Am. Sub. H. B. No. 479 As Passed by the House

As Passed by the House

CORRECTED VERSION

129th General Assembly

Regular Session

2011-2012

Am. Sub. H. B. No. 479

Representatives Hagan, C., Blessing

Cosponsors: Speaker Batchelder Representatives Gardner, Grossman, Stebelton, Sears, Boose, Damschroder, Schuring, Wachtmann, Johnson, Beck, Gonzales, Terhar, Amstutz, Antonio, Blair, Brenner, Bubp, Buchy, Budish, Carney, Celebrezze, Combs, Conditt, Derickson, DeVitis, Dovilla, Duffey, Foley, Hackett, Hall, Hayes, Henne, Kozlowski, Letson, McClain, McGregor, Milkovich, Newbold, O'Brien, Phillips, Pillich, Ruhl, Smith, Sprague, Stautberg, Winburn

A BILL

To amend sections 317.08, 317.32, 317.321, 1336.04,

1701.73, 1702.38, 1703.22, 2131.08, 2131.09,

2329.66, 2329.661, 5805.06, 5808.08, 5808.18,

5815.24, 5815.25, and 5815.36 and to enact

sections 1301.401, 5815.37, and 5816.01 to 5816.14

of the Revised Code to adopt the Ohio Legacy Trust

Act; to modify certain property rights in the Ohio

Trust Code; to require the recording of personal

property transfers with the county recorder upon

request; to regulate the temporary conveyance of

trust real property for financing purposes; and to

make certain changes in the exempt interests law,

the fraudulent transfers law, the secured

transactions recording law, and the rule against

perpetuities.

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

Section 1. That sections 317.08, 317.32, 317.321, 1336.04,	16
1701.73, 1702.38, 1703.22, 2131.08, 2131.09, 2329.66, 2329.661,	17
5805.06, 5808.08, 5808.18, 5815.24, 5815.25, and 5815.36 be	18
amended and sections 1301.401, 5815.37, 5816.01, 5816.02, 5816.03,	19
5816.04, 5816.05, 5816.06, 5816.07, 5816.08, 5816.09, 5816.10,	20
5816.11, 5816.12, 5816.13, and 5816.14 of the Revised Code be	21
enacted to read as follows:	22

Sec. 317.08. (A) Except as provided in divisions (C) ~~and~~,	23
(D), and (E) of this section, the county recorder shall keep six	24
separate sets of records as follows:	25

(1) A record of deeds, in which shall be recorded all deeds	26
and other instruments of writing for the absolute and	27
unconditional sale or conveyance of lands, tenements, and	28
hereditaments; all notices as provided in sections 5301.47 to	29
5301.56 of the Revised Code; all judgments or decrees in actions	30
brought under section 5303.01 of the Revised Code; all	31
declarations and bylaws, and all amendments to declarations and	32
bylaws, as provided in Chapter 5311. of the Revised Code;	33
affidavits as provided in sections 5301.252 and 5301.56 of the	34
Revised Code; all certificates as provided in section 5311.17 of	35
the Revised Code; all articles dedicating archaeological preserves	36
accepted by the director of the Ohio historical society under	37
section 149.52 of the Revised Code; all articles dedicating nature	38
preserves accepted by the director of natural resources under	39
section 1517.05 of the Revised Code; all agreements for the	40
registration of lands as archaeological or historic landmarks	41
under section 149.51 or 149.55 of the Revised Code; all	42
conveyances of conservation easements and agricultural easements	43
under section 5301.68 of the Revised Code; all instruments	44
extinguishing agricultural easements under section 901.21 or	45
5301.691 of the Revised Code or pursuant to terms of such an	46
easement granted to a charitable organization under section	47
5301.68 of the Revised Code; all instruments or orders described	48
in division (B)(2)(b) of section 5301.56 of the Revised Code; all	49
no further action letters issued under section 122.654 or 3746.11	50
of the Revised Code; all covenants not to sue issued under section	51
3746.12 of the Revised Code, including all covenants not to sue	52
issued pursuant to section 122.654 of the Revised Code; any	53
restrictions on the use of property contained in a no further	54
action letter issued under section 122.654 of the Revised Code,	55
any restrictions on the use of property identified pursuant to	56
division (C)(3)(a) of section 3746.10 of the Revised Code, and any	57
restrictions on the use of property contained in a deed or other	58
instrument as provided in division (E) or (F) of section 3737.882	59
of the Revised Code; any easement executed or granted under	60
section 3734.22, 3734.24, 3734.25, or 3734.26 of the Revised Code;	61
any environmental covenant entered into in accordance with	62
sections 5301.80 to 5301.92 of the Revised Code; all memoranda of	63
trust, as described in division (A) of section 5301.255 of the	64
Revised Code, that describe specific real property; and all	65
agreements entered into under division (A) of section 1506.44 of	66
the Revised Code;	67

(2) A record of mortgages, in which shall be recorded all of	68
the following:	69

(a) All mortgages, including amendments, supplements,	70
modifications, and extensions of mortgages, or other instruments	71
of writing by which lands, tenements, or hereditaments are or may	72
be mortgaged or otherwise conditionally sold, conveyed, affected,	73
or encumbered;	74

(b) All executory installment contracts for the sale of land	75
executed after September 29, 1961, that by their terms are not	76
required to be fully performed by one or more of the parties to	77
them within one year of the date of the contracts;	78

(c) All options to purchase real estate, including	79
supplements, modifications, and amendments of the options, but no	80
option of that nature shall be recorded if it does not state a	81
specific day and year of expiration of its validity;	82

(d) Any tax certificate sold under section 5721.33 of the	83
Revised Code, or memorandum of it, that is presented for filing of	84
record.	85

(3) A record of powers of attorney, including all memoranda	86
of trust, as described in division (A) of section 5301.255 of the	87
Revised Code, that do not describe specific real property;	88

(4) A record of plats, in which shall be recorded all plats	89
and maps of town lots, of the subdivision of town lots, and of	90
other divisions or surveys of lands, any center line survey of a	91
highway located within the county, the plat of which shall be	92
furnished by the director of transportation or county engineer,	93
and all drawings and amendments to drawings, as provided in	94
Chapter 5311. of the Revised Code;	95

(5) A record of leases, in which shall be recorded all	96
leases, memoranda of leases, and supplements, modifications, and	97
amendments of leases and memoranda of leases;	98

(6) A record of declarations executed pursuant to section	99
2133.02 of the Revised Code and durable powers of attorney for	100
health care executed pursuant to section 1337.12 of the Revised	101
Code.	102

(B) All instruments or memoranda of instruments entitled to	103
record shall be recorded in the proper record in the order in	104
which they are presented for record. The recorder may index, keep,	105
and record in one volume unemployment compensation liens, internal	106
revenue tax liens and other liens in favor of the United States as	107
described in division (A) of section 317.09 of the Revised Code,	108
personal tax liens, mechanic's liens, agricultural product liens,	109
notices of liens, certificates of satisfaction or partial release	110
of estate tax liens, discharges of recognizances, excise and	111
franchise tax liens on corporations, broker's liens, and liens	112
provided for in sections 1513.33, 1513.37, 3752.13, 5111.022, and	113
5311.18 of the Revised Code.	114

The recording of an option to purchase real estate, including	115
any supplement, modification, and amendment of the option, under	116
this section shall serve as notice to any purchaser of an interest	117
in the real estate covered by the option only during the period of	118
the validity of the option as stated in the option.	119

(C) In lieu of keeping the six separate sets of records	120
required in divisions (A)(1) to (6) of this section and the	121
records required in ~~division~~divisions (D) and (E) of this	122
section, a county recorder may record all the instruments required	123
to be recorded by this section in two separate sets of record	124
books. One set shall be called the "official records" and shall	125
contain the instruments listed in divisions (A)(1), (2), (3), (5),	126
and (6) and (D) and (E) of this section. The second set of records	127
shall contain the instruments listed in division (A)(4) of this	128
section.	129

(D) Except as provided in division (C) of this section, the	130
county recorder shall keep a separate set of records containing	131
all corrupt activity lien notices filed with the recorder pursuant	132
to section 2923.36 of the Revised Code and a separate set of	133
records containing all medicaid fraud lien notices filed with the	134
recorder pursuant to section 2933.75 of the Revised Code.	135

(E)(1) The county recorder shall keep a separate set of	136
records containing all transfers, conveyances, or assignments of	137
any type of tangible or intangible personal property or any rights	138
or interests in that property if and to the extent that any person	139
wishes to record that personal property transaction and if the	140
applicable instrument is acknowledged before a notary public. If	141
the transferor is a natural person, the notice of personal	142
property transfer shall be recorded in the county in this state in	143
which the transferor maintains the transferor's principal	144
residence. If the transferor is not a natural person, the notice	145
of personal property transfer shall be recorded in the county in	146
this state in which the transferor maintains its principal place	147
of business. If the transferor does not maintain a principal	148
residence or a principal place of business in this state and the	149
transfer is to a trustee of a legacy trust formed pursuant to	150
Chapter 5816. of the Revised Code, the notice of personal property	151
transfer shall be recorded in the county in this state where that	152
trustee maintains a principal residence or principal place of	153
business. In all other instances, the notice of personal property	154
transfer shall be recorded in the county in this state where the	155
property described in the notice is located.	156

(2) The records described in division (E)(1) of this section	157
shall be maintained in or as part of the "official records" under	158
division (C) of this section.	159

Sec. 317.32. The county recorder shall charge and collect	160
the following fees, to include, except as otherwise provided in	161
division (A)(2) of this section, base fees for the recorder's	162
services and housing trust fund fees, collected pursuant to	163
section 317.36 of the Revised Code:	164

(A) ~~For~~(1) Except as otherwise provided in division (A)(2)	165
of this section, for recording and indexing an instrument ~~when~~if	166
the photocopy or any similar process is employed, a base fee of	167
fourteen dollars for the first two pages and a housing trust fund	168
fee of fourteen dollars, and a base fee of four dollars and a	169
housing trust fund fee of four dollars for each subsequent page,	170
size eight and one-half inches by fourteen inches, or fraction of	171
a page, including the caption page, of such instrument;	172

(2) For recording and indexing an instrument described in	173
division (E)(1) of section 317.08 of the Revised Code if the	174
photocopy or any similar process is employed, a fee of	175
twenty-eight dollars for the first two pages to be deposited into	176
the county treasury to the credit of the special fund designated	177
as "general fund moneys to supplement the equipment needs of the	178
county recorder" under section 317.321 of the Revised Code, and a	179
fee of eight dollars to be deposited in the same manner for each	180
subsequent page, size eight and one-half inches by fourteen	181
inches, or fraction of a page, including the caption page, of that	182
instrument;	183

(B) For certifying a photocopy from the record previously	184
recorded, a base fee of one dollar and a housing trust fund fee of	185
one dollar per page, size eight and one-half inches by fourteen	186
inches, or fraction of a page; for each certification ~~where~~if the	187
recorder's seal is required, except as to instruments issued by	188
the armed forces of the United States, a base fee of fifty cents	189
and a housing trust fund fee of fifty cents;	190

(C) For manual or typewritten recording of assignment or	191
satisfaction of mortgage or lease or any other marginal entry, a	192
base fee of four dollars and a housing trust fund fee of four	193
dollars;	194

(D) For entering any marginal reference by separate recorded	195
instrument, a base fee of two dollars and a housing trust fund fee	196
of two dollars for each marginal reference set out in that	197
instrument, in addition to the fees set forth in division (A)(1)	198
of this section;	199

(E) For indexing in the real estate mortgage records,	200
pursuant to section 1309.519 of the Revised Code, financing	201
statements covering crops growing or to be grown, timber to be	202
cut, minerals or the like, including oil and gas, accounts subject	203
to section 1309.301 of the Revised Code, or fixture filings made	204
pursuant to section 1309.334 of the Revised Code, a base fee of	205
two dollars and a housing trust fund fee of two dollars for each	206
name indexed;	207

(F) For recording manually any plat not exceeding six lines,	208
a base fee of two dollars and a housing trust fund fee of two	209
dollars, and for each additional line, a base fee of ten cents and	210
a housing trust fund fee of ten cents;	211

(G) For filing zoning resolutions, including text and maps,	212
in the office of the recorder as required under sections 303.11	213
and 519.11 of the Revised Code, a base fee of twenty-five dollars	214
and a housing trust fund fee of twenty-five dollars, regardless of	215
the size or length of the resolutions;	216

(H) For filing zoning amendments, including text and maps, in	217
the office of the recorder as required under sections 303.12 and	218
519.12 of the Revised Code, a base fee of ten dollars and a	219
housing trust fund fee of ten dollars regardless of the size or	220
length of the amendments;	221

(I) For photocopying a document, other than at the time of	222
recording and indexing as provided for in division (A)(1) or (2)	223
of this section, a base fee of one dollar and a housing trust fund	224
fee of one dollar per page, size eight and one-half inches by	225
fourteen inches, or fraction thereof;	226

(J) For local facsimile transmission of a document, a base	227
fee of one dollar and a housing trust fund fee of one dollar per	228
page, size eight and one-half inches by fourteen inches, or	229
fraction thereof; for long distance facsimile transmission of a	230
document, a base fee of two dollars and a housing trust fund fee	231
of two dollars per page, size eight and one-half inches by	232
fourteen inches, or fraction thereof;	233

(K) For recording a declaration executed pursuant to section	234
2133.02 of the Revised Code or a durable power of attorney for	235
health care executed pursuant to section 1337.12 of the Revised	236
Code, or both a declaration and a durable power of attorney for	237
health care, a base fee of at least fourteen dollars but not more	238
than twenty dollars and a housing trust fund fee of at least	239
fourteen dollars but not more than twenty dollars.	240

In any county in which the recorder employs the photostatic	241
or any similar process for recording maps, plats, or prints the	242
recorder shall determine, charge, and collect for the recording or	243
rerecording of any map, plat, or print, a base fee of five cents	244
and a housing trust fund fee of five cents per square inch, for	245
each square inch of the map, plat, or print filed for that	246
recording or rerecording, with a minimum base fee of twenty	247
dollars and a minimum housing trust fund fee of twenty dollars;	248
for certifying a copy from the record, a base fee of two cents and	249
a housing trust fund fee of two cents per square inch of the	250
record, with a minimum base fee of two dollars and a minimum	251
housing trust fund fee of two dollars.	252

The fees provided in this section shall be paid upon the	253
presentation of the instruments for record or upon the application	254
for any certified copy of the record, except that the payment of	255
fees associated with the filing and recording of, or the copying	256
of, notices of internal revenue tax liens and notices of other	257
liens in favor of the United States as described in division (A)	258
of section 317.09 of the Revised Code and certificates of	259
discharge or release of those liens, shall be governed by section	260
317.09 of the Revised Code, and the payment of fees for providing	261
copies of instruments conveying or extinguishing agricultural	262
easements to the office of farmland preservation in the department	263
of agriculture under division (H) of section 5301.691 of the	264
Revised Code shall be governed by that division.	265

Sec. 317.321. (A) Not later than the first day of October of	266
any year, the county recorder may submit to the board of county	267
commissioners a proposal for the acquisition or maintenance of	268
micrographic or other equipment or for contract services or a	269
proposal to reserve funds for the office's future equipment needs	270
if the county recorder has no immediate plans for the acquisition	271
of equipment or services. ~~The~~Either proposal shall be in writing	272
and shall include at least the following:	273

(1) A request that an amount not to exceed seven dollars of	274
the fee collected for filing or recording a document for which a	275
fee is charged as required by division (A)(1) of section 317.32 of	276
the Revised Code or by section 1309.525 or 5310.15 of the Revised	277
Code and the amount of the fees collected under division (A)(2) of	278
section 317.32 of the Revised Code be placed in the county	279
treasury and designated as "general fund moneys to supplement the	280
equipment needs of the county recorder";	281

(2) The number of years, not to exceed five, for which the	282
county recorder requests that the amount requested under division	283
(A)(1) of this section be given the designation specified in that	284
division;	285

(3) An estimate of the total amount of fees that will be	286
generated for filing or recording a document for which a fee is	287
charged as required by division (A)(1) or (2) of section 317.32 of	288
the Revised Code or by section 1309.525 or 5310.15 of the Revised	289
Code;	290

(4) An estimate of the total amount of fees for filing or	291
recording a document for which a fee is charged as required by	292
division (A)(1) or (2) of section 317.32 of the Revised Code or by	293
section 1309.525 or 5310.15 of the Revised Code that will be	294
designated as "general fund moneys to supplement the equipment	295
needs of the county recorder" if the request submitted under	296
division (A)(1) of this section is approved by the board of county	297
commissioners.	298

