| Section 1. That sections 122.60, 122.71, 135.03, 135.032, | 13 |
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135.04, 135.06, 135.08, 135.10, 135.14, 135.144, 135.18, 135.32, | 14 |
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135.321, 135.33, 135.35, 135.353, 135.37, 135.51, 135.52, 135.53, | 15 |
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1733.04, 1733.041, 1733.24, 1733.30, and 1733.31 be amended and | 16 |
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sections 135.011, 135.031, and 135.322 of the Revised Code be | 17 |
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enacted to read as follows: | 18 |
| (C) "Eligible business" means a for-profit business entity, | 27 |
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or a nonprofit entity, that had total annual sales in its most | 28 |
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recently completed fiscal year of less than ten million dollars | 29 |
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and that has a principal place of for-profit business or nonprofit | 30 |
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entity activity within the state, the operation of which, alone or | 31 |
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in conjunction with other facilities, will create new jobs or | 32 |
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preserve existing jobs and employment opportunities and will | 33 |
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improve the economic welfare of the people of the state. As used | 34 |
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in this division, "new jobs" does not include existing jobs | 35 |
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transferred from another facility within the state, and "existing | 36 |
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jobs" means only existing jobs at facilities within the same | 37 |
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municipal corporation or township in which the project, activity, | 38 |
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or enterprise that is the subject of a capital access loan is | 39 |
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located. | 40 |
| (B) "Project" means any real or personal property connected | 76 |
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with or being a part of an industrial, distribution, commercial, | 77 |
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or research facility to be acquired, constructed, reconstructed, | 78 |
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enlarged, improved, furnished, or equipped, or any combination | 79 |
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thereof, with the aid provided under sections 122.71 to 122.83 of | 80 |
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the Revised Code, for industrial, commercial, distribution, and | 81 |
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research development of the state. | 82 |
| (E)(1) "Minority business enterprise" means an individual who | 91 |
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is a United States citizen and owns and controls a business, or a | 92 |
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partnership, corporation, or joint venture of any kind that is | 93 |
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owned and controlled by United States citizens, which citizen or | 94 |
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citizens are residents of this state and are members of one of the | 95 |
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following economically disadvantaged groups: Blacks or African | 96 |
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Americans, American Indians, Hispanics or Latinos, and Asians. | 97 |
| (2) "Owned and controlled" means that at least fifty-one per | 98 |
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cent of the business, including corporate stock if a corporation, | 99 |
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is owned by persons who belong to one or more of the groups set | 100 |
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forth in division (E)(1) of this section, and that those owners | 101 |
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have control over the management and day-to-day operations of the | 102 |
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business and an interest in the capital, assets, and profits and | 103 |
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losses of the business proportionate to their percentage of | 104 |
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ownership. In order to qualify as a minority business enterprise, | 105 |
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a business shall have been owned and controlled by those persons | 106 |
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at least one year prior to being awarded a contract pursuant to | 107 |
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this section. | 108 |
| (K) "Community development corporation" means a corporation | 124 |
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organized under Chapter 1702. of the Revised Code that consists of | 125 |
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residents of the community and business and civic leaders and that | 126 |
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has as a principal purpose one or more of the following: the | 127 |
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revitalization and development of a low- to moderate-income | 128 |
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neighborhood or community; the creation of jobs for low- to | 129 |
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moderate-income residents; the development of commercial | 130 |
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facilities and services; providing training, technical assistance, | 131 |
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and financial assistance to small businesses; and planning, | 132 |
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developing, or managing low-income housing or other community | 133 |
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development activities. | 134 |
| Sec. 135.03. (A) Any national bank, any bank doing business | 137 |
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under authority granted by the superintendent of financial | 138 |
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institutions, or any bank doing business under authority granted | 139 |
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by the regulatory authority of another state of the United States, | 140 |
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located in this state, is eligible to become a public depository, | 141 |
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subject to sections 135.01 to 135.21 of the Revised Code. No bank | 142 |
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shall receive or have on deposit at any one time public moneys, | 143 |
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including public moneys as defined in section 135.31 of the | 144 |
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Revised Code, in an aggregate amount in excess of thirty per cent | 145 |
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of its total assets, as shown in its latest report to the | 146 |
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comptroller of the currency, the superintendent of financial | 147 |
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institutions, the federal deposit insurance corporation, or the | 148 |
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board of governors of the federal reserve system. | 149 |
| (B) Any federal savings association, any savings and loan | 150 |
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association or savings bank doing business under authority granted | 151 |
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by the superintendent of financial institutions, or any savings | 152 |
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and loan association or savings bank doing business under | 153 |
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authority granted by the regulatory authority of another state of | 154 |
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the United States, located in this state, and authorized to accept | 155 |
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deposits is eligible to become a public depository, subject to | 156 |
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sections 135.01 to 135.21 of the Revised Code. No savings | 157 |
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association, savings and loan association, or savings bank shall | 158 |
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receive or have on deposit at any one time public moneys, | 159 |
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including public moneys as defined in section 135.31 of the | 160 |
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Revised Code, in an aggregate amount in excess of thirty per cent | 161 |
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of its total assets, as shown in its latest report to the office | 162 |
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of thrift supervision, the superintendent of financial | 163 |
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institutions, the federal deposit insurance corporation, or the | 164 |
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board of governors of the federal reserve system. | 165 |
| (C) Any federal credit union, any foreign credit union | 166 |
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licensed pursuant to section 1733.39 of the Revised Code, or any | 167 |
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credit union as defined in section 1733.01 of the Revised Code, | 168 |
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located in this state, is eligible to become a public depository, | 169 |
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subject to sections 135.01 to 135.21 of the Revised Code. No | 170 |
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credit union shall receive or have on deposit at any one time | 171 |
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public moneys, including public moneys as defined in section | 172 |
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135.31 of the Revised Code, in an aggregate amount in excess of | 173 |
