As Introduced

128th General Assembly
Regular Session
2009-2010
H. B. No. 483


Representative Pryor 

Cosponsors: Representatives Dodd, Domenick, Evans, Garland, Gerberry, Goodwin, Goyal, Letson, Murray, Phillips, Sayre, Stebelton, Weddington 

A BILL
To amend sections 135.631, 135.74, and 135.75 of the 1
Revised Code to modify the Agricultural Linked 2
Deposit Program with respect to the maximum amount 3
the Treasurer of State may invest in agricultural 4
linked deposits and the interest rate at which 5
loans are made under the Program.6


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

       Section 1. That sections 135.631, 135.74, and 135.75 of the 7
Revised Code be amended to read as follows:8

       Sec. 135.631.  The treasurer of state shall attempt to place 9
up to onetwo hundred twenty-five million dollars of the amount 10
authorized to be invested under section 135.63 of the Revised Code 11
in agricultural linked deposits, as defined in section 135.71 of 12
the Revised Code, subject to the procedures set forth in sections 13
135.71 to 135.76 of the Revised Code.14

       Sec. 135.74.  (A) The treasurer of state may accept or reject 15
an agricultural linked deposit loan package or any portion 16
thereof, based on the treasurer's evaluation of the eligible 17
agricultural businesses included in the package, the amount of 18
individual loans in the package, and the amount of the package. In 19
evaluating the eligible agricultural businesses, the treasurer of 20
state shall give priority to a business's financial need for the 21
loan to meet planting deadlines but shall also consider the 22
overall financial need of the business and the economic needs of 23
the area where the business is located.24

       (B) Upon acceptance of the agricultural linked deposit loan 25
package or any portion thereof, the treasurer of state may place 26
certificates of deposit with the eligible lending institution at a 27
rate below current market rates, as determined and calculated by 28
the treasurer of state, or may invest in bonds, notes, debentures, 29
or other obligations or securities issued by the federal farm 30
credit bank with respect to the eligible lending institution at a 31
rate below current market rates, as determined and calculated by 32
the treasurer of state. When necessary, the treasurer may place 33
certificates of deposit or may invest in such obligations or 34
securities prior to acceptance of an agricultural linked deposit 35
loan package.36

       (C) The eligible lending institution shall enter into an 37
agricultural linked deposit agreement with the treasurer of state, 38
which shall include requirements necessary to carry out the 39
purposes of sections 135.71 to 135.76 of the Revised Code. Such 40
requirements shall include an agreement by the eligible lending 41
institution to lend the value of the agricultural linked deposit 42
to eligible agricultural businesses at a rate that reflects a 43
percentage rate reduction below the present borrowing rate 44
applicable to each specific agricultural business in the accepted 45
loan package that is equalproportional to the percentage rate 46
reduction below market rates at which the certificates of deposit 47
that constitute the agricultural linked deposit were placed or at 48
which the investments in bonds, notes, debentures, or other 49
obligations or securities that constitute the agricultural linked 50
deposit were made. Such requirements shall also reflect the market 51
conditions prevailing in the eligible lending institution's 52
lending area. The agreement may include a specification of the 53
period of time in which the lending institution is to lend funds 54
upon the placement of a linked deposit, and shall include 55
provisions for the certificates of deposit to be placed or the 56
investment in bonds, notes, debentures, obligations, or securities 57
to be made for any maturity considered appropriate by the 58
treasurer of state not to exceed two years and may be renewed for 59
up to an additional two years at the option of the treasurer. 60
Interest shall be paid at the times determined by the treasurer of 61
state.62

       (D) Eligible lending institutions shall comply fully with 63
Chapter 135. of the Revised Code.64

       Sec. 135.75.  (A) Upon the placement of an agricultural 65
linked deposit with an eligible lending institution, such 66
institution is required to lend such funds to each approved 67
eligible agricultural business listed in the agricultural linked 68
deposit loan package required by division (D) of section 135.73 of 69
the Revised Code and in accordance with the agricultural linked 70
deposit agreement required by division (C) of section 135.74 of 71
the Revised Code. The loan shall be at a rate that reflects a 72
percentage rate reduction below the present borrowing rate 73
applicable to each business that is equal to the percentage rate 74
reduction below market rates at which the certificate of deposits 75
that constitute the agricultural linked deposit were placed or at 76
which the investments in bonds, notes, debentures, or other 77
obligations or securities that constitute the agricultural linked 78
deposit were made. A certification of compliance with this section 79
in the form and manner as prescribed by the treasurer of state 80
shall be required of the eligible lending institution.81

       (B) The treasurer of state shall take any and all steps 82
necessary to implement the agricultural linked deposit program and 83
monitor compliance of eligible lending institutions and eligible 84
agricultural businesses, including the development of guidelines 85
as necessary.86

       Section 2. That existing sections 135.631, 135.74, and 135.75 87
of the Revised Code are hereby repealed.88