As Introduced

126th General Assembly Regular Session 2005-2006

H. B. No. 81

Representatives G. Smith, Webster, McGregor, S. Patton, Ujvagi, Perry, Wolpert, Woodard, Peterson, Barrett, Strahorn, Kearns, Taylor, Allen, Law, Reidelbach, D. Stewart, Carano, Flowers 

---

A BILL

To amend sections 119.01, 1733.01, 1733.04, 1733.05,

1

1733.16, 1733.22, 1733.24, 1733.25, 1733.29 to

2

1733.33, 1733.37, 1733.38, 1733.412, 1733.44,

3

2101.161, 2105.31, 2109.13, 2109.372, 2109.41,

4

4705.09, and 4973.17 and to repeal section

5

1733.251 of the Revised Code to make changes in

6

the Credit Union Law relating to fields of

7

membership, expansion of authorities, meetings of

8

directors, compensation of officers, fees and

9

interest chargeable on loans, record keeping,

10

eligible investments, liquidity fund requirements,

11

public records, amendments to articles, and use of

12

name; to authorize accounts to be held by credit

13

unions under laws relating to probate and

14

intestate succession; to authorize a credit union

15

insured by a credit union guaranty corporation to

16

maintain interest-bearing trust accounts on behalf

17

of attorneys; and to authorize credit union

18

designees acting for or on the premises of a

19

credit union to be appointed as police officers.

20

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

Section 1. That sections 119.01, 1733.01, 1733.04, 1733.05,	21
1733.16, 1733.22, 1733.24, 1733.25, 1733.29, 1733.30, 1733.31,	22
1733.32, 1733.33, 1733.37, 1733.38, 1733.412, 1733.44, 2101.161,	23
2105.31, 2109.13, 2109.372, 2109.41, 4705.09, and 4973.17 of the	24
Revised Code be amended to read as follows:	25

Sec. 119.01.  As used in sections 119.01 to 119.13 of the	26
Revised Code:	27

(A)(1) "Agency" means, except as limited by this division,	28
any official, board, or commission having authority to promulgate	29
rules or make adjudications in the civil service commission, the	30
division of liquor control, the department of taxation, the	31
industrial commission, the bureau of workers' compensation, the	32
functions of any administrative or executive officer, department,	33
division, bureau, board, or commission of the government of the	34
state specifically made subject to sections 119.01 to 119.13 of	35
the Revised Code, and the licensing functions of any	36
administrative or executive officer, department, division, bureau,	37
board, or commission of the government of the state having the	38
authority or responsibility of issuing, suspending, revoking, or	39
canceling licenses.	40

Except as otherwise provided in division (I) of this section,	41
sections 119.01 to 119.13 of the Revised Code do not apply to the	42
public utilities commission. Sections 119.01 to 119.13 of the	43
Revised Code do not apply to the utility radiological safety	44
board; to the controlling board; to actions of the superintendent	45
of financial institutions and the superintendent of insurance in	46
the taking possession of, and rehabilitation or liquidation of,	47
the business and property of banks, savings and loan associations,	48
savings banks, credit unions, insurance companies, associations,	49
reciprocal fraternal benefit societies, and bond investment	50
companies; to any action taken by the division of securities under	51
section 1707.201 of the Revised Code; or to any action that may be	52
taken by the superintendent of financial institutions under	53
section 1113.03, 1121.05, 1121.06, 1121.10, 1125.09, 1125.12,	54
1125.18, 1155.18, 1157.01, 1157.02, 1157.10, 1163.22, 1165.01,	55
1165.02, 1165.10, 1349.33, 1733.35, 1733.361, 1733.37, 1733.412,	56
or 1761.03 of the Revised Code.	57

Sections 119.01 to 119.13 of the Revised Code do not apply to	58
actions of the industrial commission or the bureau of workers'	59
compensation under sections 4123.01 to 4123.94 of the Revised Code	60
with respect to all matters of adjudication, and to the actions of	61
the industrial commission and bureau of workers' compensation	62
under division (D) of section 4121.32 and sections 4123.29,	63
4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44, and	64
4123.442, and divisions (B), (C), and (E) of section 4131.14 of	65
the Revised Code.	66

(2) "Agency" also means any official or work unit having	67
authority to promulgate rules or make adjudications in the	68
department of job and family services, but only with respect to	69
both of the following:	70

(a) The adoption, amendment, or rescission of rules that	71
section 5101.09 of the Revised Code requires be adopted in	72
accordance with this chapter;	73

(b) The issuance, suspension, revocation, or cancellation of	74
licenses.	75

(B) "License" means any license, permit, certificate,	76
commission, or charter issued by any agency. "License" does not	77
include any arrangement whereby a person, institution, or entity	78
furnishes medicaid services under a provider agreement with the	79
department of job and family services pursuant to Title XIX of the	80
"Social Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as	81
amended.	82

(C) "Rule" means any rule, regulation, or standard, having a	83
general and uniform operation, adopted, promulgated, and enforced	84
by any agency under the authority of the laws governing such	85
agency, and includes any appendix to a rule. "Rule" does not	86
include any internal management rule of an agency unless the	87
internal management rule affects private rights and does not	88
include any guideline adopted pursuant to section 3301.0714 of the	89
Revised Code.	90

(D) "Adjudication" means the determination by the highest or	91
ultimate authority of an agency of the rights, duties, privileges,	92
benefits, or legal relationships of a specified person, but does	93
not include the issuance of a license in response to an	94
application with respect to which no question is raised, nor other	95
acts of a ministerial nature.	96

(E) "Hearing" means a public hearing by any agency in	97
compliance with procedural safeguards afforded by sections 119.01	98
to 119.13 of the Revised Code.	99

(F) "Person" means a person, firm, corporation, association,	100
or partnership.	101

(G) "Party" means the person whose interests are the subject	102
of an adjudication by an agency.	103

(H) "Appeal" means the procedure by which a person, aggrieved	104
by a finding, decision, order, or adjudication of any agency,	105
invokes the jurisdiction of a court.	106

(I) "Rule-making agency" means any board, commission,	107
department, division, or bureau of the government of the state	108
that is required to file proposed rules, amendments, or	109
rescissions under division (D) of section 111.15 of the Revised	110
Code and any agency that is required to file proposed rules,	111
amendments, or rescissions under divisions (B) and (H) of section	112
119.03 of the Revised Code. "Rule-making agency" includes the	113
public utilities commission. "Rule-making agency" does not include	114
any state-supported college or university.	115

(J) "Substantive revision" means any addition to, elimination	116
from, or other change in a rule, an amendment of a rule, or a	117
rescission of a rule, whether of a substantive or procedural	118
nature, that changes any of the following:	119

(1) That which the rule, amendment, or rescission permits,	120
authorizes, regulates, requires, prohibits, penalizes, rewards, or	121
otherwise affects;	122

(2) The scope or application of the rule, amendment, or	123
rescission.	124

(K) "Internal management rule" means any rule, regulation, or	125
standard governing the day-to-day staff procedures and operations	126
within an agency.	127

Sec. 1733.01.  As used in this chapter, unless the context	128
otherwise requires:	129

(A) "Credit union" means a corporation organized and	130
qualified as such under this chapter. In addition to the powers	131
enumerated in this chapter and unless restricted in this chapter,	132
every credit union has the general powers conferred upon	133
corporations by Chapter 1701. of the Revised Code. A credit union	134
is a nonprofit cooperative financial institution and as such is	135
organized and operates for the mutual benefit and general welfare	136
of its members with the earnings, savings, benefits, or services	137
of the credit union being distributed to its members as patron	138
savers and borrowers and not to its members as individuals. A	139
credit union may be designated as a low-income credit union if it	140
serves predominantly low-income members.	141

(B) "Corporate credit union" means a credit union,	142
eligibility for membership in which is being a credit union	143
qualified to do business in this state. Such credit union shall	144
use the term "corporate" in its official name.	145

(C) "Foreign credit union" means a credit union formed under	146
the laws of another state which are substantially similar to this	147
chapter.	148

(D) "Member" means a person who is a member of a credit	149
union.	150

(E) "Association member" means any member of a credit union	151
other than a credit union or an individual member.	152

(F) "Voting member" means an association member or an	153
individual member who is qualified to vote as provided by law or	154
rule, the articles, or the regulations. Ownership of a deposit	155
account does not confer membership or voting rights and does not	156
represent an interest in the capital of the credit union upon	157
dissolution or conversion to another type of institution.	158

(G) "Person" includes, without limitation, an individual, a	159
corporation, an unincorporated society or association, or any	160
other organization of individuals.	161

(H) "Articles" includes original articles of incorporation,	162
agreements of merger, amended articles, and amendments to any of	163
these.	164

(I) "Regulations" includes the code of regulations of a	165
credit union and any amendments thereto or an amended code of	166
regulations and any amendments thereto.	167

(J) Persons having a "common bond of association" include	168
those persons and their families.	169

(K) "Membership share" means a share of the credit union, the	170
subscription to which shall be a prerequisite for membership in	171
the credit union.	172

(L) "Share account" means an account established for a member	173
for which no share certificates are issued but which are included	174
in the registry of shares, which includes all transactions of the	175
credit union pertaining to such shares.	176

(M) "Undivided earnings" consist of all accumulated net	177
earnings and reserves required under division (B) of section	178
1733.31 of the Revised Code.	179

(N) "State" means the United States, any state, territory,	180
insular possession, or other political subdivision of the United	181
States, including the District of Columbia.	182

(O) An "emergency" exists when an emergency exists for other	183
corporations as the same is defined and described in section	184
1701.01 of the Revised Code.	185

(P) "Superintendent of credit unions" means the "division of	186
financial institutions" or the "superintendent of the division of	187
financial institutions of this state"; and whenever the context	188
requires it, may be read as "director of commerce" or as "chief of	189
the division of financial institutions." Whenever the division or	190
superintendent of credit unions is referred to or designated in	191
any statute, rule, contract, or other document, the reference or	192
designation shall be deemed to refer to the division or	193
superintendent of financial institutions, as the case may be.	194

(Q) "Outside auditor" means an accountant who is licensed to	195
practice as a certified public accountant or public accountant by	196
this state, and who is retained by a credit union to audit its	197
accounts, but who is not otherwise employed by the credit union.	198

