AN ACT to amend the Indiana Code concerning trade regulations; consumer sales and
credit and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-4-3-8 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JANUARY 1, 2005]: Sec. 8. (a) The department shall
develop and promote programs designed to make the best use of the
resources of the state so as to assure a balanced economy and
continuing economic growth for Indiana and for those purposes may do
the following:
(1) Cooperate with federal, state, and local governments and
agencies in the coordination of programs to make the best use of
the resources of the state.
(2) Receive and expend all funds, grants, gifts, and contributions
of money, property, labor, interest accrued from loans made by
the department, and other things of value from public and private
sources, including grants from agencies and instrumentalities of
the state and the federal government. The department:
(A) may accept federal grants for providing planning
assistance, making grants, or providing other services or
functions necessary to political subdivisions, planning
commissions, or other public or private organizations;
(B) shall administer these grants in accordance with their
terms; and
(C) may contract with political subdivisions, planning
commissions, or other public or private organizations to carry
out the purposes for which the grants were made.
(3) Direct that assistance, information, and advice regarding the
duties and functions of the department be given the department by
any officer, agent, or employee of the state. The head of any other
state department or agency may assign one (1) or more of the
department's or agency's employees to the department on a
temporary basis, or may direct any division or agency under the
department's or agency's supervision and control to make any
special study or survey requested by the director.
(b) The department shall perform the following duties:
(1) Disseminate information concerning the industrial,
commercial, governmental, educational, cultural, recreational,
agricultural, and other advantages of Indiana.
(2) Plan, direct, and conduct research activities.
(3) Develop and implement industrial development programs to
encourage expansion of existing industrial, commercial, and
business facilities within Indiana and to encourage new industrial,
commercial, and business locations within Indiana.
(4) Assist businesses and industries in acquiring, improving, and
developing overseas markets and encourage international plant
locations within Indiana. The director, with the approval of the
governor, may establish foreign offices to assist in this function.
(5) Promote the growth of minority business enterprises by doing
the following:
(A) Mobilizing and coordinating the activities, resources, and
efforts of governmental and private agencies, businesses, trade
associations, institutions, and individuals.
(B) Assisting minority businesses in obtaining governmental
or commercial financing for expansion, establishment of new
businesses, or individual development projects.
(C) Aiding minority businesses in procuring contracts from
governmental or private sources, or both.
(D) Providing technical, managerial, and counseling assistance
to minority business enterprises.
(6) Assist in community economic development planning and the
implementation of programs designed to further this development.
(7) Assist in the development and promotion of Indiana's tourist
resources, facilities, attractions, and activities.
(8) Assist in the promotion and marketing of Indiana's agricultural
products, and provide staff assistance to the director in fulfilling
the director's responsibilities as commissioner of agriculture.
(9) Perform the following energy related functions:
(A) Assist in the development and promotion of alternative
energy resources, including Indiana coal, oil shale,
hydropower, solar, wind, geothermal, and biomass resources.
(B) Encourage the conservation and efficient use of energy,
including energy use in commercial, industrial, residential,
governmental, agricultural, transportation, recreational, and
educational sectors.
(C) Assist in energy emergency preparedness.
(D) Not later than January 1, 1994, establish:
(i) specific goals for increased energy efficiency in the
operations of state government and for the use of alternative
fuels in vehicles owned by the state; and
(ii) guidelines for achieving the goals established under item
(i).
(E) Establish procedures for state agencies to use in reporting
to the department on energy issues.
(F) Carry out studies, research projects, and other activities
required to:
(i) assess the nature and extent of energy resources required
to meet the needs of the state, including coal and other fossil
fuels, alcohol fuels produced from agricultural and forest
products and resources, renewable energy, and other energy
resources;
(ii) promote cooperation among government, utilities,
industry, institutions of higher education, consumers, and all
other parties interested in energy and recycling market
development issues; and
(iii) promote the dissemination of information concerning
energy and recycling market development issues.
(10) Implement any federal program delegated to the state to
effectuate the purposes of this chapter.
(11) Promote the growth of small businesses by doing the
following:
(A) Assisting small businesses in obtaining and preparing the
permits required to conduct business in Indiana.
ownership counselors. The attorney general and the entities
listed in IC 4-6-12-4(a)(1) through IC 4-6-12-4(a)(10) shall
cooperate with the department in implementing this
subdivision.
(c) The department shall submit a report to the general assembly
before October 1 of each year concerning the availability of and
location of markets for recycled products in Indiana. The report must
include the following:
(1) A priority listing of recyclable materials to be targeted for
market development. The listing must be based on an examination
of the need and opportunities for the marketing of the following:
(A) Paper.
(B) Glass.
(C) Aluminum containers.
(D) Steel containers.
(E) Bi-metal containers.
(F) Glass containers.
(G) Plastic containers.
(H) Landscape waste.
(I) Construction materials.
(J) Waste oil.
(K) Waste tires.
(L) Coal combustion wastes.
(M) Other materials.
(2) A presentation of a market development strategy that:
(A) considers the specific material marketing needs of Indiana;
and
(B) makes recommendations for legislative action.
(3) An analysis that examines the cost and effectiveness of future
market development options.
SECTION 2. IC 4-4-3-23 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 23. (a) The home ownership education
account within the state general fund is established to support the
home ownership education programs established under section
8(b)(15) of this chapter. The account is administered by the
department.
(b) The home ownership education account consists of fees
collected under IC 24-9-9.
(c) The expenses of administering the home ownership
education account shall be paid from money in the fund.
(d) The treasurer of state shall invest the money in the home
ownership education account not currently needed to meet the
obligations of the account in the same manner as other public
money may be invested.
(e) Money in the account may be spent only after appropriation
by the general assembly.
