AN ACT to amend the Indiana Code concerning financial institutions.
of a contractor of the office of Medicaid policy and planning
was in error; and
(C) with respect to each finding, action, or determination of
the office of Medicaid policy and planning or of a contractor
of the office of Medicaid policy and planning, the statutes or
rules that support the provider's contentions of error.
Not more than thirty (30) days after filing a petition for review
under this section, and upon a finding of good cause by the
administrative law judge, a person may amend the statement of
issues contained in a petition for review to add one (1) or more
additional issues.
(3) Is filed:
(A) if with respect to an order described in section 4, 5,
6(a)(1), or 6(a)(2), or 6(a)(5) of this chapter, with the ultimate
authority for the agency issuing the order within fifteen (15)
days after the person is given notice of the order or any longer
period set by statute; or
(B) if with respect to a determination described in section
6(a)(3) or 6(a)(4) of this chapter, with the office of Medicaid
policy and planning not more than one hundred eighty (180)
days after the hospital is provided notice of the determination.
The issuance of an amended notice of program reimbursement by
the office of Medicaid policy and planning does not extend the
time within which a hospital must file a petition for review from
the original notice of program reimbursement under clause (B),
except for matters that are the subject of the amended notice of
program reimbursement.
If the petition for review is denied, the petition shall be treated as a
petition for intervention in any review initiated under subsection (d).
(b) If an agency denies a petition for review under subsection (a)
and the petitioner is not allowed to intervene as a party in a proceeding
resulting from the grant of the petition for review of another person, the
agency shall serve a written notice on the petitioner that includes the
following:
(1) A statement that the petition for review is denied.
(2) A brief explanation of the available procedures and the time
limit for seeking administrative review of the denial under
subsection (c).
(c) An agency shall assign an administrative law judge to conduct
a preliminary hearing on the issue of whether a person is qualified
under subsection (a) to obtain review of an order when a person
requests reconsideration of the denial of review in a writing that:
IC 5-28-3 and the corporation's funds, accounts, and financial
affairs; and
(2) department of financial institutions established by
IC 28-11-1-1 and the department's funds, accounts, and
financial affairs;
shall be examined biennially by the state board of accounts.
(d) On every examination under this section, inquiry shall be made
as to the following:
(1) The financial condition and resources of each municipality,
office, institution, or entity.
(2) Whether the laws of the state and the uniform compliance
guidelines of the state board of accounts established under section
24 of this chapter have been complied with.
(3) The methods and accuracy of the accounts and reports of the
person examined.
The examinations shall be made without notice.
(e) If during an examination of a state office under this chapter the
examiner encounters an inefficiency in the operation of the state office,
the examiner may comment on the inefficiency in the examiner's report.
(f) The state examiner, deputy examiners, any field examiner, or any
private examiner, when engaged in making any examination or when
engaged in any official duty devolved upon them by the state examiner,
is entitled to do the following:
(1) Enter into any state, county, city, township, or other public
office in this state, or any entity, agency, or instrumentality, and
examine any books, papers, documents, or electronically stored
information for the purpose of making an examination.
(2) Have access, in the presence of the custodian or the
custodian's deputy, to the cash drawers and cash in the custody of
the officer.
(3) During business hours, examine the public accounts in any
depository that has public funds in its custody pursuant to the
laws of this state.
(g) The state examiner, deputy examiner, or any field examiner,
when engaged in making any examination authorized by law, may issue
subpoenas for witnesses to appear before the examiner in person or to
produce books, papers, or other records (including records stored in
electronic data processing systems) for inspection and examination.