(R) "Regulated individual" means a director, committee	199
member, officer, or employee of a credit union.	200

(S) "Financial institution regulatory authority" includes a	201
regulator of business activity in which a credit union is engaged,	202
or has applied to engage in, to the extent that the regulator has	203
jurisdiction over a credit union engaged in that business	204
activity. A credit union is engaged in a business activity, and a	205
regulator of that business activity has jurisdiction over the	206
credit union, whether the credit union conducts the activity	207
directly or a subsidiary or affiliate of the credit union conducts	208
the activity.	209

(T) "Net worth" means the retained earnings, as defined under	210
generally accepted accounting principles.	211

(U) "Deposits" means a balance held by a credit union and	212
established by a credit union member, a nonmember, another credit	213
union, or a governmental unit in accordance with standards	214
specified by the credit union, including balances designated as	215
deposits, deposit certificates, checking accounts, or accounts by	216
other names. A deposit account is a debt owed by the credit union	217
to the account holder.	218

(V) "Membership agreement" means an agreement between the	219
credit union and the credit union member that includes the	220
policies the credit union member agrees to follow to maintain	221
membership.	222

(W) "Shares" means a balance held by a credit union and	223
established in accordance with standards specified by the credit	224
union including, but not limited to shares, share accounts, share	225
certificates, custodial accounts, probate accounts, guardianship	226
accounts, individual retirement accounts, trust accounts, money	227
market accounts, share checking accounts, business share accounts,	228
or other such accounts. "Shares" does not include membership	229
shares.	230

Sec. 1733.04.  (A) In addition to the authority conferred by	231
section 1701.13 of the Revised Code, but subject to any	232
limitations contained in sections 1733.01 to 1733.45 of the	233
Revised Code, and its articles and regulations, a credit union may	234
do any of the following:	235

(1) Make loans as provided in section 1733.25 of the Revised	236
Code;	237

(2) Invest its money as provided in section 1733.30 of the	238
Revised Code;	239

(3) If authorized by the code of regulations, rebate to the	240
borrowing members a portion of the member's interest paid to the	241
credit union;	242

(4) If authorized by the regulations, charge aan annual	243
membership fee or entrance fee not to exceed one dollar per	244
member;	245

(5) Purchase group savings life insurance and group credit	246
life insurance;	247

(6) Make reasonable contributions to any nonprofit civic,	248
charitable, or service organizations;	249

(7) Engage in activities and programs as requested by any	250
governmental unit;	251

(8) Receive savings from nonmembers in the form of shares or	252
deposits in the case of credit unions serving predominantly	253
low-income members. For purposes of division (A)(8) of this	254
section, "low-income members" means those members whose annual	255
income falls at or below the lowest level standard of living	256
classification as established by the bureau of labor and	257
statistics and updated by the employment and training	258
administration of the United States department of labor, and	259
"predominantly" means a simple majority;	260

(9) Provide trustee or custodial services as authorized under	261
any written trust instrument or custodial agreement created or	262
organized in the United States and forming part of a	263
tax-advantaged savings plan as authorized under the Internal	264
Revenue Code. These services include, but are not limited to,	265
acting as a trustee or custodian for member retirement, education,	266
or health savings accounts;	267

(10) Exercise other powers in accordance with rules adopted	268
by the superintendent of credit unions.	269

(B) The authority of a credit union shall be subject to the	270
following restrictions:	271

(1) A credit union may not borrow money in excess of	272
twenty-five per cent of its shares and undivided earnings, without	273
prior specific authorization by the superintendent of credit	274
unions.	275

(2) A credit union may not pay a commission or other	276
compensation to any person for securing members or for the sale of	277
its shares, except that reasonable incentives may be made	278
available directly to members or potential members to promote	279
thrift.	280

(3) A credit union, subject to the approval of the	281
superintendent, may have service facilities other than its home	282
office.	283

(4) No realReal estate shallmay be acquired by lease,	284
purchase, or otherwise excepting as necessary and to the extent	285
required for use of the credit union presently and in the future	286
operation of its office or headquarters, and in case of a purchase	287
of real estate, written approval of the superintendent must first	288
be obtainednotified not less than thirty days prior to the	289
purchase. Nothing herein contained shall be deemed to prohibit a	290
credit union from taking title to real estate in connection with a	291
default in the payment of a loan, provided that title to such real	292
estate shall not be held by the credit union for more than two	293
years without the prior written approval of the superintendent. A	294
credit union also may lease space in any real estate it acquires	295
in accordance with rules adopted by the superintendent.	296

(C)(1) As used in division (C) of this section:

297

(a) "School" means an elementary or secondary school.

298

(b) "Student" means a child enrolled in a school.

299

(c) "Student branch" means the designation provided to the	300
credit union for the in-school services and financial education	301
offered to students.	302

(2) A credit union, upon agreement with a school and with the	303
permission of the superintendent, may open and maintain a student	304
branch.	305

(3) Notwithstanding any other provision of this section, any	306
student enrolled in the school maintaining a student branch who is	307
not otherwise qualified for membership in the credit union	308
maintaining the student branch is qualified to be a member of that	309
student branch.	310

(4) The student's membership in the student branch expires	311
upon the student's graduation from secondary school.	312

(5) The student branch is for the express use of students and	313
may not be used by faculty, staff, or lineal ancestors or	314
descendents of students.	315

(6) Faculty, staff, or lineal ancestors or descendents of	316
students are not eligible for membership in the credit union	317
maintaining the student branch unless otherwise qualified by this	318
section to be members.	319

(7) The superintendent may adopt rules appropriate to the	320
formation and operation of student branches.	321

(D) A credit union may guarantee the signature of a member in	322
connection with a transaction involving tangible or intangible	323
property in which a member has or seeks to acquire an interest.	324

(E) A credit union may perform any of the following services	325
for a person that is not a member of the credit union if the	326
service is performed under a contractual arrangement in which	327
another financial organization performs the same service for the	328
credit union's members:	329

(1) Cash advances;

330

(2) Funds transfers;

331

(3) Cashing travelers checks;

332

(4) Any other service specified by the superintendent by rule	333
or order.	334

(F) A credit union may perform any of the following services	335
for any person in an underserved area or that does not have an	336
established relationship with a financial institution:	337

(1) Cashing and selling checks, drafts, or money orders;

338

(2) Purchasing and selling foreign currencies in exchange for	339
United States currency;	340

(3) Wire transfers.

341

Sec. 1733.05.  (A) Persons otherwise qualifying for	342
membership in a credit union under this section, the articles, and	343
the regulations, and who are elected to membership by the board of	344
directors, shall become members of a credit union, provided that	345
in lieu of electing persons to membership, the board of directors	346
may elect or appoint one or more membership officers and delegate	347
authority to any such membership officer to accept persons into	348
membership.	349

(B) No person shall become a member of a credit union who has	350
not subscribed to or purchased at least one membership share of	351
such credit union and complies with any requirements adopted by	352
the board of directors of the credit union, or meets other	353
criteria set forth in rules adopted by the superintendent of	354
credit unions. Each member is responsible for maintaining a	355
current address with the credit union.	356

(C) The membership of a credit union shall be limited to	357
include groups having a common bond of occupation or association	358
or; groups within a well-defined neighborhood, community, or rural	359
district; and groups or persons meeting other criteria set forth	360
in rules adopted by the superintendent; however, except as	361
otherwise provided in the articles or regulations, a group or	362
person shall be deemed to retain affiliation with the credit union	363
so long as hethe group or person remains a member of the credit	364
union even though no longer within the field of membership.	365

(D) Unless otherwise provided in the articles of	366
incorporation or the code of regulations, and subject to such	367
conditions as the superintendent of credit unions may establish,	368
groups composed of persons within the field of membership of a	369
credit union may become members of such credit union.	370

(1) Any credit union may, with the approval of the	371
superintendent, pursuant to section 1733.33 of the Revised Code,	372
amend its articles of incorporation and, if appropriate, its code	373
of regulations, to permit select groups having a common bond of	374
occupation or association or select groups within a well-defined	375
neighborhood, community, or rural district, to become members of	376
such credit union in accordance with rules adopted by the	377
superintendent.	378

(2) Before the select group is permitted membership in a	379
credit union, the superintendent must approve, in writing, both	380
the select group and the credit unionThe superintendent, by rules	381
adopted in accordance with Chapter 119. of the Revised Code, shall	382
provide the manner in which a person, group, or groups are	383
permitted membership in a credit union. The superintendent only	384
shall disapprove membership of a group or otherwise into the	385
credit union based on safety and soundness of the credit union.	386

(E) With the approval of the superintendent, any select	387
group, within a field of membership and described in division	388
(D)(1) of this section, may disaffiliate from the credit union	389
with which it is associated if a majority of the persons within	390
the select group vote for disaffiliation. Any such proposed	391
disaffiliation must be pursuant to a written plan approved by the	392
superintendent. This plan shall be distributed to such persons in	393
advance of the vote on the proposed disaffiliation, which plan	394
must have due regard for the equitable division of assets and	395
liabilities, including share accounts and loans of the select	396
group seeking to disaffiliate, and any other consideration	397
required by the superintendent.	398

(F) Credit unions qualified to do business in this state have	399
a common bond of association for the purpose of forming and	400
operating a corporate credit union.	401

(G) No interstate charter amendment, conversion, merger, or	402
other expansion of a credit union field of membership shall be	403
authorized without the approval of allthe respective state	404
supervisory authorities affected, whether state or federal,and	405
shall be in accordance with rules adopted by the superintendent	406
in. In terms of administrative control and authority, the location	407
of the surviving credit union in the case of a merger, or the home	408
office in the case of an expansion, is controlling.	409

Sec. 1733.16.  Unless otherwise provided in the articles,	410
regulations, or bylaws, and subject to the exceptions applicable	411
during an emergency, as that term is defined in section 1733.01 of	412
the Revised Code:	413

(A) Meetings of the directors may be called by the chairman	414
of the boardchairperson, thevice-chairperson, president, or any	415
vice-president,of the board or any two directors.	416

