As Reported by the House Civil and Commercial Law Committee

128th General Assembly Regular Session 2009-2010

Sub. S. B. No. 124

Senators Faber, Schiavoni 

Cosponsors: Senators Seitz, Fedor, Schuler, Kearney, Miller, D., Carey, Harris, Hughes, Patton, Strahorn, Wagoner, Gibbs, Stewart, Miller, R., Sawyer, Turner, Wilson 

Representatives Harwood, Mecklenborg, Stebelton 

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A BILL

To amend sections 317.114, 321.24, 1321.51, 1321.522,

1

1321.53, 1321.531, 1321.532, 1321.533, 1321.535,

2

1321.54, 1321.55, 1321.59, 1322.01, 1322.02,

3

1322.022, 1322.023, 1322.03, 1322.031, 1322.04,

4

1322.041, 1322.062, 1322.07, 1322.074, 1322.10,

5

1322.99, 1343.011, 1345.01, 1345.05, 1345.09,

6

1349.31, 1349.43, 1733.252, 5302.01, 5302.02,

7

5302.22, 5302.221, 5302.23, 5717.01, 5717.011,

8

5717.02, 5717.04, and 5815.36, to enact sections

9

5302.222, 5302.24, 5703.021, and 5703.81 of the

10

Revised Code, and to amend Section 745.60 of Am.

11

Sub. H.B. 1 of the 128th General Assembly to

12

change the transfer on death (TOD) designation

13

instrument from a deed to an affidavit, to allow

14

real property owners holding title in survivorship

15

tenancy to execute such an affidavit, to clarify

16

the status of a trustee of a trust as a TOD

17

beneficiary and the dower rights of the spouse of

18

the property owner, to make other changes

19

pertaining to the transfer on death of real

20

property, to modify the mortgage lending laws, to

21

establish a Small Claims Division of the Board of

22

Tax Appeals and criteria for appeals to qualify to

23

be heard in the Division, to create the Tax

24

Appeals Administration Fund in the State Treasury

25

by earmarking for the Board of Tax Appeals a

26

portion of the state reimbursement to local taxing

27

units for the 10% real property tax rollback, to

28

temporarily authorize a treasurer or prosecuting

29

attorney of a county with a population of more

30

than 800,000 but less than 900,000 to designate

31

that part of any surplus balance in the county's

32

Delinquent Tax and Assessment Collection Fund be

33

used to pay operating expenses of the respective

34

office in lieu of county general fund money, to

35

allow a county recorder to accept for filing

36

certain nonconforming documents without charging

37

the fees otherwise required to be collected for

38

nonconforming documents, and to declare an

39

emergency.

40

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

Section 1. That sections 317.114, 321.24, 1321.51, 1321.522,	41
1321.53, 1321.531, 1321.532, 1321.533, 1321.535, 1321.54, 1321.55,	42
1321.59, 1322.01, 1322.02, 1322.022, 1322.023, 1322.03, 1322.031,	43
1322.04, 1322.041, 1322.062, 1322.07, 1322.074, 1322.10, 1322.99,	44
1343.011, 1345.01, 1345.05, 1345.09, 1349.31, 1349.43, 1733.252,	45
5302.01, 5302.02, 5302.22, 5302.221, 5302.23, 5717.01, 5717.011,	46
5717.02, 5717.04, and 5815.36 be amended and sections 5302.222,	47
5302.24, 5703.021, and 5703.81 of the Revised Code be enacted to	48
read as follows:	49

Sec. 317.114.  (A) Except as otherwise provided in division	50
divisions (B) and (C) of this section, an instrument or document	51
presented for recording to the county recorder shall have been	52
prepared in accordance with all of the following requirements:	53

(1) PrintLegible print size not smaller than a computer font	54
size of ten;	55

(2) Minimum paper size of eight and one-half inches by eleven	56
inches;	57

(3) Maximum paper size of eight and one-half inches by	58
fourteen inches;	59

(4) Black or blue ink only;

60

(5) No use of highlighting;

61

(6) Margins of one-inch width on each side of each page of	62
the instrument or document;	63

(7) A margin of one-inch width across the bottom of each page	64
of the instrument or document;	65

(8) A three-inch margin of blank space across the top of the	66
first page of each instrument or document to accommodate any	67
certification or indorsement of the county engineer, county	68
auditor, or county recorder, as may be required by law, with the	69
right half of that margin being reserved for the indorsement of	70
the county recorder required by section 317.12 of the Revised	71
Code; and	72

(9) A one and one-half-inch margin of blank space across the	73
top of each of the remaining pages of the instrument or document	74
to accommodate any certification or indorsement of the county	75
engineer, county auditor, or county recorder, as may be required	76
by law.	77

The(B)(1) Except as otherwise provided in division (B)(2) of	78
this section, the county recorder shall accept for recording an	79
instrument or document that does not conform to the foregoing	80
requirements set forth in division (A) of this section but shall	81
charge and collect the following additional fees for each such	82
instrument or document: an additional base fee for the recorder's	83
services of ten dollars and a housing trust fund fee of ten	84
dollars, which shall be collected pursuant to section 317.36 of	85
the Revised Code.	86

(2) The county recorder shall accept for recording an	87
instrument or document that does not conform to the requirements	88
set forth in division (A) of this section but shall not charge and	89
collect the additional fees specified in division (B)(1) of this	90
section for page numbers, hand-written, typed, or printed	91
initials, bar codes, copyright information, trailing portions of	92
signatures, plat description of any oil and gas well location or	93
drilling unit or lease, or any other incidental information that	94
is not essential to the recording process or to the legal validity	95
of the instrument or document and that may appear in either of the	96
side margins or in the bottom margin. In addition, notary stamps	97
and seals and any signatures and initials that may appear within	98
the instrument or document need not satisfy the font size	99
requirement and no additional fees may be charged or collected by	100
the county recorder for such a nonconformance.	101

(B)(C) This section does not apply to any of the following:

102

(1) Any document that originates with any court or taxing	103
authority;	104

(2) Any document authorized to be recorded under section	105
317.24 of the Revised Code;	106

(3) Any plat, as defined in section 711.001 of the Revised	107
Code, that is required or authorized by the Revised Code to be	108
recorded;	109

(4) Any document authorized to be recorded that originates	110
from any state or federal agency;	111

(5) Any document executed before the effective date of this	112
sectionJuly 1, 2009.	113

Sec. 321.24.  (A) On or before the fifteenth day of February,	114
in each year, the county treasurer shall settle with the county	115
auditor for all taxes and assessments that the treasurer has	116
collected on the general duplicate of real and public utility	117
property at the time of making the settlement. If the county	118
treasurer has made or will make advance payments to the several	119
taxing districts of current year unpaid taxes under section	120
321.341 of the Revised Code before collecting them, the county	121
treasurer shall take the advance payments into account for	122
purposes of the settlement with the county auditor under this	123
division.	124

(B) On or before the thirtieth day of June, in each year, the	125
treasurer shall settle with the auditor for all advance payments	126
of general personal and classified property taxes that the	127
treasurer has received at the time of making the settlement.	128

(C) On or before the tenth day of August, in each year, the	129
treasurer shall settle with the auditor for all taxes and	130
assessments that the treasurer has collected on the general	131
duplicates of real and public utility property at the time of	132
making such settlement, not included in the preceding February	133
settlement. If the county treasurer has made or will make advance	134
payments to the several taxing districts of the current year	135
delinquent taxes under section 321.341 of the Revised Code before	136
collecting them, the county treasurer shall take the advance	137
payments into account for purposes of the settlement with the	138
county auditor under this division.	139

(D) On or before the thirty-first day of October, in each	140
year, the treasurer shall settle with the auditor for all taxes	141
that the treasurer has collected on the general personal and	142
classified property duplicates, and for all advance payments of	143
general personal and classified property taxes, not included in	144
the preceding June settlement, that the treasurer has received at	145
the time of making such settlement.	146

(E) In the event the time for the payment of taxes is	147
extended, pursuant to section 323.17 of the Revised Code, the date	148
on or before which settlement for the taxes so extended must be	149
made, as herein prescribed, shall be deemed to be extended for a	150
like period of time. At each such settlement, the auditor shall	151
allow to the treasurer, on the moneys received or collected and	152
accounted for by the treasurer, the treasurer's fees, at the rate	153
or percentage allowed by law, at a full settlement of the	154
treasurer.	155

(F) Within thirty days after the day of each settlement of	156
taxes required under divisions (A) and (C) of this section, the	157
treasurer shall certify to the tax commissioner any adjustments	158
that have been made to the amount certified previously pursuant to	159
section 319.302 of the Revised Code and that the settlement has	160
been completed. Upon receipt of such certification, the	161
commissioner shall provide for payment to the county treasurer	162
from the general revenue fund of an amount equal to one-half of	163
the amount certified by the treasurer in the preceding tax year	164
under section 319.302 of the Revised Code, less one-half of the	165
amount computed for all taxing districts in that county for the	166
current fiscal year under sectionsections 5703.80 and 5703.81 of	167
the Revised Code for crediting to the property tax administration	168
fund and the tax appeals administration fund. Such payment shall	169
be credited upon receipt to the county's undivided income tax	170
fund, and the county auditor shall transfer to the county general	171
fund from the amount thereof the total amount of all fees and	172
charges which the auditor and treasurer would have been authorized	173
to receive had such section not been in effect and that amount had	174
been levied and collected as taxes. The county auditor shall	175
distribute the amount remaining among the various taxing districts	176
in the county as if it had been levied, collected, and settled as	177
real property taxes. The amount distributed to each taxing	178
district shall be reduced by the total of the amounts computed for	179
the district under section 5703.80 of the Revised Code, but the	180
reduction shall not exceed the amount that otherwise would be	181
distributed to the taxing district under this division. The tax	182
commissioner shall make available to taxing districts such	183
information as is sufficient for a taxing district to be able to	184
determine the amount of the reduction in its distribution under	185
this section.	186

(G)(1) Within thirty days after the day of the settlement	187
required in division (D) of this section, the county treasurer	188
shall notify the tax commissioner that the settlement has been	189
completed. Upon receipt of that notification, the commissioner	190
shall provide for payment to the county treasurer from the general	191
revenue fund of an amount equal to the amount certified under	192
former section 319.311 of the Revised Code and paid in the state's	193
fiscal year 2003 multiplied by the percentage specified in	194
division (G)(2) of this section. The payment shall be credited	195
upon receipt to the county's undivided income tax fund, and the	196
county auditor shall distribute the amount thereof among the	197
various taxing districts of the county as if it had been levied,	198
collected, and settled as personal property taxes. The amount	199
received by a taxing district under this division shall be	200
apportioned among its funds in the same proportion as the current	201
year's personal property taxes are apportioned.	202

(2) Payments required under division (G)(1) of this section	203
shall be made at the following percentages of the amount certified	204
under former section 319.311 of the Revised Code and paid under	205
division (G)(1) of this section in the state's fiscal year 2003:	206

(a) In fiscal year 2004, ninety per cent;

207

(b) In fiscal year 2005, eighty per cent;

208

(c) In fiscal year 2006, sixty-four per cent;

209

(d) In fiscal year 2007, forty per cent;

210

(e) In fiscal year 2008, thirty-two per cent;

211

(f) In fiscal year 2009, sixteen per cent.

212

After fiscal year 2009, no payments shall be made under	213
division (G)(1) of this section.	214

(H)(1) On or before the fifteenth day of April each year, the	215
county treasurer shall settle with the county auditor for all	216
manufactured home taxes that the county treasurer has collected on	217
the manufactured home tax duplicate at the time of making the	218
settlement.	219

(2) On or before the fifteenth day of September each year,	220
the county treasurer shall settle with the county auditor for all	221
remaining manufactured home taxes that the county treasurer has	222
collected on the manufactured home tax duplicate at the time of	223
making the settlement.	224

(3) If the time for payment of such taxes is extended under	225
section 4503.06 of the Revised Code, the time for making the	226
settlement as prescribed by divisions (H)(1) and (2) of this	227
section is extended for a like period of time.	228

(I) On or before the second Monday in September of each year,	229
the county treasurer shall certify to the tax commissioner the	230
total amount by which the manufactured home taxes levied in that	231
year were reduced pursuant to section 319.302 of the Revised Code.	232
Within ninety days after the receipt of such certification, the	233
commissioner shall provide for payment to the county treasurer	234
from the general revenue fund of an amount equal to the amount	235
certified by the treasurer. Such payment shall be credited upon	236
receipt to the county's undivided income tax fund, and the county	237
auditor shall transfer to the county general fund from the amount	238
thereof the total amount of all fees and charges that the auditor	239
and treasurer would have been authorized to receive had such	240
section not been in effect and that amount had been levied and	241
collected as manufactured home taxes. The county auditor shall	242
distribute the amount remaining among the various taxing districts	243
in the county as if it had been levied, collected, and settled as	244
manufactured home taxes.	245

Sec. 1321.51.  As used in sections 1321.51 to 1321.60 of the	246
Revised Code:	247

(A) "Person" means an individual, partnership, association,	248
trust, corporation, or any other legal entity.	249

(B) "Certificate" means a certificate of registration issued	250
under sections 1321.51 to 1321.60 of the Revised Code.	251

(C) "Registrant" means a person to whom one or more	252
certificates of registration have been issued under sections	253
1321.51 to 1321.60 of the Revised Code.	254

(D) "Principal amount" means the amount of cash paid to, or	255
paid or payable for the account of, the borrower, and includes any	256
charge, fee, or expense that is financed by the borrower at	257
origination of the loan or during the term of the loan.	258

(E) "Interest" means all charges payable directly or	259
indirectly by a borrower to a registrant as a condition to a loan	260
or an application for a loan, however denominated, but does not	261
include default charges, deferment charges, insurance charges or	262
premiums, court costs, loan origination charges, check collection	263
charges, credit line charges, points, prepayment penalties, or	264
other fees and charges specifically authorized by law.	265

(F) "Interest-bearing loan" means a loan in which the debt is	266
expressed as the principal amount and interest is computed,	267
charged, and collected on unpaid principal balances outstanding	268
from time to time.	269

(G) "Precomputed loan" means a loan in which the debt is a	270
sum comprising the principal amount and the amount of interest	271
computed in advance on the assumption that all scheduled payments	272
will be made when due.	273

(H) "Actuarial method" means the method of allocating	274
payments made on a loan between the principal amount and interest	275
whereby a payment is applied first to the accumulated interest and	276
the remainder to the unpaid principal amount.	277

(I) "Applicable charge" means the amount of interest	278
attributable to each monthly installment period of the loan	279
contract. The applicable charge is computed as if each installment	280
period were one month and any charge for extending the first	281
installment period beyond one month is ignored. In the case of	282
loans originally scheduled to be repaid in sixty-one months or	283
less, the applicable charge for any installment period is that	284
proportion of the total interest contracted for, as the balance	285
scheduled to be outstanding during that period bears to the sum of	286
all of the periodic balances, all determined according to the	287
payment schedule originally contracted for. In all other cases,	288
the applicable charge for any installment period is that which	289
would have been made for such period had the loan been made on an	290
interest-bearing basis, based upon the assumption that all	291
payments were made according to schedule.	292

(J) "Broker" means a person who acts as an intermediary or	293
agent in finding, arranging, or negotiating loans, other than	294
residential mortgage loans, and charges or receives a fee for	295
these services.	296

(K) "Annual percentage rate" means the ratio of the interest	297
on a loan to the unpaid principal balances on the loan for any	298
period of time, expressed on an annual basis.	299

(L) "Point" means a charge equal to one per cent of either of	300
the following:	301

(1) The principal amount of a precomputed loan or	302
interest-bearing loan;	303

(2) The original credit line of an open-end loan.

304

(M) "Prepayment penalty" means a charge for prepayment of a	305
loan at any time prior to five years from the date the loan	306
contract is executed.	307

(N) "Refinancing" means a loan the proceeds of which are used	308
in whole or in part to pay the unpaid balance of a prior loan made	309
by the same registrant to the same borrower under sections 1321.51	310
to 1321.60 of the Revised Code.	311

(O) "Superintendent of financial institutions" includes the	312
deputy superintendent for consumer finance as provided in section	313
1181.21 of the Revised Code.	314

(P)(1) "Mortgage loan originator" means an individual who for	315
compensation or gain, or in anticipation of compensation or gain,	316
does any of the following:	317

(a) Takes or offers to take a residential mortgage loan	318
application;	319

(b) Assists or offers to assist a borrower in obtaining or	320
applying to obtain a residential mortgage loan by, among other	321
things, advising on loan terms, including rates, fees, and other	322
costs;	323

(c) Offers or negotiates terms of a residential mortgage	324
loan;	325

(d) Issues or offers to issue a commitment for a residential	326
mortgage loan to a borrower.	327

(2) "Mortgage loan originator" does not include any of the	328
following:	329

(a) An individual who performs purely administrative or	330
clerical tasks on behalf of a mortgage loan originator;	331

(b) A person licensed pursuant to Chapter 4735. of the	332
Revised Code, or under the similar law of another state, who	333
performs only real estate brokerage activities permitted by that	334
license, provided the person is not compensated by a mortgage	335
lender, mortgage broker, mortgage loan originator, or by any agent	336
thereof;	337

(c) A person solely involved in extensions of credit relating	338
to timeshare plans, as that term is defined in 11 U.S.C. 101, in	339
effect on January 1, 2009;	340

(d) A person acting solely as a loan processor or	341
underwriter, who does not represent to the public, through	342
advertising or other means of communicating, including the use of	343
business cards, stationery, brochures, signs, rate lists, or other	344
promotional items, that the person can or will perform any of the	345
activities of a mortgage loan originator;	346

(e) A loan originator licensed under sections 1322.01 to	347
1322.12 of the Revised Code, when acting solely under that	348
authority;	349

(f) A licensed attorney who negotiates the terms of a	350
residential mortgage loan on behalf of a client as an ancillary	351
matter to the attorney's representation of the client, unless the	352
attorney is compensated by a lender, a mortgage broker, or another	353
mortgage loan originator, or by any agent thereof;	354

(g) Any person engaged in the retail sale of manufactured	355
homes, mobile homes, or industrialized units if, in connection	356
with financing those retail sales, the person only assists the	357
borrower by providing or transmitting the loan application and	358
does not do any of the following:	359

(i) Offer or negotiate the residential mortgage loan rates or	360
terms;	361

(ii) Provide any counseling with borrowers about residential	362
mortgage loan rates or terms;	363

(iii) Receive any payment or fee from any company or	364
individual for assisting the borrower obtain or apply for	365
financing to purchase the manufactured home, mobile home, or	366
industrialized unit;	367

(iv) Assist the borrower in completing the residential	368
mortgage loan application.	369

(3) An individual acting exclusively as a servicer engaging	370
in loss mitigation efforts with respect to existing mortgage	371
transactions shall not be considered a mortgage loan originator	372
for purposes of sections 1321.51 to 1321.60 of the Revised Code	373
until July 1, 2011, unless such delay is denied by the United	374
States department of housing and urban development.	375

(Q) "Residential mortgage loan" means any loan primarily for	376
personal, family, or household use that is secured by a mortgage,	377
deed of trust, or other equivalent consensual security interest on	378
a dwelling or on residential real estate upon which is constructed	379
or intended to be constructed a dwelling. For purposes of this	380
division, "dwelling" has the same meaning as in the "Truth in	381
Lending Act," 82 Stat. 146, 15 U.S.C. 1602.	382

(R) "Nationwide mortgage licensing system and registry" means	383
a mortgage licensing system developed and maintained by the	384
conference of state bank supervisors and the American association	385
of residential mortgage regulators, or their successor entities,	386
for the licensing and registration of mortgage loan originators,	387
or any system established by the secretary of housing and urban	388
development pursuant to the "Secure and Fair Enforcement for	389
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	390

(S) "Registered mortgage loan originator" means an individual	391
to whom both of the following apply:	392

(1) The individual is a mortgage loan originator and an	393
employee of a depository institution, a subsidiary that is owned	394
and controlled by a depository institution and regulated by a	395
federal banking agency, or an institution regulated by the farm	396
credit administration.	397

(2) The individual is registered with, and maintains a unique	398
identifier through, the nationwide mortgage licensing system and	399
registry.	400

(T) "Administrative or clerical tasks" means the receipt,	401
collection, and distribution of information common for the	402
processing or underwriting of a loan in the mortgage industry, and	403
communication with a consumer to obtain information necessary for	404
the processing or underwriting of a residential mortgage loan.	405

(U) "Federal banking agency" means the board of governors of	406
the federal reserve system, the comptroller of the currency, the	407
director of the office of thrift supervision, the national credit	408
union administration, and the federal deposit insurance	409
corporation.	410

(V) "Loan processor or underwriter" means an individual who	411
performs clerical or support duties at the direction of and	412
subject to the supervision and instruction of a licensed mortgage	413
loan originator or registered mortgage loan originator. For	414
purposes of this division, to "perform clerical or support duties"	415
includesmeans to do all of the following activities:	416

(1) The receiptReceiving, collectioncollecting,	417
distributiondistributing, and analysis ofanalyzing information	418
common for the processing or underwriting of a residential	419
mortgage loan;	420

(2) Communicating with a borrower to obtain the information	421
necessary for the processing or underwriting of a loan, to the	422
extent the communication does not include offering or negotiating	423
loan rates or terms or counseling borrowers about residential	424
mortgage loan rates or terms.	425

(W) "Real estate brokerage activity" means any activity that	426
involves offering or providing real estate brokerage services to	427
the public, including all of the following:	428

(1) Acting as a real estate agent or real estate broker for a	429
buyer, seller, lessor, or lessee of real property;	430

(2) Bringing together parties interested in the sale,	431
purchase, lease, rental, or exchange of real property;	432

(3) Negotiating, on behalf of any party, any portion of a	433
contract relating to the sale, purchase, lease, rental, or	434
exchange of real property, other than in connection with providing	435
financing for any such transaction;	436

(4) Engaging in any activity for which a person engaged in	437
that activity is required to be registered or licensed as a real	438
estate agent or real estate broker under any applicable law;	439

(5) Offering to engage in any activity, or to act in any	440
capacity, described in division (W) of this section.	441

(X) "Licensee" means any person that has been issued a	442
mortgage loan originator license under sections 1321.51 to 1321.60	443
of the Revised Code.	444

(Y) "Unique identifier" means a number or other identifier	445
that permanently identifies a mortgage loan originator and is	446
assigned by protocols established by the nationwide mortgage	447
licensing system and registry or federal banking agencies to	448
facilitate electronic tracking of mortgage loan originators and	449
uniform identification of, and public access to, the employment	450
history of and the publicly adjudicated disciplinary and	451
enforcement actions against mortgage loan originators.	452

(Z) "State" in the context of referring to states in addition	453
to Ohio means any state of the United States, the district of	454
Columbia, any territory of the United States, Puerto Rico, Guam,	455
American Samoa, the trust territory of the Pacific islands, the	456
virgin islands, and the northern Mariana islands.	457

(AA) "Depository institution" has the same meaning as in	458
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12	459
U.S.C. 1813, and includes any credit union.	460

(BB) "Bona fide third party" means a person that is not an	461
employee of, related to, or affiliated with, the registrant, and	462
that is not used for the purpose of circumvention or evasion of	463
sections 1321.51 to 1321.60 of the Revised Code.	464

(CC) "Nontraditional mortgage product" means any mortgage	465
product other than a thirty-year fixed rate mortgage.	466

(DD) "Employee" means an individual for whom a registrant or	467
applicant, in addition to providing a wage or salary, pays social	468
security and unemployment taxes, provides workers' compensation	469
coverage, and withholds local, state, and federal income taxes.	470
"Employee" also includes any individual who acts as a mortgage	471
loan originator or operations manager of the registrant, but for	472
whom the registrant is prevented by law from making income tax	473
withholdings.	474

(EE) "Primary point of contact" means the employee or owner	475
designated by the registrant or applicant to be the individual who	476
the division of financial institutions can contact regarding	477
compliance or licensing matters relating to the registrant's or	478
applicant's business or lending activities secured by an interest	479
in real estate.	480

(FF) "Consumer reporting agency" has the same meaning as in	481
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C. 1681a,	482
as amended.	483

(GG) "Mortgage broker" has the same meaning as in section	484
1322.01 of the Revised Code.	485

Sec. 1321.522.  (A) A credit union service organization	486
seeking exemption from registration pursuant to division (D)(6) of	487
section 1321.53 of the Revised Code shall submit an application to	488
the superintendent of financial institutions along with a	489
nonrefundable fee of three hundred fifty dollars for each location	490
of an office to be maintained by the organization. The application	491
shall be in a form prescribed by the superintendent and shall	492
include all of the following:	493

(1) The organization's business name and state of	494
incorporation;	495

(2) The names of the owners, officers, or partners having	496
control of the organization;	497

(3) An attestation to all of the following:

498

(a) That the organization and its owners, officers, or	499
partners identified in division (A)(2) of this section have not	500
had a mortgage lender certificate of registration or mortgage loan	501
originator license, or any comparable authority, revoked in any	502
governmental jurisdiction;	503

(b) That the organization and its owners, officers, or	504
partners identified in division (A)(2) of this section have not	505
been convicted of, or pleaded guilty or nolo contendere to, any of	506
the following in a domestic, foreign, or military court:	507

(i) During the seven-year period immediately preceding the	508
date of application for exemption, any felony or a misdemeanor	509
involving theft or any felony;	510

(ii) At any time prior to the date of application for	511
exemption, a felony involving an act of fraud, dishonesty, a	512
breach of trust, theft, or money laundering.	513

(c) That, with respect to financing residential mortgage	514
loans, the organization conducts business with residents of this	515
state or secures its loans with property located in this state.	516

(4) The names of all mortgage loan originators or licensees	517
under the organization's control and direction;	518

(5) An acknowledgment of understanding that the organization	519
is subject to the regulatory authority of the division of	520
financial institutions;	521

(6) Any further information that the superintendent may	522
require.	523

(B)(1) If the superintendent determines that the credit union	524
service organization honestly made the attestation required under	525
division (A)(3) of this section and otherwise qualifies for	526
exemption, the superintendent shall issue a letter of exemption.	527
Additional certified copies of a letter of exemption shall be	528
provided upon request and the payment of seventy-five dollars per	529
copy.	530

(2) If the superintendent determines that the organization	531
does not qualify for exemption, the superintendent shall issue a	532
notice of denial, and the organization may request a hearing in	533
accordance with Chapter 119. of the Revised Code.	534

(C) All of the following conditions apply to any credit union	535
service organization holding a valid letter of exemption:	536

(1) The organization shall be subject to examination in the	537
same manner as a registrant with respect to the conduct of the	538
organization's mortgage loan originators. In conducting any	539
out-of-state examination, the organization shall be responsible	540
for paying the costs of the division in the same manner as a	541
registrant.	542

(2) The organization shall have an affirmative duty to	543
supervise the conduct of its mortgage loan originators, and to	544
cooperate with investigations by the division with respect to that	545
conduct, in the same manner as is required of registrants.	546

(3) The organization shall keep and maintain records of all	547
transactions relating to the conduct of its mortgage loan	548
originators in the same manner as is required of registrants.	549

(4) The organization may provide the surety bond for its	550
mortgage loan originators in the same manner as is permitted for	551
registrants.	552

(D) A letter of exemption expires annually on the	553
thirty-first day of December and may be renewed on or before that	554
date by submitting an application that meets the requirements of	555
division (A) of this section and a nonrefundable renewal fee of	556
three hundred fifty dollars for each location of an office to be	557
maintained by the credit union service organization.	558

(E) The superintendent may issue a notice to revoke or	559
suspend a letter of exemption if the superintendent finds that the	560
letter was obtained through a false or fraudulent representation	561
of a material fact, or the omission of a material fact, required	562
by law, or that a condition for exemption is no longer being met.	563
Prior to issuing an order of revocation or suspension, the credit	564
union service organization shall be given an opportunity for a	565
hearing in accordance with Chapter 119. of the Revised Code.	566

(F) All information obtained by the division pursuant to an	567
examination or investigation under this section shall be subject	568
to the confidentiality requirements set forth in section 1321.55	569
of the Revised Code.	570

(G) All money collected under this section shall be deposited	571
into the state treasury to the credit of the consumer finance fund	572
created in section 1321.21 of the Revised Code.	573

Sec. 1321.53.  (A)(1) An application for a certificate of	574
registration under sections 1321.51 to 1321.60 of the Revised Code	575
shall contain an undertaking by the applicant to abide by those	576
sections. The application shall be in writing, under oath, and in	577
the form prescribed by the division of financial institutions, and	578
shall contain any information that the division may require.	579
Applicants that are foreign corporations shall obtain and maintain	580
a license pursuant to Chapter 1703. of the Revised Code before a	581
certificate is issued or renewed.	582

(2) Upon the filing of the application and the payment by the	583
applicant of a nonrefundable two hundred dollar investigation fee,	584
a nonrefundable three hundred dollar annual registration fee, and	585
any additional fee required by the nationwide mortgage licensing	586
system and registry, the division shall investigate the relevant	587
facts. If the application involves investigation outside this	588
state, the applicant may be required by the division to advance	589
sufficient funds to pay any of the actual expenses of such	590
investigation, when it appears that these expenses will exceed two	591
hundred dollars. An itemized statement of any of these expenses	592
which the applicant is required to pay shall be furnished to the	593
applicant by the division. No certificate shall be issued unless	594
all the required fees have been submitted to the division.	595