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thirty per cent of its total assets, as shown in its latest report | 174 |
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to the superintendent of financial institutions or the national | 175 |
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credit union administration. | 176 |
| (B) To facilitate the clearance of state warrants to the | 225 |
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state treasury, the state board of deposit may delegate the | 226 |
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authority to the treasurer of state to establish warrant clearance | 227 |
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accounts in any institution mentioned in section 135.03 of the | 228 |
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Revised Code located in areas where the volume of warrant | 229 |
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clearances justifies the establishment of an account as determined | 230 |
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by the treasurer of state. The balances maintained in such warrant | 231 |
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clearance accounts shall be at sufficient levels to cover the | 232 |
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activity generated by such accounts on an individual basis. Any | 233 |
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financial institution in the state that has a warrant clearance | 234 |
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account established by the treasurer of state shall, not more than | 235 |
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ten days after the close of each quarter, prepare and transmit to | 236 |
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the treasurer of state an analysis statement of such account for | 237 |
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the quarter then ended. Such statement shall contain such | 238 |
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information as determined by the state board of deposit, and this | 239 |
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information shall be used in whole or in part by the treasurer of | 240 |
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state in determining the level of balances to be maintained in | 241 |
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such accounts. | 242 |
| (C) Each governing board shall award the active deposits of | 243 |
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public moneys subject to its control to the eligible institutions | 244 |
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in accordance with this section, except that no such public | 245 |
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depository shall thereby be required to take or permitted to | 246 |
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receive and have at any one time a greater amount of active | 247 |
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deposits of such public moneys than that specified in the | 248 |
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application of such depository. When, by reason of such limitation | 249 |
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or otherwise, the amount of active public moneys deposited or to | 250 |
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be deposited in a public depository, pursuant to an award made | 251 |
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under this section, is reduced or withdrawn, as the case requires, | 252 |
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the amount of such reduction or the sum so withdrawn shall be | 253 |
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deposited in another eligible institution applying therefor, or if | 254 |
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there is no such eligible institution, then the amount so withheld | 255 |
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or withdrawn shall be awarded or deposited for the remainder of | 256 |
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the period of designation in accordance with sections 135.01 to | 257 |
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135.21 of the Revised Code. | 258 |
| (D) Any institution mentioned in section 135.03 of the | 259 |
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Revised Code is eligible to become a public depository of the | 260 |
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inactive and interim deposits of public moneys of a subdivision. | 261 |
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In case the aggregate amount of inactive or interim deposits | 262 |
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applied for by such eligible institutions is less than the | 263 |
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aggregate maximum amount of such inactive or interim deposits as | 264 |
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estimated to be deposited pursuant to sections 135.01 to 135.21 of | 265 |
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the Revised Code, the governing board of the subdivision may | 266 |
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designate as a public depository of the inactive or interim | 267 |
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deposits of the public moneys thereof, one or more institutions of | 268 |
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a kind mentioned in section 135.03 of the Revised Code, subject to | 269 |
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the requirements of sections 135.01 to 135.21 of the Revised Code. | 270 |
| (E) Any institution mentioned in section 135.03 of the | 271 |
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Revised Code is eligible to become a public depository of the | 272 |
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active deposits of public moneys of a subdivision. In case the | 273 |
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aggregate amount of active deposits of the public moneys of the | 274 |
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subdivision applied for by such eligible institutions is less than | 275 |
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the aggregate maximum amount to be deposited as such, as estimated | 276 |
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by the governing board, said board may designate as a public | 277 |
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depository of the active deposits of the public moneys of the | 278 |
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subdivision, one or more institutions of the kind mentioned in | 279 |
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section 135.03 of the Revised Code, subject to the requirements of | 280 |
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sections 135.01 to 135.21 of the Revised Code. | 281 |
| (F)(1) The governing board of the state or of a subdivision | 282 |
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may designate one or more minority banks or minority credit unions | 283 |
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as public depositories of its inactive, interim, or active | 284 |
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deposits of public moneys designated as federal funds. Except for | 285 |
section 135.18 or 135.181 of the Revised Code, Chapter 135. of the | 286 |
Revised Codethis chapter does not apply to the application for, | 287 |
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or the award of, such deposits. As used in this division, | 288 |
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"minority bank" or "minority credit union" means, as applicable, a | 289 |
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bank
or credit union operating in this state that is owned or | 290 |
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controlled by one or more socially or economically disadvantaged | 291 |
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persons. Such disadvantage may arise from cultural, ethnic, or | 292 |
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racial background, chronic economic circumstances, or other | 293 |
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similar cause. Such persons include, but are not limited to, | 294 |
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Afro-Americans, Puerto Ricans, Spanish-speaking Americans, and | 295 |
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American Indians. | 296 |
| (d) This division contains safeguards for the protection of | 306 |
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the general public and the banking industry, since it provides the | 307 |
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governing board of the state or political subdivision with | 308 |
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permissive authority in the award of deposits; limits the | 309 |
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authority of the governing board to the award of federal funds; | 310 |
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and subjects minority banks and minority credit unions to certain | 311 |
limitations of Chapter 135. of the Revised Codethis chapter, | 312 |
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including the requirement that, as in the case of every financial | 313 |
institution subject to Chapter 135. of the Revised Codethis | 314 |
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chapter, a minority bank or minority credit union pledge certain | 315 |
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securities for repayment of the deposits. | 316 |
| Sec. 135.06. Each eligible institution desiring to be a | 331 |
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public depository of the inactive deposits of the public moneys of | 332 |
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the state or of the inactive deposits of the public moneys of the | 333 |
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subdivision shall, not more than thirty days prior to the date | 334 |
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fixed by section 135.12 of the Revised Code for the designation of | 335 |
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such public depositories, make application therefor in writing to | 336 |
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the proper governing board. Such application shall specify the | 337 |