(B) Meetings of the directors may be held within or without	417
the state. Unless the articles or regulations prohibit	418
participation by directors at a meeting by means of communication	419
equipment, meetings of the directors may be held through any	420
communication equipment if all the persons participating can hear	421
each other, and participation in the meeting pursuant to this	422
division constitutes presence at the meeting.	423

(C) Notice of the time and place, if any, and time of each	424
meeting of the directors shall be given to each director at the	425
time and in the mannereither by personal delivery or by mail,	426
telegram, cablegram, overnight delivery service, or any other	427
means of communication authorized by the director at least two	428
days before the meeting, unless otherwise specified in the	429
regulations or bylaws. The notice described in this division need	430
not specify the purpose of the meeting.	431

(D) Notice of adjournment of a meeting need not be given, if	432
the time and place to which it is adjourned are fixed and	433
announced at the meeting.	434

Sec. 1733.22. No(A) Unless otherwise provided in rules	435
adopted by the superintendent of credit unions, no officer,	436
director, or employee of any credit union shall receive any	437
commission, salary, or other emolument for services arising out of	438
histhe officer's, director's, or employee's association with the	439
credit union except per diem, wages, or salary which hethe	440
officer, director, or employee receives, subject to rules adopted	441
under section 1733.411 of the Revised Code, as compensation for	442
his services to the credit union.	443

(B) No director or member of any committee shall receive any	444
compensation for his services as such, but, unless otherwise	445
provided indetermined or authorized by rule of the superintendent	446
and by the articles or regulations, shall be. A director or	447
committee member is entitled, subject to rules adopted under	448
section 1733.411 of the Revised Code and when so authorized by the	449
board of directors, to reimbursement for histhe director's or	450
member's expenses incurred in connection with the business of the	451
credit union.	452

Sec. 1733.24.  (A) A credit union is authorized to receive	453
funds for deposit in share accounts, share draft accounts, and	454
share certificates from its members, from other credit unions, and	455
from an officer, employee, or agent of the federal, state, or	456
local governments, or political subdivisions of the state, in	457
accordance with such terms, rates, and conditions as may be	458
established by its board of directors.	459

(B) The shares and share accounts of the credit union may be	460
of one or more classes, as designated by the board of directors,	461
subject to approval of the superintendent of credit unions based	462
on rules that shall assure equitable distribution of dividends	463
among classes, considering costs and advantages of each class to	464
the members of the credit union, including without limitation	465
special services rendered, length of ownership, minimum	466
investment, conditions of repurchase, and other appropriate	467
standards or combinations thereof. In the event the articles of	468
incorporation of the credit union indicate the authorized number	469
of shares to be unlimited, the designation of classification of	470
shares and share acountsaccounts of the credit union may be	471
effected by the board of directors, subject to the approval of the	472
superintendent, and does not require amendment of the articles of	473
incorporation. All shares of the credit union shall have a par	474
value per share as set by the board of directors. Redemptions and	475
liquidating dividends shall be prorated to each member on the	476
basis of the price paid the credit union for such share,	477
irrespective of the class of such shares.	478

(C)(1) Each credit union shall have one clsssclass of shares	479
designated as "membership share." The membership shares, or if a	480
credit union has but one class of shares, then all of the shares	481
of the credit union, shall have a par value as set by the board of	482
directors.	483

(2) Two or more persons that are eligible for membership that	484
have jointly subscribed for one or more shares under a joint	485
account each may be admitted to membership.	486

(D) A credit union need not issue certificates for any or all	487
of its classes of shares but irrespective of whether certificates	488
are issued, a registry of shares must be kept, including all of	489
the transactions of saidthe credit union pertaining to such	490
shares.	491

(E) A credit union is authorized to maintain share draft	492
accounts in accordance with rules prescribed by the	493
superintendent. The credit union may pay dividends on share draft	494
accounts, may pay dividends at different rates on different types	495
of share draft accounts, and may permit the owners of such share	496
draft accounts to make withdrawals by negotiable or transferable	497
instruments or other orders for the purpose of making transfers to	498
third parties.	499

(F) Unless otherwise provided by written agreement of the	500
parties, the rights, responsibilities, and liabilities attaching	501
to a share draft withdrawn from, transferred to, or otherwise	502
handled by a credit union are defined in and governed by Chapters	503
1303. and 1304. of the Revised Code, as if the credit union were a	504
bank.	505

(G) Unless otherwise provided in the articles or regulations,	506
a member may designate any person or persons to own or hold	507
shares, or share accounts with himthe member in joint tenancy	508
with right of survivorship and not as tenants in common.	509

(H) Shares or share accounts may be issued in the name of a	510
custodian under the Ohio transfers to minors act or, by a member	511
in trust for a beneficiary, by a fiduciary or custodian in trust	512
for a member beneficiary, or by a fiduciary or custodian in trust	513
upon the death of a member. Redemption of such shares or payment	514
of such share accounts to sucha member shall, to the extent of	515
suchthe payment, dischargedischarges the liability of the credit	516
union to the member and the beneficiary;, and the credit union	517
shall be under no obligation to see to the application of suchthe	518
payment. Unless prior to the death of sucha member, he shall have	519
the member has notified the credit union in writing in a form	520
approved by the credit union of a different beneficiary to receive	521
the proceeds of such shares or share accounts, then suchthe	522
proceeds shall be paid to the beneficiary or to histhe	523
beneficiary's parent or legal representative. Any payment made	524
pursuant to written instructions of the member or pursuant to the	525
provisions herein contained shall be a valid and sufficient	526
release and discharge of the credit union in connection with any	527
such share or share accounts.	528

(I)(1) Except as otherwise provided in the articles or	529
regulations, and subject to the provisions thereof, a minor may	530
purchase shares or share accounts, and except for qualification as	531
a voting member, the credit union may deal with such minor with	532
respect to shares or share accounts owned by himthe minor as if	533
hethe minor were of legal age.	534

(2) If shares are issued in the name of a minor, redemption	535
of any part or all of the shares or withdrawal of funds by payment	536
to the minor of the shares or funds and any declared dividends or	537
interest releases the credit union from all obligation to the	538
minor as to the shares reduced or funds withdrawn.	539

(3) If shares are issued in the name of a minor, the minor	540
shall be assumed to have reached the age of majority and have	541
contractual capacity.	542

(J) The regulations may require advance written notice of a	543
member's intention to withdraw histhe member's shares. Such	544
advance notice shall not exceed sixty days.	545

(K) A credit union may accept nonmember deposits in	546
accordance with rules adopted by the superintendent.	547

Sec. 1733.25.  (A) A credit union may make loans or other	548
extensions of credit to members for provident and productive	549
purposes as authorized by law, including rules adopted by the	550
superintendent of credit unions; the articles,; and the	551
regulations,; and subject to policies adopted by the credit	552
committee and approved by the board of directors.	553

(B) Upon the approval of the board of directors, a credit	554
union may make loans or other extensions of credit to other credit	555
unions, provided that loans or other extensions of credit made to	556
other credit unions need not have the approval of the board of	557
directors on a per case basis. The total of all such loans or	558
extensions of credit, including the aggregate of all money paid	559
into any trust established by one or more credit unions for the	560
purpose of making loans or other extensions of credit to other	561
credit unions, shall not exceed twenty-five per cent of the shares	562
and undivided earnings of the lending credit union, except that	563
this percentage limitation does not apply to corporate credit	564
unions.	565

(C) The interest on any loan made by a credit union shall not	566
exceed one and one-half per cent per month on unpaid balances.	567
Such interest may accrue and be chargeable upon a monthly basis,	568
and may be computed upon the unpaid balance of the loan as of the	569
end of the previous calendar month.	570

Such interest(1) A credit union may contract for and receive	571
interest at any rate or rates agreed upon or consented to by the	572
parties to the loan or extension of credit contract, but not	573
exceeding an annual percentage rate of twenty-five per cent.	574

(2) The computation of the loan or extension of credit	575
balance on which interest is assessed and the method of	576
compounding interest on the balance shall be as agreed upon by the	577
credit union and the member.	578

(3) Interest described in division (C) of this section may be	579
accrued and charged by any technique approvedas may be determined	580
by the superintendent of credit unions so long as the effective	581
interest rate on any loan does not exceed the amount permitted to	582
be charged by the computation authorized in this division.	583

(D) A credit union may accept security in such form and under	584
such rules as shall be set forth in the articles, the regulations,	585
or established by the credit committee and approved by the board	586
of directors.	587

(E) The total loans to association members shall not exceed	588
ten per cent of the shares and undivided earnings or the total	589
value of shares pledged by association members as security for	590
loans, whichever is greater(1) The credit union shall have a lien	591
on the membership share, shares, deposits, and accumulated	592
dividends and interest of a member in an individual, joint, trust,	593
or payable on death account for any obligation owed to the credit	594
union by that member or for any loan co-signed or guaranteed by	595
the member or account holder; provided, however, that a credit	596
union shall not have a lien upon the funds in an individual	597
retirement account or an account established pursuant to the	598
Internal Revenue Code of the United States.	599

(2) A credit union may refuse to allow withdrawals from any	600
share or deposit account by a member while the member has any	601
outstanding obligation to the credit union.	602

(F) In addition to any other loan authorized by law, a credit	603
union may enter into a loan agreement with a member in accordance	604
with all of the following:	605

(1) The loan is for any amount up to one thousand dollars.

606

(2) The term of the loan is thirty days or less.

