Ohio § 1112.12

§ 1112.12.

(A) Prior to transacting any business as a licensed family trust company, a family trust

company shall pledge to the superintendent of financial institutions interest-bearing

securities authorized in division (B) of this section, having a par value, not including

unaccrued interest, of one hundred thousand dollars, and approved by the superintendent.  The family trust company may pledge the securities either by delivery to the superintendent

or by placing the securities with a qualified trustee for safekeeping to the account

of the superintendent of financial institutions. (B) Securities pledged by a family trust company to satisfy the requirements of division

(A) of this section shall be one or more of the following, provided that the bonds

or other obligations are rated at the time of purchase in the three highest classifications

established by at least one nationally recognized statistical rating organization

and purchased through a registered securities broker or dealer: (1) Bonds, notes, or other obligations of or guaranteed by the United States or for which

the full faith and credit of the United States is pledged for the payment of principal

and interest; (2) Bonds, notes, debentures, or other obligations or securities issued by any agency

or instrumentality of the United States. (C) The superintendent of financial institutions shall review, approve, and accept delivery

of securities pursuant to this section and shall issue a written acknowledgment of

the delivery of the securities or the qualified trustee's receipt and the superintendent's

approval to the family trust company. (D) The superintendent shall approve securities to be pledged by a family trust company

pursuant to this section if the securities are all of the following: (1) Interest-bearing and of the value required by division (A) of this section; (2) Of one or more of the kinds authorized by division (B) of this section and not a

derivative of or merely an interest in any of those securities; (3) Not in default. (E) The superintendent of financial institutions shall permit a family trust company

to pledge securities in substitution for securities pledged pursuant to this section

and the withdrawal of the securities substituted for so long as the securities remaining

pledged satisfy the requirements of division (A) of this section.  The superintendent shall permit a family trust company to collect interest paid

on securities pledged pursuant to this section so long as the family trust company

is solvent.  The superintendent shall permit a licensed family trust company to withdraw securities

pledged pursuant to this section when the family trust company has discontinued its

business as a licensed family trust company in this state. (F) For purposes of this section, a qualified trustee is a federal reserve bank, a federal

home loan bank, a trust company as defined in section 1101.01 of the Revised Code , or a bank or savings association that has pledged securities pursuant to section 1111.04 of the Revised Code , is authorized to accept and execute trusts, and is doing business under authority

granted by the comptroller of the currency. (G) The superintendent shall prescribe the form of all receipts and acknowledgments provided

for by this section, and upon request shall furnish a copy of each form, with the

superintendent's certification attached, to each qualified trustee eligible to hold

securities for safekeeping under this section.