To amend sections 1151.23 and 1161.29 and to enact sections 1109.051, 1109.052, 1151.232, 1151.233, 1161.291, 1161.292, 1733.245, and 1733.246 of the Revised Code to limit overdraft fees chargeable by financial institutions and to establish certain requirements for overdraft protection services.

Section 1. That sections 1151.23 and 1161.29 be amended and sections 1109.051, 1109.052, 1151.232, 1151.233, 1161.291, 1161.292, 1733.245, and 1733.246 of the Revised Code be enacted to read as follows:

Sec. 1109.051.  A bank may charge an account holder a fee, not to exceed five dollars per transaction, for any check or other debit transaction authorized by the account holder, for which there are insufficient funds in the specified account.

Sec. 1109.052. (A) A bank may extend secured or unsecured credit in the form of overdraft privileges related to deposits provided that the extension of credit complies with this section.

(B) No fee may be imposed for any extension of funds by a bank to cover any check or other debit for which there are insufficient funds in the consumer's account to pay such check or other debit, unless all of the following conditions are met:

(1) The consumer has provided specific written consent to any program or service that provides for charging of such fees in connection with any such extension of funds.

(2) The fee is imposed pursuant to the terms of a written agreement with the consumer which discloses all of the following in a clear and conspicuous manner:

(a) The amount of any fee imposed in connection with paying an overdraft;

(b) Any applicable disclosure required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1601, et seq.;

(c) The categories of transactions for which a fee for payment of an overdraft may be imposed, including whether an overdraft created by withdrawals at automated teller machines or other electronic fund transfers will be covered and a fee imposed;

(d) The time period by which the consumer must repay or cover any extension of credit in the form of payment of an overdraft;

(e) The circumstances under which the bank in which an account is held will not pay an overdraft;

(f) Any other information that the superintendent of financial institutions may require by rule to be disclosed.

(3) The fee is separately and conspicuously disclosed, each time the fee is imposed, in any periodic statement provided to the consumer with respect to such account and is included in the calculation of the annual percentage rate as required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1606.

(C) The written agreement described in division (B) of this section shall include a clear and conspicuous disclosure of any specific circumstances under which a bank will not extend funds to cover an overdraft in any transaction account of a consumer, or under which the bank reserves the right to extend funds to pay any such overdraft on a discretionary basis. No bank shall represent that the bank will extend credit to cover all overdrafts on an account.

Sec. 1151.23.  (A) A savings and loan association may permit withdrawal of deposits upon such terms as it provides.

(B) A savings and loan association may permit withdrawals by negotiable order of withdrawal as authorized in the "Consumer Checking Account Equity Act of 1980," 94 Stat. 146, 12 U.S.C.A. 1832(a), and any amendments or regulations promulgated pursuant thereto. An association may extend secured or unsecured credit in the form of overdraft privileges related to deposits subject to withdrawal under divisions (A) and (B) of this section.

Sec. 1151.232. A savings and loan association may charge an account holder a fee, not to exceed five dollars per transaction, for any check or other debit transaction authorized by the account holder, for which there are insufficient funds in the specified account.

Sec. 1151.233. (A) A savings and loan association may extend secured or unsecured credit in the form of overdraft privileges related to deposits provided that the extension of credit complies with this section.

(B) No fee may be imposed for any extension of funds by the association to cover any check or other debit for which there are insufficient funds in the consumer's account to pay such check or other debit, unless all of the following conditions are met:

(1) The consumer has provided specific written consent to any program or service that provides for charging of such fees in connection with any such extension of funds.

(2) The fee is imposed pursuant to the terms of a written agreement with the consumer which discloses all of the following in a clear and conspicuous manner:

(a) The amount of any fee imposed in connection with paying an overdraft;

(b) Any applicable disclosure required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1601, et seq.;

(c) The categories of transactions for which a fee for payment of an overdraft may be imposed, including whether an overdraft created by withdrawals at automated teller machines or other electronic fund transfers will be covered and a fee imposed;

(d) The time period by which the consumer must repay or cover any extension of credit in the form of payment of an overdraft;

(e) The circumstances under which the association in which an account is held will not pay an overdraft;

(f) Any other information that the superintendent of financial institutions may require by rule to be disclosed.

(3) The fee is separately and conspicuously disclosed, each time the fee is imposed, in any periodic statement provided to the consumer with respect to such account and is included in the calculation of the annual percentage rate as required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1606.