607

(3) The credit union may charge a fee in addition to any	608
interest authorized by law in connection with the loan, which fee	609
is not to be included in the computation of interest for any	610
provision of the Revised Code, including division (C) of this	611
section, that prescribes, regulates, or limits interest charged,	612
collected, or received in connection with a transaction.	613

(4) The total interest, fees, and other costs of the loan	614
does not exceed ten per cent of the principal amount.	615

(5) A member shall not have more than one loan under division	616
(F) of this section outstanding with the credit union.	617

(6) The loan is not being made to a member for purposes of	618
retiring an existing loan between the credit union and that	619
member, which existing loan was made pursuant to division (F) of	620
this section.	621

Sec. 1733.29.  (A) A credit union shall keep a permanent	622
record including:	623

(1) The original articles and regulations and amendments	624
thereto and any amended articles or regulations and amendments	625
thereto, all bearing the approval of the superintendent of credit	626
unions, and the articles shall bear the certification of the	627
secretary of state;	628

(2) The minutes of the incorporators, members, and board of	629
directors.	630

(B) A credit union shall keep for a period of not less than	631
six years the minutes of all committees of the board.	632

(C) A credit union shall keep and maintain such financial	633
records as the superintendent shall stipulate in rules issued by	634
himthe superintendent, which shall also include the minimum	635
length of time such records must be retained.	636

(D) A credit union shall maintain an alphabetical listing or	637
classified listing of the addresses of members of the credit	638
union.	639

(E) A credit union shall keep suchany other records of its	640
business and transactions and maintain the authorized processes	641
for recording or storing documents or instruments, as may be	642
required by rules promulgated by the superintendent.	643

(F) A credit union may keep documents in electronic form if,	644
in the regular course of business, a credit union possesses,	645
records, or generates any document, representation, image,	646
reproduction, or combination thereof, of any agreement,	647
transaction, act, occurrence, or event, then the recording,	648
comprising, or reproduction shall have the same force and effect	649
as one comprised, recorded, or created on paper or other tangible	650
form by writing, typing, printing, or similar means.	651

(G)(1) A credit union may make use of electronic signatures	652
in any communication, acknowledgment, agreement, or contract	653
between a credit union and its member or any other person, in	654
which a signature is required or used.	655

(2)(a) Any party to the communications, acknowledgment,	656
agreement, or contract may affix a signature by use of a digital	657
signature.	658

(b) The digital signature, when lawfully used by the person	659
whose signature it purports to be, shall have the same force and	660
effect as the use of a manual signature if it is unique to the	661
person using it, is capable of verification, is under the sole	662
control of the person using it, and is linked to data in such a	663
manner that if the data are changed, the digital signature is	664
invalidated.	665

(c) Nothing in this section requires any credit union to use	666
or permit the use of a digital signature.	667

(d) As used in division (G)(2) of this section, "digital	668
signature" means an encrypted electronic identifier, created by	669
computer, intended by the party using it to have the same force	670
and effect as the use of a manual signature.	671

(H) Recordings, copies, photographic images, or stored	672
representations of original documents, papers, or other	673
instruments or records made in accordance with this section, or	674
reproductions of original documents, papers, or other instruments	675
or records produced from recordings, copies, photographic images,	676
or stored representations made in accordance with this section,	677
when properly identified by the officer by whom or under whose	678
supervision they were made or who has custody of them, have the	679
same effect at law as the original records or records made by any	680
other legally authorized means. They may be offered in the same	681
manner and shall be received in evidence in any court where the	682
original records, or records made by other legally authorized	683
means, could have been introduced and received. Certified or	684
authenticated duplicates of recordings, copies, photographic	685
images, or stored representations of original documents, papers,	686
or other instruments or records made in accordance with this	687
section, or of reproductions of original documents, papers, or	688
other instruments or records produced from recordings, copies,	689
photographic images, or stored representations made in accordance	690
with this section, shall be admitted in evidence in the same	691
manner as the original documents, papers, or other instruments or	692
records.	693

Sec. 1733.30.  (A) A credit union may make any investment of	694
any funds not required for the purpose of loans, in state or	695
national banks;or state or federally chartered savings and loan	696
associations or, savings banks, or credit unions, doing business	697
in this state; in accounts, deposits, or shares of federally	698
insured savings and loan associations or savings banks or insured	699
credit unions, doing business outside this state; in deposits or	700
accounts of federally insured banks, trust companies, and mutual	701
savings banks or insured credit unions, doing business outside	702
this state; in the shares of a corporate credit union subject to	703
the regulations of that corporate credit union; in credit union	704
service corporations; or in United States government securities or	705
municipal bonds issued by municipalities of this state; and, with	706
the approval of the superintendent of credit unions, in securities	707
other than those specified in this division. All investments under	708
this division shall be made in United States dollars.	709

(B) In accordance with rules adopted by, and subject to the	710
approval of, the superintendent, notes or loans made by or to	711
individual members of a credit union may be purchased by another	712
credit union at such prices as may be agreed upon between the	713
credit unions.	714

(C) A credit union may purchase all or a part of the assets	715
of another credit union or sell all or part of its assets to	716
another credit union.	717

(D) A corporate credit union may make investments provided	718
the investments are in accordance with rules adopted by the	719
superintendent, are consistent with the safety and soundness of	720
the credit union, and are made with due regard to the investment	721
requirements established by the applicable insurer recognized	722
under section 1733.041 of the Revised Code.	723

(E) A credit union may make other investments provided the	724
investments are in accordance with rules adopted by the	725
superintendent.	726

Sec. 1733.31.  For purposes of this section, "gross income"	727
means all income, before expenses, earned on risk assets. "Risk	728
assets" shall be defined by rule adopted by the superintendent of	729
credit unions.	730

Each credit union shall establish and maintain reserves as	731
required by Chapter 1733. of the Revised Code, or by rules adopted	732
by the superintendent, including the following:	733

(A) Valuation allowances for delinquent loans, investments,	734
other risk assets, and contingencies, which shall be established	735
and maintained pursuant to rules adopted adopted by the	736
superintendent.	737

(B) A regular reserve as follows:

738

(1) A credit union in operation for more than four years and	739
having assets of five hundred thousand dollars or more shall	740
reserve ten per cent of its gross income until its regular reserve	741
equals four per cent of its total risk assets. Once the credit	742
union has regular reserves equal to four per cent of its total	743
risk assets, it shall reserve five per cent of its gross income	744
until its regular reserve equals six per cent of its total risk	745
assets.	746

(2) A credit union in operation for less than four years or	747
having assets of less than five hundred thousand dollars shall	748
reserve ten per cent of its gross income until its regular reserve	749
equals seven and one-half per cent of its total risk assets. Once	750
the credit union has regular reserves equal to seven and one-half	751
per cent of its total risk assets, it shall reserve five per cent	752
of its gross income until its regular reserve equals ten per cent	753
of its total risk assets.	754

(3) The provision for loan losses, or other such provisions	755
related to the valuation allowances described in division (A) of	756
this section, recorded on the credit union's statement of income	757
for the year shall be deducted from the appropriate regular	758
reserve calculated under division (B)(1) or (2) of this section.	759

(4) Once the credit union has closed out its net income or	760
loss to undivided earnings, it may allocate any extraordinary loss	761
for the year, as defined by AICPA APB Opinion No. 30 or by rules	762
as promulgated by the superintendent, to the regular reserve.	763

(5) If the regular reserve account becomes less than the	764
percentage required by division (B)(1) or (2) of this section,	765
then the schedule of allocation shall apply until the required	766
percentages are achieved.	767

(6) The superintendent may decrease the reserve requirements	768
under division (B)(1) or (2) of this section when, in histhe	769
superintendent's opinion, a decrease is necessary or desirable and	770
is consistent with the purposes of this section.	771

(7) Nothing herein shall prevent the superintendent from	772
requiring a particular credit union or all credit unions to	773
establish a regular reserve in excess of the percentages required	774
by division (B)(1) or (2) of this section if, in the opinion of	775
the superintendent, economic conditions or other appropriate	776
circumstances so warrant.	777

(C) Each credit union shall maintain a liquidity fund equal	778
to five per cent of its shares. The assets included in the	779
liquidity fund shall be defined by rule adopted by the	780
superintendent. Nothing herein shall prevent the superintendent	781
from requiring a particular credit union or all credit unions to	782
establish a liquidity fund in excess of five per cent of total	783
shares, if, in the opinion of the superintendent, economic	784
conditions or other appropriate circumstances so warrantThe	785
superintendent by rule may require a credit union to establish a	786
liquidity fund.	787

(D)(1) Reserves for corporate credit unions shall be	788
established by the superintendent with due regard for the	789
reserving requirements for corporate credit unions set by the	790
applicable insurer recognized under section 1733.041 of the	791
Revised Code. Specific reserving requirements shall be established	792
by rule of the superintendent, but shall substantially parallel	793
the reserving formula set by the applicable insurer recognized	794
under section 1733.041 of the Revised Code.	795

(2) Nothing in division (D)(1) of this section shall prevent	796
the superintendent from requiring a particular corporate credit	797
union or all corporate credit unions to establish a regular	798
reserve in excess of those reserves established pursuant to	799
division (D)(1) of this section if, in the opinion of the	800
superintendent, economic conditions or other appropriate	801
circumstances so warrant.	802

Sec. 1733.32.  (A)(1) The superintendent of financial	803
institutions shall see that the laws relating to credit unions are	804
executed and enforced.	805

(2) The deputy superintendent for credit unions shall be the	806
principal supervisor of credit unions. In that position, the	807
deputy superintendent for credit unions shall, notwithstanding	808
division (A)(3) of this section, be responsible for conducting	809
examinations and preparing examination reports under that	810
division. In addition, the deputy superintendent for credit unions	811
shall, notwithstanding sections 1733.191, 1733.41, 1733.411, and	812
1733.412 of the Revised Code, have the authority to adopt rules in	813
accordance with those sections, and, notwithstanding section	814
1733.05 of the Revised Code, shall have the authority to approve	815
issues and matters pertaining to fields of membership. In	816
performing or exercising any of the examination, rule-making, or	817
other regulatory functions, powers, or duties vested by division	818
(A)(2) of this section in the deputy superintendent for credit	819
unions, the deputy superintendent for credit unions shall be	820
subject to the control of the superintendent of financial	821
institutions.	822

(3) The superintendent of financial institutions shall	823
develop and implement a system for evaluating the safety and	824
soundness of credit unions and for determining when examinations	825
and supervisory actions are necessary. Credit unions shall be	826
subject to periodic examinations, as specified in rules adopted by	827
the superintendent, and their books, records, and accounts shall	828
be open to the inspection of the superintendent at all times. For	829
the purpose of such examination or inspection, the superintendent	830
may subpoena witnesses, administer oaths, receive testimony, and	831
order the submission of documents.	832

(B) Every credit union shall prepare and submit, on forms	833
provided by the superintendent, a financial report to the	834
superintendent showing its assets and liabilities whenever	835
requested to do so by the superintendent. Every financial report	836
shall be verified by the oaths of the two principal officers in	837
charge of the affairs of the credit union at the time of such	838
verification and shall be submitted to the superintendent within	839
thirty days after the superintendent requests the financial	840
report.	841

