Chapter 1301:2-4 -- Generally

(A) Applications for the organization of a savings and loan association shall be filed with the division of financial institutions in accordance with this rule and sections 1151.02, 1151.03, 1151.04, 1151.06, 1151.07, 1151.08 and 1151.09 of the Revised Code.

(B) The application shall contain:

(1) A comprehensive description of the necessity for the proposed savings and loan association in the community where it is to be located;

(2) A comprehensive description of the reasonable probability of usefulness and success of the savings and loan association’s role of providing credit for the housing needs of its community;

(3) A copy of the proposed articles of incorporation;

(4) Copies of the proposed constitution and bylaws of the savings and loan association on division forms;

(5) A comprehensive statement of the applicant’s plan to help meet the credit needs of its entire community, including low- and moderate-income neighborhoods;

(6) A commitment by the applicant(s) to obtain insurance of the savings and loan association’s accounts from the Federal Deposit Insurance Corporation;

(7) An affidavit from the applicant(s) that the cost of incorporation and all expenses incurred up to the time of commencing business will be borne by the incorporators, unless with prior approval of the superintendent, such cost may be included in the sale price of permanent stock up to a stated minimum amount;

(8) A commitment by the applicant(s) to establish full-time operation of the savings and loan association in suitable, independent quarters;

(9) A comprehensive description of the acquisition or lease of the proposed office premises;

(10) The qualifications, experience and proposed compensation and benefits of proposed officers and directors;

(11) A business plan detailing the savings and loan association’s intention with regard to operating practices, a projected budget, management policies and compensation, lending policies, the payment of dividends and interest, forms the savings and loan association will utilize, and any other information regarding the prudent operation of a savings and loan association;

(12) A legal opinion regarding the validity of the proposed incorporation and stock;

(13) The names and addresses of the proposed incorporators; and

(14) A comprehensive description of the source(s) of capitalization of the savings and loan association.

(C) The authorized capital of a savings and loan association shall be not less than two million dollars nor more than ten million dollars, as the superintendent of savings and loan associations may determine. The superintendent shall also require the applicant to make a nonrefundable cash contribution for operating expenses in an amount to be determined by the superintendent.

(D) The application will be processed in accordance with the provisions of section 1151.03 of the Revised Code. Upon a determination that the application is in compliance with statutory and division requirements, the superintendent will advise the applicant, in writing, to publish within ten days from the date of such advice, in a newspaper printed in the English language and having general circulation in the community to be served by the proposed savings and loan association, a notice of the filing of the application in the form prescribed by the superintendent. Promptly after publication of notice, the applicant shall transmit a copy thereof to the division accompanied by a copy of the publisher’s affidavit of publication. The notice shall be in substantially the following form:

Notice of filing of application for permission to organize a savings and loan association

Notice is hereby given that, pursuant to Chapter 1151. of the Revised Code,

________________ has filed an application with the division of financial

institutions for permission to organize a savings and loan association to be located

at, or in the immediate vicinity of_________________, _____________________,

Ohio. Any person may file communications, including briefs, in favor or in protest

of said application, at the division of savings and loan associations within twenty

days after the date of this publication. If a protest is filed, a public hearing will be

held on this application in accordance with the provisions of Chapter 119. of the

Revised Code.

(1) Upon receipt of an application to establish a savings and loan association, the superintendent may also give notice to any other persons he believes might have an interest in the application, but failure to give notice to such persons having such an interest is not a basis for procedural objection.

(2) Any person may file communications, including briefs, in favor or in protest of the application, at the division of savings and loan associations within twenty days of publication of notice or within twenty days after the date of notification to competing institutions, whichever is later. Two copies of each communication shall be filed with the division.

(3) If a protest is filed, a public hearing will be held on the application in accordance with the provisions of Chapter 119. of the Revised Code.

HISTORY: Prior Eff. 1-1-74, 12-30-82, 1-17-92; Replaces 1301:2-1-13, eff. 6-3-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1155.20

Rule amplifies: RC 1151.02, 1151.03, 1151.04, 1151.06, 1151.07, 1151.08, 1151.09

R.C. 119.032 review dates: 05/24/2009

(A) As used in this rule:

(1) “Acquisition” means a purchase, assignment, transfer, exchange, pledge, or other disposition of voting shares, or an increase in percentage ownership of a state savings and loan association resulting from redemption of voting shares, or a similar transaction.

