AN ACT to amend the Indiana Code concerning financial institutions.
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, 2003. 2004.
($500).
extinguish the borrower's liability under a home loan plus amounts
required to recover costs, including reasonable attorney's fees.
(d) The provisions of this section are effective notwithstanding any
other provision of law. This section shall not be construed to limit the
substantive rights, remedies, or procedural rights available to a
borrower against any creditor, assignee, or holder under any other law.
The rights conferred on borrowers by subsections (a) and (b) are
independent of each other and do not limit each other.
authorized to issue, negotiate, and sell certificates of investment or
indebtedness.
"Branch" means any office, agency, mobile unit, messenger service,
or other place of business at which:
(1) payments into certificates of investment or indebtedness are
received;
(2) checks, negotiable or transferable instruments or orders, or
similar instruments are paid; or
(3) money is lent.
However, the term does not include the principal office of a company
or an automated teller facility.
"Financial institution" has the same meaning as in IC 28-1-1-3.
(b) Any domestic corporation organized under the general
corporation laws of Indiana may engage in business as an industrial
loan and investment company subject to the limitations and restrictions
set forth in this chapter. The department may issue a certificate
authorizing a corporation to engage in business under this chapter if
after the department determines after a hearing that a public necessity
exists in the particular city for the type of industrial loan and
investment company for which application is made. However, no
certificate may be issued to engage in business under this chapter in a
city having a population of less than thirty thousand (30,000)
inhabitants, and with respect to cities having a population of thirty
thousand (30,000) or more inhabitants, not more than one (1)
certificate may be issued for each thirty thousand (30,000) inhabitants
of the city. considers and investigates all the following:
(1) The financial standing and character of the incorporators,
organizers, directors, principal shareholders, or controlling
corporations.
(2) The character, qualifications, and experience of the
officers and directors of the corporation.
(3) The future earnings prospects for the proposed
corporation in the community in which the corporation will
be located.
(4) The adequacy of the corporation's capital.
If the department determines any of the factors described in
subdivisions (1) through (4) unfavorably, the department may not
issue a certificate authorizing the corporation to engage in business
under this chapter. Certificates issued under this section must state
whether the corporation is authorized to issue, negotiate, and sell
certificates of investment or indebtedness, and, if not, must provide that
the corporation may do business under this article only as restricted by
section 21 of this chapter.
(c) Any company that is authorized to issue, negotiate, and sell
certificates of investment or indebtedness and that holds a certificate
to engage in business under this chapter is entitled to establish one (1)
or more branches de novo and one (1) or more branches by acquisition
in any location or locations within Indiana, at which any business of the
company may be transacted to the same extent as at the principal office
of the company.
(d) As a condition to the establishment and operation of a branch or
branches under this section, the company must:
(1) obtain prior written approval of the department;
(2) operate each branch under the correct name of the company
and its name must contain in addition the word "branch"; and
(3) demonstrate that the applicant company will have adequate
capital, sound management, and adequate future earnings
prospects after the establishment of the branch.
(e) The location of the principal office or any branch established
under this section may be changed at any time when authorized by the
board of directors of the company and approved by the department.
(f) Any company desiring to open or establish one (1) or more
branches or change location of an existing branch or the principal
office must file a written application therefor, in such form and
containing such information as may be prescribed by the department.
If the department determines that the requirements of subsection (d)
have been satisfied, the department may in its discretion approve the
application.
(g) A company is entitled to open or establish an automated teller
facility in any location within Indiana or as permitted by the laws of the
state in which the automated teller machine is to be located. An
automated teller facility may be owned or operated individually by any
company or jointly on a cost sharing or fee basis.
(h) A branch by acquisition may be established under this section
only if done in compliance with applicable provisions of IC 28-1-7 or
IC 28-1-8.
(i) A company that is authorized to issue, negotiate, and sell
certificates of investment or indebtedness and that holds a
certificate to engage in business under this chapter is entitled to
establish one (1) or more branches de novo and one (1) or more
branches by acquisition in any location outside Indiana. Any
business of the company may be transacted at a branch established
under this subsection to the same extent as at the principal office
of the company, subject to IC 28-2-18-19.
interest, if the individual:
(i) is an executive officer or a director of the related
interest and directly or indirectly owns, controls, or has
the power to vote more than ten percent (10%) of any
class of voting securities of the related interest; or
(ii) directly or indirectly owns, controls, or has the power
to vote more than ten percent (10%) of any class of
voting securities of the related interest and no other
person owns, controls, or has the power to vote a greater
percentage of that class of voting securities.
