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H. B. No. 81 As IntroducedAs Introduced
126th General Assembly | Regular Session | 2005-2006 |
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Representatives G. Smith, Webster, McGregor, S. Patton, Ujvagi, Perry, Wolpert, Woodard, Peterson, Barrett, Strahorn, Kearns, Taylor, Allen, Law, Reidelbach, D. Stewart, Carano, Flowers
A BILL
To amend sections 119.01, 1733.01, 1733.04, 1733.05, 1733.16, 1733.22, 1733.24, 1733.25, 1733.29 to 1733.33, 1733.37, 1733.38, 1733.412, 1733.44, 2101.161, 2105.31, 2109.13, 2109.372, 2109.41, 4705.09, and 4973.17 and to repeal section 1733.251 of the Revised Code to make changes in the Credit Union Law relating to fields of membership, expansion of authorities, meetings of directors, compensation of officers, fees and interest chargeable on loans, record keeping, eligible investments, liquidity fund requirements, public records, amendments to articles, and use of name; to authorize accounts to be held by credit unions under laws relating to probate and intestate succession; to authorize a credit union insured by a credit union guaranty corporation to maintain interest-bearing trust accounts on behalf of attorneys; and to authorize credit union designees acting for or on the premises of a credit union to be appointed as police officers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 119.01, 1733.01, 1733.04, 1733.05, 1733.16, 1733.22, 1733.24, 1733.25, 1733.29, 1733.30, 1733.31, 1733.32, 1733.33, 1733.37, 1733.38, 1733.412, 1733.44, 2101.161, 2105.31, 2109.13, 2109.372, 2109.41, 4705.09, and 4973.17 of the Revised Code be amended to read as follows:
Sec. 119.01. As used in sections 119.01 to 119.13 of the
Revised Code: (A)(1) "Agency" means, except as limited by this division,
any official, board, or commission having authority to promulgate
rules or make adjudications in
the civil service commission, the
division of liquor control, the department
of
taxation, the
industrial commission, the bureau of workers'
compensation, the
functions of any administrative or executive
officer, department,
division, bureau, board, or commission of
the government of the
state specifically made subject to sections
119.01 to 119.13 of
the Revised Code, and the licensing functions
of any
administrative or executive officer, department, division,
bureau,
board, or commission of the government of the state
having the
authority or responsibility of issuing, suspending,
revoking, or
canceling licenses. Except as otherwise provided in division (I) of
this section,
sections 119.01 to 119.13 of
the Revised Code do not apply to the
public utilities commission. Sections
119.01 to 119.13 of the
Revised Code do not apply to the
utility radiological safety
board; to the controlling board; to
actions of the superintendent
of financial institutions and the superintendent
of insurance in
the taking
possession of, and rehabilitation or liquidation of,
the business
and property of banks, savings and loan associations,
savings banks,
credit unions, insurance
companies, associations,
reciprocal fraternal benefit societies,
and bond investment
companies; to any action taken by the division of securities under
section 1707.201 of the Revised Code; or to any action that may be
taken by the
superintendent of financial institutions under
section 1113.03,
1121.05, 1121.06, 1121.10, 1125.09,
1125.12,
1125.18, 1155.18,
1157.01, 1157.02,
1157.10, 1163.22, 1165.01,
1165.02, 1165.10,
1349.33, 1733.35, 1733.361, 1733.37,
1733.412,
or 1761.03 of the
Revised Code. Sections 119.01 to 119.13 of the
Revised Code do not apply to
actions of the industrial commission
or the bureau of workers'
compensation under sections 4123.01 to
4123.94 of the Revised Code
with respect to all matters of
adjudication, and to the actions of
the industrial commission and
bureau of workers' compensation
under division (D) of section 4121.32 and
sections 4123.29,
4123.34, 4123.341, 4123.342, 4123.40, 4123.411, 4123.44, and
4123.442,
and divisions (B), (C), and (E) of section 4131.14
of the Revised
Code. (2) "Agency" also means any official or work unit having
authority to promulgate rules or make adjudications in the
department of job
and family services, but only with respect to
both of
the following: (a) The adoption, amendment, or rescission
of rules that
section 5101.09 of the Revised
Code requires be adopted in
accordance with
this chapter; (b) The issuance, suspension, revocation, or cancellation
of
licenses. (B) "License" means any license, permit, certificate,
commission, or charter issued by any agency. "License" does not
include any arrangement whereby a person, institution, or entity
furnishes medicaid services under a provider agreement with the
department of job and family services pursuant to Title
XIX of the
"Social
Security Act," 49 Stat. 620 (1935), 42 U.S.C. 301, as
amended. (C) "Rule" means any rule, regulation, or standard, having
a
general and uniform operation, adopted, promulgated, and
enforced
by any agency under the authority of the laws governing
such
agency, and includes any appendix to a rule. "Rule" does
not
include any internal management rule of an agency unless the
internal management rule affects private rights and does not
include any guideline adopted pursuant to section 3301.0714 of
the
Revised Code. (D) "Adjudication" means the determination by the highest
or
ultimate authority of an agency of the rights, duties,
privileges,
benefits, or legal relationships of a specified
person, but does
not include the issuance of a license in
response to an
application with respect to which no question is
raised, nor other
acts of a ministerial nature. (E) "Hearing" means a public hearing by any agency in
compliance with procedural safeguards afforded by sections 119.01
to 119.13 of the Revised Code. (F) "Person" means a person, firm, corporation,
association,
or partnership. (G) "Party" means the person whose interests are the
subject
of an adjudication by an agency. (H) "Appeal" means the procedure by which a person,
aggrieved by a finding, decision, order, or adjudication of any
agency, invokes the jurisdiction of a court. (I) "Rule-making agency" means any board, commission,
department, division, or bureau of the government of the state
that is required to file proposed rules, amendments, or
rescissions under division (D) of section 111.15 of the Revised
Code and any agency that is required to file proposed rules,
amendments, or rescissions under divisions (B) and (H) of section
119.03 of the Revised Code. "Rule-making agency" includes the
public utilities
commission. "Rule-making agency" does not
include any state-supported college or university. (J) "Substantive revision" means any addition to,
elimination from, or other change in a rule, an amendment of a
rule, or a rescission of a rule, whether of a substantive or
procedural nature, that changes any of the following: (1) That which the rule, amendment, or rescission permits,
authorizes, regulates, requires, prohibits, penalizes, rewards,
or
otherwise affects; (2) The scope or application of the rule, amendment, or
rescission. (K) "Internal management rule" means any rule, regulation,
or standard governing the day-to-day staff procedures and
operations within an agency.
Sec. 1733.01. As used in this chapter, unless the context
otherwise requires: (A) "Credit union" means a corporation organized and
qualified as such under this chapter. In addition to the powers
enumerated in this chapter and unless restricted in this chapter,
every credit union has the general powers conferred upon
corporations by Chapter 1701. of the Revised Code. A credit
union
is a nonprofit cooperative financial institution and as
such is
organized and operates for the mutual benefit and general
welfare
of its members with the earnings, savings, benefits, or
services
of the credit union being distributed to its members as
patron
savers and borrowers and not to its members as
individuals. A credit union may be designated as a low-income credit union if it serves predominantly low-income members. (B) "Corporate credit union" means a credit union,
eligibility for membership in which is being a credit union
qualified to do business in this state. Such credit union shall
use the term "corporate" in its official name. (C) "Foreign credit union" means a credit union formed
under
the laws of another state which are substantially similar
to this
chapter. (D) "Member" means a person who is a member of a credit
union. (E) "Association member" means any member of a credit
union
other than a credit union or an individual member. (F) "Voting member" means an association member or an
individual member who is qualified to vote as provided by law or rule,
the
articles, or the regulations. Ownership of a deposit account does not confer membership or voting rights and does not represent an interest in the capital of the credit union upon dissolution or conversion to another type of institution. (G) "Person" includes, without limitation, an individual,
a
corporation, an unincorporated society or association, or any
other organization of individuals. (H) "Articles" includes original articles of
incorporation,
agreements of merger, amended articles, and
amendments to any of
these. (I) "Regulations" includes the code of regulations of a
credit union and any amendments thereto or an amended code of
regulations and any amendments thereto. (J) Persons having a "common bond of association" include
those persons and their families. (K) "Membership share" means a share of the credit union,
the subscription to which shall be a prerequisite for membership
in the credit union. (L) "Share account" means an account established for a
member for which no share certificates are issued but which are
included in the registry of shares, which includes all
transactions of the credit union pertaining to such shares. (M) "Undivided earnings" consist of all accumulated net
earnings and reserves required under division (B) of section
1733.31 of the Revised Code. (N) "State" means the United States, any state, territory,
insular possession, or other political subdivision of the United
States, including the District of Columbia. (O) An "emergency" exists when an emergency exists for
other
corporations as the same is defined and described in
section
1701.01 of the Revised Code. (P) "Superintendent of credit unions" means the "division
of
financial institutions" or the "superintendent of
the division of
financial institutions of this state"; and whenever
the context
requires it, may be
read as "director of commerce" or as "chief of
the division of
financial institutions." Whenever the division or
superintendent of credit unions is referred to or designated in
any statute,
rule, contract, or other document, the reference or
designation shall be
deemed
to refer to the division or
superintendent of financial institutions, as the
case may be. (Q) "Outside auditor" means an accountant who is licensed
to
practice as a certified public accountant or public accountant
by
this state, and who is retained by a credit union to audit its
accounts, but who is not otherwise employed by the credit union. (R) "Regulated individual" means a director, committee
member, officer, or employee of a credit union.
