Chapter 113-7 | Linked Deposit Program

Rule 113-7-01 | Linked deposit program definitions.

• Effective: January 1, 2024
• Promulgated Under: 111.15

(A) As used in this chapter:

(1) "Active deposit" shall have the same meaning as in section 135.01 of the Revised Code.

(2) "Eligible credit union" shall have the same meaning as in section 135.62 of the Revised Code

(3) "Deposit Agreement" means the agreement between the eligible credit union and the treasurer of state entered into pursuant to section 135.623 or section 135.703 of the Revised Code.

(4) "Interim deposit" and "interim moneys" shall have the same meanings as in section 135.01 of the Revised Code.

(5) "Interim funds" means public moneys in the state treasury that are not active deposits and may be invested in accordance with section 135.143 of the Revised Code.

(6) "Linked deposit program" shall have the same meaning as in sections 135.62 and 135.70 of the Revised Code.

(7) "Public deposit" shall have the same meaning as in section 135.01 of the Revised Code.

(8) "Public depository" shall have the same meaning as in section 135.01 of the Revised Code.

(9) "Public moneys" shall have the same meaning as in section 135.01 of the Revised Code.

(10) "Treasurer of state's assessment rate" shall have the same meaning as in section 135.62 of the Revised Code.

(11) "Uninsured public deposit" means the portion of a public deposit that is not insured by the national credit union administration or any other agency or instrumentality of the federal government.

(B) This chapter shall govern the participation of eligible credit unions in linked deposit programs, as authorized under section 135.61 of the Revised Code. Any requirements of Chapter 135. of the Revised Code generally applicable to a public depository and not expressly clarified in this chapter shall be applicable to an eligible credit union.

Last updated January 2, 2024 at 9:06 AM

Supplemental Information

Authorized By: 135.61
Amplifies: 135.61, 135.62, 135.70
Five Year Review Date: 12/31/2028
Prior Effective Dates: 11/5/2019, 11/7/2021

Rule 113-7-02 | Eligibility of credit unions.

• Effective: January 1, 2024
• Promulgated Under: 111.15

(A) Pursuant to division (A)(8) of section 135.143 of the Revised Code, the treasurer of state may invest or execute transactions for the interim funds of the state in the various linked deposit programs subject to the limitations and provisions set forth in section 135.61 of the Revised Code.

(B) The state board of deposit shall designate eligible credit unions as public depositories pursuant to section 135.12 of the Revised Code. Such designation applies only for interim deposits, not for active deposits, in accordance with section 135.143 of the Revised Code.

(C) No eligible credit union is eligible to become a public depository or to receive any new interim funds if the eligible credit union or any of its directors, officers, employees, or controlling shareholders or persons is currently a party to an active final or temporary cease-and-desist order issued to ensure the safety and soundness of the institution.

(D) No eligible credit union is eligible to receive or hold interim deposits other than those invested by the treasurer of state through the various linked deposit programs authorized under section 135.61 of the Revised Code.

(E) Eligible credit unions may not engage in the redeposit of public moneys pursuant to section 135.145 of the Revised Code.

Last updated January 2, 2024 at 9:07 AM

Supplemental Information

Authorized By: 135.61
Amplifies: 135.61, 135.62, 135.70
Five Year Review Date: 12/31/2028

Rule 113-7-03 | Application for and investment of interim moneys for credit unions.

• Effective: January 1, 2024
• Promulgated Under: 111.15

(A) Share certificates purchased and deposit accounts placed by the treasurer of state pursuant to the various linked deposit programs authorized under section 135.61 of the Revised Code are public deposits for the purposes of Chapter 135. of the Revised Code.

(B) Each eligible credit union desiring to participate in any linked deposit program as a public depository of interim moneys of the state shall, not more than one hundred twenty days prior to the date fixed by section 135.12 of the Revised Code for the designation of public depositories, make application therefor in writing to the state board of deposit. Such application shall specify the maximum amount of such public moneys which the applicant desires to receive and have on deposit as interim moneys at any one time during the period covered by the designation, provided that it shall not apply for more than thirty per cent of its total assets as revealed by its latest report to the national credit union administration, subject to the limitations of Chapter 135. of the Revised Code.

Each application shall be accompanied by a financial statement of the applicant, under oath of its cashier, treasurer, or other officer, in such detail as to show the capital funds of the applicant, as of the date of its latest report to the national credit union administration, and adjusted to show any changes therein made prior to the date of the application.

(C) Pursuant to section 135.13 of the Revised Code, interim moneys shall be evidenced by time certificates of deposit or by savings or deposit accounts, including, but not limited to, passbook accounts, share accounts, or share certificates.

(D) Interest on interim moneys shall be paid or credited by an eligible credit union to the treasurer of state according to the terms and conditions of the deposit agreement.

(E) An officer, director, shareholder, employee, or owner of any interest in an eligible credit union receiving interim moneys pursuant to the various linked deposit programs authorized under section 135.61 of the Revised Code shall not be deemed to be interested, either directly or indirectly, as a result of such relationship, in such interim moneys for the purpose of any law of this state prohibiting an officer of the state or of any subdivision from being interested in any contract of the state or of the subdivision.

Last updated January 2, 2024 at 9:07 AM

Supplemental Information

Authorized By: 135.61
Amplifies: 135.61, 135.62, 135.70
Five Year Review Date: 12/31/2028

Rule 113-7-04 | Collateral and insurance.

• Effective: January 1, 2024
• Promulgated Under: 111.15

(A) Each eligible credit union receiving interim moneys under the various linked deposit programs authorized under section 135.61 of the Revised Code shall provide security for the repayment of all interim moneys by securing all uninsured public deposits of the state as set forth in divisions (B) to (J) of section 135.18 of the Revised Code.

(B) The treasurer of state shall not take into account private share insurance held by an eligible credit union when calculating the uninsured amount of public moneys held by such eligible credit union. All public moneys held by an eligible credit union that are not insured by the national credit union administration or another agency or instrumentality of the federal government are uninsured public deposits that must be collateralized in accordance with section 135.18 of the Revised Code.

(C) The treasurer of state will not accept private excess share insurance as collateral for interim moneys held by an eligible credit union pursuant to the various linked deposit programs authorized under section 135.61 of the Revised Code.

Last updated January 2, 2024 at 9:07 AM

Supplemental Information

Authorized By: 135.61
Amplifies: 135.61, 135.62, 135.70
Five Year Review Date: 12/31/2028
Prior Effective Dates: 11/7/2021

Rule 113-7-05 | Treasurer of state's assessment rate.

• Effective: January 2, 2024
• Promulgated Under: 119.03

(A) The treasurer of state may require an eligible credit union that holds public deposits under section 135.61 of the Revised Code to pay interest at a rate not lower than the product of the interest rate set in the deposit agreement multiplied by the sum of one plus the treasurer of state's assessment rate.

(B) The treasurer of state's assessment rate shall be less than or equal to three per cent.

Last updated January 2, 2024 at 9:07 AM

Supplemental Information

Authorized By: 135.61
Amplifies: 135.61, 135.62, 135.622, 135.70, 135.702
Five Year Review Date: 12/31/2028
Prior Effective Dates: 11/5/2019