Ohio Revised Code
Chapter 1109 | State Banks - Powers
Section 1109.24 | Extending Credit to Executive Officer - Reports.

Effective: January 1, 2018
Latest Legislation: House Bill 49 - 132nd General Assembly
(A) Except as authorized by this section or section 1109.23 of the Revised Code, no state bank may extend credit in any manner to any of its own executive officers. No executive officer of a state bank may become indebted to that bank except by means of an extension of credit the bank is authorized by this section to make. Any extension of credit made pursuant to this section shall be promptly reported to the bank's board of directors and may be made only if all of the following apply:
(1) The state bank would be authorized to make the extension of credit to other borrowers.
(2) The extension of credit is on terms that are not more favorable than those afforded to other non-executive borrowers.
(3) The executive officer has submitted a detailed, current financial statement.
(4) The extension of credit is made on the condition that it shall become due and payable on demand of the state bank at any time when the executive officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories referred to in divisions (B), (C), and (D) of this section in an aggregate amount greater than the amount of credit of the same category the state bank being served as an executive officer could extend to the executive officer.
(B) With the specific prior approval of its board of directors, a state bank may make a loan to any of its executive officers if, at the time the loan is made, both of the following apply:
(1) The loan is secured by a first lien on a dwelling that is expected, after the loan is made, to be owned by the executive officer and used as the executive officer's residence.
(2) No other loan by the bank to the executive officer under the authority of this division is outstanding.
(C) A state bank may make extensions of credit to any executive officer of the bank to finance the education of the executive officer's children.
(D) A state bank may make extensions of credit not otherwise specifically authorized by this section to any of the bank's executive officers in an amount prescribed by the superintendent of financial institutions.
(E) Except to the extent permitted by division (D) of this section, a state bank may not extend credit to a partnership in which one or more of the bank's executive officers are partners having, individually or together, a majority interest. For purposes of division (D) of this section, the full amount of the credit extended shall be considered to have been extended to each executive officer of the bank who is a member of the partnership.
(F) This section does not prohibit any executive officer of a state bank from endorsing or guaranteeing any loan or other asset previously acquired by the bank in good faith, for the protection of the bank, or incurring any indebtedness to the bank for the purpose of either protecting the bank against loss or giving financial assistance to the bank.
(G) Each state bank shall include with, but not as part of, each report of condition made to the superintendent pursuant to section 1121.21 of the Revised Code, a report of all loans made under the authority of this section by the bank since the bank's previous report of condition.
(H) Each day any extension of credit in violation of this section exists is a continuation of the violation for purposes of section 1121.35 of the Revised Code.

Structure Ohio Revised Code

Ohio Revised Code

Title 11 | Banks-Savings and Loan Associations

Chapter 1109 | State Banks - Powers

Section 1109.01 | Bank Powers, Rights and Privileges Generally.

Section 1109.02 | Additional and Incidental Powers.

Section 1109.021 | Election to Operate as a Savings and Loan Association.

Section 1109.03 | Federal Deposit Insurance Corporation and Federal Reserve Requirements.

Section 1109.04 | Good Faith Reliance; Electronic Statements and Notice.

Section 1109.05 | Deposit Contracts.

Section 1109.06 | Designating on Signature Card Deposit Is in Trust for Another.

Section 1109.07 | Deposits Payable to Survivor - Deposits Payable on Death.

Section 1109.08 | Safes, Vaults, Safe Deposit Boxes, Night Depositories.

Section 1109.09 | Accounts and Safe Deposit Box Rentals for Minors.

Section 1109.10 | Claims Adverse to Deposits or Property.

Section 1109.11 | Deposits Entered as u.s. Money.

Section 1109.15 | Permitted Transactions.

Section 1109.151 | No Fiduciary Relationship Created.

Section 1109.16 | Standards for Extensions of Credit.

Section 1109.17 | Accepting Drafts or Bills of Exchange.

Section 1109.18 | Extending Credit Pursuant to Revolving Credit Agreement.

Section 1109.181 | Charges Under Revolving Credit Agreement.

Section 1109.20 | Interest and Finance Charge Rates.

Section 1109.22 | Total Loans and Extensions of Credit to Person Outstanding at Any One Time.

Section 1109.23 | Extending Credit to Executive Officers, Directors, Principal Shareholders or to Related Interests.

Section 1109.24 | Extending Credit to Executive Officer - Reports.

Section 1109.25 | Bank's Own Stock as Security or Payment.

Section 1109.26 | Owning or Holding Real Estate or Stock Acquired in Satisfaction of Debt.

Section 1109.31 | Real Estate Investments.

Section 1109.32 | Bonds, Notes and Other Debt Securities as Investments.

Section 1109.33 | Investing in Stock of Federally Chartered Banks.

Section 1109.34 | Investing in Securities of Domestic Insurance Company.

Section 1109.35 | Investing in Venture Capital Firms, Small Businesses and Economic Development Corporations.

Section 1109.36 | Underwriting and Dealing in Guaranteed and Acceptable Debt Securities.

Section 1109.39 | Additional Stock Investments.

Section 1109.40 | Additional Authority for Loans and Investments.

Section 1109.43 | Investing in Bankers' Bank or Holding Company.

Section 1109.44 | Investing in Bank Subsidiary Corporations and Bank Service Corporations.

Section 1109.441 | Additional Investment Authority.

Section 1109.45 | Investing in Clearing Corporation.

Section 1109.47 | Limiting Investing in One Issuer.

Section 1109.48 | Investing in Firms Owned and Controlled by Minorities or Women.

Section 1109.49 | Furnishing Financial Information to Superintendent.

Section 1109.53 | Transactions With Affiliates Definitions.

Section 1109.54 | Conditions for Engage in Covered Transaction With Affiliate.

Section 1109.55 | Permitted Transactions With Affiliate.

Section 1109.56 | Rules for Transactions With Affiliates.

Section 1109.59 | Authority to Borrow.

Section 1109.61 | Paying Management and Consulting Fees.

Section 1109.62 | Selling Insurance.

Section 1109.63 | Coin and Bullion.

Section 1109.64 | Travel Services.

Section 1109.65 | Tax Certificate Purchase.

Section 1109.68 | Using Copying or Reproduction Processes.

Section 1109.69 | Record Retention.

Section 1109.73 | Proceeding for Partition.

Section 1109.75 | Securitization.