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Citations Affected: IC 4-6; IC 6-1.1; IC 20-24; IC 20-30; IC 23-2; IC 24-4.5; IC 24-5; IC 24-9; IC 25-34.1; IC 34-30; noncode.

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Effective: Upon passage; July 1, 2008; January 1, 2009.

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Bardon, Murphy, Bardon, Pierce

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    January 16, 2008, read first time and referred to Committee on Financial Institutions.
    January 24, 2008, reported _ Do Pass.
    January 29, 2008, read second time, amended, ordered engrossed.

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disproportionately affected by mortgage foreclosures. Requires the securities commissioner and the director of the department of financial institutions to cooperate to determine the appropriate state agency or

department to regulate a person subject to regulation, licensure, or registration under both the loan broker statute and the UCCC. Repeals provisions that exclude mortgage transactions from the UCCC. Beginning with the school year that begins in 2010, requires school corporations and accredited nonpublic schools to include in their curricula for grades 9 through 12 instruction designed to: (1) increase students' awareness of consumer transactions, including mortgage transactions; and (2) foster personal financial responsibility. Provides that a school corporation or an accredited nonpublic school may provide the instruction by integrating it into its mathematics curriculum. Requires the department of education and the department of financial institutions to develop guidelines to assist teachers assigned to provide the instruction.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2007 Regular Session of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation.

SOURCE: IC 4-6-12-3.5; (08)HB1360.2.1. -->

    SECTION 1. IC 4-6-12-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3.5. (a) Not later than July 1, 2008, the unit shall establish a toll free telephone number to receive calls from persons having information about suspected fraudulent:
        (1) mortgage lending practices;
        (2) real estate appraisals; or
        (3) other practices;
involving residential real estate transactions.
    (b) The toll free telephone number required by this section shall be staffed by:
        (1) employees or investigators of the unit who have knowledge of the laws concerning:
            (A) mortgage lending practices;
            (B) real estate appraisals; or
            (C) other practices;
        involving residential real estate transactions;

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        (2) representatives of any of the entities described in section 4(a)(8) through 4(a)(10) of this chapter who have knowledge of the laws concerning:
            (A) mortgage lending practices;
            (B) real estate appraisals; or
            (C) other practices;
        involving residential real estate transactions; or
        (3) a combination of persons described in subdivisions (1) and (2).
The attorney general shall designate persons to staff the toll free telephone number as required by this subsection.
    (c) The persons designated by the attorney general under subsection (b) to staff the toll free telephone number required by this section shall ensure that any information received from callers to the telephone number is shared with any entity described in section 4 of this chapter that has jurisdiction over the matter reported. The unit shall establish uniform procedures for:
        (1) responding to calls received;
        (2) protecting:
            (A) the anonymity of callers who wish to report information anonymously; or
            (B) the identity of callers who request that their identity not be disclosed;
        (3) documenting and verifying information reported by callers; and
        (4) transmitting reported information to the appropriate entities described in section 4 of this chapter.
    (d) The unit shall publicize the availability of the toll free telephone number established under this section in a manner reasonably designed to reach members of the public.

SOURCE: IC 4-6-12-9; (08)HB1360.2.2. -->     SECTION 2. IC 4-6-12-9, AS AMENDED BY P.L.64-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. (a) The homeowner protection unit account within the general fund is established to support the operations of the unit. The account is administered by the attorney general.
    (b) The homeowner protection unit account consists of:
         (1) fees collected under IC 24-9-9; and
        (2) civil penalties collected under IC 24-5-0.5-4(l)(3).
    (c) The expenses of administering the homeowner protection unit account shall be paid from money in the account.
    (d) The treasurer of state shall invest the money in the homeowner protection unit 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 homeowner protection unit account at the end of a state fiscal year does not revert to the state general fund.

SOURCE: IC 6-1.1-5.5-3; (08)HB1360.2.3. -->     SECTION 3. IC 6-1.1-5.5-3, AS AMENDED BY P.L.219-2007, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 3. (a) For purposes of this section, "party" includes:
        (1) a seller of property that is exempt under the seller's ownership; or
        (2) a purchaser of property that is exempt under the purchaser's ownership;
from property taxes under IC 6-1.1-10.
    (b) Before Except as provided in section 3.5 of this chapter, in addition to filing a conveyance document with the county auditor under IC 6-1.1-5-4, all the parties to the conveyance must do the following:
        (1) Complete and sign a sales disclosure form as prescribed by the department of local government finance under section 5 of this chapter. All the parties may sign one (1) form, or if all the parties do not agree on the information to be included on the completed form, each party may sign and file a separate form.
        (2) Before filing a sales disclosure form with the county auditor, submit the sales disclosure form to the county assessor. The county assessor must review the accuracy and completeness of each sales disclosure form submitted immediately upon receipt of the form and, if the form is accurate and complete, stamp the form as eligible for filing with the county auditor and return the form to the appropriate party for filing with the county auditor. If multiple forms are filed in a short period, the county assessor shall process the forms as quickly as possible. For purposes of this subdivision, a sales disclosure form is considered to be accurate and complete if:
            (A) the county assessor does not have substantial evidence when the form is reviewed under this subdivision that information in the form is inaccurate; and
            (B) the form:
                (i) substantially conforms to the sales disclosure form prescribed by the department of local government finance under section 5 of this chapter; and
                (ii) is submitted to the county assessor in a format usable to the county assessor.
        (3) File the sales disclosure form with the county auditor.

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    (c) Except as provided in subsection (d), the auditor shall forward each sales disclosure form to the county assessor. The county assessor shall retain the forms for five (5) years. The county assessor shall forward the sales disclosure form data to the department of local government finance and the legislative services agency in an electronic format specified jointly by the department of local government finance and the legislative services agency. The county assessor shall forward a copy of the sales disclosure forms to the township assessors in the county. The forms may be used by the county assessing officials, the department of local government finance, and the legislative services agency for the purposes established in IC 6-1.1-4-13.6, sales ratio studies, equalization, adoption of rules under IC 6-1.1-31-3 and IC 6-1.1-31-6, and any other authorized purpose.
    (d) In a county containing a consolidated city, the auditor shall forward the sales disclosure form to the appropriate township assessor. The township assessor shall forward the sales disclosure form to the department of local government finance and the legislative services agency in an electronic format specified jointly by the department of local government finance and the legislative services agency. The forms may be used by the county assessing officials, the department of local government finance, and the legislative services agency for the purposes established in IC 6-1.1-4-13.6, sales ratio studies, equalization, adoption of rules under IC 6-1.1-31-3 and IC 6-1.1-31-6, and any other authorized purpose.
    (e) If a sales disclosure form includes the telephone number or Social Security number of a party, the telephone number or Social Security number is confidential.
    (f) County assessing officials and other local officials may not establish procedures or requirements concerning sales disclosure forms that substantially differ from the procedures and requirements of this chapter.

