Bill Text: OH HB615 | 2011-2012 | 129th General Assembly | Introduced

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Bill Title: To create the Ohio bond bank to assist political subdivisions with borrowing and with the acquisition of property by acting as a financing conduit.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Introduced - Dead) 2012-12-11 - Introduced to House [HB615 Detail]

Download: Ohio-2011-HB615-Introduced.html

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As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 615

Representatives Goyal, Letson 

Cosponsors: Representatives Fende, Yuko, O'Brien, Antonio, Stinziano, Gerberry, Garland, Lundy, Reece, Murray, Mallory, Driehaus, Boyce, Fedor, Celebrezze, Heard 

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A BILL

To enact sections 134.01, 134.02, 134.03, 134.031,

1

134.04, 134.041, 134.042, 134.05, 134.06, 134.07,

2

134.08, 134.09, and 134.10 of the Revised Code to

3

create the Ohio bond bank to assist political

4

subdivisions with borrowing and with the

5

acquisition of property by acting as a financing

6

conduit.

7

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

Section 1. That sections 134.01, 134.02, 134.03, 134.031,	8
134.04, 134.041, 134.042, 134.05, 134.06, 134.07, 134.08, 134.09,	9
and 134.10 of the Revised Code be enacted to read as follows:	10

Sec. 134.01.  For purposes of sections 134.01 to 134.10 of	11
the Revised Code:	12

(A) "Bank" means the Ohio bond bank established in section	13
134.02 of the Revised Code.	14

(B) "Board" means the board of directors established in	15
section 134.03 of the Revised Code.	16

(C) "Holder" means a person who is the bearer of any	17
outstanding bond or note registered to bearer or not registered,	18
or who is the registered owner of any outstanding bond or note	19
that is registered other than to bearer.	20

(D) "Qualified entity" means a subdivision as defined under	21
section 133.01 of the Revised Code and any nonprofit corporation	22
authorized to issue securities for or on behalf of any	23
subdivision.	24

(E) "Security" means any of the following:

25

(1) A bond, note, or evidence of indebtedness issued by a	26
qualified entity;	27

(2) A lease or other evidence of participation in the	28
lessor's interest in and rights under a lease with a qualified	29
entity;	30

(3) An obligation of a qualified entity under an agreement	31
between the qualified entity and the bank.	32

Sec. 134.02.  (A) If the provisions of this chapter are	33
inconsistent with the provisions of any other law, general,	34
special, or local, the provisions of this chapter shall control.	35

(B) The Ohio bond bank is hereby created to provide low-cost	36
financial assistance to qualified entities. The bank is a separate	37
body corporate and politic, constituting an instrumentality of	38
this state, but it is not a state agency. The bank is separate	39
from this state in its corporate and sovereign capacity. All	40
expenses incurred by the Ohio bond bank in carrying out its	41
purpose are payable solely from revenues of the bank or funds	42
appropriated to the bank, and nothing in sections 134.01 to 134.10	43
of the Revised Code shall be construed to authorize the bank to	44
incur a liability on behalf of or payable by this state.	45

(C) The bank is granted all powers necessary or convenient to	46
perform its purpose, including but not limited to the power to do	47
any of the following:	48

(1) Buy and sell bonds, notes, or other evidence of	49
indebtedness issued by a qualified entity;	50

(2) Loan money to a qualified entity;

51

(3) Purchase property and sell or lease it to a qualified	52
entity;	53

(4) Issue bonds, notes, or other evidence of indebtedness or	54
borrow money;	55

(5) Render services consistent with the bank's purpose and	56
charge a reasonable fee for such services;	57

(6) Charge fees for applications submitted by qualified	58
entities;	59

(7) Accept gifts or grants of property, money, or services;

60

(8) Invest surplus cash;

61

(9) Adopt an official seal;

62

(10) Sue and be sued;

63

(11) Perform any action necessary or convenient for the	64
bank's day-to-day operations, such as buying, selling, leasing,	65
holding, or using property; entering into contracts; employing or	66
retaining attorneys, accountants, financial advisors, or other	67
professionals and personnel; and procuring insurance;	68

(12) Adopt bylaws governing its operations, procedures, and	69
policies as may be necessary to assist with the furtherance of the	70
bank's purpose.	71

(D) The bank shall maintain an operating fund and such other	72
funds as it considers necessary or convenient to execute the	73
bank's purpose.	74

Sec. 134.03.  (A) The bank shall be governed by a board of	75
directors composed of the following:	76