(S) "Financial institution regulatory authority" includes a
regulator of business activity in which a credit union is engaged,
or has applied to engage in,
to the extent that the regulator has
jurisdiction over a credit
union engaged in that business
activity. A credit union is engaged in a business activity, and a
regulator of that business activity has jurisdiction over the
credit union, whether the credit union conducts the activity
directly or a subsidiary or affiliate of the credit union conducts
the activity. (T) "Net worth" means the retained earnings, as defined under generally accepted accounting principles.
(U) "Deposits" means a balance held by a credit union and established by a credit union member, a nonmember, another credit union, or a governmental unit in accordance with standards specified by the credit union, including balances designated as deposits, deposit certificates, checking accounts, or accounts by other names. A deposit account is a debt owed by the credit union to the account holder.
(V) "Membership agreement" means an agreement between the credit union and the credit union member that includes the policies the credit union member agrees to follow to maintain membership.
(W) "Shares" means a balance held by a credit union and established in accordance with standards specified by the credit union including, but not limited to shares, share accounts, share certificates, custodial accounts, probate accounts, guardianship accounts, individual retirement accounts, trust accounts, money market accounts, share checking accounts, business share accounts, or other such accounts. "Shares" does not include membership shares.
Sec. 1733.04. (A) In addition to the authority conferred
by section 1701.13 of the Revised Code, but subject to any
limitations contained in sections 1733.01 to 1733.45 of the
Revised Code, and its articles and regulations, a credit union
may do any of the following: (1) Make loans as provided in section 1733.25 of the
Revised Code; (2) Invest its money as provided in section 1733.30 of the
Revised Code; (3) If authorized by the code of regulations, rebate to
the borrowing members a portion of the member's interest paid to
the credit union; (4) If authorized by the regulations, charge a an annual membership fee
or entrance fee not to exceed one dollar per member; (5) Purchase group savings life insurance and group credit
life insurance; (6) Make reasonable contributions to any nonprofit civic, charitable, or service organizations; (7) Engage in activities and programs as requested by any governmental unit; (8) Receive savings from nonmembers in the form of shares or deposits in the case of credit unions serving predominantly low-income members. For purposes of division (A)(8) of this section, "low-income members" means those members whose annual income falls at or below the lowest level standard of living classification as established by the bureau of labor and statistics and updated by the employment and training administration of the United States department of labor, and "predominantly" means a simple majority; (9) Provide trustee or custodial services as authorized under any written trust instrument or custodial agreement created or organized in the United States and forming part of a tax-advantaged savings plan as authorized under the Internal Revenue Code. These services include, but are not limited to, acting as a trustee or custodian for member retirement, education, or health savings accounts;
(10) Exercise other powers in accordance with rules adopted by the superintendent of credit unions.
(B) The authority of a credit union shall be subject to
the following restrictions: (1) A credit union may not borrow money in excess of
twenty-five per cent of its shares and undivided earnings,
without prior specific authorization by the superintendent of
credit unions. (2) A credit union may not pay a commission or other
compensation to any person for securing members or for the sale
of its shares, except that reasonable incentives may be made
available directly to members or potential members to promote
thrift. (3) A credit union, subject to the approval of the
superintendent, may have service facilities other than its home
office. (4) No real Real estate shall may be acquired by lease, purchase,
or otherwise excepting as necessary and to the extent required
for use of the credit union presently and in the future operation
of its office or headquarters, and in case of a purchase of real
estate, written approval of the superintendent must first be
obtained notified not less than thirty days prior to the purchase. Nothing herein contained shall be deemed to prohibit a
credit union from taking title to real estate in connection with
a default in the payment of a loan, provided that title to such
real estate shall not be held by the credit union for more than
two years without the prior written approval of the
superintendent. A credit union also may lease space in any real estate it acquires in accordance with rules adopted by the superintendent. (C)(1) As used in division (C) of this section:
(a) "School" means an elementary or secondary school.
(b) "Student" means a child enrolled in a school.
(c) "Student branch" means the designation provided to the credit union for the in-school services and financial education offered to students.
(2) A credit union, upon agreement with a school and with the permission of the superintendent, may open and maintain a student branch.
(3) Notwithstanding any other provision of this section, any student enrolled in the school maintaining a student branch who is not otherwise qualified for membership in the credit union maintaining the student branch is qualified to be a member of that student branch.
(4) The student's membership in the student branch expires upon the student's graduation from secondary school.
(5) The student branch is for the express use of students and may not be used by faculty, staff, or lineal ancestors or descendents of students.
(6) Faculty, staff, or lineal ancestors or descendents of students are not eligible for membership in the credit union maintaining the student branch unless otherwise qualified by this section to be members.
(7) The superintendent may adopt rules appropriate to the formation and operation of student branches.
(D) A credit union may guarantee the signature of a member in connection with a transaction involving tangible or intangible property in which a member has or seeks to acquire an interest. (E) A credit union may perform any of the following services for a person that is not a member of the credit union if the service is performed under a contractual arrangement in which another financial organization performs the same service for the credit union's members: (3) Cashing travelers checks; (4) Any other service specified by the superintendent by rule or order. (F) A credit union may perform any of the following services for any person in an underserved area or that does not have an established relationship with a financial institution: (1) Cashing and selling checks, drafts, or money orders; (2) Purchasing and selling foreign currencies in exchange for United States currency;
Sec. 1733.05. (A) Persons otherwise qualifying for
membership in a credit union under this section, the articles,
and the regulations, and who are elected to membership by the
board of directors, shall become members of a credit union,
provided that in lieu of electing persons to membership, the
board of directors may elect or appoint one or more membership
officers and delegate authority to any such membership officer to
accept persons into membership. (B) No person shall become a member of a credit union who
has not subscribed to or purchased at least one membership share
of such credit union and complies with any requirements adopted by the board of directors of the credit union, or meets other criteria set forth in rules adopted by the superintendent of credit unions. Each member is responsible for maintaining
a current address with the credit union. (C) The membership of a credit union shall be limited to include
groups having a common bond of occupation or association or;
groups within a well-defined neighborhood, community, or rural
district; and groups or persons meeting other criteria set forth in rules adopted by the superintendent; however, except as otherwise provided in the articles
or regulations, a group or person shall be deemed to retain affiliation
with the credit union so long as he the group or person remains a member
of the
credit union even though no longer within the field of
membership. (D) Unless otherwise provided in the articles of
incorporation or the code of regulations, and subject to such
conditions as the superintendent of credit unions may establish,
groups composed of persons within the field of membership of a
credit union may become members of such credit union. (1) Any credit union may, with the approval of the
superintendent, pursuant to section 1733.33 of the Revised Code,
amend its articles of incorporation and, if appropriate, its code
of regulations, to permit select groups having a common bond of
occupation or association or select groups within a well-defined
neighborhood, community, or rural district, to become members of
such credit union in accordance with rules adopted by the
superintendent. (2) Before the select group is permitted membership in a credit
union, the superintendent must approve, in writing, both the
select group and the credit union The superintendent, by rules adopted in accordance with Chapter 119. of the Revised Code, shall provide the manner in which a person, group, or groups are permitted membership in a credit union. The superintendent only shall disapprove membership of a group or otherwise into the credit union based on safety and soundness of the credit union. (E) With the approval of the superintendent, any select group,
within a field of membership and described in division (D)(1) of this section,
may disaffiliate from the credit
union with which it is associated if a majority of the persons
within the select group vote for disaffiliation. Any such proposed
disaffiliation must be pursuant to a written plan approved by the
superintendent. This plan shall be distributed to such persons
in advance of the vote on the proposed disaffiliation, which plan
must have due regard for the equitable division of assets and liabilities,
including share accounts and loans of the select group seeking to
disaffiliate, and any other
consideration required by the superintendent. (F) Credit unions qualified to do business in this state
have a common bond of association for the purpose of forming and
operating a corporate credit union. (G) No interstate charter amendment, conversion, merger,
or other expansion of a credit union field of membership shall be
authorized without the approval of all the respective state supervisory authorities
affected, whether state or federal, and shall be in accordance with rules
adopted by the superintendent in. In terms of administrative control
and authority, the location of the surviving credit union in the
case of a merger, or the home office in the case of an expansion,
is controlling.
