1301:12-1-02 Reimbursement for providing financial records.  

  • Text Box: ACTION: Original Text Box: DATE: 03/29/2010 3:00 PM

     

    NOTICE OF PUBLIC HEARING

     

    Ohio Department of Commerce Division of Financial Institutions Savings Banks

    Pursuant to Sections 119.03 and 119.032 of the Ohio Revised Code, notice is hereby given that at 10:00 a.m. on Tuesday, May 4, 2010, the Ohio Division of Financial Institutions (the "Division") in accordance with its five year rule review intends to amend, rescind and adopt rules under Ohio Administrative Code Chapter 1301:12 Division of Financial Institutions: Savings Banks. The hearing will be held at the offices of the Division located at 77 South High Street, 21st Floor, Conference Room, Columbus, Ohio 43215-6123.

     

    Copies of these proposed rules may be obtained from the Department of Commerce's webpage located at http://com.ohio.gov/ProposedRules.aspx, by contacting the Division at the aforementioned address or by calling the Division at (614) 644-7517. Copies of the proposed Rules may also be obtained from the Register of Ohio located at www.registerofohio.state.oh.us. The proposed rules are summarized as follows:

     

    OAC 1301:12-1-01 Notification of a Public Hearing. The rule is being amended to allow the Division to give additional notice by posting notice regarding any proposed adoption, amendment or rescission of any rule on the Department of Commerce's webpage.

     

    OAC 1301:12-1-02 Reimbursement for providing financial records. The rule is being amended to update the rates and conditions for reimbursement of actual and necessary costs directly incurred by savings bank in assembling or providing financial records to any party.

     

    OAC 1301:12-1-03 Record Retention. The rule is being rescinded and restated as a new rule to provide clarification as to which records must be retained permanently or for certain prescribed time frames.

     

    OAC 1301:12-2-01 Net Worth Requirement. The rule is being rescinded and restated as a new rule to expand what assets qualify as net worth to comport with the definition of core capital as used for commercial banks. The proposed rule is intended to provide parity between state-chartered savings and loan associations, savings banks and commercial banks.

     

    OAC 1301:12-2-02 Reserve Requirement. The rule is being rescinded. It has been determined that the rule pre-dated Federal Deposit Insurance Corporation rules pertaining to prompt corrective action standards, which establish capital levels to be maintained by institutions. In addition, the rule is redundant and unnecessary given that institutions are required to follow interagency policy statements and call report instructions and methodology pertaining to ALLL reserves.

     

    OAC 1301:12-3-03 Operating Subsidiaries. The rule is being amended to correct typographical errors in the text of the rule.

     

    OAC 1301:12-3-04 Commercial Lending. The rule is being amended to correct typographical and formatting errors in the rule. In addition, for purposes of the commercial lending limit rules, reserves has been defined to mean net worth as term is used in new proposed O.A.C. rule 1301:12- 2-01.

     

     

    OAC 1301:12-3-05 Lending Limits. The rule is being amended to revise what assets qualify as capital to be consistent with and no more restrictive then definition of capital for state-chartered commercial banks. The proposed rule defines capital as a component of net worth (core or tier one capital) as the term is defined in OAC 1301:12-2-01 and provides a definition for supplementary or tier two capital.

    OAC 1301:12-4-01 Incorporation. The rule is being amended to correct typographical errors in the text of the rule, including revisions to the sample notice in the rule to refer to the proper title of the Division. In addition, the proposed rule deletes the requirement in paragraph (D) of the rule which requires an affidavit to evidence publication of the notice. Instead, the proposed rule requires that the Division receive a certified copy of the notice. Further, the notice will be required to be published at least once a week for two weeks in a newspaper of general circulation in the communities to be served by the savings bank. Finally, the capital requirements for chartering a savings bank has been raised from a range of $2 -to- $10 million to a minimum of $10 million or such other amount to be determined by the superintendent to be adequate in relation to the amount and character of the anticipated business of the savings bank and the safety of prospective depositors.

    OAC 1301:12-4-02 Change in Control. The rule is being amended to correct typographical errors in the text of the rule.

    OAC 1301:12-4-04 Conversion from Mutual to Stock. The rule is being rescinded and restated as a new rule to provide clarification and more information about necessary submissions for a mutual to stock conversion. The new rule provides greater guidance as to what information must be disclosed in proxy and offering materials, notices to be published and other requirements that must met to a effectuate a conversion. In addition, the rules set forth the manner in which a conversion is to be handled in case of a merger or formation of a holding company.