(1) The treasurer of state, who shall be the chairperson;

77

(2) The director of budget and management;

78

(3) Five residents of this state having substantial expertise	79
in buying, selling, or trading public securities, in public	80
administration, or in public facilities management, to be	81
appointed by the governor. Appointed directors shall serve for a	82
term of three years, may be reappointed for an unlimited number of	83
terms, and shall hold office from the date of the appointment	84
until the end of the term for which the director was appointed. An	85
appointed director shall continue in office subsequent to the	86
expiration date of the director's term until the director's	87
successor takes office or until a period of sixty days has	88
elapsed, whichever occurs first. A director appointed to fill a	89
vacancy occurring before the expiration of the term for which the	90
director's predecessor was appointed shall hold office for the	91
remainder of the term. A vacancy in an unexpired term shall be	92
filled in the same manner as the original appointment. The	93
governor may remove an appointed director for malfeasance,	94
misfeasance, or nonfeasance after a hearing in accordance with	95
Chapter 119. of the Revised Code.	96

(B) Directors shall serve without compensation but shall	97
receive reimbursement for their reasonable and necessary expenses	98
incurred in the conduct of the board's business. Directors shall	99
file financial disclosure statements described in division (A) of	100
section 102.02 of the Revised Code. Each director, and the chief	101
executive officer appointed under section 134.031 of the Revised	102
Code, shall execute a surety bond in an amount specified by the	103
treasurer of state. Each surety bond shall be conditioned upon the	104
faithful performance of the duties of the office of director and	105
chief executive officer, respectively. In lieu of such surety	106
bonds, the bank may execute a blanket surety bond covering each	107
director, the chief executive officer, and any other officers or	108
employees of the bank. The surety bonds shall be issued by a	109
surety company authorized to transact business in this state. The	110
cost of the surety bonds shall be paid by the bank. Neither a	111
director nor a person executing bonds or notes issued under this	112
article is personally liable on the bonds or notes.	113

(C) A majority of all directors constitutes a quorum, and no	114
action may be taken without the concurrence of a majority of the	115
directors. The board of directors is a public body for the	116
purposes of section 121.22 of the Revised Code. The minutes of the	117
meeting prepared under that section shall state the name of each	118
director who was physically present at the meeting, participated	119
in the meeting remotely, or was absent. Records of the bank are	120
public records for the purposes of section 149.43 of the Revised	121
Code.	122

(D) Each fiscal year, the bank's books and accounts shall be	123
audited by a certified public accounting firm or the auditor of	124
state, as selected by the bank. If the audit is to be conducted by	125
a certified public accounting firm, the firm may not be selected	126
without a review of the firm's proposal and approval of the firm	127
by the auditor of state. The cost of the audit shall be considered	128
an expense of the bank, and a copy of the audit shall be made	129
available to the public.	130

(E) Within ninety days after the end of each fiscal year, the	131
board, with the assistance of the chief executive officer, shall	132
submit to the governor and the general assembly a report of the	133
activities of the bank during the preceding fiscal year.	134

Sec. 134.031. The board shall elect a vice chairperson and	135
appoint and establish the duties and compensation of a chief	136
executive officer. The chief executive officer shall do all of the	137
following:	138

(A) Serve as both secretary and treasurer;

139

(B) Administer, manage, and direct the employees of the bank;

140

(C) Approve all amounts for salaries, allowable expenses of	141
the bank or of any employee or consultant of the bank, and	142
expenses incidental to the operation of the bank;	143

(D) Attend meetings of the board and keep a record of the	144
proceedings of the board;	145

(E) Maintain all books, documents, and papers filed with the	146
bank, the minutes of the board, and the bank's official seal. The	147
chief executive officer may cause copies to be made of all minutes	148
and other records and documents of the bank and may give	149
certificates under seal of the bank to the effect that those	150
copies are true copies, and all persons dealing with the bank may	151
rely upon those certificates.	152

(F) Establish an office for the bank in Columbus;

153

(G) Adopt an annual budget;

154

(H) Perform other duties fixed by the board.

