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(128th General Assembly)
(Substitute House Bill Number 292)
AN ACT
To amend sections 119.01, 1125.19, 1125.28, 1157.01,
1165.01, 5307.11, 5307.12, 5307.13, 5307.14, and
5307.16; to amend, for the purpose of adopting new
section numbers as indicated in parentheses,
sections 1157.01 (1157.09) and 1165.01 (1165.09);
to enact new sections 1157.01, 1157.03 to 1157.06,
1157.10 to 1157.14, 1157.17 to 1157.29, 1165.01,
1165.03 to 1165.06, 1165.10 to 1165.14, and
1165.17 to 1165.29 and sections 1157.30, 1157.33,
1165.30, 1165.33, and 5301.057; and to repeal
sections 1157.02 to 1157.29 and 1165.02 to 1165.29
of the Revised Code relative to liquidations and
conservatorships of banks, savings and loan
associations, and savings banks, to prohibit
transfer fee covenants in certain real estate
transactions, and to enable a court of common
pleas to order a licensed auctioneer to conduct a
sale of real property pursuant to a writ of
partition.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 119.01, 1125.19, 1125.28, 1157.01,
1165.01, 5307.11, 5307.12, 5307.13, 5307.14, and 5307.16 be
amended; sections 1157.01 (1157.09) and 1165.01 (1165.09) be
amended for the purpose of adopting new sections numbers as
indicated in parentheses; and new sections 1157.01, 1157.03,
1157.04, 1157.05, 1157.06, 1157.10, 1157.11, 1157.12, 1157.13,
1157.14, 1157.17, 1157.18, 1157.19, 1157.20, 1157.21, 1157.22,
1157.23, 1157.24, 1157.25, 1157.26, 1157.27, 1157.28, 1157.29,
1165.01, 1165.03, 1165.04, 1165.05, 1165.06, 1165.10, 1165.11,
1165.12, 1165.13, 1165.14, 1165.17, 1165.18, 1165.19, 1165.20,
1165.21, 1165.22, 1165.23, 1165.24, 1165.25, 1165.26, 1165.27,
1165.28, and 1165.29 and sections 1157.30, 1157.33, 1165.30,
1165.33, and 5301.057 of the Revised Code be enacted 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, 1121.06, 1121.10, 1125.09, 1125.12, 1125.18,
1157.01, 1157.02, 1157.10, 1165.01, 1165.02, 1165.10 1157.09,
1157.12, 1157.18, 1165.09, 1165.12, 1165.18, 1349.33, 1733.35,
1733.361, 1733.37, 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, or to the actions of
the industrial commission, bureau of workers' compensation board
of directors, and bureau of workers' compensation under division
(D) of section 4121.32, sections 4123.29, 4123.34, 4123.341,
4123.342, 4123.40, 4123.411, 4123.44, 4123.442, 4127.07, divisions
(B), (C), and (E) of section 4131.04, and divisions (B), (C), and
(E) of section 4131.14 of the Revised Code with respect to all
matters concerning the establishment of premium, contribution, and
assessment rates.
(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. 1125.19. (A) Upon issuing a written finding that any
one or more of the conditions set forth in section 1125.18 of the
Revised Code for taking possession of a bank exists and taking
possession of the bank, the superintendent of financial
institutions shall file a certified copy of the finding and the
notice of possession with the court.
(B) Upon the appointment of a receiver, the superintendent
shall file a certified copy of the certificate of appointment in
the office of the secretary of state and with the court.
(C) After the superintendent files the finding of the
superintendent or the certificate of appointment of the receiver,
whichever occurs first, no person shall obtain a lien or charge
upon any assets of the bank for any payment, advance, clearance,
or liability thereafter incurred, nor shall the directors,
officers, or agents of the bank have authority to act on behalf of
the bank or to convey, transfer, assign, pledge, mortgage, or
encumber any assets of the bank.
(D) Upon taking possession of the bank, the superintendent
shall post or cause to be posted an appropriate notice of closing
at the main entrance of each of the bank's banking office offices.
(E) Neither filing nor posting of notice in accordance with
this section shall be a condition to either the superintendent's
taking possession of the property and business of a bank or
appointing a receiver for a bank.
Sec. 1125.28. (A) The filing with the court of the finding
of the superintendent of financial institutions or the certificate
of appointment of the receiver, whichever occurs first, operates
as an automatic stay from the date of the filing, subject to the
court granting a motion for relief from the stay, applicable to
all entities, of both of the following:
(1) The commencement or continuation, including the issuance
or employment of process, of a judicial, administrative, or other
action or proceeding against the bank that was or could have been
commenced before the filing;
(2) The enforcement against the bank of a judgment or other
claim obtained before the filing, including claims of security,
preference, priority, and offset.
(B) Upon the filing with the court of the finding of the
superintendent or the certificate of appointment of the receiver,
whichever occurs first, any other pending judicial,
administrative, or other action or proceeding against the bank
shall, upon motion of the receiver, be consolidated into one
action or transferred as a separate matter before the presiding
judge of the court having jurisdiction of the receivership,
subject, however, to the automatic stay provided in division (A)
of this section. Subject to the receiver's option to have an
action later consolidated or transferred, any action commenced
after the superintendent's filing shall be filed as a separate
matter before the presiding judge in the court having jurisdiction
over the receivership.
(C) The superintendent, prior to the appointment of a
receiver, or the receiver, after its appointment, shall be the
only party named in an action involving a bank subject to this
chapter.
(D) Any action seeking to enjoin the superintendent's order
appointing a receiver of a bank shall be brought prior to the date
the receiver sells all or substantially all of the assets of the
bank, prior to the date the receiver transfers all or
substantially all of the insured deposits to an assuming
institution, or within ten days after the issuance of the order,
whichever is earlier earliest.
Sec. 1157.01. (A) As used in this chapter, "court" means the
court of common pleas of the county in which the principal place
of business of a savings and loan association, as set forth in its
articles of incorporation, is located or of any other county
determined by the superintendent of financial institutions to be
appropriate under the circumstances.
(B) The court shall have exclusive original jurisdiction of
any action or proceeding relating to or arising out of the taking
of possession of the property and business of a savings and loan
association under this chapter, whether before or after the
savings and loan association is wound up and dissolved, as well as
any action or other proceeding brought under this chapter.
(C) Whenever the approval of the court is required for any
act under this chapter, that approval may be given with or without
a hearing held upon whatever notice, if any, the court may direct,
unless otherwise provided in this chapter. At a hearing, the
court, by order, may approve the actions petitioned.
Sec. 1157.03. (A) A savings and loan association may proceed
with a voluntary liquidation and be closed only with both the
consent of the superintendent of financial institutions and the
prior approval of the shareholders of the savings and loan
association by a vote as provided for in its articles of
incorporation, if not less than a majority.
(B) Prior to instituting a voluntary liquidation, a savings
and loan association shall submit to the superintendent an
application for approval of its plan of voluntary liquidation and
evidence satisfactory to the superintendent that the plan has been
properly adopted by the savings and loan association and approved
by its shareholders.
(C) A savings and loan association's plan of voluntary
liquidation shall include provisions for all of the following:
(1) The settlement of all debts and liabilities, including
the claims of account holders, owed by the savings and loan
association;
(2) The distribution of the savings and loan association's
assets that remain after the settlement of debts and liabilities
to all persons entitled to them;
(3) The disposition or maintenance of any remaining or
unclaimed funds, real or personal property, either tangible or
intangible, or other assets, whether in trust or otherwise,
including the contents of safe deposit boxes or vaults;
(4) The retention of the savings and loan association's
records in accordance with section 1155.07 of the Revised Code;
(5) The date upon which the savings and loan association
shall cease doing any banking business and surrender its license
to the superintendent.
(D) Upon receipt of a plan of voluntary liquidation, the
superintendent shall make an examination of the savings and loan
association and shall consent to or deny an application for
approval of a plan based upon the superintendent's evaluation of
whether or not the interests of the savings and loan association's
depositors and creditors will suffer by the liquidation.
(E) The superintendent's consent to an application for
approval of a plan of voluntary liquidation may be subject to any
condition the superintendent determines appropriate under the
circumstances.
Sec. 1157.04. (A) If the superintendent of financial
institutions consents to a voluntary liquidation, the
superintendent shall cause a certified copy of the consent to be
filed in the office of the secretary of state, and the savings and
loan association to be liquidated shall do both of the following:
(1) Publish a notice of the voluntary liquidation once a week
for four consecutive weeks in a newspaper of general circulation
in the county in which the savings and loan association's
principal place of business is located;
(2) Give written notice of the voluntary liquidation, either
personally or by mail, to all known creditors of and all known
claimants against the savings and loan association.
(B) Compliance with the notice and publication requirements
of division (A) of this section satisfies any duplicate or similar
notice and publication requirements of Chapter 1701. of the
Revised Code.
Sec. 1157.05. (A) A voluntary liquidation of a savings and
loan association shall be conducted only with the continued
supervision of the superintendent of financial institutions. The
superintendent may conduct any additional examinations of the
savings and loan association the superintendent considers
necessary or appropriate.
