Chapter 1301:2-1 General Provisions

1301:2-1-01 Notification of public hearing.

(A) Reasonable public notice shall be given in the register of Ohio at least thirty days prior to any hearing regarding the proposed adoption, amendment or rescission of any rule for savings and loan associations.

(B) The public notice shall include:

(1) A statement that the superintendent intends to consider adopting, amending, or rescinding a rule;

(2) A synopsis of the proposed rule, amendment, or rescission or a general statement of the subject matter to which the proposed rule, amendment, or rescission relates;

(3) A statement of the reason or purpose for adopting, amending or rescinding the rule; and

(4) The date, time and place of the hearing on the proposed action.

(C) In addition to the public notice given in paragraph (A) of this rule, the superintendent may give whatever other notice he or she reasonably considers necessary, including, but not limited to:

(1) By publication in a financial institutions industry publication of general circulation in Ohio.

(2) By publication in one or more newspapers of general circulation in Ohio.

(3) By mailing notice to affected savings and loan associations.

(4) By electronic posting on the web site of the department of commerce.

(D) The superintendent shall provide a copy of the public notice to any person who requests it and pays the cost of copying and mailing the notice.

Effective: 08/09/2010
R.C. 119.032 review dates: 04/14/2010 and 04/14/2015
Promulgated Under: 119.03
Statutory Authority: 1155.20
Rule Amplifies: 119.03 , 1155.20
Prior Effective Dates: 11-12-72, 6-3-04

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

This rule is issued by the superintendent pursuant to division (C) of section 9.02 of the Revised Code. It establishes the rates and conditions for reimbursement of actual and necessary costs directly incurred by savings and loan associations, as defined in section 1151.01 of the Revised Code, in assembling or providing customer financial records to any party.

(A) Except as provided in this rule or in section 9.02 of the Revised Code, any party, including a governmental authority, that requires or requests a savings and loan association to assemble or provide a customer's financial records shall pay the savings and loan association for all actual and necessary costs directly incurred in searching for, reproducing, or transporting these records according to the following schedule:

(1) Search and processing costs. Reimbursement of search and processing costs shall be the total amount of personnel direct time incurred in locating and retrieving, reproducing, packaging, and preparing financial records for shipment. The rate for search and processing costs is eleven dollars per hour per person, computed on the basis of two dollars and seventy-five cents per quarter hour or fraction thereof, and is limited to the total amount of personnel time spent in locating, retrieving, reproducing, packaging and/or preparing financial records for shipment where required or requested by a party. Specific salaries of such persons shall not be included in search and processing costs. In addition, search and processing costs shall not include salaries, fees, or similar costs for managerial, legal or expert advice for analysis and/or research of material, or time spent for any of these activities. If itemized separately, search and processing costs may include the actual cost of extracting information stored by computer in the format in which it is normally produced, based on computer time and necessary supplies; however, personnel time for computer search may be paid for only at the rate specified in this paragraph.

(2) Reproduction costs. Reimbursement for reproduction costs shall be for costs incurred in making copies of documents required or requested. The rate for reproduction costs for making copies of required or requested documents is twenty-five cents for each page, including copies produced by reader/printer reproduction processes. Copies of photographs, films, and other materials are reimbursed at actual cost.

(3) Transportation costs. Reimbursement for transportation costs shall be for reasonably necessary costs directly incurred to transport personnel to locate and retrieve the required or requested information and to deliver such material to the place of examination.

(B) A savings and loan association is not entitled to reimbursement under this rule for costs incurred in assembling or providing the following records or information related to:

(1) Security interest, bankruptcy claims, debt collection. Any financial records provided as an incident to perfecting a security interest, proving a claim in bankruptcy, or otherwise collecting on a debt owing either to the savings and loan association itself or in its role as a fiduciary.

(2) Nonidentifiable information. Financial records that are not identified with or identifiable as being derived from the financial records of a particular customer.

(3) Financial institution regulatory authorities. Financial records disclosed to a financial institution regulatory authority in the exercise of its supervisory or regulatory functions with respect to a financial institution.

(4) Criminal litigation. Financial records sought pursuant to a subpoena issued by a prosecuting attorney with probable cause or a grand jury.

(C) Payment shall be limited to material required or requested. Payment shall be made only for costs that are directly incurred, actual, and necessary. No payment must be made until the savings and loan association satisfactorily complies with the request or requirement, except that in the case where the request or requirement is withdrawn or revoked, the savings and loan association shall be reimbursed for the actual and necessary costs directly incurred in assembling financial records required or requested to be produced prior to the time the party notifies the savings and loan association that the request or requirement is withdrawn or revoked. No payment is required unless the savings and loan association submits an itemized bill or invoice showing specific details concerning search and processing, reproduction, and transportation costs. Search and processing time should be billed in fifteen minute increments.

(D) For the purposes of this rule, the term "costs directly incurred" means costs incurred solely and necessarily as a consequence of searching for, reproducing, or transporting books, papers, records, or other data, in order to comply with a request or requirement to produce a customer's financial records. The term does not include any allocation of fixed costs (overhead, equipment, depreciation, etc.). If a savings and loan association has financial records that are stored at an independent storage facility that charges a fee to search for, reproduce, or transport particular records requested, these costs are considered to be directly incurred by the savings and loan association.