Sec. 1733.16. Unless otherwise provided in the articles, regulations, or
bylaws, and subject to the exceptions applicable during an emergency, as that
term is defined in section 1733.01 of the Revised Code: (A) Meetings of the directors may be called by the chairman of the board chairperson, the vice-chairperson,
president, or any vice-president, of the board or any two directors. (B) Meetings of the directors may be held within or without the state. Unless the articles or regulations prohibit participation by directors at a meeting by means of communication equipment, meetings of the directors may be held through any communication equipment if all the persons participating can hear each other, and participation in the meeting pursuant to this division constitutes presence at the meeting. (C) Notice of the time and place, if any, and time of each meeting of the directors shall be
given to each director at the time and in the manner either by personal delivery or by mail, telegram, cablegram, overnight delivery service, or any other means of communication authorized by the director at least two days before the meeting, unless otherwise specified in the
regulations or bylaws. The notice described in this division need not specify the purpose of the meeting. (D) Notice of adjournment of a meeting need not be given, if the time and place to which it is adjourned are fixed and announced at the meeting.
Sec. 1733.22. No (A) Unless otherwise provided in rules adopted by the superintendent of credit unions, no officer, director, or employee of any credit union shall
receive any commission, salary, or other emolument for services arising out of
his the officer's, director's, or employee's association with
the credit union except per diem, wages, or salary which
he the officer, director, or employee receives, subject to rules
adopted under section 1733.411 of the Revised
Code, as compensation for his services to the credit union.
(B) No director or member of any committee shall receive any compensation for
his
services as such, but, unless otherwise provided in determined or authorized by rule of the superintendent and by the articles or
regulations, shall be. A director or committee member is entitled, subject to rules adopted under section
1733.411 of the Revised Code and when so authorized by the board of directors,
to reimbursement for his the director's or member's
expenses incurred in connection with the business of
the credit union.
Sec. 1733.24. (A) A credit union is authorized to receive
funds for deposit in share accounts, share draft accounts, and
share certificates from its members, from other credit unions,
and from an officer, employee, or agent of the federal, state, or
local governments, or political subdivisions of the state, in
accordance with such terms, rates, and conditions as may be
established by its board of directors. (B) The shares and share accounts of the credit union may
be of one or more classes, as designated by the board of
directors, subject to approval of the superintendent of credit
unions based on rules that shall assure equitable distribution of
dividends among classes, considering costs and advantages of each
class to the members of the credit union, including without
limitation special services rendered, length of ownership,
minimum investment, conditions of repurchase, and other
appropriate standards or combinations thereof. In the event the
articles of incorporation of the credit union indicate the
authorized number of shares to be unlimited, the designation of
classification of shares and share acounts accounts of the
credit union may be effected by the board of directors, subject
to the approval of the superintendent, and does not require
amendment of the articles of incorporation. All shares of the
credit union shall have a par value per share as set by the board
of directors. Redemptions and liquidating dividends shall be
prorated to each member on the basis of the price paid the credit
union for such share, irrespective of the class of such shares. (C)(1) Each credit union shall have one clsss class of
shares
designated as "membership share." The membership shares, or if a
credit union has but one class of shares, then all of the shares
of the credit union, shall have a par value as set by the board
of directors. (2) Two or more persons that are eligible for membership that have jointly subscribed for one or more shares under a joint account each may be admitted to membership. (D) A credit union need not issue certificates for any or
all of its classes of shares but irrespective of whether
certificates are issued, a registry of shares must be kept,
including all of the transactions of said the credit union pertaining
to such shares. (E) A credit union is authorized to maintain share draft
accounts in accordance with rules prescribed by the
superintendent. The credit union may pay dividends on share
draft accounts, may pay dividends at different rates on different
types of share draft accounts, and may permit the owners of such
share draft accounts to make withdrawals by negotiable or
transferable instruments or other orders for the purpose of
making transfers to third parties. (F) Unless otherwise provided by written agreement of the
parties, the rights, responsibilities, and liabilities attaching
to a share draft withdrawn from, transferred to, or otherwise
handled by a credit union are defined in and governed by Chapters
1303. and 1304. of the Revised Code, as if the credit union were
a bank. (G) Unless otherwise provided in the articles or
regulations, a member may designate any person or persons to own
or hold shares, or share accounts with him the member in joint
tenancy with
right of survivorship and not as tenants in common. (H) Shares or share accounts may be issued in the name of
a custodian under the Ohio transfers to minors act or, by a member in
trust for a beneficiary, by a fiduciary or custodian in trust for a member beneficiary, or by a fiduciary or custodian in trust upon the death of a member. Redemption of such shares or payment of
such share accounts to such a member shall, to the extent of such the
payment, discharge discharges the liability of the credit union to the
member and the beneficiary;, and the credit union shall be under
no obligation to see to the application of such the payment. Unless
prior to the death of such a member, he shall have the member has
notified the
credit union in writing in a form approved by the credit union of
a different beneficiary to receive the proceeds of such shares or
share accounts, then such the proceeds shall be paid to the
beneficiary or to his the beneficiary's parent or legal
representative. Any
payment made pursuant to written instructions of the member or
pursuant to the provisions herein contained shall be a valid and
sufficient release and discharge of the credit union in
connection with any such share or share accounts. (I)(1) Except as otherwise provided in the articles or
regulations, and subject to the provisions thereof, a minor may
purchase shares or share accounts, and except for qualification
as a voting member, the credit union may deal with such minor
with respect to shares or share accounts owned by him the minor
as if he the minor
were of legal age. (2) If shares are issued in the name of a minor, redemption of any part or all of the shares or withdrawal of funds by payment to the minor of the shares or funds and any declared dividends or interest releases the credit union from all obligation to the minor as to the shares reduced or funds withdrawn.
(3) If shares are issued in the name of a minor, the minor shall be assumed to have reached the age of majority and have contractual capacity. (J) The regulations may require advance written notice of
a member's intention to withdraw his the member's shares. Such
advance notice
shall not exceed sixty days. (K) A credit union may accept nonmember deposits in accordance with rules adopted by the superintendent.
Sec. 1733.25. (A) A credit union may make loans or other extensions of credit to
members for provident and productive purposes as authorized by
law, including rules adopted by the superintendent of credit unions; the articles,; and the regulations,; and subject to policies
adopted by the credit committee and approved by the board of
directors. (B) Upon the approval of the board of directors, a credit
union may make loans or other extensions of credit to other credit unions, provided that loans or other extensions of credit
made to other credit unions need not have the approval of the
board of directors on a per case basis. The total of all such
loans or extensions of credit, including the aggregate of all money paid into any trust
established by one or more credit unions for the purpose of
making loans or other extensions of credit to other credit unions, shall not exceed twenty-five
per cent of the shares and undivided earnings of the lending
credit union, except that this percentage limitation does not
apply to corporate credit unions. (C) The interest on any loan made by a credit union shall
not exceed one and one-half per cent per month on unpaid
balances. Such interest may accrue and be chargeable upon a
monthly basis, and may be computed upon the unpaid balance of the
loan as of the end of the previous calendar month. Such interest (1) A credit union may contract
for and receive interest at any rate or rates agreed upon
or consented to by the parties to the loan or extension of credit contract, but not exceeding an annual percentage rate of
twenty-five per cent.
(2) The computation of the loan or extension of credit balance on which interest is assessed and the method of compounding interest on the balance shall be as
agreed upon by the credit union and the member. (3) Interest described in division (C) of this section may be accrued and charged by any technique
approved as may be determined by the superintendent of credit unions so long as the
effective interest rate on any loan does not exceed the amount
permitted to be charged by the computation authorized in this
division. (D) A credit union may accept security in such form and
under such rules as shall be set forth in the articles, the
regulations, or established by the credit committee and approved
by the board of directors. (E) The total loans to association members shall not
exceed ten per cent of the shares and undivided earnings or the
total value of shares pledged by association members as security
for loans, whichever is greater (1) The credit union shall have a lien on the membership share, shares, deposits, and accumulated dividends and interest of a member in an individual, joint, trust, or payable on death account for any obligation owed to the credit union by that member or for any loan co-signed or guaranteed by the member or account holder; provided, however, that a credit union shall not have a lien upon the funds in an individual retirement account or an account established pursuant to the Internal Revenue Code of the United States. (2) A credit union may refuse to allow withdrawals from any share or deposit account by a member while the member has any outstanding obligation to the credit union. (F) In addition to any other loan authorized by law, a credit union may enter into a loan agreement with a member in accordance with all of the following: (1) The loan is for any amount up to one thousand dollars. (2) The term of the loan is thirty days or less. (3) The credit union may charge a fee in addition to any interest authorized by law in connection with the loan, which fee is not to be included in the computation of interest for any provision of the Revised Code, including division (C) of this section, that prescribes, regulates, or limits interest charged, collected, or received in connection with a transaction. (4) The total interest, fees, and other costs of the loan does not exceed ten per cent of the principal amount. (5) A member shall not have more than one loan under division (F) of this section outstanding with the credit union. (6) The loan is not being made to a member for purposes of retiring an existing loan between the credit union and that member, which existing loan was made pursuant to division (F) of this section.
