As Reported by the House Financial Institutions, Housing and Urban Development Committee

129th General Assembly Regular Session 2011-2012

Sub. S. B. No. 333

Senator Obhof 

Cosponsors: Senators Beagle, Coley, LaRose, Seitz, Bacon, Peterson, Brown, Balderson, Burke, Hughes, Jones, Lehner, Manning, Wagoner, Widener 

Representative Brenner 

---

A BILL

To amend sections 1109.22, 1304.55, 1321.52, and

1

1322.02 and to enact sections 1321.537, 1321.538,

2

1322.042, and 1322.043 of the Revised Code to

3

authorize the Superintendent of Financial

4

Institutions to issue a temporary mortgage loan

5

originator license or temporary loan originator

6

license to an out-of-state applicant who meets

7

certain criteria, to make changes regarding

8

derivative transactions by banks, and to make

9

changes to the Uniform Commercial Funds Transfers

10

law regarding remittance transfers.

11

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

Section 1. That sections 1109.22, 1304.55, 1321.52, and	12
1322.02 be amended and sections 1321.537, 1321.538, 1322.042, and	13
1322.043 of the Revised Code be enacted to read as follows:	14

Sec. 1109.22.  (A) As used in this section:

15

(1) "Derivative transaction" includes any transaction that is	16
a contract, agreement, swap, warrant, note, or option that is	17
based, in whole or in part, on the value of, any interest in, or	18
any quantitative measure or the occurrence of any event relating	19
to, one or more commodities, securities, currencies, interest or	20
other rates, indices, or other assets.	21

(2) "Loans and extensions of credit" shall include all of the	22
following:	23

(a) All direct or indirect advances of funds made on the	24
basis of any obligation of a person to repay the funds or	25
repayable from specific property pledged by or on behalf of the	26
person and, to;	27

(b) To the extent specified by the superintendent of	28
financial institutions, also include any liability of a bank to	29
advance funds to or on behalf of a person pursuant to a	30
contractual commitment;	31

(c) Any credit exposure to a person arising from a derivative	32
transaction between the person and a bank.	33

(2)(3) "Person" includes an individual; sole proprietorship;	34
partnership; joint venture; association; trust; estate; business	35
trust; corporation; government; agency, instrumentality, or	36
political subdivision of a government; limited liability company;	37
or any similar entity or organization.	38

(B) Except as provided in divisions (C), (D), (E), and (F) of	39
this section:	40

(1) The total loans and extensions of credit by a bank to a	41
person outstanding at any one time and not fully secured, as	42
determined in a manner consistent with division (B)(2) of this	43
section, by collateral having a market value at least equal to the	44
amount of the loans and extensions of credit to that person that	45
are outstanding shall not exceed fifteen per cent of the	46
unimpaired capital of the bank.	47

(2) The total loans and extensions of credit by a bank to a	48
person outstanding at one time and fully secured by readily	49
marketable collateral having a market value, as determined by	50
reliable and continuously available price quotations, at least	51
equal to the amount of the loans and extensions of credit to that	52
person outstanding shall not exceed ten per cent of the unimpaired	53
capital of the bank.	54

(3) The limitation set forth in division (B)(2) of this	55
section is separate from and in addition to the limitation set	56
forth in division (B)(1) of this section.	57

(C) No limitation based on capital applies to loans and	58
extensions of credit by a bank to a person that are any of the	59
following types:	60

(1) Loans or extensions of credit arising from the discount	61
of commercial or business paper evidencing an obligation to the	62
person negotiating it with recourse;	63

(2) The purchase of bankers' acceptances of the kinds	64
described in division (B) or (C) of section 1109.17 of the Revised	65
Code and issued by other banks;	66

(3) Loans or extensions of credit secured by bonds, notes,	67
certificates of indebtedness, treasury bills of the United States,	68
or other obligations fully guaranteed as to principal and interest	69
by the United States;	70

(4) Loans or extensions of credit to or secured by	71
unconditional takeout commitments or guarantees of any department,	72
agency, bureau, board, commission, or establishment of the United	73
States or any corporation wholly owned, directly or indirectly, by	74
the United States;	75

(5) Loans or extensions of credit secured by a segregated	76
deposit account in the lending bank;	77

(6) Loans or extensions of credit to any financial	78
institution or to any receiver, conservator, superintendent of	79
financial institutions, or other agent in charge of the business	80
and property of a financial institution, when the loans or	81
extensions of credit are approved by the superintendent of	82
financial institutions of this state;	83

