Ohio § 1733.181

§ 1733.181.

(A)(1) Whenever, in the opinion of the superintendent of credit unions, any director, officer,

committee member, employee, agent, or other person participating in the conduct of

the affairs of a credit union has committed any violation of law or rule, or of a

cease-and-desist order, or has engaged or participated in any unsafe or unsound practice

in connection with the credit union, or has committed or engaged in any act, omission,

or practice which constitutes a breach of his fiduciary duty as director, officer,

committee member, or other person, and the superintendent determines that the credit

union has suffered or will probably suffer substantial financial loss or other damage

or that the interests of its members could be seriously prejudiced by reason of such

violation or practice or breach of fiduciary duty, the superintendent may serve upon

such director, officer, committee member, or other person a written notice of his

intention to remove him from office. (2) Whenever, in the opinion of the superintendent, any director, officer, or committee

member of a credit union, by conduct or practice with respect to another credit union

or other business institution which resulted in substantial financial loss or other

damage, has evidenced his personal dishonesty or unfitness to continue as a director,

officer, or committee member, and whenever, in the opinion of the superintendent,

any other person participating in the conduct of the affairs of the credit union,

by conduct or practice with respect to such credit union or another credit union or

other business institution which resulted in substantial financial loss or other damage,

has evidenced his personal dishonesty or unfitness to participate in the conduct of

the affairs of such credit union, the superintendent may serve upon such director,

officer, committee member, or other person a written notice of his intention to remove

him from office or to prohibit his further participation in any manner in the conduct

of the affairs of such credit union. (3) With respect to any director, committee member, or officer of a credit union or any

other person, the superintendent may, if he considers it necessary for the protection

of the credit union or the interests of its members, by written notice to such effect

served upon such director, committee member, officer, or other person, suspend him

from office or prohibit him from further participation in any manner in the conduct

of the affairs of the credit union.  Such suspension or prohibition shall become effective upon service of such notice

and shall remain in effect pending the completion of the administrative proceedings

and until such time as the superintendent dismisses the charges specified in such

notice, or, if an order of removal or prohibition is issued against the director,

officer, or committee member or other person, until the effective date of any such

order.  Copies of any such notice shall also be served upon the credit union of which such

person is a director, officer, or committee member or in the conduct of whose affairs

he has participated. (B) A notice of intention to remove a director, officer, committee member, or other person

or to prohibit his participation in the conduct of the affairs of a credit union,

as served under division (A)(1) or (2) of this section, shall contain a statement

of the facts constituting the grounds therefor, and shall inform the director, officer,

committee member, or other person that he may request an adjudication hearing on the

question of his removal or prohibition.  Such a hearing shall be conducted in accordance with section 119.09 of the Revised Code .  If the director, officer, committee member, or other person does not request a hearing,

he shall be deemed to have consented to the issuance of an adjudication order of removal

or prohibition.  In the event of such consent, or if upon the record of such hearing the superintendent

finds that any of the grounds specified in the notice have been established, he may

issue an adjudication order removing the director, officer, committee member, or other

person, or prohibiting his participation in the conduct of the affairs of the credit

union. (C) Except as otherwise provided in this division, any person who is removed from the

board of directors of a credit union under division (B) of this section, and who either

does not appeal his removal or whose removal is upheld upon appeal, is forever disqualified

from serving as a director of any credit union.  If, however, the superintendent, upon written application of the person removed,

and pursuant to an adjudication conducted in accordance with Chapter 119. of the Revised

Code, finds a compelling reason for removing the disqualification of this division,

he may issue an adjudication order removing the disqualification and declaring the

person again eligible to serve as a director of a credit union.