SOURCE: IC 6-1.1-5.5-3.5; (08)HB1360.2.4. -->     SECTION 4. IC 6-1.1-5.5-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 3.5. (a) This section applies to a conveyance that:
        (1) is a single family residential:
            (A) first lien purchase money mortgage transaction; or
            (B) refinancing transaction; and
        (2) is closed after December 31, 2009.
     (b) Not later than September 1, 2009, the department of local government finance shall establish and maintain an electronic system for the collection and storage of the sales disclosure form

data set forth in section 5(a) of this chapter with respect to a conveyance to which this section applies.
    (c) The system established by the department under this section must include a form that:
        (1) is uniformly accessible in an electronic format to the closing agent (as defined in IC 6-1.1-12-43(a)(2)) in the transaction; and
        (2) allows the closing agent to:
            (A) input the sales disclosure form data set forth in section 5(a) of this chapter with respect to the transaction; and
            (B) submit the form electronically to a data base maintained by the department of local government finance.
     (d) Subject to subsection (e), the department shall make the information stored in the data base described in subsection (c)(2)(B) accessible to:
        (1) county auditors;
        (2) county assessors;
        (3) township assessors;
        (4) the legislative services agency; and
        (5) the department;
for the purposes authorized by section 3(c) and 3(d) of this chapter.
    (e) If the sales disclosure form data submitted by a closing agent under subsection (c)(2)(B) includes the telephone number or the Social Security number of a party, the telephone number or the Social Security number is confidential.

SOURCE: IC 6-1.1-5.5-5; (08)HB1360.2.5. -->     SECTION 5. IC 6-1.1-5.5-5, AS AMENDED BY P.L.154-2006, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 5. (a) The department of local government finance shall prescribe a sales disclosure form for use under this chapter. The form prescribed by the department of local government finance must include at least the following information:
        (1) The key number of the parcel (as defined in IC 6-1.1-1-8.5).
        (2) Whether the entire parcel is being conveyed.
        (3) The address of the property.
        (4) The date of the execution of the form.
        (5) The date the property was transferred.
        (6) Whether the transfer includes an interest in land or improvements, or both.
        (7) Whether the transfer includes personal property.
        (8) An estimate of any personal property included in the transfer.
        (9) The name, address, and telephone number of:
            (A) each transferor and transferee; and

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            (B) the person that prepared the form.
        (10) The mailing address to which the property tax bills or other official correspondence should be sent.
        (11) The ownership interest transferred.
        (12) The classification of the property (as residential, commercial, industrial, agricultural, vacant land, or other).
        (13) The total price actually paid or required to be paid in exchange for the conveyance, whether in terms of money, property, a service, an agreement, or other consideration, but excluding tax payments and payments for legal and other services that are incidental to the conveyance.
        (14) The terms of seller provided financing, such as interest rate, points, type of loan, amount of loan, and amortization period, and whether the borrower is personally liable for repayment of the loan.
        (15) Any family or business relationship existing between the transferor and the transferee.
        (16) Other information as required by the department of local government finance to carry out this chapter.
If a form under this section includes the telephone number or the Social Security number of a party, the telephone number or the Social Security number is confidential.
    (b) The instructions for completing the form described in subsection (a) must include the information described in IC 6-1.1-12-43(c)(1). IC 6-1.1-12-43(b)(1).

SOURCE: IC 6-1.1-5.5-6; (08)HB1360.2.6. -->     SECTION 6. IC 6-1.1-5.5-6, AS AMENDED BY P.L.154-2006, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. (a) Subject to subsection (c), the county auditor may not refuse to accept a conveyance document if: solely because:
        (1) the sales disclosure form signed by all the parties and attested as required under section 9 of this chapter is not included with the document; or
        (2) the sales disclosure form does not contain the information described in section 5(a) of this chapter; or
        (3) in the case of a conveyance to which section 3.5 of this chapter applies:
            (A) the closing agent fails to submit an electronic form in accordance with section 3.5(c)(2)(B) of this chapter; or
            (B) the electronic form submitted by the closing agent under section 3.5(c)(2)(B) of this chapter is incomplete or determined by any official or agency described in section

3.5(d) of this chapter to be inaccurate.
    (b) Subject to subsection (c), the county recorder shall not may not refuse to record a conveyance document without evidence that the parties have filed a completed sales disclosure form with the county auditor. solely on the basis of any of the reasons set forth in subsection (a).
     (c) Notwithstanding subsections (a) and (b), if any of the circumstances described in subsection (a)(1) through (a)(3) apply:
        (1) a party to the conveyance who is required to file a sales disclosure form under section 3 of this chapter:
            (A) is not relieved of the party's duty to file or correct the sales disclosure form required by this chapter; and
            (B) is subject to the penalties set forth in section 12of this chapter; and
        (2) a closing agent who is required to submit an electronic sales disclosure form under section 3.5(c)(2)(B) of the chapter:
            (A) is not relieved of the closing agent's duty to submit or correct the electronic sales disclosure form required by section 3.5(c)(2)(B) this chapter; and
            (B) is subject to the penalties set forth in section 12(f) of this chapter.

SOURCE: IC 6-1.1-5.5-9; (08)HB1360.2.7. -->     SECTION 7. IC 6-1.1-5.5-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. (a) Except as provided in subsection (b), a person who signs a sales disclosure form shall attest in writing and under penalties of perjury that to the best of the person's knowledge and belief the information contained in the sales disclosure form is true and correct.
     (b) An electronic sales disclosure form that is submitted in accordance with section 3.5(c)(2)(B) of this chapter is subject to any verification requirements that the department may prescribe by rule adopted under IC 4-22-2.

SOURCE: IC 6-1.1-5.5-12; (08)HB1360.2.8. -->     SECTION 8. IC 6-1.1-5.5-12 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 12. (a) Except as provided in subsection (f), a party to a conveyance who:
        (1) is required to file a sales disclosure form under this chapter; and
        (2) fails to file a sales disclosure form at the time and in the manner required by this chapter;
is subject to a penalty in the amount determined under subsection (b).
    (b) The amount of the penalty under subsection (a) is the greater of:
        (1) one hundred dollars ($100); or
        (2) twenty-five thousandths percent (0.025%) of the sale price of

the real property transferred under the conveyance document.
    (c) Except as provided in subsection (f), the township assessor in a county containing a consolidated city, or the county assessor in any other county, shall:
        (1) determine the penalty imposed under this section;
        (2) assess the penalty to the party to a conveyance; and
        (3) notify the party to the conveyance that the penalty is payable not later than thirty (30) days after notice of the assessment.
    (d) Except as provided in subsection (f), the county auditor shall:
        (1) collect the penalty imposed under this section;
        (2) deposit penalty collections as required under section 4 of this chapter; and
        (3) notify the county prosecuting attorney of delinquent payments.
    (e) Except as provided in subsection (f), the county prosecuting attorney shall initiate an action to recover a delinquent penalty under this section. In a successful action against a person for a delinquent penalty, the court shall award the county prosecuting attorney reasonable attorney's fees.
     (f) A closing agent who:
         (1) is required to submit an electronic sales disclosure form under section 3.5(c)(2)(B) of this chapter; and
        (2) fails to submit the electronic sales disclosure form at the time and in the manner prescribed by the department of local government finance;
is subject to the penalty set forth in IC 6-1.1-12-43(h).