The state examiner, deputy examiner, and any field examiner may
administer oaths and examine witnesses under oath orally or by
interrogatories concerning the matters under investigation and
examination. Under the authority of the state examiner, the oral
examinations may be transcribed with the reasonable expense paid by
the examined person in the same manner as the compensation of the
field examiner is paid. The subpoenas shall be served by any person
authorized to serve civil process from any court in this state. If a
witness duly subpoenaed refuses to attend, refuses to produce
information required in the subpoena, or attends and refuses to be
sworn or affirmed, or to testify when called upon to do so, the examiner
may apply to the circuit court having jurisdiction of the witness for the
enforcement of attendance and answers to questions as provided by the
law governing the taking of depositions.
warrant is returned uncollected to the department under section 3 of
this chapter, the department may take any of the following actions
without judicial proceedings:
(1) The department may levy upon the property of the taxpayer
that is held by a financial institution by sending a claim to the
financial institution. Upon receipt of a claim under this
subdivision, the financial institution shall surrender to the
department the taxpayer's property. If the taxpayer's property
exceeds the amount owed to the state by the taxpayer, the
financial institution shall surrender the taxpayer's property in an
amount equal to the amount owed. After receiving the
department's notice of levy, the financial institution is required to
place a sixty (60) day hold on or restriction on the withdrawal of
funds the taxpayer has on deposit or subsequently deposits, in an
amount not to exceed the amount owed.
(2) The department may garnish the accrued earnings and wages
of a taxpayer by sending a notice to the taxpayer's employer. Upon
receipt of a notice under this subdivision, an employer shall
garnish the accrued earnings and wages of the taxpayer in an
amount equal to the full amount that is subject to garnishment
under IC 24-4.5-5. The amount garnished shall be remitted to the
department. The employer is entitled to a fee in an amount equal
to the fee allowed under IC 24-4.5-5-105(5). However, the fee
shall be borne entirely by the taxpayer.
(3) The department may levy upon and sell property and may:
(A) take immediate possession of the property and store it in
a secure place; or
(B) leave the property in the custody of the taxpayer;
until the day of the sale. The department shall provide notice of
the sale in one (1) newspaper, as provided in IC 5-3-1-2. If the
property is left in the custody of the taxpayer, the department may
require the taxpayer to provide a joint and several delivery bond,
in an amount and with a surety acceptable to the department. At
any time before the sale, any owner or part owner of the property
may redeem the property from the judgment by paying the
department the amount of the judgment. The proceeds of the sale
shall be applied first to the collection expenses and second to the
payment of the delinquent taxes and penalties. Any balance
remaining shall be paid to the taxpayer.
(b) A special counsel or collection agency that makes a claim to
a financial institution on behalf of the department under subsection
(a)(1) or on behalf of a county treasurer under IC 6-1.1-23-10(c)(1)
shall submit the following to the financial institution:
(1) Proof of employment or contract with the department
under section 4 of this chapter or county treasurer under
IC 6-1.1-23-1.5.
(2) Subject to subsection (c), a fee of ten dollars ($10) for each
claim.
(3) A notice of levy issued by the department or county
treasurer.
(4) A form approved by the department or county treasurer
containing instructions for remitting funds to the special
counsel or collection agency making the claim.
(5) A stamped, self-addressed envelope for return of the form
submitted under subdivision (4).
(c) A financial institution, special counsel, or collection agency
may not assess or pass along a fee under subsection (b)(2) to:
(1) the department;
(2) the county treasurer;
(3) the taxpayer; or
(4) any other individual or unit of government.
consumer loans may be made and must describe the nature
of the proposed transactions.
(ii) The industrial loan and investment company provides
written consent allowing the department to consult with
and review information provided by other state regulators,
as may be requested by the department, concerning the
activities identified in clause (i) of any affiliate or
subsidiary engaging in consumer lending to Indiana
residents in the states identified under clause (i).
(iii) The industrial loan and investment company provides
written consent allowing the department to inspect or
examine all out of state locations in which an affiliate or a
subsidiary of the industrial loan and investment company
engages in the activities identified under clause (i), for the
purpose of investigating the affiliate's or subsidiary's
consumer lending practices involving Indiana residents. An
inspection or examination performed by the department
under this clause is subject to the schedule of fees
established by the department under IC 28-11-3-5.
For purposes of subdivisions (a) through (c), an offer is received by
a creditor in Indiana if the offer is physically delivered, or
otherwise transmitted or communicated, to a person who has
actual or apparent authority to act for the creditor in Indiana,
regardless of whether approval, acceptance, or ratification by any
other agent or representative of the creditor in another state is
necessary to give legal consequence to the consumer credit
transaction.