(C) An annual financial report of the affairs and business of	842
the credit union, showing its condition as of the thirty-first day	843
of December unless otherwise authorized by the superintendent,	844
shall be filed with the superintendent not later than the date	845
authorized in the rules adopted by the superintendent.	846

(D) If a financial report or an annual financial report is	847
not filed with the superintendent in accordance with division (B)	848
or (C) of this section, the superintendent may do both of the	849
following:	850

(1) Assess a fine, determined by rule adopted by the	851
superintendent, for each day the report is in arrears;	852

(2) If the superintendent gives written notice to the	853
president of the credit union of the superintendent's intention to	854
do so, issue an order revoking the credit union's articles of	855
incorporation and appointing a liquidating agent to liquidate the	856
credit union in accordance with section 1733.37 of the Revised	857
Code.	858

(E)(1) Except as provided in division (E)(2) of this section,	859
each credit union doing business in this state shall remit,	860
semiannually and within fifteen days after billing, to the	861
treasurer of state, a supervisory fee in an amount determined by	862
the superintendent and confirmed by the credit union council. The	863
supervisory fee described in division (E)(1) of this section shall	864
be based on a percentage of the gross assets of the credit union	865
as shown by its last annual financial report filed with the	866
superintendent in accordance with division (C) of this section.	867
The minimum supervisory fee shall be determined by the	868
superintendent and confirmed by the credit union council.	869

(2) Each corporate credit union doing business in this state	870
shall remit, semiannually and within fifteen days after billing,	871
to the treasurer of state, a supervisory fee determined by rule	872
adopted by the superintendent and confirmed by the credit union	873
council. The aggregate annual amount of the fee shall not exceed	874
the annual operating fee that the national credit union	875
administration charges a federally chartered credit union pursuant	876
to the "Federal Credit Union Act," 84 Stat. 994 (1970), 12	877
U.S.C.A. 1751.	878

(3) The superintendent annually shall present to the credit	879
union council for confirmation the supervisory fees to be billed	880
credit unions and corporate credit unions pursuant to division (E)	881
of this section.	882

(4) If any supervisory fee is not remitted in accordance with	883
division (E)(1) or (2) of this section, the superintendent may	884
assess a fine, determined by rule adopted by the superintendent,	885
for each day that each fee is in arrears.	886

(5)(a) Subject to division (E)(5)(b) of this section, the	887
total amount of each semiannual billing to all credit unions and	888
corporate credit unions combined shall equal one-half of the	889
appropriation made by the main operating appropriation act,	890
including any modifications made by the controlling board, to the	891
division of financial institutions for the regulation of credit	892
unions for the fiscal year in which the billings occur, except	893
that the superintendent, in determining the supervisory fees, may	894
take into consideration any funds lapsed from the appropriation	895
made in the previous fiscal year.	896

(b) If during the period between the credit union council's	897
confirmation of supervisory fees and when supervisory fees	898
described in this section are collected, the credit union council	899
determines additional money is required to adequately fund the	900
operations of the division of financial institutions for that	901
fiscal year, the credit union council may, by the affirmative vote	902
of five of its members, increase the supervisory fees billed. The	903
superintendent promptly shall notify each credit union and	904
corporate credit union of the increased supervisory fees, and each	905
credit union or corporate credit union shall pay the increased	906
supervisory fees billed by the superintendent.	907

(6) The fees or fines collected pursuant to this section	908
shall be credited to the credit unions fund created in section	909
1733.321 of the Revised Code.	910

(F) A report of such examination shall be forwarded to the	911
president of each credit union after the completion of the	912
examination. SuchThe report may contain comments relative to the	913
management of the affairs of the credit union and also as to the	914
general condition of its assets. Within thirty days of the receipt	915
of suchthe report, a meeting of the directors shall be called to	916
consider matters contained in the report, and the president shall	917
notify the superintendent of any action taken at suchthe meeting.	918

(G)(1) The superintendent shall furnish reports of	919
examinations or other appropriate information to any organization	920
referred to in section 1733.041 of the Revised Code when requested	921
by suchthe organization and authorized by the credit union. The	922
superintendent may charge a fee for such reports and other	923
information as may be established by rules adopted by the	924
superintendent.	925

(2) A report of examination furnished pursuant to division	926
(G)(1) of this section is the property of the division of credit	927
unions and may be used by the examined credit union only in the	928
conduct of its business. Under no circumstances may the credit	929
union, its current or former directors, officers, employees,	930
agents, shareholders, participants in the conduct of its affairs,	931
or their agents disclose or make public, in any manner, a report	932
of examination or its contents.	933

(H) Except as provided in this division, information obtained	934
by the superintendent of financial institutions and the	935
superintendent's employees as a result of or arising out of the	936
examination or independent audit of a credit union, from required	937
reports, or because of their official position, shall be	938
confidential. Such information may be disclosed only in connection	939
with criminal proceedings or, subject to section 1733.327 of the	940
Revised Code, when it is necessary for the superintendent to take	941
official action pursuant to Chapter 1733. of the Revised Code and	942
the rules adopted thereunder regarding the affairs of the credit	943
union examined. Such information may also be introduced into	944
evidence or disclosed when and in the manner authorized in section	945
1181.25 of the Revised Code. This division does not prevent the	946
superintendent from properly exchanging information relating to an	947
examined credit union pursuant to division (F) or (G) of this	948
section or, with officials of properly authorized state or federal	949
financial institution regulatory authorities or, with any insurer	950
recognized under section 1733.041, or with any surety recognized	951
under section 1733.23 of the Revised Code. This division also does	952
not prevent the superintendent from disclosing information	953
contained in the financial reports or annual financial reports	954
described in division (B) or (C) of this section to recognized	955
credit union trade associations, to share guarantee insurance	956
organizations, to federal or state agencies, or to the general	957
public. Financial reports and annual financial reports described	958
in divisions (C) and (D) of this section, call reports, or	959
financial statements required to be filed with the division of	960
financial institutions are public records for purposes of section	961
149.43 of the Revised Code.	962

Sec. 1733.33.  (A) The voting members may adopt amendments to	963
the articles or regulations or amended articles or regulations in	964
a writing as provided in section 1733.11 of the Revised Code or in	965
a meeting of members called for that expressly stated purpose by a	966
vote of two-thirds of the voting members represented at such	967
meeting; or, if the articles or regulations provide or permit, by	968
the affirmative vote of a greater or lesser proportion, but not	969
less than a majority of the voting members represented at such	970
meeting. The board of directors may, at any duly held meeting,	971
adopt amendments to the field of membership article or to the	972
regulations, by an affirmative vote of two-thirds of the number of	973
directors authorized by the articles or regulations.	974

(B) The directors may adopt the following amendments to the	975
articles:	976

(1) Unless otherwise provided in the articles, an amendment	977
changing the name of the corporation;	978

(2) An amendment changing the place in this state where the	979
principal office of the credit union is located;	980

(3) An amendment changing the authorized number of shares;	981
the express terms, if any, of the shares; and if the shares are	982
classified, as permitted in section 1733.24 of the Revised Code,	983
the designation of each class, their express terms, and par value,	984
of any, per share.	985

(C) In the event amendments to the articles or regulations or	986
amended articles or regulations are adopted pursuant to section	987
1733.11 of the Revised Code, a copy of the proposed amendments or	988
proposed amended articles or regulations shall be distributed to	989
all of the voting members at or prior to the date on which	990
solicitation begins for written approval. In the event the	991
amendments or amended articles or regulations are adopted in a	992
meeting of members, copies of the proposed amendments or amended	993
articles or regulations, as the case may be, shall be distributed	994
to voting members upon request.	995

(C)(D) Amendments to the articles or regulations or the	996
amended articles or regulations shall include only such provisions	997
as may be included in or omitted from original articles or the	998
amended articles or regulations at the time the amendments or	999
amended articles or regulations are adopted.	1000

(D)(E) Amended articles or regulations shall contain a	1001
statement that they supersede the existing articles or	1002
regulations, as the case may be.	1003

(E)(F) Any such amendment or amended articles or regulations	1004
shall become effective only when the same shallit or they have	1005
been approved by the superintendent in the same manner as required	1006
for original articles or regulations under section 1733.07 of the	1007
Revised Code. Amendments to the articles or amended articles shall	1008
become effective upon the filing of the same with the secretary of	1009
state.	1010

Sec. 1733.37.  (A) If it appears that any credit union is	1011
bankrupt or insolvent, that its shares are impaired, that it has	1012
violated this chapter, or rules adopted by the superintendent of	1013
credit unions, or that it is operating in an unsafe or unsound	1014
manner, or if the credit union is experiencing a declining trend	1015
in its financial condition and a majority of its board of	1016
directors, by resolution, requests the issuance of an order under	1017
this division, the superintendent may issue an order revoking the	1018
credit union's articles of incorporation and appointing a	1019
liquidating agent to liquidate the credit union in accordance with	1020
this section.	1021

(B) A credit union under order to liquidate or in the course	1022
of liquidation, shall continue in existence for the purpose of	1023
discharging its debts, collecting and distributing its assets, and	1024
doing all acts required in order to wind up its business, and may	1025
sue and be sued for the purpose of enforcing such debts and	1026
obligations until its affairs are fully adjusted. The board of	1027
directors, or in the case of involuntary dissolution, the	1028
liquidating agent, shall use the assets of the credit union to	1029
pay: first, expenses incidental to liquidation, including any	1030
surety bond that may be required; second, any liability due	1031
nonmembers; third, redemption of shares and share accounts. Assets	1032
then remaining shall be distributed to the members proportionately	1033
to the purchase price of shares held by each member as of the date	1034
dissolving was voted, or the date of suspension, as the case may	1035
be.	1036

(C) As soon as the board or the liquidating agent determines	1037
that all assets from which there is a reasonable expectancy of	1038
realization have been liquidated and distributed as set forth in	1039
this section, it shall execute a certificate of dissolution on a	1040
form prescribed by the superintendent of credit unions and submit	1041
the certificate to the secretary of state who shall, after filing	1042
or recording and indexing, forward evidence of the filing to the	1043
superintendent, whereupon the credit union shall be dissolved.	1044