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maximum amount of such public moneys which the applicant desires | 338 |
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to receive and have on deposit as an inactive deposit at any one | 339 |
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time during the period covered by the designation, provided that | 340 |
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it shall not apply for more than thirty per cent of its total | 341 |
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assets as revealed by its latest report to the superintendent of | 342 |
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financial institutions, the comptroller of the currency, the | 343 |
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office of thrift supervision, the federal deposit insurance | 344 |
corporation, or the board of governors of the federal reserve | 345 |
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system, or the national credit union administration and the rate | 346 |
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of interest which the applicant will pay thereon, subject to the | 347 |
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limitations of sections 135.01 to 135.21 of the Revised Code. Each | 348 |
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application shall be accompanied by a financial statement of the | 349 |
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applicant, under oath of its cashier, treasurer, or other officer, | 350 |
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in such detail as to show the capital funds of the applicant, as | 351 |
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of the date of its latest report to the superintendent of | 352 |
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financial institutions, the comptroller of the currency, the | 353 |
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office of thrift supervision, the federal deposit insurance | 354 |
corporation, or the board of governors of the federal reserve | 355 |
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system, or the national credit union administration and adjusted | 356 |
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to show any changes therein made prior to the date of the | 357 |
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application. Such application may be combined with an application | 358 |
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for designation as a public depository of active deposits, interim | 359 |
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deposits, or both. | 360 |
| Sec. 135.08. Each eligible institution desiring to be a | 361 |
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public depository of interim deposits of the public moneys of the | 362 |
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state or of the interim deposits of the public moneys of the | 363 |
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subdivision shall, not more than thirty days prior to the date | 364 |
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fixed by section 135.12 of the Revised Code for the designation of | 365 |
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public depositories, make application therefor in writing to the | 366 |
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proper governing board. Such application shall specify the maximum | 367 |
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amount of such public moneys which the applicant desires to | 368 |
|
receive and have on deposit as interim deposits at any one time | 369 |
|
during the period covered by the designation, provided that it | 370 |
|
shall not apply for more than thirty per cent of its total assets | 371 |
|
as revealed by its latest report to the superintendent of | 372 |
|
financial institutions, the comptroller of the currency, the | 373 |
|
office of thrift supervision, the federal deposit insurance | 374 |
corporation, or the board of governors of the federal reserve | 375 |
|
system, or the national credit union administration and the rate | 376 |
|
of interest which the applicant will pay thereon, subject to the | 377 |
|
limitations of sections 135.01 to 135.21 of the Revised Code. | 378 |
| Each application shall be accompanied by a financial | 379 |
|
statement of the applicant, under oath of its cashier, treasurer, | 380 |
|
or other officer, in such detail as to show the capital funds of | 381 |
|
the applicant, as of the date of its latest report to the | 382 |
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superintendent of financial institutions, the comptroller of the | 383 |
|
currency, the office of thrift supervision, the federal deposit | 384 |
insurance corporation, or the board of governors of the federal | 385 |
|
reserve system, or the national credit union administration and | 386 |
|
adjusted to show any changes therein made prior to the date of the | 387 |
|
application. Such application may be combined with an application | 388 |
|
for designation as a public depository of inactive deposits, | 389 |
|
active deposits, or both. | 390 |
| Sec. 135.10. Each eligible institution desiring to be a | 391 |
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public depository of the active deposits of the public moneys of | 392 |
|
the state or of a subdivision shall, not more than thirty days | 393 |
|
prior to the date fixed by section 135.12 of the Revised Code for | 394 |
|
the designation of such public depositories, make application | 395 |
|
therefor in writing to the proper governing board. If desired, | 396 |
|
such application may specify the maximum amount of such public | 397 |
|
moneys which the applicant desires to receive and have on deposit | 398 |
|
at any one time during the period covered by the designation. Each | 399 |
|
application shall be accompanied by a financial statement of the | 400 |
|
applicant, under oath of its cashier, treasurer, or other officer, | 401 |
|
in such detail as to show the capital funds of the applicant, as | 402 |
of the date of its latest report to the superintendent of banks or | 403 |
| financial institutions, the comptroller of the currency, the | 404 |
|
office of thrift supervision, or the national credit union | 405 |
|
administration and adjusted to show any changes therein prior to | 406 |
|
the date of the application. Such application may be combined with | 407 |
|
an application for designation as a public depository of inactive | 408 |
|
deposits, interim deposits, or both. | 409 |
| (2) Bonds, notes, debentures, or any other obligations or | 429 |
|
securities issued by any federal government agency or | 430 |
|
instrumentality, including but not limited to, the federal | 431 |
|
national mortgage association, federal home loan bank, federal | 432 |
|
farm credit bank, federal home loan mortgage corporation, | 433 |
|
government national mortgage association, and student loan | 434 |
|
marketing association. All federal agency securities shall be | 435 |
|
direct issuances of federal government agencies or | 436 |
|
instrumentalities. | 437 |
| (3) Interim deposits in the eligible institutions applying | 438 |
|
for interim moneys as provided in section 135.08 of the Revised | 439 |
|
Code. The award of interim deposits shall be made in accordance | 440 |
|
with section 135.09 of the Revised Code and the treasurer or the | 441 |
|
governing board shall determine the periods for which such interim | 442 |
|
deposits are to be made and shall award such interim deposits for | 443 |
|
such periods, provided that any eligible institution receiving an | 444 |
|
interim deposit award may, upon notification that the award has | 445 |
|
been made, decline to accept the interim deposit in which event | 446 |
|
the award shall be made as though the institution had not applied | 447 |
|
for such interim deposit. | 448 |
| (C) Nothing in the classifications of eligible obligations | 486 |
|
set forth in divisions (B)(1) to (7) of this section shall be | 487 |
|
construed to authorize any investment in a derivative, and no | 488 |
|
treasurer or governing board shall invest in a derivative. For | 489 |
|
purposes of this division, "derivative" means a financial | 490 |
|
instrument or contract or obligation whose value or return is | 491 |
|
based upon or linked to another asset or index, or both, separate | 492 |
|
from the financial instrument, contract, or obligation itself. Any | 493 |
|
security, obligation, trust account, or other instrument that is | 494 |
|
created from an issue of the United States treasury or is created | 495 |
|
from an obligation of a federal agency or instrumentality or is | 496 |
|
created from both is considered a derivative instrument. An | 497 |
|
eligible investment described in this section with a variable | 498 |
|
interest rate payment, based upon a single interest payment or | 499 |
|
single index comprised of other eligible investments provided for | 500 |
|
in division (B)(1) or (2) of this section, is not a derivative, | 501 |
|
provided that such variable rate investment has a maximum maturity | 502 |
|
of two years. | 503 |
| (E) The treasurer or governing board may also enter into a | 508 |
|
written repurchase agreement with any eligible institution | 509 |
|
mentioned in section 135.03 of the Revised Code or any eligible | 510 |
|
dealer pursuant to division (M) of this section, under the terms | 511 |
|
of which agreement the treasurer or governing board purchases, and | 512 |
|
such institution or dealer agrees unconditionally to repurchase | 513 |
|
any of the securities listed in divisions (B)(1) to (5), except | 514 |
|
letters of credit described in division (B)(2), of section 135.18 | 515 |
|
of the Revised Code. The market value of securities subject to an | 516 |
|
overnight written repurchase agreement must exceed the principal | 517 |
|
value of the overnight written repurchase agreement by at least | 518 |
|
two per cent. A written repurchase agreement shall not exceed | 519 |
|
thirty days and the market value of securities subject to a | 520 |
|
written repurchase agreement must exceed the principal value of | 521 |
|
the written repurchase agreement by at least two per cent and be | 522 |
|
marked to market daily. All securities purchased pursuant to this | 523 |
|
division shall be delivered into the custody of the treasurer or | 524 |
|
governing board or an agent designated by the treasurer or | 525 |
|
governing board. A written repurchase agreement with an eligible | 526 |
|
securities dealer shall be transacted on a delivery versus payment | 527 |
|