155

Sec. 134.04.  (A) Bonds or notes of the bank shall be	156
authorized by resolution of the board. Upon the adoption of a	157
resolution authorizing the issuance of bonds or notes, the bank	158
may publish notice of the adoption once each week for two weeks in	159
a newspaper of general circulation in the city of Columbus. If	160
notice is published as provided in this section, any action or	161
proceeding in any court to set aside the resolution authorizing	162
the issuance of bonds or notes of the bank under this chapter or	163
to obtain any relief upon the ground that the resolution is	164
invalid must be filed within thirty days following the first	165
publication of notice of the adoption of the resolution. After the	166
expiration of this thirty-day period, no right of action shall be	167
asserted nor shall the validity of the resolution or any of its	168
provisions be open to question in any court or agency upon any	169
grounds.	170

(B) Bonds and notes of the bank are negotiable instruments	171
and securities under Chapters 1303. and 1308. of the Revised Code.	172
A bond or note of the bank is not a debt, liability, loan of the	173
credit, or pledge of the faith and credit of this state or of any	174
qualified entity. Each bond or note shall state on its face that	175
the bank is obligated to pay principal and interest, and	176
redemption premiums if any, and that the faith, credit, and taxing	177
power of this state are not pledged to the payment of the bond or	178
note. The bank may issue its bonds or notes in principal amounts	179
that it considers necessary to provide funds for its purpose	180
unless otherwise limited by act of the general assembly.	181

Unless otherwise specified by the board, every issue of bonds	182
or notes is a general obligation of the bank payable out of the	183
revenue or funds of the bank, subject only to agreements with the	184
holders of a particular series of bonds or notes pledging a	185
particular revenue or fund. Bonds or notes may be additionally	186
secured by a pledge of a grant or contributions from the United	187
States, a qualified entity, or a person or a pledge of income or	188
revenues, funds, or money of the bank from any source.	189

The rate or rates of interest on the bonds or notes may be	190
fixed or variable. Variable rates shall be determined in the	191
manner and in accordance with the procedures set forth in the	192
resolution authorizing the issuance of the bonds or notes. Bonds	193
or notes bearing a variable rate of interest may be converted to	194
bonds or notes bearing a fixed rate or rates of interest, and	195
bonds or notes bearing a fixed rate or rates of interest may be	196
converted to bonds or notes bearing a variable rate of interest,	197
to the extent and in the manner set forth in the resolution	198
pursuant to which the bonds or notes are issued. Interest on bonds	199
or notes may be payable at any interval and may be compounded, as	200
specified in the resolution. At the option of the holders, the	201
bonds or notes may be made subject to mandatory redemption by the	202
bank at the times and under the circumstances set forth in the	203
resolution.	204

(C) Bonds or notes issued under this chapter may be secured	205
by a trust agreement by and between the board and a corporate	206
trustee, which may be any trust company or bank having the powers	207
of a trust company. The trust agreement or the resolution	208
providing for the issuance of the bonds or notes may contain	209
provisions for protecting and enforcing the rights and remedies of	210
the holders of any such bonds or notes as may be reasonable and	211
proper and not in violation of law. The trust agreement or	212
resolution may set forth the rights and remedies of the holders of	213
any bonds or notes and of the trustee and may restrict the	214
individual right of action by the holders. The trust agreement or	215
resolution may contain such other provisions as the board may	216
consider reasonable and proper for the security of the holders of	217
any bonds or notes. All expenses incurred in carrying out the	218
provisions of the trust agreement or resolution may be paid from	219
revenues or assets pledged or assigned to the payment of the	220
principal of and the interest on bonds and notes or from any other	221
funds available to the board.	222

(D) Unless a judicial action or proceeding challenging the	223
validity of the bonds or notes is commenced by personal service on	224
the chief executive officer before the initial delivery of the	225
bonds or notes, the proceedings relating to them are incontestable	226
and shall be conclusively considered to be and to have been	227
issued, secured, entered into, payable, sold, executed, and	228
delivered, and the proceedings relating to them taken, in	229
conformity with all legal requirements if all of the following	230
apply:	231

(1) They state that they are issued or entered into under or	232
pursuant to Chapter 134. of the Revised Code and comply on their	233
face with the provisions of that chapter;	234

(2) They are issued or entered into for a lawful purpose and	235
within any limitations prescribed by law;	236

(3) Their purchase price, if any, has been paid in full;

237

(4) The transcript of the proceedings of the board contains a	238
statement by the chief executive officer that all the proceedings	239
were held in compliance with law, which statement creates a	240
conclusive presumption that the proceedings were held in	241
compliance with all laws, including, as applicable, section 121.22	242
of the Revised Code, and rules.	243

Sec. 134.041.  (A) Bonds or notes of the bank may be sold by	244
competitive bid or private sale at a price determined by the	245
board. If bonds or notes of the bank are to be sold by competitive	246
bid on the best bid, the bank shall advertise for bids in a	247
newspaper of general circulation in Franklin county, in the manner	248
and at the time or times determined by the board. Any	249
advertisement for competitive bids shall state all of the	250
following pertaining to the bonds or notes:	251