SECTION 3. IC 4-6-3-3, AS AMENDED BY P.L.2-2002,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]: Sec. 3. If the attorney general has reasonable
cause to believe that a person may be in possession, custody, or control
of documentary material, or may have knowledge of a fact that is
relevant to an investigation conducted to determine if a person is or has
been engaged in a violation of IC 4-6-9, IC 4-6-10, IC 13-14-10,
IC 13-14-12, IC 13-24-2, IC 13-30-4, IC 13-30-5, IC 13-30-6,
IC 13-30-8, IC 23-7-8, IC 24-1-2, IC 24-5-0.5, IC 24-5-7, IC 24-5-8,
IC 24-9, IC 25-1-7, IC 32-34-1, or any other statute enforced by the
attorney general, only the attorney general may issue in writing, and
cause to be served upon the person or the person's representative or
agent, an investigative demand that requires that the person served do
any combination of the following:
(1) Produce the documentary material for inspection and copying
or reproduction.
(2) Answer under oath and in writing written interrogatories.
(3) Appear and testify under oath before the attorney general or
the attorney general's duly authorized representative.
SECTION 4. IC 4-6-12 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]:
Chapter 12. Homeowner Protection Unit
Sec. 1. As used in this chapter, "unit" refers to the homeowner
protection unit established under this chapter.
Sec. 2. The attorney general shall establish a homeowner
protection unit to enforce IC 24-9 and to carry out this chapter.
Sec. 3. (a) Beginning July 1, 2005, the unit shall do the
following:
(1) Investigate deceptive acts in connection with mortgage
lending.
(2) Investigate violations of IC 24-9.
(3) Institute appropriate administrative and civil actions to
redress:
(A) deceptive acts in connection with mortgage lending;
and
(B) violations of IC 24-5-0.5 and IC 24-9.
(4) Cooperate with federal, state, and local law enforcement
agencies in the investigation of:
(A) deceptive acts in connection with mortgage lending;
(B) criminal violations involving deceptive acts in
connection with mortgage lending; and
(C) violations of IC 24-5-0.5 and IC 24-9.
(b) The attorney general shall adopt rules under IC 4-22-2 to the
extent necessary to organize the unit.
Sec. 4. (a) The following may cooperate with the unit to
implement this chapter:
(1) The Indiana professional licensing agency and the
appropriate licensing boards with respect to persons licensed
under IC 25.
(2) The department of financial institutions.
(3) The department of insurance with respect to the sale of
insurance in connection with mortgage lending.
(4) The securities division of the office of the secretary of
state.
(5) The supreme court disciplinary commission with respect
to attorney misconduct.
(6) The Indiana housing finance authority.
(7) The department of state revenue.
(8) The state police department.
(9) A prosecuting attorney.
(10) Local law enforcement agencies.
(11) The department of commerce.
(b) Notwithstanding IC 5-14-3, the entities listed in subsection
(a) may share information with the unit.
Sec. 5. The attorney general may file complaints with any of the
entities listed in section 4 of this chapter to carry out this chapter
and IC 24-9.
Sec. 6. The establishment of the unit and the unit's powers does
not limit the jurisdiction of an entity described in section 4 of this
chapter.
Sec. 7. The attorney general and an investigator of the unit may
do any of the following when conducting an investigation under
section 3 of this chapter:
(1) or more of the foregoing or a certificate of deposit for any of
the foregoing.
(2) A security issued or guaranteed by Canada, a Canadian
province, a political subdivision of a Canadian province, an
agency, or corporate or other instrumentality of one (1) or more
of the foregoing, or any other foreign government with which the
United States currently maintains diplomatic relations, if the
security is recognized as a valid obligation by the issuer or
guarantor.
(3) A security issued by and representing an interest in or a debt
of, or guaranteed by a bank organized under the laws of the
United States, a bank, savings institution, or trust company
organized and supervised under the laws of a state, a federal
savings association, a savings association organized under the
laws of a state and authorized to do business in Indiana, a federal
credit union or a credit union, industrial loan association, or
similar association organized and supervised under the laws of
this state, or a corporation or organization whose issuance of
securities is required by any other law to be passed upon and
authorized by the department of financial institutions or by a
federal agency or authority.
(4) A security issued or guaranteed by a railroad or other common
or contract carrier, a public utility, or a common or contract
carrier or public utility holding company. However, an issuer or
guarantor must be subject to regulation or supervision as to the
issuance of its own securities by a public commission, board, or
officer of the government of the United States, of a state, territory,
or insular possession of the United States, of a municipality
located in a state, territory, or insular possession, of the District
of Columbia, or of the Dominion of Canada or a province of
Canada.
(5) A security listed or approved for listing upon notice of
issuance on the New York Stock Exchange, the American Stock
Exchange, the Chicago Stock Exchange, or on any other exchange
approved and designated by the commissioner, any other security
of the same issuer that is of senior rank or substantially equal
rank, a security called for by subscription rights or warrants so
listed or approved, or a warrant or right to purchase or subscribe
to any of the foregoing.
(6) A promissory note, draft, bill of exchange, or banker's
acceptance that is evidence of:
(A) an obligation;
(B) a guarantee of an obligation;
(C) a renewal of an obligation; or
(D) a guarantee of a renewal of an obligation;
to pay cash within nine (9) months after the date of issuance,
excluding grace days, that is issued in denominations of at least
fifty thousand dollars ($50,000) and receives a rating in one (1)
of the three (3) highest rating categories from a nationally
recognized statistical rating organization.
(7) A security issued in connection with an employee stock
purchase, savings, pension, profit-sharing, or similar benefit plan.
(8) A security issued by an association incorporated under
IC 15-7-1.
(9) A security that is an industrial development bond (as defined
in Section 103(b)(2) of the Internal Revenue Code of 1954) the
interest of which is excludable from gross income under Section
103(a)(1) of the Internal Revenue Code of 1954 if, by reason of
the application of paragraph (4) or (6) of Section 103(b) of the
Internal Revenue Code of 1954 (determined as if paragraphs
(4)(A), (5), and (7) were not included in Section 103(b)),
paragraph (1) of Section 103(b) does not apply to the security.
(10) A security issued by a nonprofit corporation that meets the
requirements of Section 103(e) of the Internal Revenue Code of
1954 and is designated by the governor as the secondary market
for guaranteed student loans under IC 20-12-21.2.