(2) With respect to sales made pursuant to a revolving charge
account (IC 24-4.5-2-108), this article applies if the buyer's
communication or indications of the buyer's intention to establish the
account is received by the seller in this state. If no communication or
indication of intention is given by the buyer before the first sale, this
article applies if the seller's communication notifying the buyer of the
privilege of using the account is mailed or personally delivered in this
state.
(3) With respect to loans made pursuant to a lender credit card or
similar arrangement, this article applies if the debtor's communication
or indication of the debtor's intention to establish the arrangement with
the lender is received by the lender in this state. If no communication
or indication of intention is given by the debtor before the first loan,
this article applies if the lender's communication notifying the debtor
of the privilege of using the arrangement is mailed or personally
delivered in this state.
(4) (2) IC 24-4.5-5-101 through IC 24-4.5-5-108 apply to actions or
other proceedings brought in this state to enforce rights arising from
consumer credit sales, consumer leases, or consumer loans, or
extortionate extensions of credit, wherever made.
(5) If a consumer credit sale, consumer lease, or consumer loan, or
modification thereof, is made in another state to a person who is a
resident of this state when the sale, lease, loan, or modification is made,
the following provisions apply as though the transaction occurred in
this state:
(a) a seller, a lessor, a lender, or an assignee of the seller's,
lessor's, or assignee's rights, may not collect charges through
actions or other proceedings in excess of those permitted by
IC 24-4.5-2, IC 24-4.5-3, or IC 24-4.5-7; and
(b) a seller, a lessor, a lender, or an assignee of the seller's,
lessor's, or assignee's rights, may not enforce rights against the
buyer, lessee, or debtor, with respect to the provisions of
agreements which violate the provisions on limitations on
agreements and practices of IC 24-4.5-2, IC 24-4.5-3, or
IC 24-4.5-7.
(6) (3) Except as provided in subsection (4), (2), a sale, lease, loan,
or modification thereof, made in another state to a person who was not
a resident of this state when the sale, lease, loan, or modification was
made is valid and enforceable in this state according to its terms to the
extent that it is valid and enforceable under the laws of the state
applicable to the transaction.
(7) (4) For the purposes of this article, the residence of a buyer,
lessee, or debtor is the address given by the buyer, lessee, or debtor as
the buyer's, lessee's, or debtor's residence in any writing signed or
electronic communication made by the buyer, lessee, or debtor in
connection with a credit transaction. Until the buyer, lessee, or debtor
notifies the creditor of a new or different address, the given address is
presumed to be unchanged.
(7.5) With respect to a consumer credit sale, consumer lease, or
consumer loan, or modification thereof, to which this article does not
otherwise apply by reason of subsections (1) through (3), if pursuant to
a solicitation relating to a consumer credit sale, consumer lease, or
consumer loan, a person who is a resident of this state sends a signed
writing evidencing the obligation or offer of the person to a creditor in
another state and receives the goods or service purchased, the goods
leased, or the cash proceeds of the loan in this state:
(a) a seller, a lessor, a lender or an assignee of the seller's, lessor's,
or lender's rights may not contract for or receive charges in excess
of those permitted by IC 24-4.5-2, IC 24-4.5-3, or IC 24-4.5-7;
(b) the provisions of IC 24-4.5-2-301, IC 24-4.5-3-301, and
IC 24-4.5-7-301 shall apply as though the sale, lease, or loan were
made in this state; and
(c) the provisions of IC 24-4.5-6-101 through IC 24-4.5-6-117
shall apply as though the sale, lease, or loan were made in this
state.