(1) The total or maximum principal amount;

252

(2) The amounts and dates of principal payments, how and by	253
whom they shall be determined, and any provisions for call or	254
redemption prior to maturity;	255

(3) The maximum rate or rates of interest if any, any other	256
limitations on interest or interest rates or the manner of	257
determining the interest rate or rates, and any maximum permitted	258
discount;	259

(4) The dates of payment of interest;

260

(5) The day, hour, and place for receipt of bids, and the	261
manner in which bids may be presented;	262

(6) The basis on which the best bid will be determined,	263
including, with respect to interest cost, the basis for	264
determining interest cost if other than net interest cost	265
determined by computing the interest payable to the stated	266
maturity date or dates, plus any discount or minus any premium	267
bid;	268

(7) The bid security, if any, as determined by the board, to	269
be submitted with or otherwise provided or evidenced in connection	270
with a bid;	271

(8) Any other information, or terms of sale determined or	272
confirmed by the board pertinent to the sale.	273

(B) A prospective bidder may present a bid for the bonds or	274
notes based upon their bearing interest that does not exceed the	275
maximum rate or rates of interest, if any, specified in the	276
advertisement or request. In connection with its bid, every bidder	277
shall submit or otherwise provide or evidence any bid security in	278
the form and amount specified in the advertisement or request. Any	279
bid security of the best bidder shall be retained or not released	280
pending delivery of the bonds or notes to the best bidder. After	281
the award of the bonds or notes to the best bidder, the board	282
shall return or release any bid security of other bidders.	283

Sec. 134.042.  The bank may issue its notes and pay and	284
retire the principal of the notes or pay the interest due thereon	285
or fund or refund the notes from proceeds of bonds or other notes	286
or from other funds or money of the bank available for that	287
purpose in accordance with a contract between the bank and the	288
holders of the notes.	289

The bank may purchase bonds or notes of the bank out of its	290
funds or money available for the purchase of its own bonds and	291
notes. The bank may hold, cancel, or resell the bonds or notes	292
subject to, and in accordance with, agreements with holders of its	293
bonds or notes. Unless canceled, bonds or notes so held shall be	294
considered to be held for resale or transfer and the obligation	295
evidenced by the bonds or notes shall not be considered to be	296
extinguished.	297

A pledge of revenues or other money made by the bank is	298
binding from the time the pledge is made. Revenues or other money	299
so pledged and thereafter received by the bank are immediately	300
subject to the lien of the pledge without any further act, and the	301
lien of a pledge is binding against all parties having claims of	302
any kind in tort, contract, or otherwise against the bank,	303
regardless of whether the parties have notice of the lien. Neither	304
the resolution authorizing the pledge, nor any other instrument by	305
which a pledge is created, needs to be filed or recorded except in	306
the records of the bank.	307

Sec. 134.05.  (A) If the bank defaults in the payment of	308
principal or interest on an issue of bonds or notes, whether at	309
maturity or upon call for redemption, and the default continues	310
for thirty days, or the bank defaults in an agreement made with	311
the holders of an issue of bonds or notes, and there is no trustee	312
under a trust agreement, the holders of twenty-five per cent in	313
the aggregate principal amount of the outstanding bonds or notes	314
of that issue, by instrument filed in the office of the county	315
recorder of Franklin county and executed in the same manner as a	316
deed to be recorded, may appoint a trustee to represent the	317
holders of those bonds or notes. The trustee shall, in the	318
trustee's name, upon written request of the holders of twenty-five	319
per cent in principal amount of the outstanding bonds or notes, do	320
all of the following:	321

(1) By civil action enforce all rights of the holders,	322
including the right to require the bank to do both of the	323
following:	324

(a) Collect rates, charges, and other fees and to collect	325
interest and principal payments on securities held by it adequate	326
to carry out an agreement as to, or pledge of, the rates, charges,	327
and other fees and of the interest and principal payments;	328

(b) Carry out any other agreements with the holders of the	329
bonds or notes and to perform its duties under this article.	330

(2) Bring a civil action upon the bonds or notes;

331

(3) By civil action require the bank to account as if it were	332
the trustee of an express trust for the holders of the bonds or	333
notes;	334

(4) By civil action enjoin anything that may be unlawful or	335
in violation of the rights of the holders of the bonds or notes;	336