(2) “Acting in concert” means knowing participation in a joint activity or parallel action towards a common goal of acquiring control of a state savings and loan association, whether or not pursuant to an express agreement.

(3) “Control” means:

(a) The power, directly or indirectly, to direct the management or policies of a state savings and loan association or

(b) Ownership, control of, or the power to vote twenty-five per cent or more of any class of voting securities of a state savings and loan association.

(4) “Immediate family” means a person’s father, mother, stepfather, stepmother, brother, sister, stepbrother, stepsister, son, daughter, stepson, stepdaughter, grandparent, grandson, granddaughter, father-in-law, mother-in-law, the spouse of any of the foregoing, and the person’s spouse.

(5) “Person” means an individual, corporation, partnership, trust, association, joint venture, pool, syndicate, sole proprietorship, unincorporated organization, and any other form of entity; and a voting trust, voting agreement, and any group of persons acting in concert.

(6) “State savings and loan association” means a savings and loan association chartered under the laws of Ohio and includes any savings and loan holding company that has control of any such state savings and loan association, and any other company that controls a state savings and loan association.

(7) “Securities” means all equity interests in a savings and loan association and includes rights, interests, and powers with respect thereto.

(B) Any person, acting directly or indirectly or through or in concert with one or more persons, shall give the superintendent of financial institutions sixty days prior written notice before acquiring control of any state savings and loan association through a purchase, assignment, transfer, exchange, succession, pledge, or other disposition of voting securities of such savings and loan association, or through any other transaction used in lieu of such a purchase, assignment, transfer, exchange, succession, pledge, or other disposition of voting securities of such savings and loan association.

(1) It is presumed, subject to rebuttal, that a person acquiring ownership, control of, or the power to vote ten per cent or more of any class of voting securities of a state savings and loan association constitutes the power to direct that savings and loan association’s management or policies requiring prior notice to the No other person will own, control, or hold the power to vote a greater percentage of that class of voting securities immediately after the transaction. If two or more persons, not acting in concert, each propose to acquire simultaneously equal percentages of 10 percent or more of a class of voting securities of a state savings and loan association, each such person shall file prior notice with the superintendent if either of the following apply:

(a) The state savings and loan association has registered securities under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78); or

(b) No other person will own, control, or hold the power to vote a greater percentage of that class of voting securities immediately after the transaction. If two or more persons, not acting in concert, each propose to acquire simultaneously equal percentages of 10 percent or more of a class of voting securities of a state savings and loan association, each such person shall file prior notice with the superintendent.

(2) It is presumed, subject to rebuttal, that a person is acting in concert with members of the person’s immediate family.

(3) Transactions other than those set forth in paragraph (B)(1) of this rule resulting in a person’s control of less than 25 percent of a class of voting securities of a state savings and loan association are deemed not to constitute control requiring prior notice.

(4) A person may request an opportunity to rebut any presumption established by paragraph (B)(1) and (B)(2) of this rule with respect to a proposed transaction. The superintendent shall afford the person the opportunity to present views in writing or where appropriate, orally before the superintendent or the superintendent’s designated representatives either at informal conference discussions or at informal presentations of evidence. A person rebutting concerted action with a federal regulator may file the information to rebut the presumption filed with the federal regulator with the superintendent.

(C) To request the written consent of the superintendent to a proposed acquisition of control of a state savings and loan association:

(1) A person who is also required to file a notice or application with the office of thrift Supervision in regard to the proposed transaction, pursuant to the Change of Bank Control Act (12 U.S.C. 1817(j)) or section 3 of the Savings and Loan Holding Company Act (12 U.S.C. 1467a), shall file with the superintendent an originally executed copy of the notice or application.

(2) A person who is not required to file a notice or application with the office of thrift supervision in regard to the proposed transaction shall notify the superintendent by letter of the proposed transaction, which letter shall include a summary of the proposed transaction and the reason the person is not required to file a notice or application in regard to the proposed transaction with the federal deposit insurance corporation or the federal reserve system. A person filing notice under this section shall submit the following information:

(a) The identity, personal history, and business background and experience of each person by whom or on whose behalf the acquisition is to be made, including each person’s material business activities and affiliations during the past five years; a description of any material pending legal or administrative proceedings in which each person is a party; and any criminal indictment or conviction of each person by a state or federal court.