(11) A security designated or approved for designation upon
notice of issuance on the National Association of Securities
Dealers Automatic Quotation National Market System or any
other national market system approved and designated by the
commissioner, any other security of the same issuer that is of
senior rank or substantially equal rank, a security called for by
subscription rights or warrants so listed or approved, or a warrant
or right to purchase or subscribe to any of the foregoing.
(12) A security that is a "qualified bond" (as defined in Section
141(e) of the Internal Revenue Code, as amended).
(b) The following transactions are exempted from the registration
requirements of section 3 of this chapter:
(1) An isolated nonissuer offer or sale, whether effected through
a broker-dealer or not.
filing is withdrawn or is not completed by the issuer, the
commissioner must retain the filing fee.
(D) There has been compliance with section 6(l) of this
chapter.
(E) Unless the issuer is registered under the Investment
Company Act of 1940, all the following must be true at the
time of the transaction:
(i) The security belongs to a class that has been in the hands
of the public for at least ninety (90) days.
(ii) The issuer of the security is a going concern, is actually
engaged in business, and is not in bankruptcy or
receivership.
(iii) Except as permitted by order of the commissioner, the
issuer and any predecessors have been in continuous
operation for at least five (5) years. An issuer or predecessor
is in continuous operation only if the issuer or predecessor
has gross operating revenue in each of the five (5) years
immediately preceding the issuer's or predecessor's claim of
exemption and has had total gross operating revenue of at
least two million five hundred thousand dollars ($2,500,000)
for those five (5) years or has had gross operating revenue of
at least five hundred thousand dollars ($500,000) in not less
than three (3) of those five (5) years.
The commissioner may revoke the exemption afforded by this
subdivision with respect to any securities by issuing an order:
(i) if the commissioner finds that the further sale of the
securities in this state would work or tend to work a fraud on
purchasers of the securities;
(ii) if the commissioner finds that the financial condition of
the issuer is such that it is in the public interest and is
necessary for the protection of investors to revoke or restrict
the exemption afforded by this subsection; or
(iii) if the commissioner finds that, due to the limited
number of shares in the hands of the public or due to the
limited number of broker-dealers making a market in the
securities, there is not a sufficient market for the securities
so that there is not a current market price for the securities.
(4) A transaction between the issuer or other person on whose
behalf the offering is made by an underwriter, or among
underwriters.
the limited liability company or affiliated limited liability
company) issued and outstanding.
(10) The offer or sale of a security by the issuer of the security if
all of the following conditions are satisfied:
(A) The issuer reasonably believes that either:
(i) there are no more than thirty-five (35) purchasers of the
securities from the issuer in an offering pursuant to this
subsection, including purchasers outside Indiana; or
(ii) there are no more than twenty (20) purchasers in
Indiana.
In either case, there shall be excluded in determining the
number of purchasers a purchaser whom the issuer reasonably
believes to be an accredited investor or who purchases the
securities after they are registered under this chapter.
(B) The issuer does not offer or sell the securities by means of
a form of general advertisement or general solicitation.
(C) The issuer reasonably believes that each purchaser of the
securities is acquiring the securities for the purchaser's own
investment and is aware of any restrictions imposed on
transferability and resale of the securities. The basis for
reasonable belief may include:
(i) obtaining a written representation signed by the
purchaser that the purchaser is acquiring the securities for
the purchaser's own investment and is aware of any
restrictions imposed on the transferability and resale of the
securities; and
(ii) placement of a legend on the certificate or other
document that evidences the securities stating that the
securities have not been registered under section 3 of this
chapter, and setting forth or referring to the restrictions on
transferability and sale of the securities.
(D) The issuer:
(i) files with the commissioner and provides to each
purchaser in this state an offering statement that sets forth
all material facts with respect to the securities; and
(ii) reasonably believes immediately before making a sale
that each purchaser who is not an accredited investor either
alone or with a purchaser representative has knowledge and
experience in financial and business matters to the extent
that the purchaser is capable of evaluating the merits and
risks of the prospective investment.
(E) If the aggregate offering price of the securities in an
offering pursuant to this subdivision (including securities sold
outside of Indiana) does not exceed five hundred thousand
dollars ($500,000), the issuer is not required to comply with
clause (D) if the issuer files with the commissioner and
provides to each purchaser in Indiana the following
information and materials:
(i) copies of all written materials, if any, concerning the
securities that have been provided by the issuer to any
purchaser; and
(ii) unless clearly presented in all written materials, a written
notification setting forth the name, address, and form of
organization of the issuer and any affiliate, the nature of the
principal businesses of the issuer and any affiliate, and the
information required in section 5(b)(1)(B), 5(b)(1)(C),
5(b)(1)(D), 5(b)(1)(E), 5(b)(1)(H), and 5(b)(1)(I) of this
chapter.
(F) The commissioner does not disallow the exemption
provided by this subdivision within ten (10) full business days
after receipt of the filing required by clause (D) or (E). The
issuer may make offers (but not sales) before and during the
ten (10) day period, if:
(i) each prospective purchaser is advised in writing that the
offer is preliminary and subject to material change; and
(ii) no enforceable offer to purchase the securities may be
made by a prospective purchaser, and no consideration in
any form may be accepted or received (directly or indirectly)
from a prospective purchaser, before the expiration of the
ten (10) day period and the vacation of an order disallowing
the exemption.
(G) The issuer need not comply with clause (D), (E), or (F) if:
(i) each purchaser has access to all the material facts with
respect to the securities by reason of the purchaser's active
involvement in the organization or management of the issuer
or the purchaser's family relationship with a person actively
involved in the organization or management of the issuer;
(ii) there are not more than fifteen (15) purchasers in Indiana
and each Indiana purchaser is an accredited investor or is a
purchaser described in item (i); or
issuance of securities of the same or another issuer.
(16) A limited offering transactional exemption, which may be
created by rule adopted by the commissioner. The exemption
must further the objectives of compatibility with federal
exemptions and uniformity among the states.