(7.6) For the purpose of this section, a solicitation, relating to a
consumer credit sale, consumer lease, or consumer loan, includes: (a)
with respect to sales and leases, an offer by a catalog, pamphlet, flier,
letter, or similar written material to sell or lease goods or to sell
services if the terms for the extension of credit are contained therein
and regardless of whether or not the instrument of solicitation is sent
or delivered at the request of the buyer or lessee; (b) with respect to
loans, an offer by pamphlet, flier, letter, or similar written material to
make loans if the terms for the extension of credit are contained therein
and regardless of whether or not the instrument of solicitation is sent
or delivered at the request of the debtor; and (c) with respect to sales,
leases, and loans, an offer by telephone to extend credit if initiated by
the seller, lessor, or lender.
(8) (5) Notwithstanding other provisions of this section:
(a) except as provided in subsection (4), (2), this article does not
apply if the buyer, lessee, or debtor is not a resident of this state
at the time of a credit transaction and the parties then agree that
the law of the buyer's, lessee's, or debtor's residence applies; and
(b) this article applies if the buyer, lessee, or debtor is a resident
of this state at the time of a credit transaction and the parties then
agree that the law of this state applies.
(9) (6) Except as provided in subsection (8), (5), the following
agreements by a buyer, lessee, or debtor are invalid with respect to
consumer credit sales, consumer leases, consumer loans, or
modifications thereof, to which this article applies:
(a) that the law of another state shall apply;
(b) that the buyer, lessee, or debtor consents to the jurisdiction of
another state; and
(c) that fixes venue.
(10) (7) The following provisions of this article specify the
applicable law governing certain cases:
(a) applicability (IC 24-4.5-6-102) of the provisions on powers
and functions of the department; and
(b) applicability (IC 24-4.5-6-201) of the provisions on
notification and fees.
(8) If a creditor has violated the provisions of this article that
apply to the authority to make consumer loans (IC 24-4.5-3-502),
the loan is void and the debtor is not obligated to pay either the
principal or loan finance charge, as set forth in IC 24-4.5-5-202.
property, or against liability, if the seller furnishes a clear and
specific statement in writing to the buyer, setting forth the cost of
the insurance if obtained from or through the seller and stating
that the buyer may choose the person, subject to the seller's
reasonable approval, through whom the insurance is to be
obtained; and
(b) with respect to consumer credit insurance providing life,
accident, unemployment or other loss of income, or health
coverage, if the insurance coverage is not a factor in the approval
by the seller of the extension of credit and is clearly disclosed in
writing to the buyer, and if, in order to obtain the insurance in
connection with the extension of credit, the buyer gives specific,
affirmative, written indication of the desire to do so after written
disclosure of the cost.
(3) With respect to a debt secured by an interest in land, the
following closing costs, if the costs are bona fide, reasonable in
amount, and not for the purpose of circumvention or evasion of this
article:
(a) fees for title examination, abstract of title, title insurance,
property surveys, or similar purposes;
(b) fees for preparing deeds, mortgages, and reconveyance,
settlement, and similar documents;
(c) notary and credit report fees;
(d) amounts required to be paid into escrow or trustee accounts if
the amounts would not otherwise be included in the loan finance
charge; and
(e) appraisal fees.
following closing costs, if they are bona fide, reasonable in
amount, and not for the purpose of circumvention or evasion of
this article:
(i) Fees for title examination, abstract of title, title insurance,
property surveys, or similar purposes.
(ii) Fees for preparing deeds, mortgages, and reconveyance,
settlement, and similar documents.
(iii) Notary and credit report fees.
(iv) Amounts required to be paid into escrow or trustee
accounts if the amounts would not otherwise be included in
the loan finance charge.
(v) Appraisal fees.
(e) Notwithstanding provisions of the Federal Consumer Credit
Protection Act concerning disclosure, charges for other benefits,
including insurance, conferred on the debtor, if the benefits are of
value to the debtor and if the charges are reasonable in relation
to the benefits, are of a type which is not for credit and are
excluded as permissible additional charges from the loan finance
charge. With respect to any other additional charge not
specifically provided for in this section to be a permitted charge
under this subsection, the creditor must submit a written
explanation of the charge to the department indicating how the
charge would be assessed and the value or benefit to the debtor.
Supporting documents may be required by the department. The
department shall determine whether the charge would be of
benefit to the debtor and is reasonable in relation to the benefits.