(b) A statement of the assets and liabilities of each person by whom or on whose behalf the acquisition is to be made, as of the end of the fiscal year for each of the five years immediately preceding the date of the notice, together with related statements of income and source and application of funds for each of the fiscal years then concluded, all prepared in accordance with generally accepted accounting principles consistently applied; and an interim statement of the assets and liabilities for each person, together with related statements of income and source and application of funds, as of a date not more than ninety days prior to the date of the filing of the notice.

(c) The terms and conditions of the proposed acquisition and the manner in which the acquisition is to be made.

(d) The identity, source, and amount of the funds or other consideration used or to be used in making the acquisition and, if any part of these funds or other consideration has been or is to be borrowed or otherwise obtained for the purpose of making the acquisition, a description of the transaction, the names of the parties, and any arrangements, agreements, or understandings with the parties.

(e) Any plans or proposals any acquiring person may have to liquidate the state bank, to sell its assets or merge it with any company, or to make any other major change in its business or corporate structure or management.

(f) The identification of any person employed, retained, or to be compensated by an acquiring person, or by any person on an acquiring person’s behalf, to make solicitations or recommendations to shareholders for the purpose of assisting in the acquisition, and a brief description of the terms of the employment, retainer, or arrangement for compensation.

(g) Copies of all invitations or tenders or advertisements making a tender offer to stockholders for purchase of their stock to be used in connection with the proposed acquisition.

(h) Any additional relevant information in the form the superintendent may require by rule or by specific request in connection with any particular notice.

(i) Any other information the superintendent requires.

(D) The sixty day notice period specified in paragraph (B) shall not commence until the superintendent has accepted the notice required in paragraph (C)(1) or (C)(2) for processing.

(E) The proposed acquisition of control may be made within sixty days of the superintendent’s acceptance of the notice for processing unless the superintendent has done either of the following:

(1) Disapproved the proposed acquisition of control; or

(2) Extended the time during which the superintendent may disapprove a proposed acquisition of control as follows:

(a) For an additional thirty days in the discretion of the superintendent; or

(b) For two additional extensions of not more than forty-five days each if any of the following applies:

(i) The superintendent determines that any acquiring person has not furnished all of the information required under this rule;

(ii) In the superintendent’s judgment, any material information filed is substantially inaccurate;

(iii) The superintendent has been unable to complete the investigation of an acquiring person because of any delay caused by, or the inadequate cooperation of, that acquiring person;

(iv) The superintendent determines that additional time is needed to investigate and determine whether any acquiring person has a record of failing to comply with the requirements of subchapter II of chapter 53 of subtitle IV of Title 31 of the United States Code.

(F) Any person filing notice under this rule shall be required to publish, within ten days from receipt of the superintendent’s acceptance for processing of information required to be filed under this rule, an announcement on the proposed acquisition in a newspaper of general circulation in the community in which the state savings and loan association has its principal place of business. In the case of information filed with the superintendent in contemplation of a tender offer, publication of the announcement required by this paragraph may be delayed until thirty days after the superintendent’s acceptance of the information for processing. Whenever a person required to publish an announcement pursuant to this paragraph is also required by federal law or regulation to publish an announcement regarding the same transaction, the announcement published pursuant to federal law or regulation shall satisfy the publication requirement of this paragraph if the announcement includes all of the information required by this paragraph. The newspaper announcement shall include:

(1) The name of the state savings and loan association and the name of each person identified in the information as a proposed acquirer and the proposed date of the acquisition of the securities;

(2) A statement that interested persons may submit comments on the proposed acquisition to the superintendent at the superintendent’s place of business for a period of twenty days from the date of publication of the announcement, along with the superintendent’s address; and

(3) A statement that the superintendent will consider all public comments received in writing within the twenty days following the required publication.

(G) The Superintendent may do either of the following with respect to the newspaper publication requirement:

(1) Permit delay of the publication if the superintendent determines, for good cause, that it is in the public interest to grant a delay; or

(2) Shorten the public comment period, waive the public comment, waive the newspaper publication, or act on a notice before the expiration of the a public comment period, if the superintendent determines that either an emergency exists or disclosure of a proposed acquisition, solicitation of the public comment, or delay of its action until expiration of the public comment period would seriously threaten the safety or soundness of a state savings and loan association.

(H) Any person who is required to file information with the superintendent pursuant to paragraph (C)(1) of this rule shall also file with the superintendent any additional information filed with the federal deposit insurance corporation or the office of thrift supervision in connection with a notice regarding the same proposed transaction together with a copy of any request from the federal deposit insurance corporation or office of thrift supervision in response to which such information was filed.