(14) "Executive officer" includes any of the following officers
of a credit union:
(A) The chairman of the board of directors.
(B) The president.
(C) A vice president.
(D) The cashier.
(E) The secretary.
(F) The treasurer.
(15) "Immediate family" means the spouse of an individual,
the individual's minor children, and any of the individual's
children, including adults, residing in the individual's home.
(16) "Officer" means any individual who participates or has
the authority to participate in major policymaking functions
of a credit union, regardless of whether:
(A) the individual has an official title;
(B) the individual's title designates the individual as an
assistant; or
(C) the individual is serving without salary or other
compensation.
(17) "Related interest", with respect to an individual, means:
(A) a partnership, a corporation, or another business
organization that is controlled by the individual; or
(B) a political campaign committee:
(i) controlled by the individual; or
(ii) the funds or services of which benefit the individual.
(18) "Unimpaired capital and unimpaired surplus" means the
sum of:
(A) undivided profits;
(B) reserve for contingencies;
(C) regular reserve; and
(D) allowance for loan and lease losses.
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 8. (a) The use of any
name or title which that contains the words "credit union", or that
means "credit union" in any language, is unlawful unless the name
is used by:
(1) a corporation authorized to use the words "credit union" under
Indiana or United States law; or
(2) the Indiana Credit Union League, Inc., and its affiliates.
(b) The department is authorized to exercise the powers under
IC 28-11-4 against a person, firm, limited liability company, or
corporation that improperly holds itself out as a credit union.
(c) A person, firm, limited liability company, or corporation that
violates this section is subject to a penalty of five hundred dollars
($500) per day for each day during which the violation continues.
The penalty imposed shall be recovered in the name of the state on
relation of the department and, when recovered, shall be paid into
the financial institutions fund established by IC 28-11-2-9.
district or municipality or instrumentality of Indiana and that
are not in default.
(B) Bonds or debentures issued by the Federal Home Loan
Bank Act (12 U.S.C. 1421 through 1449) or the Home Owners'
Loan Act (12 U.S.C. 1461 through 1468).
(C) Interest-bearing obligations of the FSLIC Resolution Fund
and obligations of national mortgage associations issued under
the authority of the National Housing Act.
(D) Mortgages on real estate situated in Indiana which are
fully insured under Title 2 of the National Housing Act (12
U.S.C. 1707 through 1715z).
(E) Obligations issued by farm credit banks and banks for
cooperatives under the Farm Credit Act of 1971 (12 U.S.C.
2001 through 2279aa-14).
(F) In savings and loan associations, other credit unions that
are insured under IC 28-7-1-31.5, and certificates of
indebtedness or investment of an industrial loan and
investment company if the association or company is federally
insured. Not more than twenty percent (20%) of the assets of
a credit union may be invested in the shares or certificates of
an association or company; nor more than forty percent (40%)
in all such associations and companies.
(G) Corporate credit unions.
(H) Federal funds or similar types of daily funds transactions
with other financial institutions.
(I) Mutual funds created and controlled by credit unions, credit
union associations, or their subsidiaries. Mutual funds referred
to in this clause may invest only in instruments that are
approved for credit union purchase under this chapter.
(J) Shares, stocks, or obligations of any credit union service
organization (as defined in Section 712 of the Rules and
Regulations of the National Credit Union Administration) with
the approval of the department. Not more than five percent
(5%) of the total paid in and unimpaired capital of the credit
union may be invested under this clause.
(5) (4) To deposit its funds into:
(A) depository institutions that are federally insured; or
(B) state chartered credit unions that are privately insured by
an insurer approved by the department.
(6) (5) To purchase, hold, own, or convey real estate as may be
conveyed to the credit union in satisfaction of debts previously
contracted or in exchange for real estate conveyed to the credit
union.
