Ohio § 1119.09

§ 1119.09.

(A) To be licensed to operate an agency or branch in this state, a foreign bank shall

pledge assets to the superintendent of financial institutions, of the kinds, in an

amount, and in the manner prescribed by the superintendent, by placing the assets

with a qualified custodian for safekeeping.  The assets pledged are for the benefit of the agency's or branch's unaffiliated

creditors. (B)(1) The value of the assets pledged in accordance with this section shall be computed

based on the lesser of their principal amount or market value. (2) In determining the amount of assets a foreign bank is required to pledge for each

agency or branch, the superintendent shall consider both of the following: (a) The amounts necessary or desirable to maintain a sound financial condition and to

protect depositors, creditors, and the public interest; (b) The concentration of risk to any one borrower or group of related borrowers and the

concentration of transfer risk to any one country, including the country in which

the foreign bank is domiciled. (C) A foreign bank that has pledged assets as required by this section may receive any

income paid on those assets while the foreign bank continues to conduct business in

the ordinary course in this state and the superintendent has not issued a notice prohibiting

the foreign bank's receipt of income paid on the assets the foreign bank has pledged. (D) A foreign bank that has pledged assets as required by this section shall maintain

its pledge with the custodian after the foreign bank ceases to be licensed to operate

the agency or branch, until the superintendent determines that the assets are no longer

necessary for the protection of depositors, creditors, and the public interest. (E) To qualify to hold assets pledged as required by this section, a custodian must be

one of the following: (1) A federal reserve bank located in this state or any branch of a federal reserve bank

located in this state without regard to where the branch is located; (2) A bank that maintains a banking office in this state, if approved by the superintendent; (3) A trust company that maintains a trust service office in this state, if approved

by the superintendent. (F) A custodian of assets pledged as required by this section shall do all of the following: (1) Hold the assets separate from all other assets of the pledging foreign bank and the

custodian; (2) Segregate the assets pledged on the custodian's books and clearly identify them as

pledged in accordance with this section; (3) Release the assets pledged only upon the order of the superintendent or the superintendent's

designee.