(I) An acquisition of control may be made prior to the expiration of the denial period, or any extension thereof, if the superintendent issues written consent to the acquisition.

(J) The superintendent may deny consent to a proposed acquisition of a controlling interest in a savings and loan association if:

(1) The proposed acquisition of control would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of savings and loan association in any part of this state or any markets served by the state savings and loan association;

(2) The effect of the proposed acquisition of control in any part of this state and any markets served by the state savings and loan association may be substantially to lessen competition, tend to create a monopoly, or in any other manner restrain trade, and the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the acquisition in meeting the convenience and needs of the community to be served;

(3) The financial condition of any acquiring person might jeopardize the financial stability of the savings and loan association or prejudice the interests of the depositors of the state savings and loan association;

(4) The competence, experience, and integrity of any acquiring person or of any of the proposed management personnel indicates that it would not be in the interest of the depositors of the state savings and loan association, or in the interest of the public to permit such person to control the state savings and loan association; or

(5) Any acquiring person neglects, fails, or refuses to furnish the superintendent all the information required by the superintendent; or

(6) The superintendent determines the proposed acquisition would have an adverse effect on the savings association insurance fund administered by the federal deposit insurance corporation.

(K) Within three days after deciding to disapprove any proposed acquisition of control of a state savings and loan association, the superintendent shall notify the acquiring person in writing of the disapproval. The notice of disapproval shall provide a statement of the basis for the disapproval.

(L) Whenever a change in control of a state savings and loan association occurs, the state savings and loan association shall promptly report to the superintendent any changes or replacement of its chief executive officer or of any director occurring in the next twelve-month period, including in its report a statement of the past and current business and professional affiliations of the new chief executive officer or directors.

(M) A person acquiring control of a state savings and loan association is not required to provide prior notice to the superintendent, but is required to notify the superintendent within ninety days after control is acquired and to provide the superintendent with any information requested, if the person has acquired control by any of the following means:

(1) Through testate or intestate succession;

(2) Through a bona fide gift;

(3) In satisfaction of a debt previously contracted in good faith, except that the acquirer of a defaulted loan secured by a controlling amount of savings and loan association voting shares shall file a notice before the loan is acquired:

(4) Redemption of voting shares by the issuing savings and loan association; or

(5) Sale of shares by any shareholder that is not within the control of the person resulting in that person becoming the largest shareholder.

(N) The following transactions do not require a person proposing to acquire control in a state savings and loan association to obtain the prior written consent of the superintendent:

(1) A customary one-time proxy solicitation; and

(2) The receipt of voting securities through a pro rata stock dividend.

HISTORY: Prior Eff. 1-17-92; Replaces 1301:2-1-13, eff. 6-3-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1155.20

Rule amplifies: RC 1151.66

R.C. 119.032 review dates: 05/24/2009

(A) Subject to paragraphs (C), (D), (E) and (F) of this rule, a savings and loan association may contract to receive deposits, renew time deposits, close loans, service loans, and receive payment on loans and other obligations for its customers through an affiliate depository institution, at any and all offices of the affiliate depository institution, without being required to obtain the prior written approval of the superintendent of financial institutions.

(B) Any savings and loan association that wants to contract with an affiliate depository institution to provide services other than those listed in paragraph (A) of this rule or to contract to provide services to customers of a non-affiliate depository institution is required to seek prior approval from the superintendent in accordance with section 1151.053 of the Revised Code.

(C) A savings and loan association may not contract to establish new deposit accounts, extend credit, or create new business relationships through offices of agent depository institutions.

(D) A savings and loan association may not, as agent or as principal through its agent, conduct any activity which the savings and loan association is prohibited from conducting under applicable federal or state law.

(E) All agreements to act as agent pursuant to this rule shall be in writing and address the nature of the services to be provided and the rights and responsibilities of each party.

(F) Any agency relationship shall be on terms that are consistent with safe and sound practices.

(G) The banking office of the depository institution acting as agent pursuant to this rule and section 1151.05 of the Revised Code is not considered to be a branch of the contracting savings and loan association.

HISTORY: Prior Eff. 6-14-01; Replaces 1301:2-1-19, eff. 6-3-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1155.20

Rule amplifies: RC 1151.053

R.C. 119.032 review dates: 05/24/2009

(A) In order to convert from a mutual to a permanent stock form of ownership, a savings and loan association must file an application in accordance with this rule and receive prior written approval thereof from the superintendent.