(c) The commissioner may consider and determine if a proposed
sale, transaction, issue, or security is entitled to an exemption accorded
by this section. The commissioner may decline to exercise the
commissioner's authority as to a proposed sale, transaction, issue, or
security. An interested party desiring the commissioner to exercise the
commissioner's authority must submit to the commissioner a verified
statement of all material facts relating to the proposed sale, transaction,
issue, or security, which must be accompanied by a request for a ruling
as to the particular exemption claimed, together with a filing fee of one
hundred dollars ($100). After notice to the interested parties as the
commissioner determines is proper and after a hearing, if any, the
commissioner may enter an order finding the proposed sale,
transaction, issue, or security entitled or not entitled to the exemption
claimed. An order entered, unless an appeal is taken from it in the
manner prescribed in section 20 of this chapter, is binding upon the
commissioner and upon all interested parties, provided that the
proposed sale, transaction, issue, or security when consummated or
issued conforms in every relevant and material particular with the facts
as set forth in the verified statement submitted.
(d) The commissioner may by order deny or revoke an exemption
specified in subsection (a)(6), (a)(7), or (b) with respect to a specific
security or transaction, if the commissioner finds that the securities to
which the exemption applies would not qualify for registration under
sections 4 and 5 of this chapter. No order may be entered without
appropriate prior notice to all interested parties, opportunity for
hearing, and written findings of fact and conclusions of law, except that
the commissioner may by order summarily deny or revoke any of the
specific exemptions pending final determination of a proceeding under
this subsection. Upon the entry of a summary order, the commissioner
shall promptly notify all interested parties that it has been entered, of
the reasons for the order, and that within fifteen (15) days of the receipt
of a written request the matter will be set down for hearing. If no
hearing is requested and none is ordered by the commissioner, the
order will remain in effect until it is modified or vacated by the
commissioner. If a hearing is requested or ordered, the commissioner,
after notice of and opportunity for hearing to all interested persons,
may modify or vacate the order or extend it until final determination.
No order under this subsection may operate retroactively. No person
may be considered to have violated section 3 of this chapter by reason
of an offer or sale effected after the entry of an order under this
subsection if the person sustains the burden of proof that the person did
not know, and in the exercise of reasonable care could not have known,
of the order.
(e) If, with respect to an offering of securities, any notices or written
statements are required to be filed with the commissioner under
subsection (b)(10), the first filing made with respect to the offering
must be accompanied by a filing fee of one hundred dollars ($100).
(f) A condition, stipulation, or provision requiring a person
acquiring a security to waive compliance with this chapter or a
rule or order under this chapter is void.
SECTION 6. IC 23-2-1-6 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 6. (a) An application for
registration may be filed by:
(1) the issuer;
(2) any other person on whose behalf the offering is to be made;
or
(3) a registered broker-dealer.
(b) A person filing an application for registration shall pay a filing
fee of one-twentieth of one percent (0.05%) of the maximum aggregate
offering price at which the registered securities are to be offered in
Indiana, but the fee may not be less than two hundred fifty dollars
($250) and may not be more than one thousand dollars ($1,000).
(c) When an application for registration under subsection (b) is
withdrawn before the effective date or a preeffective stop order is
entered under section 7 of this chapter, the commissioner shall retain
two hundred fifty dollars ($250) of the fee.
(d) A person filing an amendment to an effective registration which
requires an order of the commissioner shall pay a twenty-five dollar
($25) filing fee.
(e) An application for registration shall specify:
(1) the amount of securities to be offered in this state;
(2) the states in which a registration statement or similar
document in connection with the offering has been or is to be
filed; and
(3) an adverse order, judgment, or decree entered in connection
with the offering by the regulatory authorities in each state or by
a court or the Securities and Exchange Commission.
(f) A document filed under this chapter within five (5) years
preceding the filing of an application for registration may be
incorporated by reference in the application for registration if the
document is currently accurate.
(g) The commissioner may by rule or otherwise permit the omission
of an item of information or document from an application for
registration.
(h) In the case of a nonissuer distribution, any part of the
information that might otherwise be required under section 5 of this
chapter or subsection (i) need not be furnished if the person filing the
application for registration produces evidence to the reasonable
satisfaction of the commissioner that the person, or the persons on
whose behalf the distribution is to be made, cannot furnish that part of
the required information without unreasonable effort or expense.
(i) A registration is effective for:
(1) two (2) years from its effective date; or
(2) a shorter period during which the security is being offered or
distributed in a nonexempted transaction by or for the account of
the issuer or the person on whose behalf the offering is being
made or by an underwriter or broker-dealer who is still offering
part of an unsold allotment or subscription taken by the
underwriter or broker-dealer as a participant in the distribution,
except during the time a stop order is in effect under section 7 of
this chapter.
(j) So long as a registration is effective, the commissioner may by
rule or order require the person who filed the application for
registration to file reports, not more often than quarterly, to keep
reasonably current the information contained in the application for
registration and to disclose the progress of the offering.
(k) The commissioner may by rule or order require as a condition of
registration by qualification or coordination:
(1) that a security issued within the past three (3) years or to be
issued to a promoter for a consideration substantially different
from the public offering price, or to a person for a consideration
other than cash, be deposited in escrow; and
(2) that the proceeds from the sale of the registered security be
impounded until the issuer receives a specified amount.
The commissioner may by rule or order determine the conditions of an
escrow or impounding required under this subsection, but the
commissioner may not reject a depository solely because of location in
another state.
(l) No transferable share is exempt from registration under section
2(b)(3) of this chapter or is qualified for registration under sections 4
or 5 of this chapter unless the issuer has designated a qualified transfer
agent to handle all transfers. The commissioner may adopt rules to
implement this subsection. The commissioner may by rule or order
exempt an issuer, wholly or partially, from the requirements of this
subsection.
(m) A registration statement may be amended after its effective date
to increase the securities specified to be offered and sold if the public
offering price and underwriters' discounts and commissions are not
changed from the amounts reported to the commissioner. An
amendment becomes effective upon an order of the commissioner. A
person filing an amendment must pay a late registration fee of
twenty-five dollars ($25) and a filing fee under subsection (b) for the
additional securities proposed to be offered. An amendment relates
back to the date of the sale of additional securities being registered if
the amendment is filed within three (3) months after the date of the sale
and the additional filing fee and late registration fee are paid.