(7) Loans or extensions of credit to the student loan	84
marketing association.	85

(D) A bank may make loans and extensions of credit secured by	86
bills of lading, warehouse receipts, or similar documents	87
transferring or securing title to readily marketable staples	88
subject to the general limitations of division (B) of this	89
section, and may make additional loans and extensions of credit	90
secured by bills of lading, warehouse receipts, or similar	91
documents transferring or securing title to readily marketable	92
staples, if all of the following apply:	93

(1) The market value of the staples securing each additional	94
loan or extension of credit at all times equals or exceeds one	95
hundred fifteen per cent of the outstanding amount of the loan or	96
extension of credit.	97

(2) The staples are fully covered by insurance whenever it is	98
customary to insure staples of that kind.	99

(3) The total amount of the bank's additional loans and	100
extensions of credit outstanding to one person at any time does	101
not exceed thirty-five per cent of the bank's capital.	102

(E) Subject to divisions (E)(1) and (2) of this section, a	103
bank may make loans and extensions of credit arising from the	104
discount of negotiable or nonnegotiable installment consumer	105
paper.	106

(1) If the paper carries a full recourse endorsement or	107
unconditional guarantee by the person transferring the paper, the	108
total amount of the installment consumer paper transferred by one	109
person a bank may hold at one time shall not exceed twenty-five	110
per cent of the bank's capital, and the collateral requirements of	111
division (B)(2) of this section do not apply.	112

(2) The limitations set forth in division (B) of this section	113
apply only to the loans and extensions of credit of each maker of	114
negotiable or nonnegotiable installment consumer paper, and not to	115
obligations arising from any full or partial recourse endorsement	116
or guarantee by the transferor discounting the consumer paper to	117
the bank, if both of the following apply:	118

(a) The bank's files are, or the knowledge of its officers of	119
the financial condition of each maker of the consumer paper is,	120
reasonably adequate.	121

(b) An officer of the bank designated for that purpose by the	122
bank's board of directors certifies in writing that the bank is	123
relying primarily upon the responsibility of each maker for	124
payment of the loans or extensions of credit and not upon any full	125
or partial recourse endorsement or guarantee by the transferor.	126

(F) Without regard to the collateral requirements of division	127
(B) of this section, a bank may have loans and extensions of	128
credit to one person outstanding at one time not exceeding	129
twenty-five per cent of the bank's capital of the following types:	130

(1) Loans and extensions of credit secured by shipping	131
documents or instruments transferring or securing title covering	132
livestock or giving a lien on livestock, when the market value of	133
the livestock securing the obligation is not at any time less than	134
one hundred fifteen per cent of the face amount of the note	135
covered;	136

(2) Loans and extensions of credit that arise from the	137
discount by dealers in dairy cattle of paper given in payment for	138
dairy cattle, if the paper carries a full recourse endorsement or	139
unconditional guarantee of the seller, and the loans and	140
extensions of credit are secured by the cattle being sold.	141

(G)(1) The superintendent may adopt rules to administer and	142
carry out the purposes of this section, including rules, but not	143
limited to, the following:	144

(a) Rules defining or further defining terms used in this	145
section, and rulesincluding expanding or limiting the definition	146
of "person" defined in division (A) of this section;	147

(b) Rules establishing limits or requirements other than	148
those specified in this section for particular classes or	149
categories of loans or extensions of credit;	150

(c) Rules relating to credit exposure arising from derivative	151
transactions.	152

(2) The superintendent may determine when a loan putatively	153
made to a person is, for purposes of this section, to be	154
attributed to another person.	155

Sec. 1304.55. Sections(A) Except as otherwise provided in	156
division (B) of this section, sections 1304.51 to 1304.85 of the	157
Revised Code do not apply to a funds transfer any part of which is	158
governed by the "Electronic Fund Transfer Act," 92 Stat. 3728	159
(1978), 15 U.S.C.A. 1693, as amended.	160

(B) Sections 1304.51 to 1304.85 of the Revised Code apply to	161
a remittance transfer as defined in the "Electronic Fund Transfer	162
Act," 124 Stat. 2065 (2010), 15 U.S.C. 1693o-1, as amended, unless	163
the remittance transfer is an electronic fund transfer as defined	164
in the "Electronic Fund Transfer Act," 92 Stat. 3728 (1978), 15	165
U.S.C. 1693a, as amended.	166