(3) All applicants making loans secured by an interest in	596
real estate shall designate an employee or owner of the applicant	597
as the applicant's primary point of contact. While acting as the	598
primary point of contact, the employee or owner shall not be	599
employed by any other registrant or mortgage broker.	600

(4) The investigation undertaken upon application shall	601
include both a civil and criminal records check of the applicant	602
including any individual whose identity is required to be	603
disclosed in the application. Where the applicant is a business	604
entity the superintendent shall have the authority to require a	605
civil and criminal background check of those persons that in the	606
determination of the superintendent have the authority to direct	607
and control the operations of the applicant.	608

(5)(a) Notwithstanding division (K) of section 121.08 of the	609
Revised Code, the superintendent of financial institutions shall	610
obtain a criminal history records check and, as part of that	611
records check, request that criminal record information from the	612
federal bureau of investigation be obtained. To fulfill this	613
requirement, the superintendent shall do either of the following:	614

(i) Request the superintendent of the bureau of criminal	615
identification and investigation, or a vendor approved by the	616
bureau, to conduct a criminal records check based on the	617
applicant's fingerprints or, if the fingerprints are unreadable,	618
based on the applicant's social security number, in accordance	619
with division (A)(12) of section 109.572 of the Revised Code;	620

(ii) Authorize the nationwide mortgage licensing system and	621
registry to request a criminal history background check as set	622
forth in division (C) of section 1321.531 of the Revised Code.	623

(b) Any fee required under division (C)(3) of section 109.572	624
of the Revised Code or by the nationwide mortgage licensing system	625
and registry shall be paid by the applicant.	626

(6) If an application for a certificate of registration does	627
not contain all of the information required under division (A) of	628
this section, and if such information is not submitted to the	629
division or to the nationwide mortgage licensing system and	630
registry within ninety days after the superintendent or the	631
nationwide mortgage licensing system and registry requests the	632
information in writing, including by electronic transmission or	633
facsimile, the superintendent may consider the application	634
withdrawn.	635

(7) If the division finds that the financial responsibility,	636
experience, character, and general fitness of the applicant	637
command the confidence of the public and warrant the belief that	638
the business will be operated honestly and fairly in compliance	639
with the purposes of sections 1321.51 to 1321.60 of the Revised	640
Code and the rules adopted thereunder, and that the applicant has	641
the requisite bond or applicable net worth and assets required by	642
division (B) of this section, the division shall thereupon issue a	643
certificate of registration to the applicant. The superintendent	644
shall not use a credit score as the sole basis for a registration	645
denial.	646

(a)(i) Certificates of registration issued on or after July	647
1, 2010, shall annually expire on the thirty-first day of	648
December, unless renewed by the filing of a renewal application	649
and payment of a three hundred dollar nonrefundable annual	650
registration fee, any assessment as determined by the	651
superintendent pursuant to division (A)(7)(a)(ii) of this section,	652
and any additional fee required by the nationwide mortgage	653
licensing system and registry, on or before the last day of	654
December of each year. No other fee or assessment shall be	655
required of a registrant by the state or any political subdivision	656
of this state.	657

(ii) If the renewal fees billed by the superintendent	658
pursuant to division (A)(7)(a)(i) of this section are less than	659
the estimated expenditures of the consumer finance section of the	660
division of financial institutions, as determined by the	661
superintendent, for the following fiscal year, the superintendent	662
may assess each registrant at a rate sufficient to equal in the	663
aggregate the difference between the renewal fees billed and the	664
estimated expenditures. Each registrant shall pay the assessed	665
amount to the superintendent prior to the last day of June. In no	666
case shall the assessment exceed ten cents per each one hundred	667
dollars of interest (excluding charge-off recoveries), points,	668
loan origination charges, and credit line charges collected by	669
that registrant during the previous calendar year. If such an	670
assessment is imposed, it shall not be less than two hundred fifty	671
dollars per registrant and shall not exceed thirty thousand	672
dollars less the total renewal fees paid pursuant to division	673
(A)(7)(a)(i) of this section by each registrant.	674

(b) Registrants shall timely file renewal applications on	675
forms prescribed by the division and provide any further	676
information that the division may require. If a renewal	677
application does not contain all of the information required under	678
this section, and if that information is not submitted to the	679
division or to the nationwide mortgage licensing system and	680
registry within ninety days after the superintendent or the	681
nationwide mortgage licensing system and registry requests the	682
information in writing, including by electronic transmission or	683
facsimile, the superintendent may consider the application	684
withdrawn.	685

(c) Renewal shall not be granted if the applicant's	686
certificate of registration is subject to an order of suspension,	687
revocation, or an unpaid and past due fine imposed by the	688
superintendent.	689

(d) If the division finds the applicant does not meet the	690
conditions set forth in this section, it shall issue a notice of	691
intent to deny the application, and forthwith notify the applicant	692
of the denial, the grounds for the denial, and the applicant's	693
reasonable opportunity to be heard on the action in accordance	694
with Chapter 119. of the Revised Code.	695

(8) If there is a change of five per cent or more in the	696
ownership of a registrant, the division may make any investigation	697
necessary to determine whether any fact or condition exists that,	698
if it had existed at the time of the original application for a	699
certificate of registration, the fact or condition would have	700
warranted the division to deny the application under division	701
(A)(7) of this section. If such a fact or condition is found, the	702
division may, in accordance with Chapter 119. of the Revised Code,	703
revoke the registrant's certificate.	704

(B) Each registrant that engages in lending under sections	705
1321.51 to 1321.60 of the Revised Code shall, if not otherwise	706
required to be bonded pursuant to section 1321.533 of the Revised	707
Code, maintain both of the following:	708

(1) A net worth of at least fifty thousand dollars;

709

(2) For each certificate of registration, assets of at least	710
fifty thousand dollars either in use or readily available for use	711
in the conduct of the business.	712

(C) Not more than one place of business shall be maintained	713
under the same certificate, but the division may issue additional	714
certificates to the same registrant upon compliance with sections	715
1321.51 to 1321.60 of the Revised Code, governing the issuance of	716
a single certificate. No change in the place of business of a	717
registrant to a location outside the original municipal	718
corporation shall be permitted under the same certificate without	719
the approval of a new application, the payment of the registration	720
fee and, if required by the superintendent, the payment of an	721
investigation fee of two hundred dollars. When a registrant wishes	722
to change its place of business within the same municipal	723
corporation, it shall give written notice of the change in advance	724
to the division, which shall provide a certificate for the new	725
address without cost. If a registrant changes its name, prior to	726
making loans under the new name it shall give written notice of	727
the change to the division, which shall provide a certificate in	728
the new name without cost. Sections 1321.51 to 1321.60 of the	729
Revised Code do not limit the loans of any registrant to residents	730
of the community in which the registrant's place of business is	731
situated. Each certificate shall be kept conspicuously posted in	732
the place of business of the registrant and is not transferable or	733
assignable.	734

(D) Sections 1321.51 to 1321.60 of the Revised Code do not	735
apply to any of the following:	736

(1) Entities chartered and lawfully doing business under the	737
authority of any law of this state, another state, or the United	738
States as a bank, savings bank, trust company, savings and loan	739
association, or credit union, or a subsidiary of any such entity,	740
which subsidiary is regulated by a federal banking agency and is	741
owned and controlled by such a depository institution;	742

(2) Life, property, or casualty insurance companies licensed	743
to do business in this state;	744

(3) Any person that is a lender making a loan pursuant to	745
sections 1321.01 to 1321.19 of the Revised Code or a business loan	746
as described in division (B)(6) of section 1343.01 of the Revised	747
Code;	748

(4) Any political subdivision, or any governmental or other	749
public entity, corporation, instrumentality, or agency, in or of	750
the United States or any state of the United States, or any entity	751
described in division (B)(3) of section 1343.01 of the Revised	752
Code;	753

(5) A college or university, or controlled entity of a	754
college or university, as those terms are defined in section	755
1713.05 of the Revised Code;	756

(6) A credit union service organization, provided the	757
organization utilizes services provided by registered mortgage	758
loan originators or the organization complies with section	759
1321.522 of the Revised Code and holds a valid letter of exemption	760
issued by the superintendent.	761

(E) No person engaged in the business of selling tangible	762
goods or services related to tangible goods may receive or retain	763
a certificate under sections 1321.51 to 1321.60 of the Revised	764
Code for such place of business.	765

Sec. 1321.531. (A) An application for a mortgage loan	766
originator license shall be in writing, under oath, and in the	767
form prescribed by the superintendent of financial institutions.	768
The application shall be accompanied by a nonrefundable	769
application fee of one hundred fifty dollars and all other	770
required fees, including any fees required by the nationwide	771
mortgage licensing system and registry.	772

(B) The superintendent may establish relationships or enter	773
into contracts with the nationwide mortgage licensing system and	774
registry, or any entities designated by it, to collect and	775
maintain records and process transaction fees or other fees	776
related to mortgage loan originator licensees or other persons	777
subject to or involved in their licensure.	778

(C) In connection with applying for a mortgage loan	779
originator license, the applicant shall furnish to the nationwide	780
mortgage licensing system and registry the following information	781
concerning the applicant's identity:	782

(1) The applicant's fingerprints for submission to the	783
federal bureau of investigation, and any other governmental agency	784
or entity authorized to receive such information, for purposes of	785
a state, national, and international criminal history background	786
check;	787

(2) Personal history and experience in a form prescribed by	788
the nationwide mortgage licensing system and registry, along with	789
authorization for the superintendent and the nationwide mortgage	790
licensing system and registry to obtain the following:	791

(a) An independent credit report from a consumer reporting	792
agency;	793

(b) Information related to any administrative, civil, or	794
criminal findings by any governmental jurisdiction.	795

(D) In order to effectuate the purposes of divisions (C)(1)	796
and (C)(2)(b) of this section, the superintendent may use the	797
conference of state bank supervisors, or a wholly owned	798
subsidiary, as a channeling agent for requesting information from	799
and distributing information to the United States department of	800
justice or any other governmental agency. The superintendent may	801
also use the nationwide mortgage licensing system and registry as	802
a channeling agent for requesting information from and	803
distributing information to any source related to matters subject	804
to divisions (C)(2)(a) and (b) of this section.	805

(E) Upon the filing of the application, payment of the	806
application fee, and payment of any additional fee, including any	807
fee required by the nationwide mortgage licensing system and	808
registry, the superintendent shall investigate the applicant as	809
set forth in division (E) of this section.	810

(1)(a) Notwithstanding division (K) of section 121.08 of the	811
Revised Code, the superintendent shall obtain a criminal history	812
records check and, as part of that records check, request that	813
criminal record information from the federal bureau of	814
investigation be obtained. To fulfill this requirement, the	815
superintendent shall do either of the following:	816

(i) Request the superintendent of the bureau of criminal	817
identification and investigation, or a vendor approved by the	818
bureau, to conduct a criminal records check based on the	819
applicant's fingerprints or, if the fingerprints are unreadable,	820
based on the applicant's social security number in accordance with	821
division (A)(12) of section 109.572 of the Revised Code;	822

(ii) Authorize the nationwide mortgage licensing system and	823
registry to request a criminal history background check as set	824
forth in division (C) of this section.	825

(b) Any fee required under division (C)(3) of section 109.572	826
of the Revised Code or by the nationwide mortgage licensing system	827
and registry shall be paid by the applicant.	828

(2) The superintendent of financial institutions shall	829
conduct a civil records check.	830

(3) If, in order to issue a license to an applicant,	831
additional investigation by the superintendent outside this state	832
is necessary, the superintendent may require the applicant to	833
advance sufficient funds to pay the actual expenses of the	834
investigation, if it appears that these expenses will exceed one	835
hundred dollars. The superintendent shall provide the applicant	836
with an itemized statement of the actual expenses that the	837
applicant is required to pay.	838

(F) If an application for a mortgage loan originator license	839
does not contain all of the information required under this	840
section, and if that information is not submitted to the	841
superintendent or to the nationwide mortgage licensing system and	842
registry within ninety days after the superintendent or the	843
nationwide mortgage licensing system and registry requests the	844
information in writing, including by electronic transmission or	845
facsimile, the superintendent may consider the application	846
withdrawn.	847

Sec. 1321.532. (A) Upon the conclusion of the investigation	848
required under division (E) of section 1321.531 of the Revised	849
Code, the superintendent of financial institutions shall issue a	850
mortgage loan originator license to the applicant if the	851
superintendent finds that all of the following conditions are met:	852

(1) The application is accompanied by the application fee and	853
any additional fee required by the nationwide mortgage licensing	854
system and registry.	855

If a check or other draft instrument is returned to the	856
superintendent for insufficient funds, the superintendent shall	857
notify the licensee by certified mail, return receipt requested,	858
that the license issued in reliance on the check or other draft	859
instrument will be canceled unless the licensee, within thirty	860
days after receipt of the notice, submits the application fee and	861
a one-hundred-dollar penalty to the superintendent. If the	862
licensee does not submit the application fee and penalty within	863
that time period, or if any check or other draft instrument used	864
to pay the fee or penalty is returned to the superintendent for	865
insufficient funds, the license shall be canceled immediately	866
without a hearing, and the licensee shall cease activity as a	867
mortgage loan originator.	868

(2) The applicant complies with sections 1321.51 to 1321.60	869
of the Revised Code.	870

(3) The applicant has not had a mortgage loan originator	871
license, or comparable authority, revoked in any governmental	872
jurisdiction.	873

(4) The applicant has not been convicted of, or pleaded	874
guilty or nolo contendere to, any of the following in a domestic,	875
foreign, or military court:	876

(a) During the seven-year period immediately preceding the	877
date of application for licensure, any felony or a misdemeanor	878
involving theft or any felony;	879

(b) At any time prior to the date of application for	880
licensure, a felony involving an act of fraud, dishonesty, a	881
breach of trust, theft, or money laundering.	882

(5) Based on the totality of the circumstances and	883
information submitted in the application, the applicant has proven	884
to the division of financial institutions, by a preponderance of	885
the evidence, that the applicant is of good business repute,	886
appears qualified to act as a mortgage loan originator, and has	887
fully complied with sections 1321.51 to 1321.60 of the Revised	888
Code and rules adopted thereunder, and that the applicant meets	889
all of the conditions for issuing a mortgage loan originator	890
license.	891

(6) The applicant successfully completed the written test	892
required under section 1321.535 of the Revised Code and the	893
education requirements set forth in section 1321.534 of the	894
Revised Code.	895

(7) The applicant is covered under a valid bond in compliance	896
with section 1321.533 of the Revised Code.	897

(8) The applicant's financial responsibility, character, and	898
general fitness command the confidence of the public and warrant	899
the belief that the mortgage loan originator will operate honestly	900
and fairly in compliance with the purposes of sections 1321.51 to	901
1321.60 of the Revised Code. The superintendent shall not use a	902
credit score as the sole basis for a license denial.	903

(B) The license issued under division (A) of this section may	904
be renewed annually on or before the thirty-first day of December	905
if the superintendent finds that all of the following conditions	906
are met:	907

(1) The renewal application is accompanied by a nonrefundable	908
renewal fee of one hundred fifty dollars, and any additional fee	909
required by the nationwide mortgage licensing system and registry.	910
If a check or other draft instrument is returned to the	911
superintendent for insufficient funds, the superintendent shall	912
notify the licensee by certified mail, return receipt requested,	913
that the license renewed in reliance on the check or other draft	914
instrument will be canceled unless the licensee, within thirty	915
days after receipt of the notice, submits the renewal fee and a	916
one-hundred-dollar penalty to the superintendent. If the licensee	917
does not submit the renewal fee and penalty within that time	918
period, or if any check or other draft instrument used to pay the	919
fee or penalty is returned to the superintendent for insufficient	920
funds, the license shall be canceled immediately without a	921
hearing, and the licensee shall cease activity as a mortgage loan	922
originator.	923

(2) The applicant has completed at least eight hours of	924
continuing education as required under section 1321.536 of the	925
Revised Code.	926

(3) The applicant meets the conditions set forth in divisions	927
(A)(2) to (8) of this section.	928

(4) The applicant's license is not subject to an order of	929
suspension or an unpaid and past due fine imposed by the	930
superintendent.	931

(C)(1) Subject to division (C)(2) of this section, if a	932
license renewal application or fee, including any additional fee	933
required by nationwide mortgage licensing system and registry, is	934
received by the superintendent after the thirty-first day of	935
December, the license shall not be considered renewed, and the	936
applicant shall cease activity as a mortgage loan originator.	937

(2) Division (C)(1) of this section shall not apply if the	938
applicant, no later than the thirty-first day of January, submits	939
the renewal application and fee, including any additional fee	940
required by nationwide mortgage licensing system and registry, and	941
a one-hundred-dollar penalty to the superintendent.	942

(D) Mortgage loan originator licenses issued on or after July	943
1, 2010, shall annually expire on the thirty-first day of	944
December.	945

(E) If a renewal application does not contain all of the	946
information required under this section, and if that information	947
is not submitted to the superintendent or to the nationwide	948
mortgage licensing system and registry within ninety days after	949
the superintendent or the nationwide mortgage licensing system and	950
registry requests the information in writing, including by	951
electronic transmission or facsimile, the superintendent may	952
consider the application withdrawn.	953

Sec. 1321.533.  (A)(1) A registrant engaged in residential	954
mortgage loan activity shall not conduct business in this state,	955
unless the registrant maintains the net worth and assets required	956
under division (B) of section 1321.53 of the Revised Code or has	957
obtained and maintains in effect at all times a corporate surety	958
bond issued by a bonding company or insurance company authorized	959
to do business in this state.	960

(a) The bond shall be in favor of the superintendent of	961
financial institutions.	962

(b) The bond shall be in the penal sum of one-half per cent	963
of the aggregate loan amount of residential mortgage loans	964
originated in the immediately preceding calendar year, but not	965
exceeding one hundred fifty thousand dollars. Under no	966
circumstances, however, shall the bond be less than fifty thousand	967
dollars and an additional penal sum of ten thousand dollars for	968
each location, in excess of one, at which the registrant conducts	969
business.	970

(c) The term of the bond shall coincide with the term of	971
registration.	972

(d) A copy of the bond shall be filed with the	973
superintendent.	974

(e) The bond shall be for the exclusive benefit of any	975
borrower injured by a violation by an employee, licensee, or	976
registrant of any provision of sections 1321.51 to 1321.60 of the	977
Revised Code or the rules adopted thereunder.	978

(f) The aggregate liability of the corporate surety for any	979
and all breaches of the conditions of the bond shall not exceed	980
the penal sum of the bond.	981

(2) An individual licensed as a mortgage loan originator and	982
employed or associated with an exempt entity as set forth in	983
division (D) of section 1321.53 of the Revised Code shall not	984
conduct business in this state, unless either the licensee or the	985
exempt entity on the licensee's behalf has obtained and maintains	986
in effect at all times a corporate surety bond issued by a bonding	987
company or insurance company authorized to do business in this	988
state.	989

(a) The bond shall be in favor of the superintendent.

990

(b) The bond shall be in the penal sum of one-half per cent	991
of the aggregate loan amount of residential mortgage loans	992
originated in the immediately preceding calendar year, but not	993
exceeding one hundred thousand dollars. Under no circumstances,	994
however, shall the bond be less than fifty thousand dollars.	995

(c) The term of the bond shall coincide with the term of	996
licensure.	997

(d) A copy of the bond shall be filed with the	998
superintendent.	999

(e) The bond shall be for the exclusive benefit of any	1000
borrower injured by a violation by the licensee of any provision	1001
of sections 1321.51 to 1321.60 of the Revised Code or the rules	1002
adopted thereunder.	1003

(f) The aggregate liability of the corporate surety for any	1004
and all breaches of the conditions of the bond shall not exceed	1005
the penal sum of the bond.	1006

(g) Licensees covered by a corporate surety bond obtained by	1007
a registrant or exempt entity they are employed by or associated	1008
with shall not be required to obtain an individual bond.	1009

(B)(1) The registrant or licensee shall give notice to the	1010
superintendent by certified mail of any action that is brought by	1011
a borrower against the licensee, registrant, or any mortgage loan	1012
originator of the registrant alleging injury by a violation of any	1013
provision of sections 1321.51 to 1321.60 of the Revised Code, and	1014
of any judgment that is entered against the licensee, registrant,	1015
or mortgage loan originator of the registrant by a borrower	1016
injured by a violation of any provision of sections 1321.51 to	1017
1321.60 of the Revised Code. The notice shall provide details	1018
sufficient to identify the action or judgment, and shall be filed	1019
with the superintendent within ten days after the commencement of	1020
the action or notice to the registrant or licensee of entry of a	1021
judgment. An exempt entity securing bonding for the licensees in	1022
their employ shall report those actions by a borrower in the same	1023
manner as is required of registrants.	1024

(2) A corporate surety, within ten days after it pays any	1025
claim or judgment, shall give notice to the superintendent by	1026
certified mail of the payment, with details sufficient to identify	1027
the person and the claim or judgment paid.	1028

(C) Whenever the penal sum of the corporate surety bond is	1029
reduced by one or more recoveries or payments, the registrant or	1030
separately bonded licensee shall furnish a new or additional bond	1031
under this section, so that the total or aggregate penal sum of	1032
the bond or bonds equals the sum required by this section, or	1033
shall furnish an endorsement executed by the corporate surety	1034
reinstating the bond to the required penal sum of it.	1035

(D) The liability of the corporate surety on the bond to the	1036
superintendent and to any borrower injured by a violation of any	1037
provision of sections 1321.51 to 1321.60 of the Revised Code shall	1038
not be affected in any way by any misrepresentation, breach of	1039
warranty, or failure to pay the premium, by any act or omission	1040
upon the part of the registrant or licensee, by the insolvency or	1041
bankruptcy of the registrant or licensee, or by the insolvency of	1042
the registrant's or licensee's estate. The liability for any act	1043
or omission that occurs during the term of the corporate surety	1044
bond shall be maintained and in effect for at least two years	1045
after the date on which the corporate surety bond is terminated or	1046
canceled.	1047

(E) The corporate surety bond shall not be canceled by the	1048
registrant, the licensee, or the corporate surety except upon	1049
notice to the superintendent by certified mail, return receipt	1050
requested. The cancellation shall not be effective prior to thirty	1051
days after the superintendent receives the notice.	1052

(F) No registrant or licensee shall fail to comply with this	1053
section. Any registrant or licensee that fails to comply with this	1054
section shall cease all mortgage lender or mortgage loan	1055
originator activity in this state until the registrant or licensee	1056
has complied with this section.	1057

Sec. 1321.535.  (A) Each applicant for a mortgage loan	1058
originator license shall submit to a written test that is	1059
developed and approved by the nationwide mortgage licensing system	1060
and registry and administered by a test provider approved by the	1061
nationwide mortgage licensing system and registry based upon	1062
reasonable standards.	1063

(1) The test shall adequately measure the applicant's	1064
knowledge and comprehension in appropriate subject matters,	1065
including ethics and federal and state law related to mortgage	1066
origination, fraud, consumer protection, the nontraditional	1067
mortgage marketplace, and fair lending issues.	1068

(2) An individual shall not be considered to have passed the	1069
test unless the individual achieves a test score of at least	1070
seventy-five per cent correct answers on all questions and at	1071
least seventy-five per cent correct answers on all questions	1072
relating to Ohio mortgage lending laws and the Ohio consumer sales	1073
practices act, Chapter 1345. of the Revised Code, as it applies to	1074
registrants and licensees.	1075

(3) An individual may retake the test three consecutive times	1076
provided the period between taking the tests is at least thirty	1077
days.	1078

(4) After failing three consecutive tests, an individual	1079
shall be required to wait at least six months before taking the	1080
test again.	1081

(5) If a mortgage loan originator fails to maintain a valid	1082
license for a period of five years or longer, the individual shall	1083
be required to retake the test. For this purpose, any time during	1084
which the individual is a registered mortgage loan originator	1085
shall not be taken into account.	1086

(B) Notwithstanding division (A) of this section, if the	1087
nationwide mortgage licensing system and registry fails to have in	1088
place a testing process that meets the criteria set forth in that	1089
division, the superintendent shall require, until that process is	1090
in place, evidence that the mortgage loan originator applicant	1091
passed a written test acceptable to the superintendent.	1092

Sec. 1321.54.  (A) The division of financial institutions may	1093
adopt, in accordance with Chapter 119. of the Revised Code, rules	1094
that are necessary for the enforcement or administration of	1095
sections 1321.51 to 1321.60 of the Revised Code and that are	1096
consistent with those sections and rules to carry out the purposes	1097
of those sections.	1098

(B)(1) The division may, upon written notice to the	1099
registrant or licensee stating the contemplated action, the	1100
grounds for the action, and the registrant's or licensee's	1101
reasonable opportunity to be heard on the action in accordance	1102
with Chapter 119. of the Revised Code, revoke, suspend, or refuse	1103
to renew any certificate or license issued under sections 1321.51	1104
to 1321.60 of the Revised Code if it finds any of the following:	1105

(a) A violation of or failure to comply with any provision of	1106
sections 1321.51 to 1321.60 of the Revised Code or the rules	1107
adopted thereunder, any federal lending law, or any other law	1108
applicable to the business conducted under a certificate of	1109
registration or license;	1110

(b) The person has been convicted of or pleaded guilty or	1111
nolo contendere to any criminal felony offense in a domestic,	1112
foreign, or military court;	1113

(c) The person has been convicted of or pleaded guilty or	1114
nolo contendere to any criminal offense involving theft, receiving	1115
stolen property, embezzlement, forgery, fraud, passing bad checks,	1116
money laundering, breach of trust, dishonesty, or drug	1117
trafficking, or any criminal offense involving money or	1118
securities, in a domestic, foreign, or military court;	1119

(d) The person's mortgage lender certificate of registration	1120
or mortgage loan originator license, or comparable authority, has	1121
been revoked in any governmental jurisdiction.	1122

(2) In addition to, or in lieu of, any revocation,	1123
suspension, or denial, the division may impose a monetary fine	1124
after administrative hearing or in settlement of matters subject	1125
to claims under division (B)(1)(a) of this section.	1126

(3) Subject to division (D)(3) of section 1321.52 of the	1127
Revised Code, the revocation, suspension, or refusal to renew	1128
shall not impair the obligation of any pre-existing lawful	1129
contract made under sections 1321.51 to 1321.60 of the Revised	1130
Code; provided, however, that a prior registrant shall make good	1131
faith efforts to promptly transfer the registrant's collection	1132
rights to another registrant or person exempt from registration,	1133
or be subject to additional monetary fines and legal or	1134
administrative action by the division. Nothing in division (B)(3)	1135
of this section shall limit a court's ability to impose a cease	1136
and desist order preventing any further business or servicing	1137
activity.	1138

(C)(1) The superintendent of financial institutions may	1139
impose a fine for a violation of sections 1321.51 to 1321.60 of	1140
the Revised Code or any rule adopted thereunder. All fines	1141
collected pursuant to this section shall be paid to the treasurer	1142
of state to the credit of the consumer finance fund created in	1143
section 1321.21 of the Revised Code. In determining the amount of	1144
a fine to be imposed pursuant to this section, the superintendent	1145
may consider all of the following to the extent it is known to the	1146
division of financial institutions:	1147

(a) The seriousness of the violation;

1148

(b) The registrant's or licensee's good faith efforts to	1149
prevent the violation;	1150

(c) The registrant's or licensee's history regarding	1151
violations and compliance with division orders;	1152

(d) The registrant's or licensee's financial resources;

1153

(e) Any other matters the superintendent considers	1154
appropriate in enforcing sections 1321.51 to 1321.60 of the	1155
Revised Code.	1156

(2) Monetary fines imposed under this division shall not	1157
exceed twenty-five thousand dollars and do not preclude any	1158
criminal fine imposed pursuant to section 1321.99 of the Revised	1159
Code.	1160

(D) The superintendent may investigate alleged violations of	1161
sections 1321.51 to 1321.60 of the Revised Code, or the rules	1162
adopted thereunder, or complaints concerning any such violation.	1163
The superintendent may make application to the court of common	1164
pleas for an order enjoining any violation and, upon a showing by	1165
the superintendent that a person has committed, or is about to	1166
commit, a violation, the court shall grant an injunction,	1167
restraining order, or other appropriate relief. The	1168
superintendent, in making application to the court of common pleas	1169
for an order enjoining a person from acting as a registrant or	1170
mortgage loan originator in violation of division (A) or (E) of	1171
section 1321.52 of the Revised Code, may also seek and obtain	1172
civil penalties for that unregistered or unlicensed conduct in an	1173
amount not to exceed five thousand dollars per violation.	1174

(E) In conducting an investigation pursuant to this section,	1175
the superintendent may compel, by subpoena, witnesses to testify	1176
in relation to any matter over which the superintendent has	1177
jurisdiction, and may require the production or photocopying of	1178
any book, record, or other document pertaining to such matter. If	1179
a person fails to file any statement or report, obey any subpoena,	1180
give testimony, produce any book, record, or other document as	1181
required by such a subpoena, or permit photocopying of any book,	1182
record, or other document subpoenaed, the court of common pleas of	1183
any county in this state, upon application made to it by the	1184
superintendent, shall compel obedience by attachment proceedings	1185
for contempt, as in the case of disobedience of the requirements	1186
of a subpoena issued from the court, or a refusal to testify	1187
therein.	1188