(n) As permitted by Section 106(c) of the Secondary Mortgage
Market Enhancement Act of 1984 (15 U.S.C. 77r-1(c)), securities that
are offered and sold pursuant to Section 4(5) of the Securities Act of
1933 or that are mortgage-related securities (as that term is defined in
Section 3(a)(41) of the Securities Exchange Act of 1934, 15 U.S.C.
78c(a)(41)):
(1) must comply with all applicable:
(A) registration and qualification requirements of this chapter;
and
(B) rules adopted by the commissioner; and
(2) shall not be treated as obligations issued by the United States
for the purposes of this chapter.
(o) If:
(1) the division:
(A) does not approve an application for registration by
coordination or qualification; and
(B) notifies the applicant not later than ten (10) days after
the date the application was not approved of a deficiency
in the application that, if satisfied, would allow the
approval of the application;
the applicant may satisfy the deficiency within sixty (60) days
after the date described in clause (B); and
(2) an applicant does not satisfy the deficiency described in
subdivision (1):
(A) the application is considered abandoned;
(B) the issuer does not receive a refund of the application
fee; and
(C) no further action is required by the division.
SECTION 7. IC 23-2-1-15, AS AMENDED BY P.L.270-2003,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 15. (a) This chapter shall be administered by a
division of the office of the secretary of state. The secretary of state
shall appoint a securities commissioner who shall be responsible for
the direction and supervision of the division and the administration of
this chapter under the direction and control of the secretary of state.
The salary of the securities commissioner shall be paid out of the funds
appropriated for the administration of this chapter. The commissioner
shall serve at the will of the secretary of state.
(b) The secretary of state:
(1) shall employ a chief deputy, a senior investigator, a senior
accountant, and other deputies, investigators, accountants, clerks,
stenographers, and other employees necessary for the
administration of this chapter; and
(2) shall fix their compensation with the approval of the budget
agency.
The chief deputy, other deputies, the senior investigator, and the senior
accountant, once employed under this chapter, may be dismissed only
for cause by the secretary of state upon ten (10) days notice in writing
stating the reasons for dismissal. Within fifteen (15) days after
dismissal, the chief deputy, other deputies, the senior investigator, and
the senior accountant may appeal to the state personnel board. The
state personnel board shall hold a hearing, and if it finds that the
appealing party was dismissed for a political, social, religious, or racial
reason, the appealing party shall be reinstated to the appealing party's
position without loss of pay. In all other cases, if the decision is
favorable to the appealing party, the secretary of state shall follow the
findings and recommendations of the board, which may include
reinstatement and payment of salary or wages lost. The hearing and any
subsequent proceedings or appeals shall be governed by the provisions
of IC 4-15-2 and IC 4-21.5.
(c) Fees and funds of whatever character accruing from the
administration of this chapter shall be accounted for by the secretary of
state and shall be deposited with the treasurer of state to be deposited
by the treasurer of state in the general fund of the state. Expenses
incurred in the administration of this chapter shall be paid from the
general fund upon appropriation being made for the expenses in the
manner provided by law for the making of those appropriations.
However, costs of investigations recovered under sections 16(d) and
17.1(c) of this chapter shall be deposited with the treasurer of state to
be deposited by the treasurer of state in a separate account to be known
as the securities division enforcement account. The funds in the
account shall be available, with the approval of the budget agency, to
augment and supplement the funds appropriated for the administration
of this chapter. The funds in the account do not revert to the general
fund at the end of any fiscal year.
(d) In connection with the administration and enforcement of the
provisions of this chapter, the attorney general shall render all
necessary assistance to the securities commissioner upon the
commissioner's request, and to that end, the attorney general shall
employ legal and other professional services as are necessary to
adequately and fully perform the service under the direction of the
securities commissioner as the demands of the securities division shall
require. Expenses incurred by the attorney general for the purposes
stated in this subsection shall be chargeable against and paid out of
funds appropriated to the attorney general for the administration of the
attorney general's office.
(e) Neither the secretary of state, the securities commissioner, nor
an employee of the securities division shall be liable in their individual
capacity, except to the state, for an act done or omitted in connection
with the performance of their respective duties under this chapter.
(f) The commissioner, subject to the approval of the secretary of
state, may adopt rules, orders, and forms necessary to carry out this
chapter, including rules and forms concerning registration statements,
applications, reports, and the definitions of any terms if the definitions
are consistent with this chapter. The commissioner may by rule or order
allow for exemptions from registration requirements under sections 3
and 8 of this chapter if the exemptions are consistent with the public
interest and this chapter.
(g) The provisions of this chapter delegating and granting power to
the secretary of state, the securities division, and the securities
commissioner shall be liberally construed to the end that:
(1) the practice or commission of fraud may be prohibited and
prevented;
(2) disclosure of sufficient and reliable information in order to
afford reasonable opportunity for the exercise of independent
judgment of the persons involved may be assured; and
(3) the qualifications may be prescribed to assure availability of
reliable broker-dealers, investment advisers, and agents engaged
in and in connection with the issuance, barter, sale, purchase,
transfer, or disposition of securities in this state.
It is the intent and purpose of this chapter to delegate and grant to and
vest in the secretary of state, the securities division, and the securities
commissioner full and complete power to carry into effect and
accomplish the purpose of this chapter and to charge them with full and
complete responsibility for its effective administration.
(h) It is the duty of a prosecuting attorney, as well as of the attorney
general, to assist the securities commissioner upon the commissioner's
request in the prosecution to final judgment of a violation of the penal
provisions of this chapter and in a civil proceeding or action arising
under this chapter. If the commissioner determines that an action based
on the securities division's investigations is meritorious:
(1) the commissioner or a designee empowered by the
commissioner shall certify the facts drawn from the investigation
to the prosecuting attorney of the judicial circuit in which the
crime may have been committed;
(2) the commissioner and the securities division shall assist the
prosecuting attorney in prosecuting an action under this section,
which may include a securities division attorney serving as a
special deputy prosecutor appointed by the prosecuting
attorney;
(3) a prosecuting attorney to whom facts concerning fraud are
certified under subdivision (1) may refer the matter to the attorney
general; and
(4) if a matter has been referred to the attorney general under
subdivision (3), the attorney general may:
(A) file an information in a court with jurisdiction over the
matter in the county in which the offense is alleged to have
been committed; and
(B) prosecute the alleged offense.
