This is the introductory section to Ohio banking code
and it contains a number of additions that describe the new law. Here, the additions made by the new law
include new definitions, an expansion of the purposes of banking law regulation
in Ohio and other transition matters.
The new definitions added to Ohio’s statutory banking
code cover the new financial institution charters added by the new law. Essentially, the new law consolidates all of
Ohio’s existing bank charters into one charter for both stock and mutual
banking organizations. The definition of
“state bank” for example is broadened to include both savings and loan
associations and savings banks, while old definitions for these terms are
deleted. Formerly, savings and loan
associations and savings banks had separate charters and separate definitional
sections. A number of new terms are
included dealing with mutual banks and mutual holding companies.
The changes also add an additional purpose for state
banking law: to provide state banks with
competitive parity with other types of financial institutions doing business in
The changes also provide for a transition to the new law:
the new law modifies the powers,
privileges, duties and restrictions applicable to existing savings banks and
savings and loan associations so that their powers, rights, duties and
restrictions conform with those conferred and imposed on institutions newly
chartered after the effective date of the new law.
Another transition matter is the modification of
existing Ohio law regarding the acceptance of deposits in Ohio to accommodate
the expanded definition of “state bank.”
The law removes a current requirement that a bank or bank holding
company incorporated in another state or having its principal place of business
in another state establish or acquire a banking office under Ohio law. The law also removes a prohibition in the
current law to permit a depository institution outside of Ohio to establish a
deposit account with or for a person in Ohio by means of an automated teller
machine or another money transmission device.
This chapter also provides the new law is enforceable by
the Ohio Superintendent of Financial Institutions, the Federal Deposit
Insurance Corporation, the Federal Reserve, or a state prosecuting
attorney. This clarifies that the law
creates no private right of action or defense for any other entity.