(F) If the superintendent determines that a person is engaged	1189
in, or is believed to be engaged in, activities that may	1190
constitute a violation of sections 1321.51 to 1321.60 of the	1191
Revised Code or the rules adopted thereunder, the superintendent	1192
may, after notice and a hearing conducted in accordance with	1193
Chapter 119. of the Revised Code, issue a cease and desist order.	1194
The superintendent, in taking administrative action to enjoin a	1195
person from acting as a registrant or mortgage loan originator in	1196
violation of division (A) or (E) of section 1321.52 of the Revised	1197
Code, may also seek and impose fines for those violations in an	1198
amount not to exceed five thousand dollars per violation. Such an	1199
order shall be enforceable in the court of common pleas.	1200

(G) The superintendent shall regularly report violations of	1201
sections 1321.51 to 1321.60 of the Revised Code, as well as	1202
enforcement actions and other relevant information, to the	1203
nationwide mortgage licensing system and registry pursuant to	1204
division (E) of section 1321.55 of the Revised Code.	1205

(H)(1) To protect the public interest, the superintendent	1206
may, without a prior hearing, do any of the following:	1207

(a) Suspend the certificate of registration or license of a	1208
person who is convicted of or pleads guilty or nolo contendere to	1209
a criminal violation of sections 1321.51 to 1321.60 of the Revised	1210
Code or any criminal offense described in division (B)(1)(b) or	1211
(c) of this section;	1212

(b) Suspend the certificate of registration or license of a	1213
person who violates division (F) of section 1321.533 of the	1214
Revised Code;	1215

(c) Suspend the certificate of registration or license of a	1216
person who fails to comply with a request made by the	1217
superintendent under this section or section 1321.55 of the	1218
Revised Code to inspect qualifying education transcripts located	1219
at the registrant's or licensee's place of business.	1220

(2) The superintendent may, in accordance with Chapter 119.	1221
of the Revised Code, subsequently revoke any registration or	1222
license suspended under division (H)(1) of this section.	1223

(3) The superintendent shall, in accordance with Chapter 119.	1224
of the Revised Code, adopt rules establishing the maximum amount	1225
of time a suspension under division (H)(1) of this section may	1226
continue before a hearing is conducted.	1227

Sec. 1321.55.  (A) Every registrant shall keep records	1228
pertaining to loans made under sections 1321.51 to 1321.60 of the	1229
Revised Code. Such records shall be segregated from records	1230
pertaining to transactions that are not subject to these sections	1231
of the Revised Code. Every registrant shall preserve records	1232
pertaining to loans made under sections 1321.51 to 1321.60 of the	1233
Revised Code for at least two years after making the final entry	1234
on such records. Accounting systems maintained in whole or in part	1235
by mechanical or electronic data processing methods that provide	1236
information equivalent to that otherwise required are acceptable	1237
for this purpose. At least once each eighteen-month cycle, the	1238
division of financial institutions shall make or cause to be made	1239
an examination of records pertaining to loans made under sections	1240
1321.51 to 1321.60 of the Revised Code, for the purpose of	1241
determining whether the registrant is complying with these	1242
sections and of verifying the registrant's annual report.	1243

(B)(1) As required by the superintendent of financial	1244
institutions, each registrant shall file with the division each	1245
year a report under oath or affirmation, on forms supplied by the	1246
division, concerning the business and operations for the preceding	1247
calendar year. Whenever a registrant operates two or more	1248
registered offices or whenever two or more affiliated registrants	1249
operate registered offices, then a composite report of the group	1250
of registered offices may be filed in lieu of individual reports.	1251

(2) The division shall publish annually an analysis of the	1252
information required under division (B)(1) of this section, but	1253
the individual reports shall not be public records and shall not	1254
be open to public inspection.	1255

(3) Each mortgage licensee shall submit to the nationwide	1256
mortgage licensing system and registry call reports or other	1257
reports of condition, which shall be in such form and shall	1258
contain such information as the nationwide mortgage licensing	1259
system and registry may require.	1260

(C)(1) The following information is confidential:

1261

(a) Examination information, and any information leading to	1262
or arising from an examination;	1263

(b) Investigation information, and any information arising	1264
from or leading to an investigation.	1265

(2) The information described in division (C)(1) of this	1266
section shall remain confidential for all purposes except when it	1267
is necessary for the superintendent to take official action	1268
regarding the affairs of a registrant or licensee, or in	1269
connection with criminal or civil proceedings to be initiated by a	1270
prosecuting attorney or the attorney general. This information may	1271
also be introduced into evidence or disclosed when and in the	1272
manner authorized by section 1181.25 of the Revised Code.	1273

(D) All application information, except social security	1274
numbers, employer identification numbers, financial account	1275
numbers, the identity of the institution where financial accounts	1276
are maintained, personal financial information, fingerprint cards	1277
and the information contained on such cards, and criminal	1278
background information, is a public record as defined in section	1279
149.43 of the Revised Code.	1280

(E) This section does not prevent the division of financial	1281
institutions from releasing to or exchanging with other financial	1282
institution regulatory authorities information relating to	1283
registrants and licensees. For this purpose, a "financial	1284
institution regulatory authority" includes a regulator of a	1285
business activity in which a registrant or licensee is engaged, or	1286
has applied to engage in, to the extent that the regulator has	1287
jurisdiction over a registrant or licensee engaged in that	1288
business activity. A registrant or licensee is engaged in a	1289
business activity, and a regulator of that business activity has	1290
jurisdiction over the registrant or licensee, whether the	1291
registrant or licensee conducts the activity directly or a	1292
subsidiary or affiliate of the registrant or licensee conducts the	1293
activity.	1294

(1) Any confidentiality or privilege arising under federal or	1295
state law with respect to any information or material provided to	1296
the nationwide mortgage licensing system and registry shall	1297
continue to apply to the information or material after the	1298
information or material has been provided to the nationwide	1299
mortgage licensing system and registry. The information and	1300
material so provided may be shared with all state and federal	1301
regulatory officials with mortgage industry oversight authority	1302
without the loss of confidentiality or privilege protections	1303
provided by federal law or the law of any state. Information or	1304
material described in division (E)(1) of this section to which	1305
confidentiality or privilege applies shall not be subject to any	1306
of the following:	1307

(a) Disclosure under any federal or state law governing	1308
disclosure to the public of information held by an officer or an	1309
agency of the federal government or of the respective state;	1310

(b) Subpoena or discovery, or admission into evidence, in any	1311
private civil action or administrative process, unless the person	1312
to whom such information or material pertains waives, in whole or	1313
in part and at the discretion of the person, any privilege held by	1314
the nationwide mortgage licensing system and registry with respect	1315
to that information or material.	1316

(2) The superintendent, in order to promote more effective	1317
regulation and reduce regulatory burden through supervisory	1318
information sharing, may enter into sharing arrangements with	1319
other governmental agencies, the conference of state bank	1320
supervisors, and the American association of residential mortgage	1321
regulators.	1322

(3) Any state law, including section 149.43 of the Revised	1323
Code, relating to the disclosure of confidential supervisory	1324
information or any information or material described in division	1325
(C)(1) or (E)(1) of this section that is inconsistent with this	1326
section shall be superseded by the requirements of this section.	1327

(F) This section shall not apply with respect to information	1328
or material relating to the employment history of, and publicly	1329
adjudicated disciplinary and enforcement actions against, mortgage	1330
loan originators that is included in the nationwide mortgage	1331
licensing system and registry for access by the public.	1332

(G) This section does not prevent the division from releasing	1333
information relating to registrants and licensees to the attorney	1334
general, to the superintendent of real estate and professional	1335
licensing for purposes relating to the administration of Chapters	1336
4735. and 4763. of the Revised Code, to the superintendent of	1337
insurance for purposes relating to the administration of Chapter	1338
3953. of the Revised Code, to the commissioner of securities for	1339
purposes relating to the administration of Chapter 1707. of the	1340
Revised Code, or to local law enforcement agencies and local	1341
prosecutors. Information the division releases pursuant to this	1342
section remains confidential.	1343

(H) The superintendent of financial institutions shall, by	1344
rule adopted in accordance with Chapter 119. of the Revised Code,	1345
establish a process by which mortgage loan originators may	1346
challenge information provided to the nationwide mortgage	1347
licensing system and registry by the superintendent.	1348

(I) No person, in connection with any examination or	1349
investigation conducted by the superintendent under sections	1350
1321.51 to 1321.60 of the Revised Code, shall knowingly do any of	1351
the following:	1352

(1) Circumvent, interfere with, obstruct, or fail to	1353
cooperate, including making a false or misleading statement,	1354
failing to produce records, or intimidating or suborning any	1355
witness;	1356

(2) Withhold, abstract, remove, mutilate, destroy, or secrete	1357
any books, records, computer records, or other information;	1358

(3) Tamper with, alter, or manufacture any evidence.

1359

Sec. 1321.59.  (A) No registrant under sections 1321.51 to	1360
1321.60 of the Revised Code shall permit any borrower to be	1361
indebted for a loan made under sections 1321.51 to 1321.60 of the	1362
Revised Code at any time while the borrower is also indebted to an	1363
affiliate or agent of the registrant for a loan made under	1364
sections 1321.01 to 1321.19 of the Revised Code for the purpose or	1365
with the result of obtaining greater charges than otherwise would	1366
be permitted by sections 1321.51 to 1321.60 of the Revised Code.	1367

(B) No registrant shall induce or permit any person to become	1368
obligated to the registrant under sections 1321.51 to 1321.60 of	1369
the Revised Code, directly or contingently, or both, under more	1370
than one contract of loan at the same time for the purpose or with	1371
the result of obtaining greater charges than would otherwise be	1372
permitted by sections 1321.51 to 1321.60 of the Revised Code.	1373

(C) No registrant shall refuse to provide information	1374
regarding the amount required to pay in full a loan under sections	1375
1321.51 to 1321.60 of the Revised Code when requested by the	1376
borrower or by another person designated in writing by the	1377
borrower.	1378

(D) On any loan or application for a loan under sections	1379
1321.51 to 1321.60 of the Revised Code secured by a mortgage on a	1380
borrower's real estate which is other than a first lien on the	1381
real estate, no person shall pay or receive, directly or	1382
indirectly, fees or any other type of compensation for services of	1383
a mortgage broker that, in the aggregate, exceed the lesser of one	1384
thousand dollars or one per cent of the principal amount of the	1385
loan.	1386

(E) No registrant or licensee shall obtain a certificate of	1387
registration or license through any false or fraudulent	1388
representation of a material fact or any omission of a material	1389
fact required by state or federal law, or make any substantial	1390
misrepresentation in the registration or license application, to	1391
engage in lending secured by real estate.	1392

(F) No registrant or licensee, in connection with the	1393
business of making or offering to make residential mortgage loans,	1394
shall knowingly make false or misleading statements of a material	1395
fact, omissions of statements required by state or federal law, or	1396
false promises regarding a material fact, through advertising or	1397
other means, or engage in a continued course of	1398
misrepresentations.	1399

(G) No registrant, licensee, or person making loans without a	1400
certificate of registration in violation of division (A) of	1401
section 1321.52 of the Revised Code, shall knowingly engage in	1402
conduct, in connection with the business of making or offering to	1403
make residential mortgage loans, that constitutes improper,	1404
fraudulent, or dishonest dealings.	1405

(H) No registrant, licensee, or applicant involved in the	1406
business of making or offering to make residential mortgage loans	1407
shall fail to notify the division of financial institutions within	1408
thirty days after knowing any of the following:	1409

(1) That the registrant, licensee, or applicant has been	1410
convicted of or pleaded guilty or nolo contendere to a felony	1411
offense in a domestic, foreign, or military court;	1412

(2) That the registrant, licensee, or applicant has been	1413
convicted of or pleaded guilty or nolo contendere to any criminal	1414
offense involving theft, receiving stolen property, embezzlement,	1415
forgery, fraud, passing bad checks, money laundering, breach of	1416
trust, dishonesty, or drug trafficking, or any criminal offense	1417
involving money or securities, in a domestic, foreign, or military	1418
court;	1419

(3) That the registrant, licensee, or applicant has had a	1420
mortgage lender registration or mortgage loan originator license,	1421
or comparable authority, revoked in any governmental jurisdiction.	1422

(I) No registrant or licensee shall knowingly make, propose,	1423
or solicit fraudulent, false, or misleading statements on any	1424
mortgage document or on any document related to a mortgage loan,	1425
including a mortgage application, real estate appraisal, or real	1426
estate settlement or closing document. For purposes of this	1427
division, "fraudulent, false, or misleading statements" does not	1428
include mathematical errors, inadvertent transposition of numbers,	1429
typographical errors, or any other bona fide error.	1430

(J) No registrant or licensee shall knowingly instruct,	1431
solicit, propose, or otherwise cause a borrower to sign in blank a	1432
loan related document in connection with a residential mortgage	1433
loan.	1434

(K) No registrant or licensee shall knowingly compensate,	1435
instruct, induce, coerce, or intimidate, or attempt to compensate,	1436
instruct, induce, coerce, or intimidate, a person licensed or	1437
certified as an appraiser under Chapter 4763. of the Revised Code	1438
for the purpose of corrupting or improperly influencing the	1439
independent judgment of the person with respect to the value of	1440
the dwelling offered as security for repayment of a mortgage loan.	1441

(L) No registrant or licensee shall willfully retain original	1442
documents provided to the registrant or licensee by the borrower	1443
in connection with the residential mortgage loan application,	1444
including income tax returns, account statements, or other	1445
financial related documents.	1446

(M) No registrant or licensee shall, in connection with	1447
making residential mortgage loans, receive, directly or	1448
indirectly, a premium on the fees charged for services performed	1449
by a bona fide third party.	1450

(N) No registrant or licensee shall, in connection with	1451
making residential mortgage loans, pay or receive, directly or	1452
indirectly, a referral fee or kickback of any kind to or from a	1453
bona fide third party or other party with a related interest in	1454
the transaction, including a home improvement builder, real estate	1455
developer, or real estate broker or agent, for the referral of	1456
business. Nothing in this division shall prevent remuneration to a	1457
registrant or licensee for the licensed sale of any insurance	1458
product that is permitted under section 1321.57 of the Revised	1459
Code, provided there is no additional fee or premium added to the	1460
cost for the insurance and paid directly or indirectly by the	1461
borrower.	1462

(O) No registrant, licensee, or person making loans without a	1463
certificate of registration in violation of division (A) of	1464
section 1321.52 of the Revised Code shall, in connection with	1465
making or offering to make residential mortgage loans, engage in	1466
any unfair, deceptive, or unconscionable act or practice	1467
prohibited under sections 1345.01 to 1345.13 of the Revised Code.	1468

Sec. 1322.01.  As used in sections 1322.01 to 1322.12 of the	1469
Revised Code:	1470

(A) "Buyer" means an individual who is solicited to purchase	1471
or who purchases the services of a mortgage broker for purposes of	1472
obtaining a residential mortgage loan.	1473

(B) "Consumer reporting agency" has the same meaning as in	1474
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A. 1681a,	1475
as amended.	1476

(C) "Employee" means an individual for whom a mortgage	1477
broker, in addition to providing a wage or salary, pays social	1478
security and unemployment taxes, provides workers' compensation	1479
coverage, and withholds local, state, and federal income taxes.	1480
"Employee" also includes any individual who acts as a loan	1481
originator or operations manager of a registrant, but for whom the	1482
registrant is prevented by law from making income tax	1483
withholdings.	1484

(D) "Licensee" means any individual who has been issued a	1485
loan originator license under sections 1322.01 to 1322.12 of the	1486
Revised Code.	1487

(E)(1) "Loan originator" means an individual who for	1488
compensation or gain, or in anticipation of compensation or gain,	1489
does any of the following:	1490

(a) Takes or offers to take a residential mortgage loan	1491
application;	1492

(b) Assists or offers to assist a buyer in obtaining or	1493
applying to obtain a residential mortgage loan by, among other	1494
things, advising on loan terms, including rates, fees, and other	1495
costs;	1496

(c) Offers or negotiates terms of a residential mortgage	1497
loan;	1498

(d) Issues or offers to issue a commitment for a residential	1499
mortgage loan to a buyer.	1500

(2) "Loan originator" does not include any of the following:

1501

(a) An individual who performs purely administrative or	1502
clerical tasks on behalf of a loan originator;	1503

(b) A person licensed under Chapter 4735. of the Revised	1504
Code, or under the similar law of another state, who performs only	1505
real estate brokerage activities permitted by that license,	1506
provided the person is not compensated by a mortgage lender,	1507
mortgage broker, loan originator, or by any agent thereof;	1508

(c) A person solely involved in extensions of credit relating	1509
to timeshare plans, as that term is defined in 11 U.S.C. 101 in	1510
effect on January 1, 2009;	1511

(d) An employee of a registrant who acts solely as a loan	1512
processor or underwriter and who does not represent to the public,	1513
through advertising or other means of communicating, including the	1514
use of business cards, stationery, brochures, signs, rate lists,	1515
or other promotional items, that the employee can or will perform	1516
any of the activities of a loan originator;	1517

(e) A mortgage loan originator licensed under sections	1518
1321.51 to 1321.60 of the Revised Code, when acting solely under	1519
that authority;	1520

(f) A licensed attorney who negotiates the terms of a	1521
residential mortgage loan on behalf of a client as an ancillary	1522
matter to the attorney's representation of the client, unless the	1523
attorney is compensated by a lender, a mortgage broker, or another	1524
loan originator, or by any agent thereof;	1525

(g) Any person engaged in the retail sale of manufactured	1526
homes, mobile homes, or industrialized units if, in connection	1527
with financing those retail sales, the person only assists the	1528
borrower by providing or transmitting the loan application and	1529
does not do any of the following:	1530

(i) Offer or negotiate the residential mortgage loan rates or	1531
terms;	1532

(ii) Provide any counseling with borrowers about residential	1533
mortgage loan rates or terms;	1534

(iii) Receive any payment or fee from any company or	1535
individual for assisting the borrower obtain or apply for	1536
financing to purchase the manufactured home, mobile home, or	1537
industrialized unit;	1538

(iv) Assist the borrower in completing a residential mortgage	1539
loan application.	1540

(h) An individual employed by a nonprofit organization that	1541
is recognized as tax exempt under 26 U.S.C. 501(c)(3) and whose	1542
primary activity is the construction, remodeling, or	1543
rehabilitation of homes for use by low-income families, provided	1544
that the nonprofit organization makes no-profit mortgage loans or	1545
mortgage loans at zero per cent interest to low-income families	1546
and no fees accrue directly to the nonprofit organization or	1547
individual employed by the nonprofit organization from those	1548
mortgage loans and that the United States department of housing	1549
and urban development does not deny this exemption.	1550

(F) "Mortgage" means any indebtedness secured by a deed of	1551
trust, security deed, or other lien on real property.	1552

(G)(1) "Mortgage broker" means any of the following:

1553

(a) A person that holds that person out as being able to	1554
assist a buyer in obtaining a mortgage and charges or receives	1555
from either the buyer or lender money or other valuable	1556
consideration readily convertible into money for providing this	1557
assistance;	1558

(b) A person that solicits financial and mortgage information	1559
from the public, provides that information to a mortgage broker or	1560
a person that makes residential mortgage loans, and charges or	1561
receives from either of them money or other valuable consideration	1562
readily convertible into money for providing the information;	1563

(c) A person engaged in table-funding or warehouse-lending	1564
mortgage loans that are first lien residential mortgage loans.	1565

(2) "Mortgage broker" does not include any of the following	1566
persons only with respect to business engaged in or authorized by	1567
the person's charter, license, authority, approval, or	1568
certificate, or as otherwise authorized by division (G)(2)(h) of	1569
this section:	1570

(a) A person that makes residential mortgage loans and	1571
receives a scheduled payment on each of those mortgage loans;	1572

(b) Any entity chartered and lawfully doing business under	1573
the authority of any law of this state, another state, or the	1574
United States as a bank, savings bank, trust company, savings and	1575
loan association, or credit union, or a subsidiary of any such	1576
entity, which subsidiary is regulated by a federal banking agency	1577
and is owned and controlled by a depository institution;	1578

(c) A consumer reporting agency that is in substantial	1579
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128, 15	1580
U.S.C.A. 1681a, as amended;	1581

(d) Any political subdivision, or any governmental or other	1582
public entity, corporation, instrumentality, or agency, in or of	1583
the United States or any state;	1584

(e) A college or university, or controlled entity of a	1585
college or university, as those terms are defined in section	1586
1713.05 of the Revised Code;	1587

(f) Any entity created solely for the purpose of securitizing	1588
loans secured by an interest in real estate, provided the entity	1589
does not service the loans. For purposes of division (G)(2)(f) of	1590
this section, "securitizing" means the packaging and sale of	1591
mortgage loans as a unit for sale as investment securities, but	1592
only to the extent of those activities.	1593

(g) Any person engaged in the retail sale of manufactured	1594
homes, mobile homes, or industrialized units if, in connection	1595
with obtaining financing by others for those retail sales, the	1596
person only assists the borrower by providing or transmitting the	1597
loan application and does not do any of the following:	1598

(i) Offer or negotiate the residential mortgage loan rates or	1599
terms;	1600

(ii) Provide any counseling with borrowers about residential	1601
mortgage loan rates or terms;	1602

(iii) Receive any payment or fee from any company or	1603
individual for assisting the borrower obtain or apply for	1604
financing to purchase the manufactured home, mobile home, or	1605
industrialized unit;	1606

(iv) Assist the borrower in completing the residential	1607
mortgage loan application.	1608

(h) A mortgage banker, provided it complies with section	1609
1322.022 of the Revised Code and holds a valid letter of exemption	1610
issued by the superintendent. For purposes of this section,	1611
"mortgage banker" means any person that makes, services, buys, or	1612
sells residential mortgage loans secured by a first lien, that	1613
underwrites the loans, and that meets at least one of the	1614
following criteria:	1615

(i) The person has been directly approved by the United	1616
States department of housing and urban development as a	1617
nonsupervised mortgagee with participation in the direct	1618
endorsement program. Division (G)(2)(h)(i) of this section	1619
includes a person that has been directly approved by the United	1620
States department of housing and urban development as a	1621
nonsupervised mortgagee with participation in the direct	1622
endorsement program and that makes loans in excess of the	1623
applicable loan limit set by the federal national mortgage	1624
association, provided that the loans in all respects, except loan	1625
amounts, comply with the underwriting and documentation	1626
requirements of the United States department of housing and urban	1627
development. Division (G)(2)(h)(i) of this section does not	1628
include a mortgagee approved as a loan correspondent.	1629

(ii) The person has been directly approved by the federal	1630
national mortgage association as a seller/servicer. Division	1631
(G)(2)(h)(ii) of this section includes a person that has been	1632
directly approved by the federal national mortgage association as	1633
a seller/servicer and that makes loans in excess of the applicable	1634
loan limit set by the federal national mortgage association,	1635
provided that the loans in all respects, except loan amounts,	1636
comply with the underwriting and documentation requirements of the	1637
federal national mortgage association.	1638

(iii) The person has been directly approved by the federal	1639
home loan mortgage corporation as a seller/servicer. Division	1640
(G)(2)(h)(iii) of this section includes a person that has been	1641
directly approved by the federal home loan mortgage corporation as	1642
a seller/servicer and that makes loans in excess of the applicable	1643
loan limit set by the federal home loan mortgage corporation,	1644
provided that the loans in all respects, except loan amounts,	1645
comply with the underwriting and documentation requirements of the	1646
federal home loan mortgage corporation.	1647

(iv) The person has been directly approved by the United	1648
States department of veterans affairs as a nonsupervised automatic	1649
lender. Division (G)(2)(h)(iv) of this section does not include a	1650
person directly approved by the United States department of	1651
veterans affairs as a nonsupervised lender, an agent of a	1652
nonsupervised automatic lender, or an agent of a nonsupervised	1653
lender.	1654

(i) A nonprofit organization that is recognized as tax exempt	1655
under 26 U.S.C. 501(c)(3) and whose primary activity is the	1656
construction, remodeling, or rehabilitation of homes for use by	1657
low-income families, provided that the nonprofit organization	1658
makes no-profit mortgage loans or mortgage loans at zero per cent	1659
interest to low-income families and no fees accrue directly to the	1660
nonprofit organization from those mortgage loans and that the	1661
United States department of housing and urban development does not	1662
deny this exemption.	1663

(j) A credit union service organization, provided that the	1664
organization utilizes services provided by registered loan	1665
originators or that it holds a valid letter of exemption issued by	1666
the superintendent under section 1322.023 of the Revised Code and	1667
complies with that section.	1668

(H) "Operations manager" means the employee or owner	1669
responsible for the everyday operations, compliance requirements,	1670
and management of a mortgage broker business.	1671

(I) "Registered loan originator" means an individual to whom	1672
both of the following apply:	1673

(1) The individual is a loan originator and an employee of a	1674
depository institution, a subsidiary that is owned and controlled	1675
by a depository institution and regulated by a federal banking	1676
agency, or an institution regulated by the farm credit	1677
administration.	1678

(2) The individual is registered with, and maintains a unique	1679
identifier through, the nationwide mortgage licensing system and	1680
registry.	1681

(J) "Registrant" means any person that has been issued a	1682
mortgage broker certificate of registration under sections 1322.01	1683
to 1322.12 of the Revised Code.	1684

(K) "Superintendent of financial institutions" includes the	1685
deputy superintendent for consumer finance as provided in section	1686
1181.21 of the Revised Code.	1687

(L) "Table-funding mortgage loan" means a residential	1688
mortgage loan transaction in which the residential mortgage loan	1689
is initially payable to the mortgage broker, the mortgage broker	1690
does not use the mortgage broker's own funds to fund the	1691
transaction, and, by the terms of the mortgage or other agreement,	1692
the mortgage is simultaneously assigned to another person.	1693

(M) "Warehouse-lending mortgage loan" means a residential	1694
mortgage loan transaction in which the residential mortgage loan	1695
is initially payable to the mortgage broker, the mortgage broker	1696
uses the mortgage broker's own funds to fund the transaction, and	1697
the mortgage is sold or assigned before the mortgage broker	1698
receives a scheduled payment on the residential mortgage loan.	1699

(N) "Administrative or clerical tasks" means the receipt,	1700
collection, and distribution of information common for the	1701
processing or underwriting of a loan in the mortgage industry, and	1702
communication with a consumer to obtain information necessary for	1703
the processing or underwriting of a residential mortgage loan.	1704

(O) "Appraisal company" means a sole proprietorship,	1705
partnership, corporation, limited liability company, or any other	1706
business entity or association, that employs or retains the	1707
services of a person licensed or certified under Chapter 4763. of	1708
the Revised Code for purposes of performing residential real	1709
estate appraisals for mortgage loans.	1710

(P) "Depository institution" has the same meaning as in	1711
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12	1712
U.S.C. 1813, and includes any credit union.	1713

(Q) "Federal banking agency" means the board of governors of	1714
the federal reserve system, the comptroller of the currency, the	1715
director of the office of thrift supervision, the national credit	1716
union administration, and the federal deposit insurance	1717
corporation.	1718

(R) "Immediate family" means an individual's spouse, child,	1719
stepchild, parent, stepparent, grandparent, grandchild, brother,	1720
sister, parent-in-law, brother-in-law, or sister-in-law.	1721

(S) "Individual" means a natural person.

