Ohio § 1322.05

§ 1322.05.

(A) A credit union service organization or depository institution seeking exemption from

registration pursuant to division (H) or (I) of section 1322.04 of the Revised Code or rules adopted by the superintendent in accordance with section 1322.02 of the Revised Code shall submit an application to the superintendent of financial institutions along

with a nonrefundable fee of three hundred fifty dollars for each location of an office

to be maintained by the organization or institution seeking exemption.  The application shall be in a form prescribed by the superintendent and shall include

all of the following: (1) The organization's or institution's business name and state of incorporation or business

registration; (2) The names of the owners, officers, or partners having control of the organization

or institution; (3) An attestation to all of the following: (a) That the organization or institution and its owners, officers, or partners identified

in division (A)(2) of this section have not had a credit union service organization

registration or license, mortgage banker license, mortgage broker certificate of registration,

or mortgage loan originator license, or any comparable authority, revoked in any governmental

jurisdiction; (b) That the organization or institution and its owners, officers, or partners identified

in division (A)(2) of this section have not been convicted of, or pleaded guilty or

nolo contendere to, any of the following in a domestic, foreign, or military court: (i) During the seven-year period immediately preceding the date of application for exemption,

a misdemeanor involving theft or any felony; (ii) At any time prior to the date the application for exemption is approved, a felony

involving an act of fraud, dishonesty, a breach of trust, theft, or money laundering. (c) That, with respect to financing residential mortgage loans, the organization or institution

conducts business with residents of this state or secures its loans with property

located in this state. (4) The names of all mortgage loan originators or licensees under the organization's

or institution's control and direction; (5) An acknowledgment of understanding that the organization or institution is subject

to the regulatory authority of the division of financial institutions as described

in this section; (6) Any further reasonable information that the superintendent may require. (B)(1) If the superintendent determines that the credit union service organization or depository

institution qualifies for exemption, the superintendent shall issue a letter of exemption.  Additional certified copies of a letter of exemption shall be provided upon request

and the payment of seventy-five dollars per copy. (2) If the superintendent determines that the organization or institution does not qualify

for exemption, the superintendent shall issue a notice of denial, and the organization

or institution may request a hearing in accordance with Chapter 119. of the Revised

Code. (C) All of the following conditions apply to any credit union service organization or

depository institution holding a valid letter of exemption: (1) The organization or institution shall be subject to examination in the same manner

as a registrant with respect to the conduct of the organization's or institution's

mortgage loan originators.  In conducting any out-of-state examination, the organization or institution shall

be responsible for paying the costs of the division in the same manner as a registrant. (2) The organization or institution shall have an affirmative duty to supervise the conduct

of its mortgage loan originators, and to cooperate with investigations by the division

with respect to that conduct, in the same manner as is required of registrants. (3) The organization or institution shall keep and maintain records of all transactions

relating to the conduct of its mortgage loan originators in the same manner as is

required of registrants. (4) The organization or institution may provide the surety bond for its licensees in

the same manner as is permitted for registrants. (D) A letter of exemption expires annually on the thirty-first day of December and may

be renewed on or before that date by submitting an application that meets the requirements

of division (A) of this section and a nonrefundable renewal fee of three hundred fifty

dollars for each location of an office to be maintained by the credit union service

organization or depository institution. (E) The superintendent may issue a notice to revoke or suspend a letter of exemption

if the superintendent finds that the letter was obtained though a false or fraudulent

representation of a material fact, or the omission of a material fact, required by

law, or that a condition for exemption is no longer being met.  Prior to issuing an order of revocation or suspension, the credit union service

organization or depository institution shall be given an opportunity for a hearing

in accordance with Chapter 119. of the Revised Code. (F) All information obtained by the division pursuant to an examination or investigation

under this section shall be subject to the confidentiality requirements set forth

in section 1322.36 of the Revised Code . (G) All money collected under this section shall be deposited into the state treasury

to the credit of the consumer finance fund created in section 1321.21 of the Revised Code .