(C) In a funds transfer to which sections 1304.51 to 1304.85	167
of the Revised Code apply, in the event of an inconsistency	168
between an applicable provision of sections 1304.51 to 1304.85 of	169
the Revised Code and an applicable provision of the "Electronic	170
Fund Transfer Act," 92 Stat. 3728 (1978), 15 U.S.C. 1693, as	171
amended, the provisions of the Electronic Fund Transfer Act govern	172
to the extent of the inconsistency.	173

Sec. 1321.52.  (A)(1) No person, on that person's own behalf	174
or on behalf of any other person, shall do any of the following	175
without having first obtained a certificate of registration from	176
the division of financial institutions:	177

(a) Advertise, solicit, or hold out that the person is	178
engaged in the business of making residential mortgage loans	179
secured by a mortgage on a borrower's real estate which is other	180
than a first lien on the real estate;	181

(b) Engage in the business of lending or collecting the	182
person's own or another person's money, credit, or choses in	183
action for non-first lien residential mortgage loans;	184

(c) Employ or compensate mortgage loan originators licensed	185
or who should be licensed under sections 1321.51 to 1321.60 of the	186
Revised Code to conduct the business of making residential	187
mortgage loans;	188

(d) Make loans in this state of the type set forth in	189
division (C) of this section that are unsecured or are secured by	190
other than real property, which loans are for more than five	191
thousand dollars at a rate of interest greater than permitted by	192
section 1343.01 or other specific provisions of the Revised Code.	193

(2) Each person issued a certificate of registration or	194
license is subject to all the rules prescribed under sections	195
1321.51 to 1321.60 of the Revised Code.	196

(B)(1) All loans made to persons who at the time are	197
residents of this state are considered as made within this state	198
and subject to the laws of this state, regardless of any statement	199
in the contract or note to the contrary, except as follows:	200

(a) If the loan is primarily secured by a lien on real	201
property in another state and is arranged by a mortgage loan	202
originator licensed by that state, the borrower may by choice of	203
law designate that the transaction be governed by the law where	204
the real property is located if the other state has consumer	205
protection laws covering the borrower that are applicable to the	206
transaction.	207

(b) If the loan is for the purpose of purchasing goods	208
acquired by the borrower when the borrower is outside of this	209
state, the loan may be governed by the laws of the other state.	210

(2) Nothing in division (B)(1) of this section prevents a	211
choice of law or requires registration or licensure of persons	212
outside of this state in a transaction involving the solicitation	213
of residents of this state to obtain non-real estate secured loans	214
that require the borrowers to physically visit a lender's	215
out-of-state office to apply for and obtain the disbursement of	216
loan funds.	217

(C) A registrant may make unsecured loans, loans secured by a	218
mortgage on a borrower's real estate which is a first lien or	219
other than a first lien on the real estate, loans secured by other	220
than real estate, and loans secured by any combination of	221
mortgages and security interests, on terms and conditions provided	222
by sections 1321.51 to 1321.60 of the Revised Code.	223

(D)(1) If a lender that is subject to sections 1321.51 to	224
1321.60 of the Revised Code makes a loan in violation of division	225
(A)(1) of this section, the lender has no right to collect,	226
receive, or retain any interest or charges on that loan.	227

(2) If a registrant applies to the division for a renewal of	228
the registrant's certificate after the date required by division	229
(A)(7) of section 1321.53 of the Revised Code, but prior to the	230
first day of February of that year, and the division approves the	231
application, division (D)(1) of this section does not apply with	232
respect to any loan made by the registrant while the registrant's	233
certificate was expired.	234

(3) If a person's registration under sections 1321.51 to	235
1321.60 of the Revised Code terminates due to nonrenewal or	236
otherwise but the person continues to engage in the business of	237
collecting or servicing non-first lien residential mortgage loans	238
in violation of division (A)(1) of this section, the	239
superintendent of financial institutions may take administrative	240
action, including action on any subsequent application for a	241
certificate of registration. In addition, no late fee, bad check	242
charge except as incurred, charge related to default or cost to	243
realize on its security interest, or prepayment penalty on	244
non-first lien residential mortgage loans shall be collected or	245
retained by a person who is in violation of division (A)(1)(b) of	246
this section for the period of time in which the person was in	247
violation. Nothing in division (D)(3) of this section prevents or	248
otherwise precludes any other actions or penalties provided by law	249
or modifies a defense of holder in due course that a subsequent	250
purchaser servicing the residential mortgage loan may raise.	251

