Effective: January 1, 2018
Latest Legislation: House Bill 49 - 132nd General Assembly
(A) Except as provided in division (B) of this section, a state bank shall not invest more than fifteen per cent of its capital in the shares, obligations, or other securities of any one issuer.
(B) Division (A) of this section does not apply to any of the following:
(1) Bonds or other obligations enumerated in divisions (A)(1) to (6) of section 1109.32 of the Revised Code;
(2) Investment in a bank subsidiary corporation engaged solely in the business of holding title to real estate described in division (A) of section 1109.31 of the Revised Code;
(3) Obligations or securities, other than stock, of the federal national mortgage association, the student loan marketing association, the government national mortgage association, or the federal home loan mortgage corporation, or their successors;
(4) Common and preferred stock, obligations, and other securities of one domestic reinsurance company with the written permission of the superintendent of financial institutions as required by division (B) of section 1109.34 of the Revised Code;
(5) Shares, obligations, securities, or other interests of any other issuer with the written approval of the superintendent.
(C) For purposes of this section, no purchase by a state bank of stock in a federal reserve bank or federal home loan bank is an investment.
(D) If a state or political subdivision of a state issues securities, acting solely as a conduit for the transmission of the proceeds of the sale of the securities to one or more private entities for economic development purposes and to be repaid solely by the private entity or entities that received the proceeds of the sale of the securities, then both of the following apply for purposes of determining the amount a state bank may invest in accordance with division (A) of this section:
(1) The securities are obligations of the private entity or entities in proportion to their receipt of the proceeds.
(2) The securities are not obligations of the issuing state or political subdivision.
Structure 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 1109.24 | 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 1109.36 | 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.