basis. The agreement shall contain the requirement that for each | 528 |
|
transaction pursuant to the agreement the participating | 529 |
|
institution or dealer shall provide all of the following | 530 |
|
information: | 531 |
| (I) Whenever, during a period of designation, the treasurer | 567 |
|
classifies public moneys as interim moneys, the treasurer shall | 568 |
|
notify the governing board of such action. The notification shall | 569 |
|
be given within thirty days after such classification and in the | 570 |
|
event the governing board does not concur in such classification | 571 |
|
or in the investments or deposits made under this section, the | 572 |
|
governing board may order the treasurer to sell or liquidate any | 573 |
|
of such investments or deposits, and any such order shall | 574 |
|
specifically describe the investments or deposits and fix the date | 575 |
|
upon which they are to be sold or liquidated. Investments or | 576 |
|
deposits so ordered to be sold or liquidated shall be sold or | 577 |
|
liquidated for cash by the treasurer on the date fixed in such | 578 |
|
order at the then current market price. Neither the treasurer nor | 579 |
|
the members of the board shall be held accountable for any loss | 580 |
|
occasioned by sales or liquidations of investments or deposits at | 581 |
|
prices lower than their cost. Any loss or expense incurred in | 582 |
|
making such sales or liquidations is payable as other expenses of | 583 |
|
the treasurer's office. | 584 |
| (K) The treasurer is responsible for the safekeeping of all | 592 |
|
documents evidencing a deposit or investment acquired by the | 593 |
|
treasurer under this section. Any securities may be deposited for | 594 |
|
safekeeping with a qualified trustee as provided in section 135.18 | 595 |
|
of the Revised Code, except the delivery of securities acquired | 596 |
|
under any repurchase agreement under this section shall be made to | 597 |
|
a qualified trustee, provided, however, that the qualified trustee | 598 |
|
shall be required to report to the treasurer, governing board, | 599 |
|
auditor of state, or an authorized outside auditor at any time | 600 |
|
upon request as to the identity, market value, and location of the | 601 |
|
document evidencing each security, and that if the participating | 602 |
|
institution is a designated depository of the subdivision for the | 603 |
|
current period of designation, the securities that are the subject | 604 |
|
of the repurchase agreement may be delivered to the treasurer or | 605 |
|
held in trust by the participating institution on behalf of the | 606 |
|
subdivision. Interest earned on any investments or deposits | 607 |
|
authorized by this section shall be collected by the treasurer and | 608 |
|
credited by the treasurer to the proper fund of the subdivision. | 609 |
| Upon the expiration of the term of office of a treasurer or | 610 |
|
in the event of a vacancy in the office of treasurer by reason of | 611 |
|
death, resignation, removal from office, or otherwise, the | 612 |
|
treasurer or the treasurer's legal representative shall transfer | 613 |
|
and deliver to the treasurer's successor all documents evidencing | 614 |
|
a deposit or investment held by the treasurer. For the investments | 615 |
|
and deposits so transferred and delivered, such treasurer shall be | 616 |
|
credited with and the treasurer's successor shall be charged with | 617 |
|
the amount of money held in such investments and deposits. | 618 |
| (M)(1) All investments, except for investments in securities | 625 |
|
described in divisions (B)(5) and (6) of this section and for | 626 |
|
investments by a municipal corporation in the issues of such | 627 |
|
municipal corporation, shall be made only through a member of the | 628 |
|
national association of securities dealers, through a bank, | 629 |
savings bank,
or savings and loan association, or credit union | 630 |
|
regulated by the superintendent of financial institutions, or | 631 |
|
through an institution regulated by the comptroller of the | 632 |
currency, the federal deposit insurance corporation, orthe board | 633 |
|
of governors of the federal reserve system, or the national credit | 634 |
|
union administration. | 635 |
| (N) In making investments authorized by this section, a | 643 |
|
treasurer or governing board may retain the services of an | 644 |
|
investment advisor, provided the advisor is licensed by the | 645 |
|
division of securities under section 1707.141 of the Revised Code | 646 |
|
or is registered with the securities and exchange commission, and | 647 |
|
possesses experience in public funds investment management, | 648 |
|
specifically in the area of state and local government investment | 649 |
|
portfolios, or the advisor is an eligible institution mentioned in | 650 |
|
section 135.03 of the Revised Code. | 651 |
| (O)(1) Except as otherwise provided in divisions (O)(2) and | 652 |
|
(3) of this section, no treasurer or governing board shall make an | 653 |
|
investment or deposit under this section, unless there is on file | 654 |
|
with the auditor of state a written investment policy approved by | 655 |
|
the treasurer or governing board. The policy shall require that | 656 |
|
all entities conducting investment business with the treasurer or | 657 |
|
governing board shall sign the investment policy of that | 658 |
|
subdivision. All brokers, dealers, and financial institutions, | 659 |
|
described in division (M)(1) of this section, initiating | 660 |
|
transactions with the treasurer or governing board by giving | 661 |
|
advice or making investment recommendations shall sign the | 662 |
|
treasurer's or governing board's investment policy thereby | 663 |
|
acknowledging their agreement to abide by the policy's contents. | 664 |
|
All brokers, dealers, and financial institutions, described in | 665 |
|
division (M)(1) of this section, executing transactions initiated | 666 |
|
by the treasurer or governing board, having read the policy's | 667 |
|
contents, shall sign the investment policy thereby acknowledging | 668 |
|
their comprehension and receipt. | 669 |
| (P) A treasurer or governing board may enter into a written | 686 |
|
investment or deposit agreement that includes a provision under | 687 |
|
which the parties agree to submit to nonbinding arbitration to | 688 |
|
settle any controversy that may arise out of the agreement, | 689 |
|
including any controversy pertaining to losses of public moneys | 690 |
|
resulting from investment or deposit. The arbitration provision | 691 |
|
shall be set forth entirely in the agreement, and the agreement | 692 |
|
shall include a conspicuous notice to the parties that any party | 693 |
|
to the arbitration may apply to the court of common pleas of the | 694 |
|
county in which the arbitration was held for an order to vacate, | 695 |
|
modify, or correct the award. Any such party may also apply to the | 696 |
|
court for an order to change venue to a court of common pleas | 697 |
|
located more than one hundred miles from the county in which the | 698 |
|
treasurer or governing board is located. | 699 |
| (Q) An investment made by the treasurer or governing board | 706 |
|
pursuant to this section prior to September 27, 1996, that was a | 707 |
|
legal investment under the law as it existed before September 27, | 708 |
|
1996, may be held until maturity, or if the investment does not | 709 |
|
have a maturity date, it may be held until five years from | 710 |
|
September 27, 1996, regardless of whether the investment would | 711 |
|
qualify as a legal investment under the terms of this section as | 712 |
|
amended. | 713 |
| (2) For the treasurer of state or the treasurer or governing | 725 |
|
board of the political subdivision depositing the interim moneys | 726 |
|
pursuant to division (A)(1) of this section, the eligible public | 727 |
|
depository selected pursuant to that division invests the interim | 728 |
|
moneys in certificates of deposit of one or more federally insured | 729 |
|
banks, savings banks, or savings and loan associations, or credit | 730 |
|
unions insured pursuant to section 1733.041 of the Revised Code, | 731 |
|
wherever located. The full amount of principal and any accrued | 732 |
|
interest of each certificate of deposit invested in pursuant to | 733 |
|
division (A)(2) of this section shall be insured by federal | 734 |
|
deposit insurance, or by the national credit union administration | 735 |
|
or a credit union share guaranty corporation as defined in section | 736 |
|
1761.01 of the Revised Code, as applicable. | 737 |
| Sec. 135.18. (A) The treasurer, before making the initial | 758 |
|
deposit in a public depository pursuant to an award made under | 759 |
|
sections 135.01 to 135.21 of the Revised Code, except as provided | 760 |
|
in section 135.144 or 135.145 of the Revised Code, shall require | 761 |
|
the institution designated as a public depository to pledge to and | 762 |
|
deposit with the treasurer, as security for the repayment of all | 763 |
|
public moneys to be deposited in the public depository during the | 764 |
|
period of designation pursuant to the award, eligible securities | 765 |
|
of aggregate market value equal to the excess of the amount of | 766 |
|
public moneys to be at the time so deposited, over and above the | 767 |
|
portion or amount of such moneys as is at that time insured by the | 768 |
federal deposit insurance corporation or by, any other agency or | 769 |
|
instrumentality of the federal government, or a credit union share | 770 |
|
guaranty corporation as defined in section 1761.01 of the Revised | 771 |
|
Code. In the case of any deposit other than the initial deposit | 772 |
|
made during the period of designation, the amount of the aggregate | 773 |
|
market value of securities required to be pledged and deposited | 774 |
|
shall be equal to the difference between the amount of public | 775 |
|
moneys on deposit in such public depository plus the amount to be | 776 |
|
so deposited, minus the portion or amount of the aggregate as is | 777 |
|
at the time insured as provided in this section. The treasurer may | 778 |
|
require additional eligible securities to be deposited to provide | 779 |
|
for any depreciation which may occur in the market value of any of | 780 |
|
the securities so deposited. | 781 |
| (2) Bonds, notes, debentures, letters of credit, or other | 791 |
|
obligations or securities issued by any federal government agency | 792 |
|
or instrumentality, or the export-import bank of Washington; | 793 |
|
bonds, notes, or other obligations guaranteed as to principal and | 794 |
|
interest by the United States or those for which the faith of the | 795 |
|
United States is pledged for the payment of principal and interest | 796 |