(E)(1) No individual shall engage in the business of a	252
mortgage loan originator without first obtaining and maintaining	253
annually a license pursuant to section 1321.532 of the Revised	254
Code from the division of financial institutions. A mortgage loan	255
originator shall be employed or associated with a registrant or	256
entity exempt from registration under sections 1321.51 to 1321.60	257
of the Revised Code, but shall not be employed by or associated	258
with more than one registrant or exempt entity at any one time.	259

(2) An individual acting under the individual's authority as	260
a registered mortgage loan originator shall not be required to be	261
licensed under division (E)(1) of this section.	262

(3) An individual who holds a valid temporary mortgage loan	263
originator license issued pursuant to section 1321.537 of the	264
Revised Code may engage in the business of a mortgage loan	265
originator in accordance with sections 1321.51 to 1321.60 of the	266
Revised Code during the term of the temporary license.	267

(F)(1) Each licensee shall register with, and maintain a	268
valid unique identifier issued by, the nationwide mortgage	269
licensing system and registry.	270

(2) No person shall use a licensee's unique identifier for	271
any purpose other than as set forth in the "Secure and Fair	272
Enforcement for Mortgage Licensing Act of 2008," 122 Stat. 2810,	273
12 U.S.C. 5101.	274

(G)(1) If a person that is subject to sections 1321.51 to	275
1321.60 of the Revised Code makes a loan in violation of division	276
(A)(1)(d) of this section and subsequently sells or assigns that	277
loan, the person is liable to the borrower for any interest paid	278
on that loan to the holder or assignee in excess of the rate that	279
would be applicable in the absence of sections 1321.51 to 1321.60	280
of the Revised Code, in addition to any interest or charges paid	281
on that loan to the unauthorized lender as provided by division	282
(D)(1) of this section.	283

(2) If a person that is subject to sections 1321.51 to	284
1321.60 of the Revised Code makes a residential mortgage loan in	285
violation of division (A)(1)(b) or (c) of this section and	286
subsequently sells or assigns that loan, the lender is liable to	287
the borrower for any interest paid on that loan to the holder or	288
assignee in excess of the rate set forth in division (B)(4) of	289
section 1343.01 of the Revised Code, in addition to any interest	290
or charges paid on that loan to the unauthorized lender as	291
provided by division (D)(1) of this section.	292

Sec. 1321.537.  (A) As used in this section:

293

(1) "Out-of-state mortgage loan originator" means an	294
individual to whom both of the following apply:	295

(a) The individual holds a valid mortgage loan originator	296
license, or comparable authority, issued pursuant to the law of	297
any other state of the United States.	298

(b) The individual is registered, fingerprinted, and	299
maintains a unique identifier through the nationwide mortgage	300
licensing system and registry.	301

(2) "Sponsor" means a registrant or entity described in	302
division (D) of section 1321.53 of the Revised Code that employs	303
or is associated with an applicant for a temporary mortgage loan	304
originator license and, during the term of the applicant's	305
temporary license, covers the applicant under its corporate surety	306
bond or requires the applicant to obtain and maintain a corporate	307
surety bond.	308

(B) The superintendent of financial institutions may, in	309
accordance with this section, issue to an out-of-state mortgage	310
loan originator a temporary mortgage loan originator license that	311
enables the licensee to engage in the business of a mortgage loan	312
originator while the individual completes the requirements	313
necessary to meet the conditions set forth in section 1321.532 of	314
the Revised Code for a mortgage loan originator license. A	315
temporary mortgage loan originator license shall be valid for a	316
term of not more than one hundred twenty days from the date of	317
issuance. A temporary mortgage loan originator license may not be	318
renewed.	319

(C) An application for a temporary mortgage loan originator	320
license shall be in writing, under oath, and in a form that meets	321
the requirements of the nationwide mortgage licensing system and	322
registry. The application shall be accompanied by a nonrefundable	323
application fee, the amount of which shall be determined by the	324
superintendent in rule, and a certification that, as of the date	325
of application, the applicant meets the following conditions:	326

(1) The applicant has at least two years of experience in the	327
field of residential mortgage lending in the five years	328
immediately preceding the date of application for the temporary	329
mortgage loan originator license.	330

(2) The applicant has not previously applied for a temporary	331
mortgage loan originator license in this state.	332