(7) (6) To own, hold, or convey real estate as may be purchased
by the credit union upon judgment in its favor or decrees of
foreclosure upon mortgages.
(8) (7) To issue shares of stock and upon the terms, conditions,
limitations, and restrictions and with the relative rights as may be
stated in the bylaws of the credit union, but no stock may have
preference or priority over the other to share in the assets of the
credit union upon liquidation or dissolution or for the payment of
dividends except as to the amount of the dividends and the time
for the payment of the dividends as provided in the bylaws.
(9) (8) To charge the member's share account for the actual cost
of necessary locator service when the member has failed to keep
the credit union informed about the member's current address.
The charge shall be made only for amounts paid to a person or
concern normally engaged in providing such service, and shall be
made against the account or accounts of any one (1) member not
more than once in any twelve (12) month period.
(10) (9) To transfer to an accounts payable, a dormant account, or
a special account share accounts which have been inactive, except
for dividend credits, for a period of two (2) years. The credit
union shall not consider the payment of dividends on the
transferred account.
(11) (10) To invest in fixed assets with the funds of the credit
union. An investment in fixed assets in excess of five percent
(5%) of its assets is subject to the approval of the department.
(12) (11) To establish branch offices, upon approval of the
department, provided that all books of account shall be
maintained at the principal office.
(13) (12) To pay an interest refund on loans proportionate to the
interest paid during the dividend period by borrowers who are
members at the end of the dividend period.
(14) (13) To purchase life savings and loan protection insurance
for the benefit of the credit union and its members, if:
(A) the coverage is placed with an insurance company licensed
to do business in Indiana; and
(B) no officer, director, or employee of the credit union
personally benefits, directly or indirectly, from the sale or
purchase of the coverage.
(15) (14) To sell and cash negotiable checks, travelers checks,
and money orders for members.
(16) (15) To purchase members' notes from any liquidating credit
union, with written approval from the department, at prices agreed
upon by the boards of directors of both the liquidating and the
purchasing credit unions. However, the aggregate of the unpaid
balances of all notes of liquidating credit unions purchased by any
one (1) credit union shall not exceed ten percent (10%) of its
unimpaired capital and surplus unless special written
authorization has been granted by the department.
(17) (16) To exercise such incidental powers necessary or
requisite to enable it to carry on effectively the business for which
it is incorporated.
(18) (17) To act as a custodian or trustee of any trust created or
organized in the United States and forming part of a stock bonus,
pension, or profit sharing tax advantaged savings plan which
qualifies or qualified for specific tax treatment under Section
408(a) or 223, Section 401(d), 408, 408A, or 530 of the Internal
Revenue Code, if the funds of the trust are invested only in share
accounts or insured certificates of the credit union.
(19) (18) To issue shares of its capital stock or insured certificates
to a trustee or custodian of a pension plan, profit sharing plan, or
stock bonus plan which qualifies for specific tax treatment under
Sections 401(d) or 408(a) of the Internal Revenue Code.
(20) (19) A credit union may exercise any rights and privileges
that are:
(A) granted to federal credit unions; but
(B) not authorized for credit unions under the Indiana Code
(except for this section) or any rule adopted under the Indiana
Code;
if the credit union complies with section 9.2 of this chapter.
(21) (20) To sell, pledge, or discount any of its assets. However,
a credit union may not pledge any of its assets as security for the
safekeeping and prompt payment of any money deposited, except
that a credit union may, for the safekeeping and prompt payment
of money deposited, give security as authorized by federal law.
(22) (21) To purchase assets of another credit union and to
assume the liabilities of the selling credit union.
(23) (22) To act as a fiscal agent of the United States and to
receive deposits from nonmember units of the federal, state, or
county governments, from political subdivisions, and from other
credit unions upon which the credit union may pay varying
interest rates at varying maturities subject to terms, rates, and
conditions that are established by the board of directors. However,
the total amount of public funds received from units of state and
county governments and political subdivisions that a credit union
may have on deposit may not exceed twenty percent (20%) of the
total assets of that credit union, excluding those public funds.
(24) (23) To join the National Credit Union Administration
Central Liquidity Facility.
(25) (24) To participate in community investment initiatives
under the administration of organizations:
(A) exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code; and
(B) located or conducting activities in communities in which
the credit union does business.
