapter 1716. of the | 2431 |
Revised Code; and meets all of the following requirements: | 2432 |
(i) The person has operated under the same ownership, | 2433 |
control, and business name for at least five years, and the person | 2434 |
receives at least fifty-one per cent of its gross revenues from | 2435 |
written telephone solicitation contracts with persons who come | 2436 |
within the exemption in division (B)(2) of this section; | 2437 |
(ii) The person does not conduct a prize promotion or offer | 2438 |
the
sale of an investment opportunity; | 2439 |
(iii) The person conducts all telephone solicitation | 2440 |
activities according to sections 310.3, 310.4, and 310.5 of the | 2441 |
telemarketing sales rules adopted by the federal trade commission | 2442 |
in 16 C.F.R. part 310. | 2443 |
(20) A person that is a licensed real estate salesperson or | 2444 |
broker under Chapter 4735. of the Revised Code when soliciting | 2445 |
within the scope of the person's license; | 2446 |
(21)(a) Either of the following: | 2447 |
(i) A publisher that solicits the sale of the publisher's | 2448 |
periodical or magazine of general, paid circulation, or a person | 2449 |
that solicits a sale of that nature on behalf of a publisher under | 2450 |
a written agreement directly between the publisher and the person. | 2451 |
(ii) A publisher that solicits the sale of the publisher's | 2452 |
periodical or magazine of general, paid circulation, or a person | 2453 |
that solicits a sale of that nature as authorized by a publisher | 2454 |
under a written agreement directly with a publisher's | 2455 |
clearinghouse provided the person is a resident of Ohio for more | 2456 |
than three years and initiates all telephone solicitations from | 2457 |
Ohio and the person conducts the solicitation and sale in | 2458 |
compliance with 16 C.F.R. | 2459 |
trade commission. | 2460 |
(b) As used in division (B)(21) of this section, "periodical | 2461 |
or magazine of general, paid circulation" excludes a periodical or | 2462 |
magazine circulated only as part of a membership package or given | 2463 |
as a free gift or prize from the publisher or person. | 2464 |
(22) A person that solicits the sale of food, as defined in | 2465 |
section 3715.01 of the Revised Code, or the sale of products of | 2466 |
horticulture, as defined in section 5739.01 of the Revised Code, | 2467 |
if the person does not intend the solicitation to result in, or | 2468 |
the solicitation actually does not result in, a sale that costs | 2469 |
the purchaser an amount greater than five hundred dollars. | 2470 |
(23) A funeral director licensed pursuant to Chapter 4717. of | 2471 |
the Revised Code when soliciting within the scope of that license, | 2472 |
if both of the following apply: | 2473 |
(a) The solicitation and sale are conducted in compliance | 2474 |
with 16 C.F.R. part 453, as adopted by the federal trade | 2475 |
commission, and with sections 1107.33 and 1345.21 to 1345.28 of | 2476 |
the Revised Code; | 2477 |
(b) The person provides to the purchaser of any preneed | 2478 |
funeral contract a notice that clearly and conspicuously sets | 2479 |
forth the cancellation rights specified in division (G) of section | 2480 |
1107.33 of the Revised Code, and retains a copy of the notice | 2481 |
signed by the purchaser. | 2482 |
(24) A person, or affiliate thereof, licensed to sell or | 2483 |
issue Ohio instruments designated as travelers checks pursuant to | 2484 |
sections
1315.01 to | 2485 |
(25) A person that solicits sales from its previous | 2486 |
purchasers and meets all of the following requirements: | 2487 |
(a) The solicitation is made under the same business name | 2488 |
that was previously used to sell goods or services to the | 2489 |
purchaser; | 2490 |
(b) The person has, for a period of not less than three | 2491 |
years, operated a business under the same business name as that | 2492 |
used in connection with telephone solicitation; | 2493 |
(c) The person does not conduct a prize promotion or offer | 2494 |
the sale of an investment opportunity; | 2495 |
(d) The person conducts all telephone solicitation activities | 2496 |
according to sections 310.3, 310.4, and 310.5 of the telemarketing | 2497 |
sales rules adopted by the federal trade commission in 16 C.F.R. | 2498 |
part 310; | 2499 |
(e) Neither the person nor any of its principals has been | 2500 |
convicted of, pleaded guilty to, or has entered a plea of no | 2501 |
contest for a felony or a theft offense as defined in sections | 2502 |
2901.02 and 2913.01 of the Revised Code or similar law of another | 2503 |
state or of the United States; | 2504 |
(f) Neither the person nor any of its principals has had | 2505 |
entered against them an injunction or a final judgment or order, | 2506 |
including an agreed judgment or order, an assurance of voluntary | 2507 |
compliance, or any similar instrument, in any civil or | 2508 |
administrative action involving engaging in a pattern of corrupt | 2509 |
