Effective: January 1, 2018
Latest Legislation: House Bill 49 - 132nd General Assembly
(A) If a state bank is undercapitalized, the superintendent of financial institutions shall notify the bank of the fact of the undercapitalization. The superintendent may require the bank to submit a written capital restoration plan to the superintendent within forty-five days after the bank receives that notice, unless the superintendent authorizes in writing a longer period of time.
(B) A capital restoration plan required under this section shall specify all of the following:
(1) The steps the state bank will take to become adequately capitalized;
(2) The levels of capital to be attained during the time frame in which the plan will be in effect;
(3) The types and levels of activities in which the bank will engage;
(4) Any other information the superintendent may require.
(C) The superintendent shall approve a capital restoration plan submitted under this section if the superintendent determines that the plan meets both of the following conditions:
(1) It is based on realistic assumptions and is likely to succeed in restoring the bank's capital.
(2) It would not appreciably increase the risk, including credit risk and interest rate risk, to which the bank is exposed.
(D) If the superintendent fails to approve a state bank's capital restoration plan, the superintendent shall notify the bank and require it to submit a revised plan within a time period specified by the superintendent. Upon serving that notice, the superintendent may immediately appoint a conservator for the bank or take any other action authorized under section 1121.32, 1121.33, 1121.34, 1121.35, 1121.41, or 1121.46 of the Revised Code or any other law or rule.
(E) Both of the following apply to any state bank that has submitted and is operating under a capital restoration plan approved under this section:
(1) The bank shall not be be required to submit an additional capital restoration plan based on a revised calculation of its capital measures unless specifically required to do so by the superintendent. A state bank that is notified that it must submit a new or revised plan shall file a written plan with the superintendent within thirty days after the bank receives the notice, unless the superintendent authorizes in writing a different period of time.
(2) The bank may, after prior written notice to and approval by the superintendent, amend its capital restoration plan to reflect a change in circumstance. Until such time as a proposed amendment is approved by the superintendent, the bank shall implement the plan in its current form.
(F)(1) If an undercapitalized bank fails to submit a capital restoration plan required under this section within the designated period of time, upon expiration of that period, the superintendent may immediately appoint a conservator for the bank or take any other action authorized under section 1121.32, 1121.33, 1121.34, 1121.35, 1121.41, or 1121.46 of the Revised Code or any other law or rule.
(2) If an undercapitalized bank fails, in any material respect, to implement a capital restoration plan required under this section, the superintendent may immediately appoint a conservator for the bank or take any other action authorized under section 1121.32, 1121.33, 1121.34, 1121.35, or 1121.41 of the Revised Code or any other law or rule.
(G) Nothing in this section prohibits the superintendent from requiring a state bank to submit a capital restoration plan at any other time the superintendent considers necessary.
Structure Ohio Revised Code
Title 11 | Banks-Savings and Loan Associations
Chapter 1121 | Banks - Superintendent's Powers
Section 1121.01 | Banks - Superintendent's Powers Definitions.
Section 1121.02 | Superintendent and Deputy Superintendent for Banks - Powers and Duties.
Section 1121.03 | Adoption of Administrative Rules.
Section 1121.05 | Granting Rights to Financial Institutions.
Section 1121.06 | Reducing Disadvantage to Ohio Bank or Trust Company.
Section 1121.10 | Examining Records and Affairs.
Section 1121.101 | Frequency of Bank Examinations.
Section 1121.11 | Alternate, Joint or Concurrent Examinations.
Section 1121.12 | Examining Person Who, Directly or Indirectly, Controls Bank.
Section 1121.13 | Examining Other Corporate Persons Who, Directly or Indirectly, Control Banks.
Section 1121.15 | Maintaining Books and Accounts.
Section 1121.16 | Prohibited Acts; Violations.
Section 1121.17 | Executing Documents.
Section 1121.18 | Confidentiality.
Section 1121.19 | Self-Assessment Report.
Section 1121.21 | Reporting Condition and Income.
Section 1121.23 | Criminal Records Check to Be Requested by Superintendent.
Section 1121.24 | Fee; Incomplete Application or Notice of Proposed Action or Transaction.
Section 1121.25 | Request for Confidentiality.
Section 1121.26 | Considering Impact of Proposed Action or Transaction.
Section 1121.27 | Reasonable and Necessary Conditions.
Section 1121.29 | Assessments.
Section 1121.32 | Notice of Charges and Intent to Issue Cease and Desist Order.
Section 1121.35 | Civil Penalty.
Section 1121.37 | Serving Notice.
Section 1121.38 | Administrative Hearing.
Section 1121.39 | Notice Served Within 6 Years of Resignation, Termination or Separation.
Section 1121.41 | Notice of Charges and Intent to Issue Supervision Order.
Section 1121.43 | Monthly Publication by Superintendent of Violations.
Section 1121.45 | Meeting With Regulated Persons.
Section 1121.47 | Superintendent - Order and Subpoena Powers.
Section 1121.48 | Suits and Court Proceedings.
Section 1121.50 | Independent Auditor.
Section 1121.51 | Action to Secure Condition of Assets.