1722

(T) "Loan processor or underwriter" means an individual who	1723
performs clerical or support duties at the direction of and	1724
subject to the supervision and instruction of a licensed loan	1725
originator or registered loan originator. For purposes of this	1726
division, to "perform clerical or support duties" includesmeans	1727
to do all of the following activities:	1728

(1) The receiptReceiving, collectioncollecting,	1729
distributiondistributing, and analysis ofanalyzing information	1730
common for the processing or underwriting of a residential	1731
mortgage loan;	1732

(2) Communicating with a buyer to obtain the information	1733
necessary for the processing or underwriting of a loan, to the	1734
extent the communication does not include offering or negotiating	1735
loan rates or terms or counseling buyers about residential	1736
mortgage loan rates or terms.	1737

(U) "Nationwide mortgage licensing system and registry" means	1738
a mortgage licensing system developed and maintained by the	1739
conference of state bank supervisors and the American association	1740
of residential mortgage regulators, or their successor entities,	1741
for the licensing and registration of loan originators, or any	1742
system established by the secretary of housing and urban	1743
development pursuant to the "Secure and Fair Enforcement for	1744
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	1745

(V) "Nontraditional mortgage product" means any mortgage	1746
product other than a thirty-year fixed rate mortgage.	1747

(W) "Real estate brokerage activity" means any activity that	1748
involves offering or providing real estate brokerage services to	1749
the public, including all of the following:	1750

(1) Acting as a real estate agent or real estate broker for a	1751
buyer, seller, lessor, or lessee of real property;	1752

(2) Bringing together parties interested in the sale,	1753
purchase, lease, rental, or exchange of real property, other than	1754
in connection with providing financing for any such transaction;	1755

(3) Negotiating, on behalf of any party, any portion of a	1756
contract relating to the sale, purchase, lease, rental, or	1757
exchange of real property, other than in connection with providing	1758
financing for any such transaction;	1759

(4) Engaging in any activity for which a person engaged in	1760
that activity is required to be registered or licensed as a real	1761
estate agent or real estate broker under any applicable law;	1762

(5) Offering to engage in any activity, or to act in any	1763
capacity, described in division (W) of this section.	1764

(X) "Residential mortgage loan" means any loan primarily for	1765
personal, family, or household use that is secured by a mortgage	1766
or other equivalent consensual security interest on a dwelling or	1767
on residential real estate upon which is constructed or intended	1768
to be constructed a dwelling. For purposes of this division,	1769
"dwelling" has the same meaning as in section 103 of the "Truth in	1770
Lending Act," 82 Stat. 146, 15 U.S.C 1602.	1771

(Y) "State," in the context of referring to states in	1772
addition to Ohio, means any state of the United States, the	1773
district of Columbia, any territory of the United States, Puerto	1774
Rico, Guam, American Samoa, the trust territory of the Pacific	1775
islands, the virgin islands, and the northern Mariana islands;.	1776

(Z) "Unique identifier" means a number or other identifier	1777
that permanently identifies a loan originator and is assigned by	1778
protocols established by the nationwide mortgage licensing system	1779
and registry or federal banking agencies to facilitate electronic	1780
tracking of loan originators and uniform identification of, and	1781
public access to, the employment history of and the publicly	1782
adjudicated disciplinary and enforcement actions against loan	1783
originators.	1784

Sec. 1322.02.  (A)(1) No person, on the person's own behalf	1785
or on behalf of any other person, shall act as a mortgage broker	1786
without first having obtained a certificate of registration from	1787
the superintendent of financial institutions for every office to	1788
be maintained by the person for the transaction of business as a	1789
mortgage broker in this state. A registrant shall maintain an	1790
office location in this state for the transaction of business as a	1791
mortgage broker in this state.	1792

(2) No person shall act or hold that person's self out as a	1793
mortgage broker under the authority or name of a registrant or	1794
person exempt from sections 1322.01 to 1322.12 of the Revised Code	1795
without first having obtained a certificate of registration from	1796
the superintendent for every office to be maintained by the person	1797
for the transaction of business as a mortgage broker in this	1798
state.	1799

(B)(1) No individual shall act as a loan originator without	1800
first having obtained a license from the superintendent. A loan	1801
originator shall be employed by or associated with a mortgage	1802
broker or any person or entity listed in division (G)(2) of	1803
section 1322.01 of the Revised Code, but shall not be employed by	1804
or associated with more than one mortgage broker or person or	1805
entity at any one time.	1806

(2) An individual acting under the individual's authority as	1807
a registered loan originator shall not be required to be licensed	1808
under division (B)(1) of this section.	1809

(C)(1) Each licenseeNo person acting as a mortgage broker or	1810
loan originator shall fail to register with, and maintain a valid	1811
unique identifier issued by, the nationwide mortgage licensing	1812
system and registry.	1813

(2) No person shall use a licensee'smortgage broker's or	1814
loan originator's unique identifier for any purpose other than as	1815
set forth in the "Secure and Fair Enforcement for Mortgage	1816
Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	1817

Sec. 1322.022.  (A) A mortgage banker seeking exemption from	1818
registration pursuant to division (G)(2)(h) of section 1322.01 of	1819
the Revised Code shall submit an application to the superintendent	1820
of financial institutions along with a nonrefundable fee of three	1821
hundred fifty dollars for each location of an office to be	1822
maintained by the mortgage banker. The application shall be in a	1823
form prescribed by the superintendent and shall include all of the	1824
following:	1825

(1) The mortgage banker's business name and state of	1826
incorporation or business registration;	1827

(2) The names of the owners, officers, or partners having	1828
control of the business;	1829

(3) An attestation to all of the following:

1830

(a) That the mortgage banker and its owners, officers, or	1831
partners identified in division (A)(2) of this section have not	1832
had a mortgage banker license, mortgage broker certificate of	1833
registration, or loan originator license, or any comparable	1834
authority, revoked in any governmental jurisdiction;	1835

(b) That the mortgage banker and its owners, officers, or	1836
partners identified in division (A)(2) of this section have not	1837
been convicted of, or pleaded guilty or nolo contendere to, any of	1838
the following in a domestic, foreign, or military court:	1839

(i) During the seven-year period immediately preceding the	1840
date of application for exemption, any felony or a misdemeanor	1841
involving theft or any felony;	1842

(ii) At any time prior to the date the application for	1843
exemption is approved, a felony involving an act of fraud,	1844
dishonesty, a breach of trust, theft, or money laundering.	1845

(c) That, with respect to financing residential mortgage	1846
loans, the mortgage banker conducts business with residents of	1847
this state, or secures its loans with property located in this	1848
state, under authority of an approval described in division	1849
(G)(2)(h) of section 1322.01 of the Revised Code.	1850

(4) The names of all loan originators or licensees under the	1851
mortgage banker's control and direction;	1852

(5) An acknowledgment of understanding that the mortgage	1853
banker is subject to the regulatory authority of the division of	1854
financial institutions as provided in this section;	1855

(6) Any further reasonable information that the	1856
superintendent may require.	1857

(B)(1) If the superintendent determines that the mortgage	1858
banker honestly made the attestation required under division	1859
(A)(3) of this section and otherwise qualifies for exemption, the	1860
superintendent shall issue a letter of exemption. Additional	1861
certified copies of a letter of exemption shall be provided upon	1862
request and the payment of seventy-five dollars per copy.	1863

(2) If the superintendent determines that the mortgage banker	1864
does not qualify for exemption, the superintendent shall issue a	1865
notice of denial, and the mortgage banker may request a hearing in	1866
accordance with Chapter 119. of the Revised Code.	1867

(C) All of the following conditions apply to any mortgage	1868
banker holding a valid letter of exemption:	1869

(1) The mortgage banker shall be subject to examination in	1870
the same manner as a registrant with respect to the conduct of the	1871
mortgage banker's loan originators. In conducting any out-of-state	1872
examination, a mortgage banker shall be responsible for paying the	1873
costs of the division in the same manner as a registrant.	1874

(2) The mortgage banker shall have an affirmative duty to	1875
supervise the conduct of its loan originators, and to cooperate	1876
with investigations by the division with respect to that conduct,	1877
in the same manner as is required of registrants.	1878

(3) The mortgage banker shall keep and maintain records of	1879
all transactions relating to the conduct of its loan originators	1880
in the same manner as is required of registrants.	1881

(4) The mortgage banker may provide the surety bond for its	1882
licensees in the same manner as is permitted for registrants.	1883

(D) A letter of exemption expires annually on the	1884
thirty-first day of December and may be renewed on or before that	1885
date by submitting an application that meets the requirements of	1886
division (A) of this section and a nonrefundable renewal fee of	1887
three hundred fifty dollars for each location of an office to be	1888
maintained by the mortgage banker.	1889

(E) The superintendent may issue a notice to revoke or	1890
suspend a letter of exemption if the superintendent finds that the	1891
letter was obtained through a false or fraudulent representation	1892
of a material fact, or the omission of a material fact, required	1893
by law, or that a condition for exemption is no longer being met.	1894
Prior to issuing an order of revocation or suspension, the	1895
mortgage banker shall be given an opportunity for a hearing in	1896
accordance with Chapter 119. of the Revised Code.	1897

(F) All information obtained by the division pursuant to an	1898
examination or investigation under this section shall be subject	1899
to the confidentiality requirements set forth in section 1322.061	1900
of the Revised Code.	1901

(G) All money collected under this section shall be deposited	1902
into the state treasury to the credit of the consumer finance fund	1903
created in section 1321.21 of the Revised Code.	1904

(H) A mortgage banker that holds a valid letter of exemption,	1905
and any licensee employed by the mortgage banker, shall not be	1906
required to comply with section 1322.062 of the Revised Code with	1907
respect to any transaction covered under the authority of an	1908
approval described in division (G)(2)(h) of section 1322.01 of the	1909
Revised Code. Compliance shall be required, however, with respect	1910
to transactions not covered under the authority of an approval	1911
described in that division.	1912

Sec. 1322.023. (A) A credit union service organization	1913
seeking exemption from registration pursuant to division (G)(2)(j)	1914
of section 1322.01 of the Revised Code shall submit an application	1915
to the superintendent of financial institutions along with a	1916
nonrefundable fee of three hundred fifty dollars for each location	1917
of an office to be maintained by the organization. The application	1918
shall be in a form prescribed by the superintendent and shall	1919
include all of the following:	1920

(1) The organization's business name and state of	1921
incorporation;	1922

(2) The names of the owners, officers, or partners having	1923
control of the organization;	1924

(3) An attestation to all of the following:

1925

(a) That the organization and its owners, officers, or	1926
partners identified in division (A)(2) of this section have not	1927
had a mortgage broker certificate of registration or loan	1928
originator license, or any comparable authority, revoked in any	1929
governmental jurisdiction;	1930

(b) That the organization and its owners, officers, or	1931
partners identified in division (A)(2) of this section have not	1932
been convicted of, or pleaded guilty or nolo contendere to, any of	1933
the following in a domestic, foreign, or military court:	1934

(i) During the seven-year period immediately preceding the	1935
date of application for exemption, any felony or a misdemeanor	1936
involving theft or any felony;	1937

(ii) At any time prior to the date the application for	1938
exemption is approved, a felony involving an act of fraud,	1939
dishonesty, a breach of trust, theft, or money laundering.	1940

(c) That, with respect to financing residential mortgage	1941
loans, the organization conducts business with residents of this	1942
state or secures its loans with property located in this state.	1943

(4) The names of all loan originators or licensees under the	1944
organization's control and direction;	1945

(5) An acknowledgment of understanding that the organization	1946
is subject to the regulatory authority of the division of	1947
financial institutions;	1948

(6) Any further information that the superintendent may	1949
require.	1950

(B)(1) If the superintendent determines that the credit union	1951
service organization honestly made the attestation required under	1952
division (A)(3) of this section and otherwise qualifies for	1953
exemption, the superintendent shall issue a letter of exemption.	1954
Additional certified copies of a letter of exemption shall be	1955
provided upon request and the payment of seventy-five dollars per	1956
copy.	1957

(2) If the superintendent determines that the organization	1958
does not qualify for exemption, the superintendent shall issue a	1959
notice of denial, and the organization may request a hearing in	1960
accordance with Chapter 119. of the Revised Code.	1961

(C) All of the following conditions apply to any credit union	1962
service organization holding a valid letter of exemption:	1963

(1) The organization shall be subject to examination in the	1964
same manner as a registrant with respect to the conduct of the	1965
organization's loan originators. In conducting any out-of-state	1966
examination, the organization shall be responsible for paying the	1967
costs of the division in the same manner as a registrant.	1968

(2) The organization shall have an affirmative duty to	1969
supervise the conduct of its loan originators, and to cooperate	1970
with investigations by the division with respect to that conduct,	1971
in the same manner as is required of registrants.	1972

(3) The organization shall keep and maintain records of all	1973
transactions relating to the conduct of its loan originators in	1974
the same manner as is required of registrants.	1975

(4) The organization may provide the surety bond for its	1976
licensees in the same manner as is permitted for registrants.	1977

(D) A letter of exemption expires annually on the	1978
thirty-first day of December and may be renewed on or before that	1979
date by submitting an application that meets the requirements of	1980
division (A) of this section and a nonrefundable renewal fee of	1981
three hundred fifty dollars for each location of an office to be	1982
maintained by the credit union service organization.	1983

(E) The superintendent may issue a notice to revoke or	1984
suspend a letter of exemption if the superintendent finds that the	1985
letter was obtained though a false or fraudulent representation of	1986
a material fact, or the omission of a material fact, required by	1987
law, or that a condition for exemption is no longer being met.	1988
Prior to issuing an order of revocation or suspension, the credit	1989
union service organization shall be given an opportunity for a	1990
hearing in accordance with Chapter 119. of the Revised Code.	1991

(F) All information obtained by the division pursuant to an	1992
examination or investigation under this section shall be subject	1993
to the confidentiality requirements set forth in section 1322.061	1994
of the Revised Code.	1995

(G) All money collected under this section shall be deposited	1996
into the state treasury to the credit of the consumer finance fund	1997
created in section 1321.21 of the Revised Code.	1998

Sec. 1322.03.  (A) An application for a certificate of	1999
registration as a mortgage broker shall be in writing, under oath,	2000
and in the form prescribed by the superintendent of financial	2001
institutions. The application shall be accompanied by a	2002
nonrefundable application fee of five hundred dollars for each	2003
location of an office to be maintained by the applicant in	2004
accordance with division (A) of section 1322.02 of the Revised	2005
Code and any additional fee required by the nationwide mortgage	2006
licensing system and registry. The application shall provide all	2007
of the following:	2008

(1) The location or locations where the business is to be	2009
transacted and whether any location is a residence. If any	2010
location where the business is to be transacted is a residence,	2011
the superintendent may require that the application be accompanied	2012
by a copy of a zoning permit authorizing the use of the residence	2013
for commercial purposes, or by a written opinion or other document	2014
issued by the county or political subdivision where the residence	2015
is located certifying that the use of the residence to transact	2016
business as a mortgage broker is not prohibited by the county or	2017
political subdivision.	2018

(2)(a) In the case of a sole proprietor, the name and	2019
address of the sole proprietor;	2020

(b) In the case of a partnership, the name and address of	2021
each partner;	2022

(c) In the case of a corporation, the name and address of	2023
each shareholder owning five per cent or more of the corporation;	2024

(d) In the case of any other entity, the name and address of	2025
any person that owns five per cent or more of the entity that will	2026
transact business as a mortgage broker.	2027

(3) Each applicant shall designate an employee or owner of	2028
the applicant as the applicant's operations manager. While acting	2029
as the operations manager, the employee or owner shall be licensed	2030
as a loan originator under sections 1322.01 to 1322.12 of the	2031
Revised Code and shall not be employed by any other mortgage	2032
broker.	2033

(4) Evidence that the person designated on the application	2034
pursuant to division (A)(3) of this section possesses at least	2035
three years of experience in the residential mortgage and lending	2036
field, which experience may include employment with or as a	2037
mortgage broker or with a depository institution, mortgage lending	2038
institution, or other lending institution, or possesses at least	2039
three years of other experience related specifically to the	2040
business of residential mortgage loans that the superintendent	2041
determines meets the requirements of division (A)(4) of this	2042
section;	2043

(5) Evidence that the person designated on the application	2044
pursuant to division (A)(3) of this section has successfully	2045
completed the pre-licensing instruction requirements set forth in	2046
section 1322.031 of the Revised Code.;	2047

(6) Evidence of compliance with the surety bond requirements	2048
of section 1322.05 of the Revised Code and with sections 1322.01	2049
to 1322.12 of the Revised Code;	2050

(7) In the case of a foreign business entity, evidence that	2051
it maintains a license or registration pursuant to Chapter 1703.,	2052
1705., 1775., 1776., 1777., 1782., or 1783. of the Revised Code to	2053
transact business in this state;	2054

(8) Evidence that the applicant's operations manager has	2055
successfully completed the written test required under division	2056
(A) of section 1322.051 of the Revised Code;	2057

(9) Any further information that the superintendent requires.

2058

(B) Upon the filing of the application and payment of the	2059
nonrefundable application fee and any fee required by the	2060
nationwide mortgage licensing system and registry, the	2061
superintendent of financial institutions shall investigate the	2062
applicant, and any individual whose identity is required to be	2063
disclosed in the application, as set forth in division (B) of this	2064
section.	2065

(1)(a) Notwithstanding division (K) of section 121.08 of the	2066
Revised Code, the superintendent shall obtain a criminal history	2067
records check and, as part of that records check, request that	2068
criminal record information from the federal bureau of	2069
investigation be obtained. To fulfill this requirement, the	2070
superintendent shall do either of the following:	2071

(i) Request the superintendent of the bureau of criminal	2072
identification and investigation, or a vendor approved by the	2073
bureau, to conduct a criminal records check based on the	2074
applicant's fingerprints or, if the fingerprints are unreadable,	2075
based on the applicant's social security number, in accordance	2076
with division (A)(12) of section 109.572 of the Revised Code;	2077

(ii) Authorize the nationwide mortgage licensing system and	2078
registry to request a criminal history background check.	2079

(b) Any fee required under division (C)(3) of section 109.572	2080
of the Revised Code or by the nationwide mortgage licensing system	2081
and registry shall be paid by the applicant.	2082

(2) The superintendent shall conduct a civil records check.

2083

(3) If, in order to issue a certificate of registration to an	2084
applicant, additional investigation by the superintendent outside	2085
this state is necessary, the superintendent may require the	2086
applicant to advance sufficient funds to pay the actual expenses	2087
of the investigation, if it appears that these expenses will	2088
exceed five hundred dollars. The superintendent shall provide the	2089
applicant with an itemized statement of the actual expenses that	2090
the applicant is required to pay.	2091

(C) The superintendent shall pay all funds advanced and	2092
application and renewal fees and penalties the superintendent	2093
receives pursuant to this section and section 1322.04 of the	2094
Revised Code to the treasurer of state to the credit of the	2095
consumer finance fund created in section 1321.21 of the Revised	2096
Code.	2097

(D) If an application for a mortgage broker certificate of	2098
registration does not contain all of the information required	2099
under division (A) of this section, and if that information is not	2100
submitted to the superintendent or to the nationwide mortgage	2101
licensing system and registry within ninety days after the	2102
superintendent or the nationwide mortgage licensing system and	2103
registry requests the information in writing, including by	2104
electronic transmission or facsimile, the superintendent may	2105
consider the application withdrawn.	2106

(E) A mortgage broker certificate of registration and the	2107
authority granted under that certificate is not transferable or	2108
assignable and cannot be franchised by contract or any other	2109
means.	2110

(F) The registration requirements of this chapter apply to	2111
any person acting as a mortgage broker, and no person is exempt	2112
from the requirements of this chapter on the basis of prior work	2113
or employment as a mortgage broker.	2114

(G) The superintendent may establish relationships or enter	2115
into contracts with the nationwide mortgage licensing system and	2116
registry, or any entities designated by it, to collect and	2117
maintain records and process transaction fees or other fees	2118
related to mortgage broker certificates of registration or the	2119
persons associated with a mortgage broker.	2120

Sec. 1322.031. (A) An application for a license as a loan	2121
originator shall be in writing, under oath, and in the form	2122
prescribed by the superintendent of financial institutions. The	2123
application shall be accompanied by a nonrefundable application	2124
fee of one hundred fifty dollars and any additional fee required	2125
by the nationwide mortgage licensing system and registry.	2126

(B)(1) The application shall provide evidence, acceptable to	2127
the superintendent, that the applicant has successfully completed	2128
at least twenty-four hours of pre-licensing instruction consisting	2129
of all of the following:	2130

(a) Twenty hours of instruction in a course or program of	2131
study reviewed and approved by the nationwide mortgage licensing	2132
system and registry;	2133

(b) Four hours of instruction in a course or program of study	2134
reviewed and approved by the superintendent concerning state	2135
lending laws and the Ohio consumer sales practices act, Chapter	2136
1345. of the Revised Code, as it applies to registrants and	2137
licensees.	2138

(2) Notwithstanding division (B)(1) of this section, until	2139
the nationwide mortgage licensing system and registry implements a	2140
review and approval program, the application shall provide	2141
evidence, as determined by the superintendent, that the applicant	2142
has successfully completed at least twenty-four hours of	2143
instruction in a course or program of study approved by the	2144
superintendent that consists of at least all of the following:	2145

(a) Four hours of instruction concerning state and federal	2146
mortgage lending laws, which shall include no less than two hours	2147
on this chapter;	2148

(b) Four hours of instruction concerning the Ohio consumer	2149
sales practices act, Chapter 1345. of the Revised Code, as it	2150
applies to registrants and licensees;	2151

(c) Four hours of instruction concerning the loan application	2152
process;	2153

(d) Two hours of instruction concerning the underwriting	2154
process;	2155

(e) Two hours of instruction concerning the secondary market	2156
for mortgage loans;	2157

(f) Four hours of instruction concerning the loan closing	2158
process;	2159

(g) Two hours of instruction covering basic mortgage	2160
financing concepts and terms;	2161

(h) Two hours of instruction concerning the ethical	2162
responsibilities of a registrant and a licensee, including with	2163
respect to confidentiality, consumer counseling, and the duties	2164
and standards of care created in section 1322.081 of the Revised	2165
Code.	2166

(3) For purposes of division (B)(1)(a) of this section, the	2167
review and approval of a course or program of study includes the	2168
review and approval of the provider of the course or program of	2169
study.	2170

(4) If an applicant held a valid loan originator license	2171
issued by this state at any time during the immediately preceding	2172
five-year period, the applicant shall not be required to complete	2173
any additional pre-licensing instruction. For this purpose, any	2174
time during which the individual is a registered loan originator	2175
shall not be taken into account.	2176

(5) A person having successfully completed the pre-licensing	2177
education requirement reviewed and approved by the nationwide	2178
mortgage licensing system and registry for any state within the	2179
previous five years shall be granted credit toward completion of	2180
the pre-licensing education requirement of this state.	2181

(C) In addition to the information required under division	2182
(B) of this section, the application shall provide both of the	2183
following:	2184

(1) Evidence that the applicant passed a written test that	2185
meets the requirements described in division (B) of section	2186
1322.051 of the Revised Code;	2187

(2) Any further information that the superintendent requires.

2188

(D) Upon the filing of the application and payment of the	2189
application fee and any fee required by the nationwide mortgage	2190
licensing system and registry, the superintendent of financial	2191
institutions shall investigate the applicant as set forth in	2192
division (D) of this section.	2193

(1)(a) Notwithstanding division (K) of section 121.08 of the	2194
Revised Code, the superintendent shall obtain a criminal history	2195
records check and, as part of the records check, request that	2196
criminal record information from the federal bureau of	2197
investigation be obtained. To fulfill this requirement, the	2198
superintendent shall do either of the following:	2199

(i) Request the superintendent of the bureau of criminal	2200
identification and investigation, or a vendor approved by the	2201
bureau, to conduct a criminal records check based on the	2202
applicant's fingerprints or, if the fingerprints are unreadable,	2203
based on the applicant's social security number, in accordance	2204
with division (A)(12) of section 109.572 of the Revised Code;	2205

(ii) Authorize the nationwide mortgage licensing system and	2206
registry to request a criminal history background check.	2207

(b) Any fee required under division (C)(3) of section 109.572	2208
of the Revised Code or by the nationwide mortgage licensing system	2209
and registry shall be paid by the applicant.	2210

(2) The superintendent shall conduct a civil records check.

2211

(3) If, in order to issue a license to an applicant,	2212
additional investigation by the superintendent outside this state	2213
is necessary, the superintendent may require the applicant to	2214
advance sufficient funds to pay the actual expenses of the	2215
investigation, if it appears that these expenses will exceed one	2216
hundred fifty dollars. The superintendent shall provide the	2217
applicant with an itemized statement of the actual expenses that	2218
the applicant is required to pay.	2219

(E)(1) In connection with applying for a loan originator	2220
license, the applicant shall furnish to the nationwide mortgage	2221
licensing system and registry the following information concerning	2222
the applicant's identity:	2223

(a) The applicant's fingerprints for submission to the	2224
federal bureau of investigation, and any other governmental agency	2225
or entity authorized to receive such information, for purposes of	2226
a state, national, and international criminal history background	2227
check;	2228

(b) Personal history and experience in a form prescribed by	2229
the nationwide mortgage licensing system and registry, along with	2230
authorization for the superintendent and the nationwide mortgage	2231
licensing system and registry to obtain the following:	2232

(i) An independent credit report from a consumer reporting	2233
agency;	2234

(ii) Information related to any administrative, civil, or	2235
criminal findings by any governmental jurisdiction.	2236

(2) In order to effectuate the purposes of divisions	2237
(E)(1)(a) and (E)(1)(b)(ii) of this section, the superintendent	2238
may use the conference of state bank supervisors, or a wholly	2239
owned subsidiary, as a channeling agent for requesting information	2240
from and distributing information to the United States department	2241
of justice or any other governmental agency. The superintendent	2242
may also use the nationwide mortgage licensing system and registry	2243
as a channeling agent for requesting information from and	2244
distributing information to any source related to matters subject	2245
to those divisions of this section.	2246

(F) The superintendent shall pay all funds advanced and	2247
application and renewal fees and penalties the superintendent	2248
receives pursuant to this section and section 1322.041 of the	2249
Revised Code to the treasurer of state to the credit of the	2250
consumer finance fund created in section 1321.21 of the Revised	2251
Code.	2252

(G) If an application for a loan originator license does not	2253
contain all of the information required under this section, and if	2254
that information is not submitted to the superintendent or to the	2255
nationwide mortgage licensing system and registry within ninety	2256
days after the superintendent or the nationwide mortgage licensing	2257
system and registry requests the information in writing, including	2258
by electronic transmission or facsimile, the superintendent may	2259
consider the application withdrawn.	2260

(H)(1) The business of a loan originator shall principally be	2261
transacted at an office of the mortgage broker with whom the	2262
licensee is employed or associated, which office is registered in	2263
accordance with division (A) of section 1322.02 of the Revised	2264
Code. Each original loan originator license shall be deposited	2265
with and maintained by the mortgage broker at the mortgage	2266
broker's main office. A copy of the license shall be maintained	2267
and displayed at the office where the loan originator principally	2268
transacts business.	2269

(2) If a loan originator's employment or association is	2270
terminated for any reason, the mortgage broker shall return the	2271
original loan originator license to the superintendent within five	2272
business days after the termination. The licensee may request the	2273
transfer of the license to another mortgage broker by submitting a	2274
transfer application, along with a fifteen dollar fee and any fee	2275
required by the national mortgage licensing system and registry,	2276
to the superintendent or may request the superintendent in writing	2277
to hold the license in escrow. Any licensee whose license is held	2278
in escrow shall cease activity as a loan originator. A licensee	2279
whose license is held in escrow shall be required to apply for	2280
renewal annually and to comply with the annual continuing	2281
education requirement.	2282

(3) A mortgage broker may employ or be associated with a loan	2283
originator on a temporary basis pending the transfer of the loan	2284
originator's license to the mortgage broker, if the mortgage	2285
broker receives written confirmation from the superintendent that	2286
the loan originator is licensed under sections 1322.01 to 1322.12	2287
of the Revised Code.	2288

(4) Notwithstanding divisions (H)(1) to (3) of this section,	2289
if a licensee is employed by or associated with a person or entity	2290
listed in division (G)(2) of section 1322.01 of the Revised Code,	2291
all of the following apply:	2292

(a) The licensee shall maintain and display the original loan	2293
originator license at the office where the licensee principally	2294
transacts business;	2295

(b) If the loan originator's employment or association is	2296
terminated, the loan originator shall return the original loan	2297
originator license to the superintendent within five business days	2298
after termination. The licensee may request the transfer of the	2299
license to a mortgage broker or another person or entity listed in	2300
division (G)(2) of section 1322.01 of the Revised Code by	2301
submitting a transfer application, along with a fifteen-dollar fee	2302
and any fee required by the national mortgage licensing system and	2303
registry, to the superintendent or may request the superintendent	2304
in writing to hold the license in escrow. A licensee whose license	2305
is held in escrow shall cease activity as a loan originator. A	2306
licensee whose license is held in escrow shall be required to	2307
apply for renewal annually and to comply with the annual	2308
continuing education requirement.	2309

(c) The licensee may seek to be employed or associated with a	2310
mortgage broker or person or entity listed in division (G)(2) of	2311
section 1322.01 of the Revised Code if the mortgage broker or	2312
person or entity receives written confirmation from the	2313
superintendent that the loan originator is licensed under sections	2314
1322.01 to 1322.12 of the Revised Code.	2315

(I) The superintendent may establish relationships or enter	2316
into contracts with the nationwide mortgage licensing system and	2317
registry, or any entities designated by it, to collect and	2318
maintain records and process transaction fees or other fees	2319
related to loan originator licenses or the persons associated with	2320
a licensee.	2321

(J) A loan originator license, or the authority granted under	2322
that license, is not assignable and cannot be franchised by	2323
contract or any other means.	2324

Sec. 1322.04.  (A) Upon the conclusion of the investigation	2325
required under division (B) of section 1322.03 of the Revised	2326
Code, the superintendent of financial institutions shall issue a	2327
certificate of registration to the applicant if the superintendent	2328
finds that the following conditions are met:	2329

(1) The application is accompanied by the application fee and	2330
any fee required by the nationwide mortgage licensing system and	2331
registry.	2332

(a) If a check or other draft instrument is returned to the	2333
superintendent for insufficient funds, the superintendent shall	2334
notify the applicant by certified mail, return receipt requested,	2335
that the application will be withdrawn unless the applicant,	2336
within thirty days after receipt of the notice, submits the	2337
application fee and a one-hundred-dollar penalty to the	2338
superintendent. If the applicant does not submit the application	2339
fee and penalty within that time period, or if any check or other	2340
draft instrument used to pay the fee or penalty is returned to the	2341
superintendent for insufficient funds, the application shall be	2342
withdrawn.	2343

(b) If a check or other draft instrument is returned to the	2344
superintendent for insufficient funds after the certificate of	2345
registration has been issued, the superintendent shall notify the	2346
registrant by certified mail, return receipt requested, that the	2347
certificate of registration issued in reliance on the check or	2348
other draft instrument will be canceled unless the registrant,	2349
within thirty days after receipt of the notice, submits the	2350
application fee and a one-hundred-dollar penalty to the	2351
superintendent. If the registrant does not submit the application	2352
fee and penalty within that time period, or if any check or other	2353
draft instrument used to pay the fee or penalty is returned to the	2354
superintendent for insufficient funds, the certificate of	2355
registration shall be canceled immediately without a hearing, and	2356
the registrant shall cease activity as a mortgage broker.	2357