(f) A charge not to exceed twenty twenty-five dollars ($20) ($25)
for each return by a bank or other depository institution of a
dishonored check, negotiable order of withdrawal, or share draft
issued by the debtor.
(g) With respect to a revolving loan account, a fee not to exceed
twenty twenty-five dollars ($20) ($25) in each billing cycle
during which the balance due under the revolving loan account
exceeds by more than one hundred dollars ($100) the maximum
credit limit for the account established by the lender.
(h) With respect to a revolving loan account, a transaction fee that
may not exceed the lesser of the following:
(i) Two percent (2%) of the amount of the transaction.
(ii) Ten dollars ($10).
The additional charges provided for in paragraphs subdivisions (f), (g),
and (h) are not subject to refund or rebate.
(2) An additional charge may be made for insurance in connection
with the loan, other than insurance protecting the lender against the
debtor's default or other credit loss:
(a) with respect to insurance against loss of or damage to property
or against liability, if the lender furnishes a clear and specific
statement in writing to the debtor, setting forth the cost of the
insurance if obtained from or through the lender and stating that
the debtor may choose the person, subject to the lender's
reasonable approval, through whom the insurance is to be
obtained; and
(b) with respect to consumer credit insurance providing life,
accident, unemployment or other loss of income, or health
coverage, if the insurance coverage is not a factor in the approval
by the lender of the extension of credit and this fact is clearly
disclosed in writing to the debtor, and if, in order to obtain the
insurance in connection with the extension of credit, the debtor
gives specific affirmative written indication of the desire to do so
after written disclosure of the cost of the insurance.
Alternative Mortgage Transaction Parity Act (12 U.S.C. 3802 et
seq.), the note evidencing the mortgage must contain a reference to
the applicable federal law.
(6)(c) is delinquent.
(7) (8) The applicant may deduct the fees required under subsection
(6)(a) through (6)(c) from the filing fees paid under IC 24-4.5-6-203.
(8) (9) A loan license issued under this section is not assignable or
transferable.
(10) Subject to subsection (11), the director may designate an
automated central licensing system and repository, operated by a
third party, to serve as the sole entity responsible for:
(a) processing applications and renewals for licenses under
this section; and
(b) performing other services that the director determines are
necessary for the orderly administration of the department's
licensing system.
(11) The director's authority to designate an automated central
licensing system and repository under subsection (10) is subject to
the following:
(a) The director or the director's designee may not require
any person exempt from licensure under this article, or any
employee or agent of an exempt person, to:
(i) submit information to; or
(ii) participate in;
the automated central licensing system and repository.
(b) Information stored in the automated central licensing
system and repository is subject to the confidentiality
provisions of IC 28-1-2-30 and IC 5-14-3. A person may not:
(i) obtain information from the automated central licensing
system and repository, unless the person is authorized to
do so by statute; or
(ii) initiate any civil action based on information obtained
from the automated central licensing system if the
information is not otherwise available to the person under
any other state law; or
(iii) initiate any civil action based on information obtained
from the automated central licensing system if the person
could not have initiated the action based on information
otherwise available to the person under any other state
law.
(c) Documents, materials, and other forms of information in
the control or possession of the automated central licensing
system and repository that are furnished by the director, the
director's designee, or a licensee, or that are otherwise
obtained by the automated central licensing system and
repository, are confidential and privileged by law and are not:
(i) subject to inspection under IC 5-14-3;
(ii) subject to subpoena;
(iii) subject to discovery; or
(iv) admissible in evidence in any civil action.
However, the director or the director's designee may use the
documents, materials, or other information available to the
director or the director's designee in furtherance of any
action brought in connection with the director's duties under
this article.
(d) Disclosure of documents, materials, and information:
(i) to the director or the director's designee; or
(ii) by the director or the director's designee;
under this subsection does not result in a waiver of any
applicable privilege or claim of confidentiality with respect to
the documents, materials, or information.
(e) Information provided to the automated central licensing
system and repository is subject to IC 4-1-11.
