The new law alters existing law with an addition that a
conservator’s power to take certain actions must be done in good faith.  The new law also expands permitted payments
to officers and employees within the order of payments of claims against a
bank’s estate in liquidation or conservatorship.  The new law also requires that a receiver’s
destruction of records be done in accordance with applicable law.

I.                  
Chapter 1181

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The new law eliminates the savings and loan association
and savings bank board, and terminates the savings institutions fund,
transferring the balance of such fund to the banks fund (former Sections
1181.16, 1181.17, 1181.18 of the Ohio Revised Code, and Section 512.120 of the
Banking Bill). As such, the financial institutions fund is no longer funded by
the savings termination fund, and the new law further clarifies that money in
the financial institutions fund may only be used for the division of financial
institutions’ operating expenses. Additionally, the offices of deputy
superintendents for savings and loan associations and savings banks are
abolished (Section 1181.01). The remaining three deputy superintendents (for
banks, credit unions, and consumer finance), must each have at least five
years’ experience in a comparable capacity, as more fully detailed in Section
1181.01. The new law adds the Ohio Credit Services Organization Act (Chapter
4712) as a statute under which the deputy superintendent for consumer finance
is responsible for conducting investigations.

The new law also modifies Section 1181.25, concerning
introduction into evidence in a legal proceeding or other disclosure of
nonpublic information. The Superintendent may so introduce or disclose
privileged or confidential information in connection with any civil, criminal,
or administrative litigation, investigations, or examinations conducted by the
Superintendent, or for licensing or registration purposes through the
nationwide mortgage licensing system. The Superintendent is required to obtain
a protective order or agreement to protect such information if the
Superintendent believes the recipient may disclose the information.

DMS/10644340v.2

 

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