Chapter 1301:9-3 | Credit Union Share Guaranty Corporation

Rule 1301:9-3-05 | Necessity of reinsurance or line of credit.

• Effective: March 24, 2016
• Promulgated Under: 119.03

The superintendent of credit unions or the superintendent of insurance may consider the following criteria, among others, in determining if it is actuarially or financially necessary for a credit union share guaranty corporation to obtain reinsurance or a line of credit from one or more insurance companies or financial institutions:

(A) The operating level of the credit union share guaranty corporation's guarantee fund has not been maintained at the normal operating level as defined by the board of directors of the credit union share guaranty corporation and approved by the superintendent of insurance, and such normal operating level shall at all times not be less than one per cent of the aggregate share capital of the participating credit unions.

(B) The insured shares for any participating credit union exceed more than ten per cent of the aggregate insured shares of the guarantee fund.

(C) Reinsurance is obtained from an insurance company which is not licensed and admitted to do business in the state of Ohio pursuant to Title XXXIX of the Revised Code and where such reinsurance is also not authorized in the state of Ohio.

(D) Whether reinsurance or a line of credit is reasonably available, as to amount and/or cost, as demonstrated by the board and management of the credit union share guaranty corporation.

Last updated September 8, 2023 at 11:19 AM

Supplemental Information

Authorized By: 1761.04
Amplifies: 1761.06
Five Year Review Date: 12/10/2026
Prior Effective Dates: 1/1/1991

Rule 1301:9-3-06 | Notice of termination, nonrenewal or any other lapse of reinsurance or line of credit.

• Effective: March 24, 2016
• Promulgated Under: 119.03

In the event of the termination, nonrenewal or any other lapse of either the credit union share guaranty corporation's reinsurance or line of credit, without replacement by similar reinsurance or line of credit, the credit union share guaranty corporation shall immediately notify the superintendent of credit unions, the superintendent of insurance, the president of the senate and the speaker of the house. Oral notification shall be followed immediately by written notification. Such written notification, delivered certified mail, return receipt requested, shall include:

(A) An assessment of the financial and actuarial impact and significance of the termination, nonrenewal or other lapse of the reinsurance or line of credit, without replacement by similar reinsurance or line of credit, on the credit union share guaranty corporation;

(B) A determination of whether the termination, nonrenewal or other lapse of the reinsurance or line of credit, without replacement by similar reinsurance or line of credit, is material or in the ordinary course of business;

(C) The proposed response of the credit union share guaranty corporation to the termination, nonrenewal or other lapse of the reinsurance or line of credit without replacement by similar reinsurance or line of credit; and

(D) Any other information which may be requested by the superintendent of credit unions, the superintendent of insurance, the president of the senate or the speaker of the house.

Last updated September 8, 2023 at 11:19 AM

Supplemental Information

Authorized By: 1761.04
Amplifies: 1761.06
Five Year Review Date: 12/10/2026
Prior Effective Dates: 1/1/1991

Rule 1301:9-3-09 | Participating credit union financial information.

• Effective: March 24, 2016
• Promulgated Under: 119.03

The financial statements, examination reports, analyses and other information submitted by the superintendent of credit unions or other credit union supervisory authority, the national credit union administration or by participating credit unions to the credit union share guaranty corporation, pursuant to section 1761.08 of the Revised Code, are and shall remain privileged and confidential while in the custody of the credit union share guaranty corporation and as shared with credit union supervisory authorities provided however, that financial statements submitted to the credit union share guaranty corporation pursuant to division (B) of section 1761.08 of the Revised Code are public documents.

Last updated September 8, 2023 at 11:19 AM

Supplemental Information

Authorized By: 1761.04
Amplifies: 1761.08
Five Year Review Date: 12/10/2026
Prior Effective Dates: 1/1/1991

Rule 1301:9-3-13 | Approval of investments.

• Effective: March 24, 2016
• Promulgated Under: 119.03

(A) Except as provided in divisions (A)(1) to (A)(8) of section 1761.13 of the Revised Code, a credit union share guaranty corporation shall not invest or deposit its funds in any manner or make any investment in any company, related or unrelated, without obtaining the prior written approval of the superintendent of credit unions.

(B) As used in paragraph (A) of this rule:

(1) "Company" means any corporation, partnership, association, joint stock company or unincorporated organization.

(2) "Investment" means any equity interest, including, general partnership interests, limited partnership interests in which liability is limited to the amount of the investment, and any bonds, notes, debentures or other evidence of indebtedness of any company.

(3) "Related" means the business or activities of the company are similar to the business and activities of the credit union share guaranty corporation with respect to business, trade, products or services.

(4) "Unrelated" means the business or activities of the company are not similar to the business and activities of the credit union share guaranty corporation with respect to business, trade, products or services.

Last updated September 8, 2023 at 11:23 AM

Supplemental Information

Authorized By: 1761.04
Amplifies: 1761.13
Five Year Review Date: 12/10/2026
Prior Effective Dates: 1/1/1991

Rule 1301:9-3-15 | Actuarial study of capital adequacy and disclosure of examination reports.

• Effective: March 24, 2016
• Promulgated Under: 119.03

(A) The audit examination of the credit union share guaranty corporation by the superintendent of credit unions, conducted not more often than annually and not less than every three years, shall include an actuarial study of the capital adequacy of the credit union share guaranty corporation. The credit union share guaranty corporation will be assessed the costs of the actuarial study.

(B) The superintendent of credit unions shall determine when an actuarial study of the capital adequacy of the credit union share guaranty corporation shall be conducted in accordance with division (C) of section 1761.16 of the Revised Code and shall approve in advance any proposal submitted by the share guaranty corporation concerning the scope of, and the company to perform, such study.

(C) The credit union share guaranty corporation shall provide the superintendent of insurance with a copy of the audit examination report upon completion of such examination.

(D) The credit union share guaranty corporation shall provide the superintendent of credit unions with a copy of the examination report prepared by the superintendent of insurance.

(E) The officers, employees, and agents of a credit union share guaranty corporation shall not disclose the contents of the audit examination report and any other special examination report prepared by the superintendent of credit unions to any person other than to the superintendent of insurance and to those officers, employees or agents of the credit union share guaranty corporation and other state regulatory agencies who have a need for such records in the performance of their duties, unless such disclosure has been approved in advance by the superintendent of credit unions.

Last updated September 8, 2023 at 11:23 AM

Supplemental Information

Authorized By: 1761.04
Amplifies: 1761.16
Five Year Review Date: 12/10/2026
Prior Effective Dates: 1/1/1991