(D) If the articles of a credit union have been canceled for	1045
cause, or if a credit union has filed a certificate of dissolution	1046
or has indicated an intention to file such certificate, and the	1047
directors and officers of the credit union, in the opinion of the	1048
superintendent, are not conducting the liquidation proceedings in	1049
an expeditious, orderly, and efficient manner or in the best	1050
interest of its members, the superintendent may terminate the	1051
liquidation proceedings and issue an order appointing a	1052
liquidating agent to liquidate the credit union in accordance with	1053
this section. Such liquidating agent shall furnish bond for the	1054
faithful discharge of the liquidating agent's duties in an amount	1055
to be approved by the superintendent.	1056

(E) The liquidating agent may, under such rules as the	1057
superintendent prescribes:	1058

(1) Receive and take possession of the books, records,	1059
assets, and property of every description of the credit union in	1060
liquidation; sell, enforce collection of, and liquidate all such	1061
assets and property; compound all bad or doubtful debts, sue in	1062
the name of the credit union in liquidation, and defend such	1063
actions as are brought against the liquidating agent in the	1064
capacity as suchliquidating agent or against the credit union;	1065

(2) Receive, examine, and pass upon all claims against the	1066
credit union in liquidation, including claims of members;	1067

(3) Make distribution and payment to creditors and members as	1068
their interests appear;	1069

(4) Execute such documents and papers and do such other acts	1070
asthat the liquidating agent deems necessary or desirable to	1071
discharge official duties.	1072

(F) The expenses incurred by the liquidating agent in the	1073
liquidation of the credit union include the compensation of the	1074
liquidating agent and any other necessary or proper expenses	1075
connected therewith, all of which shall be paid in order of	1076
priority out of the property of suchthe credit union in the hands	1077
of the liquidating agent. Such expensesExpenses of liquidation,	1078
including the compensation of the liquidating agent, are subject	1079
to approval by the superintendent unless such agent is appointed	1080
by the court. In no event shall the total of suchthe expenses	1081
exceed ten per cent of the assets of the credit union existing at	1082
the date of the appointment of the liquidating agent, nor shall	1083
the compensation of such agent exceed five per cent of such assets	1084
upon suchthat date or five thousand dollars, whichever is the	1085
lesser amount.	1086

(G) Subject to the prior approval of the superintendent, a	1087
credit union may enter into a purchase and assumption agreement to	1088
purchase any of the assets or assume any of the liabilities of a	1089
credit union for which a liquidating agent has been appointed by	1090
order of the superintendent in accordance with this section. All	1091
persons, associations, and select groups eligible for membership	1092
in the credit unions that are parties to the purchase and	1093
assumption agreement shall be deemed to have a common bond of	1094
association. The assumption of the field of membership may be	1095
restricted, as specified in the purchase and assumption agreement.	1096

Sec. 1733.38.  A credit union organized and duly qualified as	1097
a credit union in another state may qualify to do business as a	1098
credit union in this state provided:	1099

(A) Such credit union is organized under credit union law	1100
substantially similar to sections 1733.01 to 1733.45, inclusive,	1101
of the Revised Code;	1102

(B) The interest rate of such credit union on loans made to	1103
members in this state does not exceed the maximum interest rate	1104
permitted by sections 1733.01 to 1733.45, inclusive, of the	1105
Revised Code;	1106

(C) A credit union organized and doing business under the	1107
laws of this state is permitted to do business in suchthe other	1108
state or territory where it is permitted to conduct business as a	1109
credit union, under conditions substantially similar to the	1110
provisions of this section.	1111

Sec. 1733.412.  Notwithstanding any provision in Chapter	1112
1733. of the Revised Code, if federal credit unions, organized	1113
under the laws of the United States, the home offices of which are	1114
located in this state, shall possess a right, power, privilege, or	1115
benefit by virtue of statute, rule, or regulation, or judicial	1116
decision or will possess the right, power, privilege, or benefit	1117
by virtue of a rule or regulation issued but not effective, which	1118
right, power, privilege, or benefit is not possessed by a credit	1119
union organized under the laws of this stateor any other law, the	1120
superintendent of credit unions may byshall adopt a rule	1121
authorizeunder section 111.15 of the Revised Code granting credit	1122
unions organized under the laws of this state to exercise the	1123
right, power, privilege, or benefit, doing business under	1124
authority granted by the superintendent, any right, power,	1125
privilege, or benefit possessed, by virtue of statute, rule,	1126
policy, regulation, interpretation, or judicial decision, by a	1127
credit union operating in this state and organized or chartered	1128
under this chapter, the laws of another state, or the laws of the	1129
United States. AThe rule so adopted by the superintendent shall	1130
become effective on the date of its issuanceadoption, but if the	1131
rule is issued by the superintendentadopted in anticipation of a	1132
federal rulelaw or regulation which has been enacted or issued	1133
but has not then become effective, the effective date of the	1134
superintendent's rule shall be the later date on which the federal	1135
rulelaw or regulation becomes effective. The rule,	1136
notwithstanding its original adoption under section 111.15 of the	1137
Revised Code, subsequently may be amended or rescinded only under	1138
Chapter 119. of the Revised Code. However, if theanother rule is	1139
adopted by the superintendent is not enacted into law within	1140
thirty months from the date the rule is issued by the	1141
superintendent, the rule shall thereupon no longer be of any force	1142
or effect. The superintendent, upon thirty days' written notice to	1143
state-chartered credit unions, may revoke any rule issued by	1144
virtue of the authority of this sectionunder this section on the	1145
same subject as the original rule that is intended as a	1146
replacement of the original rule, the original rule then may be	1147
rescinded under section 111.15 of the Revised Code instead of	1148
under Chapter 119. of the Revised Code.	1149

Sec. 1733.44. (A) No person, partnership, association, or	1150
corporation, other than credit unions and associations of such	1151
credit unions, to which all credit unions in their respective	1152
jurisdictions are eligible, shall use any name or title containing	1153
the words "credit union" or represent themselves, in advertising	1154
or elsewhere, as conducting business as a credit union.	1155

(B) Subject to all of the following, a credit union may adopt	1156
or change one or more trade names:	1157

(1) The credit union shall give written notice of the	1158
proposed trade name to the superintendent of credit unions at	1159
least thirty days before using the trade name.	1160

(2) The superintendent may deny a credit union the right to	1161
use a given trade name or terminate a credit union's right to use	1162
a trade name for any reason.	1163

(3) A credit union using a trade name clearly and	1164
conspicuously shall disclose the legal name of the credit union	1165
and the trade name in all signs, advertising, mailings, or similar	1166
materials and clearly and conspicuously shall disclose the trade	1167
name and the legal name of the credit union in all legal	1168
documents, certificates of deposit, signature cards, loan	1169
agreements, account statements, checks, drafts, and other similar	1170
documents.	1171

(4) A trade name may not contain the phrase "credit union."

1172

Sec. 2101.161.  The probate court may order that prepaid and	1173
unearned costs be deposited with a bank, savings and loan	1174
association, credit union, or trust company incorporated under the	1175
laws of this state or of the United States. The order shall be	1176
entered on the journal of the court and may specify that deposited	1177
costs are to be held in an account, or invested in an investment,	1178
supervised by the bank, association, credit union, or company.	1179
Interest earned on deposited costs shall be paid into the county	1180
treasury by the end of the calendar year in which it is received.	1181

Sec. 2105.31. As used in sections 2105.31 to 2105.39 of the	1182
Revised Code:	1183

(A) "Co-owners with right of survivorship" includes joint	1184
tenants, tenants by the entireties, and other co-owners of real or	1185
personal property,; insurance or other policies,; or bank, credit	1186
union, or other accounts, held under circumstances that entitle	1187
one or more persons to the whole of the property or account on the	1188
death of the other person or persons.	1189

(B) "Governing instrument" means a deed, will, trust,	1190
insurance or annuity policy, account with a transfer-on-death	1191
designation or the abbreviation TOD, account with a	1192
payable-on-death designation or the abbreviation POD, pension,	1193
profit-sharing, retirement, or similar benefit plan, instrument	1194
creating or exercising a power of appointment or a power of	1195
attorney, or a dispositive, appointive, or nominative instrument	1196
of any similar type.	1197

(C) "Payor" means a trustee, insurer, business entity,	1198
employer, governmental agency, political subdivision, or any other	1199
person authorized or obligated by law or a governing instrument to	1200
make payments or transfers.	1201

(D) "Event" includes the death of another person.

1202

Sec. 2109.13.  In any case in which a bond is required by the	1203
probate court from a fiduciary and the value of the estate or fund	1204
is such that the court deems it inexpedient to require security in	1205
the full amount prescribed by section 2109.04 of the Revised Code,	1206
the court may direct the deposit of any suitable personal property	1207
belonging to the estate or fund with a bank, building and loan	1208
association, savings and loan association, credit union, or trust	1209
company incorporated under the laws of this state or of the United	1210
States, as may be designated by order of the court.	1211

The deposit shall be made in the name of the fiduciary, and	1212
the personal property deposited shall not be withdrawn from the	1213
custody of the bank, association, credit union, or trust company	1214
except upon the special order of the court. No fiduciary shall	1215
receive or collect the whole or any part of the principal	1216
represented by the personal property without the special order of	1217
the court. Such an order can be made in favor of the fiduciary	1218
only if the court within its discretion, having regard for the	1219
purpose for which the order is requested, the disposition to be	1220
made of the assets as may be released, the value of the assets as	1221
related to the total value of the estate, and the period of time	1222
the assets will remain in the possession of the fiduciary, finds	1223
that the original bond previously given and then in force will be	1224
sufficient to protect the estate; otherwise, the court, as a	1225
condition to the release of the personal property deposited, shall	1226
require the fiduciary to execute an additional bond in an amount	1227
that the court determines.	1228

After the deposit has been made and after the filing with the	1229
court of a receipt for the personal property executed by the	1230
designated bank, association, credit union, or company, which	1231
receipt shall acknowledge that the personal property is held by	1232
the bank, association, credit union, or company subject to the	1233
order of the court, the court may fix or reduce the amount of the	1234
bond so that the amount of the penalty of the bond is determined	1235
with respect to the value of the remainder only of the estate or	1236
fund, without including the value of the personal property	1237
deposited. Neither the fiduciary nor histhe fiduciary's sureties	1238
shall be liable for any loss to the trust estate resulting from	1239
the deposit as is authorized and directed by the court pursuant to	1240
this section, if the fiduciary has acted in good faith.	1241