~~The~~A proposal for the acquisition or maintenance of	299
micrographic or other equipment or for contract services may	300
include a description or summary of the micrographic or other	301
equipment, or maintenance ~~thereof~~of the micrographic or other	302
equipment, that the county recorder proposes to acquire, or the	303
nature of contract services that the county recorder proposes to	304
utilize. IfA proposal to reserve funds for the office's future	305
equipment needs if the county recorder has no immediate plans for	306
the acquisition of equipment or services~~, the proposal~~ shall	307
explain the general needs of the office for equipment ~~and shall~~	308
~~state that the intent of the proposal is to reserve funds for the~~	309
~~office's future equipment needs~~.	310

(B) The board of county commissioners shall receive ~~the~~	311
either proposal and the clerk shall enter it on the journal. At	312
the same time, the board shall establish a date, not sooner than	313
fifteen ~~nor~~or later than thirty days after the board's receipt	314
of the proposal, on which to meet with the recorder to review the	315
proposal.	316

(C)(1) Not later than the fifteenth day of December of any	317
year in which a proposal for the acquisition or maintenance of	318
micrographic or other equipment or for contract services is	319
submitted under division (A) of this section, the board of county	320
commissioners shall approve, reject, or modify the proposal and	321
notify the county recorder of its action on the proposal. If the	322
board rejects or modifies the proposal, it shall make a written	323
finding that the request is for a purpose other than for	324
acquiring, leasing, or otherwise obtaining micrographic or other	325
equipment or contracts for use by the county recorder or that the	326
amount requested for the acquisition or maintenance of	327
micrographic or other equipment or for contract services is	328
excessive as determined by the board. If the board approves the	329
proposal, it shall request the establishment of a special fund	330
under section 5705.12 of the Revised Code for any fees designated	331
as "general fund moneys to supplement the equipment needs of the	332
county recorder."	333

(2) Not later than the fifteenth day of December of any year	334
in which a proposal to reserve funds for the office's future	335
equipment needs is submitted under division (A) of this section,	336
the board of county commissioners shall approve the proposal,	337
notify the county recorder of its action on the proposal, and	338
request the establishment of a special fund under section 5705.12	339
of the Revised Code for any fees designated as "general fund	340
moneys to supplement the equipment needs of the county recorder."	341

(D) The acquisition or maintenance of micrographic or other	342
equipment and the acquisition of contract services shall be	343
specifically governed by sections 307.80 to 307.806, 307.84 to	344
307.846, 307.86 to 307.92, and 5705.38, and by division (D) of	345
section 5705.41 of the Revised Code.	346

Sec. 1301.401. (A) For purposes of this section, "public	347
record" means either of the following:	348

(1) Any document described or referred to in section 317.08	349
of the Revised Code;	350

(2) Any document the filing or recording of which is required	351
or allowed under any provision of Chapter 1309. of the Revised	352
Code.	353

(B) The recording with any county recorder of any document	354
described in division (A)(1) of this section or the filing or	355
recording with the secretary of state of any document described in	356
division (A)(2) of this section shall be constructive notice to	357
the whole world of the existence and contents of either document	358
as a public record and of any transaction referred to in that	359
public record, including, but not limited to, any transfer,	360
conveyance, or assignment reflected in that record.	361

(C) Any person contesting the validity or effectiveness of	362
any transaction referred to in a public record is considered to	363
have discovered that public record and any transaction referred to	364
in the record as of the time that the record was first filed with	365
the secretary of state or tendered to a county recorder for	366
recording.	367

Sec. 1336.04. (A) A transfer made or an obligation incurred	368
by a debtor is fraudulent as to a creditor, whether the claim of	369
the creditor arose before, or within a reasonable time not to	370
exceed four years after, the transfer was made or the obligation	371
was incurred, if the debtor made the transfer or incurred the	372
obligation in either of the following ways:	373

(1) With actual intent to hinder, delay, or defraud any	374
creditor of the debtor;	375

(2) Without receiving a reasonably equivalent value in	376
exchange for the transfer or obligation, and if either of the	377
following applies:	378

(a) The debtor was engaged or was about to engage in a	379
business or a transaction for which the remaining assets of the	380
debtor were unreasonably small in relation to the business or	381
transaction;	382

(b) The debtor intended to incur, or believed or reasonably	383
should have believed that hethe debtor would incur, debts beyond	384
~~his~~the debtor's ability to pay as they became due.	385

(B) In determining actual intent under division (A)(1) of	386
this section, consideration may be given to all relevant factors,	387
including, but not limited to, the following:	388

(1) Whether the transfer or obligation was to an insider;

389

(2) Whether the debtor retained possession or control of the	390
property transferred after the transfer;	391

(3) Whether the transfer or obligation was disclosed or	392
concealed;	393

(4) Whether before the transfer was made or the obligation	394
was incurred, the debtor had been sued or threatened with suit;	395

(5) Whether the transfer was of substantially all of the	396
assets of the debtor;	397

(6) Whether the debtor absconded;

398

(7) Whether the debtor removed or concealed assets;

399

(8) Whether the value of the consideration received by the	400
debtor was reasonably equivalent to the value of the asset	401
transferred or the amount of the obligation incurred;	402

(9) Whether the debtor was insolvent or became insolvent	403
shortly after the transfer was made or the obligation was	404
incurred;	405

(10) Whether the transfer occurred shortly before or shortly	406
after a substantial debt was incurred;	407

(11) Whether the debtor transferred the essential assets of	408
the business to a lienholder who transferred the assets to an	409
insider of the debtor.	410

Sec. 1701.73. (A)(1) Upon the adoption of any amendment or	411
amended articles, a certificate containing a copy of the	412
resolution adopting the amendment or amended articles, a statement	413
of the manner of its adoption, and, in the case of adoption of the	414
resolution by the incorporators or directors, a statement of the	415
basis for such adoption, shall be filed with the secretary of	416
state, and thereupon the articles shall be amended accordingly,	417
any change of shares provided for in the amendment or amended	418
articles shall become effective, and the amended articles shall	419
supersede the existing articles.	420

(2) Except as provided in division (A)(3) of this section,	421
when an amendment or amended articles are adopted by the directors	422
pursuant to section 1701.70 of the Revised Code, the corporation	423
shall send notice of the amendment or amended articles, and a copy	424
or summary ~~thereof~~of the amendment or amended articles, by mail,	425
overnight delivery service, or any other means of communication	426
authorized by the shareholder to whom the notice and copy or	427
summary are sent, to each shareholder of the corporation of record	428
as of the date on which the directors approved the amendment or	429
amended articles. The notice shall be sent to the shareholders	430
within twenty days after the filing of the certificate required by	431
division (A)(1) of this section.	432

(3) Any corporation that files periodic reports with the	433
United States securities and exchange commission pursuant to	434
section 13 of the "Securities Exchange Act of 1934," 48 Stat. 881,	435
15 U.S.C. 78m, as amended, or section 15(d) of the "Securities	436
Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78o(d), as amended,	437
may satisfy the notice to shareholders of record requirement of	438
division (A)(2) of this section by including a copy or summary of	439
the amendment or amended articles in a report filed in accordance	440
with those provisions within twenty days after the filing of the	441
certificate required by division (A)(1) of this section.	442

(B) When an amendment or amended articles are adopted by the	443
incorporators, the certificate described in division (A)(1) of	444
this section shall be signed by each of them.	445

(C) When an amendment or amended articles are adopted by the	446
directors or by the shareholders, the certificate described in	447
division (A)(1) of this section shall be signed by any authorized	448
officer.	449

(D) A copy of an amendment or amended articles changing the	450
name of a corporation or its principal office in this state,	451
certified by the secretary of state, may be filed for record in	452
the office of the county recorder of any county in this state, and	453
for such recording, the county recorder shall charge and collect	454
the same fee as provided for in division (A)(1) of section 317.32	455
of the Revised Code. The copy shall be recorded in the records of	456
deeds.	457

Sec. 1702.38. (A) The articles may be amended from time to	458
time in any respect if the articles as amended set forth all the	459
provisions that are required in, and only those provisions that	460
may properly be in, original articles filed at the time of	461
adopting the amendment, other than with respect to the initial	462
directors, except that a public benefit corporation shall not	463
amend its articles in such manner that it will cease to be a	464
public benefit corporation.	465

(B) Without limiting the generality of the authority	466
described in division (A) of this section, the articles may be	467
amended to:	468

(1) Change the name of the corporation;

469

(2) Change the place in this state where its principal office	470
is to be located;	471

(3) Change, enlarge, or diminish its purpose or purposes;

472

(4) Change any provision of the articles or add any provision	473
that may properly be included in the articles.	474

(C)(1) The voting members present in person, by use of	475
authorized communications equipment, by mail, or, if permitted, by	476
proxy at a meeting held for that purpose, may adopt an amendment	477
by the affirmative vote of a majority of the voting members	478
present if a quorum is present or, if the articles or the	479
regulations provide or permit, by the affirmative vote of a	480
greater or lesser proportion or number of the voting members, and	481
by the affirmative vote of the voting members of any particular	482
class that is required by the articles or the regulations.	483

(2) For purposes of division (C)(1) of this section,	484
participation by a voting member at a meeting through the use of	485
any of the means of communication described in that division	486
constitutes presence in person of that voting member at the	487
meeting for purposes of determining a quorum.	488

(D) In addition to or in lieu of adopting an amendment to the	489
articles, the voting members may adopt amended articles by the	490
same action or vote as that required to adopt the amendment.	491

(E) The directors may adopt amended articles to consolidate	492
the original articles and all previously adopted amendments to the	493
articles that are in force at the time, or the voting members at a	494
meeting held for that purpose may adopt the amended articles by	495
the same vote as that required to adopt an amendment.	496

(F) Amended articles shall set forth all the provisions that	497
are required in, and only the provisions that may properly be in,	498
original articles filed at the time of adopting the amended	499
articles, other than with respect to the initial directors, and	500
shall contain a statement that they supersede the existing	501
articles.	502

(G) Upon the adoption of any amendment or amended articles, a	503
certificate containing a copy of the resolution adopting the	504
amendment or amended articles, a statement of the manner of its	505
adoption, and, in the case of adoption of the resolution by the	506
directors, a statement of the basis for such adoption, shall be	507
filed with the secretary of state, and upon that filing the	508
articles shall be amended accordingly, and the amended articles	509
shall supersede the existing articles. The certificate shall be	510
signed by any authorized officer of the corporation.	511

(H) A copy of an amendment or amended articles changing the	512
name of a corporation or its principal office in this state,	513
certified by the secretary of state, may be filed for record in	514
the office of the county recorder of any county in this state, and	515
for that recording the county recorder shall charge and collect	516
the same fee as provided for in division (A)(1) of section 317.32	517
of the Revised Code. That copy shall be recorded in the records of	518
deeds.	519

Sec. 1703.22. An amendment changing the name of a foreign	520
corporation may be filed for record with the county recorder of	521
any county when accompanied by a certificate from the secretary of	522
state of this state certifying that an amendment evidencing a	523
change in the corporate name has been filed in the secretary of	524
state's office. For such recording the recorder shall charge and	525
collect the same fee as provided for in division (A)(1) of section	526
317.32 of the Revised Code.	527

Sec. 2131.08. (A) Subject to sections 1746.14, 1747.09, and	528
2131.09 of the Revised Code, no interest in real or personal	529
property shall be good unless it must vest, if at all, not later	530
than twenty-one years after a life or lives in being at the	531
creation of the interest. All estates given in tail, by deed or	532
will, in real property lying within this state shall be and remain	533
an absolute estate in fee simple to the issue of the first donee	534
in tail. It is the intention by the adoption of this section to	535
make effective in this state what is generally known as the common	536
law rule against perpetuities, except as set forth in divisions	537
(B) and (C) of this section.	538

(B) For the purposes of this section and subject to sections	539
1746.14, 1747.09, and 2131.09 of the Revised Code, the time of the	540
creation of an interest in real or personal property subject to a	541
power reserved by the grantor to revoke or terminate the interest	542
shall be the time at which the reserved power expires by reason of	543
the death of the grantor, by release of the power, or otherwise.	544

(C) Any interest in real or personal property that would	545
violate the rule against perpetuities, under division (A) of this	546
section, shall be reformed, within the limits of the rule, to	547
approximate most closely the intention of the creator of the	548
interest. In determining whether an interest would violate the	549
rule and in reforming an interest, the period of perpetuities	550
shall be measured by actual rather than possible events.	551

(D) For purposes of this section and subject to sections	552
1746.14, 1747.09, and 2131.09 of the Revised Code, the following	553
apply:	554

(1) The time of the creation of an interest in real or	555
personal property resulting from the exercise of a general power	556
of appointment exercisable in a nonfiduciary capacity by deed,	557
whether or not also exercisable by will, shall be the time at	558
which that power of appointment is exercised.	559

(2) The time of the creation of an interest in real or	560
personal property resulting from the termination, without	561
exercise, of a general power of appointment exercisable in a	562
nonfiduciary capacity by deed, whether or not also exercisable by	563
will, shall be the time at which that power of appointment	564
terminates by reason of the death of the power holder, by release	565
of the power, or otherwise.	566

(E) Divisions (B) and (C) of this section shall be effective	567
with respect to interests in real or personal property created by	568
wills of decedents dying after December 31, 1967, with respect to	569
interests in real or personal property created by inter vivos	570
instruments executed after December 31, 1967, and with respect to	571
interests in real or personal property created by inter vivos	572
instruments executed on or before December 31, 1967, that by	573
reason of division (B) of this section will be treated as	574
interests created after December 31, 1967. Divisions (B) and (C)	575
of this section shall be effective with respect to interests in	576
real or personal property created by the exercise of a power of	577
appointment if divisions (B) and (C) of this section apply to the	578
instrument that exercises the power, whether or not divisions (B)	579
and (C) of this section apply to the instrument that creates the	580
power.	581

(F) Divisions (D) and (G) of this section are intended to be	582
a statement of the common law of this state and shall be effective	583
with respect to interests in real or personal property whenever	584
created.	585

(G) For purposes of this section:

586

(1) "General power of appointment" has the same meaning as in	587
section 2131.09 of the Revised Code.	588

(2) "Exercisable by deed" in reference to a power of	589
appointment means a power that can be exercised during the power	590
holder's lifetime by an instrument that takes effect immediately.	591

Sec. 2131.09. (A) A trust of real or personal property	592
created by an employer as part of a stock bonus plan, pension	593
plan, disability or death benefit plan, or profit-sharing plan,	594
for the benefit of some or all of the employees, to which	595
contributions are made by the employer or employees, or both, for	596
the purpose of distributing to the employees or their	597
beneficiaries the earnings or the principal, or both earnings and	598
principal, of the fund so held in trust is not invalid as	599
violating the rule against perpetuities, any other existing law	600
against perpetuities, or any law restricting or limiting the	601
duration of trusts; but the trust may continue for the time that	602
is necessary to accomplish the purposes for which it was created.	603

The income arising from any trust within the classifications	604
mentioned in this division may be accumulated in accordance with	605
the terms of the trust for as long a time as is necessary to	606
accomplish the purposes for which the trust was created,	607
notwithstanding any law limiting the period during which trust	608
income may be accumulated.	609

No rule of law against perpetuities or the suspension of the	610
power of alienation of the title to property invalidates any trust	611
within the classifications mentioned in this division unless the	612
trust is terminated by decree of a court in a suit instituted	613
within two years after June 25, 1951.	614

(B)(1) No rule of law against perpetuities or suspension of	615
the power of alienation of the title to property, any other	616
existing law against perpetuities, or any law restricting or	617
limiting the duration of trusts shall apply with respect to any	618
interest in real or personal property held in trust if ~~the~~both of	619
the following apply:	620

(a) The instrument creating the trust specifically states	621
that the rule against perpetuities or the provisions of division	622
~~(B)~~(A) of section 2131.08 of the Revised Code shall not apply to	623
the trust ~~and if either the~~.	624

(b) The trustee ~~of the trust~~ has unlimited power ~~to sell all~~	625
~~trust assets~~, or if one or more persons~~, one of whom may be the~~	626
~~trustee, has~~have the unlimited power to direct the trustee or to	627
approve the trustee's decision, either to sell all trust assets or	628
to terminate the entire trust.	629

(2) Division (B)(1) of this section shall apply to the	630
interpretation of a testamentary or inter vivos trust instrument	631
that creates an interest in real or personal property in relation	632
to which one or more of the following conditions ~~applies~~apply:	633

(a) The instrument creating the testamentary or inter vivos	634
trust is executed in this state.	635

(b) The sole trustee or one of the trustees is domiciled in	636
this state.	637

(c) The testamentary or inter vivos trust is administered in	638
this state or the situs of a substantial portion of the assets	639
subject to the testamentary portion of the testamentary or inter	640
vivos trust is in this state, even though some part or all of	641
those assets are physically deposited for safekeeping in a state	642
other than this state.	643

(d) The instrument creating the testamentary or inter vivos	644
trust states that the law of this state is to apply.	645

(3) ~~Division~~Subject to division (C) of this section,	646
division (B) of this section shall be effective with respect to	647
all of the following:	648

(a) An interest in real or personal property in trust created	649
~~by wills of decedents~~under the terms of a will of a decedent	650
dying on or after ~~the effective date of this amendment~~March 22,	651
1999;	652