(2) If the application is for a location that is a residence,	2358
evidence that the use of the residence to transact business as a	2359
mortgage broker is not prohibited.	2360

(3) The person designated on the application pursuant to	2361
division (A)(3) of section 1322.03 of the Revised Code meets the	2362
experience requirements provided in division (A)(4) of section	2363
1322.03 of the Revised Code and the education requirements set	2364
forth in division (A)(5) of section 1322.03 of the Revised Code.	2365

(4) The applicant maintains all necessary filings and	2366
approvals required by the secretary of state.	2367

(5) The applicant complies with the surety bond requirements	2368
of section 1322.05 of the Revised Code.	2369

(6) The applicant complies with sections 1322.01 to 1322.12	2370
of the Revised Code and the rules adopted thereunder.	2371

(7) Neither the applicant nor any person whose identity is	2372
required to be disclosed on an application for a mortgage broker	2373
certificate of registration has had a mortgage broker certificate	2374
of registration or loan originator license, or any comparable	2375
authority, revoked in any governmental jurisdiction or has pleaded	2376
guilty or nolo contendere to or been convicted of any of the	2377
following in a domestic, foreign, or military court:	2378

(a) During the seven-year period immediately preceding the	2379
date of application for the certificate of registration, any	2380
felony or a misdemeanor involving theft or any felony;	2381

(b) At any time prior to the date the application for the	2382
certificate of registration is approved, a felony involving an act	2383
of fraud, dishonesty, a breach of trust, theft, or money	2384
laundering.	2385

(8) Based on the totality of the circumstances and	2386
information submitted in the application, the applicant has proven	2387
to the superintendent, by a preponderance of the evidence, that	2388
the applicant is of good business repute, appears qualified to act	2389
as a mortgage broker, has fully complied with sections 1322.01 to	2390
1322.12 of the Revised Code and the rules adopted thereunder, and	2391
meets all of the conditions for issuing a mortgage broker	2392
certificate of registration.	2393

(9) The applicant's operations manager successfully completed	2394
the examination required under division (A) of section 1322.051 of	2395
the Revised Code.	2396

(10) The applicant's financial responsibility, experience,	2397
character, and general fitness command the confidence of the	2398
public and warrant the belief that the business will be operated	2399
honestly and fairly in compliance with the purposes of sections	2400
1322.01 to 1322.12 of the Revised Code and the rules adopted	2401
thereunder. The superintendent shall not use a credit score as the	2402
sole basis for registration denial.	2403

(B) For purposes of determining whether an applicant that is	2404
a partnership, corporation, or other business entity or	2405
association has met the conditions set forth in divisions (A)(7),	2406
(A)(8), and (A)(10) of this section, the superintendent shall	2407
determine which partners, shareholders, or persons named in the	2408
application pursuant to division (A)(2) of section 1322.03 of the	2409
Revised Code must meet the conditions set forth in divisions	2410
(A)(7), (A)(8), and (A)(10) of this section. This determination	2411
shall be based on the extent and nature of the partner's,	2412
shareholder's, or person's ownership interest in the partnership,	2413
corporation, or other business entity or association that is the	2414
applicant and on whether the person is in a position to direct,	2415
control, or adversely influence the operations of the applicant.	2416

(C) The certificate of registration issued pursuant to	2417
division (A) of this section may be renewed annually on or before	2418
the thirty-first day of December if the superintendent finds that	2419
all of the following conditions are met:	2420

(1) The renewal application is accompanied by a nonrefundable	2421
renewal fee of five hundred dollars for each location of an office	2422
to be maintained by the applicant in accordance with division (A)	2423
of section 1322.02 of the Revised Code and any fee required by the	2424
nationwide mortgage licensing system and registry. If a check or	2425
other draft instrument is returned to the superintendent for	2426
insufficient funds, the superintendent shall notify the registrant	2427
by certified mail, return receipt requested, that the certificate	2428
of registration renewed in reliance on the check or other draft	2429
instrument will be canceled unless the registrant, within thirty	2430
days after receipt of the notice, submits the renewal fee and a	2431
one-hundred-dollar penalty to the superintendent. If the	2432
registrant does not submit the renewal fee and penalty within that	2433
time period, or if any check or other draft instrument used to pay	2434
the fee or penalty is returned to the superintendent for	2435
insufficient funds, the certificate of registration shall be	2436
canceled immediately without a hearing and the registrant shall	2437
cease activity as a mortgage broker.	2438

(2) The operations manager designated under division (A)(3)	2439
of section 1322.03 of the Revised Code has completed, at least	2440
eight hours of continuing education as required under section	2441
1322.052 of the Revised Code.	2442

(3) The applicant meets the conditions set forth in divisions	2443
(A)(2) to (10) of this section.	2444

(4) The applicant's mortgage broker certificate of	2445
registration is not subject to an order of suspension or an unpaid	2446
and past due fine imposed by the superintendent.	2447

(D)(1) Subject to division (D)(2) of this section, if a	2448
renewal fee or additional fee required by the nationwide mortgage	2449
licensing system and registry is received by the superintendent	2450
after the thirty-first day of December, the mortgage broker	2451
certificate of registration shall not be considered renewed, and	2452
the applicant shall cease activity as a mortgage broker.	2453

(2) Division (D)(1) of this section shall not apply if the	2454
applicant, no later than the thirty-first day of January, submits	2455
the renewal fee or additional fee and a one-hundred-dollar penalty	2456
to the superintendent.	2457

(E) If the person designated as the operations manager	2458
pursuant to division (A)(3) of section 1322.03 of the Revised Code	2459
is no longer the operations manager, the registrant shall do all	2460
of the following:	2461

(1) Within ninety days after the departure of the designated	2462
operations manager, designate another person as the operations	2463
manager;	2464

(2) Within ten days after the designation described in	2465
division (E)(1) of this section, notify the superintendent in	2466
writing of the designation;	2467

(3) Submit any additional information that the superintendent	2468
requires to establish that the newly designated operations manager	2469
complies with the requirements set forth in section 1322.03 of the	2470
Revised Code.	2471

(F) The registrant shall cease operations if it is without an	2472
operations manager approved by the superintendent for more than	2473
one hundred eighty days unless otherwise authorized in writing by	2474
the superintendent due to exigent circumstances.	2475

(G) Mortgage broker certificates of registration issued on or	2476
after May 1, 2010, annually expire on the thirty-first day of	2477
December.	2478

Sec. 1322.041. (A) Upon the conclusion of the investigation	2479
required under division (D) of section 1322.031 of the Revised	2480
Code, the superintendent of financial institutions shall issue a	2481
loan originator license to the applicant if the superintendent	2482
finds that the following conditions are met:	2483

(1) The application is accompanied by the application fee and	2484
any fee required by the nationwide mortgage licensing system and	2485
registry.	2486

(a) If a check or other draft instrument is returned to the	2487
superintendent for insufficient funds, the superintendent shall	2488
notify the applicant by certified mail, return receipt requested,	2489
that the application will be withdrawn unless the applicant,	2490
within thirty days after receipt of the notice, submits the	2491
application fee and a one-hundred-dollar penalty to the	2492
superintendent. If the applicant does not submit the application	2493
fee and penalty within that time period, or if any check or other	2494
draft instrument used to pay the fee or penalty is returned to the	2495
superintendent for insufficient funds, the application shall be	2496
withdrawn.	2497

(b) If a check or other draft instrument is returned to the	2498
superintendent for insufficient funds after the license has been	2499
issued, the superintendent shall notify the licensee by certified	2500
mail, return receipt requested, that the license issued in	2501
reliance on the check or other draft instrument will be canceled	2502
unless the licensee, within thirty days after receipt of the	2503
notice, submits the application fee and a one-hundred-dollar	2504
penalty to the superintendent. If the licensee does not submit the	2505
application fee and penalty within that time period, or if any	2506
check or other draft instrument used to pay the fee or penalty is	2507
returned to the superintendent for insufficient funds, the license	2508
shall be canceled immediately without a hearing, and the licensee	2509
shall cease activity as a loan originator.	2510

(2) The applicant complies with sections 1322.01 to 1322.12	2511
of the Revised Code and the rules adopted thereunder.	2512

(3)(a) During the seven-year period immediately preceding the	2513
date of application for the license, theThe applicant has not	2514
been convicted of or pleaded guilty or nolo contendere to any	2515
felony or a misdemeanor involving theftof the following in a	2516
domestic, foreign, or military court.:	2517

(a) During the seven-year period immediately preceding the	2518
date of application for the license, a misdemeanor involving theft	2519
or any felony;	2520

(b) At any time prior to the date the application for the	2521
license is approved, the applicant has not been convicted of or	2522
pleaded guilty to a felony involving an act of fraud, dishonesty,	2523
a breach of trust, theft, or money laundering in a domestic,	2524
foreign, or military court.	2525

(4) Based on the totality of the circumstances and	2526
information submitted in the application, the applicant has proven	2527
to the superintendent, by a preponderance of the evidence, that	2528
the applicant is of good business repute, appears qualified to act	2529
as a loan originator, has fully complied with sections 1322.01 to	2530
1322.12 of the Revised Code and the rules adopted thereunder, and	2531
meets all of the conditions for issuing a loan originator license.	2532

(5) The applicant successfully completed the written test	2533
required under division (B) of section 1322.051 of the Revised	2534
Code and completed the prelicensing instruction set forth in	2535
division (B) of section 1322.031 of the Revised Code.	2536

(6) The applicant's financial responsibility, character, and	2537
general fitness command the confidence of the public and warrant	2538
the belief that the business will be operated honestly and fairly	2539
in compliance with the purposes of sections 1322.01 to 1322.12 of	2540
the Revised Code. The superintendent shall not use a credit score	2541
as the sole basis for a license denial.	2542

(7) The applicant is in compliance with the surety bond	2543
requirements of section 1322.05 of the Revised Code.	2544

(8) The applicant has not had a loan originator license, or	2545
comparable authority, revoked in any governmental jurisdiction.	2546

(B) The license issued under division (A) of this section may	2547
be renewed annually on or before the thirty-first day of December	2548
if the superintendent finds that all of the following conditions	2549
are met:	2550

(1) The renewal application is accompanied by a nonrefundable	2551
renewal fee of one hundred fifty dollars and any fee required by	2552
the nationwide mortgage licensing system and registry. If a check	2553
or other draft instrument is returned to the superintendent for	2554
insufficient funds, the superintendent shall notify the licensee	2555
by certified mail, return receipt requested, that the license	2556
renewed in reliance on the check or other draft instrument will be	2557
canceled unless the licensee, within thirty days after receipt of	2558
the notice, submits the renewal fee and a one-hundred-dollar	2559
penalty to the superintendent. If the licensee does not submit the	2560
renewal fee and penalty within that time period, or if any check	2561
or other draft instrument used to pay the fee or penalty is	2562
returned to the superintendent for insufficient funds, the license	2563
shall be canceled immediately without a hearing, and the licensee	2564
shall cease activity as a loan originator.	2565

(2) The applicant has completed at least eight hours of	2566
continuing education as required under section 1322.052 of the	2567
Revised Code.	2568

(3) The applicant meets the conditions set forth in divisions	2569
(A)(2) to (8) of this section; provided, however, that an	2570
applicant who was issued a loan officer license prior to January	2571
1, 2010, and has continuously maintained that license shall not be	2572
required to meet the condition described in division (B)(1)(b) of	2573
section 1322.031 of the Revised Code.	2574

(4) The applicant's license is not subject to an order of	2575
suspension or an unpaid and past due fine imposed by the	2576
superintendent.	2577

(C)(1) Subject to division (C)(2) of this section, if a	2578
license renewal application or renewal fee, including any fee	2579
required by the nationwide mortgage licensing system and registry,	2580
is received by the superintendent after the thirty-first day of	2581
December, the license shall not be considered renewed, and the	2582
applicant shall cease activity as a loan originator.	2583

(2) Division (C)(1) of this section shall not apply if the	2584
applicant, no later than the thirty-first day of January, submits	2585
the renewal application and fees and a one-hundred-dollar penalty	2586
to the superintendent.	2587

(D) Loan originator licenses issued on or after May 1, 2010,	2588
annually expire on the thirty-first day of December.	2589

Sec. 1322.062. (A)(1) Within three business days after taking	2590
an application for a residential mortgage loan from a buyer, a	2591
registrant or licensee shall deliver to the buyer a residential	2592
mortgage loan origination disclosure statement that contains all	2593
of the following:	2594

(a) The name, address, and telephone number of the buyer;

2595

(b) The typewritten name of the loan originator and the	2596
number designated on the loan originator's license;	2597

(c) The street address, telephone number, and facsimile	2598
number of the registrant and the number designated on the	2599
registrant's certificate of registration;	2600

(d) The signature of the loan originator or registrant;

2601

(e) A statement indicating whether the buyer is to pay for	2602
the services of a bona fide third party if the registrant is	2603
unable to assist the buyer in obtaining a mortgage;	2604

(f) A statement that describes the method by which the fee to	2605
be paid by the buyer to the registrant will be calculated and a	2606
good faith estimate of the total amount of that fee;	2607

(g) A statement that the lender may pay compensation to the	2608
registrant;	2609

(h) A description of all the services the registrant has	2610
agreed to perform for the buyer;	2611

(i) A statement that the buyer has not entered into an	2612
exclusive agreement for brokerage services;	2613

(j) If the residential mortgage loan applied for will exceed	2614
ninety per cent of the value of the real property, a statement,	2615
printed in boldface type of the minimum size of sixteen points, as	2616
follows: "You are applying for a loan that is more than 90% of	2617
your home's value. It will be hard for you to refinance this loan.	2618
If you sell your home, you might owe more money on the loan than	2619
you get from the sale."	2620

(k) To acknowledge receipt, the signature of the buyer.

2621

(2) If the loan is a covered loan as defined in section	2622
1349.25 of the Revised Code, the registrant shall also deliver a	2623
copy of the residential mortgage loan origination disclosure	2624
statement to the lender.	2625

(B) If there is any change in the information provided under	2626
division (A)(1) of this section, the registrant or licensee shall	2627
provide the buyer with the revised residential mortgage loan	2628
origination disclosure statement and a written explanation of why	2629
the change occurred no later than twenty-four hours after the	2630
change occurs, or twenty-four hours before the loan is closed,	2631
whichever is earlier.	2632

(C) A registrant or licensee shall deliver to the buyer,	2633
immediately upon receipt, a copy of any nonproprietary or publicly	2634
available credit score and report obtained regarding the buyer by	2635
the registrant or licensee for the purpose of the residential	2636
mortgage loan application;.	2637

If the loan originator or registrant uses an automated	2638
valuation model to determine an appraisal report, the registrant	2639
or licensee also shall include a copy of the automated valuation	2640
model report.	2641

(D) A registrant or licensee shall deliver to the buyer, at	2642
the same time that the registrant or licensee delivers the	2643
residential mortgage loan origination disclosure statement	2644
pursuant to division (A) of this section, aboth of the following	2645
documents:	2646

(1) A good faith estimate statement that discloses the amount	2647
of or range of charges for the specific settlement services the	2648
buyer is likely to incur in connection with the residential	2649
mortgage loan. The good faith estimate statement shall meet the	2650
requirements of the "Real Estate Settlement Procedures Act," 88	2651
Stat. 1724 (1974), 12 U.S.C.A. 2601 et seq., and shall include the	2652
following	2653

(2) An underlined notice in at least ten-point type, new	2654
roman style, as follows:	2655

"Nature of Relationship: In connection with this residential	2656
mortgage loan, you, the borrower(s), has/have requested assistance	2657
from ............ (company name) in arranging credit. We do not	2658
distribute all products in the marketplace and cannot guarantee	2659
the lowest rate.	2660

Termination: This agreement will continue until one of the	2661
following events occur:	2662

1. The loan closes.

2663

2. The request is denied.

2664

3. The borrower withdraws the request.

2665

4. The borrower decides to use another source for	2666
origination.	2667

5. The borrower is provided a revised good faith estimate	2668
statement.	2669

Notice to borrower(s): Signing this document does not obligate you	2670
to obtain a residential mortgage loan through this mortgage	2671
originator nor is this a loan commitment or an approval; nor is	2672
your interest rate locked at this time unless otherwise disclosed	2673
on a separate Rate Lock Disclosure Form. Do not sign this document	2674
until you have read and understood the information in it. You will	2675
receive a redisclosure of any increase in interest rate or if the	2676
total sum of disclosed settlement/closing costs increases by 10%	2677
or more of the original estimate. Should any such increase occur,	2678
mandatory redisclosure must occur prior to the settlement or close	2679
of escrow."	2680

(E) No registrant or licensee shall fail to comply with this	2681
section.	2682

Sec. 1322.07.  No registrant, licensee, person required to be	2683
registered or licensed under sections 1322.01 to 1322.12 of the	2684
Revised Code, or individual disclosed in an application as	2685
required by division (A)(2) of section 1322.03 of the Revised Code	2686
shall do any of the following:	2687

(A) Obtain a mortgage broker certificate of registration or	2688
loan originator license through any false or fraudulent	2689
representation of a material fact or any omission of a material	2690
fact required by state law, or make any substantial	2691
misrepresentation in any registration or license application;	2692

(B) Make false or misleading statements of a material fact,	2693
omissions of statements required by state or federal law, or false	2694
promises regarding a material fact, through advertising or other	2695
means, or engage in a continued course of misrepresentations;	2696

(C) Engage in conduct that constitutes improper, fraudulent,	2697
or dishonest dealings;	2698

(D) Fail to notify the division of financial institutions	2699
within thirty days after any of the following:	2700

(1) Being convicted of or pleading guilty or nolo contendere	2701
to a felony in a domestic, foreign, or military court;	2702

(2) Being convicted of or pleading guilty or nolo contendere	2703
to any criminal offense involving theft, receiving stolen	2704
property, embezzlement, forgery, fraud, passing bad checks, money	2705
laundering, breach of trust, dishonesty, or drug trafficking, or	2706
any criminal offense involving money or securities, in a domestic,	2707
foreign, or military court;	2708

(3) Having a mortgage broker certificate of registration or	2709
loan originator license, or any comparable authority, revoked in	2710
any governmental jurisdiction.	2711

(E) Knowingly make, propose, or solicit fraudulent, false, or	2712
misleading statements on any mortgage loan document or on any	2713
document related to a mortgage loan, including a mortgage	2714
application, real estate appraisal, or real estate settlement or	2715
closing document. For purposes of this division, "fraudulent,	2716
false, or misleading statements" does not include mathematical	2717
errors, inadvertent transposition of numbers, typographical	2718
errors, or any other bona fide error.	2719

(F) Knowingly instruct, solicit, propose, or otherwise cause	2720
a buyer to sign in blank a mortgage related document;	2721

(G) Knowingly compensate, instruct, induce, coerce, or	2722
intimidate, or attempt to compensate, instruct, induce, coerce, or	2723
intimidate, a person licensed or certified under Chapter 4763. of	2724
the Revised Code for the purpose of corrupting or improperly	2725
influencing the independent judgment of the person with respect to	2726
the value of the dwelling offered as security for repayment of a	2727
mortgage loan;	2728

(H) Promise to refinance a loan in the future at a lower	2729
interest rate or with more favorable terms, unless the promise is	2730
set forth in writing and is initialed by the buyer;	2731

(I) Engage in any unfair, deceptive, or unconscionable act or	2732
practice prohibited under sections 1345.01 to 1345.13 of the	2733
Revised Code.	2734

Sec. 1322.074. (A) Except as otherwise provided in division	2735
(B) of this section, no registrant, or any member of the immediate	2736
family of an owner of a registrant, shall own or control a	2737
majority interest in an appraisal company.	2738

(B) Division (A) of this section shall not apply to any	2739
registrant, or any member of the immediate family of an owner of a	2740
registrant, who, on the effective date of this amendmentJanuary	2741
1, 2010, directly or indirectly owns or controls a majority	2742
interest in an appraisal company. However, such ownership or	2743
control is subject to the following conditions:	2744

(1) The registrant and members of the immediate family of an	2745
owner of a registrant shall not increase their interest in the	2746
company.	2747

(2) The interest is not transferable to a member of the	2748
immediate family of an owner of a registrant.	2749

(3) If the registrant is convicted of or pleads guilty or	2750
nolo contendere to a criminal violation of sections 1322.01 to	2751
1322.12 of the Revised Code or any criminal offense described in	2752
division (A)(1)(b) of section 1322.10 of the Revised Code, the	2753
superintendent of financial institutions may, in addition to any	2754
of the actions authorized under section 1322.10 of the Revised	2755
Code, order the registrant or members of the immediate family of	2756
an owner of a registrant to divest their interest in the company.	2757

Sec. 1322.10.  (A) After notice and opportunity for a hearing	2758
conducted in accordance with Chapter 119. of the Revised Code, the	2759
superintendent of financial institutions may do the following:	2760

(1) Suspend, revoke, or refuse to issue or renew a	2761
certificate of registration or license if the superintendent finds	2762
any of the following:	2763

(a) A violation of or failure to comply with any provision of	2764
sections 1322.01 to 1322.12 of the Revised Code or the rules	2765
adopted under those sections, federal lending law, or any other	2766
law applicable to the business conducted under a certificate of	2767
registration or license;	2768

(b) A conviction of or guilty or nolo contendere plea to a	2769
felony in a domestic, foreign, or military court;	2770

(c) A conviction of or guilty or nolo contendere plea to any	2771
criminal offense involving theft, receiving stolen property,	2772
embezzlement, forgery, fraud, passing bad checks, money	2773
laundering, breach of trust, dishonesty, or drug trafficking, or	2774
any criminal offense involving money or securities, in a domestic,	2775
foreign, or military court;	2776

(d) The revocation of a mortgage broker certificate of	2777
registration or loan originator license, or any comparable	2778
authority, in any governmental jurisdiction.	2779

(2) Impose a fine of not more than one thousand dollars, for	2780
each day a violation of a law or rule is committed, repeated, or	2781
continued. If the registrant or licensee engages in a pattern of	2782
repeated violations of a law or rule, the superintendent may	2783
impose a fine of not more than two thousand dollars for each day	2784
the violation is committed, repeated, or continued. All fines	2785
collected pursuant to this division shall be paid to the treasurer	2786
of state to the credit of the consumer finance fund created in	2787
section 1321.21 of the Revised Code. In determining the amount of	2788
a fine to be imposed pursuant to this division, the superintendent	2789
may consider all of the following, to the extent known by the	2790
division of financial institutions:	2791

(a) The seriousness of the violation;

2792

(b) The registrant's or licensee's good faith efforts to	2793
prevent the violation;	2794

(c) The registrant's or licensee's history regarding	2795
violations and compliance with division orders;	2796

(d) The registrant's or licensee's financial resources;

2797

(e) Any other matters the superintendent considers	2798
appropriate in enforcing sections 1322.01 to 1322.12 of the	2799
Revised Code.	2800

(B) The superintendent may investigate alleged violations of	2801
sections 1322.01 to 1322.12 of the Revised Code or the rules	2802
adopted under those sections or complaints concerning any	2803
violation.	2804

(1) The superintendent may make application to the court of	2805
common pleas for an order enjoining any violation and, upon a	2806
showing by the superintendent that a person has committed or is	2807
about to commit that violation, the court shall grant an	2808
injunction, restraining order, or other appropriate relief.	2809

(2) The superintendent may make application to the court of	2810
common pleas for an order enjoining any person from acting as a	2811
mortgage broker, registrant, loan originator, or licensee in	2812
violation of division (A) or (B) of section 1322.02 of the Revised	2813
Code, and may seek and obtain civil penalties for unregistered or	2814
unlicensed conduct of not more than five thousand dollars per	2815
violation.	2816

(C) In conducting any investigation pursuant to this section,	2817
the superintendent may compel, by subpoena, witnesses to testify	2818
in relation to any matter over which the superintendent has	2819
jurisdiction and may require the production of any book, record,	2820
or other document pertaining to that matter. If a person fails to	2821
file any statement or report, obey any subpoena, give testimony,	2822
produce any book, record, or other document as required by a	2823
subpoena, or permit photocopying of any book, record, or other	2824
document subpoenaed, the court of common pleas of any county in	2825
this state, upon application made to it by the superintendent,	2826
shall compel obedience by attachment proceedings for contempt, as	2827
in the case of disobedience of the requirements of a subpoena	2828
issued from the court or a refusal to testify therein.	2829

(D) If the superintendent determines that a person is engaged	2830
in or is believed to be engaged in activities that may constitute	2831
a violation of sections 1322.01 to 1322.12 of the Revised Code or	2832
any rule adopted thereunder, the superintendent, after notice and	2833
a hearing conducted in accordance with Chapter 119. of the Revised	2834
Code, may issue a cease and desist order. If the administrative	2835
action is to enjoin a person from acting as a mortgage broker or	2836
loan originator in violation of division (A) or (B) of section	2837
1322.02 of the Revised Code, the superintendent may seek and	2838
impose fines for that conduct in an amount not to exceed five	2839
thousand dollars per violation. Such an order shall be enforceable	2840
in the court of common pleas.	2841

(E) If the superintendent revokes a mortgage broker	2842
certificate of registration or loan originator license, the	2843
revocation shall be permanent and with prejudice.	2844

(F)(1) To protect the public interest, the superintendent	2845
may, without a prior hearing, do any of the following:	2846

(a) Suspend the mortgage broker certificate of registration	2847
or loan originator license of a registrant or licensee who is	2848
convicted of or pleads guilty or nolo contendere to a criminal	2849
violation of any provision of sections 1322.01 to 1322.12 of the	2850
Revised Code or any criminal offense described in division	2851
(A)(1)(b) or (c) of this section;	2852

(b) Suspend the mortgage broker certificate of registration	2853
of a registrant who violates division (F) of section 1322.05 of	2854
the Revised Code;	2855

(c) Suspend the mortgage broker certificate of registration	2856
or loan originator license of a registrant or licensee who fails	2857
to comply with a request made by the superintendent under section	2858
1322.03 or 1322.031 of the Revised Code to inspect qualifying	2859
education transcripts located at the registrant's or licensee's	2860
place of business.	2861

(2) The superintendent may, in accordance with Chapter 119.	2862
of the Revised Code, subsequently revoke any registration or	2863
license suspended under division (F)(1) of this section.	2864

(3) The superintendent shall, in accordance with Chapter 119.	2865
of the Revised Code, adopt rules establishing the maximum amount	2866
of time a suspension under division (F)(1) of this section may	2867
continue before a hearing is conducted.	2868

(G) The imposition of fines under this section does not	2869
preclude any penalty imposed under section 1322.99 of the Revised	2870
Code.	2871

Sec. 1322.99. (A) Whoever violates division (A)(1) or (2) of	2872
section 1322.02, division (E), (F), or (G) of section 1322.07,	2873
division (B)(1) or (2) of section 1322.071, or section 1322.08 of	2874
the Revised Code is guilty of a felony of the fifth degree.	2875

(B) Whoever violates division (B)(3) of section 1322.071 of	2876
the Revised Code is guilty of a felony of the fourth degree.	2877

(C) Whoever violates division (B) or (C)(1) or (2) of section	2878
1322.02 of the Revised Code is guilty of a misdemeanor of the	2879
first degree.	2880

Sec. 1343.011.  (A) As used in this section:

2881

(1) "Discount points" means any charges, whether or not	2882
actually denominated as "discount points," that are paid by the	2883
seller or the buyer of residential real property to a residential	2884
mortgage lender or that are deducted and retained by a residential	2885
mortgage lender from the proceeds of the residential mortgage.	2886
"Discount points" does not include the costs associated with	2887
settlement services as defined in the "Real Estate Settlement	2888
Procedures Act of 1974," 88 Stat. 1724, 12 U.S.C. 2601, amendments	2889
thereto, reenactments thereof, enactments parallel thereto, or in	2890
substitution therefor, or regulations issued thereunder.	2891

(2) "Residential mortgage" means an obligation to pay a sum	2892
of money evidenced by a note and secured by a lien upon real	2893
property located within this state containing two or fewer	2894
residential units or on which two or fewer residential units are	2895
to be constructed and includes such an obligation on a residential	2896
condominium or cooperative unit.	2897

(3) "Residential mortgage lender" means any person, bank, or	2898
savings and loan association that lends money or extends or grants	2899
credit and obtains a residential mortgage to assure payment of the	2900
debt. The term also includes the holder at any time of a	2901
residential mortgage obligation.	2902

(B) Except residential mortgage loans described in division	2903
(B)(3) of section 1343.01 of the Revised Code, no residential	2904
mortgage lender shall receive either directly or indirectly from a	2905
seller or buyer of real estate any discount points in excess of	2906
two per cent of the original principal amount of the residential	2907
mortgage. This division is not a limitation on discount points or	2908
other charges for purposes of section 501(b)(4) of the "Depository	2909
Institutions Deregulation and Monetary Control Act of 1980," 94	2910
Stat. 161, 12 U.S.C.A. 1735f-7a.	2911