Sec. 1733.29. (A) A credit union shall keep a permanent record including: (1) The original articles and regulations and amendments thereto and any
amended articles or regulations and amendments thereto, all bearing the
approval of the superintendent of credit unions, and the articles shall bear
the certification of the secretary of state; (2) The minutes of the incorporators, members, and board of directors. (B) A credit union shall keep for a period of not less than six years the
minutes of all committees of the board. (C) A credit union shall keep and maintain such financial records as the
superintendent shall stipulate in rules issued by him the
superintendent, which shall also
include the minimum length of time such records must be retained. (D) A credit union shall maintain an alphabetical listing or classified
listing of the addresses of members of the credit union. (E) A credit union shall keep such any other records of its business and
transactions and maintain the authorized processes for recording or storing documents or instruments, as may be required by rules promulgated by the superintendent. (F) A credit union may keep documents in electronic form if, in the regular course of business, a credit union possesses, records, or generates any document, representation, image, reproduction, or combination thereof, of any agreement, transaction, act, occurrence, or event, then the recording, comprising, or reproduction shall have the same force and effect as one comprised, recorded, or created on paper or other tangible form by writing, typing, printing, or similar means. (G)(1) A credit union may make use of electronic signatures in any communication, acknowledgment, agreement, or contract between a credit union and its member or any other person, in which a signature is required or used. (2)(a) Any party to the communications, acknowledgment, agreement, or contract may affix a signature by use of a digital signature. (b) The digital signature, when lawfully used by the person whose signature it purports to be, shall have the same force and effect as the use of a manual signature if it is unique to the person using it, is capable of verification, is under the sole control of the person using it, and is linked to data in such a manner that if the data are changed, the digital signature is invalidated. (c) Nothing in this section requires any credit union to use or permit the use of a digital signature. (d) As used in division (G)(2) of this section, "digital signature" means an encrypted electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature. (H) Recordings, copies, photographic images, or stored
representations of original documents, papers, or other instruments or records
made in accordance with this section, or reproductions of original documents,
papers, or other instruments or records produced from recordings, copies,
photographic images, or stored representations made in accordance with this
section, when properly identified by the officer by whom or under whose
supervision they were made or who has custody of them, have the same effect at
law as the original records or records made by any other legally authorized
means. They may be offered in the same manner and shall be received in
evidence in any court where the original records, or records made by other
legally authorized
means, could have been introduced and received. Certified or authenticated
duplicates of recordings, copies, photographic images, or stored
representations of original documents, papers, or other instruments or records
made in accordance with this section, or of reproductions of original
documents, papers, or other instruments or records produced from recordings,
copies, photographic images, or stored
representations made in accordance with this section, shall be admitted in
evidence in the same manner as the original documents, papers, or other
instruments or records.
Sec. 1733.30. (A) A credit union may make any investment of any funds not
required for the purpose of loans, in
state or national banks; or state or federally chartered savings and
loan associations or, savings banks, or credit unions, doing business in this state; in accounts,
deposits, or shares of federally insured savings and loan
associations or savings banks or insured credit unions, doing business outside this state; in deposits
or
accounts of federally insured banks, trust companies, and mutual
savings banks or insured credit unions, doing business outside this state; in the shares of
a corporate credit union subject to the regulations of that
corporate credit union; in credit union service corporations; or in United States government securities
or municipal bonds issued by municipalities of this state; and,
with the approval of the superintendent of credit unions,
in securities other than those specified in this division. All investments
under this division shall be made in United States dollars. (B) In accordance with rules adopted by, and subject to the approval of, the
superintendent, notes or loans made by or to individual members of a credit
union may be purchased by another credit union at such prices as
may be agreed upon between the credit unions. (C) A credit union may purchase all or a part of the assets of another credit union or sell all or part of its assets to another credit union. (D) A corporate credit union may make investments provided the investments
are in accordance with rules adopted by the superintendent, are consistent
with the safety and soundness of the credit union, and are made with due
regard to the investment requirements established by the applicable insurer
recognized under section 1733.041 of the Revised Code. (E) A credit union may make other investments provided the investments are in accordance with rules adopted by the superintendent.
Sec. 1733.31. For purposes of this section, "gross income"
means all income, before expenses, earned on risk assets. "Risk
assets" shall be defined by rule adopted by the superintendent of
credit unions. Each credit union shall establish and maintain reserves as
required by Chapter 1733. of the Revised Code, or by rules
adopted by the superintendent, including the following: (A) Valuation allowances for delinquent loans,
investments, other risk assets, and contingencies, which shall be
established and maintained pursuant to rules adopted adopted by
the superintendent. (B) A regular reserve as follows: (1) A credit union in operation for more than four years
and having assets of five hundred thousand dollars or more shall
reserve ten per cent of its gross income until its regular
reserve equals four per cent of its total risk assets. Once the
credit union has regular reserves equal to four per cent of its
total risk assets, it shall reserve five per cent of its gross
income until its regular reserve equals six per cent of its total
risk assets. (2) A credit union in operation for less than four years
or having assets of less than five hundred thousand dollars shall
reserve ten per cent of its gross income until its regular
reserve equals seven and one-half per cent of its total risk
assets. Once the credit union has regular reserves equal to
seven and one-half per cent of its total risk assets, it shall
reserve five per cent of its gross income until its regular
reserve equals ten per cent of its total risk assets. (3) The provision for loan losses, or other such
provisions related to the valuation allowances described in
division (A) of this section, recorded on the credit union's
statement of income for the year shall be deducted from the
appropriate regular reserve calculated under division (B)(1) or
(2) of this section. (4) Once the credit union has closed out its net income or
loss to undivided earnings, it may allocate any extraordinary
loss for the year, as defined by AICPA APB Opinion No. 30 or by
rules as promulgated by the superintendent, to the regular
reserve. (5) If the regular reserve account becomes less than the
percentage required by division (B)(1) or (2) of this section,
then the schedule of allocation shall apply until the required
percentages are achieved. (6) The superintendent may decrease the reserve
requirements under division (B)(1) or (2) of this section when,
in his the superintendent's opinion, a decrease is necessary or
desirable and is
consistent with the purposes of this section. (7) Nothing herein shall prevent the superintendent from
requiring a particular credit union or all credit unions to
establish a regular reserve in excess of the percentages required
by division (B)(1) or (2) of this section if, in the opinion of
the superintendent, economic conditions or other appropriate
circumstances so warrant. (C) Each credit union shall maintain a liquidity fund
equal to five per cent of its shares. The assets included in the
liquidity fund shall be defined by rule adopted by the
superintendent. Nothing herein shall prevent the superintendent
from requiring a particular credit union or all credit unions to
establish a liquidity fund in excess of five per cent of total
shares, if, in the opinion of the superintendent, economic
conditions or other appropriate circumstances so warrant The superintendent by rule may require a credit union to establish a liquidity fund. (D)(1) Reserves for corporate credit unions shall be
established by the superintendent with due regard for the
reserving requirements for corporate credit unions set by the
applicable insurer recognized under section 1733.041 of the
Revised Code. Specific reserving requirements shall be
established by rule of the superintendent, but shall
substantially parallel the reserving formula set by the
applicable insurer recognized under section 1733.041 of the
Revised Code. (2) Nothing in division (D)(1) of this section shall
prevent the superintendent from requiring a particular corporate credit
union or all corporate credit unions to establish a regular
reserve in excess of those reserves established pursuant to
division (D)(1) of this section if, in the opinion of the
superintendent, economic conditions or other appropriate
circumstances so warrant.