practices, fraud, theft, embezzlement, fraudulent conversion, or | 2510 |
misappropriation of property; the use of any untrue, deceptive, or | 2511 |
misleading representation; or the use of any unfair, unlawful, | 2512 |
deceptive, or unconscionable trade act or practice. | 2513 |
(26) An institution defined as a home health agency in | 2514 |
section 3701.881 of the Revised Code, that conducts all telephone | 2515 |
solicitation activities according to sections 310.3, 310.4, and | 2516 |
310.5 of the telemarketing sales rules adopted by the federal | 2517 |
trade commission in 16 C.F.R. part 310, and engages in telephone | 2518 |
solicitation only within the scope of the institution's | 2519 |
certification, accreditation, contract with the department of | 2520 |
aging, or status as a home health agency; and that meets one of | 2521 |
the following requirements: | 2522 |
(a) The institution is certified as a provider of home health | 2523 |
services under Title XVIII of the Social Security Act, 49 Stat. | 2524 |
620, 42 U.S.C. 301, as amended; | 2525 |
(b) The institution is accredited by either the joint | 2526 |
commission on accreditation of health care organizations or the | 2527 |
community health accreditation program; | 2528 |
(c) The institution is providing passport services under the | 2529 |
direction of the Ohio department of aging under section 173.40 of | 2530 |
the Revised Code; | 2531 |
(d) An affiliate of an institution that meets the | 2532 |
requirements of division (B)(26)(a), (b), or (c) of this section | 2533 |
when offering for sale substantially the same goods and services | 2534 |
as those that are offered by the institution that meets the | 2535 |
requirements of division (B)(26)(a), (b), or (c) of this section. | 2536 |
(27) A person licensed to provide a hospice care program by | 2537 |
the department of health pursuant to section 3712.04 of the | 2538 |
Revised Code when conducting telephone solicitations within the | 2539 |
scope of the person's license and according to sections 310.3, | 2540 |
310.4, and 310.5 of the telemarketing sales rules adopted by the | 2541 |
federal trade commission in 16 C.F.R. part 310. | 2542 |
Sec. 4973.17. (A) Upon the application of any bank; savings | 2543 |
and loan association; savings bank; credit union; or association | 2544 |
of banks, savings and loan associations, savings banks, or credit | 2545 |
unions in this state, the secretary of state may appoint and | 2546 |
commission any persons that the bank; savings and loan | 2547 |
association; savings bank; credit union; or association of banks, | 2548 |
savings and loan associations, savings banks, or credit unions | 2549 |
designates, or as many of those persons as the secretary of state | 2550 |
considers proper, to act as police officers for and on the | 2551 |
premises of that bank; savings and loan association; savings bank; | 2552 |
credit union; or association of banks, savings and loan | 2553 |
associations, savings banks, or credit unions; or elsewhere, when | 2554 |
directly in the discharge of their duties. Police officers so | 2555 |
appointed shall be citizens of this state and of good character | 2556 |
2557 | |
duties on or after April 14, 2006, shall | 2558 |
2559 | |
officer training commission described in section 109.71 of the | 2560 |
Revised Code | 2561 |
after starting to perform their duties. | 2562 |
appointed shall hold office for three years, unless, for good | 2563 |
cause shown, their commission is revoked by the secretary of | 2564 |
state, or by the bank; savings and loan association; savings bank; | 2565 |
credit union; or association of banks, savings and loan | 2566 |
associations, savings banks, or credit unions, as provided by law. | 2567 |
(B) Upon the application of a company owning or using a | 2568 |
railroad in this state and subject to section 4973.171 of the | 2569 |
Revised Code, the secretary of state may appoint and commission | 2570 |
any persons that the railroad company designates, or as many of | 2571 |
those persons as the secretary of state considers proper, to act | 2572 |
as police officers for and on the premises of the railroad | 2573 |
company, its affiliates or subsidiaries, or elsewhere, when | 2574 |
directly in the discharge of their duties. Police officers so | 2575 |
appointed, within the time set by the Ohio peace officer training | 2576 |
commission, shall successfully complete a commission approved | 2577 |
training program and be certified by the commission. They shall | 2578 |
hold office for three years, unless, for good cause shown, their | 2579 |
commission is revoked by the secretary of state, or railroad | 2580 |
company, as provided by law. | 2581 |
Any person holding a similar commission in another state may | 2582 |
be commissioned and may hold office in this state without | 2583 |
completing the approved training program required by this division | 2584 |
provided that the person has completed a substantially equivalent | 2585 |