(C)(1) Except as provided in division (C)(2) of this section,	2912
residential mortgage obligations may be prepaid or refinanced	2913
without penalty at any time after five years from the execution	2914
date of the mortgage. Prior to such time a prepayment or	2915
refinancing penalty may be provided not in excess of one per cent	2916
of the original principal amount of the residential mortgage.	2917

(2)(a) No penalty may be charged for the prepayment or	2918
refinancing of a residential mortgage obligation of less than	2919
seventy-five thousand dollars that is made or arranged by a	2920
mortgage broker, loan originatorofficer, or nonbank mortgage	2921
lender, as those terms are defined in section 1345.01 of the	2922
Revised Code, and that is secured by a mortgage on a borrower's	2923
real estate that is a first lien on the real estate.	2924

(b) The amount specified in division (C)(2)(a) of this	2925
section shall be adjusted annually on the first day of January by	2926
the annual percentage change in the consumer price index for all	2927
urban consumers, midwest region, all items, as determined by the	2928
bureau of labor statistics of the United States department of	2929
labor or, if that index is no longer published, a generally	2930
available comparable index, as reported on the first day of June	2931
of the year preceding the adjustment. The department of commerce	2932
shall publish the adjusted amounts on its official web site.	2933

Sec. 1345.01.  As used in sections 1345.01 to 1345.13 of the	2934
Revised Code:	2935

(A) "Consumer transaction" means a sale, lease, assignment,	2936
award by chance, or other transfer of an item of goods, a service,	2937
a franchise, or an intangible, to an individual for purposes that	2938
are primarily personal, family, or household, or solicitation to	2939
supply any of these things. "Consumer transaction" does not	2940
include transactions between persons, defined in sections 4905.03	2941
and 5725.01 of the Revised Code, and their customers, except for	2942
transactions involving a loan made pursuant to sections 1321.35 to	2943
1321.48 of the Revised Code and transactions in connection with	2944
residential mortgages between loan originatorsofficers, mortgage	2945
brokers, or nonbank mortgage lenders and their customers;	2946
transactions between certified public accountants or public	2947
accountants and their clients; transactions between attorneys,	2948
physicians, or dentists and their clients or patients; and	2949
transactions between veterinarians and their patients that pertain	2950
to medical treatment but not ancillary services.	2951

(B) "Person" includes an individual, corporation, government,	2952
governmental subdivision or agency, business trust, estate, trust,	2953
partnership, association, cooperative, or other legal entity.	2954

(C) "Supplier" means a seller, lessor, assignor, franchisor,	2955
or other person engaged in the business of effecting or soliciting	2956
consumer transactions, whether or not the person deals directly	2957
with the consumer. If the consumer transaction is in connection	2958
with a residential mortgage, "supplier" does not include an	2959
assignee or purchaser of the loan for value, except as otherwise	2960
provided in section 1345.091 of the Revised Code. For purposes of	2961
this division, in a consumer transaction in connection with a	2962
residential mortgage, "seller" means a loan originatorofficer,	2963
mortgage broker, or nonbank mortgage lender.	2964

(D) "Consumer" means a person who engages in a consumer	2965
transaction with a supplier.	2966

(E) "Knowledge" means actual awareness, but such actual	2967
awareness may be inferred where objective manifestations indicate	2968
that the individual involved acted with such awareness.	2969

(F) "Natural gas service" means the sale of natural gas,	2970
exclusive of any distribution or ancillary service.	2971

(G) "Public telecommunications service" means the	2972
transmission by electromagnetic or other means, other than by a	2973
telephone company as defined in section 4927.01 of the Revised	2974
Code, of signs, signals, writings, images, sounds, messages, or	2975
data originating in this state regardless of actual call routing.	2976
"Public telecommunications service" excludes a system, including	2977
its construction, maintenance, or operation, for the provision of	2978
telecommunications service, or any portion of such service, by any	2979
entity for the sole and exclusive use of that entity, its parent,	2980
a subsidiary, or an affiliated entity, and not for resale,	2981
directly or indirectly; the provision of terminal equipment used	2982
to originate telecommunications service; broadcast transmission by	2983
radio, television, or satellite broadcast stations regulated by	2984
the federal government; or cable television service.	2985

(H)(1) "Loan originatorofficer" has the same meaningmeans	2986
an individual who for compensation or gain, or in anticipation of	2987
compensation or gain, takes or offers to take a residential	2988
mortgage loan application; assists or offers to assist a buyer in	2989
obtaining or applying to obtain a residential mortgage loan by,	2990
among other things, advising on loan terms, including rates, fees,	2991
and other costs; offers or negotiates terms of a residential	2992
mortgage loan; or issues or offers to issue a commitment for a	2993
residential mortgage loan. "Loan officer" also includes a loan	2994
originator as defined in division (E)(1) of section 1322.01 of the	2995
Revised Code, and includes a "mortgage loan originator" as defined	2996
in section 1321.51 of the Revised Code, except that it.	2997

(2) "Loan officer" does not include an employee of a bank,	2998
savings bank, savings and loan association, credit union, or	2999
credit union service organization organized under the laws of this	3000
state, another state, or the United States; an employee of a	3001
subsidiary of such a bank, savings bank, savings and loan	3002
association, or credit union; or an employee of an affiliate that	3003
(1)(a) controls, is controlled by, or is under common control	3004
with, such a bank, savings bank, savings and loan association, or	3005
credit union and (2)(b) is subject to examination, supervision,	3006
and regulation, including with respect to the affiliate's	3007
compliance with applicable consumer protection requirements, by	3008
the board of governors of the federal reserve system, the	3009
comptroller of the currency, the office of thrift supervision, the	3010
federal deposit insurance corporation, or the national credit	3011
union administration.	3012

(I) "Residential mortgage" or "mortgage" means an obligation	3013
to pay a sum of money evidenced by a note and secured by a lien	3014
upon real property located within this state containing two or	3015
fewer residential units or on which two or fewer residential units	3016
are to be constructed and includes such an obligation on a	3017
residential condominium or cooperative unit.	3018

(J)(1) "Mortgage broker" has the same meaning as in section	3019
1322.01 of the Revised Code, except that itmeans any of the	3020
following:	3021

(a) A person that holds that person out as being able to	3022
assist a buyer in obtaining a mortgage and charges or receives	3023
from either the buyer or lender money or other valuable	3024
consideration readily convertible into money for providing this	3025
assistance;	3026

(b) A person that solicits financial and mortgage information	3027
from the public, provides that information to a mortgage broker or	3028
a person that makes residential mortgage loans, and charges or	3029
receives from either of them money or other valuable consideration	3030
readily convertible into money for providing the information;	3031

(c) A person engaged in table-funding or warehouse-lending	3032
mortgage loans that are residential mortgage loans.	3033

(2) "Mortgage broker" does not include a bank, savings bank,	3034
savings and loan association, credit union, or credit union	3035
service organization organized under the laws of this state,	3036
another state, or the United States; a subsidiary of such a bank,	3037
savings bank, savings and loan association, or credit union; an	3038
affiliate that (1)(a) controls, is controlled by, or is under	3039
common control with, such a bank, savings bank, savings and loan	3040
association, or credit union and (2)(b) is subject to examination,	3041
supervision, and regulation, including with respect to the	3042
affiliate's compliance with applicable consumer protection	3043
requirements, by the board of governors of the federal reserve	3044
system, the comptroller of the currency, the office of thrift	3045
supervision, the federal deposit insurance corporation, or the	3046
national credit union administration; or an employee of any such	3047
entity.	3048

(K) "Nonbank mortgage lender" means any person that engages	3049
in a consumer transaction in connection with a residential	3050
mortgage, except for a bank, savings bank, savings and loan	3051
association, credit union, or credit union service organization	3052
organized under the laws of this state, another state, or the	3053
United States; a subsidiary of such a bank, savings bank, savings	3054
and loan association, or credit union; or an affiliate that (1)	3055
controls, is controlled by, or is under common control with, such	3056
a bank, savings bank, savings and loan association, or credit	3057
union and (2) is subject to examination, supervision, and	3058
regulation, including with respect to the affiliate's compliance	3059
with applicable consumer protection requirements, by the board of	3060
governors of the federal reserve system, the comptroller of the	3061
currency, the office of thrift supervision, the federal deposit	3062
insurance corporation, or the national credit union	3063
administration.	3064

(L) For purposes of divisions (H), (J), and (K) of this	3065
section:	3066

(1) "Control" of another entity means ownership, control, or	3067
power to vote twenty-five per cent or more of the outstanding	3068
shares of any class of voting securities of the other entity,	3069
directly or indirectly or acting through one or more other	3070
persons.	3071

(2) "Credit union service organization" means a CUSO as	3072
defined in 12 C.F.R. 702.2.	3073

Sec. 1345.05.  (A) The attorney general shall:

3074

(1) Adopt, amend, and repeal procedural rules;

3075

(2) Adopt as a rule a description of the organization of the	3076
attorney general's office, stating the general courses and methods	3077
of operation of the section of the office of the attorney general,	3078
which is to administer Chapter 1345. of the Revised Code and	3079
methods whereby the public may obtain information or make	3080
submissions or requests, including a description of all forms and	3081
instructions used by that office;	3082

(3) Make available for public inspection all rules and all	3083
other written statements of policy or interpretations adopted or	3084
used by the attorney general in the discharge of the attorney	3085
general's functions, together with all judgments, including	3086
supporting opinions, by courts of this state that determine the	3087
rights of the parties and concerning which appellate remedies have	3088
been exhausted, or lost by the expiration of the time for appeal,	3089
determining that specific acts or practices violate section	3090
1345.02, 1345.03, or 1345.031 of the Revised Code;	3091

(4) Inform consumers and suppliers on a continuing basis of	3092
acts or practices that violate Chapter 1345. of the Revised Code	3093
by, among other things, publishing an informational document	3094
describing acts and practices in connection with residential	3095
mortgages that are unfair, deceptive, or unconscionable, and by	3096
making that information available on the attorney general's	3097
official web site;	3098

(5) Cooperate with state and local officials, officials of	3099
other states, and officials of the federal government in the	3100
administration of comparable statutes;	3101

(6) Report annually on or before the first day of January to	3102
the governor and the general assembly on the operations of the	3103
attorney general in respect to Chapter 1345. of the Revised Code,	3104
and on the acts or practices occurring in this state that violate	3105
such chapter. The report shall include a statement of	3106
investigatory and enforcement procedures and policies, of the	3107
number of investigations and enforcement proceedings instituted	3108
and of their disposition, and of other activities of the state and	3109
of other persons to promote the purposes of Chapter 1345. of the	3110
Revised Code.	3111

(7) In carrying out official duties, the attorney general	3112
shall not disclose publicly the identity of suppliers investigated	3113
or the facts developed in investigations unless these matters have	3114
become a matter of public record in enforcement proceedings, in	3115
public hearings conducted pursuant to division (B)(1) of this	3116
section, or the suppliers investigated have consented in writing	3117
to public disclosure.	3118

(B) The attorney general may:

3119

(1) Conduct research, make inquiries, hold public hearings,	3120
and publish studies relating to consumer transactions;	3121

(2) Adopt, amend, and repeal substantive rules defining with	3122
reasonable specificity acts or practices that violate sections	3123
1345.02, 1345.03, and 1345.031 of the Revised Code. In adopting,	3124
amending, or repealing substantive rules defining acts or	3125
practices that violate section 1345.02 of the Revised Code, due	3126
consideration and great weight shall be given to federal trade	3127
commission orders, trade regulation rules and guides, and the	3128
federal courts' interpretations of subsection 45(a)(1) of the	3129
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.	3130
41, as amended.	3131

In adopting, amending, or repealing such rules concerning a	3132
consumer transaction in connection with a residential mortgage,	3133
the attorney general shall consult with the superintendent of	3134
financial institutions and shall give due consideration to state	3135
and federal statutes, regulations, administrative agency	3136
interpretations, and case law.	3137

(C) In the conduct of public hearings authorized by this	3138
section, the attorney general may administer oaths, subpoena	3139
witnesses, adduce evidence, and require the production of relevant	3140
material. Upon failure of a person without lawful excuse to obey a	3141
subpoena or to produce relevant matter, the attorney general may	3142
apply to a court of common pleas for an order compelling	3143
compliance.	3144

(D) The attorney general may request that an individual who	3145
refuses to testify or to produce relevant material on the ground	3146
that the testimony or matter may incriminate the individual be	3147
ordered by the court to provide the testimony or matter. With the	3148
exception of a prosecution for perjury and an action for damages	3149
under section 1345.07 or 1345.09 of the Revised Code, an	3150
individual who complies with a court order to provide testimony or	3151
matter, after asserting a privilege against self incrimination to	3152
which the individual is entitled by law, shall not be subjected to	3153
a criminal proceeding on the basis of the testimony or matter	3154
discovered through that testimony or matter.	3155

(E) Any person may petition the attorney general requesting	3156
the adoption, amendment, or repeal of a rule. The attorney general	3157
shall prescribe by rule the form for such petitions and the	3158
procedure for their submission, consideration, and disposition.	3159
Within sixty days of submission of a petition, the attorney	3160
general shall either deny the petition in writing, stating the	3161
reasons for the denial, or initiate rule-making proceedings. There	3162
is no right to appeal from such denial of a petition.	3163

(F) All rules shall be adopted subject to Chapter 119. of the	3164
Revised Code.	3165

(G) The informational document published in accordance with	3166
division (A)(4) of this section shall be made available for	3167
distribution to consumers who are applying for a mortgage loan. An	3168
acknowledgement of receipt shall be retained by the lender,	3169
mortgage broker, and loan originatorofficer, as applicable,	3170
subject to review by the attorney general and the department of	3171
commerce.	3172

Sec. 1345.09.  For a violation of Chapter 1345. of the	3173
Revised Code, a consumer has a cause of action and is entitled to	3174
relief as follows:	3175

(A) Where the violation was an act prohibited by section	3176
1345.02, 1345.03, or 1345.031 of the Revised Code, the consumer	3177
may, in an individual action, rescind the transaction or recover	3178
the consumer's actual economic damages plus an amount not	3179
exceeding five thousand dollars in noneconomic damages.	3180

(B) Where the violation was an act or practice declared to be	3181
deceptive or unconscionable by rule adopted under division (B)(2)	3182
of section 1345.05 of the Revised Code before the consumer	3183
transaction on which the action is based, or an act or practice	3184
determined by a court of this state to violate section 1345.02,	3185
1345.03, or 1345.031 of the Revised Code and committed after the	3186
decision containing the determination has been made available for	3187
public inspection under division (A)(3) of section 1345.05 of the	3188
Revised Code, the consumer may rescind the transaction or recover,	3189
but not in a class action, three times the amount of the	3190
consumer's actual economic damages or two hundred dollars,	3191
whichever is greater, plus an amount not exceeding five thousand	3192
dollars in noneconomic damages or recover damages or other	3193
appropriate relief in a class action under Civil Rule 23, as	3194
amended.	3195

(C)(1) Except as otherwise provided in division (C)(2) of	3196
this section, in any action for rescission, revocation of the	3197
consumer transaction must occur within a reasonable time after the	3198
consumer discovers or should have discovered the ground for it and	3199
before any substantial change in condition of the subject of the	3200
consumer transaction.	3201

(2) If a consumer transaction between a loan originator	3202
officer, mortgage broker, or nonbank mortgage lender and a	3203
customer is in connection with a residential mortgage, revocation	3204
of the consumer transaction in an action for rescission is only	3205
available to a consumer in an individual action, and shall occur	3206
for no reason other than one or more of the reasons set forth in	3207
the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635,	3208
not later than the time limit within which the right of rescission	3209
under section 125(f) of the "Truth in Lending Act" expires.	3210

(D) Any consumer may seek a declaratory judgment, an	3211
injunction, or other appropriate relief against an act or practice	3212
that violates this chapter.	3213

(E) When a consumer commences an individual action for a	3214
declaratory judgment or an injunction or a class action under this	3215
section, the clerk of court shall immediately mail a copy of the	3216
complaint to the attorney general. Upon timely application, the	3217
attorney general may be permitted to intervene in any private	3218
action or appeal pending under this section. When a judgment under	3219
this section becomes final, the clerk of court shall mail a copy	3220
of the judgment including supporting opinions to the attorney	3221
general for inclusion in the public file maintained under division	3222
(A)(3) of section 1345.05 of the Revised Code.	3223

(F) The court may award to the prevailing party a reasonable	3224
attorney's fee limited to the work reasonably performed, if either	3225
of the following apply:	3226

(1) The consumer complaining of the act or practice that	3227
violated this chapter has brought or maintained an action that is	3228
groundless, and the consumer filed or maintained the action in bad	3229
faith;	3230

(2) The supplier has knowingly committed an act or practice	3231
that violates this chapter.	3232

(G) As used in this section, "actual economic damages" means	3233
damages for direct, incidental, or consequential pecuniary losses	3234
resulting from a violation of Chapter 1345. of the Revised Code	3235
and does not include damages for noneconomic loss as defined in	3236
section 2315.18 of the Revised Code.	3237

(H) Nothing in this section shall preclude a consumer from	3238
also proceeding with a cause of action under any other theory of	3239
law.	3240

Sec. 1349.31.  (A)(1) No creditor shall willfully and	3241
knowingly fail to comply with section 1349.26 or 1349.27 of the	3242
Revised Code. For purposes of division (A)(1) of this section,	3243
"willfully and knowingly" has the same meaning as in section 112	3244
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.	3245
1611, as amended.	3246

(2) Whoever violates division (A)(1) of this section is	3247
guilty of a felony of the fifth degree.	3248

(B) The superintendent of financial institutions may directly	3249
bring an action to enjoin a violation of this section. The	3250
attorney general may directly bring an action against a mortgage	3251
broker, loan originatorofficer, or nonbank mortgage lender to	3252
enjoin a violation of this section with the same rights,	3253
privileges, and powers as those described in section 1345.06 of	3254
the Revised Code. The prosecuting attorney of the county in which	3255
the action may be brought may bring an action against a mortgage	3256
broker, loan originatorofficer, or nonbank mortgage lender to	3257
enjoin a violation of this section only if the prosecuting	3258
attorney first presents any evidence of the violation to the	3259
attorney general and, within a reasonable period of time, the	3260
attorney general has not agreed to bring the action.	3261

For purposes of this division, "loan originatorofficer,"	3262
"mortgage broker," and "nonbank mortgage lender" have the same	3263
meanings as in section 1345.01 of the Revised Code.	3264

(C)(1) The superintendent of financial institutions may	3265
initiate criminal proceedings under this section by presenting any	3266
evidence of criminal violations to the prosecuting attorney of the	3267
county in which the offense may be prosecuted. If the prosecuting	3268
attorney does not prosecute the violations, or at the request of	3269
the prosecuting attorney, the superintendent shall present any	3270
evidence of criminal violations to the attorney general, who may	3271
proceed in the prosecution with all the rights, privileges, and	3272
powers conferred by law on prosecuting attorneys, including the	3273
power to appear before grand juries and to interrogate witnesses	3274
before such grand juries. These powers of the attorney general	3275
shall be in addition to any other applicable powers of the	3276
attorney general.	3277

(2) The prosecuting attorney of the county in which an	3278
alleged offense may be prosecuted may initiate criminal	3279
proceedings under this section.	3280

(3) In order to initiate criminal proceedings under this	3281
section, the attorney general shall first present any evidence of	3282
criminal violations to the prosecuting attorney of the county in	3283
which the alleged offense may be prosecuted. If, within a	3284
reasonable period of time, the prosecuting attorney has not agreed	3285
to prosecute the violations, the attorney general may proceed in	3286
the prosecution with all the rights, privileges, and powers	3287
described in division (C)(1) of this section.	3288

Sec. 1349.43. (A) As used in this section, "loan originator	3289
officer," "mortgage broker," and "nonbank mortgage lender" have	3290
the same meanings as in section 1345.01 of the Revised Code.	3291

(B) The department of commerce shall establish and maintain	3292
an electronic database accessible through the internet that	3293
contains information on all of the following:	3294

(1) The enforcement actions taken by the superintendent of	3295
financial institutions for each violation of or failure to comply	3296
with any provision of sections 1322.01 to 1322.12 of the Revised	3297
Code, upon final disposition of the action;	3298

(2) The enforcement actions taken by the attorney general	3299
under Chapter 1345. of the Revised Code against loan originators	3300
officers, mortgage brokers, and nonbank mortgage lenders, upon	3301
final disposition of each action;	3302

(3) All judgments by courts of this state, concerning which	3303
appellate remedies have been exhausted or lost by the expiration	3304
of the time for appeal, finding either of the following:	3305

(a) A violation of any provision of sections 1322.01 to	3306
1322.12 of the Revised Code;	3307

(b) That specific acts or practices by a loan originator	3308
officer, mortgage broker, or nonbank mortgage lender violate	3309
section 1345.02, 1345.03, or 1345.031 of the Revised Code.	3310

(C) The attorney general shall submit to the department, on	3311
the first day of each January, April, July, and October, a list of	3312
all enforcement actions and judgments described in divisions	3313
(B)(2) and (3)(b) of this section.	3314

(D) The department may adopt rules in accordance with Chapter	3315
119. of the Revised Code that are necessary to implement this	3316
section.	3317

(E) The electronic database maintained by the department in	3318
accordance with this section shall not include information that,	3319
pursuant to section 1322.061 of the Revised Code, is confidential.	3320

Sec. 1733.252.  (A) As used in this section, "nationwide	3321
mortgage licensing system and registry" has the same meaning as in	3322
section 1322.01 of the Revised Code.	3323

(B) Subject to division (C) of this section, each credit	3324
union, the subsidiaries of the credit union, and the loan	3325
originators employed by the credit union, shall comply with the	3326
"Secure and Fair Enforcement for Mortgage Licensing Act of 2008,"	3327
122 Stat. 2810, 12 U.S.C. 5101, and register with the nationwide	3328
mortgage licensing system and registry.	3329

(C) ComplianceUnless otherwise preempted by federal law,	3330
compliance by a credit union insured by a credit union share	3331
guaranty corporation established under Chapter 1761. of the	3332
Revised Code, the subsidiaries of the credit union, and the loan	3333
originators employed by the credit union shall be determined by	3334
rules adopted by the superintendent of financial institutions in	3335
accordance with Chapter 119. of the Revised Code. At a minimum,	3336
the rules shall require loan originators to furnish to the	3337
nationwide mortgage licensing system and registry information	3338
concerning the loan originator's identity and be consistent with	3339
the requirements for federally insured credit unions adopted by	3340
the national credit union administration pursuant to the "Secure	3341
and Fair Enforcement for Mortgage Licensing Act of 2008.	3342

Sec. 5302.01.  The forms set forth in sections 5302.05,	3343
5302.07, 5302.09, 5302.11, 5302.12, 5302.14, and 5302.17, and	3344
5302.22 of the Revised Code may be used and shall be sufficient	3345
for their respective purposes. They shall be known as "Statutory	3346
Forms" and may be referred to as such. They may be altered as	3347
circumstances require, and the authorization of suchthose forms	3348
shall not prevent the use of other forms. Wherever the phrases	3349
defined in sections 5302.06, 5302.08, 5302.10, and 5302.13 of the	3350
Revised Code are to be incorporated in instruments by reference,	3351
the method of incorporation as indicated in the statutory forms	3352
shall be sufficient, but shall not preclude other methods.	3353

Sec. 5302.02.  The rules and definitions contained in	3354
sections 5302.03, 5302.04, 5302.06, 5302.08, 5302.10, 5302.13,	3355
5302.17, 5302.18, 5302.19, 5302.20, and 5302.21, and 5302.22 of	3356
the Revised Code apply to all deeds or other instruments relating	3357
to real estate, whether the statutory forms or other forms are	3358
used, where the instruments are executed on or after October 1,	3359
1965, or, in relation to the. The rules and definitions contained	3360
in section 5302.22 of the Revised Code, as it existed prior to the	3361
effective date of this amendment, apply to instruments executed on	3362
or after August 29, 2000, and prior to the effective date of this	3363
amendment. The rules and definitions contained in section 5302.22	3364
of the Revised Code apply to instruments executed on or after the	3365
effective date of this amendment.	3366

Sec. 5302.22.  (A) A deed conveying any interest in real	3367
property, and in substance following the form set forth in this	3368
division, when duly executed in accordance with Chapter 5301. of	3369
the Revised Code and recorded in the office of the county	3370
recorder, creates a present interest as sole owner or as a tenant	3371
in common in the grantee and creates a transfer on death interest	3372
in the beneficiary or beneficiaries. Upon the death of the	3373
grantee, the deed vests the interest of the decedent in the	3374
beneficiary or beneficiaries. The deed described in this division	3375
shall in substance conform to the following form:	3376

"Transfer on Death Deed	3377

.................... (marital status), of ........... County,	3378
.................... (for valuable consideration paid, if any),	3379
grant(s) (with covenants, if any), to .................... whose	3380
tax mailing address is ...................., transfer on death to	3381
...................., beneficiary(s), the following real property:	3382

(Description of land or interest in land and encumbrances,	3383
reservations, and exceptions, if any.)	3384

Prior Instrument Reference: .............................

3385

...................., wife (husband) of the grantor, releases all	3386
rights of dower therein.	3387

Executed this ............... day of ................