Sec. 1733.32. (A)(1) The superintendent of financial
institutions
shall see that the laws relating to
credit unions are
executed and enforced. (2) The deputy superintendent for credit unions
shall be the
principal supervisor of credit unions. In that
position, the
deputy superintendent for credit unions shall,
notwithstanding
division (A)(3)
of this section, be responsible for conducting
examinations and
preparing examination reports under that
division. In addition,
the deputy superintendent for credit
unions shall,
notwithstanding sections 1733.191, 1733.41,
1733.411, and 1733.412 of the
Revised
Code, have the authority to
adopt rules in accordance with those sections, and,
notwithstanding section
1733.05 of the Revised Code, shall have
the
authority to approve issues and matters
pertaining to fields
of membership. In performing or
exercising any of the
examination, rule-making, or other
regulatory functions, powers,
or duties vested by division
(A)(2) of this section in the
deputy
superintendent for credit unions, the deputy
superintendent for
credit unions shall be subject to the
control
of the
superintendent of financial institutions. (3) The superintendent of financial institutions shall develop and implement a system
for
evaluating the safety and soundness of credit unions and for
determining when examinations and supervisory actions are
necessary. Credit unions shall be subject to periodic
examinations, as specified in rules adopted by the
superintendent,
and their books, records, and accounts shall be
open to the
inspection of the superintendent at all times. For
the purpose of
such examination or inspection, the superintendent
may subpoena
witnesses, administer oaths, receive testimony, and
order the
submission of documents. (B) Every credit union shall prepare and submit, on forms
provided by the superintendent, a financial report to the
superintendent showing its assets and liabilities whenever
requested to do so by the superintendent. Every financial report
shall be verified by the oaths of the two principal officers in
charge of the affairs of the credit union at the time of such
verification and shall be submitted to the superintendent within
thirty days after the superintendent requests the financial
report. (C) An annual financial report of the affairs and business
of the credit union, showing its condition as of the thirty-first
day of December unless otherwise authorized by the
superintendent,
shall be filed with the superintendent not later
than the date
authorized in the rules adopted by the
superintendent. (D) If a financial report or an annual financial report is
not filed with the superintendent in accordance with division (B)
or (C) of this section, the superintendent may do both of the
following: (1) Assess a fine, determined by rule adopted by the
superintendent, for each day the report is in arrears; (2) If the superintendent gives written notice to the
president of the credit union of the superintendent's
intention to
do so, issue an
order revoking the credit union's articles of
incorporation and
appointing a liquidating agent to liquidate the
credit union in
accordance with section 1733.37 of the Revised
Code. (E)(1) Except as provided in division (E)(2) of this
section, each credit union doing business in this state shall
remit, semiannually and within fifteen days after billing, to the
treasurer of state, a supervisory fee in an amount determined by
the superintendent
and confirmed by the credit union council. The
supervisory fee
described in division (E)(1) of this section shall
be
based on a percentage of the gross assets of
the credit union
as shown by its last annual financial report
filed with the
superintendent in accordance with division (C) of
this section.
The minimum supervisory fee shall be determined by
the
superintendent
and confirmed by the credit union council. (2) Each corporate credit union doing business in this
state
shall remit, semiannually and within fifteen days after
billing,
to the treasurer of state, a supervisory fee determined
by rule
adopted by the superintendent
and confirmed by the credit union
council. The aggregate annual
amount of the fee shall not exceed
the annual operating fee that
the national credit union
administration charges a federally
chartered credit union pursuant
to the "Federal Credit Union
Act," 84 Stat. 994 (1970), 12
U.S.C.A. 1751. (3) The superintendent annually shall present to the credit
union council
for
confirmation the supervisory fees to
be billed
credit unions and corporate credit unions pursuant to division
(E)
of this section. (4) If any supervisory fee is not remitted in accordance
with division (E)(1) or (2) of this section, the superintendent
may assess a fine, determined by rule adopted by the
superintendent, for each day that each fee is in arrears. (5)(a) Subject to division (E)(5)(b) of
this section, the
total amount of each semiannual billing to all
credit unions and
corporate credit unions combined shall equal
one-half of the
appropriation made by the main operating
appropriation act,
including any modifications made by the
controlling board, to the
division of financial institutions for the
regulation of credit
unions for the
fiscal year in which the billings occur, except
that the
superintendent, in determining the supervisory fees, may
take
into consideration any funds lapsed from the appropriation
made
in the previous fiscal year. (b) If during the period between the credit union council's
confirmation of supervisory fees and when supervisory fees
described in this section are collected, the credit union council
determines additional money is required to adequately fund the
operations of the division of financial institutions for that
fiscal year, the credit union council may, by the affirmative vote
of five of its members, increase the supervisory fees
billed. The
superintendent promptly shall notify each credit
union and
corporate credit union of the increased supervisory
fees, and each
credit union or corporate credit union shall pay
the increased
supervisory fees billed by the superintendent. (6) The fees or fines collected pursuant to this section
shall be credited to the credit unions fund created
in section
1733.321 of the Revised Code. (F) A report of such examination shall be forwarded to the
president of each credit union after the completion of the
examination. Such The report may contain comments relative to the
management of the affairs of the credit union and also as to the
general condition of its assets. Within thirty days of the
receipt of such the report, a meeting of the directors shall be
called
to consider matters contained in the report, and the
president
shall notify the superintendent of any action taken at
such
the meeting. (G)(1) The superintendent shall furnish reports of
examinations or other appropriate information to any organization
referred to in section 1733.041 of the Revised Code when
requested
by such the organization and authorized by the credit
union. The
superintendent may charge a fee for such reports and
other
information as may be established by rules adopted by the
superintendent. (2) A report of examination furnished pursuant to division
(G)(1) of this section is the property of the division of credit
unions and may be used by the examined credit union only in the
conduct of its business. Under no circumstances may the credit
union, its current or former directors, officers, employees,
agents, shareholders, participants in the conduct of its affairs,
or their agents disclose or make public, in any manner, a report
of examination or its contents. (H) Except as provided in this division, information
obtained by the superintendent of
financial
institutions and the
superintendent's employees
as a result of or
arising out of the
examination or independent
audit of a credit
union, from required
reports, or because of
their official
position, shall be
confidential. Such information
may be
disclosed only in
connection with criminal proceedings or,
subject
to section
1733.327 of the Revised Code, when it is
necessary for
the
superintendent to take official action pursuant
to Chapter
1733.
of the Revised Code and the rules adopted
thereunder
regarding the
affairs of the credit union examined.
Such
information may also be
introduced into evidence or disclosed when
and in the manner
authorized in section 1181.25 of the Revised
Code. This division
does not prevent the superintendent from
properly
exchanging
information relating to an examined credit
union
pursuant to
division (F) or (G) of this section or, with
officials
of properly
authorized state or federal
financial institution
regulatory
authorities
or, with any insurer
recognized under
section 1733.041,
or with any
surety recognized under
section 1733.23 of
the Revised
Code.
This division also does not
prevent the
superintendent from
disclosing information contained
in the
financial reports or
annual financial reports described in
division (B) or (C) of this
section to recognized credit union
trade associations, to share guarantee insurance organizations, to federal or state agencies, or to the general public. Financial reports and annual financial reports described in divisions (C) and (D) of this section, call reports, or financial statements required to be filed with the division of financial institutions are public records for purposes of section 149.43 of the Revised Code.
Sec. 1733.33. (A) The voting members may adopt amendments
to the articles or regulations or amended articles or regulations
in a writing as provided in section 1733.11 of the Revised Code
or in a meeting of members called for that expressly stated
purpose by a vote of two-thirds of the voting members represented
at such meeting; or, if the articles or regulations provide or
permit, by the affirmative vote of a greater or lesser
proportion, but not less than a majority of the voting members
represented at such meeting. The board of directors may, at any
duly held meeting, adopt amendments to the field of membership article or to
the regulations, by an
affirmative vote of two-thirds of the number of directors
authorized by the articles or regulations. (B) The directors may adopt the following amendments to the articles: (1) Unless otherwise provided in the articles, an amendment changing the name of the corporation;
(2) An amendment changing the place in this state where the principal office of the credit union is located;
(3) An amendment changing the authorized number of shares; the express terms, if any, of the shares; and if the shares are classified, as permitted in section 1733.24 of the Revised Code, the designation of each class, their express terms, and par value, of any, per share.
(C) In the event amendments to the articles or regulations
or amended articles or regulations are adopted pursuant to
section 1733.11 of the Revised Code, a copy of the proposed
amendments or proposed amended articles or regulations shall be
distributed to all of the voting members at or prior to the date
on which solicitation begins for written approval. In the event
the amendments or amended articles or regulations are adopted in
a meeting of members, copies of the proposed amendments or
amended articles or regulations, as the case may be, shall be
distributed to voting members upon request. (C)(D) Amendments to the articles or regulations or the
amended articles or regulations shall include only such
provisions as may be included in or omitted from original
articles or the amended articles or regulations at the time the
amendments or amended articles or regulations are adopted.
(D)(E) Amended articles or regulations shall contain a
statement that they supersede the existing articles or
regulations, as the case may be.
(E)(F) Any such amendment or amended articles or regulations
shall become effective only when the same shall it or they have been
approved by the superintendent in the same manner as required for
original articles or regulations under section 1733.07 of the
Revised Code. Amendments to the articles or amended articles
shall become effective upon the filing of the same with the
secretary of state.
Sec. 1733.37. (A) If it appears that any credit union is
bankrupt or insolvent, that its shares are impaired, that it has
violated this chapter, or rules adopted by the superintendent of
credit unions, or that it is operating in an unsafe or unsound
manner, or if the credit union is experiencing a declining trend
in its financial condition and a majority of its board of
directors, by resolution, requests the issuance of an order under
this division, the superintendent may issue an order revoking the
credit union's articles of incorporation and appointing a
liquidating agent to liquidate the credit union in accordance
with
this section. (B) A credit union under order to liquidate or in the
course
of liquidation, shall continue in existence for the
purpose of
discharging its debts, collecting and distributing its
assets, and
doing all acts required in order to wind up its
business, and may
sue and be sued for the purpose of enforcing
such debts and
obligations until its affairs are fully adjusted.