training program in the other state. The Ohio peace officer | 2586 |
training commission shall determine whether a training program in | 2587 |
another state meets the requirements of this division. | 2588 |
(C) Upon the application of any company under contract with | 2589 |
the United States atomic energy commission for the construction or | 2590 |
operation of a plant at a site owned by the commission, the | 2591 |
secretary of state may appoint and commission persons the company | 2592 |
designates, not to exceed one hundred fifty, to act as police | 2593 |
officers for the company at the plant or site owned by the | 2594 |
commission. Police officers so appointed shall be citizens of this | 2595 |
state and of good character. They shall hold office for three | 2596 |
years, unless, for good cause shown, their commission is revoked | 2597 |
by the secretary of state or by the company, as provided by law. | 2598 |
(D)(1) Upon the application of any hospital that is operated | 2599 |
by a public hospital agency or a nonprofit hospital agency and | 2600 |
that employs and maintains its own proprietary police department | 2601 |
or security department and subject to section 4973.171 of the | 2602 |
Revised Code, the secretary of state may appoint and commission | 2603 |
any persons that the hospital designates, or as many of those | 2604 |
persons as the secretary of state considers proper, to act as | 2605 |
police officers for the hospital. No person who is appointed as a | 2606 |
police officer under this division shall engage in any duties or | 2607 |
activities as a police officer for the hospital or any affiliate | 2608 |
or subsidiary of the hospital unless all of the following apply: | 2609 |
(a) The chief of police of the municipal corporation in which | 2610 |
the hospital is located or, if the hospital is located in the | 2611 |
unincorporated area of a county, the sheriff of that county has | 2612 |
granted approval to the hospital to permit persons appointed as | 2613 |
police officers under this division to engage in those duties and | 2614 |
activities. The approval required by this division is general in | 2615 |
nature and is intended to cover in the aggregate all persons | 2616 |
appointed as police officers for the hospital under this division; | 2617 |
a separate approval is not required for each appointee on an | 2618 |
individual basis. | 2619 |
(b) Subsequent to the grant of approval described in division | 2620 |
(D)(1)(a) of this section, the hospital has entered into a written | 2621 |
agreement with the chief of police of the municipal corporation in | 2622 |
which the hospital is located or, if the hospital is located in | 2623 |
the unincorporated area of a county, with the sheriff of that | 2624 |
county, that sets forth the standards and criteria to govern the | 2625 |
interaction and cooperation between persons appointed as police | 2626 |
officers for the hospital under this division and law enforcement | 2627 |
officers serving the agency represented by the chief of police or | 2628 |
sheriff who signed the agreement in areas of their concurrent | 2629 |
jurisdiction. The written agreement shall be signed by the | 2630 |
appointing authority of the hospital and by the chief of police or | 2631 |
sheriff. The standards and criteria may include, but are not | 2632 |
limited to, provisions governing the reporting of offenses | 2633 |
discovered by hospital police officers to the agency represented | 2634 |
by the chief of police or sheriff, provisions governing | 2635 |
investigatory responsibilities relative to offenses committed on | 2636 |
hospital property, and provisions governing the processing and | 2637 |
confinement of persons arrested for offenses committed on hospital | 2638 |
property. The agreement required by this division is intended to | 2639 |
apply in the aggregate to all persons appointed as police officers | 2640 |
for the hospital under this division; a separate agreement is not | 2641 |
required for each appointee on an individual basis. | 2642 |
(c) The person has successfully completed a training program | 2643 |
approved by the Ohio peace officer training commission and has | 2644 |
been certified by the commission. A person appointed as a police | 2645 |
officer under this division may attend a training program approved | 2646 |
by the commission and be certified by the commission regardless of | 2647 |
whether the appropriate chief of police or sheriff has granted the | 2648 |
approval described in division (D)(1)(a) of this section and | 2649 |
regardless of whether the hospital has entered into the written | 2650 |
agreement described in division (D)(1)(b) of this section with the | 2651 |
appropriate chief of police or sheriff. | 2652 |
(2)(a) A person who is appointed as a police officer under | 2653 |
division (D)(1) of this section is entitled, upon the grant of | 2654 |
approval described in division (D)(1)(a) of this section and upon | 2655 |