|
thereon, by interpretation or otherwise and not by language | 797 |
|
appearing in the instrument specifically providing such guarantee | 798 |
|
or pledge; | 799 |
| (11) Bonds or other obligations of any county, municipal | 829 |
|
corporation, or other legally constituted taxing subdivision of | 830 |
|
another state of the United States, or of any instrumentality of | 831 |
|
such county, municipal corporation, or other taxing subdivision, | 832 |
|
for which the full faith and credit of the issuer is pledged and, | 833 |
|
at the time of purchase of the bonds or other obligations, rated | 834 |
|
in one of the two highest categories by at least one nationally | 835 |
|
recognized standard rating service. | 836 |
| (C) If the public depository fails to pay over any part of | 837 |
|
the public deposit made therein as provided by law, the treasurer | 838 |
|
shall sell at public sale any of the bonds or other securities | 839 |
|
deposited with the treasurer pursuant to this section or section | 840 |
|
131.09 of the Revised Code, or shall draw on any letter of credit | 841 |
|
to the extent of the failure to pay. Thirty days' notice of the | 842 |
|
sale shall be given in a newspaper of general circulation at | 843 |
|
Columbus, in the case of the treasurer of state, and at the county | 844 |
|
seat of the county in which the office of the treasurer is | 845 |
|
located, in the case of any other treasurer. When a sale of bonds | 846 |
|
or other securities has been so made and upon payment to the | 847 |
|
treasurer of the purchase money, the treasurer shall transfer such | 848 |
|
bonds or securities whereupon the absolute ownership of such bonds | 849 |
|
or securities shall pass to the purchasers. Any surplus remaining | 850 |
|
after deducting the amount due the state or subdivision and | 851 |
|
expenses of sale shall be paid to the public depository. | 852 |
| (D) An institution designated as a public depository may, by | 853 |
|
written notice to the treasurer, designate a qualified trustee and | 854 |
|
deposit the eligible securities required by this section with the | 855 |
|
trustee for safekeeping for the account of the treasurer and the | 856 |
|
institution as a public depository, as their respective rights to | 857 |
|
and interests in such securities under this section may appear and | 858 |
|
be asserted by written notice to or demand upon the trustee. In | 859 |
|
which case, the treasurer shall accept the written receipt of the | 860 |
|
trustee describing the securities that have been deposited with | 861 |
|
the trustee by the public depository, a copy of which shall also | 862 |
|
be delivered to the public depository. Thereupon all securities so | 863 |
|
deposited with the trustee are deemed to be pledged with the | 864 |
|
treasurer and to be deposited with the treasurer, for all the | 865 |
|
purposes of this section. | 866 |
| (F) When the public depository has deposited eligible | 872 |
|
securities described in division (B)(1) of this section with a | 873 |
|
trustee for safekeeping, the public depository may at any time | 874 |
|
substitute or exchange eligible securities described in division | 875 |
|
(B)(1) of this section having a current market value equal to or | 876 |
|
greater than the current market value of the securities then on | 877 |
|
deposit and for which they are to be substituted or exchanged, | 878 |
|
without specific authorization from any governing board, boards, | 879 |
|
or treasurer of any such substitution or exchange. | 880 |
| (1) The treasurer has authorized the public depository to | 890 |
|
make such substitution or exchange on a continuing basis during a | 891 |
|
specified period without prior approval of each substitution or | 892 |
|
exchange. The authorization may be effected by the treasurer | 893 |
|
sending to the trustee a written notice stating that substitution | 894 |
|
may be effected on a continuing basis during a specified period | 895 |
|
which shall not extend beyond the end of the period of designation | 896 |
|
during which the notice is given. The trustee may rely upon this | 897 |
|
notice and upon the period of authorization stated therein and | 898 |
|
upon the period of designation stated therein. | 899 |
| (2) No continuing authorization for substitution has been | 900 |
|
given by the treasurer, the public depository notifies the | 901 |
|
treasurer and the trustee of an intended substitution or exchange, | 902 |
|
and the treasurer fails to object to the trustee as to the | 903 |
|
eligibility or market value of the securities being substituted | 904 |
|
within ten calendar days after the date appearing on the notice of | 905 |
|
proposed substitution. The notice to the treasurer and to the | 906 |
|
trustee shall be given in writing and delivered personally or by | 907 |
|
certified or registered mail with a return receipt requested. The | 908 |
|
trustee may assume in any case that the notice has been delivered | 909 |
|
to the treasurer. In order for objections of the treasurer to be | 910 |
|
effective, receipt of the objections must be acknowledged in | 911 |
|
writing by the trustee. | 912 |
| (I) Any federal reserve bank or branch thereof located in | 920 |
|
this state or federal home loan bank, without compliance with | 921 |
|
Chapter 1111. of the Revised Code and without becoming subject to | 922 |
|
any other law of this state relative to the exercise by | 923 |
|
corporations of trust powers generally, is qualified to act as | 924 |
|
trustee for the safekeeping of securities, under this section. Any | 925 |
|
institution mentioned in section 135.03 of the Revised Code that | 926 |
|
holds a certificate of qualification issued by the superintendent | 927 |
|
of financial institutions or any institution complying with | 928 |
|
sections 1111.04, 1111.05, and 1111.06 of the Revised Code, is | 929 |
|
qualified to act as trustee for the safekeeping of securities, | 930 |
|
other than those belonging to itself, under this section. Upon | 931 |
|
application to the superintendent in writing by an institution, | 932 |
|
the superintendent shall investigate the applicant and ascertain | 933 |
|
whether or not it has been authorized to execute and accept trusts | 934 |
|
in this state and has safe and adequate vaults and efficient | 935 |
|
supervision thereof for the storage and safekeeping within this | 936 |
|
state of securities. If the superintendent finds that the | 937 |
|
applicant has been so authorized and has such vaults and | 938 |
|
supervision thereof, the superintendent shall approve the | 939 |
|
application and issue a certificate to that effect, the original | 940 |
|
or any certified copy of which shall be conclusive evidence that | 941 |
|
the institution therein named is qualified to act as trustee for | 942 |
|
the purposes of this section with respect to securities other than | 943 |
|
those belonging to itself. | 944 |
| Any charges or compensation of a designated trustee for | 952 |
|
acting as such under this section shall be paid by the public | 953 |
|
depository and in no event shall be chargeable to the state or the | 954 |
|
subdivision or to the treasurer or to any officer of the state or | 955 |
|
subdivision. The charges or compensation shall not be a lien or | 956 |
|
charge upon the securities deposited for safekeeping prior or | 957 |
|
superior to the rights to and interests in the securities of the | 958 |
|
state or the subdivision or of the treasurer. The treasurer and | 959 |
|
the treasurer's bonders or surety shall be relieved from any | 960 |
|
liability to the state or the subdivision or to the public | 961 |
|
depository for the loss or destruction of any securities deposited | 962 |
|
with a qualified trustee pursuant to this section. | 963 |
| Sec. 135.32. (A) Any national bank, any bank doing business | 964 |
|
under authority granted by the superintendent of financial | 965 |
|
institutions, or any bank doing business under authority granted | 966 |
|
by the regulatory authority of another state of the United States, | 967 |
|
located in this state, is eligible to become a public depository, | 968 |
|
subject to sections 135.31 to 135.40 of the Revised Code. No bank | 969 |
|
shall receive or have on deposit at any one time public moneys, | 970 |
|
including public moneys as defined in section 135.01 of the | 971 |
|
Revised Code, in an aggregate amount in excess of thirty per cent | 972 |
|
of its total assets, as shown in its latest report to the | 973 |
|
comptroller of the currency, the superintendent of financial | 974 |
|
institutions, the federal deposit insurance corporation, or the | 975 |
|
board of governors of the federal reserve system. | 976 |
| (B) Any federal savings association, any savings and loan | 977 |
|
association or savings bank doing business under authority granted | 978 |
|
by the superintendent of financial institutions, or any savings | 979 |
|
and loan association or savings bank doing business under | 980 |
|
authority granted by the regulatory authority of another state of | 981 |
|
the United States, located in this state, and authorized to accept | 982 |
|
deposits is eligible to become a public depository, subject to | 983 |
|
sections 135.31 to 135.40 of the Revised Code. No savings | 984 |
|
association, savings and loan association, or savings bank shall | 985 |
|
receive or have on deposit at any one time public moneys, | 986 |
|
including public moneys as defined in section 135.01 of the | 987 |
|
Revised Code, in an aggregate amount in excess of thirty per cent | 988 |
|
of its total assets, as shown in its latest report to the office | 989 |
|
of thrift supervision, the superintendent of financial | 990 |
|
institutions, the federal deposit insurance corporation, or the | 991 |
|
board of governors of the federal reserve system. | 992 |
| (C) Any federal credit union, any foreign credit union | 993 |
|
licensed pursuant to section 1733.39 of the Revised Code, or any | 994 |
|
credit union as defined in section 1733.01 of the Revised Code, | 995 |
|
located in this state, is eligible to become a public depository, | 996 |
|
subject to sections 135.31 to 135.40 of the Revised Code. No | 997 |
|
credit union shall receive or have on deposit at any one time | 998 |
|
public moneys, including public moneys as defined in section | 999 |
|
135.01 of the Revised Code, in an aggregate amount in excess of | 1000 |
|
thirty per cent of its total assets, as shown in its latest report | 1001 |
|
to the superintendent of financial institutions or the national | 1002 |
|
credit union administration. | 1003 |
| At least sixty days before the meeting, the county treasurer | 1050 |
|