Participation may be in the form of either charitable contributions
or participation loans. In either case, disbursement of funds
through the administering organization is not required to be
limited to members of the credit union. Total contributions or
participation loans may not exceed one tenth of one percent
(0.001) of total assets of the credit union. A recipient of a
contribution or loan is not considered qualified for credit union
membership. A contribution or participation loan made under this
subdivision must be approved by the board of directors.
(26) (25) To establish and operate an automated teller machine
(ATM):
(A) at any location within Indiana; or
(B) as permitted by the laws of the state in which the
automated teller machine is to be located.
(27) (26) To demand and receive, for the faithful performance and
discharge of services performed under the powers vested in the
credit union by this article:
(A) reasonable compensation, or compensation as fixed by
agreement of the parties;
(B) all advances necessarily paid out and expended in the
discharge and performance of its duties; and
(C) unless otherwise agreed upon, interest at the legal rate on
the advances referred to in clause (B).
(28) (27) Subject to any restrictions the department may impose,
to become the owner or lessor of personal property acquired upon
the request and for the use of a member and to incur additional
obligations as may be incident to becoming an owner or lessor of
such property.
semiannually, on or before January 31 and July 31 of each year,
quarterly on forms approved by the director. Reports in addition to the
regular reports may be required. A credit union that fails to comply
with this section may be required by the department to pay a civil
penalty of one hundred dollars ($100) for each day of noncompliance.
Money paid under this section as determined by the department shall
be deposited into the financial institutions fund established by
IC 28-11-2-9. Except as specified in IC 28-11-3-3 concerning
individual depositors, any information contained in call reports made
by credit unions to the department must be made available to any
person upon request.
assignment of shares or the endorsement of a note is considered
security.
(3) (2) Except as otherwise provided in this section, the terms of
any loan to a member with a maturity of more than six (6) months
shall provide for principal and interest payments that will
amortize the obligation in full within the terms of the loan
contract. If the income of the borrowing member is seasonal, the
terms of the loan contract may provide for seasonal amortization.
(4) (3) Loans may be made upon the security of improved or
unimproved real estate. Except as otherwise specified in this
section, such loans must be secured by a first lien upon real estate
prior to all other liens, except for taxes and assessments not
delinquent, and may be made with repayment terms other than as
provided in subdivision (3). (2). When the amount of a loan is at
least two hundred fifty thousand dollars ($250,000), the fair cash
value of real estate security shall be determined by a written
appraisal made by one (1) or more qualified state licensed or
certified appraisers designated by the board of directors. The
credit union loan folder for real estate mortgage loans shall
include, when applicable:
(A) the loan application;
(B) the mortgage instrument;
(C) the note;
(D) the disclosure statement;
(E) the documentations of property insurance;
(F) an appraisal on the real estate for which the loan is made;
and
(G) the attorney's opinion of titles or a certificate of title
insurance on the real estate upon which the mortgage loan is
made.
(5) (4) The total unpaid balance of all loans authorized by this
subdivision shall, at no time, exceed thirty-three and one-third
percent (33 1/3%) of the total assets of the credit union at the time
the loans are granted. This section does not limit unpaid balances
secured by adjustable rate mortgages or loans with a remaining
maturity of five (5) years or less. Loans made upon security of
real estate are subject to the following restrictions:
(A) Real estate loans in which no principal amortization is
required shall provide for the payment of interest at least
annually and shall mature within five (5) years of the date of
the loan unless extended and shall not exceed fifty percent
(50%) of the fair cash value of the real estate used as security.
not make a loan under this section to an individual, the
individual's immediate family, or the individual's related
interests if the amount of the loan, either by itself or when
added to the amounts of all other loans made under this
section to the individual, the individual's immediate family, or
the individual's related interests, exceeds the greater of:
(A) five percent (5%) of the credit union's unimpaired
capital and surplus; or
(B) twenty-five thousand dollars ($25,000);
unless the loan is first approved by the credit union's board of
directors.