(f) This subsection does not limit or impair a person's right to:
(i) obtain information;
(ii) use information as evidence in a civil action or
proceeding; or
(iii) use information to initiate a civil action or proceeding;
if the information may be obtained from the director or the
director's designee under any law.
(g) The director may require a licensee required to submit
information to the automated central licensing system and
repository to pay a processing fee considered reasonable by
the director.
department in refusing to grant a license had these facts or
conditions been known to exist at the time the application for the
license was made.
(2) Except as provided in section 503.5 of this chapter, no
revocation or suspension of a license is lawful unless prior to
institution of proceedings by the department notice is given to the
licensee of the facts or conduct which warrant the intended action, and
the licensee is given an opportunity to show compliance with all lawful
requirements for retention of the license.
(3) If the department finds that probable cause for revocation of a
license exists and that enforcement of this article requires immediate
suspension of the license pending investigation, the department may,
after a hearing meeting with the licensee upon five (5) days written
notice to the licensee, enter an order suspending the license for not
more than thirty (30) days.
(4) Whenever the department revokes or suspends a license, the
department shall enter an order to that effect and forthwith notify the
licensee of the revocation or suspension. Within five (5) days after the
entry of the order the department shall deliver to the licensee a copy of
the order and the findings supporting the order.
(5) Any person holding a license to make consumer loans may
relinquish the license by notifying the department in writing of its
relinquishment, but this relinquishment shall not affect the person's
liability for acts previously committed.
(6) No revocation, suspension, or relinquishment of a license shall
impair or affect the obligation of any preexisting lawful contract
between the licensee and any debtor.
(7) The department may reinstate a license, terminate a suspension,
or grant a new license to a person whose license has been revoked or
suspended if no fact or condition then exists which clearly would have
justified the department in refusing to grant a license.
(8) If the director:
(a) has just cause to believe an emergency exists from which it is
necessary to protect the interests of the public; or
(b) determines that the license was obtained for the benefit of, or
on behalf of, a person who does not qualify for a license;
the director may proceed with the revocation of the license under
IC 4-21.5-3-6.
will enable the department to determine whether the licensee is
complying with the provisions of this article. The record keeping
system of a licensee shall be sufficient if the licensee makes the
required information reasonably available. The department shall
determine the sufficiency of the records and whether the licensee has
made the required information reasonably available. The department
shall be given free access to the records wherever located. The records
pertaining to any loan shall be retained for two (2) years after making
the final entry relating to the loan, but in the case of a revolving loan
account the two (2) years is measured from the date of each entry.
(2) Every licensee shall file with the department a composite report
as required by the department, but not more frequently than annually,
in the form prescribed by the department relating to all consumer loans
made by the licensee. The department shall consult with comparable
officials in other states for the purpose of making the kinds of
information required in the reports uniform among the states.
Information contained in the reports shall be confidential and may be
published only in composite form. The department may impose a fee
of five dollars ($5) in an amount fixed by the department under
IC 28-11-3-5 for each day that a licensee fails to file the report
required by this subsection.
(3) Every licensee shall file notification with the department if the
licensee:
(a) has a change in name, address, or principals;
(b) opens a new branch, closes an existing branch, or relocates an
existing branch;
(c) files for bankruptcy or reorganization; or
(d) is subject to revocation or suspension proceedings by a state
or governmental authority with regard to the licensee's activities;
not later than thirty (30) days after the date of the event described in
this subsection.
(4) Every licensee shall file notification with the department if a key
officer or director of the licensee:
(a) is under indictment for a felony indictment related to the
licensee's activities; involving fraud, deceit, or
misrepresentation under the laws of Indiana or any other
jurisdiction; or
(b) has been convicted of or pleaded guilty or nolo contendere
to a felony related to the licensee's activities; involving fraud,
deceit, or misrepresentation under the laws of Indiana or any
other jurisdiction;
not later than thirty (30) days after the date of the event described in
this subsection.