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 19. (a) A person who
offers or sells a security in violation of this chapter, and who does not
sustain the burden of proof that the person did not know and in the
exercise of reasonable care could not have known of the violation, is
liable to any other party to the transaction who did not knowingly
participate in the violation or who did not have, at the time of the
transaction, knowledge of the violation, who may sue either at law or
in equity to rescind the transaction or to recover the consideration paid,
together, in either case, with interest as computed in subsection (g)(1),
plus costs, and reasonable attorney's fees, less the amount of any cash
or other property received on the security upon the tender of the
security by the person bringing the action or for damages if the person
no longer owns the security. Damages are the amount that would be
recoverable upon a tender less:
(1) the value of the security when the buyer disposed of the
security; and
(2) the interest as computed in subsection (g)(1) on the value of
the security from the date of disposition.
(b) A person who purchases a security in violation of this chapter,
and who does not sustain the burden of proof that the person did not
know and in the exercise of reasonable care could not have known of
the violation, is liable to any other party to the transaction who did not
knowingly participate in the violation or who did not have, at the time
of the transaction, knowledge of the violation. The other party to the
transaction may bring an action to rescind the transaction or for
damages, together, in either case, with reasonable attorney's fees, upon
the tender of the consideration received by the person bringing the
action.
(c) A person who, for compensation, engages in the business of
advising others, either directly or through publications or writings, as
to the value of securities or as to the advisability of investing in,
purchasing, or selling securities, or who, for compensation and as a part
of a regular business, issues analyses or reports concerning securities
and:
(1) violates section 8, 12.1(b), or 14, or 26 of this chapter;
(2) employs a device, scheme, or artifice to defraud a person; or
(3) engages in an act that operates or would operate as fraud or
deceit upon a person;
is liable to the other person, who may bring an action to recover any
consideration paid for advice, any loss due to advice, interest at eight
percent (8%) each year from the date consideration was paid, costs, and
reasonable attorney's fees less the value of cash or property received
due to the advice. It is a defense to an action brought for a violation of
section 12.1(b) or 26 of this chapter that the person accused of the
violation did not know of the violation and, exercising reasonable care,
could not have known of the violation.
(d) A person who directly or indirectly controls a person liable
under subsection (a), (b), or (c), a partner, officer, or director of the
person, a person occupying a similar status or performing similar
functions, an employee of a person who materially aids in the conduct
creating the liability, and a broker-dealer or agent who materially aids
in the conduct are also liable jointly and severally with and to the same
extent as the person, unless the person who is liable sustains the burden
of proof that the person did not know, and in the exercise of reasonable
care could not have known, of the existence of the facts by reason of
which the liability is alleged to exist. There is contribution as in cases
of contract among the several persons liable.
(e) A tender specified in this section may be made at any time
before entry of judgment.
(f) A cause of action under this statute survives the death of a person
who might have been a plaintiff or defendant.
(g) Action under this section shall be commenced within three (3)
years after discovery by the person bringing the action of a violation of
this chapter, and not afterwards. No person may sue under this section:
(1) if that person received a written offer, before suit and at a time
when the person owned the security, to refund the consideration
paid together with interest on that amount from the date of
payment to the date of repayment, with interest on:
(A) interest-bearing obligations to be computed at the same
rate as provided on the security; and
(B) all other securities at the rate of eight percent (8%) per
year;
less the amount of any income received on the security, and the
person failed to accept the offer within thirty (30) days of its
receipt; or
(2) if the person received an offer before suit and at a time when
the person did not own the security, unless the person rejected the
offer in writing within thirty (30) days of its receipt.
(h) No person who has made or engaged in the performance of a
contract in violation of this chapter or a rule or order under this
chapter, or who has acquired a purported right under a contract with
knowledge of the facts by reason of which its making or performance
was in violation, may base a suit on the contract.
(i) A condition, stipulation, or provision binding a person acquiring
a security to waive compliance with this chapter or a rule or order
under this chapter is void.
(j) The rights and remedies specifically prescribed by this chapter
are the only rights and remedies created by this chapter, but are in
addition to any other rights or remedies that exist at law or in equity.
SECTION 9. IC 23-2-1-19.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 19.5. (a) If the
commissioner determines, after notice and opportunity for a hearing,
that any person has violated this chapter, the commissioner may, in
addition to or in lieu of all other remedies, impose a civil penalty upon
any person who has violated this chapter. This penalty may not exceed
ten thousand dollars ($10,000) for each violation of this chapter found
to have been committed. An appeal from the decision of the
commissioner imposing a civil penalty under this subsection may be
taken by any aggrieved party pursuant to section 20 of this chapter.
(b) The commissioner may bring any action in the circuit or superior
court of Marion County to enforce payment of any penalty imposed
under subsection (a).
(c) Penalties collected under this section shall be deposited in the
securities division enforcement account established under section 15(c)
of this chapter.
SECTION 10. IC 23-2-1-26 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 26. (a) This section applies to a person engaged in the
business of providing advice to others, directly or by means of
analyses, reports, or other publications, concerning:
(1) the value of securities; or
(2) the advisability of:
(A) investing in;
(B) purchasing; or
(C) selling;
securities.
(b) A person described in subsection (a) may not:
(1) employ a device, a scheme, or an artifice to defraud a
person; or
(2) engage in an act, a practice, or a course of business that
operates or would operate as fraud or deceit upon a person.
SECTION 11. IC 23-2-1-27 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 27. An administrative action under this chapter
survives the death of a person who might have been a respondent.
SECTION 12. IC 23-2-5-3, AS AMENDED BY P.L.115-2001,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 3. (a) As used in this chapter, "certificate of
registration" means a certificate issued by the commissioner
authorizing an individual to engage in origination activities on behalf
of a licensee.