The board of
directors, or in the case of involuntary
dissolution, the
liquidating agent, shall use the assets of the
credit union to
pay: first, expenses incidental to liquidation,
including any
surety bond that may be required; second, any
liability due
nonmembers; third, redemption of shares and share
accounts.
Assets then remaining shall be distributed to the
members
proportionately to the purchase price of shares held by
each
member as of the date dissolving was voted, or the date of
suspension, as the case may be. (C) As soon as the board or the liquidating agent
determines
that all assets from which there is a reasonable
expectancy of
realization have been liquidated and distributed as
set forth in
this section, it shall execute a certificate of
dissolution on a
form prescribed by the superintendent of credit
unions and submit
the certificate to the
secretary of state who
shall, after filing
or recording and indexing, forward evidence of the
filing to the
superintendent, whereupon the credit
union
shall be dissolved. (D) If the articles of a credit union have been canceled
for
cause, or if a credit union has filed a certificate of
dissolution
or has indicated an intention to file such
certificate, and the
directors and officers of the credit union,
in the opinion of the
superintendent, are not conducting the
liquidation proceedings in
an expeditious, orderly, and efficient
manner or in the best
interest of its members, the superintendent
may terminate the
liquidation proceedings and issue an order
appointing a
liquidating agent to liquidate the credit union in
accordance with
this section. Such liquidating agent shall
furnish bond for the
faithful discharge of the liquidating
agent's duties in an
amount
to be approved by the superintendent. (E) The liquidating agent may, under such rules as the
superintendent prescribes: (1) Receive and take possession of the books, records,
assets, and property of every description of the credit union in
liquidation; sell, enforce collection of, and liquidate all such
assets and property; compound all bad or doubtful debts, sue in
the name of the credit union in liquidation, and defend such
actions as are brought against the liquidating agent
in the
capacity as such liquidating agent or
against the credit union; (2) Receive, examine, and pass upon all claims against the
credit union in liquidation, including claims of members; (3) Make distribution and payment to creditors and members
as their interests appear; (4) Execute such documents and papers and do such other
acts
as that the liquidating agent deems necessary or desirable to
discharge
official duties. (F) The expenses incurred by the liquidating agent in the
liquidation of the credit union include the compensation of the
liquidating agent and any other necessary or proper expenses
connected therewith, all of which shall be paid in order of
priority out of the property of such the credit union in the hands of
the liquidating agent. Such expenses Expenses of liquidation, including
the compensation of the liquidating agent, are subject to
approval
by the superintendent unless such agent is appointed by
the court.
In no event shall the total of such the expenses exceed
ten per cent
of the assets of the credit union existing at the
date of the
appointment of the liquidating agent, nor shall the
compensation
of such agent exceed five per cent of such assets
upon such that date
or five thousand dollars, whichever is the lesser
amount. (G) Subject to the prior approval of the superintendent, a
credit union may enter into a purchase and assumption agreement
to
purchase any of the assets or assume any of the liabilities of
a
credit union for which a liquidating agent has been appointed
by
order of the superintendent in accordance with this section.
All
persons, associations, and select groups eligible for
membership
in the credit unions that are parties to the purchase
and
assumption agreement shall be deemed to have a common bond of
association. The assumption of the field of membership may be
restricted, as specified in the purchase and assumption
agreement.
Sec. 1733.38. A credit union organized and duly qualified as a credit union
in another state may qualify to do business as a credit union in this state
provided: (A) Such credit union is organized under credit union law substantially
similar to sections 1733.01 to 1733.45, inclusive, of the Revised Code; (B) The interest rate of such credit union on loans made to members in this
state does not exceed the maximum interest rate permitted by sections 1733.01
to 1733.45, inclusive, of the Revised Code; (C) A credit union organized and doing business under the laws of this state
is permitted to do business in such the other state or territory where it is permitted to conduct business as a credit union, under conditions substantially
similar to the provisions of this section.
Sec. 1733.412. Notwithstanding any provision in Chapter
1733. of the Revised Code, if federal credit unions, organized
under the laws of the United States, the home offices of which
are located in this state, shall possess a right, power,
privilege, or benefit by virtue of statute, rule, or regulation,
or judicial decision or will possess the right, power, privilege,
or benefit by virtue of a rule or regulation issued but not
effective, which right, power, privilege, or benefit is not
possessed by a credit union organized under the laws of this
state or any other law, the superintendent of credit unions may by shall adopt a rule authorize under section 111.15 of the Revised Code granting
credit unions organized under the laws of this state to exercise
the right, power, privilege, or benefit, doing business under authority granted by the superintendent, any right, power, privilege, or benefit possessed, by virtue of statute, rule, policy, regulation, interpretation, or judicial decision, by a credit union operating in this state and organized or chartered under this chapter, the laws of another state, or the laws of the United States. A The rule so adopted by
the superintendent shall become effective on the date of its
issuance adoption, but if the rule is issued by the superintendent adopted in
anticipation of a federal rule law or regulation which has been
enacted or issued but has not then become effective, the effective date of
the superintendent's rule shall be the later date on which the
federal rule law or regulation becomes effective. The rule, notwithstanding its original adoption under section 111.15 of the Revised Code, subsequently may be amended or rescinded only under Chapter 119. of the Revised Code. However, if the another
rule is adopted by the superintendent is not enacted into law within
thirty months from the date the rule is issued by the
superintendent, the rule shall thereupon no longer be of any
force or effect. The superintendent, upon thirty days' written
notice to state-chartered credit unions, may revoke any rule
issued by virtue of the authority of this section under this section on the same subject as the original rule that is intended as a replacement of the original rule, the original rule then may be rescinded under section 111.15 of the Revised Code instead of under Chapter 119. of the Revised Code.
Sec. 1733.44. (A) No person, partnership, association, or corporation, other than
credit unions and associations of such credit unions, to which all credit
unions in their respective jurisdictions are eligible, shall use any name or
title containing the words "credit union" or represent themselves, in
advertising or elsewhere, as conducting business as a credit union. (B) Subject to all of the following, a credit union may adopt or change one or more trade names: (1) The credit union shall give written notice of the proposed trade name to the superintendent of credit unions at least thirty days before using the trade name. (2) The superintendent may deny a credit union the right to use a given trade name or terminate a credit union's right to use a trade name for any reason. (3) A credit union using a trade name clearly and conspicuously shall disclose the legal name of the credit union and the trade name in all signs, advertising, mailings, or similar materials and clearly and conspicuously shall disclose the trade name and the legal name of the credit union in all legal documents, certificates of deposit, signature cards, loan agreements, account statements, checks, drafts, and other similar documents. (4) A trade name may not contain the phrase "credit union."
Sec. 2101.161. The probate court may order that prepaid and unearned costs be
deposited with a bank, savings and loan association, credit union, or trust company
incorporated under the laws of this state or of the United States. The order
shall be entered on the journal of the court and may specify that deposited
costs are to be held in an account, or invested in an investment, supervised
by the bank, association, credit union, or company. Interest earned on deposited costs
shall be paid into the county treasury by the end of the calendar year in
which it is received.
Sec. 2105.31. As used in sections 2105.31 to 2105.39 of the
Revised Code: (A) "Co-owners with right of survivorship" includes joint
tenants, tenants by the entireties, and other co-owners of real or
personal property,; insurance or other policies,; or bank, credit union, or other
accounts, held under circumstances that entitle one or more persons
to the whole of the property or account on the death of the other
person or persons. (B) "Governing instrument" means a deed, will, trust,
insurance or annuity policy, account with a transfer-on-death
designation or the abbreviation TOD, account with a
payable-on-death designation or the abbreviation POD, pension,
profit-sharing, retirement, or similar benefit plan, instrument
creating or exercising a power of appointment or a power of
attorney, or a dispositive, appointive, or nominative instrument
of any similar type. (C) "Payor" means a trustee, insurer, business entity,
employer, governmental agency, political subdivision, or any other
person authorized or obligated by law or a governing instrument to
make payments or transfers. (D) "Event" includes the death of another person.
Sec. 2109.13. In any case in which a bond is required by
the probate court from a fiduciary and the value of the estate or
fund is such that the court deems it inexpedient to require
security in the full amount prescribed by section 2109.04 of the
Revised Code, the court may direct the deposit of any suitable
personal property belonging to the estate or fund with a bank,
building and loan association, savings and loan association, credit union, or
trust company incorporated under the laws of this state or of the
United States, as may be designated by order of the court. The deposit shall be made in the name of the fiduciary, and
the personal property deposited shall not be withdrawn from the
custody of the bank, association, credit union, or trust company except upon
the special order of the court. No fiduciary shall receive or
collect the whole or any part of the principal represented by the
personal property without the special order of the court. Such
an order can be made in favor of the fiduciary only if the court
within its discretion, having regard for the purpose for which
the order is requested, the disposition to be made of the assets
as may be released, the value of the assets as related to the
total value of the estate, and the period of time the assets will
remain in the possession of the fiduciary, finds that the
original bond previously given and then in force will be
sufficient to protect the estate; otherwise, the court, as a
condition to the release of the personal property deposited,
shall require the fiduciary to execute an additional bond in an
amount that the court determines. After the deposit has been made and after the filing with
the court of a receipt for the personal property executed by the
designated bank, association, credit union, or company, which receipt shall
acknowledge that the personal property is held by the bank,
association, credit union, or company subject to the order of the court, the
court may fix or reduce the amount of the bond so that the amount
of the penalty of the bond is determined with respect to the
value of the remainder only of the estate or fund, without
including the value of the personal property deposited. Neither
the fiduciary nor his the fiduciary's sureties shall be liable
for any loss to
the trust estate resulting from the deposit as is authorized and
directed by the court pursuant to this section, if the fiduciary
has acted in good faith. This section may be invoked simultaneously with the initial
application for appointment of the fiduciary if an interim
receipt of the bank, association, credit union, or company for which the
application for appointment as depositary is being made,
acknowledging that it already has received temporary deposit of
the personal property described in the application for
appointment as depositary, accompanies the simultaneous
applications for appointment of fiduciary and for appointment of
the depositary.
