Ohio Administrative Code Title 1301:2 - Division of Financial Institutions: Savings and Loan Associations
Ohio Administrative Code – Title 1301:2: Division of Financial Institutions – Savings and Loan Associations
Title 1301:2 of the Ohio Administrative Code outlines the rules established by the Division of Financial Institutions for the regulation and supervision of Savings and Loan Associations in Ohio.
This title falls under the oversight of the Ohio Department of Commerce, specifically the Division of Financial Institutions (DFI), which regulates financial entities such as banks, credit unions, savings banks, and savings and loan associations to ensure their safe and sound operation in the state.
🔹 Scope and Purpose
The rules under Title 1301:2 are designed to:
Ensure solvency and stability of state-chartered savings and loan associations.
Promote sound lending and investment practices.
Protect the interests of depositors and borrowers.
Set forth the authority and procedures for examinations, reports, capital requirements, and operational conduct.
🔹 Key Topics Typically Covered in Title 1301:2
While the specific rule numbers and headings can change over time, the content often includes the following areas:
1301:2-1 – General Provisions
Definitions and scope of regulation.
Rules of interpretation.
Relationship to federal laws and regulations (e.g., FDIC, OCC, or NCUA standards).
1301:2-2 – Organization and Chartering
Application requirements to organize a state-chartered savings and loan association.
Minimum capital standards.
Procedures for obtaining a charter and beginning operations.
1301:2-3 – Operations and Management
Governance requirements (e.g., directors, officers, and internal controls).
Restrictions on affiliated transactions and insider lending.
Recordkeeping and corporate structure regulations.
1301:2-4 – Examinations and Reporting
Frequency and scope of regulatory examinations.
Requirements for periodic financial reporting to the Superintendent.
Enforcement actions and corrective measures for non-compliance.
1301:2-5 – Lending and Investment Limitations
Permissible loans and investments.
Lending limits based on capital ratios.
Requirements for real estate and commercial lending.
1301:2-6 – Mergers, Conversions, and Dissolutions
Rules governing mergers with other institutions.
Conversions to a bank or federal savings association.
Procedures for voluntary or involuntary dissolution.
🔹 Regulatory Oversight
The Superintendent of Financial Institutions is granted broad authority to:
Conduct examinations.
Approve or deny charter applications.
Enforce corrective actions when safety and soundness are in question.
Coordinate with federal regulators as necessary.
🔹 Compliance with Federal Law
Savings and loan associations are also subject to federal regulation, including:
Federal Deposit Insurance Corporation (FDIC)
Office of the Comptroller of the Currency (OCC) (for federal charters)
Consumer Financial Protection Bureau (CFPB) (for consumer lending practices)
Title 1301:2 often mirrors or references applicable federal requirements, ensuring consistency and regulatory alignment.
RELATED Blog
0 comments