(b) As used in this chapter, "creditor" means a person:
(1) that loans funds of the person in connection with a loan; and
(2) to whom the loan is initially payable on the face of the note or
contract evidencing the loan.
(c) As used in this chapter, "license" means a license issued by the
commissioner authorizing a person to engage in the loan brokerage
business.
(d) As used in this chapter, "licensee" means a person that is issued
a license under this chapter.
(e) As used in this chapter, "loan broker" means any person who, in
return for any consideration from any source procures, attempts to
procure, or assists in procuring a loan from a third party or any
other person, promises to procure a loan for any person or assist any
person in procuring a loan from any third party, or who promises to
consider whether or not to make a loan to any person. whether or not
the person seeking the loan actually obtains the loan. "Loan broker"
does not include:
(1) any bank, savings bank, trust company, savings association,
credit union, or any other financial institution that is:
(A) regulated by any agency of the United States or any state;
and
(B) regularly actively engaged in the business of making
consumer loans that are not secured by real estate or taking
assignment of consumer sales contracts that are not secured by
real estate;
(2) any person authorized to sell and service loans for the Federal
National Mortgage Association or the Federal Home Loan
Mortgage Corporation, issue securities backed by the Government
National Mortgage Association, make loans insured by the United
States Department of Housing and Urban Development, act as a
supervised lender or nonsupervised automatic lender of the
United States Department of Veterans Affairs, or act as a
correspondent of loans insured by the United States Department
of Housing and Urban Development;
(3) (2) any insurance company; or
(4) (3) any person arranging financing for the sale of the person's
product.
(f) As used in this chapter, "loan brokerage business" means a
person acting as a loan broker.
(g) As used in this chapter, "origination activities" means
establishing the terms or conditions of a loan with a borrower or
prospective borrower communication with or assistance of a
borrower or prospective borrower in the selection of loan products
or terms.
(h) As used in this chapter, "originator" means a person
engaged in origination activities. The term "originator" does not
include a person who performs origination activities for any entity
that is not a loan broker under subsection (e).
(i) As used in this chapter, "person" means an individual, a
partnership, a trust, a corporation, a limited liability company, a limited
liability partnership, a sole proprietorship, a joint venture, a joint stock
company, or another group or entity, however organized.
(i) (j) As used in this chapter, "registrant" means an individual who
is registered to engage in origination activities under this chapter.
(j) (k) As used in this chapter, "ultimate equitable owner" means a
person who, directly or indirectly, owns or controls any ownership
interest in a person, regardless of whether the person owns or controls
the ownership interest through one (1) or more other persons or one (1)
or more proxies, powers of attorney, or variances.
SECTION 13. IC 23-2-5-19, AS AMENDED BY P.L.230-1999,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 19. (a) The following persons are exempt from the
requirements of sections 4, 5, 6, 9, 10, 17, and 18, and 21 of this
chapter:
(1) Any attorney while engaging in the practice of law.
(2) Any certified public accountant, public accountant, or
accountant practitioner holding a certificate or registered under
IC 25-2.1 while performing the practice of accountancy (as
defined by IC 25-2.1-1-10).
dissolution on the business entity.
(e) A business entity administratively dissolved under this section
may carry on only those activities necessary to wind up and liquidate
the business entity's affairs.
SECTION 15. IC 24-4.5-1-102, AS AMENDED BY P.L.258-2003,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2004 (RETROACTIVE)]: Sec. 102. Purposes; Rules of
Construction.(1) This article shall be liberally construed and applied
to promote its underlying purposes and policies.
(2) The underlying purposes and policies of this article are:
(a) to simplify, clarify, and modernize the law governing retail
installment sales, consumer credit, small loans, and usury;
(b) to provide rate ceilings to assure an adequate supply of credit
to consumers;
(c) to further consumer understanding of the terms of credit
transactions and to foster competition among suppliers of
consumer credit so that consumers may obtain credit at
reasonable cost;
(d) to protect consumer buyers, lessees, and borrowers against
unfair practices by some suppliers of consumer credit, having due
regard for the interests of legitimate and scrupulous creditors;
(e) to permit and encourage the development of fair and
economically sound consumer credit practices;
(f) to conform the regulation of consumer credit transactions to
the policies of the Federal Consumer Credit Protection Act; and
(g) to make uniform the law including administrative rules among
the various jurisdictions.
(3) A reference to a requirement imposed by this article includes
reference to a related rule of the department adopted pursuant to this
article.
(4) A reference to a federal law in IC 24-4.5 is a reference to the law
in effect December 31, 2002. 2003.
SECTION 16. IC 24-4.5-1-202 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004]: Sec. 202. This article does
not apply to the following:
(1) Extensions of credit to government or governmental agencies
or instrumentalities.
(2) The sale of insurance by an insurer, except as otherwise
provided in the chapter on insurance (IC 24-4.5-4).
(3) Transactions under public utility, municipal utility, or
common carrier tariffs if a subdivision or agency of this state or
of the United States regulates the charges for the services
involved, the charges for delayed payment, and any discount
allowed for early payment.
(4) The rates and charges and the disclosure of rates and charges
of a licensed pawnbroker established in accordance with a statute
or ordinance concerning these matters.
(5) A sale of goods, services, or an interest in land in which the
goods, services, or interest in land are purchased primarily for a
purpose other than a personal, family, or household purpose.
(6) A loan in which the debt is incurred primarily for a purpose
other than a personal, family, or household purpose.
(7) An extension of credit primarily for a business, a commercial,
or an agricultural purpose.
(8) An installment agreement for the purchase of home fuels in
which a finance charge is not imposed.
(9) Loans made, insured, or guaranteed under a program
authorized by Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.).
(10) Transactions in securities or commodities accounts in which
credit is extended by a broker-dealer registered with the Securities
and Exchange Commission or the Commodity Futures Trading
Commission.
(11) A loan made:
(A) in compliance with the requirements of; and
(B) by a community development corporation (as defined
in IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing finance authority established by
IC 5-20-1-3.