Sec. 2109.372. (A) As used in this section: (1) "Short term trust-quality investment fund" means a
short term investment fund that meets both of the following
conditions: (a) The fund may be either a collective investment
fund established in accordance with section
1111.14 of the
Revised Code or a registered investment company, including any affiliated
investment company
whether or not the fiduciary has invested other funds held by it
in an agency or other nonfiduciary capacity in the securities of
the same registered investment company or affiliated investment
company. (b) The fund is invested in any one or more of the
following manners: (i) In obligations of the United States or of its
agencies; (ii) In obligations of one or more of the states of the
United States or their political subdivisions; (iii) In variable demand notes, corporate money market
instruments including, but not limited to, commercial paper rated
at the time of purchase in either of the two highest
classifications established by at least one nationally recognized
standard rating service; (iv) Deposits in banks or savings and loan associations,
whose deposits are insured by the federal deposit insurance
corporation, or in credit unions insured by the national credit union administration or by the national deposit guaranty corporation established under Chapter 1761. of the Revised Code, if the rate of interest paid on such deposits is at
least equal to the rate of interest generally paid by such banks
or, savings and loan associations, or credit unions on deposits of similar terms or
amounts; (v) In fully collateralized repurchase agreements or other
evidences of indebtedness that are of trust quality and are
payable on demand or have a maturity date consistent with the
purpose of the fund and the duty of fiduciary prudence. (2) "Registered investment company" means any investment
company that is defined in and registered under sections 3 and 8
of the "Investment Company Act of 1940," 54 Stat. 789, 15
U.S.C.A. 80a-3 and 80a-8. (3) "Affiliated investment company" has the same meaning
as in division (E)(1) of section 1111.13 of the
Revised Code. (B) A fiduciary is not required to invest cash that
belongs to the trust and may hold that cash for the period prior
to distribution if either of the following applies: (1) The fiduciary reasonably expects to do either of the
following: (a) Distribute the cash to beneficiaries of the trust on a
quarterly or more frequent basis; (b) Use the cash for the payment of debts, taxes, or
expenses of administration within the ninety-day period following
the receipt of the cash by the fiduciary. (2) Determined on the basis of the facilities available to
the fiduciary and the amount of the income that reasonably could
be earned by the investment of the cash, the amount of the cash
does not justify the administrative burden or expense associated
with its investment. (C) If a fiduciary wishes to hold funds that belong to the
trust in liquid form and division (B) of this section does not
apply, the fiduciary may so hold the funds as long as they are
temporarily invested as described in division (D) of this
section. (D)(1) A fiduciary may make a temporary investment of cash
that the fiduciary may hold uninvested in accordance with division
(B) of
this section, and shall make a temporary investment of funds held
in liquid form pursuant to division (C) of this section, in any
of the following investments, unless the governing instrument
provides for other investments in which the temporary investment
of cash or funds is permitted: (a) A short term trust-quality investment fund; (b) Direct obligations of the United States or of its
agencies; (c) A deposit with a credit union or a bank or savings and loan association,
including a deposit with the fiduciary itself or any bank
subsidiary corporation owned or controlled by the bank holding
company that owns or controls the fiduciary, whose deposits are
insured by the federal deposit insurance corporation, if the rate
of interest paid on that deposit is at least equal to the rate of
interest generally paid by that credit union or bank or savings and loan
association on deposits of similar terms or amounts. (2) A fiduciary that makes a temporary investment of cash
or funds pursuant to division (D)(1) of this section may charge a
reasonable fee for the services associated with that investment.
The fee shall be in addition to the compensation to which the
fiduciary is entitled for his ordinary fiduciary services. (3) Fiduciaries that make one or more temporary
investments of cash or funds pursuant to division (D)(1) of this
section shall provide to the beneficiaries of the trusts
involved, that are currently receiving income or have a right to
receive income, a written disclosure of their temporary
investment practices and, if applicable, the method of computing
reasonable fees for their temporary investment services pursuant
to division (D)(2) of this section. Fiduciaries may comply with
this requirement in any appropriate written document, including,
but not limited to, any periodic statement or account. (4) A fiduciary that makes a temporary investment of cash
or funds in an affiliated investment company pursuant to division
(D)(1)(a) of this section shall, when providing any periodic
account statements of its temporary investment practices, report
the net asset value of the shares comprising the investment in
the affiliated investment company. (5) If a fiduciary that makes a temporary investment of
cash or funds in an affiliated investment company pursuant to
division (D)(1)(a) of this section invests in any mutual fund,
the fiduciary shall provide to the beneficiaries of the trust
involved, that are currently receiving income or have a right to
receive income, a written disclosure, in at least ten-point
boldface type, that the mutual fund is not insured or guaranteed
by the federal deposit insurance corporation or by any other
government agency or government-sponsored agency of the federal
government or of this state.
Sec. 2109.41. Immediately after appointment and throughout
the administration of a trust, but subject to section 2109.372 of
the Revised Code, every fiduciary, pending payment of current
obligations of his the fiduciary's trust, distribution, or
investment pursuant to
law, shall deposit all funds received by him the fiduciary in
his the fiduciary's name as such
fiduciary in one or more depositaries. Each depositary shall be
a bank or, savings and loan association, or credit union located in this state. A
corporate fiduciary, authorized to receive deposits of
fiduciaries, may be the depository of funds held by it as such
fiduciary. All deposits made pursuant to this section shall be
in such class of account as will be most advantageous to the
trust, and each depositary shall pay interest at the highest rate
customarily paid to its patrons on deposits in accounts of the
same class. The placing of such funds in such depositaries under the
joint control of the fiduciary and a surety on the bond of the
fiduciary shall not increase the liability of the fiduciary.
Sec. 4705.09. (A)(1) Any person admitted to the practice
of law in this state by order of the supreme court in accordance
with its prescribed and published rules, or any law firm or legal
professional association, may establish and maintain an
interest-bearing trust account, for purposes of depositing client
funds held by the attorney, firm, or
association that are nominal
in amount or are to be held by the attorney, firm, or association
for a short period of time, with any bank or savings and loan
association that is authorized to do business in this state and
is insured by the federal deposit insurance corporation or the successor to
that corporation,
or any credit union insured by the national credit union
administration operating under the "Federal Credit Union Act," 84 Stat. 994
(1970), 12 U.S.C.A. 1751, or insured by a credit union guaranty corporation established under Chapter 1761. of the Revised Code. Each account established under this
division shall be in the name of the attorney, firm, or association that
established and is maintaining it and
shall be
identified as an IOLTA or an interest on lawyer's
trust account. The name of the account may
contain additional identifying features to distinguish it from
other trust accounts established and maintained by the attorney,
firm, or association. (2) Each attorney who receives funds belonging to a client shall do one of
the following: (a) Establish and maintain one or more interest-bearing
trust accounts in accordance with division (A)(1) of this
section
or maintain one or more interest-bearing trust accounts
previously established in accordance with that division, and
deposit all client funds held that are nominal in amount or are to be held by
the attorney for a short period of time in the account or accounts; (b) If the attorney is affiliated with a law firm or legal
professional association, comply with division (A)(2)(a) of this
section or deposit all client funds held that
are nominal in
amount or are to be held by the attorney for a short period of
time in one or more interest-bearing trust accounts
established
and maintained by the firm or association in accordance with
division (A)(1) of this section. (3) No funds belonging to any attorney, firm, or legal
professional association shall be deposited in any
interest-bearing IOTA trust account established under division
(A)(1)
or (2) of this section, except that funds sufficient to pay or enable a
waiver of depository institution service charges on
the account shall be deposited in the account and other funds
belonging to the attorney, firm, or association may be deposited
as authorized by the Code of Professional Responsibility adopted
by the supreme court. The determinations of whether funds held
are nominal or more than nominal in amount and of whether funds
are to be held for a short period or longer than a short period
of time rests in the sound judgment of the particular attorney.