(5) Declare all the bonds or notes due and payable, and if	337
all defaults are made good, then with the consent of the holders	338
of twenty-five per cent of the principal amount of the outstanding	339
bonds or notes annul the declaration and its consequences. Before	340
declaring the principal of bonds or notes due and payable, the	341
trustee must first give not less than thirty days notice in	342
writing to the chairperson of the board and the attorney general.	343

The civil action shall be brought in the court of common	344
pleas of Franklin county. The trustee has all the powers necessary	345
for the exercise of functions specifically set out or incident to	346
the general representation of holders in the enforcement and	347
protection of their rights.	348

Sec. 134.06.  (A) A qualified entity may sell its securities	349
to the bank at a negotiated, private sale, without limitation as	350
to denomination, at such price or prices as may be determined by	351
the bank and the qualified entity. Contracts shall contain the	352
terms and conditions of the loan or purchase and may be in any	353
form agreed to by the bank and the qualified entity, including a	354
customary form of bond ordinance or resolution. Every qualified	355
entity is authorized and empowered to pay fees and charges	356
required to be paid to the bank for its services.	357

(B) A qualified entity may assign or sell a lease or purchase	358
contract for property to the bank, enter into a lease or purchase	359
contract for property with the bank, or buy property from or sell	360
property to the bank at any price and under any other terms and	361
conditions as may be determined by the bank and the qualified	362
entity.	363

(C) All securities at any time purchased, held, or owned by	364
the bank shall at all times be purchased and held in the name of	365
the bank. All securities at any time purchased by the bank, upon	366
delivery to the bank, shall, unless waived by the board, be	367
accompanied by all documentation required by the board that shall	368
include an approving opinion of recognized bond counsel,	369
certification and guarantee of signatures, and certification as to	370
no litigation pending as of the date of delivery of the securities	371
challenging the validity or issuance of such securities.	372

Sec. 134.07.  (A) Upon the sale and delivery by a qualified	373
entity of any securities to the bank, the qualified entity shall	374
be considered to have agreed that, upon its failure to pay	375
interest or principal on the securities owned or held by or	376
arising from an agreement with the bank when payable, all	377
statutory defenses to nonpayment are waived.	378

If a department or agency of this state is the custodian of	379
money payable to the qualified entity under chapter 3306. or	380
sections 321.24, 323.156, 4503.068, 5727.85, 5727.86, 5747.46 to	381
5747.48, 5747.50 to 5747.53, or 5751.20 to 5751.22 of the Revised	382
Code, at any time the department or agency shall withhold the	383
payment of that money from that qualified entity and pay the money	384
to the bank for the purpose of paying principal of and interest on	385
bonds of the bank after written notice to the department or agency	386
head from the bank that the qualified entity is in default on the	387
payment of principal or interest on the securities of the	388
qualified entity then held or owned by or arising from an	389
agreement with the bank. Withholding payment from the qualified	390
entity and payment to the bank under this division may be done	391
only if doing so would not adversely affect the validity of the	392
security in default.	393

(B) A qualified entity that has complied with all statutory	394
requirements for the issuance of its bonds, in lieu of issuing	395
bonds at that time and without the need for complying with any	396
other law applicable to the issuance of bonds, notes, or other	397
evidences of indebtedness, may issue its notes in anticipation of	398
the issuance of bonds to the bank, and the bank may purchase the	399
bond anticipation notes. The bond anticipation notes may be issued	400
on terms set forth in a resolution authorizing their issuance and	401
in any amount equal to or less than the amount of bonds authorized	402
to be issued. The qualified entity may renew or extend the bond	403
anticipation notes from time to time on terms agreed to with the	404
bank, and the bank may purchase the renewals or extensions. The	405
amount of the accrued interest on the date of renewal or extension	406
may be paid or added to the principal amount of the note being	407
renewed or extended. The bond anticipation notes of the qualified	408
entity, including any renewals or extensions, must mature in the	409
amounts and at the times agreed to by the qualified entity and the	410
bank, not to exceed five years from the date of the original	411
issuance of the bond anticipation notes. The bond anticipation	412
notes must be finally paid, and interest on the bond anticipation	413
notes may be finally paid, with the proceeds of the bonds issued	414
by the qualified entity. In connection with the issuance of bonds,	415
part or all of the proceeds of which will be used to retire the	416
bond anticipation notes, it is not necessary for the qualified	417
entity to repeat the procedures for the issuance of bonds, as the	418
procedures followed before the issuance of the bond anticipation	419
notes are for all purposes sufficient to authorize the issuance of	420
the bonds.	421