(B) If the superintendent has reason to conclude the
liquidation of a savings and loan association is not being safely
or expeditiously conducted, the superintendent may take possession
of the business and property of the savings and loan association
in the same manner, with the same effect, and subject to the same
rights accorded the savings and loan association as if the
superintendent had taken possession under the receivership
provisions of this chapter. The superintendent may proceed to
liquidate the affairs of the savings and loan association in the
same manner as otherwise provided in this chapter.
Sec. 1157.06. Upon completion of a voluntary liquidation,
the liquidated savings and loan association shall submit to the
superintendent of financial institutions all documents required
under Chapter 1701. of the Revised Code for a dissolution. The
superintendent shall consent to the dissolution, and shall cause a
certified copy of the consent to be filed, along with the savings
and loan association's dissolution documents, in the office of the
secretary of state.
Sec. 1157.01 1157.09. (A) The superintendent of savings and
loan associations financial institutions may appoint a conservator
for any to take possession of the property and business of a
savings and loan association whenever he deems it necessary in
order and to conserve
retain possession until the assets of such
savings and loan association for depositors, members, and
creditors. The resumes business or a receiver is appointed, as
provided for in this chapter, if the superintendent shall appoint
a conservator for any association whose finds any one or more of
the following conditions:
(A) The savings and loan association is in an unsafe or
unsound condition to continue the business of banking.
(B) The savings and loan association is insolvent, in that it
has ceased to pay its debts in the ordinary course of business, it
is incapable of paying its debts as they mature, or it has
liabilities in excess of its assets.
(C) The savings and loan association has committed a
violation of law that has caused or that threatens substantial
injury to any of the public, the banking industry, or the savings
and loan association's depositors or other creditors.
(D) The savings and loan association has refused to submit
its records of account, papers, or affairs to the inspection or
examination of any federal agency or the superintendent.
(E) The savings and loan association has failed to pay its
deposits or obligations in accordance with the terms under which
the deposits were taken or the obligations were incurred.
(F) A majority of the board of directors of the savings and
loan association or a majority of its shareholders has requested
the superintendent to appoint a conservator to take possession of
the savings and loan association.
(G) Either all positions on the board of directors of the
savings and loan association are vacant or all of the directors
then in office are incapacitated or otherwise unable to perform
their responsibilities.
(H) The savings and loan association has violated any court
order, statute, rule, or regulation, or its articles of
incorporation, and the superintendent determines the continued
control of its own affairs threatens injury to any of the public,
the banking industry, or the savings and loan association's
depositors or other creditors.
(I) The savings and loan association's status as an insured
institution has been terminated by the federal savings and loan
deposit insurance corporation.
The superintendent may fix the
compensation to be paid such conservator, the bond or other
security to be required of him, and may remove such conservator at
any time. Upon or after the appointment of a conservator for any
savings and loan association, the superintendent may order the
closing of the books of such savings and loan association against
further transfer of its stock. He may thereafter permit such books
to be reopened.
(B) The conservator:
(1) Shall take possession of the business and property of
such savings and loan association;
(2) Shall have and exercise, in the name and on behalf of the
association, all the rights, powers, and authority of the officers
and directors of the association and all voting rights of its
members or shareholders and may continue its business in whole or
in part with a view to conserving its business and assets pending
further disposition thereof as provided by law under the
supervision of the superintendent and upon such limitations as are
imposed by him;
(3) May give notice that he has taken possession of the
assets of the association to all persons holding or having
possession of any assets of such association;
(4) May do all things he considers desirable or expedient to
carry on the association's business consistent with his
appointment, but he shall not declare, credit or distribute
earnings on savings accounts or deposits without the approval of
the superintendent;
(5) May bring or defend suits or proceedings in the name of
the association under the direction and supervision of the
superintendent;
(6) May do such things and have such rights, powers,
privileges, immunities, and duties as the superintendent
authorizes, directs, confers, or imposes.
This section does not vest title to any assets of the
association in the conservator. No person, firm, corporation, or
association, knowing that a conservator has taken possession of
the business and property of an association or having been so
notified, shall have a lien or charge against any of the assets of
such association for any payment, advance, clearance, or liability
thereafter made or incurred. The obligations of such association
shall continue to bear interest at the rate contracted.
Any officer, director, member, or shareholder may, from time
to time, communicate with the superintendent regarding the
conservatorship. The conservator shall furnish bond in form and
amount as the superintendent may direct.
(C) The attorney general, as legal advisor to the division,
may employ special counsel to aid him with respect to any
litigation in which the conservator is involved on behalf of the
association. The compensation of such special counsel shall be
fixed by the attorney general subject to the approval of the
court.
(D) Within thirty days after appointment of a conservator,
the association may bring an action in the court of common pleas
of Franklin county, for an order that the superintendent remove
the conservator. Immediately upon filing such action, summons
shall be issued to the sheriff of Franklin county to be served on
the superintendent, returnable within five days from its date,
which in all other respects such summons shall be made as in civil
actions, whereupon the allegations of the petition shall be deemed
to stand denied without pleading and the cause shall be advanced
and heard without delay.
(E) The superintendent may terminate the conservatorship and
permit the association to resume the transaction of its business,
subject to such terms and restrictions as he prescribes, when the
superintendent determines that the termination of such
conservatorship may be safely done and would be in the public
interest. In no case shall the superintendent terminate the
conservatorship and permit the association to resume the
transaction of its business, unless the federal savings and loan
insurance corporation assures the superintendent that the
association, upon resuming the transaction of its business, will
have the status of an insured institution. The superintendent may
terminate the conservatorship and take possession on any of the
grounds provided in section 1157.02 of the Revised Code.
(F) The conservator may submit a plan for the termination of
the conservatorship to the members or shareholders of the
association; if the holders of a majority of the shares or a
majority of members vote to accept the plan, they shall elect
directors to manage the affairs of the association.
When a plan for termination of such conservatorship has been
submitted to the members or shareholders of the association, the
superintendent may require that the plan be submitted to the
court. He may require that not less than two weeks' notice of the
time and place of hearing on such application be given by
publication or otherwise, as the court directs, to depositors,
creditors, members, and shareholders of the association.
(G) The expenses of the conservatorship and the compensation
of the conservator and the special counsel, if any, as provided in
this section, shall be paid out of the assets of the association
and shall be a lien thereon prior to any other lien.
Sec. 1157.10. (A) If it appears to the superintendent of
financial institutions that any one or more of the conditions set
forth in section 1157.09 of the Revised Code exists as to any
savings and loan association, the superintendent may appoint a
conservator, which appointment may include the superintendent, and
thereafter may dismiss or replace the conservator as the
superintendent determines necessary or advisable. The
superintendent may fix the compensation to be paid the conservator
and the amount of the bond or other security, if any, to be
required.
(B) The superintendent may, from time to time, appoint one or
more special deputy superintendents as agent or agents to assist
in the duties of conservatorship.
(C) The superintendent, any special deputy superintendents,
or a conservator may employ and procure whatever assistance or
advice is necessary in the conservatorship of the savings and loan
association, and, for that purpose, may retain officers or
employees of the savings and loan association as needed.
(D) The superintendent may terminate the conservatorship at
any time, and may appoint a receiver for liquidation of the
savings and loan association on any of the grounds provided in
this chapter for appointment of a receiver.
(E) All expenses of a conservatorship shall be paid out of
the assets of the savings and loan association, and shall be a
lien on the savings and loan association's assets, which lien
shall be prior to any other lien.
Sec. 1157.11. (A) Upon the appointment of a conservator, the
superintendent of financial institutions shall file a certified
copy of the certificate of appointment in the office of the
secretary of state, and thereafter no person shall obtain a lien
or charge upon any assets of the savings and loan association for
any payment, advance, clearance, or liability thereafter made or
incurred, nor shall the directors, officers, or agents of the
savings and loan association thereafter have authority to act on
behalf of the savings and loan association or to convey, transfer,
assign, pledge, mortgage, or encumber any of the savings and loan
association's assets.
(B) The filing of the certificate of appointment in
accordance with this section shall not be a condition to either
the superintendent's taking possession of the property and
business of a savings and loan association or appointing a
conservator for a savings and loan association.
Sec. 1157.12. (A) A conservator, under the supervision of
the superintendent of financial institutions and subject to any
limitations imposed by the superintendent, shall have all of the
following powers:
(1) To take possession of all books, records of account, and
assets of the savings and loan association;
(2) To have and exercise, in the name and on behalf of the
savings and loan association, all the rights, powers, and
authority of the officers and directors of the savings and loan
association and all voting rights of its shareholders;
(3) To collect all debts, claims, and judgments belonging to
the savings and loan association and to take any other action,
including the lending of money, necessary to the operation of the
savings and loan association during the conservatorship;
(4) To execute in the name of the savings and loan
association any instrument necessary or proper to effectuate the
conservator's powers or perform its duties as conservator;
(5) To initiate, pursue, compromise, and defend litigation
involving any right, claim, interest, or liability of the savings
and loan association;
(6) To exercise all fiduciary functions of the savings and
loan association as of the date of appointment as conservator;
(7) To borrow money as necessary in the operation of the
savings and loan association, and to secure those borrowings by
the pledge or mortgage of the assets of the savings and loan
association;
(8) To abandon or convey title to any holder of a deed of
trust, mortgage, or similar lien against property in which the
savings and loan association has an interest, whenever the
conservator determines that continuing to claim that interest is
burdensome and of no advantage to the savings and loan association
or its account holders, creditors, or shareholders;
(9) If done within the ordinary course of business or
financial affairs of the savings and loan association and
according to ordinary business terms, to sell any and all assets,
to compromise any debt, claim, obligation, or judgment due to the
savings and loan association, to discontinue any pending action or
other proceeding, and to implement a restructuring of the savings
and loan association in accordance with this chapter.