the person's and the hospital's compliance with the requirements | 2656 |
of divisions (D)(1)(b) and (c) of this section, to act as a police | 2657 |
officer for the hospital on the premises of the hospital and of | 2658 |
its affiliates and subsidiaries that are within the territory of | 2659 |
the municipal corporation served by the chief of police or the | 2660 |
unincorporated area of the county served by the sheriff who signed | 2661 |
the written agreement described in division (D)(1)(b) of this | 2662 |
section, whichever is applicable, and anywhere else within the | 2663 |
territory of that municipal corporation or within the | 2664 |
unincorporated area of that county. The authority to act as a | 2665 |
police officer as described in this division is granted only if | 2666 |
the person, when engaging in that activity, is directly in the | 2667 |
discharge of the person's duties as a police officer for the | 2668 |
hospital. The authority to act as a police officer as described in | 2669 |
this division shall be exercised in accordance with the standards | 2670 |
and criteria set forth in the written agreement described in | 2671 |
division (D)(1)(b) of this section. | 2672 |
(b) Additionally, a person appointed as a police officer | 2673 |
under division (D)(1) of this section is entitled, upon the grant | 2674 |
of approval described in division (D)(1)(a) of this section and | 2675 |
upon the person's and the hospital's compliance with the | 2676 |
requirements of divisions (D)(1)(b) and (c) of this section, to | 2677 |
act as a police officer elsewhere, within the territory of a | 2678 |
municipal corporation or within the unincorporated area of a | 2679 |
county, if the chief of police of that municipal corporation or | 2680 |
the sheriff of that county, respectively, has granted approval for | 2681 |
that activity to the hospital, police department, or security | 2682 |
department served by the person as a police officer and if the | 2683 |
person, when engaging in that activity, is directly in the | 2684 |
discharge of the person's duties as a police officer for the | 2685 |
hospital. The approval described in this division may be general | 2686 |
in nature or may be limited in scope, duration, or applicability, | 2687 |
as determined by the chief of police or sheriff granting the | 2688 |
approval. | 2689 |
(3) Police officers appointed under division (D)(1) of this | 2690 |
section shall hold office for three years, unless, for good cause | 2691 |
shown, their commission is revoked by the secretary of state or by | 2692 |
the hospital, as provided by law. As used in divisions (D)(1) to | 2693 |
(3) of this section, "public hospital agency" and "nonprofit | 2694 |
hospital agency" have the same meanings as in section 140.01 of | 2695 |
the Revised Code. | 2696 |
(E)(1) Upon the application of any owner or operator of an | 2697 |
amusement park that has an average yearly attendance in excess of | 2698 |
six hundred thousand guests and that employs and maintains its own | 2699 |
proprietary police department or security department and subject | 2700 |
to section 4973.171 of the Revised Code, any judge of the | 2701 |
municipal court or county court that has territorial jurisdiction | 2702 |
over the amusement park may appoint and commission any persons | 2703 |
that the owner or operator designates, or as many of those persons | 2704 |
as the judge considers proper, to act as police officers for the | 2705 |
amusement park. If the amusement park is located in more than one | 2706 |
county, any judge of the municipal court or county court of any of | 2707 |
those counties may make the appointments and commissions as | 2708 |
described in this division. No person who is appointed as a police | 2709 |
officer under this division shall engage in any duties or | 2710 |
activities as a police officer for the amusement park or any | 2711 |
affiliate or subsidiary of the owner or operator of the amusement | 2712 |
park unless all of the following apply: | 2713 |
(a) The appropriate chief or chiefs of police of the | 2714 |
political subdivision or subdivisions in which the amusement park | 2715 |
is located as specified in this division have granted approval to | 2716 |
the owner or operator of the amusement park to permit persons | 2717 |
appointed as police officers under this division to engage in | 2718 |
those duties and activities. If the amusement park is located in a | 2719 |
single municipal corporation or a single township, the chief of | 2720 |
police of that municipal corporation or township is the | 2721 |
appropriate chief of police for the grant of approval under this | 2722 |
division. If the amusement park is located in two or more | 2723 |
townships, two or more municipal corporations, or one or more | 2724 |
townships and one or more municipal corporations, the chiefs of | 2725 |
police of all of the affected townships and municipal corporations | 2726 |