(b) An interest in real or personal property created byunder	653
the terms of an inter vivos or testamentary trust instrument	654
executed on or after ~~the effective date of this amendment~~March	655
22, 1999;	656

(c) An interest in real or personal property in trust created	657
by the exercise of a general power of appointment on or after ~~the~~	658
~~effective date of this amendment~~March 22, 1999;	659

(d) An interest in real or personal property in trust created	660
by the exercise of a nongeneral power of appointment over any	661
portion of a trust that meets the requirements of division (B) of	662
this section, but only if the date of creation of that nongeneral	663
power of appointment is on or after the effective date of this	664
section.	665

~~(4) Division (B) of this section shall not apply to the~~	666
~~exercise of a power of appointment other than a general power of~~	667
~~appointment.~~	668

(C) The exercise of a nongeneral power of appointment granted	669
over any portion of a trust to which the rule against perpetuities	670
does not apply because the terms of the trust meet the	671
requirements of division (B) of this section shall nevertheless be	672
subject to section 2131.08 of the Revised Code, except that	673
interests created pursuant to the exercise of a nongeneral power	674
of appointment that has a date of creation on or after the	675
effective date of this section shall be required to vest not later	676
than one thousand years after the date of creation of that power.	677

(D) For purposes of this section, the instrument creating a	678
trust subject to a power reserved by the grantor to amend, revoke,	679
or terminate the trust shall include the original instrument	680
establishing the trust and all amendments to the instrument made	681
prior to the time at which the reserved power expires by reason of	682
the death of the grantor, by release of the power, or otherwise.	683

(E) The amendment of division (B)(1) of this section and	684
divisions (D) and (F) of this section are intended to clarify the	685
provisions of this section as originally enacted and apply to	686
trust instruments that are in existence prior to, on, or after the	687
effective date of this section.	688

(F) For purposes of this section~~, "general~~:

689

(1) "General power of appointment" means a power that is	690
exercisable in favor of the individual possessing the power, the	691
~~person's~~individual's estate, the ~~person's~~individual's creditors,	692
or the creditors of the ~~person's~~individual's estate other than	693
either of the following:	694

(a) A power that is limited by an ascertainable standard as	695
defined in section 5801.01 of the Revised Code;	696

(b) A power of withdrawal held by an individual, but only to	697
the extent that it does not exceed the amount specified in section	698
2041(b)(2) or 2514(e) of the "Internal Revenue Code of 1986," 100	699
Stat. 2085, 26 U.S.C. 1 et seq., as amended.	700

(2) "Nongeneral power of appointment" means any power of	701
appointment that is not a general power of appointment.	702

(3) The "date of creation" of a nongeneral power of	703
appointment created by the exercise of one or more powers of	704
appointment, except by the exercise of a general power of	705
appointment exercisable by deed, shall be the date of creation of	706
the first of those powers of appointment to be exercised.	707

(4) "Exercisable by deed" has the same meaning as in section	708
2131.08 of the Revised Code.	709

Sec. 2329.66. (A) Every person who is domiciled in this	710
state may hold property exempt from execution, garnishment,	711
attachment, or sale to satisfy a judgment or order, as follows:	712

(1)(a) In the case of a judgment or order regarding money	713
owed for health care services rendered or health care supplies	714
provided to the person or a dependent of the person, one parcel or	715
item of real or personal property that the person or a dependent	716
of the person uses as a residence. Division (A)(1)(a) of this	717
section does not preclude, affect, or invalidate the creation	718
under this chapter of a judgment lien upon the exempted property	719
but only delays the enforcement of the lien until the property is	720
sold or otherwise transferred by the owner or in accordance with	721
other applicable laws to a person or entity other than the	722
surviving spouse or surviving minor children of the judgment	723
debtor. Every person who is domiciled in this state may hold	724
exempt from a judgment lien created pursuant to division (A)(1)(a)	725
of this section the person's interest, not to exceed ~~twenty~~three	726
hundred fifty thousand ~~two hundred~~ dollars, in the exempted	727
property.	728

(b) In the case of all other judgments and orders, the	729
person's interest, not to exceed ~~twenty~~three hundred fifty	730
thousand ~~two hundred~~ dollars, in one parcel or item of real or	731
personal property that the person or a dependent of the person	732
uses as a residence.	733

(c) For purposes of divisions (A)(1)(a) and (b) of this	734
section, "parcel" means a tract of real property as identified on	735
the records of the auditor of the county in which the real	736
property is located.	737

(2) The person's interest, not to exceed three thousand two	738
hundred twenty-five dollars, in one motor vehicle;	739

(3) The person's interest, not to exceed four hundred	740
dollars, in cash on hand, money due and payable, money to become	741
due within ninety days, tax refunds, and money on deposit with a	742
bank, savings and loan association, credit union, public utility,	743
landlord, or other person, other than personal earnings.	744

(4)(a) The person's interest, not to exceed five hundred	745
twenty-five dollars in any particular item or ten thousand seven	746
hundred seventy-five dollars in aggregate value, in household	747
furnishings, household goods, wearing apparel, appliances, books,	748
animals, crops, musical instruments, firearms, and hunting and	749
fishing equipment that are held primarily for the personal,	750
family, or household use of the person;	751

(b) The person's aggregate interest in one or more items of	752
jewelry, not to exceed one thousand three hundred fifty dollars,	753
held primarily for the personal, family, or household use of the	754
person or any of the person's dependents.	755

(5) The person's interest, not to exceed an aggregate of two	756
thousand twenty-five dollars, in all implements, professional	757
books, or tools of the person's profession, trade, or business,	758
including agriculture;	759

(6)(a) The person's interest in a beneficiary fund set apart,	760
appropriated, or paid by a benevolent association or society, as	761
exempted by section 2329.63 of the Revised Code;	762

(b) The person's interest in contracts of life or endowment	763
insurance or annuities, as exempted by section 3911.10 of the	764
Revised Code;	765

(c) The person's interest in a policy of group insurance or	766
the proceeds of a policy of group insurance, as exempted by	767
section 3917.05 of the Revised Code;	768

(d) The person's interest in money, benefits, charity,	769
relief, or aid to be paid, provided, or rendered by a fraternal	770
benefit society, as exempted by section 3921.18 of the Revised	771
Code;	772

(e) The person's interest in the portion of benefits under	773
policies of sickness and accident insurance and in lump sum	774
payments for dismemberment and other losses insured under those	775
policies, as exempted by section 3923.19 of the Revised Code.	776

(7) The person's professionally prescribed or medically	777
necessary health aids;	778

(8) The person's interest in a burial lot, including, but not	779
limited to, exemptions under section 517.09 or 1721.07 of the	780
Revised Code;	781

(9) The person's interest in the following:

782

(a) Moneys paid or payable for living maintenance or rights,	783
as exempted by section 3304.19 of the Revised Code;	784

(b) Workers' compensation, as exempted by section 4123.67 of	785
the Revised Code;	786

(c) Unemployment compensation benefits, as exempted by	787
section 4141.32 of the Revised Code;	788

(d) Cash assistance payments under the Ohio works first	789
program, as exempted by section 5107.75 of the Revised Code;	790

(e) Benefits and services under the prevention, retention,	791
and contingency program, as exempted by section 5108.08 of the	792
Revised Code;	793

(f) Disability financial assistance payments, as exempted by	794
section 5115.06 of the Revised Code;	795

(g) Payments under section 24 or 32 of the "Internal Revenue	796
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.	797

(10)(a) Except in cases in which the person was convicted of	798
or pleaded guilty to a violation of section 2921.41 of the Revised	799
Code and in which an order for the withholding of restitution from	800
payments was issued under division (C)(2)(b) of that section, in	801
cases in which an order for withholding was issued under section	802
2907.15 of the Revised Code, in cases in which an order for	803
forfeiture was issued under division (A) or (B) of section	804
2929.192 of the Revised Code, and in cases in which an order was	805
issued under section 2929.193 of the Revised Code, and only to the	806
extent provided in the order, and except as provided in sections	807
3105.171, 3105.63, 3119.80, 3119.81, 3121.02, 3121.03, and 3123.06	808
of the Revised Code, the person's ~~right~~rights to or interests in	809
a pension, benefit, annuity, retirement allowance, or accumulated	810
contributions, the person's ~~right~~rights to or interests in a	811
participant account in any deferred compensation program offered	812
by the Ohio public employees deferred compensation board, a	813
government unit, or a municipal corporation, or the person's other	814
accrued or accruing rights or interests, as exempted by section	815
145.56, 146.13, 148.09, 742.47, 3307.41, 3309.66, or 5505.22 of	816
the Revised Code, and the person's ~~right~~rights to or interests in	817
benefits from the Ohio public safety officers death benefit fund;	818

(b) Except as provided in sections 3119.80, 3119.81, 3121.02,	819
3121.03, and 3123.06 of the Revised Code, the person's ~~right~~	820
rights to receive or interests in receiving a payment or other	821
benefits under any pension, annuity, or similar plan or contract,	822
not including a payment or benefit from a stock bonus or	823
profit-sharing plan or a payment included in division (A)(6)(b) or	824
(10)(a) of this section, on account of illness, disability, death,	825
age, or length of service, to the extent reasonably necessary for	826
the support of the person and any of the person's dependents,	827
except if all the following apply:	828

(i) The plan or contract was established by or under the	829
auspices of an insider that employed the person at the time the	830
person's rights or interests under the plan or contract arose.	831

(ii) The payment is on account of age or length of service.

832

(iii) The plan or contract is not qualified under the	833
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as	834
amended.	835

(c) Except for any portion of the assets that were deposited	836
for the purpose of evading the payment of any debt and except as	837
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and	838
3123.06 of the Revised Code, the person's ~~right~~rights or	839
interests in the assets held in, or to directly or indirectly	840
receive any payment or benefit under, any individual retirement	841
account, individual retirement annuity, "Roth IRA," "529 plan," or	842
education individual retirement account that provides payments or	843
benefits by reason of illness, disability, death, retirement, or	844
age or provides payments or benefits for purposes of education, to	845
the extent that the assets, payments, or benefits described in	846
division (A)(10)(c) of this section are attributable to or derived	847
from any of the following or from any earnings, dividends,	848
interest, appreciation, or gains on any of the following:	849

(i) Contributions of the person that were less than or equal	850
to the applicable limits on deductible contributions to an	851
individual retirement account or individual retirement annuity in	852
the year that the contributions were made, whether or not the	853
person was eligible to deduct the contributions on the person's	854
federal tax return for the year in which the contributions were	855
made;	856

(ii) Contributions of the person that were less than or equal	857
to the applicable limits on contributions to a Roth IRA or	858
education individual retirement account in the year that the	859
contributions were made;	860

(iii) Contributions of the person that are within the	861
applicable limits on rollover contributions under subsections 219,	862
402(c), 403(a)(4), 403(b)(8), 408(b), 408(d)(3), 408A(c)(3)(B),	863
408A(d)(3), and 530(d)(5) of the "Internal Revenue Code of 1986,"	864
100 Stat. 2085, 26 U.S.C.A. 1, as amended;	865

(iv) Contributions by any person into any plan, fund, or	866
account that is formed, created, or administered pursuant to, or	867
is otherwise subject to, section 529 of the "Internal Revenue Code	868
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.	869

(d) Except for any portion of the assets that were deposited	870
for the purpose of evading the payment of any debt and except as	871
provided in sections 3119.80, 3119.81, 3121.02, 3121.03, and	872
3123.06 of the Revised Code, the person's ~~right~~rights or	873
interests in the assets held in, or to receive any payment under,	874
any Keogh or "H.R. 10" plan that provides benefits by reason of	875
illness, disability, death, retirement, or age, to the extent	876
reasonably necessary for the support of the person and any of the	877
person's dependents.	878

(e) The person's rights to or interests in any assets held	879
in, or to directly or indirectly receive any payment or benefit	880
under, any individual retirement account, individual retirement	881
annuity, "Roth IRA," "529 plan," or education individual	882
retirement account that a decedent, upon or by reason of the	883
decedent's death, directly or indirectly left to or for the	884
benefit of the person, either outright or in trust or otherwise,	885
including, but not limited to, any of those rights or interests in	886
assets or to receive payments or benefits that were transferred,	887
conveyed, or otherwise transmitted by the decedent by means of a	888
will, trust, exercise of a power of appointment, beneficiary	889
designation, transfer or payment on death designation, or any	890
other method or procedure.	891

(f) The exemptions under divisions (A)(10)(a) to (e) of this	892
section also shall apply or otherwise be available to an alternate	893
payee under a qualified domestic relations order (QDRO) or other	894
similar court order.	895

(g) A person's interest in any plan, program, instrument, or	896
device described in divisions (A)(10)(a) to (e) of this section	897
shall be considered an exempt interest even if the plan, program,	898
instrument, or device in question, due to an error made in good	899
faith, failed to satisfy any criteria applicable to that plan,	900
program, instrument, or device under the "Internal Revenue Code of	901
1986," 100 Stat. 2085, 26 U.S.C. 1, as amended.	902

(11) The person's right to receive spousal support, child	903
support, an allowance, or other maintenance to the extent	904
reasonably necessary for the support of the person and any of the	905
person's dependents;	906

(12) The person's right to receive, or moneys received during	907
the preceding twelve calendar months from, any of the following:	908

(a) An award of reparations under sections 2743.51 to 2743.72	909
of the Revised Code, to the extent exempted by division (D) of	910
section 2743.66 of the Revised Code;	911

(b) A payment on account of the wrongful death of an	912
individual of whom the person was a dependent on the date of the	913
individual's death, to the extent reasonably necessary for the	914
support of the person and any of the person's dependents;	915

(c) Except in cases in which the person who receives the	916
payment is an inmate, as defined in section 2969.21 of the Revised	917
Code, and in which the payment resulted from a civil action or	918
appeal against a government entity or employee, as defined in	919
section 2969.21 of the Revised Code, a payment, not to exceed	920
twenty thousand two hundred dollars, on account of personal bodily	921
injury, not including pain and suffering or compensation for	922
actual pecuniary loss, of the person or an individual for whom the	923
person is a dependent;	924

(d) A payment in compensation for loss of future earnings of	925
the person or an individual of whom the person is or was a	926
dependent, to the extent reasonably necessary for the support of	927
the debtor and any of the debtor's dependents.	928

(13) Except as provided in sections 3119.80, 3119.81,	929
3121.02, 3121.03, and 3123.06 of the Revised Code, personal	930
earnings of the person owed to the person for services in an	931
amount equal to the greater of the following amounts:	932

(a) If paid weekly, thirty times the current federal minimum	933
hourly wage; if paid biweekly, sixty times the current federal	934
minimum hourly wage; if paid semimonthly, sixty-five times the	935
current federal minimum hourly wage; or if paid monthly, one	936
hundred thirty times the current federal minimum hourly wage that	937
is in effect at the time the earnings are payable, as prescribed	938
by the "Fair Labor Standards Act of 1938," 52 Stat. 1060, 29	939
U.S.C. 206(a)(1), as amended;	940

(b) Seventy-five per cent of the disposable earnings owed to	941
the person.	942

(14) The person's right in specific partnership property, as	943
exempted by division (B)(3) of section 1775.24 of the Revised Code	944
or the person's rights in a partnership pursuant to section	945
1776.50 of the Revised Code, except as otherwise set forth in	946
section 1776.50 of the Revised Code;	947

(15) A seal and official register of a notary public, as	948
exempted by section 147.04 of the Revised Code;	949

(16) The person's interest in a tuition unit or a payment	950
under section 3334.09 of the Revised Code pursuant to a tuition	951
payment contract, as exempted by section 3334.15 of the Revised	952
Code;	953

(17) Any other property that is specifically exempted from	954
execution, attachment, garnishment, or sale by federal statutes	955
other than the "Bankruptcy Reform Act of 1978," 92 Stat. 2549, 11	956
U.S.C.A. 101, as amended;	957

(18) The person's aggregate interest in any property, not to	958
exceed one thousand seventy-five dollars, except that division	959
(A)(18) of this section applies only in bankruptcy proceedings.	960

(B) On April 1, 2010, and on the first day of April in each	961
third calendar year after 2010, the Ohio judicial conference shall	962
adjust each dollar amount set forth in this section to reflect ~~the~~	963
~~change~~any increase in the consumer price index for all urban	964
consumers, as published by the United States department of labor,	965
or, if that index is no longer published, a generally available	966
comparable index, for the three-year period ending on the	967
thirty-first day of December of the preceding year. Any	968
adjustments required by this division shall be rounded to the	969
nearest twenty-five dollars.	970

The Ohio judicial conference shall prepare a memorandum	971
specifying the adjusted dollar amounts. The judicial conference	972
shall transmit the memorandum to the director of the legislative	973
service commission, and the director shall publish the memorandum	974
in the register of Ohio. (Publication of the memorandum in the	975
register of Ohio shall continue until the next memorandum	976
specifying an adjustment is so published.) The judicial conference	977
also may publish the memorandum in any other manner it concludes	978
will be reasonably likely to inform persons who are affected by	979
its adjustment of the dollar amounts.	980

981

(1) "Disposable earnings" means net earnings after the	982
garnishee has made deductions required by law, excluding the	983
deductions ordered pursuant to section 3119.80, 3119.81, 3121.02,	984
3121.03, or 3123.06 of the Revised Code.	985

(2) "Insider" means:

986

(a) If the person who claims an exemption is an individual, a	987
relative of the individual, a relative of a general partner of the	988
individual, a partnership in which the individual is a general	989
partner, a general partner of the individual, or a corporation of	990
which the individual is a director, officer, or in control;	991

(b) If the person who claims an exemption is a corporation, a	992
director or officer of the corporation; a person in control of the	993
corporation; a partnership in which the corporation is a general	994
partner; a general partner of the corporation; or a relative of a	995
general partner, director, officer, or person in control of the	996
corporation;	997

(c) If the person who claims an exemption is a partnership, a	998
general partner in the partnership; a general partner of the	999
partnership; a person in control of the partnership; a partnership	1000
in which the partnership is a general partner; or a relative in, a	1001
general partner of, or a person in control of the partnership;	1002

(d) An entity or person to which or whom any of the following	1003
applies:	1004

(i) The entity directly or indirectly owns, controls, or	1005
holds with power to vote, twenty per cent or more of the	1006
outstanding voting securities of the person who claims an	1007
exemption, unless the entity holds the securities in a fiduciary	1008
or agency capacity without sole discretionary power to vote the	1009
securities or holds the securities solely to secure to debt and	1010
the entity has not in fact exercised the power to vote.	1011

(ii) The entity is a corporation, twenty per cent or more of	1012
whose outstanding voting securities are directly or indirectly	1013
owned, controlled, or held with power to vote, by the person who	1014
claims an exemption or by an entity to which division (C)(2)(d)(i)	1015
of this section applies.	1016

(iii) A person whose business is operated under a lease or	1017
operating agreement by the person who claims an exemption, or a	1018
person substantially all of whose business is operated under an	1019
operating agreement with the person who claims an exemption.	1020

(iv) The entity operates the business or all or substantially	1021
all of the property of the person who claims an exemption under a	1022
lease or operating agreement.	1023

(e) An insider, as otherwise defined in this section, of a	1024
person or entity to which division (C)(2)(d)(i), (ii), (iii), or	1025
(iv) of this section applies, as if the person or entity were a	1026
person who claims an exemption;	1027

(f) A managing agent of the person who claims an exemption.

