1157.01 [Effective Until 9/13/2010] Appointing conservator and ordering closing of books.
1157.01 [Effective Until 9/13/2010] Appointing conservator and ordering closing of books.
(A) The superintendent of savings and loan associations may appoint a conservator for any savings and loan association whenever he deems it necessary in order to conserve the assets of such association for depositors, members, and creditors. The superintendent shall appoint a conservator for any association whose status as an insured institution has been terminated by the federal savings and loan insurance corporation. The superintendent may fix the compensation to be paid such conservator, the bond or other security to be required of him, and may remove such conservator at any time. Upon or after the appointment of a conservator for any savings and loan association, the superintendent may order the closing of the books of such savings and loan association against further transfer of its stock. He may thereafter permit such books to be reopened.
(B) The conservator:
(1) Shall take possession of the business and property of such savings and loan association;
(2) Shall have and exercise, in the name and on behalf of the association, all the rights, powers, and authority of the officers and directors of the association and all voting rights of its members or shareholders and may continue its business in whole or in part with a view to conserving its business and assets pending further disposition thereof as provided by law under the supervision of the superintendent and upon such limitations as are imposed by him;
(3) May give notice that he has taken possession of the assets of the association to all persons holding or having possession of any assets of such association;
(4) May do all things he considers desirable or expedient to carry on the association’s business consistent with his appointment, but he shall not declare, credit or distribute earnings on savings accounts or deposits without the approval of the superintendent;
(5) May bring or defend suits or proceedings in the name of the association under the direction and supervision of the superintendent;
(6) May do such things and have such rights, powers, privileges, immunities, and duties as the superintendent authorizes, directs, confers, or imposes.
This section does not vest title to any assets of the association in the conservator. No person, firm, corporation, or association, knowing that a conservator has taken possession of the business and property of an association or having been so notified, shall have a lien or charge against any of the assets of such association for any payment, advance, clearance, or liability thereafter made or incurred. The obligations of such association shall continue to bear interest at the rate contracted.
Any officer, director, member, or shareholder may, from time to time, communicate with the superintendent regarding the conservatorship. The conservator shall furnish bond in form and amount as the superintendent may direct.
(C) The attorney general, as legal advisor to the division, may employ special counsel to aid him with respect to any litigation in which the conservator is involved on behalf of the association. The compensation of such special counsel shall be fixed by the attorney general subject to the approval of the court.
(D) Within thirty days after appointment of a conservator, the association may bring an action in the court of common pleas of Franklin county, for an order that the superintendent remove the conservator. Immediately upon filing such action, summons shall be issued to the sheriff of Franklin county to be served on the superintendent, returnable within five days from its date, which in all other respects such summons shall be made as in civil actions, whereupon the allegations of the petition shall be deemed to stand denied without pleading and the cause shall be advanced and heard without delay.
(E) The superintendent may terminate the conservatorship and permit the association to resume the transaction of its business, subject to such terms and restrictions as he prescribes, when the superintendent determines that the termination of such conservatorship may be safely done and would be in the public interest. In no case shall the superintendent terminate the conservatorship and permit the association to resume the transaction of its business, unless the federal savings and loan insurance corporation assures the superintendent that the association, upon resuming the transaction of its business, will have the status of an insured institution. The superintendent may terminate the conservatorship and take possession on any of the grounds provided in section 1157.02 of the Revised Code.
(F) The conservator may submit a plan for the termination of the conservatorship to the members or shareholders of the association; if the holders of a majority of the shares or a majority of members vote to accept the plan, they shall elect directors to manage the affairs of the association.
When a plan for termination of such conservatorship has been submitted to the members or shareholders of the association, the superintendent may require that the plan be submitted to the court. He may require that not less than two weeks’ notice of the time and place of hearing on such application be given by publication or otherwise, as the court directs, to depositors, creditors, members, and shareholders of the association.
(G) The expenses of the conservatorship and the compensation of the conservator and the special counsel, if any, as provided in this section, shall be paid out of the assets of the association and shall be a lien thereon prior to any other lien.
Renumbered as § 1157.09 by 128th General Assembly File No. 45, HB 292, § 1, eff. 9/13/2010.
Effective Date: 07-14-1987
This section is set out twice. See also § 1157.01, as added by 128th General Assembly File No. 45, HB 292, § 1, eff. 9/13/2010.
1157.01 [Effective 9/13/2010] Court defined; jurisdiction
(A) As used in this chapter, “court” means the court of common pleas of the county in which the principal place of business of a savings and loan association, as set forth in its articles of incorporation, is located or of any other county determined by the superintendent of financial institutions to be appropriate under the circumstances.
(B) The court shall have exclusive original jurisdiction of any action or proceeding relating to or arising out of the taking of possession of the property and business of a savings and loan association under this chapter, whether before or after the savings and loan association is wound up and dissolved, as well as any action or other proceeding brought under this chapter.
(C) Whenever the approval of the court is required for any act under this chapter, that approval may be given with or without a hearing held upon whatever notice, if any, the court may direct, unless otherwise provided in this chapter. At a hearing, the court, by order, may approve the actions petitioned.
Added by 128th General Assembly File No. 45, HB 292, § 1, eff. 9/13/2010.
Effective Date: 07-14-1987
This section is set out twice. See also § 1157.01, effective until 9/13/2010.