(C) In connection with the purchase of bond anticipation	422
notes, the bank, by agreement with the qualified entity, may	423
impose any terms, conditions, and limitations as in its opinion	424
are proper for the security of the bank and the holders of its	425
bonds or notes. If the qualified entity fails to comply with the	426
agreement or to issue its bonds to retire its bond anticipation	427
notes, the bank may enforce all rights and remedies provided in	428
the agreement or at law, including an action in mandamus to compel	429
the issuance of bonds by the qualified entity.	430

Sec. 134.08.  All property of the bank is public property	431
devoted exclusively to a public purpose and is exempt from	432
taxation.	433

All property of the bank is exempt from levy and sale by	434
virtue of an execution, and no execution or other judicial process	435
may issue against the property. A judgment against the bank may	436
not be a charge or lien upon its property.	437

Nothing in this section applies to or limits the rights of	438
the holder of bonds or notes to pursue a remedy for the	439
enforcement of a pledge or lien given by the bank on its revenues	440
or other money.	441

Sec. 134.09.  (A) The bank may obtain from a department or	442
agency of the United States, or a nongovernmental insurer,	443
insurance or a guaranty for the payment or repayment of interest	444
or principal, or both, or any part of interest or principal, on	445
bonds or notes issued by the bank, or on securities purchased or	446
held by the bank.	447

(B) The treasurer of the state, as chairperson of the board,	448
is authorized to receive from the United States of America or any	449
department or agency thereof any amount of money as and when	450
appropriated, allocated, granted, turned over, or in any way	451
provided for the purposes of the bank or this chapter, and, unless	452
otherwise directed by the federal authority, shall be credited to	453
and deposited in the bank's operating fund.	454

Sec. 134.10.  (A) A financial institution may give to the	455
bank a good and sufficient undertaking with such sureties as are	456
approved by the bank to the effect that the financial institution	457
shall faithfully keep and pay over to the order of or upon the	458
warrant of the bank or its authorized agent all those funds	459
deposited with it by the bank and agreed interest under or by	460
reason of this chapter, at such times or upon such demands as may	461
be agreed with the bank. In lieu of such sureties, a financial	462
institution may deposit with the bank, its authorized agent, or a	463
trustee for the holders of bonds, as collateral, those securities	464
as the board may approve. The deposits of the bank may be	465
evidenced by an agreement in the form and upon the terms and	466
conditions that may be agreed upon by the bank and the financial	467
institution.	468

(B) The board may enter into agreements or contracts with a	469
financial institution as may be necessary, desirable, or	470
convenient in the opinion of the board for rendering services in	471
connection with the care, custody, or safekeeping of securities or	472
other investments held or owned by the bank, for rendering	473
services in connection with the payment or collection of amounts	474
payable as to principal or interest, and for rendering services in	475
connection with the delivery to the bank of securities or other	476
investments purchased by it or sold by it, and to pay the cost of	477
those services. The board may also, in connection with any of the	478
services to be rendered by a financial institution as to the	479
custody and safekeeping of its securities or investments, require	480
security in the form of collateral bonds, surety agreements, or	481
security agreements in such form and amount as, in the opinion of	482
the board, is necessary or desirable.	483

(C) Bonds and notes issued under this chapter are:

484

(1) Lawful investments for banks, savings and loan	485
associations, credit union share guaranty corporations, trust	486
companies, trustees, fiduciaries, insurance companies, including	487
domestic for life and domestic not for life, trustees or other	488
officers having charge of sinking and bond retirement or other	489
funds of the state, subdivisions, and taxing districts, the	490
commissioners of the sinking fund of the state, the administrator	491
of workers' compensation, the state teachers, public employees,	492
and school employees retirement systems, and the Ohio police and	493
fire pension fund, notwithstanding any other provisions of the	494
Revised Code or rules adopted pursuant to those provisions by any	495
agency of this state with respect to investments by them;	496

(2) Eligible as security for the repayment of the deposit of	497
public moneys.	498

Section 2.  Appointments to the board of directors created in	499
section 134.03 of the Revised Code, as enacted by this act, shall	500
be made not later than thirty days after the effective date of	501
this act. Notwithstanding that section, of the first three	502
directors appointed, one shall serve a term of one year, and two	503
shall serve a term of two years. The board shall elect a vice	504
chairperson and appoint and establish the duties and compensation	505
of a chief executive officer under section 134.031 of the Revised	506
Code within sixty days after the effective date of this act.	507