(B) The application for conversion shall include:

(1) A plan of conversion;

(2) Amendments to the savings and loan association’s articles of incorporation and a check payable to the secretary of state for the applicable filing fee;

(3) Amendments to the savings and loan association’s constitution and bylaws;

(4) A copy of the proxy and soliciting materials to be used; and

(5) Other information as the superintendent may require.

(C) The plan of conversion shall provide:

(1) A comprehensive description of the nontransferable subscription rights received by each eligible accountholder, including details on oversubscriptions;

(2) That the shares of the converting savings and loan association be offered to persons with subscription rights and management, in that order, and that any remaining shares shall be sold either in a public offering through an underwriter or directly by the converting savings and loan association in a direct community offering;

(3) That a direct community offering by the converting savings and loan association shall give a preference to natural persons residing in the counties in which the savings and loan association has an office;

(4) That the sale price of the shares of capital stock to be sold in the conversion shall be a uniform price determined in accordance with paragraph (I) of this rule, and shall specify the underwriting and/or other marketing arrangements to be made;

(5) That the conversion must be completed within twenty-four months from the date the savings and loan association members approve the plan of conversion;

(6) That each savings accountholder of the converting savings and loan association shall receive, without payment, a withdrawable savings account or accounts in the converted savings and loan association equal in withdrawable amount to the withdrawal value of such accountholder’s savings account or accounts in the converting savings and loan association;

(7) For an eligibility record date;

(8) That the expenses incurred in the conversion shall be reasonable;

(9) That the converting savings and loan association shall not loan funds or otherwise extend credit to any person to purchase the capital stock of the savings and loan association;

(10) That the proxies held with respect to voting rights in the savings and loan association will not be voted regarding the conversion, and that new proxies will be solicited for voting on the proposed plan of conversion;

(11) The amount of the deposit of an accountholder shall be the total of the deposit balances in the accountholder’s savings accounts in the converting savings and loan association as of the close of business on the eligibility record date. The plan of conversion may provide that total deposit balances of less than fifty dollars (or any lesser amounts) shall not be considered for purposes of paragraph (C)(6) of this rule; and

(12) That for a period of one year after the date of the conversion, no converted savings and loan association shall repurchase any of its capital stock if the effect thereof would cause the savings and loan association to not meet its capital requirements.

(D) A plan of conversion shall be adopted by not less than two-thirds of the savings and loan association’s board of directors.

(E) Upon determining that an application for conversion is properly executed and is not materially incomplete, the superintendent will advise the savings and loan association, in writing, to publish a notice of the filing of the application. Promptly after receipt of the advice, the savings and loan association shall prominently post the notice in each of its offices and publish the notice in a newspaper printed in the English language and having general circulation in each community in which an office of the savings and loan association is located, as follows:

NOTICE OF FILING OF AN APPLICATION FOR PERMISSION TO CONVERT TO A STOCK SAVINGS AND LOAN APPLICATION

Notice is hereby given that, pursuant to section 1155.27 of the Revised Code_______________________________________________ has filed an application with the Ohio division of financial institutions requesting approval to convert to an Ohio-chartered permanent stock savings and loan association. The proposed plan of conversion will be available for inspection by any member of the savings and loan association at the offices of the division of financial institutions in Columbus, Ohio, and at each office of the savings and loan association. Materials supporting the objections from any member of the savings and loan association or aggrieved person will be considered by the division of savings and loan associations if filed within ten business days after the date of this notice.

(F) Promptly after publication of the notice or notices prescribed in paragraph (E) of this rule, the savings and loan association shall file one copy of the notice together with an affidavit of publication from each publisher with the superintendent.

(G) Following approval of the application for conversion by the superintendent, the plan of conversion shall be submitted to the members at an annual or special meeting and the plan shall be approved, in person or by proxy, by at least a majority of the total outstanding votes of the members of the savings and loan association.

(H) No offer to sell securities of a savings and loan association pursuant to a plan of conversion may be made prior to superintendent approval of the:

(1) Application for conversion;

(2) Proxy statement; and

(3) Offering circular.

(I) If the offering is to commence prior to the meeting of the savings and loan association members held to vote on the plan of conversion, the proxy statement and preliminary offering circular authorized for use by the superintendent shall set forth the estimated price range.

(1) The maximum of such price range should normally be no more than fifty dollars per share or fifteen per cent above the average of the minimum and maximum of such price range.