1028

(3) "Participant account" has the same meaning as in section	1029
148.01 of the Revised Code.	1030

(4) "Government unit" has the same meaning as in section	1031
148.06 of the Revised Code.	1032

(D) For purposes of this section, "interest" shall be	1033
determined as follows:	1034

(1) In bankruptcy proceedings, as of the date a petition is	1035
filed with the bankruptcy court commencing a case under Title 11	1036
of the United States Code;	1037

(2) In all cases other than bankruptcy proceedings, as of the	1038
date of an appraisal, if necessary under section 2329.68 of the	1039
Revised Code, or the issuance of a writ of execution.	1040

An interest, as determined under division (D)(1) or (2) of	1041
this section, shall not include the amount of any lien otherwise	1042
valid pursuant to section 2329.661 of the Revised Code.	1043

Sec. 2329.661. (A) Division (A)(1) of section 2329.66 of the	1044
Revised Code does not:	1045

(1) Extend to a judgment rendered on a mortgage executed, or	1046
security interest given on real or personal property by a debtor	1047
or to a claim for less than four hundred dollars for manual work	1048
or labor;	1049

(2) Impair the lien, by mortgage or otherwise, of the vendor	1050
for the purchase money of real or personal property that the	1051
debtor or a dependent of the debtor uses as a residence,or the	1052
lien of a mechanic or other person, under a statute of this state,	1053
for materials furnished or labor performed in the erection of a	1054
dwelling house on real property~~, or a lien for the payment of~~	1055
~~taxes due on real property~~;	1056

(3) Affect or invalidate any mortgage on any real property,	1057
or any lien created by such a mortgage;	1058

(4) Impair a lien for the payment of taxes, debts, or other	1059
obligations owed to this state or any agency or political	1060
subdivision of this state;	1061

(5) Extend to a judgment rendered against a debtor for	1062
tortious operation of a motor vehicle by the debtor that results	1063
in injury, death, or loss to person or property if that injury,	1064
death, or loss was caused at a time when the debtor failed to	1065
maintain proof of finanical responsibility as defined in section	1066
4509.01 of the Revised Code.	1067

(B) No promise, agreement, or contract shall be made or	1068
entered into that would waive the exemption laws of this state,	1069
and every promise, agreement, or contract insofar as it seeks to	1070
waive the exemption laws of this state is void.	1071

(C) Section 2329.66 of the Revised Code does not affect or	1072
invalidate any sale, contract of sale, conditional sale, security	1073
interest, or pledge of any personal property, or any lien created	1074
thereby.	1075

Sec. 5805.06. (A) Whether or not the terms of a trust	1076
contain a spendthrift provision, all of the following apply:	1077

(1) During the lifetime of the settlor, the property of a	1078
revocable trust is subject to claims of the settlor's creditors.	1079

(2) ~~With~~Except to the extent that a trust is established	1080
pursuant to, or otherwise is wholly or partially governed by or	1081
subject to Chapter 5816. of the Revised Code, with respect to an	1082
irrevocable trust, a creditor or assignee of the settlor may reach	1083
the maximum amount that can be distributed to or for the settlor's	1084
benefit. If aan irrevocable trust has more than one settlor, the	1085
amount distributable to or for a settlor's benefit that the	1086
creditor or assignee of a particular settlor may reach may not	1087
exceed ~~the~~that settlor's interest in the portion of the trust	1088
attributable to that settlor's contribution. The right of a	1089
creditor or assignee to reach a settlor's interest in an	1090
irrevocable trust shall be subject to Chapter 5816. of the Revised	1091
Code to the extent that that chapter applies to that trust.	1092

(3) With respect to a trust described in 42 U.S.C. section	1093
1396p(d)(4)(A) or (C), the court may limit the award of a	1094
settlor's creditor under division (A)(1) or (2) of this section to	1095
the relief that is appropriate under the circumstances,	1096
considering among any other factors determined appropriate by the	1097
court, the supplemental needs of the beneficiary.	1098

(B) For purposes of this section, all of the following apply:

1099

(1) The holder of a power of withdrawal is treated in the	1100
same manner as the settlor of a revocable trust to the extent of	1101
the property subject to the power during the period the power may	1102
be exercised.	1103

(2) Upon the lapse, release, or waiver of the power of	1104
withdrawal, the holder is treated as the settlor of the trust only	1105
to the extent the value of the property affected by the lapse,	1106
release, or waiver exceeds the greatest of the following amounts:	1107

(a) The amount specified in section 2041(b)(2) or 2514(e) of	1108
the Internal Revenue Code;	1109

(b) If the donor of the property subject to the holder's	1110
power of withdrawal is not married at the time of the transfer of	1111
the property to the trust, the amount specified in section 2503(b)	1112
of the Internal Revenue Code;	1113

(c) If the donor of the property subject to the holder's	1114
power of withdrawal is married at the time of the transfer of the	1115
property to the trust, twice the amount specified in section	1116
2503(b) of the Internal Revenue Code.	1117

(3) None of the following shall be considered an amount that	1118
can be distributed to or for the benefit of the settlor:	1119

(a) Trust property that could be, but has not yet been,	1120
distributed to or for the benefit of the settlor only as a result	1121
of the exercise of a power of appointment held in a nonfiduciary	1122
capacity by any person other than the settlor;	1123

(b) Trust property that could be, but has not yet been,	1124
distributed to or for the benefit of the settlor of a trust	1125
pursuant to the power of the trustee to make distributions or	1126
pursuant to the power of another in a fiduciary capacity to direct	1127
distributions, if and to the extent that the distributions could	1128
be made from trust property the value of which was included in the	1129
gross estate of the settlor's spouse for federal estate tax	1130
purposes under section 2041 or 2044 of the Internal Revenue Code	1131
or that was treated as a transfer by the settlor's spouse under	1132
section 2514 or 2519 of the Internal Revenue Code;	1133

(c) Trust property that, pursuant to the exercise of a	1134
discretionary power by a person other than the settlor, could be	1135
paid to a taxing authority or to reimburse the settlor for any	1136
income tax on trust income or principal that is payable by the	1137
settlor under the law imposing the tax.	1138

Sec. 5808.08. (A) While a trust is revocable, the trustee	1139
may follow a direction of the settlor that is contrary to the	1140
terms of the trust.	1141

(B) As provided in section 5815.25 of the Revised Code, a	1142
trustee is not liable for losses resulting from certain actions or	1143
failures to act when other persons are granted certain powers with	1144
respect to the administration of the trust.	1145

(C) The terms of a trust may confer upon a trustee or other	1146
person a power to direct the modification or termination of the	1147
trust.	1148

(D) AExcept to the extent otherwise provided by the terms of	1149
a trust, a person other than a beneficiary who holds a power to	1150
direct, including, but not limited to, a power to direct the	1151
modification or termination of a trust, is presumptively a	1152
fiduciary who, as a fiduciary, is required to act in good faith	1153
with regard to the purposes of the trust and the interests of the	1154
beneficiaries. The holder of a power to direct is liable for any	1155
loss that results from breach of a fiduciary duty.	1156

Sec. 5808.18. (A) Unless the trust instrument expressly	1157
provides otherwise and subject to the limitations set forth in	1158
this section, all of the following apply:	1159

(1) If a trustee of a trust, referred to in this section as	1160
the "first trust," has absolute power under the terms of the first	1161
trust to make distributions of principal to one or more current	1162
beneficiaries, that trustee may exercise that power by	1163
distributing all or any part of the principal subject to the	1164
power, and all or any part of any income that is not otherwise	1165
currently required to be distributed, to the trustee of another	1166
trust, referred to in this section as the "second trust," that is	1167
for the benefit of one or more current beneficiaries of the first	1168
trust. The second trust may be a trust under the trust instrument	1169
for the first trust or under a different governing instrument,	1170
including a governing instrument created by the trustee of the	1171
first trust. A trustee of a first trust who is authorized to make	1172
distributions to the trustee of a second trust pursuant to	1173
division (A) of this section may do so at any time, whether or not	1174
the trustee of the first trust would otherwise have made a	1175
distribution at that time to, or for the benefit of, any	1176
beneficiary pursuant to the terms of the first trust.	1177

(2) In determining whether a trustee has absolute power to	1178
make distributions of principal to any current beneficiary and the	1179
identity of the current beneficiaries, all of the following apply:	1180

(a) An absolute power to distribute principal includes any	1181
power to make distributions of principal that is not limited by	1182
reasonably definite standards or ascertainable standards, whether	1183
or not the word "absolute" is used in the trust instrument.	1184

(b) A power to make distributions of principal for purposes	1185
that include best interests, welfare, comfort or happiness, or	1186
words of similar import, if not otherwise limited by reasonably	1187
definite standards or ascertainable standards, constitutes an	1188
absolute power not limited by reasonably definite standards or	1189
ascertainable standards, regardless of any requirement to take	1190
into account other resources of the current beneficiary or	1191
beneficiaries to whom those distributions may be made.	1192

(c) If the current beneficiaries of the first trust are	1193
defined, in whole or in part, as a class of persons, that class	1194
includes any person who falls within that class of persons after	1195
the distribution to the second trust.	1196

(d) A power to make distributions for the benefit of a	1197
beneficiary is considered a power to make distributions to that	1198
beneficiary.	1199

(3) If property is distributed pursuant to the authority	1200
described in division (A) of this section, the governing	1201
instrument for the second trust may do either or both of the	1202
following:	1203

(a) Grant a power of appointment to one or more of the	1204
beneficiaries for whose benefit the property was so distributed,	1205
including a power to appoint trust property to the power holder,	1206
the power holder's creditors, the power holder's estate, the	1207
creditors of the power holder's estate, or any other person,	1208
whether or not that person is a beneficiary of the first trust or	1209
the second trust;	1210

(b) Provide that, at a time or upon an event specified in	1211
that governing instrument, the remaining trust property shall	1212
thereafter be held for the benefit of the beneficiaries of the	1213
first trust upon terms and conditions that are substantially	1214
identical to the terms and conditions of the trust instrument for	1215
the first trust, except that any current beneficiary or	1216
beneficiaries for whose benefit the property could have been, but	1217
was not, so distributed may be excluded from having any beneficial	1218
interest in the second trust.	1219

(4) For purposes of division (A)(3) of this section, "terms	1220
and conditions" refer only to those terms and conditions that	1221
govern the interests of the beneficiaries.	1222

(5) For purposes of division (A) of this section, charitable	1223
organizations that are not expressly designated in the terms of	1224
the first trust to receive distributions but to which the trustee	1225
of the first trust, in the discretion of the trustee, or in the	1226
discretion of any other person directing the trustee and acting in	1227
a fiduciary capacity, may at any time make a distribution, are	1228
considered beneficiaries of the first trust.	1229

(B) Unless the trust instrument expressly provides otherwise	1230
and subject to the limitations set forth in this section, a	1231
trustee of a first trust who has power, other than absolute power	1232
as described in division (A) of this section, under the terms of	1233
the first trust to make distributions of principal to one or more	1234
current beneficiaries may exercise that power by distributing all	1235
or any part of the principal subject to the power, and all or any	1236
part of any income that is not otherwise currently required to be	1237
distributed, to the trustee of a second trust. The second trust	1238
may be a trust under the trust instrument for the first trust or	1239
under a different governing instrument, including a governing	1240
instrument created by the trustee of the first trust. The power	1241
described in this division may be exercised whether or not there	1242
is a current need to distribute trust principal under any standard	1243
contained in the first trust. The exercise of a trustee's power	1244
under this division is valid only if the governing instrument for	1245
the second trust does not materially change the interests of the	1246
beneficiaries of the first trust. For purposes of this division, a	1247
power to make distributions for the benefit of a beneficiary shall	1248
be considered a power to make distributions to that beneficiary.	1249

(C) The exercise of the power to make distributions to a	1250
second trust under division (A) or (B) of this section is subject	1251
to the following additional limitations:	1252

(1)(a) The distribution to the trustee of the second trust	1253
shall not result in the reduction, limitation, or modification of	1254
any of the following rights or interests of a beneficiary of the	1255
first trust if the right or interest has come into effect with	1256
respect to the beneficiary:	1257

(i) The current right to a mandatory distribution of income	1258
or principal of the first trust;	1259

(ii) The current mandatory annuity or unitrust interest in	1260
the property of the first trust;	1261

(iii) The right annually to withdraw a percentage of the	1262
value of the first trust or a specified dollar amount.	1263

(b) For purposes of division (C)(1)(a)(i) of this section, a	1264
beneficiary's current right to a distribution of income is not	1265
considered to be mandatory if, under the terms of the first trust,	1266
current distributions of principal may be made to any person other	1267
than that current beneficiary.	1268

(2) If any transfer to the first trust qualified, or if not	1269
for the provisions of division (A) or (B) of this section would	1270
have qualified, for a marital or charitable deduction for purposes	1271
of any federal income, gift, or estate tax under the Internal	1272
Revenue Code, or for purposes of any state income, gift, estate,	1273
or inheritance tax, the governing instrument for the second trust	1274
shall not include or omit any term that, if included in or omitted	1275
from the trust instrument for the first trust, would have	1276
prevented the first trust from qualifying for that deduction, or	1277
would have reduced the amount of the deduction, under the same	1278
provisions of the Internal Revenue Code or under the same	1279
provisions of the applicable state law under which the transfer to	1280
the first trust so qualified.	1281

(3) If any transfer to the first trust has been treated, or	1282
if not for the provisions of division (A) or (B) of this section	1283
would have been treated, as a gift qualifying for the exclusion	1284
from the gift tax described in section 2503(b) of the Internal	1285
Revenue Code, the governing instrument for the second trust shall	1286
not include or omit any term that, if included in or omitted from	1287
the trust instrument for the first trust, would have prevented any	1288
gift to the first trust from so qualifying under the same	1289
provisions of section 2503 of the Internal Revenue Code under	1290
which the transfer to the first trust so qualified.	1291

(4) If the assets of the first trust include any shares of	1292
stock in an S corporation, as defined in section 1361 of the	1293
Internal Revenue Code, and the first trust is, or if not for the	1294
provisions of division (A) or (B) of this section would be, a	1295
permitted shareholder under any provision of section 1361 of the	1296
Internal Revenue Code, the governing instrument for the second	1297
trust shall not include or omit any term that, if included in or	1298
omitted from the trust instrument for the first trust, would have	1299
prevented the first trust from qualifying as a permitted	1300
shareholder of shares of stock in an S corporation under the same	1301
provisions of section 1361 of the Internal Revenue Code under	1302
which the first trust so qualified.	1303