3388

	...............................		3389
	(Signature of Grantor)		3390

(Execution in accordance with Chapter 5301. of the Revised	3391
Code)"As used in sections 5302.22, 5302.222, 5302.23, and 5302.24	3392
of the Revised Code:	3393

(1) "Affidavit of confirmation" means an affidavit executed	3394
under division (A) of section 5302.222 of the Revised Code.	3395

(2) "Survivorship tenancy" means an ownership of real	3396
property or any interest in real property by two or more persons	3397
that is created by executing a deed pursuant to section 5302.17 of	3398
the Revised Code.	3399

(3) "Survivorship tenant" means one of the owners of real	3400
property or any interest in real property in a survivorship	3401
tenancy.	3402

(4) "Tenants by the entireties" mean only those persons who	3403
are vested as tenants in an estate by the entireties with	3404
survivorship pursuant to any deed recorded between February 9,	3405
1972, and April 3, 1985, under section 5302.17 of the Revised Code	3406
as it existed during that period of time. Nothing in sections	3407
5302.22, 5302.222, 5302.23, and 5302.24 of the Revised Code	3408
authorizes the creation of a tenancy by the entireties or	3409
recognizes a tenancy by the entireties created outside that period	3410
of time.	3411

(5) "Transfer on death designation affidavit" means an	3412
affidavit executed under this section.	3413

(6) "Transfer on death beneficiary or beneficiaries" means	3414
the beneficiary or beneficiaries designated in a transfer on death	3415
designation affidavit.	3416

(B) Any personindividual who, under the Revised Code or the	3417
common law of this state, owns real property or any interest in	3418
real property as a sole owner or, as a tenant in common, or as a	3419
survivorship tenant, or together with the individual's spouse owns	3420
an indivisible interest in real property as tenants by the	3421
entireties, may create andesignate the entire interest, or any	3422
specified part that is less than the entire interest, in thethat	3423
real property as transferable on death to a designated beneficiary	3424
or beneficiaries by executing and recording a deed, together with	3425
the individual's spouse, if any, a transfer on death designation	3426
affidavit as provided in this section conveying the person's	3427
entire, separate interest in the real property to one or more	3428
individuals, including the grantor, and designating one or more	3429
other persons, identified in the deed by name, as transfer on	3430
death beneficiaries.	3431

A deed conveying an interest in real property that includes a	3432
transfer on death beneficiary designation need not be supported by	3433
consideration and need not be delivered to the transfer on death	3434
beneficiary to be effective.If the affidavit is executed by an	3435
individual together with the individual's spouse, if any, the	3436
dower rights of the spouse are subordinate to the vesting of title	3437
to the interest in the real property in the transfer on death	3438
beneficiary or beneficiaries designated under this section. The	3439
affidavit shall be recorded in the office of the county recorder	3440
in the county in which the real property is located, and, when so	3441
recorded, the affidavit or a certified copy of the affidavit shall	3442
be evidence of the transfer on death beneficiary or beneficiaries	3443
so designated in the affidavit insofar as the affidavit affects	3444
title to the real property.	3445

(C) Upon(1) If an individual who owns real property or an	3446
interest in real property as a sole owner or as a tenant in common	3447
executes a transfer on death designation affidavit, upon the death	3448
of that individual, title to the real property or interest in the	3449
real property specified in the affidavit vests in the transfer on	3450
death beneficiary or beneficiaries designated in the affidavit.	3451

(2) If an individual who owns real property or an interest in	3452
real property as a survivorship tenant executes a transfer on	3453
death designation affidavit, upon the death of that individual or	3454
of one but not all of the surviving survivorship tenants, title to	3455
the real property or interest in the real property specified in	3456
the affidavit vests in the surviving survivorship tenant or	3457
tenants. Upon the death of the last surviving survivorship tenant,	3458
title to the real property or interest in the real property vests	3459
in the transfer on death beneficiary or beneficiaries designated	3460
in the affidavit, subject to division (B)(7) of section 5302.23 of	3461
the Revised Code.	3462

(3) If an individual who together with the individual's	3463
spouse owns an indivisible interest in real property as tenants by	3464
the entireties executes a transfer on death designation affidavit,	3465
upon the death of that individual, title to the real property or	3466
interest in the real property vests in the remaining tenant by the	3467
entireties. Upon the death of the remaining tenant by the	3468
entireties, title to the real property or interest in the real	3469
property vests in the transfer on death beneficiary or	3470
beneficiaries designated in the affidavit, subject to division	3471
(B)(7) of section 5302.23 of the Revised Code.	3472

(D) A transfer on death designation affidavit shall be	3473
verified before any person authorized to administer oaths and	3474
shall include all of the following:	3475

(1) A description of the real property the title to which is	3476
affected by the affidavit and a reference to an instrument of	3477
record containing that description;	3478

(2) If less than the entire interest in the real property is	3479
to be transferred on death under the affidavit, a statement of the	3480
specific interest or part of the interest in the real property	3481
that is to be so transferred;	3482

(3) A statement by the individual executing the affidavit	3483
that the individual is the person appearing on the record of the	3484
real property as the owner of the real property or interest in the	3485
real property at the time of the recording of the affidavit and	3486
the marital status of that owner. If the owner is married, the	3487
affidavit shall include a statement by the owner's spouse stating	3488
that the spouse's dower rights are subordinate to the vesting of	3489
title to the real property or interest in the real property in the	3490
transfer on death beneficiary or beneficiaries designated in the	3491
affidavit.	3492

(4) A statement designating one or more persons, identified	3493
by name, as transfer on death beneficiary or beneficiaries.	3494

(E) The county recorder of the county in which a transfer on	3495
death designation affidavit is offered for recording shall receive	3496
the affidavit and cause it to be recorded in the same manner as	3497
deeds are recorded. The county recorder shall collect a fee for	3498
recording the affidavit in the same amount as the fee for	3499
recording deeds. The county recorder shall index the affidavit in	3500
the name of the owner of record of the real property or interest	3501
in the real property who executed the affidavit.	3502

(F) A transfer on death designation affidavit need not be	3503
supported by consideration and need not be delivered to the	3504
transfer on death beneficiary or beneficiaries designated in the	3505
affidavit to be effective. However, in order to be effective, that	3506
affidavit shall be recorded with the county recorder as described	3507
in this section prior to the death of the individual who executed	3508
the affidavit.	3509

(G) Subject to division (C) of this section, upon the death	3510
of any individual who owns real property or an interest in real	3511
property that is subject to a transfer on death beneficiary	3512
designation made under a transfer on death deeddesignation	3513
affidavit as provided in this section, the deceased owner'sthat	3514
real property or interest in real property of the deceased owner	3515
shall be transferred only to the transfer on death beneficiary or	3516
beneficiaries who are identified in the deedaffidavit by name and	3517
who survive the deceased owner or that are in existence on the	3518
date of death of the deceased owner. The transfer of the deceased	3519
owner's interest shall be recorded by presenting to the county	3520
auditor and filing with the county recorder an affidavit,	3521
accompanied by a certified copy of a death certificate for the	3522
deceased owner. The affidavit shall recite the name and address of	3523
each designated transfer on death beneficiary who survived the	3524
deceased owner or that is in existence on the date of the deceased	3525
owner's death, the date of the deceased owner's death, a	3526
description of the subject real property or interest in real	3527
property, and the names of each designated transfer on death	3528
beneficiary who has not survived the deceased owner or that is not	3529
in existence on the date of the deceased owner's death. The	3530
affidavit shall be accompanied by a certified copy of a death	3531
certificate for each designated transfer on death beneficiary who	3532
has not survived the deceased owner. The county recorder shall	3533
make an index reference to any affidavit so filed in the record of	3534
deeds.	3535

Upon the death of any individual holding real property or an	3536
interest in real property that is subject to a transfer on death	3537
beneficiary designation made under a transfer on death deed as	3538
provided in this section, if the title to the real property is	3539
registered pursuant to Chapter 5309. of the Revised Code, the	3540
procedure for the transfer of the interest of the deceased owner	3541
shall be pursuant to section 5309.081 of the Revised CodeFor	3542
purposes of this division, if a natural or legal person designated	3543
by name in the affidavit as a transfer on death beneficiary or as	3544
a contingent transfer on death beneficiary as provided in division	3545
(B)(2) of section 5302.23 of the Revised Code solely in that	3546
person's capacity as a trustee of a trust has died, has resigned,	3547
or otherwise has been replaced by a successor trustee of the trust	3548
on the date of death of the deceased owner, the successor trustee	3549
of the trust shall be considered the transfer on death beneficiary	3550
or contingent transfer on death beneficiary in existence on the	3551
date of death of the deceased owner in full compliance with this	3552
division, notwithstanding that the successor trustee is not named	3553
as a transfer on death beneficiary or contingent transfer on death	3554
beneficiary in the affidavit.	3555

(H) Any person who knowingly makes any false statement in a	3556
transfer on death designation affidavit is guilty of falsification	3557
under division (A)(6) of section 2921.13 of the Revised Code.	3558

Sec. 5302.221. (A) As used in this section:

3559

"Estate" has the same meaning as in section 5111.11 of the	3560
Revised Code.	3561

"Medicaid estate recovery program" means the program	3562
instituted under section 5111.11 of the Revised Code.	3563

(B) The administrator of the medicaid estate recovery program	3564
shall prescribe a form on which a beneficiary of a transfer on	3565
death deeddesignation affidavit as provided in section 5302.22 of	3566
the Revised Code, who survives the deceased owner of the real	3567
property or an interest in the real property or that is in	3568
existence on the date of death of the deceased owner, or such a	3569
that beneficiary's representative is to indicate both of the	3570
following:	3571

(1) Whether the deceased owner was either of the following:

3572

(a) A decedent subject to the medicaid estate recovery	3573
program;	3574

(b) The spouse of a decedent subject to the medicaid estate	3575
recovery program.	3576

(2) Whether the real property or interest in the real	3577
property was part of the estate of a decedent subject to the	3578
medicaid estate recovery program.	3579

(C) A county recorder shall obtain a properly completed form	3580
prescribed under division (B) of this section from the beneficiary	3581
of a transfer on death deeddesignation affidavit or the	3582
beneficiary's representative and send a copy of the form to the	3583
administrator of the medicaid estate recovery program before	3584
recording the transfer of the real property or interest in the	3585
real property under division (C) of section 5302.225302.222 of	3586
the Revised Code.	3587

Sec. 5302.222. (A) The transfer of a deceased owner's real	3588
property or interest in real property as designated in a transfer	3589
on death designation affidavit provided in section 5302.22 of the	3590
Revised Code shall be recorded by presenting to the county auditor	3591
of the county in which the real property is located and filing	3592
with the county recorder of that county an affidavit of	3593
confirmation executed by any transfer on death beneficiary to whom	3594
the transfer is made. The affidavit of confirmation shall be	3595
verified before a person authorized to administer oaths and shall	3596
be accompanied by a certified copy of the death certificate for	3597
the deceased owner. The affidavit of confirmation shall contain	3598
all of the following information:	3599

(1) The name and address of each transfer on death	3600
beneficiary who survived the deceased owner or that is in	3601
existence on the date of death of the deceased owner. If a named	3602
beneficiary was designated as a transfer on death beneficiary	3603
solely in that person's capacity as a trustee of a trust and that	3604
trustee subsequently has been replaced by a successor trustee, the	3605
affidavit of confirmation shall include the name and address of	3606
the successor trustee and shall be accompanied by a copy of the	3607
recorded successor trustee affidavit described in section 5302.171	3608
of the Revised Code.	3609

(2) The date of death of the deceased owner;

3610

(3) A description of the subject real property or interest in	3611
real property;	3612

(4) The name of each transfer on death beneficiary who has	3613
not survived the deceased owner or that is not in existence on the	3614
date of death of the deceased owner.	3615

(B) The affidavit of confirmation shall be accompanied by a	3616
certified copy of the death certificate for each transfer on death	3617
beneficiary who has not survived the deceased owner.	3618

(C) The county recorder shall make an index reference in the	3619
record of deeds to any affidavit of confirmation filed with the	3620
county recorder under this section.	3621

(D) Upon the death of any individual holding real property or	3622
an interest in real property that is the subject of a transfer on	3623
death designation affidavit as provided in section 5302.22 of the	3624
Revised Code, if the title to the real property is registered	3625
pursuant to Chapter 5309. of the Revised Code, the procedure for	3626
the transfer of the interest of the deceased owner to the transfer	3627
on death beneficiary or beneficiaries designated in the affidavit	3628
shall be pursuant to section 5309.081 of the Revised Code.	3629

(E) Any person who knowingly makes any false statement in an	3630
affidavit of confirmation is guilty of falsification under	3631
division (A)(6) of section 2921.13 of the Revised Code.	3632

Sec. 5302.23.  (A) Any deedaffidavit containing language	3633
that shows a clear intent to designate a transfer on death	3634
beneficiary shall be liberally construed to do so.	3635

(B) Real property or an interest in real property that is the	3636
subject toof a transfer on death beneficiary designation	3637
affidavit as provided in section 5302.22 of the Revised Code or as	3638
described in division (A) of this section has all of the following	3639
characteristics and ramifications:	3640

(1) An interest of a deceased owner shall be transferred to	3641
the transfer on death beneficiaries who are identified in the deed	3642
affidavit by name and who survive the deceased owner or that are	3643
in existence on the date of the deceased owner's death. If there	3644
is a designation of more than one transfer on death beneficiary,	3645
the beneficiaries shall take title into the interest in equal	3646
shares as tenants in common, unless the deceased owner has	3647
specifically designated other than equal shares or has designated	3648
that the beneficiaries take title as survivorship tenants, subject	3649
to division (B)(3) of this section. If a transfer on death	3650
beneficiary does not survive the deceased owner or is not in	3651
existence on the date of the deceased owner's death, and the	3652
deceased owner has designated one or more persons as contingent	3653
transfer on death beneficiaries as provided in division (B)(2) of	3654
this section, the designated contingent transfer on death	3655
beneficiaries shall take the same interest that would have passed	3656
to the transfer on death beneficiary had that transfer on death	3657
beneficiary survived the deceased owner or been in existence on	3658
the date of the deceased owner's death. If none of the designated	3659
transfer on death beneficiaries survives the deceased owner or is	3660
in existence on the date of the deceased owner's death and no	3661
contingent transfer on death beneficiaries have been designated	3662
or, have survived the deceased owner, or are in existence on the	3663
date of death of the deceased owner, the interest of the deceased	3664
owner shall be distributed as part of the probate estate of the	3665
deceased owner of the interest. If there are two or more transfer	3666
on death beneficiaries and the deceased owner has designated that	3667
title to the interest in the real property be taken by those	3668
beneficiaries as survivorship tenants, no designated contingent	3669
transfer on death beneficiaries shall take title to the interest	3670
unless none of the transfer on death beneficiaries survives the	3671
deceased owner on the date of death of the deceased owner.	3672

(2) A transfer on death deeddesignation affidavit may	3673
contain a designation of one or more persons as contingent	3674
transfer on death beneficiaries, who shall take the interest of	3675
the deceased owner that would otherwise have passed to the	3676
designated transfer on death beneficiary if that named designated	3677
transfer on death beneficiary does not survive the deceased owner	3678
or is not in existence on the date of death of the deceased owner.	3679
Persons designated as contingent transfer on death beneficiaries	3680
shall be identified in the deedaffidavit by name.	3681

(3) Any transfer on death beneficiary or contingent transfer	3682
on death beneficiary may be a natural or legal person, including,	3683
but not limited to, a bank as trustee of a trust, except that if	3684
two or more transfer on death beneficiaries are designated as	3685
survivorship tenants, all of those beneficiaries shall be natural	3686
persons and if two or more contingent transfer on death	3687
beneficiaries are designated as survivorship tenants, all of those	3688
contingent beneficiaries shall be natural persons. A natural	3689
person who is designated a transfer on death beneficiary or	3690
contingent transfer on death beneficiary solely in that natural	3691
person's capacity as a trustee of a trust is not considered a	3692
natural person for purposes of designating the transfer on death	3693
beneficiaries or contingent transfer on death beneficiaries as	3694
survivorship tenants under division (B)(3) of this section.	3695

(4) The designation of a transfer on death beneficiary has no	3696
effect on the present ownership of real property, and a person	3697
designated as a transfer on death beneficiary has no interest in	3698
the real property until the death of the owner of the interest.	3699

(4)(5) The designation in a deedtransfer on death	3700
designation affidavit of any transfer on death beneficiary may be	3701
revoked or changed at any time, without the consent of that	3702
designated transfer on death beneficiary, by the owner of the	3703
interest, by the surviving survivorship tenants of the interest,	3704
or by the remaining tenant by the entireties of the interest, by	3705
executing in accordance with Chapter 5301. of the Revised Code and	3706
recording, prior to the death of the owner of the interest, of the	3707
surviving survivorship tenants of the interest, or of the	3708
remaining tenant by the entireties of the interest, as the case	3709
may be, a deed conveying the grantor's entire, separate interest	3710
in the real property to one or more persons, including the	3711
grantor, with or without the designation of another transfer on	3712
death beneficiarynew transfer on death designation affidavit	3713
pursuant to section 5302.22 of the Revised Code stating the	3714
revocation or change in that designation. The new transfer on	3715
death designation affidavit shall automatically supersede and	3716
revoke all prior recorded transfer on death designation affidavits	3717
with respect to the real property or the interest in real property	3718
identified in the new affidavit, provided that the prior recorded	3719
affidavit was executed before the later recorded affidavit.	3720

(5)(6) A fee simple title or any fractional interest in a fee	3721
simple title may be subjected to a transfer on death beneficiary	3722
designation.	3723

(6)(7)(a) A designated transfer on death beneficiary takes	3724
only the interest that the deceased owner or owners of the	3725
interest held on the date of death, subject to all encumbrances,	3726
reservations, and exceptions.	3727

(7)(b) If the owners hold title to the interest in a	3728
survivorship tenancy, the death of all except the last	3729
survivorship tenant automatically terminates and nullifies any	3730
transfer on death beneficiary designations made solely by the	3731
deceased survivorship tenant or tenants without joinder by the	3732
last surviving survivorship tenant. The termination or	3733
nullification of any transfer on death beneficiary designations	3734
under division (B)(7)(b) of this section is effective as of the	3735
date of death of a deceased survivorship tenant. No affirmative	3736
act of revocation is required of the last surviving survivorship	3737
tenant for the termination or nullification of the transfer on	3738
death beneficiary designations to occur as described in division	3739
(B)(7)(b) of this section. If the last surviving survivorship	3740
tenant dies with no transfer on death beneficiary designation, the	3741
entire interest of that last surviving survivorship tenant shall	3742
be distributed as part of the tenant's probate estate.	3743

(c) If the owners hold title to the interest in a tenancy by	3744
the entireties, the death of the first tenant by the entireties	3745
automatically terminates and nullifies any transfer on death	3746
beneficiary designations made solely by that deceased first tenant	3747
without joinder by the remaining tenant by the entireties. The	3748
termination or nullification of any transfer on death beneficiary	3749
designations under division (B)(7)(c) of this section is effective	3750
as of the date of death of the first tenant by the entireties. No	3751
affirmative act of revocation is required of the remaining tenant	3752
by the entireties for the termination or nullification of the	3753
transfer on death beneficiary designations to occur as described	3754
in division (B)(7)(c) of this section. If the remaining tenant by	3755
the entireties dies with no transfer on death beneficiary	3756
designation, the entire interest of that remaining tenant shall be	3757
distributed as part of the tenant's probate estate.	3758

(8) No rights of any lienholder, including, but not limited	3759
to, any mortgagee, judgment creditor, or mechanic's lien holder,	3760
shall be affected by the designation of a transfer on death	3761
beneficiary pursuant to this section and section 5302.22 of the	3762
Revised Code. If any lienholder takes action to enforce the lien,	3763
by foreclosure or otherwise through a court proceeding, it is not	3764
necessary to join theany transfer on death beneficiary as a party	3765
defendant in the action unless the transfer on death beneficiary	3766
has another interest in the real property that is currently	3767
vested.	3768

(8)(9) Any transfer on death of real property or of an	3769
interest in real property that results from a deedtransfer on	3770
death designation affidavit designating a transfer on death	3771
beneficiary is not testamentary. That transfer on death shall	3772
supersede any attempted testate or intestate transfer of that real	3773
property or interest in real property.	3774

(10) The execution and recording of a transfer on death	3775
designation affidavit shall be effective to terminate the	3776
designation of a transfer on death beneficiary in a transfer on	3777
death deed involving the same real property or interest in real	3778
property and recorded prior to the effective date of this section.	3779

(11) The execution and recording of a transfer on death	3780
designation affidavit shall be effective to bar the vesting of any	3781
rights of dower in a subsequent spouse of the owner of the real	3782
property who executed that affidavit unless the affidavit is	3783
revoked or changed.	3784

Sec. 5302.24. Sections 5302.22, 5302.222, and 5302.23 of the	3785
Revised Code do not affect any deed that was executed and recorded	3786
prior to the effective date of this section, or any transfer on	3787
death beneficiary designation made, pursuant to section 5302.22 of	3788
the Revised Code as it existed prior to the effective date of this	3789
section. If that deed or designation is valid on the day prior to	3790
the effective date of this section, the deed or designation	3791
continues to be valid on and after the effective date of this	3792
section. A grantee of that deed need not execute a transfer on	3793
death designation affidavit that designates the same transfer on	3794
death beneficiary or beneficiaries as in the deed unless the	3795
grantee chooses to do so.	3796

Sec. 5703.021. (A) There is hereby established a small claims	3797
division of the board of tax appeals.	3798

(B) The small claims division shall have jurisdiction over	3799
any proceeding that is commenced under any of the following:	3800

(1) Section 5717.01 of the Revised Code in which the property	3801
at issue qualifies for the partial tax exemption described in	3802
section 319.302 of the Revised Code;	3803

(2) Section 5717.011 or 5717.02 of the Revised Code if the	3804
amount in controversy claimed by the taxpayer does not exceed ten	3805
thousand dollars exclusive of interest and penalty. The board by	3806
rule may modify the jurisdictional dollar threshold for cases	3807
qualifying for the small claims division under division (B)(2) of	3808
this section.	3809

(C)(1) Notwithstanding division (B) of this section, the	3810
board shall reassign to the regular docket an appeal that is	3811
initially assigned to the small claims division if either of the	3812
following applies:	3813

(a) A party requests the reassignment.

3814

(b) The appeal presents an issue of public or great general	3815
interest or presents a constitutional issue.	3816

(2) The board shall reassign to the regular docket an appeal	3817
that is initially assigned to the small claims division if it	3818
determines that the appeal does not meet the requirements of	3819
division (B) of this section.	3820

(3) The board may provide by rule for a reasonable time	3821
within which a party may request the reassignment of an appeal	3822
under division (C)(1)(a) of this section.	3823

(D) The board may reassign to the small claims docket an	3824
appeal that is originally assigned to the regular docket if the	3825
small claims division has jurisdiction over the appeal under	3826
division (B) of this section. The reassignment shall be made with	3827
the consent of all of the parties.	3828

(E) The board of tax appeals shall adopt rules to implement	3829
procedures to provide informal review of the taxpayers' appeals in	3830
the small claims division. The procedures may include telephonic	3831
hearings.	3832

(F) A decision and order of the small claims division shall	3833
be conclusive upon all of the parties and shall not be appealed.	3834
Notwithstanding division (C) of section 5703.02 of the Revised	3835
Code that requires a record of the proceedings, the decision and	3836
order of the small claims division shall not be considered as	3837
precedent in any other case, hearing, or proceeding.	3838

(G) The appearance of an attorney licensed to practice law in	3839
this state on behalf of any party in the small claims division is	3840
permitted but not required. A person other than a natural person	3841
that is a real party in interest as a taxpayer or claimant, or an	3842
entity or organization that may participate in the appeal pursuant	3843
to law, may commence an appeal in the small claims division or	3844
appear in the appeal proceedings through an attorney licensed to	3845
practice law in this state. That entity or organization, through	3846
any bona fide officer, partner, member, trustee, or salaried	3847
employee, may file and present its claim or defense in any appeal	3848
in the small claims division, provided that the entity or	3849
organization, in the absence of representation by an attorney	3850
licensed to practice law in this state, does not engage in	3851
cross-examination, argument, or other acts of advocacy. The board	3852
by rule may provide additional guidelines applicable to the	3853
practice before the board.	3854

Sec. 5703.81. There is hereby created in the state treasury	3855
the tax appeals administration fund. All money to the credit of	3856
the fund shall be used to defray the costs incurred by the board	3857
of tax appeals in the performance of its duties.	3858

Each fiscal year between the first and fifteenth days of	3859
July, the tax commissioner shall compute the following amounts for	3860
the property in each taxing district in each county, and certify	3861
to the director of budget and management the sum of those amounts	3862
for all taxing districts in all counties: for fiscal year 2010 and	3863
thereafter, one-tenth of one per cent of the total amount by which	3864
taxes charged against real property on the general tax list of	3865
real and public utility property were reduced under section	3866
319.302 of the Revised Code for the preceding tax year.	3867

After receiving the tax commissioner's certification, the	3868
director of budget and management shall transfer from the general	3869
revenue fund to the tax appeals administration fund one-fourth of	3870
the amount certified on or before each of the following days: the	3871
first days of August, November, February, and May.	3872

On or before the thirtieth day of June of the fiscal year,	3873
the tax commissioner shall certify to the director of budget and	3874
management the sum of the amounts by which the amounts computed	3875
for a taxing district under this section exceeded the	3876
distributions to the taxing district under division (F) of section	3877
321.24 of the Revised Code, and the director shall transfer that	3878
sum from the tax appeals administration fund to the general	3879
revenue fund.	3880

Sec. 5717.01. (A) An appeal from a decision of a county	3881
board of revision may be taken to the board of tax appeals within	3882
thirty days after notice of the decision of the county board of	3883
revision is mailed as provided in division (A) of section 5715.20	3884
of the Revised Code. Such an appeal may be taken by the county	3885
auditor, the tax commissioner, or any board, legislative	3886
authority, public official, or taxpayer authorized by section	3887
5715.19 of the Revised Code to file complaints against valuations	3888
or assessments with the auditor. SuchThat appeal shall be taken	3889
by the filing of a notice of appeal, in person or by certified	3890
mail, express mail, or authorized delivery service, with the board	3891
of tax appeals and with the county board of revision. If notice of	3892
appeal is filed by certified mail, express mail, or authorized	3893
delivery service as provided in section 5703.056 of the Revised	3894
Code, the date of the United States postmark placed on the	3895
sender's receipt by the postal service or the date of receipt	3896
recorded by the authorized delivery service shall be treated as	3897
the date of filing. Upon receipt of suchthe notice of appeal such	3898
the, county board of revision shall by certified mail notify all	3899
persons thereof who were parties to the proceeding before such	3900
that county board of revision, and shall file proof of suchthat	3901
notice with the board of tax appeals. The county board of revision	3902
shall thereupon certify to the board of tax appeals a transcript	3903
of the record of the proceedings of the county board of revision	3904
pertaining to the original complaint, and all evidence offered in	3905
connection therewith. SuchThe appeal may be heard by the board of	3906
tax appeals at its offices in Columbus or in the county where the	3907
property is listed for taxation, or the board of tax appeals may	3908
cause its examiners to conduct suchthe hearing and to report to	3909
it their findings for affirmation or rejection.	3910

(B) The board of tax appeals may order the appeal to be heard	3911
on the record and the evidence certified to it by the county board	3912
of revision, or it may order the hearing of additional evidence,	3913
and it may make suchan investigation concerning the appeal as	3914
that it deems proper.	3915

(C) An appeal that qualifies under section 5703.021 of the	3916
Revised Code may proceed in the small claims division of the board	3917
of tax appeals pursuant to that section.	3918

Sec. 5717.011.  (A) As used in this chapter, "tax	3919
administrator" has the same meaning as in section 718.01 of the	3920
Revised Code.	3921

(B) Appeals from a municipal board of appeal created under	3922
section 718.11 of the Revised Code may be taken by the taxpayer or	3923
the tax administrator to the board of tax appeals or may be taken	3924
by the taxpayer or the tax administrator to a court of common	3925
pleas as otherwise provided by law. If the taxpayer or the tax	3926
administrator elects to make an appeal to the board of tax appeals	3927
or court of common pleas, the appeal shall be taken by the filing	3928
of a notice of appeal with the board of tax appeals or court of	3929
common pleas, the municipal board of appeal, and the opposing	3930
party. The notice of appeal shall be filed within sixty days after	3931
the day the appellant receives notice of the decision issued under	3932
section 718.11 of the Revised Code. The notice of appeal may be	3933
filed in person or by certified mail, express mail, or authorized	3934
delivery service as provided in section 5703.056 of the Revised	3935
Code. If the notice of appeal is filed by certified mail, express	3936
mail, or authorized delivery service as provided in section	3937
5703.056 of the Revised Code, the date of the United States	3938
postmark placed on the sender's receipt by the postal service or	3939
the date of receipt recorded by the authorized delivery service	3940
shall be treated as the date of filing. The notice of appeal shall	3941
have attached theretoto it and incorporated thereinin it by	3942
reference a true copy of the decision issued under section 718.11	3943
of the Revised Code and shall specify the errors thereinin the	3944
decision complained of, but failure to attach a copy of such	3945
notice and to incorporate it by reference in the notice of appeal	3946
does not invalidate the appeal.	3947

(C) Upon the filing of a notice of appeal with the board of	3948
tax appeals, the municipal board of appeal shall certify to the	3949
board of tax appeals a transcript of the record of the proceedings	3950
before it, together with all evidence considered by it in	3951
connection therewithwith the proceedings. SuchThe appeals may be	3952
heard by the board at its office in Columbus or in the county	3953
where the appellant resides, or it may cause its examiners to	3954
conduct suchthe hearings and to report to it their findings for	3955
affirmation or rejection. The board may order the appeal to be	3956
heard upon the record and the evidence certified to it by the	3957
administrator, but upon the application of any interested party	3958
the board shall order the hearing of additional evidence, and the	3959
board may make suchan investigation concerning the appeal asthat	3960
it considers proper.	3961

(D) If an issue being appealed under this section is	3962
addressed in a municipal corporation's ordinance or regulation,	3963
the tax administrator, upon the request of the board of tax	3964
appeals, shall provide a copy of the ordinance or regulation to	3965
the board of tax appeals.	3966

(E) An appeal that qualifies under section 5703.021 of the	3967
Revised Code may proceed in the small claims division of the board	3968
of tax appeals pursuant to that section.	3969

Sec. 5717.02. (A) Except as otherwise provided by law,	3970
appeals from final determinations by the tax commissioner of any	3971
preliminary, amended, or final tax assessments, reassessments,	3972
valuations, determinations, findings, computations, or orders made	3973
by the commissioner may be taken to the board of tax appeals by	3974
the taxpayer, by the person to whom notice of the tax assessment,	3975
reassessment, valuation, determination, finding, computation, or	3976
order by the commissioner is required by law to be given, by the	3977
director of budget and management if the revenues affected by such	3978
that decision would accrue primarily to the state treasury, or by	3979
the county auditors of the counties to the undivided general tax	3980
funds of which the revenues affected by suchthat decision would	3981
primarily accrue. Appeals from the redetermination by the director	3982
of development under division (B) of section 5709.64 or division	3983
(A) of section 5709.66 of the Revised Code may be taken to the	3984
board of tax appeals by the enterprise to which notice of the	3985
redetermination is required by law to be given. Appeals from a	3986
decision of the tax commissioner concerning an application for a	3987
property tax exemption may be taken to the board of tax appeals by	3988
a school district that filed a statement concerning suchthat	3989
application under division (C) of section 5715.27 of the Revised	3990
Code. Appeals from a redetermination by the director of job and	3991
family services under section 5733.42 of the Revised Code may be	3992
taken by the person to which the notice of the redetermination is	3993
required by law to be given under that section.	3994

Such(B) The appeals under division (A) of this section shall	3995
be taken by the filing of a notice of appeal with the board, and	3996
with the tax commissioner if the tax commissioner's action is the	3997
subject of the appeal, with the director of development if that	3998
director's action is the subject of the appeal, or with the	3999
director of job and family services if that director's action is	4000
the subject of the appeal. The notice of appeal shall be filed	4001
within sixty days after service of the notice of the tax	4002
assessment, reassessment, valuation, determination, finding,	4003
computation, or order by the commissioner or redetermination by	4004
the director has been given as provided in section 5703.37,	4005
5709.64, 5709.66, or 5733.42 of the Revised Code. The notice of	4006
such appeal may be filed in person or by certified mail, express	4007
mail, or authorized delivery service. If the notice of such appeal	4008
is filed by certified mail, express mail, or authorized delivery	4009
service as provided in section 5703.056 of the Revised Code, the	4010
date of the United States postmark placed on the sender's receipt	4011
by the postal service or the date of receipt recorded by the	4012
authorized delivery service shall be treated as the date of	4013
filing. The notice of appeal shall have attached theretoto it and	4014
incorporated thereinin it by reference a true copy of the notice	4015
sent by the commissioner or director to the taxpayer, enterprise,	4016
or other person of the final determination or redetermination	4017
complained of, and shall also specify the errors therein	4018
complained of, but failure to attach a copy of suchthat notice	4019
and to incorporate it by reference in the notice of appeal does	4020
not invalidate the appeal.	4021