(B) Title to any assets of the savings and loan association
does not vest in the conservator.
Sec. 1157.13. During the period of the conservatorship, all
of the following apply:
(A) The conservator may permit the savings and loan
association to continue to conduct its usual business, including
the acceptance of deposits.
(B) The obligations of the savings and loan association shall
continue to bear interest at the rate contracted.
(C) The conservator shall make whatever reports to the
superintendent of financial institutions the superintendent may
from time to time require.
Sec. 1157.14. (A) The conservator shall evaluate the
business and assets of the savings and loan association and, after
conducting whatever investigations the circumstances may require,
shall recommend to the superintendent of financial institutions
that either the conservatorship of the savings and loan
association be terminated or the superintendent appoint a receiver
and the savings and loan association be liquidated as otherwise
provided in this chapter. The conservator shall consult with the
board of directors of the savings and loan association before
making the recommendation.
(B) The conservator of the savings and loan association may
submit a plan to the superintendent for approval to restructure
the savings and loan association in a manner designed to return
the savings and loan association to the control of its
shareholders. As part of the plan, the conservator may take any
steps the superintendent approves regarding the management,
operations, or assets of the savings and loan association,
including the sale of some or all of the savings and loan
association's assets. The conservator shall consult with the board
of directors of the savings and loan association regarding any
proposed sale of all or substantially all of the savings and loan
association's assets.
(C) The superintendent may require the conservator to submit
the plan to the shareholders of the savings and loan association
as provided in division (D) of this section or to submit a new or
revised plan for consideration by the superintendent.
(D) If the conservator's plan is submitted to the
shareholders pursuant to division (C) of this section, the
superintendent shall designate the contents of notice of the vote
that is to be forwarded from the conservator to the shareholders
and shall designate the date upon which notice is to be forwarded.
The date of the shareholder vote shall be determined by the
superintendent, but shall not occur earlier than seven days or
later than forty-five days after the date of the notice.
If the majority of the shareholders do not approve the plan,
the superintendent may request submission of a new plan or proceed
to appoint a receiver without regard to the grounds for
appointment of a receiver as otherwise provided in this chapter.
If the majority of the shareholders approve the plan, the
superintendent may terminate the conservatorship, and the
shareholders shall elect directors to manage the savings and loan
association.
(E) The superintendent, at any time, including after the date
notice of a vote is provided to shareholders of the savings and
loan association under division (D) of this section, may revoke a
previously approved plan of the conservator and either provide
for, or request submission of, a new plan or proceed with
receivership under this chapter.
Sec. 1157.17. This chapter provides the full and exclusive
powers and procedures for the liquidation of savings and loan
associations under the laws of this state, and no receiver or
other liquidating agent shall be appointed for that purpose except
as expressly provided in this chapter.
Sec. 1157.18. The superintendent of financial institutions
may take possession of the property and business of a savings and
loan association if the superintendent finds any one or more of
the following conditions:
(A) The savings and loan association is in an unsafe or
unsound condition to continue the business of banking.
(B) The savings and loan association is insolvent, in that it
has ceased to pay its debts in the ordinary course of business, it
is incapable of paying its debts as they mature, or it has
liabilities in excess of its assets.
(C) The savings and loan association has refused to submit
its records or affairs to the inspection or examination of any
federal bank regulatory agency or the superintendent.
(D) The savings and loan association has failed to pay its
deposits or obligations in accordance with the terms under which
the deposits were taken or the obligations were incurred.
(E) A majority of the board of directors of the savings and
loan association has requested the superintendent to appoint a
receiver to take possession of the savings and loan association
for the benefit of account holders, creditors, or shareholders.
(F) The savings and loan association has violated any order
of a court or of the superintendent, any statute, rule, or
regulation, or its articles of incorporation, and the
superintendent determines the continued control of its own affairs
threatens injury to any of the public, the banking industry, or
the savings and loan association's depositors or other creditors.
(G) The savings and loan association's status as an insured
institution has been terminated by the federal deposit insurance
corporation.
(H) The savings and loan association has an impairment of
paid-in capital.
Sec. 1157.19. (A) Upon issuing a written finding that any
one or more of the conditions set forth in section 1157.18 of the
Revised Code for taking possession of a savings and loan
association exists and taking possession of the savings and loan
association, the superintendent of financial institutions shall
file a certified copy of the finding and the notice of possession
with the court.
(B) Upon the appointment of a receiver, the superintendent
shall file a certified copy of the certificate of appointment in
the office of the secretary of state and with the court.
(C) After the superintendent files the finding of the
superintendent or the certificate of appointment of the receiver,
whichever occurs first, no person shall obtain a lien or charge
upon any assets of the savings and loan association for any
payment, advance, clearance, or liability thereafter incurred, nor
shall the directors, officers, or agents of the savings and loan
association have authority to act on behalf of the savings and
loan association or to convey, transfer, assign, pledge, mortgage,
or encumber any assets of the savings and loan association.
(D) Upon taking possession of the savings and loan
association, the superintendent shall post or cause to be posted
an appropriate notice of closing at the main entrance of each of
the savings and loan association's banking offices.
(E) Neither filing nor posting of notice in accordance with
this section shall be a condition to either the superintendent's
taking possession of the property and business of a savings and
loan association or appointing a receiver for a savings and loan
association.
Sec. 1157.20. (A) If it appears to the superintendent of
financial institutions that any one or more of the conditions set
forth in section 1157.18 of the Revised Code exists as to any
savings and loan association, the superintendent shall tender
appointment as receiver to the federal deposit insurance
corporation if any deposits in the savings and loan association
are insured by the federal deposit insurance corporation, and may
tender appointment as receiver to the federal deposit insurance
corporation in any other case. Upon acceptance of the appointment
as receiver, the federal deposit insurance corporation shall not
be required to post a bond. In addition to the powers of a
receiver set forth in this chapter, the federal deposit insurance
corporation, as receiver, may exercise any other liquidation or
receivership powers authorized by state or federal law for a
receiver of a savings and loan association.
(B) If the federal deposit insurance corporation declines to
accept the tendered appointment or if the superintendent is not
required to tender appointment as receiver to the federal deposit
insurance corporation, the superintendent may appoint, and
thereafter dismiss or replace, any other receiver, including the
superintendent, the superintendent determines to be necessary or
advisable. The superintendent may fix the compensation to be paid
the receiver and the amount of the bond or other security, if any,
to be required.
(C) The superintendent may, from time to time, appoint one or
more special deputy superintendents as agent or agents to assist
in the duties of receivership or of liquidation and distribution.
No agent so appointed shall be subject to section 1181.05 of the
Revised Code.
(D) The superintendent, any special deputy superintendents,
or a receiver may employ and procure whatever assistance or advice
is necessary in the receivership or liquidation and distribution
of the assets of the savings and loan association, and, for that
purpose, may retain officers or employees of the savings and loan
association as needed.
(E) All expenses of a receivership and liquidation shall be
paid out of the assets of the savings and loan association, and
shall be a lien on the savings and loan association's assets,
which lien shall be prior to any other lien.
Sec. 1157.21. Upon the superintendent of financial
institutions' appointment of a receiver, title to all of the
savings and loan association's assets shall vest in the receiver
without the execution of any instrument of conveyance, assignment,
transfer, or endorsement.
Sec. 1157.22. (A) A receiver shall have all of the following
powers:
(1) To take possession of all books, records of account, and
assets of the savings and loan association;
(2) To collect all debts, claims, and judgments belonging to
the savings and loan association and to take any other action,
including the lending of money, necessary to preserve and
liquidate the assets of the savings and loan association;
(3) To execute in the name of the savings and loan
association any instrument necessary or proper to effectuate the
receiver's powers or perform its duties as receiver;
(4) To initiate, pursue, compromise, and defend litigation
involving any right, claim, interest, or liability of the savings
and loan association;
(5) To exercise all fiduciary functions of the savings and
loan association as of the date of appointment as receiver;
(6) To borrow money as necessary in the liquidation of the
savings and loan association, and to secure those borrowings by
the pledge or mortgage of assets of the savings and loan
association;
(7) To abandon or convey title to any holder of a deed of
trust, mortgage, or similar lien against property in which the
savings and loan association has an interest, whenever the
receiver determines that continuing to claim that interest is
burdensome and of no advantage to the savings and loan association
or its account holders, creditors, or shareholders;
(8) To sell any and all assets, to compromise any debt,
claim, obligation, or judgment due to the savings and loan
association, to discontinue any pending action or other
proceeding, and to sell or otherwise transfer all or a substantial
portion of the assets or liabilities of the savings and loan
association;
(9) To establish ancillary receiverships in any jurisdiction
the receiver determines necessary;
(10) To distribute assets in accordance with this chapter;
(11) To take any other action incident to the powers set
forth in division (A) of this section.
(B) Unless specifically indicated to the contrary, the powers
conferred upon a receiver under this section may be exercised
without court approval. However, nothing in this section shall be
construed to prevent a receiver from obtaining court approval when
the receiver determines approval is appropriate under the
circumstances.