SOURCE: IC 6-1.1-12-2; (08)HB1360.2.9. -->     SECTION 9. IC 6-1.1-12-2, AS AMENDED BY P.L.183-2007, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2. (a) Except as provided in section 17.8 of this chapter and subject to subsection (d), a person who desires to claim the deduction provided by section 1 of this chapter must file a statement in duplicate, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home not assessed as real property, or manufactured home not assessed as real property is located. With respect to real property, the statement must be filed during the twelve (12) months before June 11 of each year for which the person wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 31 of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. In

addition to the statement required by this subsection, a contract buyer who desires to claim the deduction must submit a copy of the recorded contract or recorded memorandum of the contract, which must contain a legal description sufficient to meet the requirements of IC 6-1.1-5, with the first statement that the buyer files under this section with respect to a particular parcel of real property. Upon receipt of the statement and the recorded contract or recorded memorandum of the contract, the county auditor shall assign a separate description and identification number to the parcel of real property being sold under the contract.
    (b) The statement referred to in subsection (a) must be verified under penalties for perjury, and the statement must contain the following information:
        (1) The balance of the person's mortgage or contract indebtedness on the assessment date of the year for which the deduction is claimed.
        (2) The assessed value of the real property, mobile home, or manufactured home.
        (3) The full name and complete residence address of the person and of the mortgagee or contract seller.
        (4) The name and residence of any assignee or bona fide owner or holder of the mortgage or contract, if known, and if not known, the person shall state that fact.
        (5) The record number and page where the mortgage, contract, or memorandum of the contract is recorded.
        (6) A brief description of the real property, mobile home, or manufactured home which is encumbered by the mortgage or sold under the contract.
        (7) If the person is not the sole legal or equitable owner of the real property, mobile home, or manufactured home, the exact share of the person's interest in it.
        (8) The name of any other county in which the person has applied for a deduction under this section and the amount of deduction claimed in that application.
    (c) Except as provided in subsection (d), the authority for signing a deduction application filed under this section may not be delegated by the real property, mobile home, or manufactured home owner or contract buyer to any person except upon an executed power of attorney. The power of attorney may be contained in the recorded mortgage, contract, or memorandum of the contract, or in a separate instrument.
     (d) As used in this subsection, "transaction" has the meaning set

forth in section 43(a)(4) of this chapter. Not later than September 1, 2009, the department of local government finance shall establish and maintain an electronic system that automatically applies the deduction provided by section 1 of this chapter to a person entitled to the deduction provided by section 1 of this chapter. The system established by the department under this subsection must include a form that, with respect to a transaction that is closed after December 31, 2009:
        (1) is uniformly accessible in an electronic format to the closing agent (as defined in section 43(a)(2) of this chapter) in the transaction that is the basis for the person's eligibility for the deduction provided by section 1 of this chapter; and
        (2) allows the closing agent to:
            (A) input the information concerning the transaction that is the basis for the person's eligibility for the deduction provided by section 1 of this chapter; and
            (B) submit the form electronically to a data base maintained by the department of local government finance.
The department shall make the data base described in subdivision (2)(B) accessible to the county auditor in each county in Indiana. If the form submitted by a closing agent under subdivision (2)(B) is complete, the county auditor in the county in which the real property is located must accept the form and apply the deduction in accordance with section 17.8(c) of this chapter. The county auditor may not require the closing agent, the person entitled to the deduction, or any other person to provide any other information or form of identification for the person entitled to the deduction under section 1 of chapter to receive the deduction. If the form submitted by a closing agent under subdivision (2)(B) includes the telephone number or Social Security number of any individual, the telephone number or Social Security number is confidential.

SOURCE: IC 6-1.1-12-42.5; (08)HB1360.2.10. -->     SECTION 10. IC 6-1.1-12-42.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 42.5. (a) This section applies to a transaction that:
        (1) is a single family residential:
            (A) first lien purchase money mortgage transaction; or
            (B) refinancing transaction; and
        (2) is closed after December 31, 2009.
    (b) Not later than September 1, 2009, the department of local government finance shall establish and maintain an electronic

system for the collection and storage of the following information concerning any of the following persons that have participated in or assisted with a transaction to which this section applies, or that will participate in or assist with a transaction to which this section applies:
        (1) The name and license number (under IC 23-2-5) of each loan brokerage business involved in the transaction.
        (2) The name and registration number (under IC 23-2-5) of each originator involved in the transaction.
        (3) The name and license number (under IC 25-34.1) of each:
            (A) principal broker; and
            (B) salesperson or broker-salesperson, if any;
        involved in the transaction.
        (4) The name and certificate number (under IC 27-7-3) of each title insurance company involved in the transaction.
        (5) The name and license number (under IC 27-1-15.6) of each title insurance agent involved in the transaction.
        (6) The name and:
            (A) license or certificate number (under IC 25-34.1-3-8) of each licensed or certified real estate appraiser; or
            (B) license number (under IC 25-34.1) of each broker;
        who appraises the property that is the subject of the transaction.
        (7) The name of the mortgagee and, if the mortgagee is required to be licensed under IC 24-4.5-3-502, the license number of the mortgagee.
    (c)The system established by the department under this section must include a form that:
        (1) is uniformly accessible in an electronic format to the closing agent (as defined in section 43(a)(2) of this chapter) in the transaction; and
        (2) allows the closing agent to:
            (A) input the information described in subsection (b) with respect to each person described in subsection (b) that participates in or assists with the transaction, to the extent determinable; and
            (B) submit the form electronically to a data base maintained by the department of local government finance.
     (d) Subject to subsection (e), the department shall make the information stored in the data base described in subsection (c)(2)(B) accessible to:
        (1) each entity described in IC 4-6-12-4; and

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        (2) the homeowner protection unit established under IC 4-6-12-2.
    (e) The department, a closing agent who submits under subsection (c), each entity described in IC 4-6-12-4, and the homeowner protection unit established under IC 4-6-12-2 shall exercise all necessary caution to avoid disclosure of any information:
        (1) concerning a person described in subsection (b), including the person's license, registration, or certificate number; and
        (2) contained in the data base described in subsection (c)(2)(B);
except to the extent required or authorized by state or federal law.

SOURCE: IC 6-1.1-12-43; (08)HB1360.2.11. -->     SECTION 11. IC 6-1.1-12-43 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 43. (a) For purposes of this section:
        (1) "benefit" refers to:
            (A) a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26, 29, 31, 33, or 34 of this chapter; or
            (B) the homestead credit under IC 6-1.1-20.9-2.
        (2) "closing agent" means a person that closes a transaction;
        (3) "customer" means an individual who obtains a loan in a transaction; and
        (4) "transaction" means a single family residential:
            (A) first lien purchase money mortgage transaction; or
            (B) refinancing transaction.
    (b) Before closing a transaction after December 31, 2004, a closing agent must provide to the customer the form referred to in subsection (c).
    (c) Before June 1, 2004, (b) The department of local government finance shall prescribe the a form to be provided by closing agents to customers under subsection (b). (d)(1). The department shall make the form available to closing agents, county assessors, county auditors, and county treasurers in hard copy and electronic form. County assessors, county auditors, and county treasurers shall make the form available to the general public. The form must:
        (1) on one (1) side:
            (A) list each benefit;
            (B) list the eligibility criteria for each benefit; and
            (C) indicate that a new application for a deduction under section 1 of this chapter is required when residential real property is refinanced;
        (2) on the other side indicate:

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            (A) each action by; and
            (B) each type of documentation from;
        the customer required to file for each benefit; and
        (3) be printed in one (1) of two (2) or more colors prescribed by the department of local government finance that distinguish the form from other documents typically used in a closing. referred to in subsection (b).
    (d) (c) A closing agent:
        (1) may reproduce the form referred to in subsection (c); (b);
        (2) in reproducing the form, must use a print color prescribed by the department of local government finance; and
        (3) is not responsible for the content of the form referred to in subsection (c) (b) and shall be held harmless by the department of local government finance from any liability for the content of the form.
    (d) A closing agent must do the following with respect to a transaction that is closed after June 30, 2008, and before January 1, 2010:
        (1) At the time of closing:
            (A) provide the customer with:
                (i) if the transaction is a first lien purchase money mortgage transaction, the sales disclosure form prescribed by the department under IC 6-1.1-5.5-5, the form prescribed by the department under IC 6-1.1-20.9-3 to allow a person to claim the credit provided by IC 6-1.1-20.9-2, and the form prescribed by the department under section 2(a) of this chapter to allow a person to claim the deduction provided by section 1 of this chapter; or
                (ii) if the transaction is a refinancing transaction, the form prescribed by the department under section 2(a) of this chapter to allow a person to claim the deduction provided by section 1 of this chapter.
            (B) require the customer to complete and sign the forms provided under clause (A); and
            (C) collect the forms signed and completed under clause (B) for filing under subsection (e).
        (2) At the time of the closing, inform the customer of the deductions available under sections 9, 11, 13, 14, 16, 17.4, 26, 29, 31, 33, and 34 of this chapter by providing the customer with the form prescribed by the department under subsection (b).

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    (e) This subsection applies to a transaction that is closed after June 30, 2008, and before January 1, 2010. The closing agent shall file the forms completed and signed by the customer under subsection (d)(1)(B) as follows:
        (1) In the case of a first lien purchase money mortgage transaction, the closing agent shall file:
            (A) the signed sales disclosure form with the appropriate county assessor and county auditor in accordance with IC 6-1.1-5-3;
            (B) the signed mortgage deduction form in accordance with section 2(a) of the chapter; and
            (C) the signed homestead credit form in accordance with IC 6-1.1-20.9-3.
        (2) In the case of a refinancing transaction, the closing agent shall file the signed mortgage deduction form in accordance with section 2(a) of this chapter.
     (f) This subsection applies to a transaction that is closed after December 31, 2009. The closing agent shall do the following:
        (1) At the time of the closing, inform the customer of the deductions available under sections 9, 11, 13, 14, 16, 17.4, 26, 29, 31, 33, and 34 of this chapter by providing the customer with the form prescribed by the department under subsection (b).
        (2) As soon as possible after the closing, and within the time prescribed by the department of local government finance:
            (A) for a transaction that is a first lien purchase money mortgage transaction:
                (i) input the electronic sales disclosure form data and submit the electronic sales disclosure form in accordance with IC 6-1.1-5.5-3.5(c)(2);
                (ii) input the information and submit the form described in IC 6-1.1-20.9-3(d)(2) to enable the customer to receive the credit provided by IC 6-1.1-20.9-2;
                (iii) input the information and submit the form described in section 2(d)(2) of this chapter to enable the customer to receive the deduction provided by section (1) of this chapter; and
                (iv) input the information and submit the form described in IC 6-1.1-12-42.5(c)(2); and
            (B) for a refinancing transaction:
                (i) input the information and submit the form described in section 2(d)(2) of this chapter to enable the customer

to receive the deduction provided by section (1) of this chapter; and
                (ii) input the information and submit the form described in IC 6-1.1-12-42.5(c)(2), to the extent applicable.
    (e) (g) A closing agent to which this section applies shall document its the closing agent's compliance with this section with respect to each transaction in the form of verification of compliance signed by the customer.
    (f) (h) A closing agent is subject to a civil penalty of twenty-five dollars ($25) for each instance in which the closing agent fails to comply with this section with respect to a customer. The penalty:
        (1) may be enforced by the state agency that has administrative jurisdiction over the closing agent in the same manner that the agency enforces the payment of fees or other penalties payable to the agency; and
        (2) shall be paid into the property tax replacement fund.
    (i) A closing agent is not liable for any other damages claimed by a customer because of:
         (1) the closing agent's mere failure to provide the an appropriate document to the customer under this section;
         (2) with respect to a transaction that is closed after June 30, 2008, and before January 1, 2010, the closing agent's failure to file a document under subsection (e);
        (3) with respect to a transaction that is closed after December 31, 2009, the closing agent's failure to input any information or submit any form described in subsection (f)(2); or
         (4) any determination made with respect to a customer's eligibility for a benefit.
    (g) (j) The state agency that has administrative jurisdiction over a closing agent shall:
        (1) examine the closing agent to determine compliance with this section; and
        (2) impose and collect penalties under subsection (f). (h).

SOURCE: IC 6-1.1-20.9-3; (08)HB1360.2.12. -->     SECTION 12. IC 6-1.1-20.9-3, AS AMENDED BY P.L.183-2007, SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 3. (a) Subject to subsection (e), an individual who desires to claim the credit provided by section 2 of this chapter must file a certified statement in duplicate, on forms prescribed by the department of local government finance, with the auditor of the county in which the homestead is located. The statement shall include the parcel number or key number of the real estate and the name of the city, town, or township in which the real estate is located. With respect

to real property, the statement must be filed during the twelve (12) months before June 11 of the year prior to the first year for which the person wishes to obtain the credit for the homestead. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed during the twelve (12) months before March 31 of the first year for which the individual wishes to obtain the credit. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. The statement applies for that first year and any succeeding year for which the credit is allowed.
    (b) The certified statement referred to in subsection (a) shall contain the name of any other county and township in which the individual owns or is buying real property.
    (c) If an individual who is receiving the credit provided by this chapter changes the use of the individual's real property, so that part or all of that real property no longer qualifies for the homestead credit provided by this chapter, the individual must file a certified statement with the auditor of the county, notifying the auditor of the change of use within sixty (60) days after the date of that change. An individual who changes the use of the individual's real property and fails to file the statement required by this subsection is liable for the amount of the credit the individual was allowed under this chapter for that real property.
    (d) An individual who receives the credit provided by section 2 of this chapter for property that is jointly held with another owner in a particular year and remains eligible for the credit in the following year is not required to file a statement to reapply for the credit following the removal of the joint owner if:
        (1) the individual is the sole owner of the property following the death of the individual's spouse;
        (2) the individual is the sole owner of the property following the death of a joint owner who was not the individual's spouse; or
        (3) the individual is awarded sole ownership of property in a divorce decree.
     (e) As used in this subsection, "transaction" has the meaning set forth in section 43(a)(4)(A) of this chapter. Not later than September 1, 2009, the department of local government finance shall establish and maintain an electronic system that automatically applies the credit provided by section 2 of this chapter to a person entitled to the credit provided by section 2 of this chapter. The system established by the department under this subsection must include a form that, with respect to a transaction

that is closed after December 31, 2009:
        (1) is uniformly accessible in an electronic format to the closing agent (as defined in section 43(a)(2) of this chapter) in the transaction that is the basis for the person's eligibility for the credit provided by section 2 of this chapter; and
        (2) allows the closing agent to:
            (A) input the information concerning the transaction that is the basis for the person's eligibility for the credit provided by section 2 of this chapter; and
            (B) submit the form electronically to a data base maintained by the department of local government finance.
The department shall make the data base described in subdivision (2)(B) accessible to the county auditor in each county in Indiana. If the form submitted by a closing agent under subdivision (2)(B) is complete, the county auditor in the county in which the real property is located must accept the form and apply the credit in accordance with section 2(f) of this chapter. The county auditor may not require the closing agent, the person entitled to the credit, or any other person to provide any other information or form of identification for the person entitled to the credit under section 2 of chapter to receive the credit. If the form submitted by a closing agent under subdivision (2)(B) includes the telephone number or Social Security number of any individual, the telephone number or Social Security number is confidential.