(2) The minimum of such price range should normally be no less than five dollars per share or no more than fifteen per cent below such average.

(3) No representation may be made in any manner that the superintendent has approved such price information.

(J) Within forty-five days:

(1) Of the date of the mailing of the subscription form, the subscription rights must be exercised.

(2) After the last day of the subscription period, the sale of all shares of capital stock of the converting savings and loan association to be made under the plan of conversion, including any sale in a public offering or direct community marketing, shall be completed.

(K) The converting savings and loan association shall pay interest at not less than the passbook rate on all amounts paid in cash or by check or money order to the savings and loan association to purchase shares of capital stock in the subscription offering or direct community offering from the date payment is received by the savings and loan association until the conversion is completed or terminated.

(L) For the purpose of this rule:

(1) The public offering shall be deemed to commence upon the filing with the superintendent of the preliminary offering circular for the public offering; and

(2) The direct community offering shall be deemed to commence upon the declaration of effectiveness by the superintendent of the final offering circular.

(M) The superintendent may grant a written waiver from any requirement of this rule.

(N) For purposes of this rule:

(1) The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.

(2) The term “person” includes an individual, a group acting in concert, a corporation, a partnership, a savings and loan association, a trust, any unincorporated organization, or a government or political subdivision thereof.

HISTORY: Prior Eff. 1-17-92; Replaces 1301:2-1-16, eff. 6-3-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1155.20

Rule amplifies: RC 1151.27

R.C. 119.032 review dates: 05/24/2009

(A) Transactions made under this rule are subject to the Electronic Fund Transfer Act (15 U.S.C. section 1693 et seq.) and regulation E of the federal reserve board (12 C.F.R. section 205.2).

(B) As used in this rule:

(1) “Generic data” means statistical information which does not identify any individual accountholder.

(2) “Personal security identifier (PSI)” means any word, number, or other security identifier essential for an accountholder to gain access to an account.

(3) “Remote service unit (RSU)” means an information processing device, including associated equipment, structures and systems, by which information relating to financial services rendered to the public is stored and transmitted, instantaneously or otherwise, to a financial institution. Any such device not on the premises of an association that, for activation and account access, requires use of a machine-readable instrument and PSI in the possession and control of an accountholder, is an RSU. The term includes, without limitation, point-of-sale terminals, merchant-operated terminals, cash-dispensing machines, and automated teller machines. It excludes automated teller machines on the premises of an association, unless shared with other financial institutions. An RSU is not a branch, or other type of facility or agency of an association under Chapter 1151. of the Revised Code .

(4) “RSU account” means a savings or loan account or demand account that may be accessed through use of an RSU.

(C) An association may establish or use RSUs and participate with others in RSU operations; however, no RSU may be used to enable accountholders to open a savings account or demand account or to establish a loan account.

(D) An association shall provide a PSI to each accountholder and require its use to gain access to an RSU; it may not employ RSU-access techniques that require the accountholder to disclose a PSI to another person. The association must inform each accountholder that the PSI is for security purposes and shall not be disclosed to third parties. Any device used to activate an RSU shall bear the words “NOT TRANSFERABLE” or the equivalent. A passbook may not be such a device.

(E) An association shall allow accountholders to obtain any information concerning their RSU accounts. Except for generic data or data necessary to identify a transaction, no association may disclose account data to third parties, other than the superintendent or his representatives, unless written consent of the accountholder is given, or applicable law requires. Information disclosed to the superintendent will be kept in a manner to ensure compliance with any applicable privacy law. An association may operate an RSU according to an agreement with a third party or share computer systems, communications facilities, or services of another financial institution only if such third party or institution agrees to abide by this rule as to information concerning RSU accounts in the association.

(F) An association shall take all steps necessary to protect its interest in financial services processed at each RSU, including obtaining available fidelity, forgery, and other appropriate insurance.

(G) All associations shall comply with security requirements of their insuring or guaranteeing agency or as may be required by their surety bond carrier, and shall protect electronic data against fraudulent alterations or disclosure.

(H) An association may share an RSU controlled by an institution not subject to examination by a federal or state regulatory agency only if such institution has agreed in writing that the RSU is subject to such examination by the division of financial institutions.

HISTORY: Prior Eff. 1-17-92; Replaces 1301:2-1-10, eff. 6-3-04

Rule promulgated under: RC 119.03

Rule authorized by: RC 1155.20

Rule amplifies: RC 1151.052

R.C. 119.032 review dates: 05/24/2009