No imputation of professional misconduct shall arise from the
attorney's exercise of judgment in these matters. (B) All interest earned on funds deposited in an
interest-bearing trust account established under division
(A)(1) or (2) of this section shall be transmitted to the treasurer of
state for deposit in the legal aid fund established under section
120.52 of the Revised Code. No part of the interest earned on
funds deposited in an interest-bearing trust account
established
under division (A)(1) or (2) of this section shall be paid to, or
inure to the benefit of, the attorney, the attorney's law firm or
legal professional association, the client or other
person who
owns or has a beneficial ownership of the funds deposited, or any
other person other than in accordance with this section, section
4705.10, and sections 120.51 to 120.55 of the Revised Code. (C) No liability arising out of any act or omission by any
attorney, law firm, or legal professional association with
respect to any interest-bearing trust account established
under
division (A)(1) or (2) of this section shall be imputed to the
depository institution. (D) The supreme court may adopt and enforce rules of
professional conduct that pertain to the use, by attorneys, law
firms, or legal professional associations, of interest-bearing
trust accounts established under division (A)(1) or (2) of
this section, and that pertain to the enforcement of division (A)(2)
of this section. Any rules adopted by the supreme court under
this authority shall conform to the provisions of this section,
section 4705.10, and sections 120.51 to 120.55 of the Revised
Code.
Sec. 4973.17. (A) Upon the application of any bank,
building; savings and loan association,; credit union; or association of banks or
building, savings and loan associations, or credit unions in this state, the secretary of state may
appoint and commission any persons that the bank, building; savings and
loan association,; credit union; or association of banks or building, savings and loan
associations, or credit unions designates, or as many of those persons as the secretary of state
considers proper, to act as police officers for and on the
premises of that bank, building; savings and loan association,; credit union; or
association of banks or building, savings and loan associations, credit unions; or
elsewhere, when directly in the discharge of their duties.
Police officers so appointed shall be citizens of this state and
of good character. They shall hold office for three years,
unless, for good cause shown, their commission is revoked by the
secretary of state, or by the bank, building; savings and loan association,; credit union; or
association of banks or building, savings and loan associations, or credit unions, as
provided by law. (B) Upon the application of a company owning or using a
railroad in this state and subject to section 4973.171 of the Revised Code,
the secretary of state may appoint and commission
any persons that the railroad company designates, or as many of
those persons as the secretary of state considers proper, to act as police officers
for and on the premises of the railroad company, its affiliates
or subsidiaries, or elsewhere, when directly in the discharge of
their duties. Police officers so appointed, within the
time set by the Ohio peace officer training commission, shall successfully
complete a commission approved training program and be certified by
the commission. They shall hold office for three years, unless, for
good cause shown, their commission is revoked by the secretary of state, or
railroad company, as provided by law. Any person holding a similar commission in another state
may be commissioned and may hold office in this state without
completing the approved training program required by this
division provided that the person has completed a
substantially
equivalent training program in the other state. The Ohio peace
officer training commission shall determine whether a training
program in another state meets the requirements of this division. (C) Upon the application of any company under contract
with the United States atomic energy commission for the
construction or operation of a plant at a site owned by
the commission, the secretary of state may appoint and commission persons
the company designates, not to exceed one hundred fifty, to act
as police officers for the company at the plant or site owned by
the commission. Police officers so appointed shall be citizens
of this state and of good character. They shall hold office for
three years, unless, for good cause shown, their commission is
revoked by the secretary of state or by the company, as provided by law. (D)(1) Upon the application of any hospital that is
operated by a public hospital agency or a nonprofit hospital
agency and that employs and maintains its own proprietary police
department or security department and subject to section 4973.171 of the
Revised Code, the secretary of state may appoint and
commission any persons that the hospital designates, or as many of
those persons as the secretary of state considers proper, to act as police
officers for the hospital. No person who is appointed as a
police officer under this division shall engage in any duties or
activities as a police officer for the hospital or any affiliate
or subsidiary of the hospital unless all of the following apply: (a) The chief of police of the municipal corporation in
which the hospital is located or, if the hospital is located in
the unincorporated area of a county, the sheriff of that county
has granted approval to the hospital to permit persons appointed
as police officers under this division to engage in those duties
and activities. The approval required by this division is
general in nature and is intended to cover in the aggregate all
persons appointed as police officers for the hospital under this
division; a separate approval is not required for each appointee
on an individual basis. (b) Subsequent to the grant of approval described in
division (D)(1)(a) of this section, the hospital has entered into
a written agreement with the chief of police of the municipal corporation in which the
hospital is located or, if the hospital is located in the
unincorporated area of a county, with the sheriff of that county,
that sets forth the standards and criteria to govern the interaction
and cooperation between persons appointed as police officers for
the hospital under this division and law enforcement officers
serving the agency represented by the chief of police or sheriff
who signed the agreement in areas of their concurrent
jurisdiction. The written agreement shall be signed by the
appointing authority of the hospital and by the chief of police
or sheriff. The standards and criteria may include, but are not
limited to, provisions governing the reporting of offenses
discovered by hospital police officers to the agency represented
by the chief of police or sheriff, provisions governing
investigatory responsibilities relative to offenses committed on
hospital property, and provisions governing the processing and
confinement of persons arrested for offenses committed on
hospital property. The agreement required by this division is
intended to apply in the aggregate to all persons appointed as
police officers for the hospital under this division; a separate
agreement is not required for each appointee on an individual
basis. (c) The person has successfully completed a training
program approved by the Ohio peace officer training commission and
has been certified by the commission. A person appointed as a
police officer under this division may attend a training program
approved by the commission and be certified by the commission
regardless of whether the appropriate chief of police or sheriff
has granted the approval described in division (D)(1)(a) of this
section and regardless of whether the hospital has entered into
the written agreement described in division (D)(1)(b) of this
section with the appropriate chief of police or sheriff. (2)(a) A person who is appointed as a police officer under
division (D)(1) of this section is entitled, upon the grant of
approval described in division (D)(1)(a) of this section and upon
the person's and the hospital's compliance with the
requirements
of divisions (D)(1)(b) and (c) of this section, to act as a police
officer for the hospital on the premises of the hospital and of
its affiliates and subsidiaries that are within the territory of
the municipal corporation served by the chief of police or the
unincorporated area of the county served by the sheriff who
signed the written agreement described in division (D)(1)(b) of
this section, whichever is applicable, and anywhere else within
the territory of that municipal corporation or within the
unincorporated area of that county. The authority to act as a
police officer as described in this division is granted only
if the person, when engaging in that activity, is directly in the
discharge of the person's duties as a police officer for the
hospital. The authority to act as a police officer as described in this
division shall be exercised in accordance with the standards and
criteria set forth in the written agreement described in division
(D)(1)(b) of this section. (b) Additionally, a person appointed as a police officer
under division (D)(1) of this section is entitled, upon the grant
of approval described in division (D)(1)(a) of this section and
upon the person's and the hospital's compliance with the
requirements of
divisions (D)(1)(b) and (c) of this section, to act as a police
officer elsewhere, within the territory of a municipal
corporation or within the unincorporated area of a county, if the
chief of police of that municipal corporation or the sheriff of
that county, respectively, has granted approval for that activity
to the hospital, police department, or security department served
by the person as a police officer and if the person, when
engaging in that activity, is directly in the discharge of
the person's duties as a police officer for the hospital. The
approval
described in this division may be general in nature or may be
limited in scope, duration, or applicability, as determined by
the chief of police or sheriff granting the approval. (3) Police officers appointed under division (D)(1) of
this section shall hold office for three years, unless, for good
cause shown, their commission is revoked by the secretary of state or by
the hospital, as provided by law. As used in divisions (D)(1) to
(3) of this section, "public hospital agency" and "nonprofit
hospital agency" have the same meanings as in section 140.01 of
the Revised Code. (E) A fee of fifteen dollars for each commission applied for under
this section shall be paid at the time the application is made,
and this amount shall be returned if for any reason a commission
is not issued.
Section 2. That existing sections 119.01, 1733.01, 1733.04, 1733.05, 1733.16, 1733.22, 1733.24, 1733.25, 1733.29, 1733.30, 1733.31, 1733.32, 1733.33, 1733.37, 1733.38, 1733.412, 1733.44, 2101.161, 2105.31, 2109.13, 2109.372, 2109.41, 4705.09, and 4973.17 and section 1733.251 of the Revised Code are hereby repealed. Section 3. Section 119.01 of the Revised Code is presented in
this act as a composite of the section as amended by both Sub. H.B. 386 and Am. Sub. S.B. 138 of
the 124th General Assembly. Section 135.14 of the Revised Code is presented
in this act
as a composite of the section as amended by both
Sub.
H.B. 473 and Am. Sub. H.B. 640 of the 123rd General Assembly. The General Assembly, applying the
principle stated in division (B) of section 1.52 of the Revised
Code that amendments are to be harmonized if reasonably capable of
simultaneous operation, finds that the composites are the resulting
versions of the sections in effect prior to the effective date of
the sections as presented in this act.
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