(5) A credit union may not make a loan under this section to
an individual, the individual's immediate family, or the
individual's related interests if the amount of the loan, either
by itself or when added to the amounts of all other loans made
under this section to the individual, the individual's immediate
family, or the individual's related interests, exceeds the
lending limits set forth in IC 28-7-1-39.
(6) Subject to subsection (b), the total amount of all loans
made under this section may not exceed the credit union's
unimpaired capital and surplus.
(b) The limits set forth in subsections (a)(4) and (a)(6) do not
apply to any of the following:
(1) An extension of credit made under a line of credit
approved under subsection (a)(4) if the extension of credit is
made not later than fourteen (14) months after the line of
credit was approved.
(2) A loan, in any amount, to finance the education of an
individual's child.
(3) A loan, in any amount, to finance or refinance the
purchase, construction, maintenance, or improvement of a
residence of the individual, if:
(A) the loan is secured by a first lien on the residence and
the residence is owned, or will be owned after the loan is
made, by the individual; and
(B) in the case of a refinancing, the loan includes only the
amount used to repay the original loan, plus any closing
costs and any additional amount used for any purpose
described in this subdivision.
(4) A loan, in any amount, secured by a perfected security
interest in bonds, notes, certificates of indebtedness, or
treasury bills of the United States or in other obligations fully
guaranteed as to principal and interest by the United States.
(5) A loan, in any amount, secured by a perfected security
interest in a segregated deposit account in the lending credit
union.
(6) A loan made to an individual, the individual's immediate
family, or the individual's related interests, for any other
purpose, if the total amount of loans to the individual, the
individual's immediate family, or the individual's related
interests under this section does not exceed, at any given time,
the greater of:
(A) two and one-half percent (2.5%) of the credit union's
unimpaired capital and unimpaired surplus; or
(B) twenty-five thousand dollars ($25,000);
but in no event more than one hundred thousand dollars
($100,000).
(c) At least quarterly, the president or manager shall prepare
and deliver to the board of directors a report listing the
outstanding indebtedness of all officers, directors, and committee
members. A report prepared under this subsection must be
retained at the credit union for three (3) years and shall not be filed
with the department unless specifically requested. A report
required by this subsection must include:
(1) the amount of each indebtedness; and
(2) a description of the terms and conditions of each loan,
including:
(A) the interest rate;
(B) the original amount and date of the loan;
(C) the maturity date;
(D) payment terms;
(E) security, if any; and
(F) any unusual term or condition of a particular extension
of credit.
(d) The department may apply the provisions of 12 CFR 215
(Regulation O) in applying and administering this section.
all times equals or exceeds one hundred fifteen percent
(115%) of the outstanding amount of the loan or extension of
credit. The staples shall be fully covered by insurance
whenever it is customary to insure such staples.
(4) Loans or extensions of credit secured by bonds, notes,
certificates of indebtedness, or Treasury bills of the United
States or by any other obligation fully guaranteed as to
principal and interest by the United States are not subject to
any limitation based on capital and surplus.
(5) Loans or extensions of credit to or secured by
unconditional takeout commitment or guarantees of any
department, agency, bureau, board, commission, or
establishment of the United States or any corporation wholly
owned directly or indirectly by the United States are not
subject to any limitation based on capital and surplus.
(6) Loans or extensions of credit secured by a segregated
deposit account in the lending credit union are not subject to
any limitation based on capital and surplus.
(7) Loans or extensions of credit to any credit union, when the
loans or extensions of credit are approved by the director of
the department, are not subject to any limitation based on
capital and surplus.
(8) Loans or extensions of credit to the Student Loan
Marketing Association are not subject to any limitation based
on capital and surplus.
(f) Loans or extensions of credit arising from the discount of
negotiable or nonnegotiable installment consumer paper that
carries a full recourse endorsement or unconditional guarantee by
the member transferring the paper is subject under this section to
a maximum limitation equal to twenty-five percent (25%) of the
capital and surplus, notwithstanding the collateral requirements
set forth in subsection (d).
(g) If the credit union's files or the knowledge of the credit
union's officers of the financial condition of each maker of
consumer paper described in subsection (f) is reasonably adequate,
and an officer of the credit union designated for that purpose by
the board of directors of the credit union certifies in writing that
the credit union is relying primarily upon the responsibility of each
maker for payment of the loans or extensions of credit and not
upon any full or partial recourse endorsement or guarantee by the
transferor, the limitations of this section as to the loans or
extensions of credit of each maker shall be the sole applicable loan
limitations.