This section may be invoked simultaneously with the initial	1242
application for appointment of the fiduciary if an interim receipt	1243
of the bank, association, credit union, or company for which the	1244
application for appointment as depositary is being made,	1245
acknowledging that it already has received temporary deposit of	1246
the personal property described in the application for appointment	1247
as depositary, accompanies the simultaneous applications for	1248
appointment of fiduciary and for appointment of the depositary.	1249

Sec. 2109.372.  (A) As used in this section:

1250

(1) "Short term trust-quality investment fund" means a short	1251
term investment fund that meets both of the following conditions:	1252

(a) The fund may be either a collective investment fund	1253
established in accordance with section 1111.14 of the Revised Code	1254
or a registered investment company, including any affiliated	1255
investment company whether or not the fiduciary has invested other	1256
funds held by it in an agency or other nonfiduciary capacity in	1257
the securities of the same registered investment company or	1258
affiliated investment company.	1259

(b) The fund is invested in any one or more of the following	1260
manners:	1261

(i) In obligations of the United States or of its agencies;

1262

(ii) In obligations of one or more of the states of the	1263
United States or their political subdivisions;	1264

(iii) In variable demand notes, corporate money market	1265
instruments including, but not limited to, commercial paper rated	1266
at the time of purchase in either of the two highest	1267
classifications established by at least one nationally recognized	1268
standard rating service;	1269

(iv) Deposits in banks or savings and loan associations,	1270
whose deposits are insured by the federal deposit insurance	1271
corporation, or in credit unions insured by the national credit	1272
union administration or by the national deposit guaranty	1273
corporation established under Chapter 1761. of the Revised Code,	1274
if the rate of interest paid on such deposits is at least equal to	1275
the rate of interest generally paid by such banks or, savings and	1276
loan associations, or credit unions on deposits of similar terms	1277
or amounts;	1278

(v) In fully collateralized repurchase agreements or other	1279
evidences of indebtedness that are of trust quality and are	1280
payable on demand or have a maturity date consistent with the	1281
purpose of the fund and the duty of fiduciary prudence.	1282

(2) "Registered investment company" means any investment	1283
company that is defined in and registered under sections 3 and 8	1284
of the "Investment Company Act of 1940," 54 Stat. 789, 15 U.S.C.A.	1285
80a-3 and 80a-8.	1286

(3) "Affiliated investment company" has the same meaning as	1287
in division (E)(1) of section 1111.13 of the Revised Code.	1288

(B) A fiduciary is not required to invest cash that belongs	1289
to the trust and may hold that cash for the period prior to	1290
distribution if either of the following applies:	1291

(1) The fiduciary reasonably expects to do either of the	1292
following:	1293

(a) Distribute the cash to beneficiaries of the trust on a	1294
quarterly or more frequent basis;	1295

(b) Use the cash for the payment of debts, taxes, or expenses	1296
of administration within the ninety-day period following the	1297
receipt of the cash by the fiduciary.	1298

(2) Determined on the basis of the facilities available to	1299
the fiduciary and the amount of the income that reasonably could	1300
be earned by the investment of the cash, the amount of the cash	1301
does not justify the administrative burden or expense associated	1302
with its investment.	1303

(C) If a fiduciary wishes to hold funds that belong to the	1304
trust in liquid form and division (B) of this section does not	1305
apply, the fiduciary may so hold the funds as long as they are	1306
temporarily invested as described in division (D) of this section.	1307

(D)(1) A fiduciary may make a temporary investment of cash	1308
that the fiduciary may hold uninvested in accordance with division	1309
(B) of this section, and shall make a temporary investment of	1310
funds held in liquid form pursuant to division (C) of this	1311
section, in any of the following investments, unless the governing	1312
instrument provides for other investments in which the temporary	1313
investment of cash or funds is permitted:	1314

(a) A short term trust-quality investment fund;

1315

(b) Direct obligations of the United States or of its	1316
agencies;	1317

(c) A deposit with a credit union or a bank or savings and	1318
loan association, including a deposit with the fiduciary itself or	1319
any bank subsidiary corporation owned or controlled by the bank	1320
holding company that owns or controls the fiduciary, whose	1321
deposits are insured by the federal deposit insurance corporation,	1322
if the rate of interest paid on that deposit is at least equal to	1323
the rate of interest generally paid by that credit union or bank	1324
or savings and loan association on deposits of similar terms or	1325
amounts.	1326

(2) A fiduciary that makes a temporary investment of cash or	1327
funds pursuant to division (D)(1) of this section may charge a	1328
reasonable fee for the services associated with that investment.	1329
The fee shall be in addition to the compensation to which the	1330
fiduciary is entitled for his ordinary fiduciary services.	1331

(3) Fiduciaries that make one or more temporary investments	1332
of cash or funds pursuant to division (D)(1) of this section shall	1333
provide to the beneficiaries of the trusts involved, that are	1334
currently receiving income or have a right to receive income, a	1335
written disclosure of their temporary investment practices and, if	1336
applicable, the method of computing reasonable fees for their	1337
temporary investment services pursuant to division (D)(2) of this	1338
section. Fiduciaries may comply with this requirement in any	1339
appropriate written document, including, but not limited to, any	1340
periodic statement or account.	1341

(4) A fiduciary that makes a temporary investment of cash or	1342
funds in an affiliated investment company pursuant to division	1343
(D)(1)(a) of this section shall, when providing any periodic	1344
account statements of its temporary investment practices, report	1345
the net asset value of the shares comprising the investment in the	1346
affiliated investment company.	1347

(5) If a fiduciary that makes a temporary investment of cash	1348
or funds in an affiliated investment company pursuant to division	1349
(D)(1)(a) of this section invests in any mutual fund, the	1350
fiduciary shall provide to the beneficiaries of the trust	1351
involved, that are currently receiving income or have a right to	1352
receive income, a written disclosure, in at least ten-point	1353
boldface type, that the mutual fund is not insured or guaranteed	1354
by the federal deposit insurance corporation or by any other	1355
government agency or government-sponsored agency of the federal	1356
government or of this state.	1357

Sec. 2109.41.  Immediately after appointment and throughout	1358
the administration of a trust, but subject to section 2109.372 of	1359
the Revised Code, every fiduciary, pending payment of current	1360
obligations of histhe fiduciary's trust, distribution, or	1361
investment pursuant to law, shall deposit all funds received by	1362
himthe fiduciary in histhe fiduciary's name as such fiduciary in	1363
one or more depositaries. Each depositary shall be a bank or,	1364
savings and loan association, or credit union located in this	1365
state. A corporate fiduciary, authorized to receive deposits of	1366
fiduciaries, may be the depository of funds held by it as such	1367
fiduciary. All deposits made pursuant to this section shall be in	1368
such class of account as will be most advantageous to the trust,	1369
and each depositary shall pay interest at the highest rate	1370
customarily paid to its patrons on deposits in accounts of the	1371
same class.	1372

The placing of such funds in such depositaries under the	1373
joint control of the fiduciary and a surety on the bond of the	1374
fiduciary shall not increase the liability of the fiduciary.	1375

Sec. 4705.09.  (A)(1) Any person admitted to the practice of	1376
law in this state by order of the supreme court in accordance with	1377
its prescribed and published rules, or any law firm or legal	1378
professional association, may establish and maintain an	1379
interest-bearing trust account, for purposes of depositing client	1380
funds held by the attorney, firm, or association that are nominal	1381
in amount or are to be held by the attorney, firm, or association	1382
for a short period of time, with any bank or savings and loan	1383
association that is authorized to do business in this state and is	1384
insured by the federal deposit insurance corporation or the	1385
successor to that corporation, or any credit union insured by the	1386
national credit union administration operating under the "Federal	1387
Credit Union Act," 84 Stat. 994 (1970), 12 U.S.C.A. 1751, or	1388
insured by a credit union guaranty corporation established under	1389
Chapter 1761. of the Revised Code. Each account established under	1390
this division shall be in the name of the attorney, firm, or	1391
association that established and is maintaining it and shall be	1392
identified as an IOLTA or an interest on lawyer's trust account.	1393
The name of the account may contain additional identifying	1394
features to distinguish it from other trust accounts established	1395
and maintained by the attorney, firm, or association.	1396

(2) Each attorney who receives funds belonging to a client	1397
shall do one of the following:	1398

(a) Establish and maintain one or more interest-bearing trust	1399
accounts in accordance with division (A)(1) of this section or	1400
maintain one or more interest-bearing trust accounts previously	1401
established in accordance with that division, and deposit all	1402
client funds held that are nominal in amount or are to be held by	1403
the attorney for a short period of time in the account or	1404
accounts;	1405

(b) If the attorney is affiliated with a law firm or legal	1406
professional association, comply with division (A)(2)(a) of this	1407
section or deposit all client funds held that are nominal in	1408
amount or are to be held by the attorney for a short period of	1409
time in one or more interest-bearing trust accounts established	1410
and maintained by the firm or association in accordance with	1411
division (A)(1) of this section.	1412

(3) No funds belonging to any attorney, firm, or legal	1413
professional association shall be deposited in any	1414
interest-bearing IOTAtrust account established under division	1415
(A)(1) or (2) of this section, except that funds sufficient to pay	1416
or enable a waiver of depository institution service charges on	1417
the account shall be deposited in the account and other funds	1418
belonging to the attorney, firm, or association may be deposited	1419
as authorized by the Code of Professional Responsibility adopted	1420
by the supreme court. The determinations of whether funds held are	1421
nominal or more than nominal in amount and of whether funds are to	1422
be held for a short period or longer than a short period of time	1423
rests in the sound judgment of the particular attorney. No	1424
imputation of professional misconduct shall arise from the	1425
attorney's exercise of judgment in these matters.	1426