SOURCE: IC 20-24-8-5; (08)HB1360.2.13. -->     SECTION 13. IC 20-24-8-5, AS AMENDED BY P.L.2-2006, SECTION 111, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 5. The following statutes and rules and guidelines adopted under the following statutes apply to a charter school:
        (1) IC 5-11-1-9 (required audits by the state board of accounts).
        (2) IC 20-39-1-1 (unified accounting system).
        (3) IC 20-35 (special education).
        (4) IC 20-26-5-10 and IC 20-28-5-9 (criminal history).
        (5) IC 20-26-5-6 (subject to laws requiring regulation by state agencies).
        (6) IC 20-28-7-14 (void teacher contract when two (2) contracts are signed).
        (7) IC 20-28-10-12 (nondiscrimination for teacher marital status).
        (8) IC 20-28-10-14 (teacher freedom of association).
        (9) IC 20-28-10-17 (school counselor immunity).
        (10) For conversion charter schools only, IC 20-28-6, IC 20-28-7, IC 20-28-8, IC 20-28-9, and IC 20-28-10.

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        (11) IC 20-33-2 (compulsory school attendance).
        (12) IC 20-33-3 (limitations on employment of children).
        (13) IC 20-33-8-19, IC 20-33-8-21, and IC 20-33-8-22 (student due process and judicial review).
        (14) IC 20-33-8-16 (firearms and deadly weapons).
        (15) IC 20-34-3 (health and safety measures).
        (16) IC 20-33-9 (reporting of student violations of law).
        (17) IC 20-30-3-2 and IC 20-30-3-4 (patriotic commemorative observances).
        (18) IC 20-31-3, IC 20-32-4, IC 20-32-5, IC 20-32-6, IC 20-32-8, or any other statute, rule, or guideline related to standardized testing (assessment programs, including remediation under the assessment programs).
        (19) IC 20-33-7 (parental access to education records).
        (20) IC 20-31 (accountability for school performance and improvement).
         (21) Beginning with the school year that begins in the calendar year beginning January 1, 2010, IC 20-30-5-19 (instruction concerning consumer transactions and personal financial responsibility).

SOURCE: IC 20-30-5-19; (08)HB1360.2.14. -->     SECTION 14. IC 20-30-5-19 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 19. (a) Beginning with the school year that begins in the calendar year beginning January 1, 2010, each school corporation (including each charter school) and each nonpublic school that voluntarily has become accredited under IC 20-19-2-8 shall include in its curriculum for all students in grades 9 through 12 instruction designed to:
        (1) increase students' awareness of certain consumer transactions, including mortgage transactions; and
        (2) foster personal financial responsibility.
    (b) A school corporation (including a charter school) and a nonpublic school that voluntarily has become accredited under IC 20-19-2-8 may meet the requirements of subsection (a) by:
        (1) integrating the instruction described in subsection (a) in its required mathematics curriculum; or
        (2) conducting a separate class or seminar that includes the instruction described in subsection (a).
    (c) A person may not receive a high school diploma from a school subject to this section unless the person has received the instruction required by this section.
    (d) The department, in collaboration with the department of

financial institutions established by IC 28-11-1-1, shall develop guidelines and the state board shall adopt rules under IC 4-22-2 to assist teachers assigned to provide the instruction required by this section.

SOURCE: IC 23-2-5-3; (08)HB1360.2.15. -->     SECTION 15. IC 23-2-5-3, AS AMENDED BY P.L.230-2007, SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 3. (a) As used in this chapter, "certificate of registration" means a certificate issued by the commissioner authorizing an individual to:
         (1) engage in origination activities on behalf of a licensee; or
        (2) act as a principal manager 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, whether or not the person seeking the loan actually obtains the loan. "Loan broker" does not include:
        (1) any supervised financial organization (as defined in IC 24-4.5-1-301(20)), including a bank, savings bank, trust company, savings association, or credit union;
        (2) 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;
        (3) any insurance company; or
        (4) 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 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.
    (j) As used in this chapter, "registrant" means an individual who is registered:
        (1) to engage in origination activities under this chapter; or
        (2) as a principal manager.
    (k) As used in this chapter, "ultimate equitable owner" means a person who, directly or indirectly, owns or controls ten percent (10%) or more of the equity interest in a loan broker licensed or required to be licensed under this chapter, regardless of whether the person owns or controls the equity interest through one (1) or more other persons or one (1) or more proxies, powers of attorney, or variances.
    (l) As used in this chapter, "principal manager" means an individual who:
        (1) has at least three (3) years of experience:
            (A) as a loan broker; or
            (B) in financial services;
        that is acceptable to the commissioner; and
        (2) is principally responsible for the supervision and management of the employees and business affairs of a licensee.
     (m) As used in this chapter, "personal information" includes any of the following:
        (1) An individual's first and last names or first initial and last name.
        (2) Any of the following data elements:
            (A) A Social Security number.
            (B) A driver's license number.
            (C) A state identification card number.
            (D) A credit card number.
            (E) A financial account number or debit card number in combination with a security code, password, or access code that would permit access to the person's account.
        (3) With respect to an individual, any of the following:
            (A) Address.
            (B) Telephone number.

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            (C) Information concerning the individual's:
                (i) income or other compensation;
                (ii) credit history;
                (iii) credit score;
                (iv) assets;
                (v) liabilities; or
                (vi) employment history.
    (n) As used in this chapter, personal information is "encrypted" if the personal information:
        (1) has been transformed through the use of an algorithmic process into a form in which there is a low probability of assigning meaning without use of a confidential process or key; or
        (2) is secured by another method that renders the personal information unreadable or unusable.
    (o) As used in this chapter, personal information is "redacted" if the personal information has been altered or truncated so that not more than the last four (4) digits of:
        (1) a Social Security number;
        (2) a driver's license number;
        (3) a state identification number; or
        (4) an account number;
are accessible as part of the personal information.

SOURCE: IC 23-2-5-4; (08)HB1360.2.16. -->     SECTION 16. IC 23-2-5-4, AS AMENDED BY P.L.230-2007, SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 4. (a) A person may not engage in the loan brokerage business in Indiana unless the person first obtains a license from the commissioner. Any person desiring to engage or continue in the loan brokerage business shall apply to the commissioner for a license under this chapter.
    (b) An individual may not perform origination activities in Indiana on behalf of a person licensed or required to be licensed under this chapter unless the individual first obtains a certificate of registration from the commissioner. An individual desiring to be employed by a licensee to engage in origination activities on behalf of a person licensed or required to be licensed under this chapter shall apply to the commissioner for registration under this chapter.
    (c) An individual may not act as a principal manager on behalf of a person licensed or required to be licensed under this chapter unless the individual first obtains a certificate of registration from the commissioner. Any individual desiring to be employed by a licensee act as a principal manager on behalf of a person licensed or

required to be licensed under this chapter shall apply to the commissioner for registration under this chapter.
     (d) The commissioner may request evidence of compliance with this section at any of the following times:
        (1) The time of application for an initial:
            (A) license; or
            (B) certificate of registration.
        (2) The time of renewal of a license or certificate of registration.
        (3) Any other time considered necessary by the commissioner.
    (e) For purposes of subsection (d), evidence of compliance with this section shall include a criminal background check, including a national criminal history background check (as defined in IC 10-13-3-12) by the Federal Bureau of Investigation.