(E) Where terms used in this rule are defined in section 9.02 of the Revised Code, they shall have the meaning set forth in that section.

Effective: 08/09/2010
R.C. 119.032 review dates: 04/14/2010 and 04/14/2015
Promulgated Under: 119.03
Statutory Authority: 1155.20
Rule Amplifies: 9.02
Prior Effective Dates: 7-9-82, 6-3-04

1301:2-1-03 Record retention.

(A) Every savings and loan association shall retain or preserve the following records and supporting documents for the following periods of time:

(1) For one year:

(a) Broker confirmations, invoices, and statements relating to security transactions of the savings and loan association for or with its customers, after date of transaction:

(b) Corporate resolutions, partnership authorizations, and similar authorizations relating to closed accounts, loans that have been paid, or other completed transactions, after date of closing, payment, or completion:

(c) Ledger records of safe deposit accounts, after date of last entry on the ledger:

(d) Night depository records, after their date:

(e) Records relating to closed Christmas club or similar limited duration special purpose accounts, after date of closing:

(f) Records relating to customer collection accounts, after date of transaction:

(g) Stop payment orders, after their date:

(h) All records relating to closed consumer credit loans and discounts, after date of closing: and (i) Deposit tickets relating to demand deposit accounts, after their date.

(2) For six years:

(a) Deposit and withdrawal tickets relating to open or closed savings accounts, after their date:

(b) Individual ledger sheets or other records serving the same purpose that show a zero balance and that relate to demand, time, or savings deposit accounts, and safekeeping accounts, after date of last entry, or. where the ledger sheets or other records show an open balance, after date of transfer of the amount of the balance to another ledger sheet or record:

(c) Official checks, drafts, money orders, and other instruments for the payment of money issued by the savings and loan association and that have been canceled, after date of issue:

(d) Records relating to closed escrow accounts, after date of closing;

(e) Records, other than corporate resolutions, partnership authorizations, and similar authorizations relating to closed loans and discounts other than consumer credit loans and discounts, after date of closing;

(f) Safe deposit access tickets and correspondence or documents relating to access, after their date;

(g) Lease or contract records relating to closed safe deposit accounts, after date of closing;

(h) Signature cards relating to closed demand, savings, or time accounts, closed safe deposit accounts, and closed safekeeping accounts, after date of closing; and

(i) Undelivered statements for demand deposit, negotiable order of withdrawal, savings, agency, brokerage, or other accounts for which customer statements are prepared, and canceled checks or other items, after date of statement, provided the savings and loan association has attempted to send the statements and checks or other items to its customer, has held them pursuant to the instructions of or an agreement with its customer, or has made them available to its customer.

(3) Permanently:

(a) General ledgers;

(b) Shareholders, directors and executive committee meeting minutes;

(c) Examination reports;

(d) External audit reports; and

(e) Permanent stock certificates.

(B) Every savings and loan association shall return to its costumers the following records:

(1) Passbooks;

(2) Paid off mortgage files;

(3) Tax and insurance bills; and

(4) Paid account and share loan notes.

(C) The superintendent may designate a retention period of either one year or six years for any record maintained by a savings and loan association but not listed in paragraph (A) of this rule. Records that are not listed in paragraph (A) of this rule and for which the superintendent has not designated a retention period shall be retained or preserved for six years from the date of completion of the transaction to which the record relates or. if the last entry has been transferred to a new record showing the continuation of a transaction not yet completed, from the date of the last entry.

(D) In construing the terms set forth in paragraph (A) of this rule, reference may be made to general savings and loan association usage.

(E) A savings and loan association may dispose of any records that have been retained or preserved for the period set forth in paragraphs (A)(1). (A)(2) and (D) of this rule.

(F) Any action by or against a savings and loan association based on. or the determination of which would depend on. the contents of records for which a period of retention or preservation is set forth in paragraphs (A)(1). (A)(2) and (D) of this rule shall be brought within the time for which the record must be retained or preserved.

(G) Where a record may be classified under either paragraph (A)(1) or (A)(2) of this rule, the record shall be retained or preserved for the period set forth in paragraph (A)(2) of this rule.

(H) The provisions of this rule do not apply to those records maintained by a savings and loan association in its capacity as a trust company.

Replaces: 1301:2-1-03

Effective: 08/09/2010
R.C. 119.032 review dates: 04/14/2015
Promulgated Under: 119.03
Statutory Authority: 1155.20
Rule Amplifies: 1155.07
Prior Effective Dates: 3-6-92, 6-3-04

1301:2-1-04 Rules relating to consideration of applications to create a branch office of an association. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-07 Purchase of permanent stock from a decedent's estate. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-08 Bonds for officers and employees. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-09 Reimbursement to building and loan associations for assembling or providing financial records. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-10 Remote service units. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-11 Reserve and net worth requirements. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-12 Repurchase and reverse repurchase agreements. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-13 Acquisition of a controlling interest. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-15 Directors. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-16 Conversion from mutual to stock form of ownership. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-17 Record retention. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-19 Agency agreement between savings and loan association and affiliate and non-affiliate depository institutions. [Rescinded].

Rescinded eff 6-3-04

1301:2-1-20 Operating subsidiaries. [Rescinded].

Rescinded eff 6-3-04