(5) If any transfer to the first trust has been treated, or	1304
if not for the provisions of division (A) or (B) of this section	1305
would have been treated, as a gift qualifying for a zero inclusion	1306
ratio for purposes of the federal generation-skipping transfer tax	1307
under section 2642(c) of the Internal Revenue Code, the governing	1308
instrument for the second trust shall not include or omit any term	1309
that, if included in or omitted from the trust instrument for the	1310
first trust, would have prevented the transfer to the first trust	1311
from so qualifying.	1312

(6) If the assets of the first trust include any interest	1313
subject to the minimum distribution rules of section 401(a)(9) of	1314
the Internal Revenue Code and the treasury regulations issued	1315
under that section, the governing instrument for the second trust	1316
shall not include or omit any term that, if included in or omitted	1317
from the trust instrument for the first trust, would have	1318
shortened the maximum distribution period otherwise allowable	1319
under section 401(a)(9) of the Internal Revenue Code and the	1320
treasury regulations with respect to that interest under the first	1321
trust.	1322

(7)(a) As used in division (C)(7) of this section, "tax	1323
benefit" means any federal or state tax deduction, exemption,	1324
exclusion, or other tax benefit not otherwise listed in division	1325
(C) of this section.	1326

(b) If the trust instrument for the first trust expressly	1327
indicates an intention to qualify for any tax benefit or if the	1328
terms of the trust instrument for the first trust are clearly	1329
designed to enable the first trust to qualify for a tax benefit,	1330
and if the first trust did qualify, or if not for the provisions	1331
of division (A) or (B) of this section would have qualified, for	1332
any tax benefit, the governing instrument for the second trust	1333
shall not include or omit any term that, if included in or omitted	1334
from the trust instrument for the first trust, would have	1335
prevented the first trust from qualifying for that tax benefit.	1336

(8) The distribution to the trustee of the second trust shall	1337
not result in either of the following:	1338

(a) An increase in, or a change in the method of determining,	1339
the compensation of the trustee unless the increase in, or change	1340
in the method of determining, that compensation has been consented	1341
to by all of the persons, other than the trustee of the second	1342
trust, who are current beneficiaries of the second trust or is	1343
approved by the court having jurisdiction over the trust. However,	1344
an increase in compensation of the trustee arising solely because	1345
the duration of the second trust is longer than the duration of	1346
the first trust is not considered an increase in, or a change in	1347
the method of determining, the compensation of the trustee.	1348

(b) A reduction in the standard of care applicable to the	1349
actions of the trustee of the first trust or the second trust or	1350
an exoneration of the trustee of the first trust or the second	1351
trust from liability for actions taken in bad faith or with	1352
willful disregard of the duties of either trustee, including by	1353
increasing the extent to which the trustee is entitled to	1354
indemnification from the trust, as provided in the terms of the	1355
first trust and under any law of this state.	1356

(D) The exercise of the power to distribute trust income or	1357
principal to the trustee of a second trust under division (A) or	1358
(B) of this section shall be by an instrument in writing, signed	1359
by the trustee of the first trust and filed with the records of	1360
the first trust.	1361

(E) The power to distribute trust income or principal to the	1362
trustee of a second trust under division (A) or (B) of this	1363
section shall not be exercised in a manner contrary to any	1364
provision of section 2131.08 of the Revised Code to the extent	1365
applicable to the first trust, and after applying the provisions	1366
of ~~division (B) of~~ section 2131.09 of the Revised Code to the	1367
extent applicable to the first trust. Solely for purposes of	1368
applying under this division the provisions of ~~section~~sections	1369
2131.08 and ~~division (B) of section~~ 2131.09 of the Revised Code,	1370
the exercise of the power to distribute trust income or principal	1371
to the trustee of a second trust under division (A) or (B) of this	1372
section is considered the exercise of a nongeneral power of	1373
appointment ~~other than a general power of appointment within the~~	1374
~~meaning of~~as defined in division ~~(B)(4)~~(F) of section 2131.09 of	1375
the Revised Code.	1376

(F) The trustee of the first trust shall notify all current	1377
beneficiaries of the first trust, in writing, of the intended	1378
distribution to the trustee of a second trust pursuant to division	1379
(A) or (B) of this section not later than thirty days prior to	1380
that distribution. The distribution may be made prior to the	1381
expiration of thirty days from the date on which that notice is	1382
given to all current beneficiaries of the first trust if all of	1383
those current beneficiaries waive the thirty-day period from	1384
receipt of that notice. The trustee's giving of notice of an	1385
intended distribution under this division or the waiver or	1386
expiration of that thirty-day period from receipt of the notice do	1387
not limit the right of any beneficiary to object to the exercise	1388
of the trustee's power to distribute trust principal as provided	1389
in any other applicable provision of the Ohio Trust Code.	1390

(G) Any person, other than the trustee, who has a power	1391
exercisable in a fiduciary capacity to direct the trustee to make	1392
any distribution of principal that, if held by the trustee, would	1393
be a power to make a distribution as described in division (A) or	1394
(B) of this section, may exercise that power by directing the	1395
trustee to make a distribution under either division (A) or (B) of	1396
this section, whichever would be applicable if that person were	1397
the trustee, subject to all of the limitations described in this	1398
section that apply to a trustee's exercise of that power.	1399

(H) The exercise of the power to distribute trust income or	1400
principal to the trustee of a second trust under division (A) or	1401
(B) of this section is not prohibited by a spendthrift clause or a	1402
provision in the trust instrument that prohibits the amendment or	1403
revocation of the trust.	1404

(I) For purposes of division (A) of section 5808.14 of the	1405
Revised Code, a trustee who acts reasonably and in good faith in	1406
exercising the power to distribute trust income or principal to	1407
the trustee of a second trust in accordance with division (A) or	1408
(B) of this section, is presumed to have acted in accordance with	1409
the terms and purposes of the trust and the interests of the	1410
beneficiaries.	1411

(J) Nothing in this section is intended to create or imply a	1412
duty to exercise a power to distribute income or principal of a	1413
trust, and no inference of impropriety shall arise as a result of	1414
a trustee not exercising the power to make any distribution to the	1415
trustee of a second trust under division (A) or (B) of this	1416
section.	1417

(K) If the first trust is a testamentary trust established	1418
under the will of a testator who was domiciled in this state at	1419
the time of the testator's death, the power to distribute trust	1420
income or principal to the trustee of a second trust under	1421
division (A) or (B) of this section may be exercised only if	1422
approved by the court, if any, that has jurisdiction over the	1423
testamentary trust.	1424

(L) Divisions (A) and (B) of this section do not apply to	1425
either of the following:	1426

(1) Any trust during any period that the trust may be revoked	1427
or amended by its settlor;	1428

(2) Any trustee with respect to any portion of the first	1429
trust as to which that trustee is also the settlor.	1430

(M) If, and to the extent that, a trustee makes any	1431
distribution pursuant to division (A) or (B) of this section to	1432
the trustee of a second trust, then for purposes of division (W)	1433
of section 5801.01 of the Revised Code, the governing instrument	1434
for the second trust is considered to be an amendment of the trust	1435
instrument signed by the settlor of the first trust, even if that	1436
governing instrument is signed by a person other than that	1437
settlor.	1438

(N) Nothing in this section shall be construed to limit the	1439
power of any trustee to distribute trust property in further	1440
trust, whether that power arises under the terms of the trust	1441
instrument, under any other section of Title LVIII of the Revised	1442
Code, under any other statute, or under the common law. The terms	1443
of a trust instrument may do any of the following:	1444

(1) Confer upon the trustee the power to make any	1445
distribution, or confer upon any other person acting in a	1446
fiduciary capacity the power to direct the trustee to make any	1447
distribution, in further trust that is broader or more limited	1448
than, or that conflict with, the provisions of this section;	1449

(2) Provide for different requirements for notice to	1450
beneficiaries of the trust of the trustee's exercise of the power	1451
conferred under the terms of the trust instrument or described in	1452
division (A) or (B) of this section;	1453

(3) Waive any requirement of notice to the beneficiaries of	1454
the trust of the trustee's exercise of the power conferred under	1455
the terms of the trust instrument or described in division (A) or	1456
(B) of this section;	1457

(4) Otherwise include any terms and conditions governing the	1458
distribution in further trust that the settlor of the trust	1459
determines.	1460

(O)(1) Division (A) of this section is intended to be a	1461
codification of the common law of this state in effect prior to	1462
~~the enactment of this section~~March 22, 2012, and applies to	1463
distributions, whenever made, from any trust that is governed by	1464
the law of this state or that has its principal place of	1465
administration in this state, whether that trust was created	1466
before, on, or after ~~the effective date of this section~~March 22,	1467
2012.	1468

(2) Division (B) of this section applies to distributions	1469
made on or after ~~the effective date of this section~~March 22,	1470
2012, from any trust that is governed by the law of this state or	1471
that has its principal place of administration in this state,	1472
whether that trust was created before, on, or after ~~the effective~~	1473
~~date of this section~~March 22, 2012.	1474

Sec. 5815.24. (A) As used in this section, "fiduciary" means	1475
a trustee under any expressed, implied, resulting, or constructive	1476
trust; an executor, administrator, public administrator,	1477
committee, guardian, conservator, curator, receiver, trustee in	1478
bankruptcy, or assignee for the benefit of creditors; a partner,	1479
agent, officer of a public or private corporation, or public	1480
officer; or any other person acting in a fiduciary capacity for	1481
any person, trust, or estate.	1482

(B) A fiduciary, or a custodian, who is a transferee of real	1483
or personal property that is held by a fiduciary other than the	1484
person or entity serving as the transferee, is not required to	1485
inquire into any act, or audit any account, of the transferor	1486
fiduciary, unless the transferee is specifically directed to do so	1487
in the instrument governing the transferee or unless the	1488
transferee has actual knowledge of conduct of the transferor that	1489
would constitute a breach of the transferor's fiduciary	1490
responsibilities.	1491

(C) If a trustee is authorized or directed in a trust	1492
instrument to pay or advance all or any part of the trust property	1493
to the personal representative of a decedent's estate for the	1494
payment of the decedent's legal obligations, death taxes,	1495
bequests, or expenses of administration, the trustee is not liable	1496
for the application of the trust property paid or advanced to the	1497
personal representative and is not liable for any act or omission	1498
of the personal representative with respect to the trust property,	1499
unless the trustee has actual knowledge, prior to the payment or	1500
advancement of the trust property, that the personal	1501
representative does not intend to use the trust property for such	1502
purposes.	1503

(D) Regardless of whether a beneficiary is subject to the	1504
claims of any creditor, a trustee may pay any expense incurred by	1505
a beneficiary to the extent that payment is permitted by the	1506
instrument governing the trust, and the trustee may make those	1507
payments even if the payments exhaust the income and principal of	1508
the trust. A trustee is not liable to any creditor of a	1509
beneficiary for paying the expenses of a beneficiary as allowed by	1510
this division.	1511

Sec. 5815.25. (A) As used in this section, "fiduciary" means	1512
a trustee under any testamentary, inter vivos, or other trust, an	1513
executor or administrator, or any other person who is acting in a	1514
fiduciary capacity for any person, trust, or estate.	1515

(B) ~~When~~If an instrument or other applicable written	1516
agreement describes, appoints, or directs a fiduciary to handle	1517
only the administrative duties and responsibilities of a trust,	1518
that administrative fiduciary shall not have any duties,	1519
responsibilities, or liabilities to the trust beneficiaries or to	1520
other persons interested in a trust except for those	1521
administrative duties and responsibilities specifically described	1522
in the instrument or written agreement. The administrative duties	1523
and responsibilities of a trust under this division may include	1524
any of the following:	1525

(1) Opening and maintaining bank, brokerage, financial, or	1526
other custodial accounts to receive trust income or contributions	1527
and from which trust expenditures, bills, and distributions may be	1528
disbursed;	1529

(2) Maintaining and handling trust records, reports,	1530
correspondence, or communications;	1531

(3) Maintaining an office for trust business;

1532

(4) Filing any trust tax returns;

1533

(5) Employing agents in connection with the fiduciary's	1534
administrative duties;	1535

(6) Taking custody of or storing trust property;

1536

(7) Any other similar administrative duties for the trust.

1537

(C) If an instrument under which a fiduciary acts reserves to	1538
the grantor, or vests in an advisory or investment committee or in	1539
one or more other persons, including one or more fiduciaries, to	1540
the exclusion of the fiduciary or of one or more of several	1541
fiduciaries, any power, including, but not limited to, the	1542
authority to direct the acquisition, disposition, or retention of	1543
any investment or the power to authorize any act that an excluded	1544
fiduciary may propose, any excluded fiduciary is not liable,	1545
either individually or as a fiduciary, for either of the	1546
following:	1547

(1) Any loss that results from compliance with an authorized	1548
direction of the grantor, committee, person, or persons;	1549

(2) Any loss that results from a failure to take any action	1550
proposed by an excluded fiduciary that requires a prior	1551
authorization of the grantor, committee, person, or persons if	1552
that excluded fiduciary timely sought but failed to obtain that	1553
authorization.	1554

~~(C)~~(D) Any administrative fiduciary as described in division	1555
(B) of this section or any excluded fiduciary as described in	1556
division ~~(B)~~(C) of this section is relieved from any obligation to	1557
perform investment reviews and make recommendations with respect	1558
to any investments to the extent the grantor, an advisory or	1559
investment committee, or one or more other persons have authority	1560
to direct the acquisition, disposition, or retention of any	1561
investment.	1562

~~(D)~~(E) This section does not apply to the extent that the	1563
instrument under which an administrative fiduciary as described in	1564
division (B) of this section or an excluded fiduciary as described	1565
in division ~~(B)~~(C) of this section ~~acts~~ contains provisions that	1566
are inconsistent with this section.	1567

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

1568

(1) "Disclaimant" means any person, any guardian or personal	1569
representative of a person or estate of a person, or any	1570
attorney-in-fact or agent of a person having a general or specific	1571
authority to act granted in a written instrument, who is any of	1572
the following:	1573

(a) With respect to testamentary instruments and intestate	1574
succession, an heir, next of kin, devisee, legatee, donee, person	1575
succeeding to a disclaimed interest, surviving joint tenant,	1576
surviving tenant by the entireties, surviving tenant of a tenancy	1577
with a right of survivorship, beneficiary under a testamentary	1578
instrument, or person designated to take pursuant to a power of	1579
appointment exercised by a testamentary instrument;	1580

(b) With respect to nontestamentary instruments, a grantee,	1581
donee, person succeeding to a disclaimed interest, surviving joint	1582
tenant, surviving tenant by the entireties, surviving tenant of a	1583
tenancy with a right of survivorship, beneficiary under a	1584
nontestamentary instrument, or person designated to take pursuant	1585
to a power of appointment exercised by a nontestamentary	1586
instrument;	1587

(c) With respect to fiduciary rights, privileges, powers, and	1588
immunities, a fiduciary under a testamentary or nontestamentary	1589
instrument. Division (A)(1)(c) of this section does not authorize	1590
a fiduciary who disclaims fiduciary rights, privileges, powers,	1591
and immunities to cause the rights of any beneficiary to be	1592
disclaimed unless the instrument creating the fiduciary	1593
relationship authorizes the fiduciary to make such a disclaimer.	1594

(d) Any person entitled to take an interest in property upon	1595
the death of a person or upon the occurrence of any other event.	1596

(2) "Personal representative" includes any fiduciary as	1597
defined in section 2109.01 of the Revised Code and any executor,	1598
trustee, guardian, or other person or entity having a fiduciary	1599
relationship with regard to any interest in property passing to	1600
the fiduciary, executor, trustee, guardian, or other person or	1601
entity by reason of a disclaimant's death.	1602

(3) "Property" means all forms of property, real and	1603
personal, tangible and intangible.	1604

(B)(1) A disclaimant, other than a fiduciary under an	1605
instrument who is not authorized by the instrument to disclaim the	1606
interest of a beneficiary, may disclaim, in whole or in part, the	1607
succession to any property by executing and by delivering, filing,	1608
or recording a written disclaimer instrument in the manner	1609
provided in this section.	1610

(2) A disclaimant who is a fiduciary under an instrument may	1611
disclaim, in whole or in part, any right, power, privilege, or	1612
immunity, by executing and by delivering, filing, or recording a	1613
written disclaimer instrument in the manner provided in this	1614
section.	1615

(3) The written instrument of disclaimer shall be signed and	1616
acknowledged by the disclaimant and shall contain all of the	1617
following:	1618

(a) A reference to the donative instrument;

1619

(b) A description of the property, part of property, or	1620
interest disclaimed, and of any fiduciary right, power, privilege,	1621
or immunity disclaimed;	1622

