The new law alters existing law with an addition that aconservator’s power to take certain actions must be done in good faith. The new law also expands permitted paymentsto officers and employees within the order of payments of claims against abank’s estate in liquidation or conservatorship. The new law also requires that a receiver’sdestruction of records be done in accordance with applicable law.
I. Chapter 1181The new law eliminates the savings and loan associationand savings bank board, and terminates the savings institutions fund,transferring the balance of such fund to the banks fund (former Sections1181.16, 1181.17, 1181.18 of the Ohio Revised Code, and Section 512.120 of theBanking Bill).
As such, the financial institutions fund is no longer funded bythe savings termination fund, and the new law further clarifies that money inthe financial institutions fund may only be used for the division of financialinstitutions’ operating expenses. Additionally, the offices of deputysuperintendents for savings and loan associations and savings banks areabolished (Section 1181.01). The remaining three deputy superintendents (forbanks, credit unions, and consumer finance), must each have at least fiveyears’ experience in a comparable capacity, as more fully detailed in Section1181.01.
The new law adds the Ohio Credit Services Organization Act (Chapter4712) as a statute under which the deputy superintendent for consumer financeis responsible for conducting investigations.The new law also modifies Section 1181.25, concerningintroduction into evidence in a legal proceeding or other disclosure ofnonpublic information.
The Superintendent may so introduce or discloseprivileged or confidential information in connection with any civil, criminal,or administrative litigation, investigations, or examinations conducted by theSuperintendent, or for licensing or registration purposes through thenationwide mortgage licensing system. The Superintendent is required to obtaina protective order or agreement to protect such information if theSuperintendent believes the recipient may disclose the information. DMS/10644340v.2