are the appropriate chiefs of police for the grant of approval | 2727 |
under this division, and the approval must be jointly granted by | 2728 |
all of those chiefs of police. The approval required by this | 2729 |
division is general in nature and is intended to cover in the | 2730 |
aggregate all persons appointed as police officers for the | 2731 |
amusement park under this division. A separate approval is not | 2732 |
required for each appointee on an individual basis. | 2733 |
(b) Subsequent to the grant of approval described in division | 2734 |
(E)(1)(a) of this section, the owner or operator has entered into | 2735 |
a written agreement with the appropriate chief or chiefs of police | 2736 |
of the political subdivision or subdivisions in which the | 2737 |
amusement park is located as specified in this division and has | 2738 |
provided the sheriff of the county in which the political | 2739 |
subdivision or subdivisions are located with a copy of the | 2740 |
agreement. If the amusement park is located in a single municipal | 2741 |
corporation or a single township, the chief of police of that | 2742 |
municipal corporation or township is the appropriate chief of | 2743 |
police for entering into the written agreement under this | 2744 |
division. If the amusement park is located in two or more | 2745 |
townships, two or more municipal corporations, or one or more | 2746 |
townships and one or more municipal corporations, the chiefs of | 2747 |
police of all of the affected townships and municipal corporations | 2748 |
are the appropriate chiefs of police for entering into the written | 2749 |
agreement under this division, and the written agreement must be | 2750 |
jointly entered into by all of those chiefs of police. The written | 2751 |
agreement between the owner or operator and the chief or chiefs of | 2752 |
police shall address the scope of activities, the duration of the | 2753 |
agreement, and mutual aid arrangements and shall set forth the | 2754 |
standards and criteria to govern the interaction and cooperation | 2755 |
between persons appointed as police officers for the amusement | 2756 |
park under this division and law enforcement officers serving the | 2757 |
agency represented by the chief of police who signed the | 2758 |
agreement. The written agreement shall be signed by the owner or | 2759 |
operator and by the chief or chiefs of police who enter into it. | 2760 |
The standards and criteria may include, but are not limited to, | 2761 |
provisions governing the reporting of offenses discovered by the | 2762 |
amusement park's police officers to the agency represented by the | 2763 |
chief of police of the municipal corporation or township in which | 2764 |
the offense occurred, provisions governing investigatory | 2765 |
responsibilities relative to offenses committed on amusement park | 2766 |
property, and provisions governing the processing and confinement | 2767 |
of persons arrested for offenses committed on amusement park | 2768 |
property. The agreement required by this division is intended to | 2769 |
apply in the aggregate to all persons appointed as police officers | 2770 |
for the amusement park under this division. A separate agreement | 2771 |
is not required for each appointee on an individual basis. | 2772 |
(c) The person has successfully completed a training program | 2773 |
approved by the Ohio peace officer training commission and has | 2774 |
been certified by the commission. A person appointed as a police | 2775 |
officer under this division may attend a training program approved | 2776 |
by the commission and be certified by the commission regardless of | 2777 |
whether the appropriate chief of police has granted the approval | 2778 |
described in division (E)(1)(a) of this section and regardless of | 2779 |
whether the owner or operator of the amusement park has entered | 2780 |
into the written agreement described in division (E)(1)(b) of this | 2781 |
section with the appropriate chief of police. | 2782 |
(2)(a) A person who is appointed as a police officer under | 2783 |
division (E)(1) of this section is entitled, upon the grant of | 2784 |
approval described in section (E)(1)(a) of this section and upon | 2785 |
the person's and the owner or operator's compliance with the | 2786 |
requirements of division (E)(1)(b) and (c) of this section, to act | 2787 |
as a police officer for the amusement park and its affiliates and | 2788 |
subsidiaries that are within the territory of the political | 2789 |
subdivision or subdivisions served by the chief of police, or | 2790 |
respective chiefs of police, who signed the written agreement | 2791 |
described in division (E)(1)(b) of this section, and upon any | 2792 |
contiguous real property of the amusement park that is covered by | 2793 |
the written agreement, whether within or adjacent to the political | 2794 |
subdivision or subdivisions. The authority to act as a police | 2795 |
officer as described in this division is granted only if the | 2796 |