(C) Upon the filing of a notice of appeal, the tax	4022
commissioner or the director, as appropriate, shall certify to the	4023
board a transcript of the record of the proceedings before the	4024
commissioner or director, together with all evidence considered by	4025
the commissioner or director in connection therewithwith the	4026
proceedings. SuchThose appeals or applications may be heard by	4027
the board at its office in Columbus or in the county where the	4028
appellant resides, or it may cause its examiners to conduct such	4029
the hearings and to report to it their findings for affirmation or	4030
rejection. The board shall institute procedures, including the	4031
conduct of discovery, to control and manage appeals governed by	4032
this section. Those procedures shall include a requirement that	4033
upon the filing of the transcript of the record in an appeal, the	4034
board through its attorney examiners shall establish a case	4035
management schedule in consultation with the parties or their	4036
counsel.	4037

(D) The board may order the appeal to be heard upon the	4038
record and the evidence certified to it by the commissioner or	4039
director, but upon the application of any interested party the	4040
board shall order the hearing of additional evidence, and it may	4041
make suchan investigation concerning the appeal asthat it	4042
considers proper.	4043

(E) An appeal that qualifies under section 5703.021 of the	4044
Revised Code may proceed in the small claims division of the board	4045
of tax appeals pursuant to that section.	4046

Sec. 5717.04. (A)(1) The proceeding to obtain a reversal,	4047
vacation, or modification of a decision of the board of tax	4048
appeals shall be by appeal to the supreme court or the court of	4049
appeals for the county in which the property taxed is situate	4050
situated or in which the taxpayer resides. If the taxpayer is a	4051
corporation, then the proceeding to obtain suchthat reversal,	4052
vacation, or modification shall be by appeal to the supreme court	4053
or to the court of appeals for the county in which the property	4054
taxed is situatesituated, or the county of residence of the agent	4055
for service of process, tax notices, or demands, or the county in	4056
which the corporation has its principal place of business. In all	4057
other instances, the proceeding to obtain suchthe reversal,	4058
vacation, or modification shall be by appeal to the court of	4059
appeals for Franklin county.	4060

(2) Appeals from decisions of the board determining appeals	4061
from decisions of county boards of revision may be instituted by	4062
any of the persons who were parties to the appeal before the board	4063
of tax appeals, by the person in whose name the property involved	4064
in the appeal is listed or sought to be listed, if suchthat	4065
person was not a party to the appeal before the board of tax	4066
appeals, or by the county auditor of the county in which the	4067
property involved in the appeal is located.	4068

(3) Appeals from decisions of the board of tax appeals	4069
determining appeals from final determinations by the tax	4070
commissioner of any preliminary, amended, or final tax	4071
assessments, reassessments, valuations, determinations, findings,	4072
computations, or orders made by the commissioner may be instituted	4073
by any of the persons who were parties to the appeal or	4074
application before the board, by the person in whose name the	4075
property is listed or sought to be listed, if the decision	4076
appealed from determines the valuation or liability of property	4077
for taxation and if any suchthat person was not a party to the	4078
appeal or application before the board, by the taxpayer or any	4079
other person to whom the decision of the board appealed from was	4080
by law required to be sent, by the director of budget and	4081
management if the revenue affected by the decision of the board	4082
appealed from would accrue primarily to the state treasury, by the	4083
county auditor of the county to the undivided general tax funds of	4084
which the revenues affected by the decision of the board appealed	4085
from would primarily accrue, or by the tax commissioner.	4086

(4) Appeals from decisions of the board upon all other	4087
appeals or applications filed with and determined by the board may	4088
be instituted by any of the persons who were parties to suchthat	4089
appeal or application before the board, by any persons to whom the	4090
decision of the board appealed from was by law required to be	4091
sent, or by any other person to whom the board sent the decision	4092
appealed from, as authorized by section 5717.03 of the Revised	4093
Code.	4094

Such(5) Notwithstanding divisions (A)(1) to (4) of this	4095
section, a decision or order of the small claims division of the	4096
board of tax appeals shall be conclusive upon all of the parties	4097
and shall not be appealed.	4098

(B)(1) The appeals under division (A) of this section shall	4099
be taken within thirty days after the date of the entry of the	4100
decision of the board on the journal of its proceedings, as	4101
provided by such section 5717.03 of the Revised Code, by the	4102
filing by the appellant of a notice of appeal with the court to	4103
which the appeal is taken and the board. If a timely notice of	4104
appeal is filed by a party, any other party may file a notice of	4105
appeal within ten days of the date on which the first notice of	4106
appeal was filed or within the time otherwise prescribed in this	4107
section, whichever is later. A notice of appeal shall set forth	4108
the decision of the board appealed from and the errors thereinin	4109
the decision complained of. Proof of the filing of suchthat	4110
notice with the board shall be filed with the court to which the	4111
appeal is being taken. The court in which notice of appeal is	4112
first filed shall have exclusive jurisdiction of the appeal.	4113

(2) In all such appeals the tax commissioner or all persons	4114
to whom the decision of the board appealed from is required by	4115
such section 5717.03 of the Revised Code to be sent, other than	4116
the appellant, shall be made appellees. Unless waived, notice of	4117
the appeal shall be served upon all appellees by certified mail.	4118
The prosecuting attorney shall represent the county auditor in any	4119
such appeal in which the auditor is a party.	4120

(3) The board, upon written demand filed by an appellant,	4121
shall within thirty days after the filing of suchthat demand file	4122
with the court to which the appeal is being taken a certified	4123
transcript of the record of the proceedings of the board	4124
pertaining to the decision complained of and the evidence	4125
considered by the board in making suchthat decision.	4126

(C)(1) If upon hearing and consideration of suchthe record	4127
and evidence the court decides that the decision of the board	4128
appealed from is reasonable and lawful it shall affirm the same,	4129
but if the court decides that suchthe decision of the board is	4130
unreasonable or unlawful, the court shall reverse and vacate the	4131
decision or modify it and enter final judgment in accordance with	4132
suchthe modification.	4133

(2) The clerk of the court shall certify the judgment of the	4134
court to the board, which. The board shall certify suchthat	4135
judgment to suchthose public officials or take suchany other	4136
action in connection therewith asthat is required to give effect	4137
to the decision. The "taxpayer" includes any person required to	4138
return any property for taxation.	4139

(3) Any party to the appeal shall have the right to appeal	4140
from the judgment of the court of appeals on questions of law, as	4141
in other cases.	4142

Sec. 5815.36.  (A) As used in this section:

4143

(1) "Disclaimant" means any person, any guardian or personal	4144
representative of a person or estate of a person, or any	4145
attorney-in-fact or agent of a person having a general or specific	4146
authority to act granted in a written instrument, who is any of	4147
the following:	4148

(a) With respect to testamentary instruments and intestate	4149
succession, an heir, next of kin, devisee, legatee, donee, person	4150
succeeding to a disclaimed interest, surviving joint tenant,	4151
surviving tenant by the entireties, surviving tenant of a tenancy	4152
with a right of survivorship, beneficiary under a testamentary	4153
instrument, or person designated to take pursuant to a power of	4154
appointment exercised by a testamentary instrument;	4155

(b) With respect to nontestamentary instruments, a grantee,	4156
donee, person succeeding to a disclaimed interest, surviving joint	4157
tenant, surviving tenant by the entireties, surviving tenant of a	4158
tenancy with a right of survivorship, beneficiary under a	4159
nontestamentary instrument, or person designated to take pursuant	4160
to a power of appointment exercised by a nontestamentary	4161
instrument;	4162

(c) With respect to fiduciary rights, privileges, powers, and	4163
immunities, a fiduciary under a testamentary or nontestamentary	4164
instrument. Division (A)(1)(c) of this section does not authorize	4165
a fiduciary who disclaims fiduciary rights, privileges, powers,	4166
and immunities to cause the rights of any beneficiary to be	4167
disclaimed unless the instrument creating the fiduciary	4168
relationship authorizes the fiduciary to make such a disclaimer.	4169

(d) Any person entitled to take an interest in property upon	4170
the death of a person or upon the occurrence of any other event.	4171

(2) "Personal representative" includes any fiduciary as	4172
defined in section 2109.01 of the Revised Code and any executor,	4173
trustee, guardian, or other person or entity having a fiduciary	4174
relationship with regard to any interest in property passing to	4175
the fiduciary, executor, trustee, guardian, or other person or	4176
entity by reason of a disclaimant's death.	4177

(3) "Property" means all forms of property, real and	4178
personal, tangible and intangible.	4179

(B)(1) A disclaimant, other than a fiduciary under an	4180
instrument who is not authorized by the instrument to disclaim the	4181
interest of a beneficiary, may disclaim, in whole or in part, the	4182
succession to any property by executing and by delivering, filing,	4183
or recording a written disclaimer instrument in the manner	4184
provided in this section.	4185

(2) A disclaimant who is a fiduciary under an instrument may	4186
disclaim, in whole or in part, any right, power, privilege, or	4187
immunity, by executing and by delivering, filing, or recording a	4188
written disclaimer instrument in the manner provided in this	4189
section.	4190

(3) The written instrument of disclaimer shall be signed and	4191
acknowledged by the disclaimant and shall contain all of the	4192
following:	4193

(a) A reference to the donative instrument;

4194

(b) A description of the property, part of property, or	4195
interest disclaimed, and of any fiduciary right, power, privilege,	4196
or immunity disclaimed;	4197

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

4198

(4) The guardian of the estate of a minor or an incompetent,	4199
or the personal representative of a deceased person, whether or	4200
not authorized by the instrument to disclaim, with the consent of	4201
the probate division of the court of common pleas may disclaim, in	4202
whole or in part, the succession to any property, or interest in	4203
property, that the ward, if an adult and competent, or the	4204
deceased, if living, might have disclaimed. The guardian or	4205
personal representative, or any interested person may file an	4206
application with the probate division of the court of common pleas	4207
that has jurisdiction of the estate, asking that the court order	4208
the guardian or personal representative to execute and deliver,	4209
file, or record the disclaimer on behalf of the ward, estate, or	4210
deceased person. The court shall order the guardian or personal	4211
representative to execute and deliver, file, or record the	4212
disclaimer if the court finds, upon hearing after notice to	4213
interested parties and such other persons as the court shall	4214
direct, that:	4215

(a) It is in the best interests of those interested in the	4216
estate of the person and of those who will take the disclaimed	4217
interest;	4218

(b) It would not materially, adversely affect the minor or	4219
incompetent, or the beneficiaries of the estate of the decedent,	4220
taking into consideration other available resources and the age,	4221
probable life expectancy, physical and mental condition, and	4222
present and reasonably anticipated future needs of the minor or	4223
incompetent or the beneficiaries of the estate of the decedent.	4224

A written instrument of disclaimer ordered by the court under	4225
this division shall be executed and be delivered, filed, or	4226
recorded within the time and in the manner in which the person	4227
could have disclaimed if the person were living, an adult, and	4228
competent.	4229

(C) A partial disclaimer of property that is subject to a	4230
burdensome interest created by the donative instrument is not	4231
effective unless the disclaimed property constitutes a gift that	4232
is separate and distinct from undisclaimed gifts.	4233

(D) The disclaimant shall deliver, file, or record the	4234
disclaimer, or cause the same to be done, prior to accepting any	4235
benefits of the disclaimed interest and at any time after the	4236
latest of the following dates:	4237

(1) The effective date of the donative instrument if both the	4238
taker and the taker's interest in the property are finally	4239
ascertained on that date;	4240

(2) The date of the occurrence of the event upon which both	4241
the taker and the taker's interest in the property become finally	4242
ascertainable;	4243

(3) The date on which the disclaimant attains eighteen years	4244
of age or is no longer an incompetent, without tendering or	4245
repaying any benefit received while the disclaimant was under	4246
eighteen years of age or an incompetent, and even if a guardian of	4247
a minor or incompetent had filed an application pursuant to	4248
division (B)(4) of this section and the probate division of the	4249
court of common pleas involved did not consent to the guardian	4250
executing a disclaimer.	4251

(E) No disclaimer instrument is effective under this section	4252
if either of the following applies under the terms of the	4253
disclaimer instrument:	4254

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

4255

(2) The disclaimant may transfer, or direct to be	4256
transferred, to self the entire legal and equitable ownership of	4257
the property subject to the disclaimer instrument.	4258

(F)(1) Subject to division (F)(2) of this section, if the	4259
interest disclaimed is created by a nontestamentary instrument,	4260
including, but not limited to, a transfer on death designation	4261
affidavit pursuant to section 5302.22 of the Revised Code, the	4262
disclaimer instrument shall be delivered personally or by	4263
certified mail to the trustee or other person who has legal title	4264
to, or possession of, the property disclaimed. If the interest	4265
disclaimed is created by a transfer on death designation affidavit	4266
pursuant to section 5302.22 of the Revised Code, the disclaimer	4267
instrument shall be filed with the county recorder of the county	4268
in which the real property that is the subject of that affidavit	4269
is located.	4270

(2) If the interest disclaimed is created by a testamentary	4271
instrument, by intestate succession, by a transfer on death deed	4272
pursuant to section 5302.22 of the Revised Code, or by a	4273
certificate of title to a motor vehicle, watercraft, or outboard	4274
motor that evidences ownership of the motor vehicle, watercraft,	4275
or outboard motor that is transferable on death pursuant to	4276
section 2131.13 of the Revised Code, the disclaimer instrument	4277
shall be filed in the probate division of the court of common	4278
pleas in the county in which proceedings for the administration of	4279
the decedent's estate have been commenced, and an executed copy of	4280
the disclaimer instrument shall be delivered personally or by	4281
certified mail to the personal representative of the decedent's	4282
estate.	4283

(3) If no proceedings for the administration of the	4284
decedent's estate have been commenced, the disclaimer instrument	4285
shall be filed in the probate division of the court of common	4286
pleas in the county in which proceedings for the administration of	4287
the decedent's estate might be commenced according to law. The	4288
disclaimer instrument shall be filed and indexed, and fees	4289
charged, in the same manner as provided by law for an application	4290
to be appointed as personal representative to administer the	4291
decedent's estate. The disclaimer is effective whether or not	4292
proceedings thereafter are commenced to administer the decedent's	4293
estate. If proceedings thereafter are commenced for the	4294
administration of the decedent's estate, they shall be filed	4295
under, or consolidated with, the case number assigned to the	4296
disclaimer instrument.	4297

(4) If an interest in real estate is disclaimed, an executed	4298
copy of the disclaimer instrument also shall be recorded in the	4299
office of the recorder of the county in which the real estate is	4300
located. The disclaimer instrument shall include a description of	4301
the real estate with sufficient certainty to identify it, and	4302
shall contain a reference to the record of the instrument that	4303
created the interest disclaimed. If title to the real estate is	4304
registered under Chapters 5309. and 5310. of the Revised Code, the	4305
disclaimer interest shall be entered as a memorial on the last	4306
certificate of title. A spouse of a disclaimant has no dower or	4307
other interest in the real estate disclaimed.	4308

(G) If a donative instrument expressly provides for the	4309
distribution of property, part of property, or interest in	4310
property if there is a disclaimer, the property, part of property,	4311
or interest disclaimed shall be distributed or disposed of, and	4312
accelerated or not accelerated, in accordance with the donative	4313
instrument. In the absence of express provisions to the contrary	4314
in the donative instrument, the property, part of property, or	4315
interest in property disclaimed, and any future interest that is	4316
to take effect in possession or enjoyment at or after the	4317
termination of the interest disclaimed, shall descend, be	4318
distributed, or otherwise be disposed of, and shall be	4319
accelerated, in the following manner:	4320

(1) If intestate or testate succession is disclaimed, as if	4321
the disclaimant had predeceased the decedent;	4322

(2) If the disclaimant is one designated to take pursuant to	4323
a power of appointment exercised by a testamentary instrument, as	4324
if the disclaimant had predeceased the donee of the power;	4325

(3) If the donative instrument is a nontestamentary	4326
instrument, as if the disclaimant had died before the effective	4327
date of the nontestamentary instrument;	4328

(4) If the disclaimer is of a fiduciary right, power,	4329
privilege, or immunity, as if the right, power, privilege, or	4330
immunity was never in the donative instrument.	4331

(H) A disclaimer pursuant to this section is effective as of,	4332
and relates back for all purposes to, the date upon which the	4333
taker and the taker's interest have been finally ascertained.	4334

(I) A disclaimant who has a present and future interest in	4335
property, and disclaims the disclaimant's present interest in	4336
whole or in part, is considered to have disclaimed the	4337
disclaimant's future interest to the same extent, unless a	4338
contrary intention appears in the disclaimer instrument or the	4339
donative instrument. A disclaimant is not precluded from	4340
receiving, as an alternative taker, a beneficial interest in the	4341
property disclaimed, unless a contrary intention appears in the	4342
disclaimer instrument or in the donative instrument.	4343

(J) The disclaimant's right to disclaim under this section is	4344
barred if the disclaimant does any of the following:	4345

(1) Assigns, conveys, encumbers, pledges, or transfers, or	4346
contracts to assign, convey, encumber, pledge, or transfer, the	4347
property or any interest in it;	4348

(2) Waives in writing the disclaimant's right to disclaim and	4349
executes and delivers, files, or records the waiver in the manner	4350
provided in this section for a disclaimer instrument;	4351

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

4352

(4) Permits or suffers a sale or other disposition of the	4353
property pursuant to judicial action against the disclaimant.	4354

(K) Neither a fiduciary's application for appointment or	4355
assumption of duties as a fiduciary nor a beneficiary's	4356
application for appointment as a personal representative or	4357
fiduciary waives or bars the disclaimant's right to disclaim a	4358
right, power, privilege, or immunity as a personal representative	4359
or fiduciary or the beneficiary's right to disclaim property.	4360

(L) The right to disclaim under this section exists	4361
irrespective of any limitation on the interest of the disclaimant	4362
in the nature of a spendthrift provision or similar restriction.	4363

(M) A disclaimer instrument or written waiver of the right to	4364
disclaim that has been executed and delivered, filed, or recorded	4365
as required by this section is final and binding upon all persons.	4366

(N) The right to disclaim and the procedures for disclaimer	4367
established by this section are in addition to, and do not exclude	4368
or abridge, any other rights or procedures that exist or formerly	4369
existed under any other section of the Revised Code or at common	4370
law to assign, convey, release, refuse to accept, renounce, waive,	4371
or disclaim property.	4372

(O)(1) No person is liable for distributing or disposing of	4373
property in a manner inconsistent with the terms of a valid	4374
disclaimer if the distribution or disposition is otherwise proper	4375
and the person has no actual knowledge of the disclaimer.	4376

(2) No person is liable for distributing or disposing of	4377
property in reliance upon the terms of a disclaimer that is	4378
invalid because the right of disclaimer has been waived or barred	4379
if the distribution or disposition is otherwise proper and the	4380
person has no actual knowledge of the facts that constitute a	4381
waiver or bar to the right to disclaim.	4382

(P)(1) A disclaimant may disclaim pursuant to this section	4383
any interest in property that is in existence on September 27,	4384
1976, if either the interest in the property or the taker of the	4385
interest in the property is not finally ascertained on that date.	4386

(2) No disclaimer executed pursuant to this section destroys	4387
or diminishes an interest in property that exists on September 27,	4388
1976, in any person other than the disclaimant.	4389

(Q) This section may be applied separately to different	4390
interests or powers created in the disclaimant by the same	4391
testamentary or nontestamentary instrument.	4392

Section 2. That existing sections 317.114, 321.24, 1321.51,	4393
1321.522, 1321.53, 1321.531, 1321.532, 1321.533, 1321.535,	4394
1321.54, 1321.55, 1321.59, 1322.01, 1322.02, 1322.022, 1322.023,	4395
1322.03, 1322.031, 1322.04, 1322.041, 1322.062, 1322.07, 1322.074,	4396
1322.10, 1322.99, 1343.011, 1345.01, 1345.05, 1345.09, 1349.31,	4397
1349.43, 1733.252, 5302.01, 5302.02, 5302.22, 5302.221, 5302.23,	4398
5717.01, 5717.011, 5717.02, 5717.04, and 5815.36 of the Revised	4399
Code are hereby repealed.	4400

Section 3. That Section 745.60 of Am. Sub. H.B. 1 of the	4401
128th General Assembly be amended to read as follows:	4402

Sec. 745.60.  (A) Sections 1321.20, 1321.51, 1321.52,	4403
1321.521, 1321.522, 1321.53, 1321.531, 1321.532, 1321.533,	4404
1321.534, 1321.535, 1321.536, 1321.54, 1321.55, 1321.551,	4405
1321.552, 1321.57, 1321.59, 1321.591, 1321.592, 1321.593,	4406
1321.594, 1321.60, 1321.99, 1322.01, 1322.02, 1322.022, 1322.023,	4407
1322.024, 1322.025, 1322.03, 1322.031, 1322.04, 1322.041, 1322.05,	4408
1322.051, 1322.052, 1322.06, 1322.061, 1322.062, 1322.063,	4409
1322.064, 1322.065, 1322.07, 1322.071, 1322.072, 1322.074,	4410
1322.075, 1322.08, 1322.081, 1322.09, 1322.10, 1322.11, 1322.99,	4411
1343.011, 1345.01, 1345.05, 1345.09, 1349.31, and 1349.43,	4412
1733.252, and 1733.26 of the Revised Code, as amended or enacted	4413
by this actAm. Sub. H.B. 1 of the 128th General Assembly, shall	4414
apply on and after January 1, 2010, unless otherwise provided in	4415
this section.	4416

(B)(1) The Division of Financial Institutions shall begin	4417
accepting applications for a mortgage loan originator license, and	4418
applications for an exemption from registration under sections	4419
1321.51 to 1321.60 or 1322.01 to 1322.12 of the Revised Code, on	4420
the effective date of this sectionOctober 16, 2009.	4421

(2) In order to continue to operate as an exempt entity, any	4422
credit union service organization in operation as of January 1,	4423
2010, that seeks exemption from registration under sections	4424
1321.51 to 1321.60 of the Revised Code shall obtain a valid letter	4425
of exemption issued by the Superintendent of Financial	4426
Institutions not later than July 1, 2010. Any person performing	4427
the duties of a mortgage loan originator as of January 1, 2010,	4428
shall obtain a mortgage loan originator license from the Division	4429
not later than January 1, 2011, in order to continue to perform	4430
those duties.	4431

(3) In order to continue to operate as an exempt entity, any	4432
mortgage banker or credit union service organization in operation	4433
as of January 1, 2010, that seeks exemption from registration	4434
under sections 1322.01 to 1322.12 of the Revised Code shall obtain	4435
a valid letter of exemption issued by the Superintendent not later	4436
than May 1, 2010. Any individual who, as of January 1, 2010,	4437
performs the duties of a loan originator and is employed by or	4438
associated with any person or entity listed in division (G)(2) of	4439
section 1322.01 of the Revised Code shall obtain a loan originator	4440
license from the Superintendent not later than May 1, 2010, in	4441
order to continue to perform those duties.	4442

(C) Individuals holding a valid mortgage lender certificate	4443
of registration, mortgage broker certificate of registration, or	4444
loan officer license as of January 1, 2010, shall not be required	4445
to be in compliance with the sections described in division (A) of	4446
this section until the first renewal of that certificate or	4447
license after that date.	4448

(D) Sections 1733.252 and 1733.26 of the Revised Code, as	4449
amended or enacted by Am. Sub. H.B. 1 of the 128th General	4450
Assembly, shall apply on and after January 1, 2011.	4451

Section 4. That existing Section 745.60 of Am. Sub. H.B. 1 of	4452
the 128th General Assembly is hereby repealed.	4453

Section 5. (A) Sections 1321.51, 1321.522, 1321.53, 1321.531,	4454
1321.532, 1321.533, 1321.535, 1321.54, 1321.55, 1321.59, 1322.01,	4455
1322.02, 1322.022, 1322.023, 1322.03, 1322.031, 1322.04, 1322.041,	4456
1322.062, 1322.07, 1322.074, 1322.10, 1322.99, 1343.011, 1345.01,	4457
1345.05, 1345.09, 1349.31, and 1349.43 of the Revised Code, as	4458
amended by this act, shall apply on and after January 1, 2010.	4459

(B) Section 1733.252 of the Revised Code, as amended by this	4460
act, shall apply on and after January 1, 2011.	4461

Section 6. A prosecuting attorney or treasurer of a county	4462
with a population greater than eight hundred thousand but less	4463
than nine hundred thousand may determine that the amount of money	4464
appropriated to the respective office from the county Delinquent	4465
Tax and Assessment Collection Fund under division (A) of section	4466
321.261 of the Revised Code exceeds the amount required to be used	4467
by that office as prescribed by division (A)(1) of that section.	4468
If a prosecuting attorney or treasurer of a county with that	4469
population makes such a determination, the prosecuting attorney or	4470
treasurer may expend up to fifty per cent of the excess so	4471
determined to pay the expenses of operating the respective office	4472
that otherwise would be payable from appropriations from the	4473
county general fund, notwithstanding section 321.261 of the	4474
Revised Code.	4475

This section expires December 31, 2011.

4476

Section 7. For fiscal year 2010, the Tax Commissioner shall	4477
compute the amounts in section 5703.81 of the Revised Code, as	4478
enacted by this act, between the first and fifteenth days of	4479
January, and shall certify to the Director of Budget and	4480
Management the sum of those amounts for all taxing districts in	4481
all counties. After receiving the Tax Commissioner's	4482
certification, the Director of Budget and Management shall	4483
transfer from the General Revenue Fund to the Tax Appeals	4484
Administration Fund one-fourth of the amount certified on or	4485
before each of the following days: the first days of February and	4486
May.	4487

Section 8. (A) This act is hereby declared to be an emergency	4488
measure necessary for the immediate preservation of the public	4489
peace, health, and safety. The reasons for such necessity are the	4490
following:	4491

(1) The earmarks for the Board of Tax Appeals of a portion of	4492
the state reimbursement to local taxing units for the 10% real	4493
property tax rollback need to be implemented for the current	4494
fiscal year 2010.	4495

(2) This act makes changes to the sections amended or enacted	4496
by Am. Sub. H.B. 1 of the 128th General Assembly in the	4497
implementation of the federal Secure and Fair Enforcement for	4498
Mortgage Licensing Act of 2008 ("S.A.F.E. Act"), and those	4499
sections apply on and after January 1, 2010.	4500

(B) Therefore, this act shall go into immediate effect.

4501

Section 9. If the emergency clause in Section 8 does not	4502
become part of this act, Section 7 of this act does not apply and	4503
Section 10 of this act applies. If the emergency clause in Section	4504
8 becomes a part of this act, Section 10 of this act does not	4505
apply.	4506

Section 10. For fiscal year 2010, the Tax Commissioner shall	4507
compute the amounts in section 5703.81 of the Revised Code, as	4508
enacted by this act, between the first and fifteenth days of April	4509
and shall certify to the Director of Budget and Management the sum	4510
of those amounts for all taxing districts in all counties. After	4511
receiving the Tax Commissioner's certification, the director of	4512
Budget and Management shall transfer from the General Revenue Fund	4513
to the Tax Appeals Administration Fund one-half of the amount	4514
certified on or before the first day of May.	4515

Section 11.  The General Assembly, in enacting section	4516
5703.021 and amending sections 5717.01, 5717.011, 5717.02, and	4517
5717.04 of the Revised Code, declares the following:	4518

(A) In light of the significant increase in the number of	4519
appeals that have been filed with the Board of Tax Appeals and in	4520
an effort to facilitate the resolution of pending appeals, it is	4521
the intent of the General Assembly that the Board of Tax Appeals	4522
continue to work with the Tax Commissioner, tax practitioners, and	4523
other interested parties to consider as soon as practicable the	4524
modification or adoption of rules and recommendations for	4525
legislation with respect to the conduct of appeals, including all	4526
of the following:	4527

(1) Pleading standards applicable to notices of appeal;

4528

(2) Appropriately defined circumstances under which an appeal	4529
may be remanded for further proceedings;	4530

(3) Implementation of small claims procedures;

4531

(4) Facilitation of settlement including the use of	4532
alternative dispute resolution;	4533

(5) Adoption of case management procedures, including	4534
appropriate changes in discovery rules;	4535

(6) Implementation of procedures for summary judgment;

4536

(7) Streamlining of the hearing process.

4537

(B) It is also the intent of the General Assembly that the	4538
funding mechanism for the Board of Tax Appeals be reexamined as	4539
part of the budget process for fiscal years 2012 and 2013. This	4540
reexamination will consider the feasibility and desirability of	4541
replacing some or all of the funding mechanism in section 5703.81	4542
of the Revised Code, as enacted by this act, with additional funds	4543
from other sources, such as filing fees.	4544

(C) The enactment of section 5703.021 and the amendment of	4545
sections 5717.01, 5717.011, 5717.02, and 5717.04 of the Revised	4546
Code by this act shall be considered to be purely remedial in	4547
operation and shall be applied in a remedial manner to cases	4548
pending at the time of the effective date of this act to the	4549
extent practicable.	4550

Section 12.  Section 321.24 of the Revised Code is presented	4551
in this act as a composite of the section as amended by both Sub.	4552
S.B. 353 of the 127th General Assembly and Am. Sub. H.B. 1 of the	4553
128th General Assembly. The General Assembly, applying the	4554
principle stated in division (B) of section 1.52 of the Revised	4555
Code that amendments are to be harmonized if reasonably capable of	4556
simultaneous operation, finds that the composite is the resulting	4557
version of the section in effect prior to the effective date of	4558
the section as presented in this act.	4559