shall submit to the board an estimate of the aggregate amount of | 1051 |
|
public moneys that might be available for deposit as active moneys | 1052 |
|
at any one time during the next four-year period. Upon receipt of | 1053 |
|
such estimate, the board shall immediately notify all eligible | 1054 |
|
institutions that might desire to be designated as such public | 1055 |
|
depositories of the date on which the designation is to be made; | 1056 |
|
the amount that has been estimated to be available for deposit; | 1057 |
|
and the date fixed as the last date on which applications may be | 1058 |
|
submitted, that shall not be more than thirty days or less than | 1059 |
|
ten days prior to the date set for the meeting designating public | 1060 |
|
depositories. | 1061 |
| (B) Any eligible institution described in division (A) or (C) | 1062 |
|
of section 135.32 of the Revised Code that has an office located | 1063 |
|
within the territorial limits of the county is eligible to become | 1064 |
|
a public depository of the active moneys of the county. Each | 1065 |
|
eligible institution desiring to be a public depository of such | 1066 |
|
active moneys shall, not more than thirty days or less than ten | 1067 |
|
days prior to the date fixed by this section, make application | 1068 |
therefortherefore in writing to the board of county | 1069 |
|
commissioners. The application may specify the maximum amount of | 1070 |
|
such public moneys that the applicant desires to receive and have | 1071 |
|
on deposit at any time during the period covered by the | 1072 |
|
designation. Each application shall be accompanied by a financial | 1073 |
|
statement of the applicant, under oath of its cashier, treasurer, | 1074 |
|
or other officer as of the date of its latest report to the | 1075 |
superintendent of
banks orfinancial institutions, the comptroller | 1076 |
|
of the currency, or the national credit union administration and | 1077 |
|
adjusted to show any changes therein prior to the date of the | 1078 |
|
application, that shall include a statement of its public and | 1079 |
|
nonpublic deposits. | 1080 |
| (C) The board of county commissioners, upon recommendation of | 1081 |
|
the treasurer, shall designate, by resolution, one or more | 1082 |
|
eligible institutions as public depositories for active moneys. In | 1083 |
|
case the aggregate amount of active moneys applied for by | 1084 |
|
institutions within the county is less than the amount estimated | 1085 |
|
to be available for deposit, the board may designate as a public | 1086 |
|
depository one or more eligible institutions that are conveniently | 1087 |
|
located. The original resolution of designation shall be certified | 1088 |
|
to the treasurer and any institution designated as a public | 1089 |
|
depository. | 1090 |
| (2) Bonds, notes, debentures, or any other obligations or | 1133 |
|
securities issued by any federal government agency or | 1134 |
|
instrumentality, including, but not limited to, the federal | 1135 |
|
national mortgage association, federal home loan bank, federal | 1136 |
|
farm credit bank, federal home loan mortgage corporation, | 1137 |
|
government national mortgage association, and student loan | 1138 |
|
marketing association. All federal agency securities shall be | 1139 |
|
direct issuances of federal government agencies or | 1140 |
|
instrumentalities. | 1141 |
| The investing authority shall invest under division (A)(11) | 1224 |
|
of this section in a debt interest issued by a foreign nation only | 1225 |
|
if the debt interest is backed by the full faith and credit of | 1226 |
|
that foreign nation, there is no prior history of default, and the | 1227 |
|
debt interest matures not later than five years after purchase. | 1228 |
|
For purposes of division (A)(11) of this section, a debt interest | 1229 |
|
is rated in the three highest categories by two nationally | 1230 |
|
recognized standard rating services if either the debt interest | 1231 |
|
itself or the issuer of the debt interest is rated, or is | 1232 |
|
implicitly rated, at the time of purchase in the three highest | 1233 |
|
categories by two nationally recognized standard rating services. | 1234 |
| (B) Nothing in the classifications of eligible obligations | 1243 |
|
and securities set forth in divisions (A)(1) to (11) of this | 1244 |
|
section shall be construed to authorize investment in a | 1245 |
|
derivative, and no investing authority shall invest any county | 1246 |
|
inactive moneys or any moneys in a county public library fund in a | 1247 |
|
derivative. For purposes of this division, "derivative" means a | 1248 |
|
financial instrument or contract or obligation whose value or | 1249 |
|
return is based upon or linked to another asset or index, or both, | 1250 |
|
separate from the financial instrument, contract, or obligation | 1251 |
|
itself. Any security, obligation, trust account, or other | 1252 |
|
instrument that is created from an issue of the United States | 1253 |
|
treasury or is created from an obligation of a federal agency or | 1254 |
|
instrumentality or is created from both is considered a derivative | 1255 |
|
instrument. An eligible investment described in this section with | 1256 |
|
a variable interest rate payment, based upon a single interest | 1257 |
|
payment or single index comprised of other eligible investments | 1258 |
|
provided for in division (A)(1) or (2) of this section, is not a | 1259 |
|
derivative, provided that such variable rate investment has a | 1260 |
|
maximum maturity of two years. A treasury inflation-protected | 1261 |
|
security shall not be considered a derivative, provided the | 1262 |
|
security matures not later than five years after purchase. | 1263 |
| (D) The investing authority may also enter into a written | 1271 |
|
repurchase agreement with any eligible institution mentioned in | 1272 |
|
section 135.32 of the Revised Code or any eligible securities | 1273 |
|
dealer pursuant to division (J) of this section, under the terms | 1274 |
|
of which agreement the investing authority purchases and the | 1275 |
|
eligible institution or dealer agrees unconditionally to | 1276 |
|
repurchase any of the securities listed in divisions (B)(1) to | 1277 |
|
(5), except letters of credit described in division (B)(2), of | 1278 |
|
section 135.18 of the Revised Code. The market value of securities | 1279 |
|
subject to an overnight written repurchase agreement must exceed | 1280 |
|
the principal value of the overnight written repurchase agreement | 1281 |
|
by at least two per cent. A written repurchase agreement must | 1282 |
|
exceed the principal value of the overnight written repurchase | 1283 |
|
agreement, by at least two per cent. A written repurchase | 1284 |
|
agreement shall not exceed thirty days, and the market value of | 1285 |
|
securities subject to a written repurchase agreement must exceed | 1286 |
|
the principal value of the written repurchase agreement by at | 1287 |
|
least two per cent and be marked to market daily. All securities | 1288 |
|
purchased pursuant to this division shall be delivered into the | 1289 |
|
custody of the investing authority or the qualified custodian of | 1290 |
|
the investing authority or an agent designated by the investing | 1291 |
|
authority. A written repurchase agreement with an eligible | 1292 |
|
securities dealer shall be transacted on a delivery versus payment | 1293 |
|
basis. The agreement shall contain the requirement that for each | 1294 |
|
transaction pursuant to the agreement the participating | 1295 |
|
institution shall provide all of the following information: | 1296 |
| (F) No investing authority shall pay a county's inactive | 1312 |
|
moneys or moneys of a county public library fund into a fund | 1313 |
|
established by another subdivision, treasurer, governing board, or | 1314 |
|
investing authority, if that fund was established by the | 1315 |
|
subdivision, treasurer, governing board, or investing authority | 1316 |
|
for the purpose of investing or depositing the public moneys of | 1317 |
|
other subdivisions. This division does not apply to the payment of | 1318 |
|
public moneys into either of the following: | 1319 |
| (I) The investing authority shall be responsible for the | 1342 |
|
safekeeping of all documents evidencing a deposit or investment | 1343 |
|
acquired under this section, including, but not limited to, | 1344 |
|
safekeeping receipts evidencing securities deposited with a | 1345 |
|
qualified trustee, as provided in section 135.37 of the Revised | 1346 |
|
Code, and documents confirming the purchase of securities under | 1347 |
|
any repurchase agreement under this section shall be deposited | 1348 |
|
with a qualified trustee, provided, however, that the qualified | 1349 |
|
trustee shall be required to report to the investing authority, | 1350 |
|
auditor of state, or an authorized outside auditor at any time | 1351 |
|
upon request as to the identity, market value, and location of the | 1352 |
|
document evidencing each security, and that if the participating | 1353 |
|
institution is a designated depository of the county for the | 1354 |
|
current period of designation, the securities that are the subject | 1355 |
|
of the repurchase agreement may be delivered to the treasurer or | 1356 |
|
held in trust by the participating institution on behalf of the | 1357 |
|
investing authority. | 1358 |
| Upon the expiration of the term of office of an investing | 1359 |
|
authority or in the event of a vacancy in the office for any | 1360 |
|
reason, the officer or the officer's legal representative shall | 1361 |
|
transfer and deliver to the officer's successor all documents | 1362 |
|
mentioned in this division for which the officer has been | 1363 |
|
responsible for safekeeping. For all such documents transferred | 1364 |
|
and delivered, the officer shall be credited with, and the | 1365 |
|
officer's successor shall be charged with, the amount of moneys | 1366 |
|
evidenced by such documents. | 1367 |
| (J)(1) All investments, except for investments in securities | 1368 |
|
described in divisions (A)(5), (6), and (12) of this section, | 1369 |
|
shall be made only through a member of the national association of | 1370 |
securities dealers, through a bank, savings bank, or savings and | 1371 |
|
loan association, or credit union regulated by the superintendent | 1372 |
|
of financial institutions, or through an institution regulated by | 1373 |
|
the comptroller of the currency, the federal deposit insurance | 1374 |
corporation, orthe board of governors of the federal reserve | 1375 |
|
system, or the national credit union administration. | 1376 |
| (K)(1) Except as otherwise provided in division (K)(2) of | 1384 |