(C) The written agreement described in division (B) of this section shall include a clear and conspicuous disclosure of any specific circumstances under which an association will not extend funds to cover an overdraft in any transaction account of a consumer, or under which the association reserves the right to extend funds to pay any such overdraft on a discretionary basis. No association shall represent that the association will extend credit to cover all overdrafts on an account.

Sec. 1161.29.  (A) A savings bank may permit withdrawal of deposits upon such terms as it provides.

(B) A savings bank may extend secured or unsecured credit in the form of overdraft privileges related to deposits subject to withdrawal under division (A) of this section.

Sec. 1161.291. A savings bank may charge an account holder a fee, not to exceed five dollars per transaction, for any check or other debit transaction authorized by the account holder, for which there are insufficient funds in the specified account.

Sec. 1161.292. (A) A savings bank may extend secured or unsecured credit in the form of overdraft privileges related to deposits provided that the extension of credit complies with this section.

(B) No fee may be imposed for any extension of funds by a savings bank to cover any check or other debit for which there are insufficient funds in the consumer's account to pay such check or other debit, unless all of the following conditions are met:

(1) The consumer has provided specific written consent to any program or service that provides for charging of such fees in connection with any such extension of funds.

(2) The fee is imposed pursuant to the terms of a written agreement with the consumer which discloses all of the following in a clear and conspicuous manner:

(a) The amount of any fee imposed in connection with paying an overdraft;

(b) Any applicable disclosure required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1601, et seq.;

(c) The categories of transactions for which a fee for payment of an overdraft may be imposed, including whether an overdraft created by withdrawals at automated teller machines or other electronic fund transfers will be covered and a fee imposed;

(d) The time period by which the consumer must repay or cover any extension of credit in the form of payment of an overdraft;

(e) The circumstances under which the savings bank in which an account is held will not pay an overdraft;

(f) Any other information that the superintendent of financial institutions may require by rule to be disclosed.

(3) The fee is separately and conspicuously disclosed, each time the fee is imposed, in any periodic statement provided to the consumer with respect to such account and is included in the calculation of the annual percentage rate as required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1606.

(C) The written agreement described in division (B) of this section shall include a clear and conspicuous disclosure of any specific circumstances under which a savings bank will not extend funds to cover an overdraft in any transaction account of a consumer, or under which the savings bank reserves the right to extend funds to pay any such overdraft on a discretionary basis. No savings bank shall represent that the bank will extend credit to cover all overdrafts on an account.

Sec. 1733.245. A credit union may charge an account holder a fee, not to exceed five dollars per transaction, for any check or other debit transaction authorized by the account holder, for which there are insufficient funds in the specified account.

Sec. 1733.246. (A) A credit union may extend secured or unsecured credit in the form of overdraft privileges related to deposits provided that the extension of credit complies with this section.

(B) No fee may be imposed for any extension of funds by a credit union to cover any check or other debit for which there are insufficient funds in the consumer's account to pay such check or other debit, unless all of the following conditions are met:

(1) The consumer has provided specific written consent to any program or service that provides for charging of such fees in connection with any such extension of funds.

(2) The fee is imposed pursuant to the terms of a written agreement with the consumer which discloses all of the following in a clear and conspicuous manner:

(a) The amount of any fee imposed in connection with paying an overdraft;

(b) Any applicable disclosure required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1601, et seq.;

(c) The categories of transactions for which a fee for payment of an overdraft may be imposed, including whether an overdraft created by withdrawals at automated teller machines or other electronic fund transfers will be covered and a fee imposed;

(d) The time period by which the consumer must repay or cover any extension of credit in the form of payment of an overdraft;

(e) The circumstances under which the credit union in which an account is held will not pay an overdraft;

(f) Any other information that the superintendent of financial institutions may require by rule to be disclosed.

(3) The fee is separately and conspicuously disclosed, each time the fee is imposed, in any periodic statement provided to the consumer with respect to such account and is included in the calculation of the annual percentage rate as required by the "Truth in Lending Act," 82 Stat. 146 (1974), 15 U.S.C. 1606.

(C) The written agreement described in division (B) of this section shall include a clear and conspicuous disclosure of any specific circumstances under which the credit union will not extend funds to cover an overdraft in any transaction account of a consumer, or under which the credit union reserves the right to extend funds to pay any such overdraft on a discretionary basis. No credit union shall represent that the credit union will extend credit to cover all overdrafts on an account.

Section 2. That existing sections 1151.23 and 1161.29 of the Revised Code are hereby repealed.