to the debtor within sixty (60) days after the date the insurance debt is
terminated, due to prepayment in full or otherwise, the creditor shall
pay to the debtor for each day after the sixty (60) day period has
expired an amount equal to the daily interest at the contracted annual
percentage rate on the amount of the credit insurance premium refund
required by subsection (1) due at the time of prepayment or
termination. The director may impose an additional civil penalty of
not greater than one thousand dollars ($1,000) per occurrence if a
creditor engages in a pattern or practice of failing to comply with
the subsection.
article and in order to determine whether the provisions of this article
are being complied with by persons engaging in acts subject to this
article, the department may examine the books and records of persons
and may make investigations of persons as may be necessary to
determine compliance. Records subject to examination under this
section include the following:
(a) Training, operating, and policy manuals.
(b) Minutes of:
(i) management meetings; and
(ii) other meetings.
(c) Other records that the department determines are
necessary to perform its investigation or examination.
The department may also administer oaths or affirmations, subpoena
witnesses, compel their attendance, adduce evidence, and require the
production of any matter which is relevant to the investigation. The
department shall determine the sufficiency of the records maintained
and whether the person has made the required information reasonably
available. The records pertaining to any transaction subject to this
article shall be retained for two (2) years after making the final entry
relating to the consumer credit transaction, but in the case of a
revolving loan account or revolving charge account, the two (2) years
is measured from the date of each entry.
(2) If the department:
(a) investigates; or
(b) examines the books and records of;
a person that is subject to IC 24-4.5-6-201, IC 24-4.5-6-202, and
IC 24-4.5-6-203, the person shall pay all reasonably incurred costs of
the investigation or examination in accordance with the fee schedule
adopted by the department under IC 28-11-3-5. However, the person is
liable for the costs of an investigation or examination under this
subsection only to the extent that the costs exceed the amount of the
filing fees paid most recently under IC 24-4.5-6-203. Any costs
required to be paid under this subsection shall be paid not later
than sixty (60) days after the person receives a notice from the
department of the costs being assessed. The department may
impose a fee, in an amount fixed by the department under
IC 28-11-3-5, for each day that the assessed costs are not paid,
beginning on the first day after the sixty (60) day period described
in this subsection.
(3) The department shall be given free access to the records
wherever located. If the person's records are located outside Indiana,
the records shall be made available to the department at a convenient
location within Indiana, or the person shall pay the reasonable and
necessary expenses for the department or its representative to examine
them where they are maintained. The department may designate
comparable officials of the state in which the records are located to
inspect them on behalf of the department.
(4) Upon failure without lawful excuse to obey a subpoena or to
give testimony and upon reasonable notice to all persons affected
thereby, the department may apply to (any civil) court for an order
compelling compliance.
(5) The department shall not make public the name or identity of a
person whose acts or conduct the department investigates pursuant to
this section or the facts disclosed in the investigation, but this
subsection does not apply to disclosures in actions or enforcement
proceedings pursuant to this article.
year after the due date of the last scheduled payment of the agreement
pursuant to which the charge was made. If the creditor establishes by
a preponderance of evidence that a violation is unintentional or the
result of a bona fide error, no liability to pay a penalty shall be imposed
under this subsection.
(2) The department may bring a civil action against a creditor or a
person acting in his behalf to recover a civil penalty for willfully
violating this article, and if the court finds that the defendant has
engaged in a course of repeated and willful violations of this article, it
may assess a civil penalty of no more than five thousand dollars
($5,000). No civil penalty pursuant to this subsection may be imposed
for violations of this article occurring more than two (2) years before
the action is brought or for making unconscionable agreements or
engaging in a course of fraudulent or unconscionable conduct.
(3) If the department determines, after notice and opportunity
for hearing, that a person has violated this article, the department
may, in addition to or instead of all other remedies available under
this section, impose upon the person a civil penalty not greater
than ten thousand dollars ($10,000) per violation.
section, IC 24-4.5-6-202, and IC 24-4.5-6-203.
(3) This section, IC 24-4.5-6-202, and IC 24-4.5-6-203 apply to a
seller whose credit sales are made using credit cards that:
(a) are issued by a lender;
(b) are in the name of the seller; and
(c) can be used by the buyer or lessee only for purchases or leases
at locations of the named seller.