Sec. 1157.23. (A) The receiver shall promptly cause notice
of the claims procedure to be published once a month for two
consecutive months in a local newspaper of general circulation and
to be mailed to each person whose name appears as a creditor upon
the books of the savings and loan association, at the last address
of record.
(B)(1) All parties having claims of any kind against the
savings and loan association, including prior judgments and claims
of security, preference, priority, and offset, shall present their
claims substantiated by legal proof to the receiver within one
hundred eighty days after the date of the first publication of
notice of the claims procedure or after actual receipt of notice
of the claims procedure, whichever occurs first.
(2) Within one hundred eighty days after receipt of a claim,
the receiver shall notify the claimant in writing whether the
claim has been allowed or disallowed. The receiver may reject any
claim in whole or in part, or may reject any claim of security,
preference, priority, or offset against the savings and loan
association. Any claimant whose claim has been rejected by the
receiver shall petition the court for a hearing on the claim
within sixty days after the date the notice was mailed or be
forever barred from asserting the rejected claim.
(C) Any claims filed after the claim period and subsequently
accepted by the receiver or allowed by the court, shall be
entitled to share in the distribution of assets only to the extent
of the undistributed assets in the hands of the receiver on the
date the claims are accepted or allowed.
Sec. 1157.24. (A) All claims against the savings and loan
association's estate and expenses, proved to the receiver's
satisfaction or approved by the court, shall be paid in the
following order:
(1) Expenses of liquidation and receivership, including money
borrowed under authority of division (A)(6) of section 1157.22 or
division (A)(7) of section 1157.12 of the Revised Code and
interest on it, and claims for fees and assessments due the
superintendent of financial institutions;
(2) Claims given priorities under other provisions of state
or federal law;
(3) Wages and salaries of officers and employees earned
during the one-month period preceding the date of the savings and
loan association's closing in an amount, before applicable taxes
and other withholdings, that does not exceed one thousand dollars
for any one person;
(4) Deposit obligations;
(5) Other general liabilities;
(6) Obligations subordinated to deposits and other general
liabilities.
(B) Interest shall be given the same priority as the claim on
which it is based, but no interest shall be paid on any claim
until the principal of all claims within the same class has been
paid or provided for in full.
(C) Any funds remaining after satisfying the requirements of
divisions (A) and (B) of this section shall be paid to the
shareholders.
(D) Payment on claims shall be made pro rata among claims of
the kind specified in each class set forth in division (A) of this
section.
(E) Subject to the approval of the court, the receiver may
designate a separate class of claims consisting only of every
unsecured claim that is less than, or reduced to, an amount the
court approves for payment as reasonable and necessary for
administrative convenience.
(F) Subject to the approval of the court, the receiver may
make periodic and interim liquidating dividends or payments.
Sec. 1157.25. (A) Within one hundred days after the date of
the closing of a savings and loan association, a receiver may
reject any executory contract to which the savings and loan
association is a party without any further liability on the part
of the savings and loan association or the receiver. The
receiver's election to reject an executory contract creates no
claim for compensation other than compensation accrued to the date
of termination or for actual damages.
(B) A receiver may ratify and assign any executory contract
to which the savings and loan association is a party
notwithstanding the existence of a provision in the contract
permitting the termination of the executory contract, or
prohibiting, conditioning, or requiring consent to any assignment
of the executory contract, upon the insolvency of the savings and
loan association or the appointment of a receiver.
Sec. 1157.26. Whenever the federal deposit insurance
corporation pays or makes available for payment the insured
deposit liabilities of a savings and loan association, the federal
deposit insurance corporation, whether or not it acts as receiver,
shall be subrogated to the extent of the payments to all rights of
depositors against the savings and loan association.
Sec. 1157.27. (A) The receiver may appoint a successor to
all rights, obligations, assets, deposits, agreements, and trusts
held by the closed savings and loan association as trustee,
administrator, executor, guardian, agent, or in any other
fiduciary or representative capacity. The successor's duties and
obligations commence upon appointment to the same extent they are
binding upon the former savings and loan association and as though
the successor had originally assumed the duties and obligations.
Specifically, the successor shall succeed to and be entitled to
administer all trusteeships, administrations, executorships,
guardianships, agencies, and all other fiduciary or representative
proceedings to which the closed savings and loan association is
named or appointed in wills, whenever probated, or to which it is
appointed by any other instrument, court order, or operation of
law.
(B) Within sixty days after appointment, the successor shall
give written notice, insofar as practicable, to all interested
parties named in the books and records of the savings and loan
association or in trust documents held by it, that the successor
has been appointed in accordance with state law.
(C) Nothing in this section shall be construed to impair any
right of the grantor or beneficiaries of trust assets to secure
the appointment of a substituted trustee or manager.
Sec. 1157.28. (A) The filing with the court of the finding
of the superintendent of financial institutions or the certificate
of appointment of the receiver, whichever occurs first, operates
as an automatic stay from the date of the filing, subject to the
court granting a motion for relief from the stay, applicable to
all entities, of both of the following:
(1) The commencement or continuation, including the issuance
or employment of process, of a judicial, administrative, or other
action or proceeding against the savings and loan association that
was or could have been commenced before the filing;
(2) The enforcement against the savings and loan association
of a judgment or other claim obtained before the filing, including
claims of security, preference, priority, and offset.
(B) Upon the filing with the court of the finding of the
superintendent or the certificate of appointment of the receiver,
whichever occurs first, any other pending judicial,
administrative, or other action or proceeding against the savings
and loan association shall, upon motion of the receiver, be
consolidated into one action or transferred as a separate matter
before the presiding judge of the court having jurisdiction of the
receivership, subject, however, to the automatic stay provided in
division (A) of this section. Subject to the receiver's option to
have an action later consolidated or transferred, any action
commenced after the superintendent's filing shall be filed as a
separate matter before the presiding judge in the court having
jurisdiction over the receivership.
(C) The superintendent, prior to the appointment of a
receiver, or the receiver, after its appointment, shall be the
only party named in an action involving a savings and loan
association subject to this chapter.
(D) Any action seeking to enjoin the superintendent's order
appointing a receiver of a savings and loan association shall be
brought prior to the date the receiver sells all or substantially
all of the assets of the savings and loan association, prior to
the date the receiver transfers all or substantially all of the
insured deposits to an assuming institution, or within ten days
after the issuance of the order, whichever is earliest.
Sec. 1157.29. (A) When a receiver has completed the
liquidation of a savings and loan association, the receiver shall,
with notice to the superintendent of financial institutions,
petition the court for an order declaring the savings and loan
association properly wound up and dissolved.
(B) After whatever notice and hearing, if any, the court may
direct, the court may make an order declaring the savings and loan
association properly wound up and dissolved. The order shall do
both of the following, to the extent applicable:
(1) Declare all of the following:
(a) The savings and loan association has been properly wound
up.
(b) All known assets of the savings and loan association have
been distributed according to the distribution priorities set
forth in this chapter.
(c) The savings and loan association is dissolved.
(2) If there are known debts or liabilities, describe the
provision made for their payment, setting forth whatever
information may be necessary to enable the creditor or other
person to whom payment is to be made to appear and claim payment
of the debt or liability.
(C) The order shall confirm a plan by the receiver for the
disposition or maintenance of any remaining real or personal
property or other assets, whether held in trust or otherwise and
including the contents of safe deposit boxes or vaults, held by
the savings and loan association for its account holders,
creditors, lessees, or shareholders. The plan shall include
written notice to all known owners or beneficiaries of the assets,
to be sent by first class mail to each individual's address as
shown on the records of the savings and loan association.
(D) The court may make whatever additional orders and grant
whatever further relief it determines proper upon the evidence
submitted.
(E) Once the order is made declaring the savings and loan
association dissolved, the corporate existence of the savings and
loan association shall cease, except for purposes of any necessary
additional winding up.
(F) Once the order is made declaring the savings and loan
association dissolved, the receiver shall promptly file a copy of
the order, certified by the clerk of the court, with both the
secretary of state and the superintendent.
Sec. 1157.30. Subject to the approval of the court, the
receiver may destroy the records of the savings and loan
association after the receiver determines there is no further need
for them. However, the receiver shall not destroy the records
earlier than six months after the date the savings and loan
association is declared dissolved by the court.
Sec. 1157.33. (A) No damages may be awarded in a proceeding
brought pursuant to this chapter challenging any action by the
superintendent of financial institutions, special deputy
superintendent, receiver, or conservator, or any employee of any
of them, or any person retained for services under this chapter.
Any action for damages shall be brought in the court as a separate
action.
(B) The superintendent, special deputy superintendent,
receiver, conservator, or any employee of any of them, or any
person retained for services under this chapter, is not subject to
any civil liability or penalty, or to any criminal prosecution,
for any error in judgment or discretion made in good faith in any
action taken or omitted in an official capacity under this
chapter.
(C) The superintendent, special deputy superintendent,
receiver, conservator, or any employee of any of them, or any
person retained for services under this chapter, is not liable in
damages for any action or failure to act unless it is proved by
clear and convincing evidence in court that the action or failure
to act involved an act or omission undertaken with deliberate
intent to cause injury to any of the savings and loan association,
its shareholders, its depositors, or its creditors, or undertaken
with reckless disregard for the best interests of any of the
savings and loan association, its shareholders, its depositors,
its creditors, or the public.