1623

(4) The guardian of the estate of a minor or an incompetent,	1624
or the personal representative of a deceased person, whether or	1625
not authorized by the instrument to disclaim, with the consent of	1626
the probate division of the court of common pleas may disclaim, in	1627
whole or in part, the succession to any property, or interest in	1628
property, that the ward, if an adult and competent, or the	1629
deceased, if living, might have disclaimed. The guardian or	1630
personal representative, or any interested person may file an	1631
application with the probate division of the court of common pleas	1632
that has jurisdiction of the estate, asking that the court order	1633
the guardian or personal representative to execute and deliver,	1634
file, or record the disclaimer on behalf of the ward, estate, or	1635
deceased person. The court shall order the guardian or personal	1636
representative to execute and deliver, file, or record the	1637
disclaimer if the court finds, upon hearing after notice to	1638
interested parties and such other persons as the court shall	1639
direct, that:	1640

(a) It is in the best interests of those interested in the	1641
estate of the person and of those who will take the disclaimed	1642
interest;	1643

(b) It would not materially, adversely affect the minor or	1644
incompetent, or the beneficiaries of the estate of the decedent,	1645
taking into consideration other available resources and the age,	1646
probable life expectancy, physical and mental condition, and	1647
present and reasonably anticipated future needs of the minor or	1648
incompetent or the beneficiaries of the estate of the decedent.	1649

A written instrument of disclaimer ordered by the court under	1650
this division shall be executed and be delivered, filed, or	1651
recorded within the time and in the manner in which the person	1652
could have disclaimed if the person were living, an adult, and	1653
competent.	1654

(C) A partial disclaimer of property that is subject to a	1655
burdensome interest created by the donative instrument is not	1656
effective unless the disclaimed property constitutes a gift that	1657
is separate and distinct from undisclaimed gifts.	1658

(D) The disclaimant shall deliver, file, or record the	1659
disclaimer, or cause the same to be done, prior to accepting any	1660
benefits of the disclaimed interest and at any time after the	1661
latest of the following dates:	1662

(1) The effective date of the donative instrument if both the	1663
taker and the taker's interest in the property are finally	1664
ascertained on that date;	1665

(2) The date of the occurrence of the event upon which both	1666
the taker and the taker's interest in the property become finally	1667
ascertainable;	1668

(3) The date on which the disclaimant attains eighteen years	1669
of age or is no longer an incompetent, without tendering or	1670
repaying any benefit received while the disclaimant was under	1671
eighteen years of age or an incompetent, and even if a guardian of	1672
a minor or incompetent had filed an application pursuant to	1673
division (B)(4) of this section and the probate division of the	1674
court of common pleas involved did not consent to the guardian	1675
executing a disclaimer.	1676

(E) No disclaimer instrument is effective under this section	1677
if either of the following applies under the terms of the	1678
disclaimer instrument:	1679

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

1680

(2) The disclaimant may transfer, or direct to be	1681
transferred, to self the entire legal and equitable ownership of	1682
the property subject to the disclaimer instrument.	1683

(F)(1) Subject to division (F)(2) of this section, if the	1684
interest disclaimed is created by a nontestamentary instrument,	1685
including, but not limited to, a transfer on death designation	1686
affidavit pursuant to section 5302.22 of the Revised Code, the	1687
disclaimer instrument shall be delivered personally or by	1688
certified mail to the trustee or other person who has legal title	1689
to, or possession of, the property disclaimed. If the interest	1690
disclaimed is created by a transfer on death designation affidavit	1691
pursuant to section 5302.22 of the Revised Code, the disclaimer	1692
instrument shall be filed with the county recorder of the county	1693
in which the real property that is the subject of that affidavit	1694
is located.	1695

(2) If the interest disclaimed is created by a testamentary	1696
instrument, by intestate succession, or by a certificate of title	1697
to a motor vehicle, watercraft, or outboard motor that evidences	1698
ownership of the motor vehicle, watercraft, or outboard motor that	1699
is transferable on death pursuant to section 2131.13 of the	1700
Revised Code, the disclaimer instrument shall be filed in the	1701
probate division of the court of common pleas in the county in	1702
which proceedings for the administration of the decedent's estate	1703
have been commenced, and an executed copy of the disclaimer	1704
instrument shall be delivered personally or by certified mail to	1705
the personal representative of the decedent's estate.	1706

(3) If no proceedings for the administration of the	1707
decedent's estate have been commenced, the disclaimer instrument	1708
shall be filed in the probate division of the court of common	1709
pleas in the county in which proceedings for the administration of	1710
the decedent's estate might be commenced according to law. The	1711
disclaimer instrument shall be filed and indexed, and fees	1712
charged, in the same manner as provided by law for an application	1713
to be appointed as personal representative to administer the	1714
decedent's estate. The disclaimer is effective whether or not	1715
proceedings thereafter are commenced to administer the decedent's	1716
estate. If proceedings thereafter are commenced for the	1717
administration of the decedent's estate, they shall be filed	1718
under, or consolidated with, the case number assigned to the	1719
disclaimer instrument.	1720

(4) If an interest in real estate is disclaimed, an executed	1721
copy of the disclaimer instrument also shall be recorded in the	1722
office of the recorder of the county in which the real estate is	1723
located. The disclaimer instrument shall include a description of	1724
the real estate with sufficient certainty to identify it, and	1725
shall contain a reference to the record of the instrument that	1726
created the interest disclaimed. If title to the real estate is	1727
registered under Chapters 5309. and 5310. of the Revised Code, the	1728
disclaimer interest shall be entered as a memorial on the last	1729
certificate of title. A spouse of a disclaimant has no dower or	1730
other interest in the real estate disclaimed.	1731

(G) If a donative instrument expressly provides for the	1732
distribution of property, part of property, or interest in	1733
property if there is a disclaimer, the property, part of property,	1734
or interest disclaimed shall be distributed or disposed of, and	1735
accelerated or not accelerated, in accordance with the donative	1736
instrument. In the absence of express provisions to the contrary	1737
in the donative instrument, the property, part of property, or	1738
interest in property disclaimed, and any future interest that is	1739
to take effect in possession or enjoyment at or after the	1740
termination of the interest disclaimed, shall descend, be	1741
distributed, or otherwise be disposed of, and shall be	1742
accelerated, in the following manner:	1743

(1) If intestate or testate succession is disclaimed, as if	1744
the disclaimant had predeceased the decedent;	1745

(2) If the disclaimant is one designated to take pursuant to	1746
a power of appointment exercised by a testamentary instrument, as	1747
if the disclaimant had predeceased the donee of the power;	1748

(3) If the donative instrument is a nontestamentary	1749
instrument, as if the disclaimant had died before the effective	1750
date of the nontestamentary instrument;	1751

(4) If the disclaimer is of a fiduciary right, power,	1752
privilege, or immunity, as if the right, power, privilege, or	1753
immunity was never in the donative instrument.	1754

(H) A disclaimer pursuant to this section is effective as of,	1755
and relates back for all purposes to, the date upon which the	1756
taker and the taker's interest have been finally ascertained.	1757

(I) A disclaimant who has a present and future interest in	1758
property, and disclaims the disclaimant's present interest in	1759
whole or in part, is considered to have disclaimed the	1760
disclaimant's future interest to the same extent, unless a	1761
contrary intention appears in the disclaimer instrument or the	1762
donative instrument. A disclaimant is not precluded from	1763
receiving, as an alternative taker, a beneficial interest in the	1764
property disclaimed, unless a contrary intention appears in the	1765
disclaimer instrument or in the donative instrument.	1766

(J) The disclaimant's right to disclaim under this section is	1767
barred if the disclaimant does any of the following:	1768

(1) Assigns, conveys, encumbers, pledges, or transfers, or	1769
contracts to assign, convey, encumber, pledge, or transfer, the	1770
property or any interest in it;	1771

(2) Waives in writing the disclaimant's right to disclaim and	1772
executes and delivers, files, or records the waiver in the manner	1773
provided in this section for a disclaimer instrument;	1774

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

1775

(4) Permits or suffers a sale or other disposition of the	1776
property pursuant to judicial action against the disclaimant.	1777

(K) Neither a fiduciary's application for appointment or	1778
assumption of duties as a fiduciary nor a beneficiary's	1779
application for appointment as a personal representative or	1780
fiduciary waives or bars the disclaimant's right to disclaim a	1781
right, power, privilege, or immunity as a personal representative	1782
or fiduciary or the beneficiary's right to disclaim property.	1783

(L) The right to disclaim under this section exists	1784
irrespective of any limitation on the interest of the disclaimant	1785
in the nature of a spendthrift provision or similar restriction.	1786

(M) A disclaimer instrument or written waiver of the right to	1787
disclaim that has been executed and delivered, filed, or recorded	1788
as required by this section is final and binding upon all persons.	1789

(N)(1) The right to disclaim and the procedures for	1790
disclaimer established by this section are in addition to, and do	1791
not exclude or abridge, any other rights or procedures that exist	1792
or formerly existed under any other section of the Revised Code or	1793
at common law to assign, convey, release, refuse to accept,	1794
renounce, waive, or disclaim property.	1795

(2) A disclaimer is not considered a transfer or conveyance	1796
by the disclaimant, and no creditor of a disclaimant may avoid a	1797
disclaimer.	1798

(3) This section shall take precedence over any other section	1799
of the Revised Code that conflicts with this section.	1800

(O)(1) No person is liable for distributing or disposing of	1801
property in a manner inconsistent with the terms of a valid	1802
disclaimer if the distribution or disposition is otherwise proper	1803
and the person has no actual knowledge of the disclaimer.	1804

(2) No person is liable for distributing or disposing of	1805
property in reliance upon the terms of a disclaimer that is	1806
invalid because the right of disclaimer has been waived or barred	1807
if the distribution or disposition is otherwise proper and the	1808
person has no actual knowledge of the facts that constitute a	1809
waiver or bar to the right to disclaim.	1810

(P)(1) A disclaimant may disclaim pursuant to this section	1811
any interest in property that is in existence on September 27,	1812
1976, if either the interest in the property or the taker of the	1813
interest in the property is not finally ascertained on that date.	1814

(2) No disclaimer executed pursuant to this section destroys	1815
or diminishes an interest in property that exists on September 27,	1816
1976, in any person other than the disclaimant.	1817

(Q) This section may be applied separately to different	1818
interests or powers created in the disclaimant by the same	1819
testamentary or nontestamentary instrument.	1820

Sec. 5815.37. (A) If any interest in real property held by	1821
any trustee of an express trust that is wholly or partially	1822
governed by a law of this state or any interest in real property	1823
located in this state that is held by the trustee of a trust	1824
wholly governed by the law of one or more jurisdictions other than	1825
this state is temporarily conveyed to any beneficiary of that	1826
trust and reconveyed back to any trustee of that trust, the	1827
interest in the real property shall be subject to divisions (B)	1828
and (C) of this section if all of the following apply:	1829

(1) That temporary conveyance is for the principal purpose of	1830
enabling some or all of that interest in the real property to be	1831
used as collateral in a loan transaction.	1832

(2) The loan proceeds will be delivered to the trustee of the	1833
trust or will otherwise be principally used for the benefit of one	1834
or more beneficiaries of the trust.	1835

(3) The interest in the real property is reconveyed back to	1836
one or more trustees of the trust within a reasonable time after	1837
the reconveying beneficiary acquired actual notice that the lender	1838
has perfected the lender's collateral rights in and to the	1839
interest in the real property.	1840

(4) The lender in question is any of the following:

1841

(a) A bank, thrift, savings bank, savings and loan	1842
association, credit union, or any other similar financial	1843
institution if the activities of the other similar financial	1844
institution are subject to supervision by the Ohio superintendent	1845
of financial institutions, the federal deposit insurance	1846
corporation, the comptroller of the currency, the office of thrift	1847
supervision, any other comparable state or federal regulatory	1848
agency or entity, or a successor of any of them;	1849

(b) An insurance company subject to supervision by the Ohio	1850
department of insurance or any comparable agency established by	1851
the law of any other jurisdiction;	1852

(c) Any other corporation, limited liability company,	1853
partnership, or other similar or comparable entity the routine and	1854
regular business activities of which commonly include the making	1855
of commercial or residential loans that are wholly or partially	1856
secured by real property.	1857

(B) If a temporary conveyance and reconveyance of an interest	1858
in real property is made for the principal purpose of allowing a	1859
lender to acquire, perfect, foreclose on, or exercise collateral	1860
rights in and to the real property interest in question, the	1861
temporary conveyance to a beneficiary shall be disregarded for all	1862
other purposes, and the reconveyance back to a trustee shall	1863
relate back to the date immediately preceding that reconveyance on	1864
which the interest in the real property was transferred to any	1865
trustee of the trust in a transaction other than a loan	1866
transaction described in division (A)(1) of this section.	1867

(C) In connection with any temporary conveyance and	1868
reconveyance of an interest in real property pursuant to division	1869
(A) of this section, the following shall survive unimpaired after	1870
any reconveyance back to a trustee made pursuant to division	1871
(A)(3) of this section:	1872

(1) The rights, duties, and obligations of a lender under the	1873
documents governing the loan transaction, including, but not	1874
limited to, any of the following to the extent they are provided	1875
for in those documents:	1876

(a) A lender's collateral rights in and to any interest in	1877
real property that is reconveyed to a trustee;	1878

(b) The lender's rights under any mortgage, deed of trust,	1879
lien, encumbrance, or any other similar or comparable instrument	1880
or arrangement used to give the lender collateral rights in and to	1881
the interest being reconveyed, including, but not limited to, a	1882
lender's right to foreclose on that interest in real property;	1883

(c) The lender's obligations to make loans or advances or to	1884
provide any person with any notice called for by the documents	1885
governing the loan transaction.	1886

(2) The rights, duties, and obligations of any debtor under	1887
any documents governing the loan transaction, including, but not	1888
limited to, the following to the extent they are provided for in	1889
those documents:	1890

(a) The duty to repay the lender or any other person who is	1891
entitled to receive payments under the documents governing the	1892
loan transaction;	1893

(b) The duty to honor any agreements or covenants made by the	1894
debtor in the documents governing the loan transaction;	1895

(c) The right to receive any advances, loans, notices, or	1896
other benefits called for by the documents governing the loan	1897
transaction.	1898

(D) The following apply for purposes of division (A)(1) of	1899
this section:	1900

(1) A court shall liberally construe the temporary conveyance	1901
to a beneficiary of the trust in question in determining whether	1902
the principal purpose of the temporary conveyance is to enable	1903
some or all of the interest in the real property to be used as	1904
collateral in a loan transaction.	1905

(2) An interest in real property shall be considered to be	1906
used as collateral if, as part of a lending transaction, that	1907
interest is wholly or partially made subject to a mortgage, deed	1908
of trust, lien, encumbrance, or any other similar or comparable	1909
instrument or arrangement used to give the lender collateral	1910
rights in and to that interest.	1911

(E) A court shall liberally construe division (A)(2) of this	1912
section in determining whether the loan proceeds referred to in	1913
that division will be principally used for the benefit of one or	1914
more beneficiaries of the trust in question.	1915

(F) For purposes of division (A)(3) of this section, any	1916
reconveyance to a trustee shall be considered to have occurred	1917
within a reasonable time if it is made within one hundred twenty	1918
days of the date on which the reconveying beneficiary acquired	1919
actual notice that the lender has perfected the lender's	1920
collateral rights in and to the interest in the real property. In	1921
all other cases, a court shall consider all relevant facts and	1922
circumstances in determining whether a beneficiary has reconveyed	1923
the interest in the real property back to a trustee within a	1924
reasonable time after the reconveying beneficiary acquired that	1925
actual notice.	1926

(G)(1) A court shall liberally construe division (A)(4) of	1927
this section in determining whether a corporation, limited	1928
liability company, partnership, or other similar or comparable	1929
entity qualifies as a lender within the meaning of that division.	1930

(2) Subject to the rule of liberal interpretation set forth	1931
in division (G)(1) of this section, the Ohio superintendent of	1932
financial institutions may from time to time issue regulations	1933
setting forth a nonexhaustive list of entities that qualify as a	1934
lender within the meaning of division (A)(4) of this section and	1935
also may from time to time issue regulations setting forth	1936
specific entities or classes of entities that do not qualify as a	1937
lender within the meaning of that division.	1938

(H) An interest in real property may be subject to or	1939
involved in more than one loan transaction undertaken pursuant to	1940
this section.	1941

Sec. 5816.01. This chapter may be cited as the Ohio legacy	1942
trust act.	1943

Sec. 5816.02. As used in this chapter, unless the context	1944
otherwise requires:	1945

(A)(1) "Advisor" means a person to whom both of the following	1946
apply:	1947

(a) The person satisfies the eligibility criteria specified	1948
in division (A) of section 5816.11 of the Revised Code.	1949

(b) The person is given the authority by the terms of a	1950
legacy trust to remove or appoint one or more trustees of the	1951
trust or to direct, consent to, or disapprove a trustee's actual	1952
or proposed investment, distribution, or other decisions.	1953

(2) Any person to whom division (A)(1) of this section	1954
applies is considered an advisor even if that person is	1955
denominated by another title, such as protector.	1956

(B) "Asset" means property of a transferor but does not	1957
include any of the following:	1958

(1) Property to the extent it is encumbered by a valid lien;

1959

(2) Property to the extent it is exempt at the time of a	1960
qualified disposition under any applicable nonbankruptcy law,	1961
including, but not limited to, section 2329.66 of the Revised	1962
Code;	1963

(3) Property held in the form of a tenancy by the entireties	1964
to the extent that, under the law governing the entireties estate	1965
at the time of a qualified disposition, it is not subject to	1966
process by a creditor holding a claim against only one tenant;	1967

(4) Any property transferred from a nonlegacy trust to a	1968
legacy trust to the extent that the property would not be subject	1969
to attachment under the applicable nonbankruptcy law governing	1970
that nonlegacy trust.	1971

(C) "Bankruptcy Code" means the United States Bankruptcy	1972
Code, 11 U.S.C. Chapter 11, as amended.	1973

(D) "Beneficiary" has the same meaning as in section 5801.01	1974
of the Revised Code.	1975

(E) "Claim" means a right to payment, whether or not the	1976
right is reduced to judgment or is liquidated, unliquidated,	1977
fixed, contingent, matured, unmatured, disputed, undisputed,	1978
legal, equitable, secured, or unsecured.	1979

(F) "Creditor" means a person who has a claim against a	1980
transferor and any transferee or assignee of, or successor to,	1981
that claim.	1982

(G) "Debt" means a liability on a claim.