IC 24-4.5-3-503(6)(a) through IC 24-4.5-3-503(4)(c)
IC 24-4.5-3-503(6)(c) from fees paid under this section.
(5) A person that is required to file notification under
IC 24-4.5-6-202 shall pay a fee at the same rate as prescribed and fixed
by the department under subsection (1) on the original unpaid balances
of all closed end credit obligations originating from the person's place
of business during the calendar year time preceding the notification as
specified under subsection (1), unless the fees for the obligations have
been paid by another person.
and not more than five hundred fifty dollars ($500); ($550); 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
(ii) exercises the authorization to debit the borrower's account.
(2) The amount of five hundred fifty dollars ($550) in subsection
(1)(a) is subject to change under the provisions on adjustment of
dollar amounts (IC 24-4.5-1-106). However, notwithstanding
IC 24-4.5-1-106(1), the Reference Base Index to be used under this
subsection is the Index for October 2006.
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.
(2) A lender may:
(a) present a borrower's check for payment; or
(b) exercise a borrower's authorization to debit the
borrower's account;
not more than three (3) times.
over a period of not less than sixty (60) days.
(c) The lender may not assess any fee or charge on a borrower
for entering into an extended payment plan.
(d) An agreement for an extended payment plan must be in
writing and acknowledged by both the borrower and the
lender.
(e) A borrower may not enter into another small loan
transaction while engaged in an extended payment plan.
(5) An agreement for an extended payment plan under
subsection (3):
(a) shall be considered an extension of the outstanding small
loan; and
(b) may not be considered a new loan.
is paid in full, a subsequent loan is not a renewal.
information required under subsection (4). If the department
determines that one (1) or more commercially reasonable methods of
verification are available, the department shall:
(a) provide reasonable notice to all lenders identifying the
commercially reasonable methods of verification that are
available; and
(b) require each lender to use, consistent with the policies of the
department, one (1) of the identified commercially reasonable
methods of verification as a means of complying with subsection
(4).
(6) If a borrower presents evidence to a lender that a loan has
been discharged in bankruptcy, the lender shall cause the record
of the borrower's loan to be updated in the database described in
subsection (4)(b) to reflect the bankruptcy discharge.
(7) A lender shall cause the record of a borrower's loan to be
updated in the database described in subsection (4)(b) to reflect:
(a) presentment of the borrower's check for payment; or
(b) exercise of the borrower's authorization to debit the
borrower's account.
If a check is returned or an authorization is dishonored because of
insufficient funds in the borrower's account, the lender shall
reenter the record of the loan in the database.
(8) A lender shall update information in a database described in
subsection (4)(b) to reflect partial payments made on an
outstanding loan, the record of which is maintained in the
database.
(9) If a lender ceases doing business in Indiana, the director may
require one (1) or more operators of databases described in
subsection (4)(b) to remove records of the lender's loans from the
operator's database.
(10) The director may impose a civil penalty not to exceed one
hundred dollars ($100) for each violation of:
(a) this section; or
(b) any rule or policy adopted by the director to implement
this section.
(6) (11) The excess amount of loan finance charge provided for in
agreements in violation of this section is an excess charge for purposes
of the provisions concerning effect of violations on rights of parties
(IC 24-4.5-5-202) and the provisions concerning civil actions by the
department (IC 24-4.5-6-113).
agreements involving:
(1) motor vehicles (as defined in IC 9-13-2-105(a)); or
(2) other titled property;
are prohibited under this article.
full.
(e) The amount that may be assessed under subsection (a)(2) is as
follows:
(1) One dollar ($1) Three dollars ($3) for any payment not
greater than nine dollars and fifty cents ($9.50). twenty dollars
($20).
(2) Two dollars ($2) for any payment greater than nine dollars and
fifty cents ($9.50) but not greater than nineteen dollars and fifty
cents ($19.50).
(3) Three (2) Five dollars ($3) ($5) for any payment greater than
nineteen dollars and fifty cents ($19.50). twenty dollars ($20).