SOURCE: IC 23-2-5-5; (08)HB1360.2.17. -->     SECTION 17. IC 23-2-5-5, AS AMENDED BY P.L.230-2007, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 5. (a) An application for license or renewal of a license must contain:
        (1) consent to service of process under subsection (h);
        (2) evidence of the bond required in subsection (e);
        (3) an application fee of four hundred dollars ($400), plus two hundred dollars ($200) for each ultimate equitable owner;
        (4) an affidavit affirming that none of the applicant's ultimate equitable owners, directors, managers, or officers have been convicted, in any jurisdiction, of an offense involving fraud or deception that is punishable by at least one (1) year of imprisonment, unless waived by the commissioner under subsection (f); (i);
        (5) evidence that the applicant, if the applicant is an individual, has completed the education requirements under section 21 of this chapter;
        (6) the name and registration number for each originator to be employed by the licensee;
        (7) the name and registration number for each principal manager; and
        (8) for each ultimate equitable owner, the following information:
            (1) The name of the ultimate equitable owner.
            (2) The address of the ultimate equitable owner, including the home address of the ultimate equitable owner if the ultimate equitable owner is an individual.
            (3) The telephone number of the ultimate equitable owner, including the home telephone number if the ultimate equitable

owner is an individual.
            (4) The ultimate equitable owner's Social Security number and date of birth, if the ultimate equitable owner is an individual.
    (b) An application for registration as an originator shall be made on a registration form prescribed by the commissioner. The application must include the following information for the individual that seeks to be registered as an originator:
        (1) The name of the individual.
        (2) The home address of the individual.
        (3) The home telephone number of the individual.
        (4) The individual's Social Security number and date of birth.
        (5) The name of the:
            (A) licensee; or
            (B) applicant for licensure;
        for whom the individual seeks to be employed as an originator.
        (6) Consent to service of process under subsection (h).
        (7) Evidence that the individual has completed the education requirements described in section 21 of this chapter.
        (8) An application fee of one hundred dollars ($100).
        (9) All registration numbers previously issued to the individual under this chapter, if applicable.
    (c) An application for registration as a principal manager shall be made on a registration form prescribed by the commissioner. The application must include the following information for the individual who seeks to be registered as a principal manager:
        (1) The name of the individual.
        (2) The home address of the individual.
        (3) The home telephone number of the individual.
        (4) The individual's Social Security number and date of birth.
        (5) The name of the:
            (A) licensee; or
            (B) applicant for licensure;
        for whom the individual seeks to be employed as a principal manager.
        (6) Consent to service of process under subsection (h).
        (7) Evidence that the individual has completed the education requirements described in section 21 of this chapter.
        (8) Evidence that the individual has at least three (3) years of experience in the:
            (A) loan brokerage; or
            (B) financial services;
        business.

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        (9) An application fee of two hundred dollars ($200).
        (10) All registration numbers previously issued to the individual, if applicable.
    (d) The commissioner shall require an applicant for registration as:
        (1) an originator under subsection (b); or
        (2) a principal manager under subsection (c);
to pass a written examination prepared and administered by the commissioner or an agent appointed by the commissioner.
    (e) A licensee must maintain a bond satisfactory to the commissioner in the amount of fifty one hundred thousand dollars ($50,000), ($100,000), which shall be in favor of the state and shall secure payment of damages to any person aggrieved by any violation of this chapter by the licensee.
    (f) The commissioner shall issue a license and license number to an applicant that meets the licensure requirements of this chapter. Whenever the registration provisions of this chapter have been complied with, the commissioner shall issue a certificate of registration and registration number authorizing the registrant to:
        (1) engage in origination activities; or
        (2) act as a principal manager;
whichever applies.
    (g) Licenses and initial certificates of registration issued by the commissioner are valid until January 1 of the second year after issuance.
    (h) Every applicant for licensure or registration or for renewal of a license or a registration shall file with the commissioner, in such form as the commissioner by rule or order prescribes, an irrevocable consent appointing the secretary of state to be the applicant's agent to receive service of any lawful process in any noncriminal suit, action, or proceeding against the applicant arising from the violation of any provision of this chapter. Service shall be made in accordance with the Indiana Rules of Trial Procedure.
    (i) Upon good cause shown, the commissioner may waive the requirements of subsection (a)(4) for one (1) or more of an applicant's ultimate equitable owners, directors, managers, or officers.
    (j) Whenever an initial or a renewal application for a license or registration is denied or withdrawn, the commissioner shall retain the initial or renewal application fee paid.
    (k) The commissioner shall require each:
        (1) equitable owner; and
         (2) individual described in subsection (a)(4); and
        (2) (3) applicant for registration as:

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            (A) an originator; or
            (B) a principal manager;
to undergo submit fingerprints for a national criminal history background check at the expense of the (as defined in IC 10-13-3-12) by the Federal Bureau of Investigation, for use by the commissioner in determining whether the equitable owner, the individual described in subsection (a)(4), or the applicant should be denied licensure or registration under this chapter for any reason set forth in section 10(c) of this chapter. The equitable owner, individual described in subsection (a)(4), or applicant shall pay any fees or costs associated with the fingerprints and background check required under this subsection. The commissioner may not release the results of a background check described in this subsection to any private entity.
    (l) The commissioner may check the qualifications, background, licensing status, and service history of each:
        (1) equitable owner; and
         (2) individual described in subsection (a)(4); and
        (2) (3) applicant for registration as:
            (A) an originator; or
            (B) a principal manager;
by accessing, upon availability, a multistate automated licensing system for mortgage brokers and originators, including the National Mortgage Licensing Database proposed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. and repository described in section 11(a)(16) of this chapter. The equitable owner, the individual described in subsection (a)(4), or the applicant shall pay any fees or costs associated with a check conducted under this subsection.

SOURCE: IC 23-2-5-6; (08)HB1360.2.18. -->     SECTION 18. IC 23-2-5-6 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. A licensee may not continue engaging in the loan brokerage business unless the licensee's license is renewed biennially. A registrant may not continue:
         (1) engaging in origination activities; or
        (2) acting as a principal manager;
unless the registrant's certificate of registration is renewed biennially. A licensee shall renew its license and the certificates of registration of its registrant employees by filing with the commissioner, at least thirty (30) days before the expiration of the registration, license, an application containing any information the commissioner may require to indicate any material change from the information contained in the applicant's original application or any previous application. A

registrant may renew the registrant's certificate of registration by filing with the commissioner, at least thirty (30) days before the expiration of the registration, an application containing any information the commissioner may require to indicate any material change from the information contained in the applicant's original application or any previous application.