Sec. 1165.01. (A) As used in this chapter, "court" means the
court of common pleas of the county in which the principal place
of business of a savings bank, as set forth in its articles of
incorporation, is located or of any other county determined by the
superintendent of financial institutions to be appropriate under
the circumstances.
(B) The court shall have exclusive original jurisdiction of
any action or proceeding relating to or arising out of the taking
of possession of the property and business of a savings bank under
this chapter, whether before or after the savings bank is wound up
and dissolved, as well as any action or other proceeding brought
under this chapter.
(C) Whenever the approval of the court is required for any
act under this chapter, that approval may be given with or without
a hearing held upon whatever notice, if any, the court may direct,
unless otherwise provided in this chapter. At a hearing, the
court, by order, may approve the actions petitioned.
Sec. 1165.03. (A) A savings bank may proceed with a
voluntary liquidation and be closed only with both the consent of
the superintendent of financial institutions and the prior
approval of the shareholders of the savings bank by a vote as
provided for in its articles of incorporation, if not less than a
majority.
(B) Prior to instituting a voluntary liquidation, a savings
bank shall submit to the superintendent an application for
approval of its plan of voluntary liquidation and evidence
satisfactory to the superintendent that the plan has been properly
adopted by the savings bank and approved by its shareholders.
(C) A savings bank's plan of voluntary liquidation shall
include provisions for all of the following:
(1) The settlement of all debts and liabilities, including
the claims of account holders, owed by the savings bank;
(2) The distribution of the savings bank's assets that remain
after the settlement of debts and liabilities to all persons
entitled to them;
(3) The disposition or maintenance of any remaining or
unclaimed funds, real or personal property, either tangible or
intangible, or other assets, whether in trust or otherwise,
including the contents of safe deposit boxes or vaults;
(4) The retention of the savings bank's records in accordance
with section 1163.09 of the Revised Code;
(5) The date upon which the savings bank shall cease doing
any banking business and surrender its license to the
superintendent.
(D) Upon receipt of a plan of voluntary liquidation, the
superintendent shall make an examination of the savings bank and
shall consent to or deny an application for approval of a plan
based upon the superintendent's evaluation of whether or not the
interests of the savings bank's depositors and creditors will
suffer by the liquidation.
(E) The superintendent's consent to an application for
approval of a plan of voluntary liquidation may be subject to any
condition the superintendent determines appropriate under the
circumstances.
Sec. 1165.04. (A) If the superintendent of financial
institutions consents to a voluntary liquidation, the
superintendent shall cause a certified copy of the consent to be
filed in the office of the secretary of state, and the savings
bank to be liquidated shall do both of the following:
(1) Publish a notice of the voluntary liquidation once a week
for four consecutive weeks in a newspaper of general circulation
in the county in which the savings bank's principal place of
business is located;
(2) Give written notice of the voluntary liquidation, either
personally or by mail, to all known creditors of and all known
claimants against the savings bank.
(B) Compliance with the notice and publication requirements
of division (A) of this section satisfies any duplicate or similar
notice and publication requirements of Chapter 1701. of the
Revised Code.
Sec. 1165.05. (A) A voluntary liquidation of a savings bank
shall be conducted only with the continued supervision of the
superintendent of financial institutions. The superintendent may
conduct any additional examinations of the savings bank the
superintendent considers necessary or appropriate.
(B) If the superintendent has reason to conclude the
liquidation of a savings bank is not being safely or expeditiously
conducted, the superintendent may take possession of the business
and property of the savings bank in the same manner, with the same
effect, and subject to the same rights accorded the savings bank
as if the superintendent had taken possession under the
receivership provisions of this chapter. The superintendent may
proceed to liquidate the affairs of the savings bank in the same
manner as otherwise provided in this chapter.
Sec. 1165.06. Upon completion of a voluntary liquidation,
the liquidated savings bank shall submit to the superintendent of
financial institutions all documents required under Chapter 1701.
of the Revised Code for a dissolution. The superintendent shall
consent to the dissolution, and shall cause a certified copy of
the consent to be filed, along with the savings bank's dissolution
documents, in the office of the secretary of state.
Sec. 1165.01 1165.09. (A) The superintendent of savings
banks
financial institutions may appoint a conservator for any to
take possession of the property and business of a savings bank
whenever he considers it necessary in order and to conserve retain
possession until the assets of that savings bank for depositors,
members, and creditors. The resumes business or a receiver is
appointed, as provided for in this chapter, if the superintendent
shall appoint a conservator for any savings bank whose finds any
one or more of the following conditions:
(A) The savings bank is in an unsafe or unsound condition to
continue the business of banking.
(B) The savings bank is insolvent, in that it has ceased to
pay its debts in the ordinary course of business, it is incapable
of paying its debts as they mature, or it has liabilities in
excess of its assets.
(C) The savings bank has committed a violation of law that
has caused or that threatens substantial injury to any of the
public, the banking industry, or the savings bank's depositors or
other creditors.
(D) The savings bank has refused to submit its records of
account, papers, or affairs to the inspection or examination of
any federal agency or the superintendent.
(E) The savings bank has failed to pay its deposits or
obligations in accordance with the terms under which the deposits
were taken or the obligations were incurred.
(F) A majority of the board of directors of the savings bank
or a majority of its shareholders has requested the superintendent
to appoint a conservator to take possession of the savings bank.
(G) Either all positions on the board of directors of the
savings bank are vacant or all of the directors then in office are
incapacitated or otherwise unable to perform their
responsibilities.
(H) The savings bank has violated any court order, statute,
rule, or regulation, or its articles of incorporation, and the
superintendent determines the continued control of its own affairs
threatens injury to any of the public, the banking industry, or
the savings bank's depositors or other creditors.
(I) The savings bank's status as an insured depository
institution has been terminated by the federal deposit insurance
corporation. The superintendent may fix the compensation to be
paid the conservator, the bond or other security to be required of
him, and may remove the conservator at any time. Upon or after the
appointment of a conservator for any savings bank, the
superintendent may order the closing of the books of the savings
bank against further transfer of its stock. He may thereafter
permit the books to be reopened.
(B) The conservator shall:
(1) Take possession of the business and property of the
savings bank;
(2) Have and exercise, in the name and on behalf of the
savings bank, all the rights, powers, and authority of the
officers and directors of the savings bank and all voting rights
of its members or shareholders and may continue its business in
whole or in part with a view to conserving its business and assets
pending further disposition thereof as provided by law under the
supervision of the superintendent and upon such limitations as are
imposed by him.
(C) The conservator may:
(1) Give notice that he has taken possession of the assets of
the savings bank to all persons holding or having possession of
any assets of the savings bank;
(2) Do all things he considers desirable or expedient to
carry on the saving bank's business consistent with his
appointment, but he shall not declare, credit or distribute
earnings on savings accounts or deposits without the approval of
the superintendent;
(3) Bring or defend suits or proceedings in the name of the
savings bank under the direction and supervision of the
superintendent;
(4) Do such things and have such rights, powers, privileges,
immunities, and duties as the superintendent authorizes, directs,
confers, or imposes.
(D) This section does not vest title to any assets of the
savings bank in the conservator. No person, firm, corporation, or
association, knowing that a conservator has taken possession of
the business and property of a savings bank or having been so
notified, shall have a lien or charge against any of the assets of
the savings bank for any payment, advance, clearance, or liability
thereafter made or incurred. The obligations of the savings bank
shall continue to bear interest at the rate contracted.
(E) Any officer, director, member, or shareholder, from time
to time, may communicate with the superintendent regarding the
conservatorship. The conservator shall furnish bond in form and
amount as the superintendent may direct.
(F) The attorney general, as legal advisor to the division,
may employ special counsel to aid him with respect to any
litigation in which the conservator is involved on behalf of the
savings bank. The compensation of the special counsel shall be
fixed by the attorney general subject to the approval of the
court.
(G) Within thirty days after appointment of a conservator,
the savings bank may bring an action in the court of common pleas
of Franklin county, for an order that the superintendent remove
the conservator. Immediately upon filing the action, summons shall
be issued to the sheriff of Franklin county to be served on the
superintendent, returnable within five days from its date, which
in all other respects the summons shall be made as in civil
actions, whereupon the allegations of the petition shall be deemed
to stand denied without pleading and the cause shall be advanced
and heard without delay.
(H) The superintendent may terminate the conservatorship and
permit the savings bank to resume the transaction of its business,
subject to such terms and restrictions as he prescribes, when the
superintendent determines that the termination of the
conservatorship may be safely done and would be in the public
interest. In no case shall the superintendent terminate the
conservatorship and permit the savings bank to resume the
transaction of its business, unless the federal deposit insurance
corporation assures the superintendent that the savings bank, upon
resuming the transaction of its business, will have the status of
an insured depository institution. The superintendent may
terminate the conservatorship and take possession on any of the
grounds provided in section 1165.02 of the Revised Code.
(I) The conservator may submit a plan for the termination of
the conservatorship to the members or shareholders of the savings
banks. If the holders of a majority of the shares or a majority of
members vote to accept the plan, they shall elect directors to
manage the affairs of the savings bank.
