This is the introductory section to Ohio banking codeand it contains a number of additions that describe the new law.
Here, the additions made by the new lawinclude new definitions, an expansion of the purposes of banking law regulationin Ohio and other transition matters.The new definitions added to Ohio’s statutory bankingcode cover the new financial institution charters added by the new law. Essentially, the new law consolidates all ofOhio’s existing bank charters into one charter for both stock and mutualbanking organizations. The definition of”state bank” for example is broadened to include both savings and loanassociations and savings banks, while old definitions for these terms aredeleted.
Formerly, savings and loanassociations and savings banks had separate charters and separate definitionalsections. A number of new terms areincluded dealing with mutual banks and mutual holding companies.The changes also add an additional purpose for statebanking law: to provide state banks withcompetitive parity with other types of financial institutions doing business inOhio.The changes also provide for a transition to the new law: the new law modifies the powers,privileges, duties and restrictions applicable to existing savings banks andsavings and loan associations so that their powers, rights, duties andrestrictions conform with those conferred and imposed on institutions newlychartered after the effective date of the new law.Another transition matter is the modification ofexisting Ohio law regarding the acceptance of deposits in Ohio to accommodatethe expanded definition of “state bank.” The law removes a current requirement that a bank or bank holdingcompany incorporated in another state or having its principal place of businessin another state establish or acquire a banking office under Ohio law.
The law also removes a prohibition in thecurrent law to permit a depository institution outside of Ohio to establish adeposit account with or for a person in Ohio by means of an automated tellermachine or another money transmission device.This chapter also provides the new law is enforceable bythe Ohio Superintendent of Financial Institutions, the Federal DepositInsurance Corporation, the Federal Reserve, or a state prosecutingattorney. This clarifies that the lawcreates no private right of action or defense for any other entity.