The bill amends section 1761.10 of the Revised Code to update regulations regarding credit union share guaranty corporations. Key changes include the requirement for these corporations to establish and maintain a guarantee fund at a minimum operating level of one percent of the aggregate share capital of participating credit unions. The bill introduces provisions for special assessments and premium assessments on participating credit unions for maintaining the fund's normal operating level, particularly in cases of potential impairment or net losses. Additionally, it outlines the process for distributing excess funds to participating credit unions and the conditions under which capital contributions may be refunded upon liquidation or withdrawal from the corporation.

Significant insertions in the bill clarify the conditions under which special assessments and premium assessments can be levied, specifically targeting credit unions that the corporation insures for primary coverage. The bill also introduces new provisions regarding the distribution of assets in the event of dissolution, particularly for nonprofit organizations recognized under section 501(c)(6) of the Internal Revenue Code. These provisions ensure that capital contributions are returned to participating credit unions and outline the distribution of any remaining assets after liabilities are settled. The existing section 1761.10 is repealed to accommodate these changes.

Statutes affected:
As Introduced: 1761.10