Ohio Revised Code
Chapter 1109 | State Banks - Powers
Section 1109.55 | Permitted Transactions With Affiliate.

Effective: January 1, 2018
Latest Legislation: House Bill 49 - 132nd General Assembly
(A) A state bank and its subsidiaries may engage in any of the transactions described in division (B) of this section only if one of the following applies:
(1) The transaction is on terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to the bank or its subsidiary, as those prevailing at the time for comparable transactions with or involving other nonaffiliated companies.
(2) In the absence of comparable transactions, the transaction is on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies.
(B) Division (A) of this section applies to all of the following:
(1) A covered transaction with an affiliate;
(2) The sale of securities or other assets to an affiliate, including assets subject to an agreement to repurchase;
(3) The payment of money or the furnishing of services to an affiliate under contract, lease, or otherwise;
(4) Any transaction in which an affiliate acts as an agent or broker or receives a fee for its services to the bank or to any other person.
(C) No state bank or its subsidiary shall do either of the following:
(1) Purchase as fiduciary any securities or other assets from an affiliate unless the purchase is permitted by one of the following:
(a) The instrument creating the fiduciary relationship;
(b) A court order;
(c) The law of the jurisdiction governing the fiduciary relationship.
(2) Whether acting as principal or fiduciary, knowingly purchase or otherwise acquire, during the existence of any underwriting or selling syndicate, any security if a principal underwriter of the security is an affiliate.
Division (C)(2) of this section does not apply if the purchase or acquisition of the securities has been approved, before the securities are initially offered for sale to the public, by a majority of the directors of the bank who are not officers or employees of the bank or any of its affiliates.
(D) No state bank or affiliate or subsidiary of a state bank shall publish any advertisement or enter into any agreement stating or suggesting the bank shall in any way be responsible for the obligations of its affiliates.
(E) For purposes of division (C) of this section:
(1) "Principal underwriter" means any underwriter, in connection with a primary distribution of securities, that is any of the following:
(a) In privity of contract with the issuer or an affiliated person of the issuer;
(b) Acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate;
(c) Allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution.
(2) "Security" has the same meaning as in section 3(a)(10) of the "Securities Exchange Act of 1934," 48 Stat. 881, 15 U.S.C. 78c(a)(10), as amended.

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.