When a plan for termination of the conservatorship has been
submitted to the members or shareholders of the savings bank, the
superintendent may require that the plan be submitted to the
court. He may require that not less than two weeks' notice of the
time and place of hearing on such application be given by
publication or otherwise, as the court directs, to depositors,
creditors, members, and shareholders of the savings bank.
(J) The expenses of the conservatorship and the compensation
of the conservator and the special counsel, if any, as provided in
this section, shall be paid out of the assets of the savings bank
and shall be a lien thereon prior to any other lien.
Sec. 1165.10. (A) If it appears to the superintendent of
financial institutions that any one or more of the conditions set
forth in section 1165.09 of the Revised Code exists as to any
savings bank, the superintendent may appoint a conservator, which
appointment may include the superintendent, and thereafter may
dismiss or replace the conservator as the superintendent
determines necessary or advisable. The superintendent may fix the
compensation to be paid the conservator and the amount of the bond
or other security, if any, to be required.
(B) The superintendent may, from time to time, appoint one or
more special deputy superintendents as agent or agents to assist
in the duties of conservatorship.
(C) The superintendent, any special deputy superintendents,
or a conservator may employ and procure whatever assistance or
advice is necessary in the conservatorship of the savings bank,
and, for that purpose, may retain officers or employees of the
savings bank as needed.
(D) The superintendent may terminate the conservatorship at
any time, and may appoint a receiver for liquidation of the
savings bank on any of the grounds provided in this chapter for
appointment of a receiver.
(E) All expenses of a conservatorship shall be paid out of
the assets of the savings bank, and shall be a lien on the bank's
assets, which lien shall be prior to any other lien.
Sec. 1165.11. (A) Upon the appointment of a conservator, the
superintendent of financial institutions shall file a certified
copy of the certificate of appointment in the office of the
secretary of state, and thereafter no person shall obtain a lien
or charge upon any assets of the savings bank for any payment,
advance, clearance, or liability thereafter made or incurred, nor
shall the directors, officers, or agents of the savings bank
thereafter have authority to act on behalf of the savings bank or
to convey, transfer, assign, pledge, mortgage, or encumber any of
the savings bank's assets.
(B) The filing of the certificate of appointment in
accordance with this section shall not be a condition to either
the superintendent's taking possession of the property and
business of a savings bank or appointing a conservator for a
savings bank.
Sec. 1165.12. (A) A conservator, under the supervision of
the superintendent of financial institutions and subject to any
limitations imposed by the superintendent, shall have all of the
following powers:
(1) To take possession of all books, records of account, and
assets of the savings bank;
(2) To have and exercise, in the name and on behalf of the
savings bank, all the rights, powers, and authority of the
officers and directors of the savings bank and all voting rights
of its shareholders;
(3) To collect all debts, claims, and judgments belonging to
the savings bank and to take any other action, including the
lending of money, necessary to the operation of the savings bank
during the conservatorship;
(4) To execute in the name of the savings bank any instrument
necessary or proper to effectuate the conservator's powers or
perform its duties as conservator;
(5) To initiate, pursue, compromise, and defend litigation
involving any right, claim, interest, or liability of the savings
bank;
(6) To exercise all fiduciary functions of the savings bank
as of the date of appointment as conservator;
(7) To borrow money as necessary in the operation of the
savings bank, and to secure those borrowings by the pledge or
mortgage of the assets of the savings bank;
(8) To abandon or convey title to any holder of a deed of
trust, mortgage, or similar lien against property in which the
savings bank has an interest, whenever the conservator determines
that continuing to claim that interest is burdensome and of no
advantage to the savings bank or its account holders, creditors,
or shareholders;
(9) If done within the ordinary course of business or
financial affairs of the savings bank and according to ordinary
business terms, to sell any and all assets, to compromise any
debt, claim, obligation, or judgment due to the savings bank, to
discontinue any pending action or other proceeding, and to
implement a restructuring of the savings bank in accordance with
this chapter.
(B) Title to any assets of the savings bank does not vest in
the conservator.
Sec. 1165.13. During the period of the conservatorship, all
of the following apply:
(A) The conservator may permit the savings bank to continue
to conduct its usual business, including the acceptance of
deposits.
(B) The obligations of the savings bank shall continue to
bear interest at the rate contracted.
(C) The conservator shall make whatever reports to the
superintendent of financial institutions the superintendent may
from time to time require.
Sec. 1165.14. (A) The conservator shall evaluate the
business and assets of the savings bank and, after conducting
whatever investigations the circumstances may require, shall
recommend to the superintendent of financial institutions that
either the conservatorship of the savings bank be terminated or
the superintendent appoint a receiver and the savings bank be
liquidated as otherwise provided in this chapter. The conservator
shall consult with the board of directors of the savings bank
before making the recommendation.
(B) The conservator of the savings bank may submit a plan to
the superintendent for approval to restructure the savings bank in
a manner designed to return the savings bank to the control of its
shareholders. As part of the plan, the conservator may take any
steps the superintendent approves regarding the management,
operations, or assets of the savings bank, including the sale of
some or all of the savings bank's assets. The conservator shall
consult with the board of directors of the savings bank regarding
any proposed sale of all or substantially all of the savings
bank's assets.
(C) The superintendent may require the conservator to submit
the plan to the shareholders of the savings bank as provided in
division (D) of this section or to submit a new or revised plan
for consideration by the superintendent.
(D) If the conservator's plan is submitted to the
shareholders pursuant to division (C) of this section, the
superintendent shall designate the contents of notice of the vote
that is to be forwarded from the conservator to the shareholders
and shall designate the date upon which notice is to be forwarded.
The date of the shareholder vote shall be determined by the
superintendent, but shall not occur earlier than seven days or
later than forty-five days after the date of the notice.
If the majority of the shareholders do not approve the plan,
the superintendent may request submission of a new plan or proceed
to appoint a receiver without regard to the grounds for
appointment of a receiver as otherwise provided in this chapter.
If the majority of the shareholders approve the plan, the
superintendent may terminate the conservatorship, and the
shareholders shall elect directors to manage the savings bank.
(E) The superintendent, at any time, including after the date
notice of a vote is provided to shareholders of the savings bank
under division (D) of this section, may revoke a previously
approved plan of the conservator and either provide for, or
request submission of, a new plan or proceed with receivership
under this chapter.
Sec. 1165.17. This chapter provides the full and exclusive
powers and procedures for the liquidation of savings banks under
the laws of this state, and no receiver or other liquidating agent
shall be appointed for that purpose except as expressly provided
in this chapter.
Sec. 1165.18. The superintendent of financial institutions
may take possession of the property and business of a savings bank
if the superintendent finds any one or more of the following
conditions:
(A) The savings bank is in an unsafe or unsound condition to
continue the business of banking.
(B) The savings bank is insolvent, in that it has ceased to
pay its debts in the ordinary course of business, it is incapable
of paying its debts as they mature, or it has liabilities in
excess of its assets.
(C) The savings bank has refused to submit its records or
affairs to the inspection or examination of any federal bank
regulatory agency or the superintendent.
(D) The savings bank has failed to pay its deposits or
obligations in accordance with the terms under which the deposits
were taken or the obligations were incurred.
(E) A majority of the board of directors of the savings bank
has requested the superintendent to appoint a receiver to take
possession of the savings bank for the benefit of account holders,
creditors, or shareholders.
(F) The savings bank has violated any order of a court or of
the superintendent, any statute, rule, or regulation, or its
articles of incorporation, and the superintendent determines the
continued control of its own affairs threatens injury to any of
the public, the banking industry, or the savings bank's depositors
or other creditors.
(G) The savings bank's status as an insured institution has
been terminated by the federal deposit insurance corporation.
(H) The savings bank has an impairment of paid-in capital.
Sec. 1165.19. (A) Upon issuing a written finding that any
one or more of the conditions set forth in section 1165.18 of the
Revised Code for taking possession of a savings bank exists and
taking possession of the savings bank, the superintendent of
financial institutions shall file a certified copy of the finding
and the notice of possession with the court.
(B) Upon the appointment of a receiver, the superintendent
shall file a certified copy of the certificate of appointment in
the office of the secretary of state and with the court.
(C) After the superintendent files the finding of the
superintendent or the certificate of appointment of the receiver,
whichever occurs first, no person shall obtain a lien or charge
upon any assets of the savings bank for any payment, advance,
clearance, or liability thereafter incurred, nor shall the
directors, officers, or agents of the savings bank have authority
to act on behalf of the savings bank or to convey, transfer,
assign, pledge, mortgage, or encumber any assets of the savings
bank.
(D) Upon taking possession of the savings bank, the
superintendent shall post or cause to be posted an appropriate
notice of closing at the main entrance of each of the savings
bank's banking offices.
(E) Neither filing nor posting of notice in accordance with
this section shall be a condition to either the superintendent's
taking possession of the property and business of a savings bank
or appointing a receiver for a savings bank.
Sec. 1165.20. (A) If it appears to the superintendent of
financial institutions that any one or more of the conditions set
forth in section 1165.18 of the Revised Code exists as to any
savings bank, the superintendent shall tender appointment as
receiver to the federal deposit insurance corporation if any
deposits in the savings bank are insured by the federal deposit
insurance corporation, and may tender appointment as receiver to
the federal deposit insurance corporation in any other case. Upon
acceptance of the appointment as receiver, the federal deposit
insurance corporation shall not be required to post a bond. In
addition to the powers of a receiver set forth in this chapter,
the federal deposit insurance corporation, as receiver, may
exercise any other liquidation or receivership powers authorized
by state or federal law for a receiver of a savings bank.