(3) The applicant has not had a mortgage loan originator	333
license, or comparable authority, revoked in any governmental	334
jurisdiction. For purposes of division (C)(3) of this section, a	335
subsequent formal vacation of such a revocation shall not be	336
considered a revocation.	337

(4) The applicant has not been convicted of, or pleaded	338
guilty or nolo contendere to, any of the following in a domestic,	339
foreign, or military court:	340

(a) During the seven-year period immediately preceding the	341
date of application, a misdemeanor involving theft or any felony;	342

(b) At any time prior to the date of application, a felony	343
involving an act of fraud, dishonesty, a breach of trust, theft,	344
or money laundering.	345

For purposes of division (C)(4) of this section, any	346
conviction for which the applicant has received a pardon shall not	347
be considered a conviction.	348

(D) The superintendent shall issue a temporary mortgage loan	349
originator license to the applicant if the superintendent finds	350
that all of the following conditions are met:	351

(1) The application is accompanied by the application fee and	352
the certification described in division (C) of this section.	353

(2) The applicant is registered, fingerprinted, and has a	354
valid unique identifier through the nationwide mortgage licensing	355
system and registry as of the date of application.	356

(3) The applicant has authorized the nationwide mortgage	357
licensing system and registry to obtain a credit report for	358
submission to the superintendent.	359

(4) The applicant has a sponsor that certifies employment of,	360
or association with, the applicant and has signed the application.	361

(E) The sponsor of a temporary licensee shall have an	362
affirmative duty to supervise the conduct of each temporary	363
mortgage loan originator in the same manner as is required of its	364
other licensees. If the temporary licensee's employment or	365
association with the sponsor is terminated, the sponsor shall	366
notify the division of financial institutions of the termination	367
through the nationwide mortgage licensing system and registry.	368
Upon the division's receipt of the notice, the sponsor shall no	369
longer be held responsible for the conduct of the temporary	370
licensee.	371

(F) The superintendent may, in accordance with Chapter 119.	372
of the Revised Code, adopt rules necessary for the implementation	373
and operation of this section.	374

Sec. 1321.538. If the "Secure and Fair Enforcement for	375
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101,	376
as amended, is modified after the effective date of this section,	377
or any regulation, statement, or position is adopted under that	378
act, to permit states to issue a temporary mortgage loan	379
originator license to a registered mortgage loan originator, the	380
superintendent shall, in accordance with section 111.15 of the	381
Revised Code, adopt rules the superintendent considers necessary	382
and appropriate to issue a temporary license to a registered	383
mortgage loan originator.	384

Sec. 1322.02.  (A)(1) No person, on the person's own behalf	385
or on behalf of any other person, shall act as a mortgage broker	386
without first having obtained a certificate of registration from	387
the superintendent of financial institutions for every office to	388
be maintained by the person for the transaction of business as a	389
mortgage broker in this state. A registrant shall maintain an	390
office location in this state for the transaction of business as a	391
mortgage broker in this state.	392

(2) No person shall act or hold that person's self out as a	393
mortgage broker under the authority or name of a registrant or	394
person exempt from sections 1322.01 to 1322.12 of the Revised Code	395
without first having obtained a certificate of registration from	396
the superintendent for every office to be maintained by the person	397
for the transaction of business as a mortgage broker in this	398
state.	399

(B)(1) No individual shall act as a loan originator without	400
first having obtained a license from the superintendent. A loan	401
originator shall be employed by or associated with a mortgage	402
broker or any person or entity listed in division (G)(2) of	403
section 1322.01 of the Revised Code, but shall not be employed by	404
or associated with more than one mortgage broker or person or	405
entity at any one time.	406

(2) An individual acting under the individual's authority as	407
a registered loan originator shall not be required to be licensed	408
under division (B)(1) of this section.	409

(3) An individual who holds a valid temporary loan originator	410
license issued pursuant to section 1322.042 of the Revised Code	411
may engage in the business of a loan originator in accordance with	412
sections 1322.01 to 1322.12 of the Revised Code during the term of	413
the temporary license.	414

(C)(1) No person acting as a mortgage broker or loan	415
originator shall fail to register with, and maintain a valid	416
unique identifier issued by, the nationwide mortgage licensing	417
system and registry.	418

(2) No person shall use a mortgage broker's or loan	419
originator's unique identifier for any purpose other than as set	420
forth in the "Secure and Fair Enforcement for Mortgage Licensing	421
Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	422

Sec. 1322.042.  (A) As used in this section:

423

(1) "Out-of-state loan originator" means an individual to	424
whom both of the following apply:	425

(a) The individual holds a valid loan originator license, or	426
comparable authority, issued pursuant to the law of any other	427
state of the United States.	428

(b) The individual is registered, fingerprinted, and	429
maintains a unique identifier through the nationwide mortgage	430
licensing system and registry.	431

(2) "Sponsor" means a registrant or entity described in	432
division (G)(2) of section 1322.01 of the Revised Code that	433
employs or is associated with an applicant for a temporary loan	434
originator license and, during the term of the applicant's	435
temporary license, covers the applicant under its corporate surety	436
bond or requires the applicant to obtain and maintain a corporate	437
surety bond.	438

(B) The superintendent of financial institutions may, in	439
accordance with this section, issue to an out-of-state loan	440
originator a temporary loan originator license that enables the	441
licensee to engage in the business of a loan originator while the	442
individual completes the requirements necessary to meet the	443
conditions set forth in section 1322.041 of the Revised Code for a	444
loan originator license. A temporary loan originator license shall	445
be valid for a term of not more than one hundred twenty days from	446
the date of issuance. A temporary loan originator license may not	447
be renewed.	448

(C) An application for a temporary loan originator license	449
shall be in writing, under oath, and in a form that meets the	450
requirements of the nationwide mortgage licensing system and	451
registry. The application shall be accompanied by a nonrefundable	452
application fee, the amount of which shall be determined by the	453
superintendent in rule, and a certification that, as of the date	454
of application, the applicant meets the following conditions:	455

(1) The applicant has at least two years of experience in the	456
field of residential mortgage lending in the five years	457
immediately preceding the date of application for the temporary	458
loan originator license.	459

(2) The applicant has not previously applied for a temporary	460
loan originator license in this state.	461

(3) The applicant has not had a loan originator license, or	462
comparable authority, revoked in any governmental jurisdiction.	463
For purposes of division (C)(3) of this section, a subsequent	464
formal vacation of such a revocation shall not be considered a	465
revocation.	466

(4) The applicant has not been convicted of, or pleaded	467
guilty or nolo contendere to, any of the following in a domestic,	468
foreign, or military court:	469

(a) During the seven-year period immediately preceding the	470
date of application, a misdemeanor involving theft or any felony;	471

(b) At any time prior to the date of application, a felony	472
involving an act of fraud, dishonesty, a breach of trust, theft,	473
or money laundering.	474

For purposes of division (C)(4) of this section, any	475
conviction for which the applicant has received a pardon shall not	476
be considered a conviction.	477

(D) The superintendent shall issue a temporary loan	478
originator license to the applicant if the superintendent finds	479
that all of the following conditions are met:	480

(1) The application is accompanied by the application fee and	481
the certification described in division (C) of this section.	482

(2) The applicant is registered, fingerprinted, and has a	483
valid unique identifier through the nationwide mortgage licensing	484
system and registry as of the date of application.	485

(3) The applicant has authorized the nationwide mortgage	486
licensing system and registry to obtain a credit report for	487
submission to the superintendent.	488

(4) The applicant has a sponsor that certifies employment of,	489
or association with, the applicant and has signed the application.	490

(E) The sponsor of a temporary licensee shall have an	491
affirmative duty to supervise the conduct of each temporary loan	492
originator in the same manner as is required of its other	493
licensees. If the temporary licensee's employment or association	494
with the sponsor is terminated, the sponsor shall notify the	495
division of financial institutions of the termination through the	496
nationwide mortgage licensing system and registry. Upon the	497
division's receipt of the notice, the sponsor shall no longer be	498
held responsible for the conduct of the temporary licensee.	499

(F) The superintendent may, in accordance with Chapter 119.	500
of the Revised Code, adopt rules necessary for the implementation	501
and operation of this section.	502

Sec. 1322.043. If the "Secure and Fair Enforcement for	503
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101,	504
as amended, is modified after the effective date of this section,	505
or any regulation, statement, or position is adopted under that	506
act, to permit states to issue a temporary loan originator license	507
to a registered loan originator, the superintendent shall, in	508
accordance with section 111.15 of the Revised Code, adopt rules	509
the superintendent considers necessary and appropriate to issue a	510
temporary license to a registered loan originator.	511

Section 2.  That existing sections 1109.22, 1304.55, 1321.52,	512
and 1322.02 of the Revised Code are hereby repealed.	513