(h) Loans or extensions of credit secured by shipping documents
or instruments transferring or securing title covering livestock or
giving a lien on livestock when the market value of the livestock
securing the obligation is not at any time less than one hundred
fifteen percent (115%) of the face amount of the note covered are
subject under this section, notwithstanding the collateral
requirements set forth in subsection (d), to a maximum limitation
equal to twenty-five percent (25%) of the capital and surplus.
(i) Loans or extensions of credit that arise from the discount by
dealers in dairy cattle of paper given in payment for dairy cattle,
which paper carries a full recourse endorsement or unconditional
guarantee of the seller and that are secured by the cattle being sold,
are subject under this section, notwithstanding the collateral
requirements set forth in subsection (d), to a limitation of
twenty-five percent (25%) of the capital and surplus.
(j) Except as otherwise provided, an officer, director, employee,
or attorney of a credit union who stipulates for, receives, or
consents or agrees to receive, any fee, commission, gift, or thing of
value, from any person, for the purpose of procuring or
endeavoring to procure for any member any loan from or the
purchase or discount of any paper, note, draft, check, or bill of
exchange by the credit union, commits a Class A misdemeanor.
(k) Except as otherwise provided in this chapter, any credit
union that holds obligations of indebtedness in violation of the
limitations prescribed in this section shall, not later than July 1,
2006, cause the amount of the obligations to conform to the
limitations prescribed by this chapter and by the provisions of this
section. The department may, in its discretion, extend the time for
effecting this conformity, in individual instances, if the interests of
the depositors will be protected and served by an extension. Upon
the failure of a credit union to comply with the limitations, in
accordance with this section or in accordance with any order of the
department concerning the limitations, the department may
declare that the credit union is conducting its business in an
unauthorized or unsafe manner and proceed in accordance with
IC 28-1-3.1-2.
(l) The department may apply the provisions of 12 CFR 32 in
the application and administration of this chapter.
regulation in effect January 1, 2004. 2005.
the provision of IC 24, IC 26, IC 28, IC 29, or IC 30 for ninety (90)
days after the date on which the department receives the letter, unless
otherwise notified by the department. This period may be extended for
an additional ninety (90) days if the department determines that the
requesting entity's letter raises issues requiring additional information
or additional time for analysis. If the department extends the period for
the department's review of the request, the requesting entity may
operate as if the requesting entity is exempt from a provision of IC 24,
IC 26, IC 28, IC 29, or IC 30 during the extended period of review
only if the requesting entity receives prior written approval from the
department. However:
(1) the department must:
(A) approve or deny the requested exemption; or
(B) convene a hearing;
not later than ninety (90) days after the department receives the
requesting entity's letter, unless the department has extended
the period for the department's review under this subsection;
and
(2) if a hearing is convened, the department must approve or deny
the requested exemption not later than ninety (90) days after the
hearing is concluded.
(e) The department may refuse to exempt a requesting entity from
a provision of IC 24, IC 26, IC 28, IC 29, or IC 30 if the department
finds that any of the following conditions apply:
(1) The department determines that a described provision of
IC 24, IC 26, IC 28, IC 29, or IC 30 is not preempted for a
federally chartered entity of the:
(A) same; or
(B) functionally equivalent;
type.
(2) The extension of the federal preemption in the form of an
exemption from a provision of IC 24, IC 26, IC 28, IC 29, or
IC 30 to the requesting entity would:
(A) adversely affect the safety and soundness of the requesting
entity; or
(B) result in an unacceptable curtailment of consumer
protection provisions.
(3) The failure of the department to provide for the exemption
from a provision of IC 24, IC 26, IC 28, IC 29, or IC 30 will not
result in a competitive disadvantage to the requesting entity.
(f) The operation of a financial institution in a manner consistent
with exemption from a provision of IC 24, IC 26, IC 28, IC 29, or IC 30
under this section is not a violation of any provision of the Indiana
Code or rules adopted under IC 4-22-2.