(B) If the federal deposit insurance corporation declines to
accept the tendered appointment or if the superintendent is not
required to tender appointment as receiver to the federal deposit
insurance corporation, the superintendent may appoint, and
thereafter dismiss or replace, any other receiver, including the
superintendent, the superintendent determines to be necessary or
advisable. The superintendent may fix the compensation to be paid
the receiver and the amount of the bond or other security, if any,
to be required.
(C) The superintendent may, from time to time, appoint one or
more special deputy superintendents as agent or agents to assist
in the duties of receivership or of liquidation and distribution.
No agent so appointed shall be subject to section 1181.05 of the
Revised Code.
(D) The superintendent, any special deputy superintendents,
or a receiver may employ and procure whatever assistance or advice
is necessary in the receivership or liquidation and distribution
of the assets of the savings bank, and, for that purpose, may
retain officers or employees of the savings bank as needed.
(E) All expenses of a receivership and liquidation shall be
paid out of the assets of the savings bank, and shall be a lien on
the savings bank's assets, which lien shall be prior to any other
lien.
Sec. 1165.21. Upon the superintendent of financial
institutions' appointment of a receiver, title to all of the
savings bank's assets shall vest in the receiver without the
execution of any instrument of conveyance, assignment, transfer,
or endorsement.
Sec. 1165.22. (A) A receiver shall have all of the following
powers:
(1) To take possession of all books, records of account, and
assets of the savings bank;
(2) To collect all debts, claims, and judgments belonging to
the savings bank and to take any other action, including the
lending of money, necessary to preserve and liquidate the assets
of the savings bank;
(3) To execute in the name of the bank any instrument
necessary or proper to effectuate the receiver's powers or perform
its duties as receiver;
(4) To initiate, pursue, compromise, and defend litigation
involving any right, claim, interest, or liability of the savings
bank;
(5) To exercise all fiduciary functions of the savings bank
as of the date of appointment as receiver;
(6) To borrow money as necessary in the liquidation of the
savings bank, and to secure those borrowings by the pledge or
mortgage of assets of the savings bank;
(7) To abandon or convey title to any holder of a deed of
trust, mortgage, or similar lien against property in which the
savings bank has an interest, whenever the receiver determines
that continuing to claim that interest is burdensome and of no
advantage to the savings bank or its account holders, creditors,
or shareholders;
(8) To sell any and all assets, to compromise any debt,
claim, obligation, or judgment due to the savings bank, to
discontinue any pending action or other proceeding, and to sell or
otherwise transfer all or a substantial portion of the assets or
liabilities of the savings bank;
(9) To establish ancillary receiverships in any jurisdiction
the receiver determines necessary;
(10) To distribute assets in accordance with this chapter;
(11) To take any other action incident to the powers set
forth in division (A) of this section.
(B) Unless specifically indicated to the contrary, the powers
conferred upon a receiver under this section may be exercised
without court approval. However, nothing in this section shall be
construed to prevent a receiver from obtaining court approval when
the receiver determines approval is appropriate under the
circumstances.
Sec. 1165.23. (A) The receiver shall promptly cause notice
of the claims procedure to be published once a month for two
consecutive months in a local newspaper of general circulation and
to be mailed to each person whose name appears as a creditor upon
the books of the savings bank, at the last address of record.
(B)(1) All parties having claims of any kind against the
savings bank, including prior judgments and claims of security,
preference, priority, and offset, shall present their claims
substantiated by legal proof to the receiver within one hundred
eighty days after the date of the first publication of notice of
the claims procedure or after actual receipt of notice of the
claims procedure, whichever occurs first.
(2) Within one hundred eighty days after receipt of a claim,
the receiver shall notify the claimant in writing whether the
claim has been allowed or disallowed. The receiver may reject any
claim in whole or in part, or may reject any claim of security,
preference, priority, or offset against the savings bank. Any
claimant whose claim has been rejected by the receiver shall
petition the court for a hearing on the claim within sixty days
after the date the notice was mailed or be forever barred from
asserting the rejected claim.
(C) Any claims filed after the claim period and subsequently
accepted by the receiver or allowed by the court, shall be
entitled to share in the distribution of assets only to the extent
of the undistributed assets in the hands of the receiver on the
date the claims are accepted or allowed.
Sec. 1165.24. (A) All claims against the savings bank's
estate and expenses, proved to the receiver's satisfaction or
approved by the court, shall be paid in the following order:
(1) Expenses of liquidation and receivership, including money
borrowed under authority of division (A)(6) of section 1165.22 or
division (A)(7) of section 1165.12 of the Revised Code and
interest on it, and claims for fees and assessments due the
superintendent of financial institutions;
(2) Claims given priorities under other provisions of state
or federal law;
(3) Wages and salaries of officers and employees earned
during the one-month period preceding the date of the savings
bank's closing in an amount, before applicable taxes and other
withholdings, that does not exceed one thousand dollars for any
one person;
(4) Deposit obligations;
(5) Other general liabilities;
(6) Obligations subordinated to deposits and other general
liabilities.
(B) Interest shall be given the same priority as the claim on
which it is based, but no interest shall be paid on any claim
until the principal of all claims within the same class has been
paid or provided for in full.
(C) Any funds remaining after satisfying the requirements of
divisions (A) and (B) of this section shall be paid to the
shareholders.
(D) Payment on claims shall be made pro rata among claims of
the kind specified in each class set forth in division (A) of this
section.
(E) Subject to the approval of the court, the receiver may
designate a separate class of claims consisting only of every
unsecured claim that is less than, or reduced to, an amount the
court approves for payment as reasonable and necessary for
administrative convenience.
(F) Subject to the approval of the court, the receiver may
make periodic and interim liquidating dividends or payments.
Sec. 1165.25. (A) Within one hundred days after the date of
the closing of a savings bank, a receiver may reject any executory
contract to which the savings bank is a party without any further
liability on the part of the savings bank or the receiver. The
receiver's election to reject an executory contract creates no
claim for compensation other than compensation accrued to the date
of termination or for actual damages.
(B) A receiver may ratify and assign any executory contract
to which the savings bank is a party notwithstanding the existence
of a provision in the contract permitting the termination of the
executory contract, or prohibiting, conditioning, or requiring
consent to any assignment of the executory contract, upon the
insolvency of the savings bank or the appointment of a receiver.
Sec. 1165.26. Whenever the federal deposit insurance
corporation pays or makes available for payment the insured
deposit liabilities of a savings bank, the federal deposit
insurance corporation, whether or not it acts as receiver, shall
be subrogated to the extent of the payments to all rights of
depositors against the savings bank.
Sec. 1165.27. (A) The receiver may appoint a successor to
all rights, obligations, assets, deposits, agreements, and trusts
held by the closed savings bank as trustee, administrator,
executor, guardian, agent, or in any other fiduciary or
representative capacity. The successor's duties and obligations
commence upon appointment to the same extent they are binding upon
the former savings bank and as though the successor had originally
assumed the duties and obligations. Specifically, the successor
shall succeed to and be entitled to administer all trusteeships,
administrations, executorships, guardianships, agencies, and all
other fiduciary or representative proceedings to which the closed
savings bank is named or appointed in wills, whenever probated, or
to which it is appointed by any other instrument, court order, or
operation of law.
(B) Within sixty days after appointment, the successor shall
give written notice, insofar as practicable, to all interested
parties named in the books and records of the savings bank or in
trust documents held by it, that the successor has been appointed
in accordance with state law.
(C) Nothing in this section shall be construed to impair any
right of the grantor or beneficiaries of trust assets to secure
the appointment of a substituted trustee or manager.
Sec. 1165.28. (A) The filing with the court of the finding
of the superintendent of financial institutions or the certificate
of appointment of the receiver, whichever occurs first, operates
as an automatic stay from the date of the filing, subject to the
court granting a motion for relief from the stay, applicable to
all entities, of both of the following:
(1) The commencement or continuation, including the issuance
or employment of process, of a judicial, administrative, or other
action or proceeding against the savings bank that was or could
have been commenced before the filing;
(2) The enforcement against the savings bank of a judgment or
other claim obtained before the filing, including claims of
security, preference, priority, and offset.
(B) Upon the filing with the court of the finding of the
superintendent or the certificate of appointment of the receiver,
whichever occurs first, any other pending judicial,
administrative, or other action or proceeding against the savings
bank shall, upon motion of the receiver, be consolidated into one
action or transferred as a separate matter before the presiding
judge of the court having jurisdiction of the receivership,
subject, however, to the automatic stay provided in division (A)
of this section. Subject to the receiver's option to have an
action later consolidated or transferred, any action commenced
after the superintendent's filing shall be filed as a separate
matter before the presiding judge in the court having jurisdiction
over the receivership.
(C) The superintendent, prior to the appointment of a
receiver, or the receiver, after its appointment, shall be the
only party named in an action involving a savings bank subject to
this chapter.
(D) Any action seeking to enjoin the superintendent's order
appointing a receiver of a savings bank shall be brought prior to
the date the receiver sells all or substantially all of the assets
of the savings bank, prior to the date the receiver transfers all
or substantially all of the insured deposits to an assuming
institution, or within ten days after the issuance of the order,
whichever is earliest.