(B) All interest earned on funds deposited in an	1427
interest-bearing trust account established under division (A)(1)	1428
or (2) of this section shall be transmitted to the treasurer of	1429
state for deposit in the legal aid fund established under section	1430
120.52 of the Revised Code. No part of the interest earned on	1431
funds deposited in an interest-bearing trust account established	1432
under division (A)(1) or (2) of this section shall be paid to, or	1433
inure to the benefit of, the attorney, the attorney's law firm or	1434
legal professional association, the client or other person who	1435
owns or has a beneficial ownership of the funds deposited, or any	1436
other person other than in accordance with this section, section	1437
4705.10, and sections 120.51 to 120.55 of the Revised Code.	1438

(C) No liability arising out of any act or omission by any	1439
attorney, law firm, or legal professional association with respect	1440
to any interest-bearing trust account established under division	1441
(A)(1) or (2) of this section shall be imputed to the depository	1442
institution.	1443

(D) The supreme court may adopt and enforce rules of	1444
professional conduct that pertain to the use, by attorneys, law	1445
firms, or legal professional associations, of interest-bearing	1446
trust accounts established under division (A)(1) or (2) of this	1447
section, and that pertain to the enforcement of division (A)(2) of	1448
this section. Any rules adopted by the supreme court under this	1449
authority shall conform to the provisions of this section, section	1450
4705.10, and sections 120.51 to 120.55 of the Revised Code.	1451

Sec. 4973.17.  (A) Upon the application of any bank,	1452
building; savings and loan association,; credit union; or	1453
association of banks or building, savings and loan associations,	1454
or credit unions in this state, the secretary of state may appoint	1455
and commission any persons that the bank, building; savings and	1456
loan association,; credit union; or association of banks or	1457
building, savings and loan associations, or credit unions	1458
designates, or as many of those persons as the secretary of state	1459
considers proper, to act as police officers for and on the	1460
premises of that bank, building; savings and loan association,;	1461
credit union; or association of banks or building, savings and	1462
loan associations, credit unions; or elsewhere, when directly in	1463
the discharge of their duties. Police officers so appointed shall	1464
be citizens of this state and of good character. They shall hold	1465
office for three years, unless, for good cause shown, their	1466
commission is revoked by the secretary of state, or by the bank,	1467
building; savings and loan association,; credit union; or	1468
association of banks or building, savings and loan associations,	1469
or credit unions, as provided by law.	1470

(B) Upon the application of a company owning or using a	1471
railroad in this state and subject to section 4973.171 of the	1472
Revised Code, the secretary of state may appoint and commission	1473
any persons that the railroad company designates, or as many of	1474
those persons as the secretary of state considers proper, to act	1475
as police officers for and on the premises of the railroad	1476
company, its affiliates or subsidiaries, or elsewhere, when	1477
directly in the discharge of their duties. Police officers so	1478
appointed, within the time set by the Ohio peace officer training	1479
commission, shall successfully complete a commission approved	1480
training program and be certified by the commission. They shall	1481
hold office for three years, unless, for good cause shown, their	1482
commission is revoked by the secretary of state, or railroad	1483
company, as provided by law.	1484

Any person holding a similar commission in another state may	1485
be commissioned and may hold office in this state without	1486
completing the approved training program required by this division	1487
provided that the person has completed a substantially equivalent	1488
training program in the other state. The Ohio peace officer	1489
training commission shall determine whether a training program in	1490
another state meets the requirements of this division.	1491

(C) Upon the application of any company under contract with	1492
the United States atomic energy commission for the construction or	1493
operation of a plant at a site owned by the commission, the	1494
secretary of state may appoint and commission persons the company	1495
designates, not to exceed one hundred fifty, to act as police	1496
officers for the company at the plant or site owned by the	1497
commission. Police officers so appointed shall be citizens of this	1498
state and of good character. They shall hold office for three	1499
years, unless, for good cause shown, their commission is revoked	1500
by the secretary of state or by the company, as provided by law.	1501

(D)(1) Upon the application of any hospital that is operated	1502
by a public hospital agency or a nonprofit hospital agency and	1503
that employs and maintains its own proprietary police department	1504
or security department and subject to section 4973.171 of the	1505
Revised Code, the secretary of state may appoint and commission	1506
any persons that the hospital designates, or as many of those	1507
persons as the secretary of state considers proper, to act as	1508
police officers for the hospital. No person who is appointed as a	1509
police officer under this division shall engage in any duties or	1510
activities as a police officer for the hospital or any affiliate	1511
or subsidiary of the hospital unless all of the following apply:	1512

(a) The chief of police of the municipal corporation in which	1513
the hospital is located or, if the hospital is located in the	1514
unincorporated area of a county, the sheriff of that county has	1515
granted approval to the hospital to permit persons appointed as	1516
police officers under this division to engage in those duties and	1517
activities. The approval required by this division is general in	1518
nature and is intended to cover in the aggregate all persons	1519
appointed as police officers for the hospital under this division;	1520
a separate approval is not required for each appointee on an	1521
individual basis.	1522

(b) Subsequent to the grant of approval described in division	1523
(D)(1)(a) of this section, the hospital has entered into a written	1524
agreement with the chief of police of the municipal corporation in	1525
which the hospital is located or, if the hospital is located in	1526
the unincorporated area of a county, with the sheriff of that	1527
county, that sets forth the standards and criteria to govern the	1528
interaction and cooperation between persons appointed as police	1529
officers for the hospital under this division and law enforcement	1530
officers serving the agency represented by the chief of police or	1531
sheriff who signed the agreement in areas of their concurrent	1532
jurisdiction. The written agreement shall be signed by the	1533
appointing authority of the hospital and by the chief of police or	1534
sheriff. The standards and criteria may include, but are not	1535
limited to, provisions governing the reporting of offenses	1536
discovered by hospital police officers to the agency represented	1537
by the chief of police or sheriff, provisions governing	1538
investigatory responsibilities relative to offenses committed on	1539
hospital property, and provisions governing the processing and	1540
confinement of persons arrested for offenses committed on hospital	1541
property. The agreement required by this division is intended to	1542
apply in the aggregate to all persons appointed as police officers	1543
for the hospital under this division; a separate agreement is not	1544
required for each appointee on an individual basis.	1545

(c) The person has successfully completed a training program	1546
approved by the Ohio peace officer training commission and has	1547
been certified by the commission. A person appointed as a police	1548
officer under this division may attend a training program approved	1549
by the commission and be certified by the commission regardless of	1550
whether the appropriate chief of police or sheriff has granted the	1551
approval described in division (D)(1)(a) of this section and	1552
regardless of whether the hospital has entered into the written	1553
agreement described in division (D)(1)(b) of this section with the	1554
appropriate chief of police or sheriff.	1555

(2)(a) A person who is appointed as a police officer under	1556
division (D)(1) of this section is entitled, upon the grant of	1557
approval described in division (D)(1)(a) of this section and upon	1558
the person's and the hospital's compliance with the requirements	1559
of divisions (D)(1)(b) and (c) of this section, to act as a police	1560
officer for the hospital on the premises of the hospital and of	1561
its affiliates and subsidiaries that are within the territory of	1562
the municipal corporation served by the chief of police or the	1563
unincorporated area of the county served by the sheriff who signed	1564
the written agreement described in division (D)(1)(b) of this	1565
section, whichever is applicable, and anywhere else within the	1566
territory of that municipal corporation or within the	1567
unincorporated area of that county. The authority to act as a	1568
police officer as described in this division is granted only if	1569
the person, when engaging in that activity, is directly in the	1570
discharge of the person's duties as a police officer for the	1571
hospital. The authority to act as a police officer as described in	1572
this division shall be exercised in accordance with the standards	1573
and criteria set forth in the written agreement described in	1574
division (D)(1)(b) of this section.	1575

(b) Additionally, a person appointed as a police officer	1576
under division (D)(1) of this section is entitled, upon the grant	1577
of approval described in division (D)(1)(a) of this section and	1578
upon the person's and the hospital's compliance with the	1579
requirements of divisions (D)(1)(b) and (c) of this section, to	1580
act as a police officer elsewhere, within the territory of a	1581
municipal corporation or within the unincorporated area of a	1582
county, if the chief of police of that municipal corporation or	1583
the sheriff of that county, respectively, has granted approval for	1584
that activity to the hospital, police department, or security	1585
department served by the person as a police officer and if the	1586
person, when engaging in that activity, is directly in the	1587
discharge of the person's duties as a police officer for the	1588
hospital. The approval described in this division may be general	1589
in nature or may be limited in scope, duration, or applicability,	1590
as determined by the chief of police or sheriff granting the	1591
approval.	1592

(3) Police officers appointed under division (D)(1) of this	1593
section shall hold office for three years, unless, for good cause	1594
shown, their commission is revoked by the secretary of state or by	1595
the hospital, as provided by law. As used in divisions (D)(1) to	1596
(3) of this section, "public hospital agency" and "nonprofit	1597
hospital agency" have the same meanings as in section 140.01 of	1598
the Revised Code.	1599

(E) A fee of fifteen dollars for each commission applied for	1600
under this section shall be paid at the time the application is	1601
made, and this amount shall be returned if for any reason a	1602
commission is not issued.	1603

Section 2. That existing sections 119.01, 1733.01, 1733.04,	1604
1733.05, 1733.16, 1733.22, 1733.24, 1733.25, 1733.29, 1733.30,	1605
1733.31, 1733.32, 1733.33, 1733.37, 1733.38, 1733.412, 1733.44,	1606
2101.161, 2105.31, 2109.13, 2109.372, 2109.41, 4705.09, and	1607
4973.17 and section 1733.251 of the Revised Code are hereby	1608
repealed.	1609

Section 3.  Section 119.01 of the Revised Code is presented	1610
in this act as a composite of the section as amended by both Sub.	1611
H.B. 386 and Am. Sub. S.B. 138 of the 124th General Assembly.	1612
Section 135.14 of the Revised Code is presented in this act as a	1613
composite of the section as amended by both Sub. H.B. 473 and Am.	1614
Sub. H.B. 640 of the 123rd General Assembly. The General Assembly,	1615
applying the principle stated in division (B) of section 1.52 of	1616
the Revised Code that amendments are to be harmonized if	1617
reasonably capable of simultaneous operation, finds that the	1618
composites are the resulting versions of the sections in effect	1619
prior to the effective date of the sections as presented in this	1620
act.	1621