|
this section, no investing authority shall make an investment or | 1385 |
|
deposit under this section, unless there is on file with the | 1386 |
|
auditor of state a written investment policy approved by the | 1387 |
|
investing authority. The policy shall require that all entities | 1388 |
|
conducting investment business with the investing authority shall | 1389 |
|
sign the investment policy of that investing authority. All | 1390 |
|
brokers, dealers, and financial institutions, described in | 1391 |
|
division (J)(1) of this section, initiating transactions with the | 1392 |
|
investing authority by giving advice or making investment | 1393 |
|
recommendations shall sign the investing authority's investment | 1394 |
|
policy thereby acknowledging their agreement to abide by the | 1395 |
|
policy's contents. All brokers, dealers, and financial | 1396 |
|
institutions, described in division (J)(1) of this section, | 1397 |
|
executing transactions initiated by the investing authority, | 1398 |
|
having read the policy's contents, shall sign the investment | 1399 |
|
policy thereby acknowledging their comprehension and receipt. | 1400 |
| (2) If a written investment policy described in division | 1401 |
|
(K)(1) of this section is not filed on behalf of the county with | 1402 |
|
the auditor of state, the investing authority of that county shall | 1403 |
|
invest the county's inactive moneys and moneys of the county | 1404 |
|
public library fund only in time certificates of deposits or | 1405 |
|
savings or deposit accounts pursuant to division (A)(3) of this | 1406 |
|
section, no-load money market mutual funds pursuant to division | 1407 |
|
(A)(5) of this section, or the Ohio subdivision's fund pursuant to | 1408 |
|
division (A)(6) of this section. | 1409 |
| (3) The investing authority shall maintain a monthly | 1419 |
|
portfolio report and issue a copy of the monthly portfolio report | 1420 |
|
describing such investments to the county investment advisory | 1421 |
|
committee, detailing the current inventory of all obligations and | 1422 |
|
securities, all transactions during the month that affected the | 1423 |
|
inventory, any income received from the obligations and | 1424 |
|
securities, and any investment expenses paid, and stating the | 1425 |
|
names of any persons effecting transactions on behalf of the | 1426 |
|
investing authority. | 1427 |
| (M) An investing authority may enter into a written | 1433 |
|
investment or deposit agreement that includes a provision under | 1434 |
|
which the parties agree to submit to nonbinding arbitration to | 1435 |
|
settle any controversy that may arise out of the agreement, | 1436 |
|
including any controversy pertaining to losses of public moneys | 1437 |
|
resulting from investment or deposit. The arbitration provision | 1438 |
|
shall be set forth entirely in the agreement, and the agreement | 1439 |
|
shall include a conspicuous notice to the parties that any party | 1440 |
|
to the arbitration may apply to the court of common pleas of the | 1441 |
|
county in which the arbitration was held for an order to vacate, | 1442 |
|
modify, or correct the award. Any such party may also apply to the | 1443 |
|
court for an order to change venue to a court of common pleas | 1444 |
|
located more than one hundred miles from the county in which the | 1445 |
|
investing authority is located. | 1446 |
| (b) For the investing authority depositing the inactive | 1483 |
|
moneys pursuant to division (A)(3)(a) of this section, the | 1484 |
|
eligible public depository selected pursuant to that division | 1485 |
|
invests the inactive moneys in certificates of deposit of one or | 1486 |
|
more federally insured banks, savings banks, or savings and loan | 1487 |
|
associations, or credit unions insured pursuant to section | 1488 |
|
1733.041 of the Revised Code, wherever located. The full amount of | 1489 |
|
principal and any accrued interest of each certificate of deposit | 1490 |
|
invested in pursuant to division (A)(3)(b) of this section shall | 1491 |
|
be insured by federal deposit insurance, or by the national credit | 1492 |
|
union administration or a credit union share guaranty corporation | 1493 |
|
as defined in section 1761.01 of the Revised Code, as applicable. | 1494 |
| Sec. 135.37. (A) Except as provided in section 135.353 or | 1513 |
|
135.354 of the Revised Code, any institution described in section | 1514 |
|
135.32 of the Revised Code shall, at the time it receives a | 1515 |
|
deposit of public moneys under section 135.33 or 135.35 of the | 1516 |
|
Revised Code, pledge to and deposit with the investing authority, | 1517 |
|
as security for the repayment of all public moneys to be | 1518 |
|
deposited, eligible securities of aggregate market value equal to | 1519 |
|
or in excess of the amount of public moneys to be at the time so | 1520 |
|
deposited. Any securities listed in division (B) of section 135.18 | 1521 |
|
of the Revised Code are eligible for such purpose. The collateral | 1522 |
|
so pledged or deposited may be in an amount that when added to the | 1523 |
|
portion of the deposit insured by the federal deposit insurance | 1524 |
corporation or, any other agency or instrumentality of the federal | 1525 |
|
government, or a credit union share guaranty corporation as | 1526 |
|
defined in section 1761.01 of the Revised Code will, in the | 1527 |
|
aggregate, equal or exceed the amount of public moneys so | 1528 |
|
deposited; provided that, when an investment of inactive moneys | 1529 |
|
consists of the purchase of one or more of the type of securities | 1530 |
|
listed in division (A)(1) or (2) of section 135.35 of the Revised | 1531 |
|
Code, no additional collateral need be pledged or deposited. | 1532 |
| (E) A public depository may designate, in accordance with the | 1562 |
|
provisions of division (D) of section 135.18 of the Revised Code, | 1563 |
|
a trustee for the safekeeping of any pledged securities. Such | 1564 |
|
trustee shall be any bank or other institution eligible as a | 1565 |
|
trustee under division (I) of section 135.18 of the Revised Code, | 1566 |
|
except that, for the purposes of this section, a bank to which a | 1567 |
|
certificate of qualification is issued shall be an institution | 1568 |
|
mentioned in division (A) of section 135.32 of the Revised Code. | 1569 |
| Sec. 135.51. In case of any default on the part of a bank | 1574 |
or, domestic building and loan association, savings bank, or | 1575 |
|
credit union in its capacity as depository of the money of any | 1576 |
|
county, municipal corporation, township, or school district, the | 1577 |
|
board of county commissioners, the legislative authority of such | 1578 |
|
municipal corporation, the board of township trustees, and the | 1579 |
|
board of education of such school district, in lieu of immediately | 1580 |
|
selling the securities received and held as security for the | 1581 |
|
deposit of such money under authority of any section of the | 1582 |
|
Revised Code, may retain the same, collect the interest and any | 1583 |
|
installments of principal thereafter falling due on such | 1584 |
|
securities, and refund, exchange, sell, or otherwise dispose of | 1585 |
|
any of them, at such times and in such manner as such board of | 1586 |
|
county commissioners, legislative authority, board of township | 1587 |
|
trustees, or board of education determines to be advisable with a | 1588 |
|
view to conserving the value of such securities for the benefit of | 1589 |
|
such county, municipal corporation, township, or school district, | 1590 |
|
and for the benefit of the depositors, creditors, and stockholders | 1591 |
or other owners of such bank or building and loan, domestic | 1592 |
|
association, savings bank, or credit union. | 1593 |
| Sec. 135.52. In anticipation of the collection of the | 1594 |
|
principal and interest of securities, or other disposition of | 1595 |
|
them, as authorized by section 135.51 of the Revised Code, and of | 1596 |
|
the payment of dividends in the liquidation of the depository bank | 1597 |
or, domestic savings and loan association, savings bank, or credit | 1598 |
|
union and for the purpose of providing public money immediately | 1599 |
|
available for the needs of the county, municipal corporation, | 1600 |
|
township, or school district, the taxing authority may issue bonds | 1601 |
|
of the county, municipal corporation, township, or school | 1602 |
|
district, in an amount not exceeding the moneys on deposit in the | 1603 |
depository bank
or savings and loan, domestic association, | 1604 |
| savings bank, or credit union, the payment of which is secured by | 1605 |
|
such securities, after crediting to such moneys the amount | 1606 |
|
realized from the sale or other disposition of any other | 1607 |
|
securities pledged or deposited for such moneys, or in an amount | 1608 |
|
not exceeding the value or amount ultimately to be realized from | 1609 |
|
such securities to be determined by valuation made under oath by | 1610 |
|
two persons who are conversant with the value of the assets | 1611 |
|
represented by such securities, whichever amount is the lesser, | 1612 |
|
plus an amount equal to the interest accruing on such securities | 1613 |
during one year from and after the date of default of such bank
or | 1614 |
savings and loan, domestic association, savings bank, or credit | 1615 |
|
union in its capacity as a depository. The maturity of such bonds | 1616 |
|
shall not exceed ten years and they shall bear interest at a rate | 1617 |
|
not exceeding the rate determined as provided in section 9.95 of | 1618 |
|
the Revised Code. Such bonds shall be the general obligations of | 1619 |
|
the county, municipal corporation, township, or school district | 1620 |
|
issuing them. The legislation under which such bonds are issued | 1621 |
|
shall comply with Section 11 of Article XII, Ohio Constitution. | 1622 |
|
The amount of such bonds issued or outstanding shall not be | 1623 |
|
considered in ascertaining any of the limitations on the net | 1624 |
|
indebtedness of such county, municipal corporation, township, or | 1625 |
|
school district prescribed by law. In all other respects, the | 1626 |
|
issuance, maturities, and sale of such bonds shall be subject to | 1627 |
|
Chapter 133. of the Revised Code. | 1628 |
| A sufficient amount of the moneys received from principal on | 1629 |
|
the sale of such bonds to cover the interest accruing on such | 1630 |
|
securities for one year, to the extent determined by the authority | 1631 |
|
issuing such bonds in the resolution or ordinance of issuance | 1632 |
|
under this section, shall be paid into the bond retirement fund | 1633 |
|