(g) If a financial institution is exempted from the provisions of
IC 24, IC 26, IC 28, IC 29, or IC 30 in compliance with this section, the
department shall do the following:
(1) Determine whether the exemption shall apply to all financial
institutions that, in the opinion of the department, possess a
charter that is:
(A) the same as; or
(B) functionally the equivalent of;
the charter of the exempt institution.
(2) For purposes of the determination required under subdivision
(1), ensure that applying the exemption to the financial
institutions described in subdivision (1) will not:
(A) adversely affect the safety and soundness of the financial
institutions; or
(B) unduly constrain Indiana consumer protection provisions.
(3) Issue an order published in the Indiana Register that specifies
whether the exemption applies to the financial institutions
described in subdivision (1).
(h) If the department denies the request of a financial institution
under this section for exemption from Indiana Code provisions that are
preempted for federally chartered institutions, the requesting institution
may appeal the decision of the department to the circuit court of the
county in which the principal office of the requesting institution is
located.
(i) If the department determines that federal law has preempted
a provision of IC 24, IC 26, IC 28, IC 29, or IC 30 as the provision
applies to an operating subsidiary of a federally chartered entity,
the provision of IC 24, IC 26, IC 28, IC 29, or IC 30 applies to a
qualifying subsidiary (as defined in IC 28-13-16-1) of a state
chartered entity only to the same extent that the department
determines the provision applies to the operating subsidiary of:
(1) the same; or
(2) the functionally equivalent;
type of federally chartered entity. In determining whether to
extend the exemption from a provision of IC 24, IC 26, IC 28,
IC 29, or IC 30 to a qualifying subsidiary (as defined in
IC 28-13-16-1) of a state chartered entity under this subsection, the
department shall use the procedures and undertake the
considerations described in this section for a preemption
determination with respect to a state chartered entity.
organized.
(9) The effective date of the articles of incorporation.
savings plan administrator through a payroll savings plan.
Sec. 2. As used in this chapter, "payroll savings plan" means a
method provided by an employer to the employer's employees for
the voluntary purchase of United States savings bonds on a regular
schedule through the designation of an amount to be deducted each
pay period until a sufficient amount accumulates to pay the
purchase price of at least one (1) United States savings bond.
Sec. 3. As used in this chapter, "payroll savings plan
administrator" means an organization that:
(1) has been qualified by the Federal Reserve Bank or the
Bureau of the Public Debt under 31 CFR Part 317 to sell
United States savings bonds; and
(2) operates payroll savings plans on behalf of employers for
the purchase of United States savings bonds.
Sec. 4. As used in this chapter, "static balance" means an
amount held by a payroll savings plan administrator for a
participant who:
(1) is not making allotments of payroll deductions to the
payroll savings plan administrator; but
(2) has not terminated the individual's directions to the
participant's employer or the employer's payroll savings plan
administrator to purchase United States savings bonds for the
individual when a sufficient balance accumulates to pay the
purchase price.
Sec. 5. Subject to this chapter, a payroll savings plan
administrator is entitled to reimbursement from a static balance
for reasonable expenses incurred in the performance of static
balance administration services beginning with the year after the
participant ceases to make allotments of payroll deductions to the
payroll savings plan administrator.
Sec. 6. Section 5 of this chapter applies only to an account in
which the static balance does not exceed fifty dollars ($50).
Sec. 7. Section 5 of this chapter does not apply to accounts
containing a static balance that would otherwise be reported to the
state under IC 32-34-1-26 as Indiana property.
Sec. 8. The maximum charge that may be imposed on an
account with a static balance is one dollar ($1) per month.
cash, interest, earnings, or dividends earned or declared on a
security in an account, a reinvestment account, or a brokerage
account, whether or not credited to the account before the owner's
death; or
(2) an investment management account or custody account
with a corporate fiduciary or with a bank, savings bank, or
savings association with trust powers, including securities in
the account, a cash balance in the account, and cash, cash
equivalents, interest, earnings, or dividends earned or
declared on a security in the account, whether or not credited
to the account before the owner's death; or
(2) (3) a cash balance or other property held for or due to the
owner of a security as a replacement for or product of an account
security, regardless of whether the cash was credited to the
account before the owner's death.