Sec. 1165.29. (A) When a receiver has completed the
liquidation of a savings bank, the receiver shall, with notice to
the superintendent of financial institutions, petition the court
for an order declaring the savings bank properly wound up and
dissolved.
(B) After whatever notice and hearing, if any, the court may
direct, the court may make an order declaring the savings bank
properly wound up and dissolved. The order shall do both of the
following, to the extent applicable:
(1) Declare all of the following:
(a) The savings bank has been properly wound up.
(b) All known assets of the savings bank have been
distributed according to the distribution priorities set forth in
this chapter.
(c) The savings bank is dissolved.
(2) If there are known debts or liabilities, describe the
provision made for their payment, setting forth whatever
information may be necessary to enable the creditor or other
person to whom payment is to be made to appear and claim payment
of the debt or liability.
(C) The order shall confirm a plan by the receiver for the
disposition or maintenance of any remaining real or personal
property or other assets, whether held in trust or otherwise and
including the contents of safe deposit boxes or vaults, held by
the savings bank for its account holders, creditors, lessees, or
shareholders. The plan shall include written notice to all known
owners or beneficiaries of the assets, to be sent by first class
mail to each individual's address as shown on the records of the
savings bank.
(D) The court may make whatever additional orders and grant
whatever further relief it determines proper upon the evidence
submitted.
(E) Once the order is made declaring the savings bank
dissolved, the corporate existence of the savings bank shall
cease, except for purposes of any necessary additional winding up.
(F) Once the order is made declaring the savings bank
dissolved, the receiver shall promptly file a copy of the order,
certified by the clerk of the court, with both the secretary of
state and the superintendent.
Sec. 1165.30. Subject to the approval of the court, the
receiver may destroy the records of the savings bank after the
receiver determines there is no further need for them. However,
the receiver shall not destroy the records earlier than six months
after the date the savings bank is declared dissolved by the
court.
Sec. 1165.33. (A) No damages may be awarded in a proceeding
brought pursuant to this chapter challenging any action by the
superintendent of financial institutions, special deputy
superintendent, receiver, or conservator, or any employee of any
of them, or any person retained for services under this chapter.
Any action for damages shall be brought in the court as a separate
action.
(B) The superintendent, special deputy superintendent,
receiver, conservator, or any employee of any of them, or any
person retained for services under this chapter, is not subject to
any civil liability or penalty, or to any criminal prosecution,
for any error in judgment or discretion made in good faith in any
action taken or omitted in an official capacity under this
chapter.
(C) The superintendent, special deputy superintendent,
receiver, conservator, or any employee of any of them, or any
person retained for services under this chapter, is not liable in
damages for any action or failure to act unless it is proved by
clear and convincing evidence in court that the action or failure
to act involved an act or omission undertaken with deliberate
intent to cause injury to any of the savings bank, its
shareholders, its depositors, or its creditors, or undertaken with
reckless disregard for the best interests of any of the savings
bank, its shareholders, its depositors, its creditors, or the
public.
Sec. 5301.057. (A) As used in this section:
(1) "Environmental covenant" means a servitude that imposes
activity and use limitations on real property and meets the
requirements of section 5301.82 of the Revised Code.
(2) "Transfer" means the sale, gift, conveyance, assignment,
inheritance, or other transfer of an ownership interest in real
property located in this state.
(3) "Transfer fee" means a fee or charge required by a
transfer fee covenant and payable upon the transfer of an interest
in real property, or payable for the right to make or accept such
a transfer, regardless of whether the fee or charge is a fixed
amount or is determined as a percentage of the value of the
property, the purchase price, or other consideration given for the
transfer. The following are not transfer fees for purposes of this
section:
(a) Any consideration payable by the grantee to the grantor
for the interest in real property being transferred. For the
purposes of division (A)(3)(a) of this section, an interest in
real property includes a separate mineral estate and its
appurtenant surface access rights.
(b) Any commission payable to a licensed real estate broker
for the transfer of real property pursuant to an agreement between
the broker and the grantor or the grantee, including any
subsequent additional commission for that transfer payable by the
grantor or the grantee based upon any subsequent appreciation,
development, or sale of real property;
(c) Any interest, charges, fees, or other amounts payable by
a borrower to a lender pursuant to a loan secured by a mortgage
against real property;
(d) Any rent, reimbursement, charge, fee, or other amount
payable by a lessee to a lessor under a lease;
(e) Any consideration payable to the holder of an option to
purchase an interest in real property or the holder of a right of
first refusal or first offer to purchase an interest in real
property for waiving, releasing, or not exercising the option or
right upon the transfer of the property to another person;
(f) Any tax, fee, charge, assessment, fine, or other amount
payable to or imposed by a governmental authority;
(g) Any fee, charge, assessment, fine, or other amount
payable to a homeowners, condominium, cooperative, mobile home, or
property owners association pursuant to a declaration or covenant
or law applicable to the association;
(h) Any payment required pursuant to an environmental
covenant.
(4) "Transfer fee covenant" means a declaration or covenant
recorded against the title to real property that requires or
purports to require the payment of a transfer fee to the declarant
or other person specified in the declaration or covenant or to
their successors or assigns upon a subsequent transfer of an
interest in the real property.
(B) A transfer fee covenant recorded in this state on or
after the effective date of this section does not run with the
title to real property and is not binding on or enforceable
against any subsequent owner, purchaser, or mortgagee of any
interest in real property as an equitable servitude or otherwise.
(C) Any lien purporting to secure the payment of a transfer
fee under a transfer fee covenant that is recorded in this state
on or after the effective date of this section is void.
Sec. 5307.11. If no election party elects to take the estate
is made, at the instance insistence of a party, the court of
common pleas may order a sale of the estate at public auction, by
the one of the following:
(A) The sheriff who executed the writ of partition, or his
the sheriff's successor in office;
(B) An auctioneer who is licensed under Chapter 4707. of the
Revised Code and who is qualified under section 4707.021 of the
Revised Code to conduct an auction of real property.
Sec. 5307.12. (A) A sale of an estate under section 5307.11
of the Revised Code shall be made at as follows:
(1) If the sale is made by a sheriff, the sale shall be made
at the door of the courthouse, unless for good cause the court of
common pleas directs it to be made on the premises. The sale shall
be conducted as upon execution, except that it is unnecessary to
appraise the estate; but it.
(2) If the sale is made by a licensed auctioneer, the sale
shall be made pursuant to Chapter 4707. of the Revised Code.
(B) No property shall not be sold for less than two thirds of
the value returned by the commissioner or commissioners. Unless by
special order, on good cause shown, the court directs the entire
payment to be made in cash, the purchase money shall be payable
one third on the day of sale, one third in one year after the
sale, and one third in two years after the sale, with interest.
Sec. 5307.13. On the sheriff's return of his the proceedings
to sell the estate, the court of common pleas shall examine them.
If a sale has been made, and the court approves it, the sheriff
shall execute and deliver a deed to the purchaser on receiving
payment of the consideration money, or taking sufficient security
therefor for that payment, to the satisfaction of the court.
Sec. 5307.14. The (A) Subject to division (B) of this
section, the money or securities arising from a sale of, or an
election to take an estate, shall be distributed and paid, by
order of the court of common pleas, to the parties entitled
thereto to the money or securities, in lieu of their respective
parts and proportions of the estate, according to their rights
therein in the estate. All
(B) When a sale is made by a licensed auctioneer, the
auctioneer shall receive compensation and reimbursement for
expenses as described in section 2335.021 of the Revised Code,
that the court shall apportion as costs to the parties as the
court finds reasonable and proper.
(C) All receipts of such money or securities by the sheriff
arising from a sale or election are in his the sheriff's official
capacity, and his the sureties on his the sheriff's official bond
are liable for any misapplication thereof of those receipts.
Sec. 5307.16. When a conveyance of If an officer or
auctioneer has not conveyed land sold, or elected to be taken in a
proceeding for partition, is not made by the officer who made the
sale, the court of common pleas on being first satisfied that such
sale or election was regularly made, and that the purchase money
is has been fully paid or secured, on motion, may order the
sheriff of the county, or officer performing the duties of
sheriff, to execute and deliver to the purchaser, or person
electing to take the property, a deed therefor for the property.
SECTION 2. That existing sections 119.01, 1125.19, 1125.28,
1157.01, 1165.01, 5307.11, 5307.12, 5307.13, 5307.14, and 5307.16
and sections 1157.02, 1157.03, 1157.04, 1157.05, 1157.06, 1157.07,
1157.08, 1157.09, 1157.10, 1157.11, 1157.12, 1157.13, 1157.14,
1157.15, 1157.16, 1157.17, 1157.18, 1157.19, 1157.20, 1157.21,
1157.22, 1157.23, 1157.24, 1157.25, 1157.26, 1157.27, 1157.28,
1157.29, 1165.02, 1165.03, 1165.04, 1165.05, 1165.06, 1165.07,
1165.08, 1165.09, 1165.10, 1165.11, 1165.12, 1165.13, 1165.14,
1165.15, 1165.16, 1165.17, 1165.18, 1165.19, 1165.20, 1165.21,
1165.22, 1165.23, 1165.24, 1165.25, 1165.26, 1165.27, 1165.28, and
1165.29 of the Revised Code are hereby repealed.
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