SECTION 17. IC 24-4.5-7-104, AS ADDED BY P.L.38-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 104. "Small loan" means a loan:
(a) with a principal loan amount that is more than at least fifty
dollars ($50) and less than four not more than five hundred one
dollars ($401); ($500); and
(b) in which the lender holds the borrower's check or receives the
borrower's written authorization to debit the borrower's
account under an agreement, either express or implied, for a
specific period before the lender:
(i) offers the check for deposit or presentment; or
(30) day period preceding the consumer's borrower's application for
a small loan under this chapter and exclusive of any income other than
regular net gross pay received, or as otherwise determined by the
department.
SECTION 23. IC 24-4.5-7-201, AS ADDED BY P.L.38-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 201. (1) Finance charges on the first one two
hundred fifty dollars ($100) ($250) of a small loan are limited to
fifteen percent (15%) of the principal.
(2) Finance charges on the amount of a small loan greater than one
two hundred fifty dollars ($100) ($250) and less than or equal to four
hundred dollars ($400) are limited to ten thirteen percent (10%)
(13%) of the amount over one two hundred fifty dollars ($100). ($250)
and less than four hundred dollars ($400).
(3) The total amount of finance charges may not exceed thirty-five
dollars ($35). Finance charges on the amount of the small loan
greater than four hundred dollars ($400) and less than or equal to
five hundred dollars ($500) are limited to ten percent (10%) of the
amount over four hundred dollars ($400) and less than five
hundred dollars ($500).
SECTION 24. IC 24-4.5-7-202, AS ADDED BY P.L.38-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 202. (1) Notwithstanding any other law, only the
following fees the only fee that may be contracted for and received by
the lender on a small loan or subsequent refinancing:
(a) The parties may contract for a delinquency charge of not more
than five dollars ($5) on any installment not paid in full within ten
(10) days after its scheduled due date.
(b) A delinquency charge under this section may be collected only
once on an installment, however long it remains in default. A
delinquency charge may be collected any time after it accrues.
(2) an additional charge may be made is a charge, not to exceed
twenty dollars ($20), for each:
(a) return by a bank or other depository institution of a:
(i) dishonored check;
(ii) negotiable order of withdrawal; or
(iii) share draft issued by the consumer; borrower; or
(b) time an authorization to debit the borrower's account is
dishonored.
This additional charge may be assessed one (1) time regardless of how
many times a check or an authorization to debit the borrower's
account may be submitted by the lender and dishonored.
SECTION 25. IC 24-4.5-7-301, AS ADDED BY P.L.38-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 301. (1) For purposes of this section, the lender
shall disclose to the consumer borrower to whom credit is extended
with respect to a small loan the information required by the Federal
Consumer Credit Protection Act.
(2) In addition to the requirements of subsection (1), the lender must
conspicuously display in bold type a notice to the public both in the
lending area of each business location and in the loan documents the
following statement:
"WARNING: A small loan is not intended to meet long term
financial needs. A small loan should be used only to meet short
term cash needs. Renewing the small loan rather than paying the
debt in full will require additional finance charges. The cost of
your small loan may be higher than loans offered by other lending
institutions. Small loans are regulated by the State of Indiana
Department of Financial Institutions.
A consumer borrower may rescind a small loan without cost not
later than the end of the business day immediately following the
day on which the small loan was made. To rescind a small loan,
a consumer borrower must inform the lender that the consumer
borrower wants to rescind the small loan, and the consumer
borrower must return the cash amount of the principal of the
small loan to the lender.".
(3) The statement required in subsection (2) must be in:
(a) 14 point bold face type in the loan documents; and
(b) not less than one (1) inch bold print in the lending area of the
business location.
(4) When a borrower enters into a small loan, the lender shall
provide the borrower with a pamphlet approved by the
department that describes:
(a) the availability of debt management and credit counseling
services; and
(b) the borrower's rights and responsibilities in the
transaction.
SECTION 26. IC 24-4.5-7-401, AS AMENDED BY P.L.258-2003,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 401. (1) Except as provided in subsection (2), A
small loan may not be made for a term of less than fourteen (14) days.
(2) After the consumer's third borrower's fifth consecutive small
loan, another small loan may not be made to that consumer borrower
within seven (7) days after the due date of the third fifth consecutive
small loan. unless the new small loan is for a term of twenty-eight (28)
days or longer. After the borrower's fifth consecutive small loan, the
balance must be paid in full. However, the borrower and lender
may agree to enter into a simple interest loan, payable in
installments, under IC 24-4.5-3 within seven (7) days after the due
date of the fifth consecutive small loan.
SECTION 27. IC 24-4.5-7-402, AS ADDED BY P.L.38-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2004]: Sec. 402. (1) A lender is prohibited from making a
small loan to a consumer borrower if the total payable amount of the
small loan exceeds twenty fifteen percent (20%) (15%) of the
consumer's borrower's monthly net gross income.
(2) A small loan may be secured by only one (1) check or electronic
authorization to debit the borrower's account per small loan. The
check or electronic debit may not exceed the amount advanced to or on
behalf of the consumer borrower plus loan finance charges contracted
for and permitted.
(3) A consumer borrower may make partial payments in any
amount on the small loan without charge at any time before the due
date of the small loan. After each payment is made on a small loan,
whether the payment is in part or in full, the lender shall give a signed
and dated receipt to the consumer borrower making a payment
showing the amount paid and the balance due on the small loan.
(4) The lender shall provide to each consumer borrower a copy of
the required loan documents before the disbursement of the loan
proceeds.
(5) A consumer borrower may rescind a small loan without cost not
later than the end of the business day immediately following the day on
which the small loan was made. To rescind a small loan, a consumer
borrower must:
(a) inform the lender that the consumer borrower wants to
rescind the small loan; and
(b) return the cash amount of the principal of the small loan to the
lender.
(6) A lender shall not enter into a renewal with a borrower. If
a loan is paid in full, a subsequent loan is not a renewal.
claims and defenses of the maker.".
SECTION 33. IC 24-9 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2005]:
ARTICLE 9. HOME LOAN PRACTICES
Chapter 1. Application
Sec. 1. Except for IC 24-9-3-7(3), this article does not apply to:
(1) a loan made or acquired by a person organized or
chartered under the laws of this state, any other state, or