1983

(H) "Disposition" means a transfer, conveyance, or assignment	1984
of property, including, but not limited to, a partial, contingent,	1985
undivided, or co-ownership interest in property. "Disposition"	1986
includes the exercise of a general power so as to cause a transfer	1987
of property to a trustee or trustees but does not include any of	1988
the following:	1989

(1) The release or relinquishment of an interest in property	1990
that, until the release or relinquishment, was the subject of a	1991
qualified disposition;	1992

(2) The exercise of a limited power so as to cause a transfer	1993
of property to a trustee or trustees;	1994

(3) A disclaimer of an interest in a trust, bequest, devise,	1995
or inheritance.	1996

(I) "Internal Revenue Code" means the "Internal Revenue Code	1997
of 1986," 100 Stat. 2085, 26 U.S.C. 1 et seq., as amended.	1998

(J) "Investment decision" means any participation in any	1999
decision regarding the retention, purchase, sale, exchange,	2000
tender, or other transaction affecting the ownership of or rights	2001
in investments.	2002

(K)(1) "Legacy trust" means a trust evidenced by a written	2003
trust instrument to which all of the following apply:	2004

(a) The trust has, names, or appoints at least one qualified	2005
trustee for or in connection with the property that is the subject	2006
of a qualified disposition.	2007

(b) The trust expressly incorporates the laws of this state	2008
to wholly or partially govern its validity, construction, and	2009
administration.	2010

2011

(d) The trust has a spendthrift provision applicable to the	2012
interests of any beneficiary in the trust property, including any	2013
interests of a transferor in the trust property.	2014

(2) A trust that satisfies the criteria specified in division	2015
(K)(1) of this section is considered a legacy trust even if the	2016
trust instrument also allows for one or more nonqualified trustees	2017
and regardless of the language used to satisfy those criteria.	2018

(L) "Lien" has the same meaning as in section 1336.01 of the	2019
Revised Code.	2020

(M) "Nonlegacy trust" means any trust other than a legacy	2021
trust.	2022

(N) "Nonqualified trustee" means any trustee other than a	2023
qualified trustee.	2024

(O) "Person" has the same meaning as in section 5801.01 of	2025
the Revised Code.	2026

(P) "Property" has the same meaning as in section 5801.01 of	2027
the Revised Code.	2028

(Q) "Qualified affidavit" means an affidavit that meets the	2029
requirements of section 5816.06 of the Revised Code.	2030

(R) "Qualified disposition" means a disposition by or from a	2031
transferor to any trustee of a trust that is, was, or becomes a	2032
legacy trust.	2033

(S) "Qualified trustee" means a person who is not a	2034
transferor and to whom both of the following apply:	2035

(1)(a) The person, if a natural person, is a resident of this	2036
state.	2037

(b) The person, if not a natural person, is authorized by the	2038
law of this state or by a court of competent jurisdiction of this	2039
state to act as a trustee and whose activities are subject to	2040
supervision by the Ohio superintendent of banks, the federal	2041
deposit insurance corporation, the comptroller of the currency, or	2042
the office of thrift supervision or a successor of any of them.	2043

(2) The person maintains or arranges for custody in this	2044
state of some or all of the property that is the subject of the	2045
qualified disposition, maintains records for the legacy trust on	2046
an exclusive or nonexclusive basis, prepares or arranges for the	2047
preparation of required income tax returns for the legacy trust,	2048
or otherwise materially participates in the administration of the	2049
legacy trust.	2050

(T) "Spendthrift provision" has the same meaning as in	2051
section 5801.01 of the Revised Code.	2052

(U) "Spouse" and "former spouse" means only the person to	2053
whom a transferor was married on or before a qualified disposition	2054
is made.	2055

(V) "Transferor" means a person who directly or indirectly	2056
makes a disposition.	2057

(W) "Valid lien" has the same meaning as in section 1336.01	2058
of the Revised Code.	2059

Sec. 5816.03. (A) In addition to any other method allowed by	2060
law, the spendthrift provision of a legacy trust may be stated as	2061
provided in division (B) of section 5805.01 of the Revised Code.	2062

(B) Except as otherwise provided in this section, the	2063
spendthrift provisions of a legacy trust shall restrain both	2064
voluntary and involuntary transfer of a transferor's interest in	2065
that trust. Any spendthrift provision in a legacy trust is	2066
enforceable under any applicable nonbankruptcy law within the	2067
meaning of section 541(c)(2) of the Bankruptcy Code regardless of	2068
whether or not the relevant legacy trust instrument makes any	2069
reference to that enforceability. In addition to the restraints	2070
required by this division, a legacy trust and its spendthrift	2071
provisions may provide for any other restraints on alienation that	2072
are permitted by any law of this state.	2073

(C) Notwithstanding division (B) of this section or the terms	2074
of any spendthrift provision, but subject to divisions (D), (E),	2075
and (F) of this section, a transferor's interest in property that	2076
is the subject of a qualified disposition may be attached or	2077
otherwise involuntarily alienated in connection with any debt that	2078
the transferor owes pursuant to an agreement or court order for	2079
either of the following:	2080

(1) The payment of child or spousal support or alimony to or	2081
for the transferor's spouse, former spouse, child, or children, or	2082
to any governmental agency that is designated by statute, rule, or	2083
regulation to be the payee of that child or spousal support or	2084
alimony;	2085

(2) The division or distribution of property in favor of the	2086
transferor's spouse or former spouse.	2087

(D) A transferor's interest in property that is transferred	2088
pursuant to a qualified disposition and the transferor's	2089
beneficial interest in a legacy trust shall not be subject to any	2090
claim for forced heirship or legitime.	2091

(E) A transferor's interest in property that is transferred	2092
pursuant to a qualified disposition and the transferor's	2093
beneficial interest in a legacy trust shall not be subject to a	2094
distributive award under section 3105.171 of the Revised Code or	2095
to any similar award under the law of another jurisdiction, to any	2096
person other than the transferor's spouse or former spouse. A	2097
court shall liberally construe and apply this provision in finding	2098
that such similarity exists.	2099

(F) Nothing in this section shall deprive any beneficiary of	2100
any exemption rights that the beneficiary may have under any	2101
applicable law after the trust property is received by that	2102
beneficiary.	2103

Sec. 5816.04. To the extent conferred by the governing	2104
legacy trust instrument, a transferor to a legacy trust may have	2105
any or all of the rights, powers, and interests described in	2106
section 5816.05 of the Revised Code. A transferor shall have no	2107
rights, powers, or interests in, over, to, or regarding the corpus	2108
or income of a legacy trust unless those rights, powers, or	2109
interests are granted, permitted, or recognized by both section	2110
5816.05 of the Revised Code and the governing legacy trust	2111
instrument. Any written, verbal, tacit, express, or implied	2112
agreement or understanding or any other agreement or understanding	2113
purporting to grant, permit, or recognize any greater rights,	2114
powers, or interests than are provided in this section or the	2115
governing legacy trust instrument is void. Any portion of a legacy	2116
trust instrument that is not voided under this section shall	2117
remain valid and effective.	2118

Sec. 5816.05. A legacy trust may allow or provide for any or	2119
all of the following rights, powers, interests, or provisions,	2120
none of which grants, or is considered to be, either alone or in	2121
any combination, a right or power to revoke a trust or to	2122
voluntarily or involuntarily transfer an interest in that trust:	2123

(A) A provision that, upon the happening of a defined event,	2124
results in the termination of a transferor's right to mandatory	2125
income or principal;	2126

(B) The power of a transferor to veto a distribution from the	2127
trust;	2128

(C) A power of appointment, other than a power to appoint to	2129
a transferor, a creditor of the transferor, the estate of the	2130
transferor, or a creditor of the transferor's estate, that is	2131
exercisable by will or by other written instrument of a transferor	2132
effective upon the death of the transferor or during the lifetime	2133
of the transferor;	2134

(D) The right of a transferor to receive trust income as set	2135
forth in the trust instrument.	2136

(E) Both of the following:

2137

(1) A transferor's potential or actual receipt of income or	2138
principal from a charitable remainder unitrust or charitable	2139
remainder annuity trust as those terms are defined in section 664	2140
of the Internal Revenue Code;	2141

(2) The transferor's right, at any time and from time to time	2142
by written instrument delivered to the trustee, to release the	2143
transferor's retained interest in that unitrust or annuity trust,	2144
in whole or in part, in favor of one or more charitable	2145
organizations that have a succeeding beneficial interest in that	2146
unitrust or annuity trust;	2147

(F) The power of a transferor to consume, invade, or	2148
appropriate property of the trust, but only if limited in each	2149
calendar year to five per cent of the value of the trust principal	2150
at the time of the exercise of the power;	2151

(G) A transferor's potential or actual receipt or use of	2152
principal or income of the trust if the potential or actual	2153
receipt or use is or would be the result of any of the following	2154
that applies with respect to one or more of the qualified	2155
trustees:	2156

(1) A qualified trustee's acting in the trustee's discretion.	2157
For purposes of division (G)(1) of this section, a qualified	2158
trustee shall have discretion with respect to the distribution or	2159
use of principal or income unless the discretion is expressly	2160
denied to the trustee by the terms of the trust instrument.	2161

(2) A qualified trustee's acting pursuant to a standard in	2162
the trust instrument that governs the distribution or use of	2163
principal or income;	2164

(3) A qualified trustee's acting at the direction of an	2165
advisor who is acting in the advisor's discretion or pursuant to a	2166
standard in the trust instrument that governs the distribution or	2167
use of principal or income. If an advisor is authorized to direct	2168
that distribution or use, the advisor's authority shall be	2169
discretionary unless otherwise expressly stated in the trust	2170
instrument.	2171

(H) The right of a transferor to remove any advisor and	2172
appoint a new advisor who satisfies the eligibility criteria set	2173
forth in division (A) of section 5816.11 of the Revised Code;	2174

(I) The right of a transferor to remove any trustee and	2175
appoint a new trustee;	2176

(J) A transferor's potential or actual use of real property	2177
or tangible personal property, including, but not limited to,	2178
property held under a qualified personal residence trust as	2179
described in section 2702(c) of the Internal Revenue Code and	2180
regulations promulgated under that section, or a transferor's	2181
possession and enjoyment of a qualified interest as defined in	2182
section 2702(b) of the Internal Revenue Code;	2183

(K) Any provision requiring or permitting the potential or	2184
actual use of trust income or principal to pay, in whole or in	2185
part, income taxes due on the income of the trust, including, but	2186
not limited to, any provision permitting that use in the	2187
discretion of any one or more of the qualified trustees acting in	2188
the qualified trustee's discretion or at the direction of an	2189
advisor who is acting in the advisor's discretion;	2190

(L) The ability of a qualified trustee, whether pursuant to	2191
the qualified trustee's discretion or the terms of the legacy	2192
trust instrument or at the direction of an advisor, to pay after	2193
the death of a transferor all or any part of the debts of the	2194
transferor outstanding on or before the transferor's death, the	2195
expenses of administering the transferor's estate, or any estate,	2196
gift, generation skipping transfer, or inheritance tax;	2197

(M) Any provision that pours back after the death of a	2198
transferor all or part of the trust property to the transferor's	2199
estate or any trust;	2200

(N) Any other rights, powers, interests, or provisions	2201
permitted or allowed by any other section of this chapter.	2202

Sec. 5816.06. (A) Except as otherwise provided in this	2203
section, a transferor shall sign a qualified affidavit before or	2204
substantially contemporaneously with making a qualified	2205
disposition.	2206

(B) A qualified affidavit shall be notarized and shall	2207
contain all of the following statements under oath:	2208

(1) The property being transferred to the trust was not	2209
derived from unlawful activities.	2210

(2) The transferor has full right, title, and authority to	2211
transfer the property to the legacy trust.	2212

(3) The transferor will not be rendered insolvent immediately	2213
after the transfer of the property to the legacy trust.	2214

(4) The transferor does not intend to defraud any creditor by	2215
transferring the property to the legacy trust.	2216

(5) There are no pending or threatened court actions against	2217
the transferor, except for any court action identified by the	2218
affidavit or an attachment to the affidavit.	2219

(6) The transferor is not involved in any administrative	2220
proceeding, except for any proceeding identified by the affidavit	2221
or an attachment to the affidavit.	2222

(7) The transferor does not contemplate at the time of the	2223
transfer the filing for relief under the Bankruptcy Code.	2224

(C) A qualified affidavit is considered defective if it	2225
materially fails to meet the requirements set forth in division	2226
(B) of this section, but a qualified affidavit is not considered	2227
defective due to any one or more of the following:	2228

(1) Any nonsubstantive variances from the language set forth	2229
in division (B) of this section;	2230

(2) Any statements or representations in addition to those	2231
set forth in division (B) of this section if the statements or	2232
representations do not materially contradict the statements or	2233
representations required by that division;	2234

(3) Any technical errors in the form, substance, or method of	2235
administering an oath if those errors were not the fault of the	2236
affiant, and the affiant reasonably relied upon another person to	2237
prepare or administer the oath.	2238

(D)(1) A qualified affidavit is not required from a	2239
transferor who is not a beneficiary of the legacy trust that	2240
receives the disposition.	2241

(2) A subsequent qualified affidavit is not required in	2242
connection with any qualified disposition made after the execution	2243
of an earlier qualified affidavit if that disposition is a part	2244
of, is required by, or is the direct result of, a prior qualified	2245
disposition that was made in connection with that earlier	2246
qualified affidavit.	2247

(E) If a qualified affidavit is required by this section and	2248
a transferor fails to timely sign a qualified affidavit or signs a	2249
defective qualified affidavit, subject to the normal rules of	2250
evidence, that failure or defect may be considered as evidence in	2251
any proceeding commenced pursuant to section 5816.07 of the	2252
Revised Code, but the legacy trust or the validity of any	2253
attempted qualified disposition shall not be affected in any other	2254
way due to that failure or defect.	2255

Sec. 5816.07. (A) Notwithstanding any provision of law to	2256
the contrary but subject to division (G) of section 5816.10 of the	2257
Revised Code, no creditor may bring an action of any kind,	2258
including, but not limited to, an action to enforce a judgment	2259
entered by a court or other body having adjudicative authority, an	2260
action at law or in equity, or an action for an attachment or	2261
other final or provisional remedy, against any person who made or	2262
received a qualified disposition, against or involving any	2263
property that is the subject of a qualified disposition or is	2264
otherwise held by or for any trustee as part of a legacy trust, or	2265
against any trustee of a legacy trust, except that a creditor,	2266
subject to this section and section 5816.08 of the Revised Code,	2267
may bring an action to avoid any qualified disposition of an asset	2268
on the ground that a transferor made the qualified disposition	2269
with the specific intent to defraud the specific creditor bringing	2270
the action.	2271

(B) A creditor's cause of action or claim for relief under	2272
division (A) of this section to avoid any qualified disposition of	2273
an asset is extinguished unless that action is brought by a	2274
creditor of a transferor who meets one of the following	2275
requirements:	2276

(1) The creditor is a creditor of the transferor before the	2277
relevant qualified disposition, and the action is brought within	2278
the later of the following periods:	2279

(a) Eighteen months after the qualified disposition;

2280

(b) Six months after the qualified disposition is or	2281
reasonably could have been discovered by the creditor if the	2282
creditor files a suit against the transferor, other than an action	2283
under division (A) of this section to avoid the qualified	2284
disposition, or makes a written demand for payment on the	2285
transferor that in either case asserts a claim based on an act or	2286
omission of the transferor that occurred before the qualified	2287
disposition, and that suit is filed, or the written demand is	2288
delivered to the transferor, within three years after the	2289
qualified disposition.	2290

(2) The creditor becomes a creditor after the qualified	2291
disposition, and the action under division (A) of this section to	2292
avoid the qualified disposition is brought within eighteen months	2293
after the qualified disposition.	2294

(C) In any action to avoid the qualified disposition under	2295
this section, the burden is upon the creditor to prove the matter	2296
by a preponderance of the evidence. This division is construed as	2297
providing a substantive rather than a procedural rule or right	2298
under the law of this state.	2299

(D) Notwithstanding any provision of law to the contrary but	2300
subject to division (G) of section 5816.10 of the Revised Code, a	2301
creditor or any other person shall have only the rights and	2302
remedies with respect to a qualified disposition that are provided	2303
in this section and section 5816.08 of the Revised Code, and the	2304
creditor or other person shall have no claim or cause of action	2305
against any trustee or advisor of a legacy trust or against any	2306
person involved in the counseling in connection with, or the	2307
drafting, preparation, execution, administration, or funding of, a	2308
legacy trust.	2309

(E) Notwithstanding any provision of law to the contrary but	2310
subject to division (G) of section 5816.10 of the Revised Code,	2311
and in addition to any other limitations, restrictions, or bars	2312
imposed by this section, no action of any kind, including, but not	2313
limited to, an action to enforce a judgment entered by a court or	2314
other body having adjudicative authority, shall be brought at law	2315
or in equity against a trustee or an advisor of a legacy trust or	2316
against any person involved in the counseling in connection with,	2317
or the drafting, preparation, execution, administration, or	2318
funding of, a legacy trust if and to the extent that, in	2319
connection with the qualified disposition that forms the basis of	2320
that action, the time in which a creditor could sue to avoid that	2321
qualified disposition would have expired under this section.	2322

(F) If more than one qualified disposition is made in	2323
connection with the same legacy trust, all of the following apply:	2324

(1) Each qualified disposition will be separately evaluated,	2325
without regard to any subsequent qualified disposition, to	2326
determine whether a creditor's claim regarding that particular	2327
qualified disposition is extinguished as provided in division (B)	2328
of this section.	2329

(2) The following apply when determining the order in which	2330
property is paid, applied, or distributed from a legacy trust:	2331

(a) Any payment, application, or distribution of money is	2332
considered to have been made from or with the money most recently	2333
received or acquired by any trustee of a legacy trust except to	2334
the extent that it is proven otherwise beyond a reasonable doubt.	2335
As used in division (F)(2)(a) of this section:	2336

(i) "Money" means cash or cash equivalents.

