(A) As used in this chapter, "state entity" means any state entity, board, commission, or retirement system.
(B) Any state entity requesting a custodial bank account must do so in writing to the treasurer. Specific statutory authority to establish an account outside of the state treasury must be cited.
(C) The treasurer shall make a recommendation to the state board of deposit for award of the custodial bank account to a designated financial institution eligible to hold active deposits in accordance with section 135.12 of the Revised Code. Banking needs of the state entity will be taken into consideration during this process.
(D) The award of a custodial bank account shall remain in effect until the next designation period as mandated by section 135.12 of the Revised Code unless a state entity requests a change of financial institution, and such request is approved by a majority vote of the board of deposit.
(E) Within three business days of the physical receipt (e.g., cash or checks) by a state entity or the electronic deposit (e.g., checks scanned for deposit, wire or ACH transactions, or revenue from financial transaction devices) into a state entity's custodial bank account established by the treasurer, all amounts received shall be electronically reported to the treasurer as revenue via a method approved by thetreasurer.
(F) State entities making investments shall provide the treasurer a list of individuals who are authorized to provide investment instructions, including cash requirements and participation in the state treasurer's investment pool.
(G) State entities with custodial bank accounts shall provide the treasurer with a list of individuals who are authorized to request withdrawals from the custodial bank account. Withdrawals shall be by a payment instrument approved by the treasurer including but not limited to check, initiating book transfers, or wire or ACH transactions. Authorized individuals who will be signing checks, initiating book transfers, or initiating wire or ACH transactions drawn on the custodial bank account must also provide their signature on a form as specified by the financial institution.
(H) At the discretion of the treasurer, a retirement system may be granted permission to designate authorized individuals to initiate and process book transfers, and wire or ACH transactions.
(I) Each state entity shall keep its list of individuals authorized in accordance with paragraphs (G) and (H) of this rule current and shall immediately notify the treasurer and the financial institution(s) which has been awarded its custodial account(s) in writing if an authorized individual's authority has been revoked.
(J) The complete list of authorized individuals and their account access will be subject to attestation on at least an annual basis.
(K) Withdrawals shall be requested by an individual authorized in accordance with paragraphs (G) and (H) of this rule via a method approved by the treasurer. By executing the request, the individual certifies that the withdrawal or expenditure of funds from a custodial bank account is for a proper and legitimate use of such funds. Relying upon the state entity's verification of cash availability, the treasurer shall process the request for withdrawal by book transfer, or wire or ACH transactions as indicated on the request to the treasurer.
(L) State entities with custodial bank accounts may issue checks drawn on the accounts, either directly through the financial institution or manually. When manually writing checks, the state entity must take proper steps to safeguard the integrity and security of the check stock by implementing advanced security measures.
(M) State entities must report to the treasurer the total dollar amount of checks cleared daily.
(N) State entities can check activity in their custodial bank account(s) using the designated financial institution's web portal, including cashed, unredeemed, and returned items.
Last updated June 11, 2026 at 2:03 AM