Ohio § 1733.24

§ 1733.24.

(A) A credit union is authorized to receive funds for deposit in share accounts, share

draft accounts, and share certificates from its members, from other credit unions,

and from an officer, employee, or agent of the federal, state, or local governments,

or political subdivisions of the state, in accordance with such terms, rates, and

conditions as may be established by its board of directors, and for purposes of the

linked deposit programs created under sections 135.61 to 135.66 of the Revised Code and sections 135.70 to 135.71 of the Revised Code . (B) The shares and share accounts of the credit union may be of one or more classes,

as designated by the board of directors, subject to approval of the superintendent

of credit unions based on rules that shall assure equitable distribution of dividends

among classes, considering costs and advantages of each class to the members of the

credit union, including without limitation special services rendered, length of ownership,

minimum investment, conditions of repurchase, and other appropriate standards or combinations

thereof.  In the event the articles of incorporation of the credit union indicate the authorized

number of shares to be unlimited, the designation of classification of shares and

share accounts of the credit union may be effected by the board of directors, subject

to the approval of the superintendent, and does not require amendment of the articles

of incorporation.  All shares of the credit union shall have a par value per share as set by the board

of directors.  Redemptions and liquidating dividends shall be prorated to each member on the basis

of the price paid the credit union for such share, irrespective of the class of such

shares. (C)(1) Each credit union shall have one class of shares designated as “membership share.”

 The membership shares, or if a credit union has but one class of shares, then all

of the shares of the credit union, shall have a par value as set by the board of directors. (2) Two or more persons that are eligible for membership that have jointly subscribed

for one or more shares under a joint account each may be admitted to membership. (D) A credit union need not issue certificates for any or all of its classes of shares

but irrespective of whether certificates are issued, a registry of shares must be

kept, including all of the transactions of the credit union pertaining to such shares. (E) A credit union is authorized to maintain share draft accounts in accordance with

rules prescribed by the superintendent.  The credit union may pay dividends on share draft accounts, may pay dividends at

different rates on different types of share draft accounts, and may permit the owners

of such share draft accounts to make withdrawals by negotiable or transferable instruments

or other orders for the purpose of making transfers to third parties. (F) Unless otherwise provided by written agreement of the parties, the rights, responsibilities,

and liabilities attaching to a share draft withdrawn from, transferred to, or otherwise

handled by a credit union are defined in and governed by Chapters 1303. and 1304.

of the Revised Code, as if the credit union were a bank. (G) Unless otherwise provided in the articles or regulations, a member may designate

any person or persons to own or hold shares, or share accounts with the member in

joint tenancy with right of survivorship and not as tenants in common. (H) Shares or share accounts may be issued in the name of a custodian under the Ohio

transfers to minors act, a member in trust for a beneficiary, a fiduciary or custodian

in trust for a member beneficiary, or a fiduciary or custodian in trust upon the death

of a member.  Redemption of such shares or payment of such share accounts to a member, to the

extent of the payment, discharges the liability of the credit union to the member

and the beneficiary, and the credit union shall be under no obligation to see to the

application of the payment.  Unless prior to the death of a member, the member has notified the credit union

in writing in a form approved by the credit union of a different beneficiary to receive

the proceeds of such shares or share accounts, then the proceeds shall be paid to

the beneficiary or to the beneficiary's parent or legal representative.  Any payment made pursuant to written instructions of the member or pursuant to the

provisions herein contained shall be a valid and sufficient release and discharge

of the credit union in connection with any such share or share accounts. (I)(1) Except as otherwise provided in the articles or regulations, and subject to the provisions

thereof, a minor may purchase shares, share accounts, or other depository instruments,

and except for qualification as a voting member, the credit union may deal with the

minor with respect to shares, share accounts, or other depository instruments owned

by the minor as if the minor were a person of legal age. (2) If shares, share accounts, or other depository instruments are issued in the name

of a minor, redemption of any part or all of the shares or withdrawal of funds by

payment to the minor of the shares or funds and any declared dividends or interest

releases the credit union from all obligation to the minor as to the shares reduced

or funds withdrawn. (J) The regulations may require advance written notice of a member's intention to withdraw

the member's shares.  Such advance notice shall not exceed sixty days. (K) Notwithstanding any provision of law to the contrary, funds deposited in a share

account, share certificate, or in any other manner pursuant to a program offered by

a credit union to promote consumer savings do not constitute valuable consideration

for purposes of a scheme of chance under Chapter 2915. of the Revised Code.