from which the bonds are to be redeemed, together with premiums | 1634 |
|
and accrued interest. The balance of such principal shall be | 1635 |
|
credited to the funds to which the moneys represented by such | 1636 |
|
depository balance belong, and in the respective amounts of such | 1637 |
|
funds. | 1638 |
| Sec. 135.53. All principal and interest collected by the | 1639 |
|
proper officer or agent of the county, municipal corporation, | 1640 |
|
township, or school district, on account of the securities | 1641 |
|
mentioned in section 135.51 of the Revised Code, the proceeds of | 1642 |
|
any sale or other disposition of any of such securities, and any | 1643 |
dividends received from the liquidation of the defaulting bank or, | 1644 |
domestic building and loan association, savings bank, or credit | 1645 |
|
union shall be paid into the bond retirement fund from which the | 1646 |
|
bonds provided for in section 135.52 of the Revised Code are to be | 1647 |
|
redeemed, until the aggregate of such payments equals the | 1648 |
|
requirements of such fund, whereupon such securities, and any | 1649 |
|
remaining depository balance, not anticipated by such bonds, to | 1650 |
|
the extent then retained by such county, municipal corporation, | 1651 |
|
township, or school district, shall be assigned and delivered to | 1652 |
the defaulting bank or building and loan, domestic association, | 1653 |
| savings bank, or credit union to its liquidating officer, or to | 1654 |
|
its successor or assignee, together with a release or other | 1655 |
|
instrument showing full satisfaction of the claim of such county, | 1656 |
|
municipal corporation, township, or school district against such | 1657 |
bank,
building and loandomestic association, savings bank, | 1658 |
|
credit union, or officer. | 1659 |
| (7) Act as trustee or custodian, for which reasonable | 1678 |
|
compensation may be received, under any written trust instrument | 1679 |
|
or custodial agreement created or organized in the United States | 1680 |
|
and forming part of a tax-advantaged savings plan that qualifies | 1681 |
|
for specific tax treatment under sections 223, 401(d), 408, 408A, | 1682 |
|
and 530 of the Internal Revenue Code, 26 U.S.C. 223, 401(d), 408, | 1683 |
|
408A, and 530, as amended, for its members or groups of its | 1684 |
|
members, provided that the funds of such plans are invested in | 1685 |
|
share accounts or share certificate accounts of the credit union. | 1686 |
|
These services include, but are not limited to, acting as a | 1687 |
|
trustee or custodian for member retirement, education, or health | 1688 |
|
savings accounts. | 1689 |
| (4) Real estate may be acquired by lease, purchase, or | 1706 |
|
otherwise as necessary and to the extent required for use of the | 1707 |
|
credit union presently and in the future operation of its office | 1708 |
|
or headquarters, and in case of a purchase of real estate, the | 1709 |
|
superintendent must first be notified in writing prior to the | 1710 |
|
purchase of the real estate. The superintendent shall notify the | 1711 |
|
credit union not more than thirty days after receipt of the | 1712 |
|
notification to purchase the real estate if the purchase is | 1713 |
|
denied, approved, or modified. If the superintendent does not | 1714 |
|
respond within thirty days after receipt of the notification to | 1715 |
|
purchase the real estate, it shall be deemed approved. Nothing | 1716 |
|
herein contained shall be deemed to prohibit a credit union from | 1717 |
|
taking title to real estate in connection with a default in the | 1718 |
|
payment of a loan, provided that title to such real estate shall | 1719 |
|
not be held by the credit union for more than two years without | 1720 |
|
the prior written approval of the superintendent. A credit union | 1721 |
|
also may lease space in any real estate it acquires in accordance | 1722 |
|
with rules adopted by the superintendent. | 1723 |
| Sec. 1733.041. Each credit union operating under this | 1753 |
|
chapter or otherwise authorized to do business in this state shall | 1754 |
|
obtain insurance for the protection of their members' accounts. | 1755 |
|
Such share guarantee insurance may be obtained from the national | 1756 |
|
credit union administration operating under the "Federal Credit | 1757 |
|
Union Act," 84 Stat. 994 (1970), 12 U.S.C. 1751, and any | 1758 |
amendments thereto, or from the national deposita credit union | 1759 |
|
share guaranty corporation, established under Chapter 1761. of the | 1760 |
|
Revised Code, or from any insurer qualified under the laws of this | 1761 |
|
state to write such insurance. | 1762 |
| Sec. 1733.24. (A) A credit union is authorized to receive | 1763 |
|
funds for deposit in share accounts, share draft accounts, and | 1764 |
|
share certificates from its members, from other credit unions, and | 1765 |
|
from an officer, employee, or agent of the federal, state, or | 1766 |
|
local governments, or political subdivisions of the state, in | 1767 |
|
accordance with such terms, rates, and conditions as may be | 1768 |
|
established by its board of directors and, if acting as a public | 1769 |
|
depository, for purposes of, and in accordance with, Chapter 135. | 1770 |
|
of the Revised Code. | 1771 |
| (B) The shares and share accounts of the credit union may be | 1772 |
|
of one or more classes, as designated by the board of directors, | 1773 |
|
subject to approval of the superintendent of credit unions based | 1774 |
|
on rules that shall assure equitable distribution of dividends | 1775 |
|
among classes, considering costs and advantages of each class to | 1776 |
|
the members of the credit union, including without limitation | 1777 |
|
special services rendered, length of ownership, minimum | 1778 |
|
investment, conditions of repurchase, and other appropriate | 1779 |
|
standards or combinations thereof. In the event the articles of | 1780 |
|
incorporation of the credit union indicate the authorized number | 1781 |
|
of shares to be unlimited, the designation of classification of | 1782 |
|
shares and share accounts of the credit union may be effected by | 1783 |
|
the board of directors, subject to the approval of the | 1784 |
|
superintendent, and does not require amendment of the articles of | 1785 |
|
incorporation. All shares of the credit union shall have a par | 1786 |
|
value per share as set by the board of directors. Redemptions and | 1787 |
|
liquidating dividends shall be prorated to each member on the | 1788 |
|
basis of the price paid the credit union for such share, | 1789 |
|
irrespective of the class of such shares. | 1790 |
| (H) Shares or share accounts may be issued in the name of a | 1821 |
|
custodian under the Ohio transfers to minors act, a member in | 1822 |
|
trust for a beneficiary, a fiduciary or custodian in trust for a | 1823 |
|
member beneficiary, or a fiduciary or custodian in trust upon the | 1824 |
|
death of a member. Redemption of such shares or payment of such | 1825 |
|
share accounts to a member, to the extent of the payment, | 1826 |
|
discharges the liability of the credit union to the member and the | 1827 |
|
beneficiary, and the credit union shall be under no obligation to | 1828 |
|
see to the application of the payment. Unless prior to the death | 1829 |
|
of a member, the member has notified the credit union in writing | 1830 |
|
in a form approved by the credit union of a different beneficiary | 1831 |
|
to receive the proceeds of such shares or share accounts, then the | 1832 |
|
proceeds shall be paid to the beneficiary or to the beneficiary's | 1833 |
|
parent or legal representative. Any payment made pursuant to | 1834 |
|
written instructions of the member or pursuant to the provisions | 1835 |
|
herein contained shall be a valid and sufficient release and | 1836 |
|
discharge of the credit union in connection with any such share or | 1837 |
|
share accounts. | 1838 |
| (I)(1) Except as otherwise provided in the articles or | 1839 |
|
regulations, and subject to the provisions thereof, a minor may | 1840 |
|
purchase shares, share accounts, or other depository instruments, | 1841 |
|
and except for qualification as a voting member, the credit union | 1842 |
|
may deal with the minor with respect to shares, share accounts, or | 1843 |
|
other depository instruments owned by the minor as if the minor | 1844 |
|
were a person of legal age. | 1845 |
| Sec. 1733.30. (A) A credit union may make any investment of | 1855 |
|
any funds not required for the purpose of loans or not required to | 1856 |
|
meet the pledging requirements of Chapter 135. of the Revised | 1857 |
|
Code, in state or national banks or state or federally chartered | 1858 |
|
savings and loan associations, savings banks, or credit unions, | 1859 |
|
doing business in this state; in accounts, deposits, or shares of | 1860 |
|
federally insured savings and loan associations or savings banks | 1861 |
|
or insured credit unions, doing business outside this state; in | 1862 |
|
deposits or accounts of federally insured banks, trust companies, | 1863 |
|
and mutual savings banks doing business outside this state; in the | 1864 |
|
shares of a corporate credit union subject to the regulations of | 1865 |
|
that corporate credit union; in shares, stocks, or obligations of | 1866 |
|
any other organization providing services that are associated with | 1867 |
|
the routine operations of credit unions; or in United States | 1868 |
|
government securities or municipal bonds issued by municipalities | 1869 |
|
of this state; and, with the approval of the superintendent of | 1870 |
|
credit unions, in securities other than those specified in this | 1871 |
|
division. All investments under this division shall be made in | 1872 |
|
United States dollars. | 1873 |
| (C) Except as otherwise provided in this division, each | 1937 |
|
credit union shall maintain a liquidity fund equal to five per | 1938 |
|
cent of its shares. The assets included in the liquidity fund | 1939 |
|
shall be defined by rule adopted by the superintendent. The | 1940 |
|
superintendent may require a particular credit union or all credit | 1941 |
|
unions to establish a liquidity fund greater than or less than | 1942 |
|
five per cent of total shares, if, in the opinion of the | 1943 |
|
superintendent, economic conditions or other appropriate | 1944 |
|
circumstances so warrant. | 1945 |
| Section 2. That existing sections 122.60, 122.71, 135.03, | 1961 |
|
135.032, 135.04, 135.06, 135.08, 135.10, 135.14, 135.144, 135.18, | 1962 |
|
135.32, 135.321, 135.33, 135.35, 135.353, 135.37, 135.51, 135.52, | 1963 |
|
135.53, 1733.04, 1733.041, 1733.24, 1733.30, and 1733.31 of the | 1964 |
|
Revised Code are hereby repealed. | 1965 |
