1301:2-1-02 Reimbursement for providing financial records.

 

 

 

NOTICE OF PUBLIC HEARING

 

Ohio Department of Commerce

Division of Financial Institutions - Savings and Loan Associations

 

Pursuant to Section 119.03 of the Ohio Revised Code, notice is given that the Division of Financial Institutions intends to conduct a public hearing on Tuesday, April 27, 2004 at 11 a.m. in the 21st Floor Library of the Vern Riffe Center for Government and the Arts located at 77 South High Street, Columbus, Ohio 43215-6120, regarding the Division's intent to rescind all existing Savings and Loan Associations rules in the Ohio Administrative Code and adopt new rules for the purpose of reorganizing and renumbering. The rules as summarized below are either new or replace an existing rule with new language and a new rule number:

 

1301:2-1-01, Notification of public hearing. The rule establishes that public notice of rulemaking activities related to savings and loan associations, and the related public hearing shall be given in the Register of Ohio, and prescribes how additional notice will be provided if deemed necessary by the superintendent.

 

1301:2-1-02, Reimbursement for providing financial records. The rule establishes the rates and conditions for reimbursement of actual and necessary costs directly incurred by savings and loan associations in assembling or providing customer financial records to any party.

 

1301:2-1-03, Record retention. This rule establishes the schedule for keeping records and documents of savings and loan associations.

 

1301:2-2-01, Net worth requirement. This rule defines what savings and loan associations' net worth shall consist of, and sets forth the minimum net worth requirement for saving and loan associations.

 

1301:2-2-02, Reserve requirement. This rule establishes the minimum amount of reserves against loss that savings and loan associations must maintain when certain conditions are present and describes what savings and loan associations may count towards reserves to meet the minimum requirements.

 

1301:2-3-01, Activities of services corporations. This rule lists the type of activities that a savings and loan associations' service corporation may engage in and establishes the procedure an association shall follow to request the superintendent's prior approval to engage in an activity through a service corporation that is not listed in the rule.

 

1301:2-3-02, Repurchase and reverse repurchase agreements. This rule prescribes the procedure for associations to enter into repurchase and reverse repurchase agreements and establishes what provisions shall be addressed in the written guidelines adopted by associations' board of directors to enter into such agreements.

 

1301:2-3-03, Operating subsidiaries. The rule authorizes savings and loan associations to engage, through operating subsidiaries, in activities that savings and loan activities may engage directly, and prescribes how a savings and loan association establishes an operating subsidiary, and how the law relates to savings and loan associations and their operating subsidiaries.

 

 

 

 

 

Notice of Public Hearing for Savings and Loan Associations

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1301:2-3-04, Commercial lending. This rule allows state chartered savings and loan associations to make commercial loans up to thirty per cent of savings and loan associations' assets provided that the association maintains its reserve account as provided in the schedule in the rule.

1301:2-4-01, Incorporation. This rule prescribes the procedure for a person(s) to make application to the Division to organize a state chartered savings and loan association. The rule describes the documentation required to accompany the application.

1301:2-4-02, Change in control. The rule clarifies the applicability of when a person or persons must provide notice or application to the Division to obtain control of a state savings and loan association. The rule defines what percentage of stock ownership is considered having control and establishes the procedure for giving and processing the notice/application. The rule also coordinates those procedures with the federal notice and processing procedures.

1301:2-4-03, Agency agreement between savings and loan association and affiliate and non- affiliate depository institutions. The rule allows associations to provide specified services to its customers by entering into an agency agreement with an affiliate depository institution without the division's prior approval and prescribes how an agency agreement is made. The rule provides that prior approval must be sought if a state savings and loan association wants to contract to provide services to its customers through a non-affiliate depository institution or to provide other services than the rule allows. The rule clarifies that a state savings and loan association may not as agent or principal through its agent conduct activities prohibited under applicable law and that the bank office or branch of the depository institution acting as the association's agent is not a branch of the association.

1301:2-4-04, Conversion from mutual to stock. The rule prescribes the procedure for a mutual savings and  loan  association  to convert  to  a stock savings and  loan  association.  The rule describes the documentation required to accompany the application.

1301:2-4-05, Remote service units. This rule establishes the definition of a remote service unit and establishes the procedures for savings and loan association to establish or use remote service units.

1301:2-5-01, Directors. This rule establishes that boards of directors of state savings and loan associations shall consist of at least five members.

1301:2-5-02, Bonds for officers and employees. The rule establishes the schedule that sets forth the minimum fidelity bond coverage for savings and loan associations' officers and employees.

Copies of the proposed rules may be obtained by calling Iris Eubank at [phone] at the Division of Financial Institutions or by accessing the Register of Ohio web site located at www.registerofohio.state.oh.us.