SOURCE: IC 23-2-5-10; (08)HB1360.2.19. -->     SECTION 19. IC 23-2-5-10, AS AMENDED BY P.L.230-2007, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 10. (a) Whenever it appears to the commissioner that a person has engaged in or is about to engage in an act or a practice constituting a violation of this chapter or a rule or an order under this chapter, the commissioner may investigate and may issue, with a prior hearing if there exists no substantial threat of immediate irreparable harm or without a prior hearing, if there exists a substantial threat of immediate irreparable harm, orders and notices as the commissioner determines to be in the public interest, including cease and desist orders, orders to show cause, and notices. After notice and hearing, the commissioner may enter an order of rescission, restitution, or disgorgement, including interest at the rate of eight percent (8%) per year, directed to a person who has violated this chapter or a rule or order under this chapter.
    (b) Upon the issuance of an order or notice without a prior hearing by the commissioner under subsection (a), the commissioner shall promptly notify the respondent and, if the subject of the order or notice is a registrant, the licensee for whom the registrant is employed:
        (1) that the order or notice has been issued;
        (2) of the reasons the order or notice has been issued; and
        (3) that upon the receipt of a written request the matter will be set down for a hearing to commence within fifteen (15) business days after receipt of the request unless the respondent consents to a later date.
If a hearing is not requested and not ordered by the commissioner, an order remains in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice of an opportunity for hearing, may modify or vacate the order or extend it until final determination.
    (c) The commissioner may deny an application for an initial or a renewal license or registration, and may suspend or revoke the license of a licensee or the registration of a registrant if the applicant, the licensee, the registrant, or an ultimate equitable owner of an applicant or of a licensee:
        (1) fails to maintain the bond required under section 5 of this

chapter;
        (2) has, within the most recent ten (10) years:
            (A) been the subject of an adjudication or a determination by:
                (i) a court with jurisdiction; or
                (ii) an agency or administrator that regulates securities, commodities, banking, financial services, insurance, real estate, or the real estate appraisal industry;
            in Indiana or in any other jurisdiction; and
            (B) been found, after notice and opportunity for hearing, to have violated the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal laws of Indiana or any other jurisdiction;
        (3) has:
            (A) been denied the right to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry; or
            (B) had the person's authority to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry revoked or suspended;
        by Indiana or by any other state, federal, or foreign governmental agency or self regulatory organization;
        (4) is insolvent;
        (5) has violated any provision of this chapter;
        (6) has knowingly filed with the commissioner any document or statement that:
            (A) contains a false representation of a material fact;
            (B) fails to state a material fact; or
            (C) contains a representation that becomes false after the filing but during the term of a license or certificate of registration as provided in subsection (i);
        (7) has:
            (A) been convicted, within ten (10) years before the date of the application, renewal, or review, of any crime involving fraud or deceit; or
            (B) had a felony conviction (as defined in IC 35-50-2-1(b)) within five (5) years before the date of the application, renewal, or review;
        (8) if the person is a licensee or principal manager, has failed to reasonably supervise the person's originators or employees to ensure their compliance with this chapter;
        (9) is on the most recent tax warrant list supplied to the commissioner by the department of state revenue; or

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        (10) has engaged in dishonest or unethical practices in the loan broker business, as determined by the commissioner.
    (d) The commissioner may do either of the following:
        (1) Censure:
            (A) a licensee;
            (B) an officer, a director, or an ultimate equitable owner of a licensee;
            (C) a registrant; or
            (D) any other person;
        who violates or causes a violation of this chapter.
        (2) Permanently bar any person described in subdivision (1) from being:
            (A) licensed or registered under this chapter; or
            (B) employed by or affiliated with a person licensed or registered under this chapter;
        if the person violates or causes a violation of this chapter.
    (e) The commissioner may not enter a final order:
        (1) denying, suspending, or revoking the license of a licensee or the registration of a registrant; or
        (2) imposing other sanctions;
without prior notice to all interested parties, opportunity for a hearing, and written findings of fact and conclusions of law. However, the commissioner may by summary order deny, suspend, or revoke a license or certificate of registration pending final determination of any proceeding under this section or before any proceeding is initiated under this section. Upon the entry of a summary order, the commissioner shall promptly notify all interested parties that the summary order has been entered, of the reasons for the summary order, and that upon receipt by the commissioner of a written request from a party, the matter will be set for hearing to commence within fifteen (15) business days after receipt of the request. If no hearing is requested and none is ordered by the commissioner, the order remains in effect until it is modified or vacated by the commissioner. If a hearing is requested or ordered, the commissioner, after notice of the hearing has been given to all interested persons and the hearing has been held, may modify or vacate the order or extend it until final determination.
    (f) IC 4-21.5 does not apply to a proceeding under this section.
    (g) If a registrant seeks to transfer the registrant's registration to another licensee who desires to have the registrant engage in origination activities or serve as a principal manager, whichever applies, the registrant shall, before the registrant conducts origination

activities or serves as a principal manager for the new employer, submit to the commissioner, on a form prescribed by the commissioner, a registration application, as required by section 5 of this chapter.
    (h) If the employment of a registrant is terminated, whether:
        (1) voluntarily by the registrant; or
        (2) by the licensee employing the registrant;
the licensee that employed the registrant shall, not later than five (5) days after the termination, notify the commissioner of the termination and the reasons for the termination.
    (i) If a material fact or statement included in an application under this chapter changes after the application has been submitted, the applicant shall provide written notice to the commissioner of the change. The commissioner may revoke or refuse to renew the license or registration of any person who:
        (1) is required to submit a written notice under this subsection and fails to provide the required notice within two (2) business days after the person discovers or should have discovered the change; or
        (2) would not qualify for licensure or registration under this chapter as a result of the change in a material fact or statement.

SOURCE: IC 23-2-5-11; (08)HB1360.2.20. -->     SECTION 20. IC 23-2-5-11, AS AMENDED BY P.L.48-2006, SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 11. (a) The commissioner may do the following:
        (1) Adopt rules under IC 4-22-2 to implement this chapter.
        (2) Make investigations and examinations:
            (A) in connection with any application for licensure or for registration of a licensee or registrant or with any license or certificate of registration already granted; or
            (B) whenever it appears to the commissioner, upon the basis of a complaint or information, that reasonable grounds exist for the belief that an investigation or examination is necessary or advisable for the more complete protection of the interests of the public.
        (3) Charge as costs of investigation or examination all reasonable expenses, including a per diem prorated upon the salary of the commissioner or employee and actual traveling and hotel expenses. All reasonable expenses are to be paid by the party or parties under investigation or examination if the party has violated this chapter.
        (4) Issue notices and orders, including cease and desist notices and orders, after making an investigation or examination under subdivision (2). The commissioner may also bring an action on

behalf of the state to enjoin a person from violating this chapter. The commissioner shall notify the person that an order or notice has been issued, the reasons for it, and that a hearing will be set within fifteen (15) days after the commissioner receives a written request from the person requesting a hearing.
        (5) Sign all orders, official certifications, documents, or papers issued under this chapter or delegate the authority to sign any of those items to a deputy.
        (6) Hold and conduct hearings.
        (7) Hear evidence.
        (8) Conduct inquiries with or without hearings.
        (9) Receive reports of investigators or other officers or employees of the state of Indiana or of any municipal corporation or governmental subdivision within the state.
        (10) Administer oaths, or cause them to be administered.
        (11) Subpoena witnesses, and compel them to attend and testify.
        (12) Compel the production of books, records, and other documents.
        (13) Order depositions to be taken of any witness residing within or without the state. The depositions shall be taken in the manner prescribed by law for depositions in civil actions and made returnable to the commissioner.
        (14) Order that each witness appearing under the commissioner's order to testify before the commissioner shall receive the fees and mileage allowances provided for witnesses in civil cases.
        (15) Provide interpretive opinions or issue determinations that the commissioner will not institute a proceeding or an action under this chapter against a specified person for engaging in a specified act, practice, or course of business if the determination is consistent with this chapter. The commissioner may adopt rules to establish fees for individuals requesting an interpretive opinion or a determination under this subdivision. A person may not request an interpretive opinion or a determination concerning an activity that:
            (A) occurred before; or
            (B) is occurring on;
        the date the opinion or determination is requested.
         (16) Subject to subsection (f), designate a multistate automated licensing system and repository, established and operated by a third party, to serve as the sole entity responsible for:
            (A) processing applications for:

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                (i) licenses and certificates of registration under this chapter; and
                (ii) renewals of licenses and certificates of registration under this chapter; and
            (B) performing other services that the commissioner determines are necessary for the orderly administration of the division's licensing and registration system.
        A multistate automated licensing system and repository described in this subdivision may include the National Mortgage Licensing System established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The commissioner may take any action necessary to allow the division to participate in a multistate automated licensing system and repository.
    (b) If a witness, in any hearing, inquiry, or investigation conducted under this chapter, refuses to answer any question or produce any item, the commissioner may file a written petition with the circuit or superior court in the county where the hearing, investigation, or inquiry in question is being conducted requesting a hearing on the refusal. The court shall hold a hearing to determine if the witness may refuse to answer the question or produce the item. If the court determines that the witness, based upon the witness's privilege against self-incrimination, may properly refuse to answer or produce an item, the commissioner may make a written request that the court grant use immunity to the witness. Upon written request of the commissioner, the court shall grant use immunity to a witness. The court shall instruct the witness, by written order or in open court, that:
        (1) any evidence the witness gives, or evidence derived from that evidence, may not be used in any criminal proceedings against that witness, unless the evidence is volunteered by the witness or is not responsive to a question; and
        (2) the witness must answer the questions asked and produce the items requested.
A grant of use immunity does not prohibit evidence that the witness gives in a hearing, investigation, or inquiry from being used in a prosecution for perjury under IC 35-44-2-1. If a witness refuses to give the evidence after the witness has been granted use immunity, the court may find the witness in contempt.
    (c) In any prosecution, action, suit, or proceeding based upon or arising out of this chapter, the commissioner may sign a certificate showing compliance or noncompliance with this chapter by any person. This shall constitute prima facie evidence of compliance or

noncompliance with this chapter and shall be admissible in evidence in any action at law or in equity to enforce this chapter.
    (d) If:
        (1) a person disobeys any lawful:
            (A) subpoena issued under this chapter; or
            (B) order or demand requiring the production of any books, accounts, papers, records, documents, or other evidence or information as provided in this chapter; or
        (2) a witness refuses to:
            (A) appear when subpoenaed;
            (B) testify to any matter about which the witness may be lawfully interrogated; or
            (C) take or subscribe to any oath required by this chapter;
the circuit or superior court of the county in which the hearing, inquiry, or investigation in question is held, if demand is made or if, upon written petition, the production is ordered to be made, or the commissioner or a hearing officer appointed by the commissioner, shall compel compliance with the lawful requirements of the subpoena, order, or demand, compel the production of the necessary or required books, papers, records, documents, and other evidence and information, and compel any witness to attend in any Indiana county and to testify to any matter about which the witness may lawfully be interrogated, and to take or subscribe to any oath required.
    (e) If a person fails, refuses, or neglects to comply with a court order under this section, the person shall be punished for contempt of court.
     (f) The commissioner's authority to designate a multistate automated licensing system and repository under subsection (a)(16) is subject to the following:
        (1) The commissioner may not require any person exempt from licensure or registration under this chapter, or any employee or agent of an exempt person, to:
            (A) submit information to; or
            (B) participate in;
        the multistate automated licensing system and repository.
        (2) The commissioner may require a person required under this chapter to submit information to the multistate automated licensing system and repository to pay a processing fee considered reasonable by the commissioner.

SOURCE: IC 23-2-5-18; (08)HB1360.2.21. -->     SECTION 21. IC 23-2-5-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 18. (a) Each loan broker agreement shall be given an account number. Each licensee person licensed or required to be licensed under this chapter shall

keep and maintain the following records or their electronic equivalent:
        (1) A file for each borrower or proposed borrower that contains the following:
            (A) The name and address of the borrower or any proposed borrower.
            (B) A copy of the signed loan broker agreement.
            (C) A copy of any other papers or instruments used in connection with the loan broker agreement and signed by the borrower or any proposed borrower.
            (D) If a loan was obtained for the borrower, the name and address of the creditor.
            (E) If a loan is accepted by the borrower, a copy of the loan agreement.
            (F) The amount of the loan broker's fee that the borrower has paid. If there is an unpaid balance, the status of any collection efforts.
        (2) All receipts from or for the account of borrowers or any proposed borrowers and all disbursements to or for the account of borrowers or any proposed borrowers, recorded so that the transactions are readily identifiable.
        (3) A general ledger that shall be posted at least monthly, and a trial balance sheet and profit and loss statement prepared within thirty (30) days of the commissioner's request for the information.
        (4) A sample of:
            (A) all advertisements, pamphlets, circulars, letters, articles, or communications published in any newspaper, magazine, or periodical;
            (B) scripts of any recording, radio, or television announcement; and
            (C) any sales kits or literature;
        to be used in solicitation of borrowers.
    (b) The records listed in subsection (a) shall be kept for a period of two (2) years in the licensee's loan broker's principal office and must be separate or readily identifiable from the records of any other business that is conducted in the office of the loan broker.
     (c) If a breach of the security of any records:
        (1) maintained by a loan broker under this section; and
        (2) containing the unencrypted, unredacted personal information of one (1) or more borrowers or prospective borrowers;
occurs, the loan broker is subject to the disclosure requirements under IC 24-4.9-3, unless the loan broker is exempt from the

disclosure requirements under IC 24-4.9-3-4.
    (d) A person who is:
        (1) licensed or required to be licensed under this chapter; or
        (2) registered or required to be registered under this chapter;
may not dispose of the unencrypted, unredacted personal information of one (1) or more borrowers or prospective borrowers without first shredding, incinerating, mutilating, erasing, or otherwise rendering the information illegible or unusable.

SOURCE: IC 23-2-5-19; (08)HB1360.2.22. -->     SECTION 22. IC 23-2-5-19, AS AMENDED BY P.L.230-2007, SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 19. (a) The following persons are exempt from the requirements of sections 4, 5, 6, 9, 17, 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).
        (3) Any person licensed as a real estate broker or salesperson under IC 25-34.1 to the extent that the person is rendering loan related services in the ordinary course of a transaction in which a license as a real estate broker or salesperson is required.
        (4) Any broker-dealer, agent, or investment advisor registered under IC 23-19.
        (5) Any person that:
            (A) procures;
            (B) promises to procure; or
            (C) assists in procuring;
        a loan that is not subject to the Truth in Lending Act (15 U.S.C. 1601 through 1667e).
        (6) Any community development corporation (as defined in IC 4-4-28-2) acting as a subrecipient of funds from the Indiana housing and community development authority established by IC 5-20-1-3.
        (7) The Indiana housing and community development authority.
        (8) Subject to subsection (e), and except