Ohio Code 1109.44 – Investing in bank subsidiary corporations and bank service corporations
(A) A state bank may invest, in the aggregate, twenty-five per cent of its assets in the stock, obligations, and other securities of bank subsidiary corporations and bank service corporations.
Terms Used In Ohio Code 1109.44
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- state: means the state of Ohio. See Ohio Code 1.59
(B) A state bank shall obtain the approval of the superintendent of financial institutions prior to investing in, acquiring, or establishing a bank subsidiary corporation or bank service corporation, or performing any new activities in a bank subsidiary corporation or bank service corporation.
(C)(1) A bank subsidiary corporation that is a wholly owned subsidiary of the state bank may engage in any activities, except taking deposits, that are a part or an extension of the business of banking.
(2) A bank service corporation shall be owned solely by one or more banks, and may, at any location, do any of the following:
(a) Provide clerical, bookkeeping, accounting, statistical, or similar services;
(b) Engage in any activities, except taking deposits, that all of its owner banks are authorized to engage in;
(c) Engage in any activity, except taking deposits, the board of governors of the federal reserve system has determined to be permissible for a financial holding company under section 4(k)(1) of the “Bank Holding Company Act of 1956,” as amended, 70 Stat. 133, 12 U.S.C.A. 1843(k)(1).
(D) Bank subsidiary corporations and bank service corporations are subject to examination and regulation by the superintendent.
(E) A bank subsidiary corporation or a bank service corporation may invest in a lower-tier bank subsidiary corporation or bank service corporation, subject to the requirements of this section.