2337

(ii) "Cash" means the coins or currency of the United States	2338
or any other nation.	2339

(iii) "Cash equivalent" includes certified or uncertified	2340
checks; money orders; bank drafts; any electronic transfer of	2341
funds; negotiable instruments; instruments indorsed in blank or in	2342
bearer form; securities issued or guaranteed by the United States,	2343
any state of the United States, or any state or federal agency;	2344
funds on deposit in any savings or checking account or any similar	2345
account; funds on deposit in any money market account or similar	2346
account; any demand deposit account, time deposit account, or	2347
savings deposit account at any bank, savings and loan association,	2348
brokerage house, or similar institution; or any other monetary	2349
instrument or device that is commonly or routinely accepted as a	2350
cash equivalent. Division (F)(2)(a)(iii) of this section shall be	2351
liberally construed and applied.	2352

(b) Any payment, application, or distribution of fungible	2353
assets other than money is considered to have been made from or	2354
with the fungible assets most recently received or acquired by any	2355
trustee of a legacy trust except to the extent that it is proven	2356
otherwise by clear and convincing evidence. For purposes of	2357
division (F)(2)(b) of this section:	2358

(i) Any asset that can be classified as either money or a	2359
fungible asset shall be classified as money.	2360

(ii) "Fungible assets" means any assets, other than money,	2361
that are interchangeable for commercial purposes and the	2362
properties of which are essentially identical. Division	2363
(F)(2)(b)(ii) of this section shall be liberally construed and	2364
applied.	2365

(c) Division (F)(2) of this section is construed as providing	2366
a substantive rather than a procedural rule or right under the law	2367
of this state.	2368

(G) For purposes of this section, the counseling in	2369
connection with, or the drafting, preparation, execution,	2370
administration, or funding of, a legacy trust includes the	2371
counseling in connection with, or the drafting, preparation,	2372
execution, administration, or funding of, any limited partnership,	2373
limited liability company, corporation, or similar or comparable	2374
entity if the limited partnership interests, limited liability	2375
company interests, stock, or other similar or comparable ownership	2376
interests in the relevant entity are subsequently transferred to	2377
any trustee of any trust that is, was, or becomes a legacy trust.	2378

Sec. 5816.08. All of the following apply in connection with	2379
any action brought pursuant to this section or division (A) of	2380
section 5816.07 of the Revised Code:	2381

(A) If a qualified disposition is wholly or partially	2382
avoided, all of the following apply:	2383

(1) That specific qualified disposition shall be avoided only	2384
to the extent necessary to satisfy a transferor's debt to the	2385
creditor who brought the action pursuant to division (A) of	2386
section 5816.07 of the Revised Code, and any part of the qualified	2387
disposition that is not used to satisfy that debt shall remain	2388
subject to the legacy trust in question.	2389

(2) All other qualified dispositions to any trustee of the	2390
legacy trust in question, including, but not limited to, any	2391
qualified disposition of a partial, co-ownership, or undivided	2392
interest in property by a transferor other than the transferor	2393
whose qualified disposition is avoided, together with the legacy	2394
trust itself, shall remain valid and effective.	2395

(3) If the court is satisfied that a trustee has not acted in	2396
bad faith in accepting or administering the property that is the	2397
subject of the avoided qualified disposition, all of the following	2398
apply:	2399

(a) The trustee shall have a first and paramount lien against	2400
the property that is the subject of the qualified disposition in	2401
an amount equal to the entire cost, including attorney's fees,	2402
properly incurred by the trustee in the defense of the action or	2403
proceedings to avoid the qualified disposition.	2404

(b) The qualified disposition shall be avoided subject to the	2405
proper fees, costs, and pre-existing rights, claims, and interests	2406
of the trustee and of any predecessor trustee that has not acted	2407
in bad faith.	2408

(c) For purposes of division (A)(3) of this section, no	2409
trustee shall be considered to have acted in bad faith merely	2410
because the trustee accepted the property that is the subject of	2411
the qualified disposition.	2412

(4) If the court is satisfied that a beneficiary of a legacy	2413
trust has not acted in bad faith in receiving a distribution from	2414
that trust, the avoidance of the qualified disposition shall be	2415
subject to the right of the beneficiary to retain that	2416
distribution if the distribution was made upon the exercise of a	2417
trust power or discretion vested in a trustee or advisor and that	2418
power or discretion was exercised prior to the creditor's	2419
commencement of the action to avoid the qualified disposition. For	2420
purposes of division (A)(4) of this section, no beneficiary,	2421
including a beneficiary who is also a transferor of the trust,	2422
shall be considered to have acted in bad faith merely because the	2423
beneficiary accepted a distribution made in accordance with the	2424
terms of the trust instrument.	2425

(5) A creditor has the burden of proving by clear and	2426
convincing evidence that a trustee or a beneficiary acted in bad	2427
faith under division (A)(3) or (4) of this section. Division	2428
(A)(5) of this section is construed as providing a substantive	2429
rather than a procedural rule or right under the law of this	2430
state.	2431

(B) The court shall award reasonable attorney's fees and	2432
costs to any prevailing party in any final judgment rendered in	2433
any action wholly or partially brought under this section or	2434
division (A) of section 5816.07 of the Revised Code.	2435

Sec. 5816.09. Any successor or replacement trustees of a	2436
legacy trust shall be determined or selected in the following	2437
manners:	2438

(A)(1) Division (A)(2) of this section applies if in any	2439
action involving a legacy trust or any trustee of the legacy trust	2440
a court takes an action in which the court declines to apply the	2441
law of this state in determining any of the following matters:	2442

(a) The validity, construction, or administration of the	2443
trust;	2444

(b) The effect of any term or condition of the trust,	2445
including, but not limited to, a spendthrift provision;	2446

(c) The rights and remedies of any creditor or other suitor	2447
in connection with a qualified disposition.	2448

(2) Immediately upon the court's action under division (A)(1)	2449
of this section and without the need for any order of any court,	2450
any qualified trustee who is a party to that action shall cease in	2451
all respects to be a trustee of the legacy trust, and the position	2452
of trustee shall be occupied in accordance with the terms of the	2453
trust instrument that governed the legacy trust immediately before	2454
that cessation, or, if the terms of the trust instrument do not	2455
provide for another trustee and the trust would otherwise be	2456
without a trustee, any court of this state, upon the application	2457
of any beneficiary of the legacy trust, shall appoint a successor	2458
qualified trustee upon the terms and conditions that it determines	2459
to be consistent with the purposes of the trust and this chapter.	2460
Upon a qualified trustee ceasing to be a trustee pursuant to	2461
division (A)(2) of this section, that qualified trustee shall have	2462
no power or authority other than to convey trust property to any	2463
other trustee that is appointed, installed, or serving in	2464
accordance with that division.	2465

(3) For purposes of division (A) of this section, "court"	2466
includes a judicial tribunal, an administrative tribunal, or other	2467
adjudicative body or panel.	2468

(B) In all cases other than the situation described in	2469
division (A) of this section, both of the following apply:	2470

(1) If a legacy trust ceases to have at least one qualified	2471
trustee, the vacancy in the qualified trusteeship shall be filled	2472
pursuant to section 5807.04 of the Revised Code except to the	2473
extent that the legacy trust expressly provides otherwise.	2474

(2) If a legacy trust ceases to have at least one trustee,	2475
the vacancy in the trusteeship shall be filled pursuant to section	2476
5807.04 of the Revised Code, and the successor trustee shall be a	2477
qualified trustee unless the legacy trust instrument expressly	2478
provides otherwise.	2479

Sec. 5816.10. (A) In the event of any conflict between any	2480
provision of this chapter and any provision of Chapter 1336. of	2481
the Revised Code or any other provision of law similar to any	2482
provision of Chapter 1336. of the Revised Code, the provision of	2483
this chapter shall control and prevail.	2484

(B) A statement in a trust instrument stating that it "shall	2485
be governed by the laws of Ohio" or other statement to similar	2486
effect or of similar import is considered to expressly incorporate	2487
the laws of this state to govern the validity, construction, and	2488
administration of that trust instrument and to satisfy division	2489
(K)(1)(b) of section 5816.02 of the Revised Code.	2490

(C) A disposition by a nonqualified trustee to a qualified	2491
trustee shall not be treated as other than a qualified disposition	2492
solely because the nonqualified trustee is a trustee of a	2493
nonlegacy trust.	2494

(D) A disposition to any nonqualified trustee of a legacy	2495
trust shall be treated as a qualified disposition if at the time	2496
of the disposition any of the following applies:	2497

(1) There is at least one qualified trustee serving pursuant	2498
to the terms of that legacy trust.	2499

(2) There is no qualified trustee serving but the	2500
circumstances require the appointment or installation of a	2501
qualified trustee pursuant to division (A)(2) of section 5816.09	2502
of the Revised Code.	2503

(3) There is no qualified trustee serving but within one	2504
hundred eighty days after the date of disposition a qualified	2505
trustee fills the vacancy in the qualified trusteeship or an	2506
application to appoint a qualified trustee is filed pursuant to	2507
division (B) of section 5816.09 of the Revised Code.	2508

(E) If a disposition is made by a trustee of a nonlegacy	2509
trust to a trustee of a legacy trust, both of the following apply:	2510

(1) Except to the extent expressly stated otherwise by the	2511
terms of that disposition, the disposition shall be considered a	2512
qualified disposition for the benefit of all of the persons who	2513
are the beneficiaries of both the nonlegacy trust and the legacy	2514
trust.	2515

(2) The date of the disposition to the legacy trust shall be	2516
considered to be the date on which the property that was part of	2517
the nonlegacy trust was first continuously subject to any law of a	2518
jurisdiction other than this state that is similar to this	2519
chapter. A court shall liberally construe and apply division	2520
(E)(2) of this section in finding that such continuity and	2521
similarity exist.	2522

(F) A legacy trust may contain any terms or conditions that	2523
provide for changes in or to the place of administration, situs,	2524
governing law, trustees or advisors, or the terms or conditions of	2525
the legacy trust or for other changes permitted by law.	2526

(G) Any valid lien attaching to property before a disposition	2527
of that property to a trustee of a legacy trust shall survive the	2528
disposition, and the trustee shall take title to the property	2529
subject to the valid lien and subject to any agreements that	2530
created or perfected the valid lien. Nothing in this chapter shall	2531
be construed to authorize any disposition that is prohibited by	2532
the terms of any agreements, notes, guaranties, mortgages,	2533
indentures, instruments, undertakings, or other documents. In the	2534
event of any conflict between this division and any other	2535
provision of this chapter, this division shall control.	2536

(H) To the maximum extent permitted by the Ohio Constitution	2537
and the United States Constitution, the courts of this state shall	2538
exercise jurisdiction over any legacy trust or any qualified	2539
disposition and shall adjudicate any case or controversy brought	2540
before them regarding, arising out of, or related to, any legacy	2541
trust or any qualified disposition if that case or controversy is	2542
otherwise within the subject matter jurisdiction of the court.	2543
Subject to the Ohio Constitution and the United States	2544
Constitution, no court of this state shall dismiss or otherwise	2545
decline to adjudicate any case or controversy described in this	2546
division on the ground that a court of another jurisdiction has	2547
acquired or may acquire proper jurisdiction over, or may provide	2548
proper venue for, that case or controversy or the parties to the	2549
case or controversy. Nothing in this division shall be construed	2550
to do either of the following:	2551

(1) Prohibit a transfer or other reassignment of any case or	2552
controversy from one court of this state to another court of this	2553
state;	2554

(2) Expand or limit the subject matter jurisdiction of any	2555
court of this state.	2556

Sec. 5816.11. (A) Any person may serve as an advisor of a	2557
legacy trust except that a transferor may act as an advisor only	2558
in connection with investment decisions.	2559

(B) An advisor shall be considered a fiduciary unless the	2560
terms of a legacy trust instrument expressly provide otherwise.	2561

Sec. 5816.12. Except to the extent expressly provided	2562
otherwise by the terms of a legacy trust instrument, each trustee	2563
and each advisor of a legacy trust shall have the greatest	2564
discretion permitted by law in connection with all matters of	2565
trust administration, all trust distributions, and all other	2566
trustee or advisor decisions.	2567

Sec. 5816.13. No beneficiary or other person shall be	2568
considered to have a property interest in any property of a legacy	2569
trust to the extent that the distribution of that property is	2570
subject to the discretion of one or more qualified trustees or	2571
advisors, either acting alone or in conjunction with any other	2572
person, including any person authorized to veto any distributions	2573
from the legacy trust.	2574

Sec. 5816.14. This chapter applies to qualified dispositions	2575
made on or after the effective date of this section.	2576

Section 2. That existing sections 317.08, 317.32, 317.321,	2577
1336.04, 1701.73, 1702.38, 1703.22, 2131.08, 2131.09, 2329.66,	2578
2329.661, 5805.06, 5808.08, 5808.18, 5815.24, 5815.25, and 5815.36	2579
of the Revised Code are hereby repealed.	2580

Section 3. The amendments made by this act to section 1336.04	2581
of the Revised Code shall apply to transfers made on or after the	2582
effective date of this act. The amendments made by this act to	2583
sections 2329.66 and 2329.661 of the Revised Code shall apply to	2584
claims accruing on or after the effective date of this act. The	2585
amendments made by this act to section 5815.36 of the Revised Code	2586
shall apply to disclaimers made on or after the effective date of	2587
this act. Section 5815.37 of the Revised Code as enacted by this	2588
act shall apply to conveyances made on or after the effective date	2589
of this act. The application of the amendments made by this act to	2590
section 2131.08 of the Revised Code is provided in division (F) of	2591
section 2131.08 of the Revised Code as amended by this act. The	2592
application of the amendments made by this act to section 2131.09	2593
of the Revised Code is provided for in divisions (C) and (E) of	2594
section 2131.09 of the Revised Code as amended by this act. The	2595
application of the sections of Chapter 5816. of the Revised Code	2596
as enacted by this act is provided for in section 5816.14 of the	2597
Revised Code as enacted by this act. This act is not intended to	2598
impair any secured or unsecured creditors' claims that accrue	2599
prior to the effective date of this act.	2600

Section 4. The amendments made by this act to sections	2601
5805.06, 5808.08, 5815.24, and 5815.25 of the Revised Code, other	2602
than the references to Chapter 5815. of the Revised Code in	2603
division (A)(2) of section 5805.06 of the Revised Code as amended	2604
by this act, are intended to be a statement of the common law of	2605
this state.	2606