person, when engaging in that activity, is directly in the | 2797 |
discharge of the person's duties as a police officer for the | 2798 |
amusement park. The authority to act as a police officer as | 2799 |
described in this division shall be exercised in accordance with | 2800 |
the standards and criteria set forth in the written agreement | 2801 |
described in division (E)(1)(b) of this section. | 2802 |
(b) In addition to the authority granted under division | 2803 |
(E)(2)(a) of this section, a person appointed as a police officer | 2804 |
under division (E)(1) of this section is entitled, upon the grant | 2805 |
of approval described in division (E)(1)(a) of this section and | 2806 |
upon the person's and the owner or operator's compliance with the | 2807 |
requirements of divisions (E)(1)(b) and (c) of this section, to | 2808 |
act as a police officer elsewhere within the territory of a | 2809 |
municipal corporation or township if the chief of police of that | 2810 |
municipal corporation or township has granted approval for that | 2811 |
activity to the owner or operator served by the person as a police | 2812 |
officer and if the person, when engaging in that activity, is | 2813 |
directly in the discharge of the person's duties as a police | 2814 |
officer for the amusement park. The approval described in this | 2815 |
division may be general in nature or may be limited in scope, | 2816 |
duration, or applicability, as determined by the chief of police | 2817 |
granting the approval. | 2818 |
(3) Police officers appointed under division (E)(1) of this | 2819 |
section shall hold office for five years, unless, for good cause | 2820 |
shown, their commission is revoked by the appointing judge or the | 2821 |
judge's successor or by the owner or operator, as provided by law. | 2822 |
(F) A fee of fifteen dollars for each commission applied for | 2823 |
under this section shall be paid at the time the application is | 2824 |
made, and this amount shall be returned if for any reason a | 2825 |
commission is not issued. | 2826 |
Section 2. That existing sections 121.07, 1101.15, 1109.15, | 2827 |
1109.43, 1111.02, 1111.04, 1111.06, 1111.07, 1111.08, 1121.30, | 2828 |
1151.14, 1151.321, 1161.18, 1161.51, 1181.25, 1315.21, 1315.99, | 2829 |
1733.25, 4719.01, and 4973.17 and sections 1151.348, 1315.01, | 2830 |
1315.02, 1315.03, 1315.04, 1315.05, 1315.06, 1315.07, 1315.08, | 2831 |
1315.09, 1315.10, 1315.11, 1315,16, 1315.17, and 1315.18 of the | 2832 |
Revised Code are hereby repealed. | 2833 |
Section 3. That section 1125.28 of the Revised Code, as it | 2834 |
results from S.B. 293 of the 121st General Assembly, is hereby | 2835 |
repealed. The version of section 1125.28 of the Revised Code, as | 2836 |
it results from H.B. 538 of the 121st General Assembly, is not | 2837 |
affected by this repeal. | 2838 |
Section 4. A license issued under sections 1315.01 to 1315.11 | 2839 |
of the Revised Code that is in effect immediately prior to the | 2840 |
effective date of this act shall remain in force as a license | 2841 |
under sections 1315.01 to 1315.18 of the Revised Code as enacted | 2842 |
by this act until the license's expiration date. Thereafter, the | 2843 |
licensee shall be treated as if it had applied for and had | 2844 |
received a license under sections 1315.01 to 1315.18 of the | 2845 |
Revised Code and shall be required to comply with sections 1315.01 | 2846 |
to 1315.18 of the Revised Code. | 2847 |
Section 5. Section 1315.21 of the Revised Code is presented | 2848 |
in this act as a composite of the section as amended by both Am. | 2849 |
Sub. S.B. 293 and Am. Sub. H.B. 538 of the 121st General Assembly. | 2850 |
Section 1315.99 of the Revised Code is presented in this act as a | 2851 |
composite of the section as amended by both Am. Sub. H.B. 333 and | 2852 |
Am. Sub. H.B. 538 of the 121st General Assembly. The General | 2853 |
Assembly, applying the principle stated in division (B) of section | 2854 |
1.52 of the Revised Code that amendments are to be harmonized if | 2855 |
reasonably capable of simultaneous operation, finds that the | 2856 |
composites are the resulting versions of the sections in effect | 2857 |
prior to the effective date of the sections as presented in this | 2858 |
act. | 2859 |
Section 6. This act is hereby declared to be an emergency | 2860 |
measure necessary for the immediate preservation of the public | 2861 |
peace, health, and safety. The reason for such necessity is that | 2862 |
the certification requirement contained in section 4973.17 of the | 2863 |
Revised Code that is removed by this act is scheduled to take | 2864 |
effect on April 14, 2006, and it is crucial that the removal occur | 2865 |
before that date to avoid the confusion and problems that would | 2866 |
occur if the certification requirement were to be permitted to | 2867 |
take effect and then were to be repealed a short time later. | 2868 |
Therefore, this act shall go into immediate effect. | 2869 |