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TITLE 750 DEPARTMENT OF FINANCIAL INSTITUTIONS

Notice of First Public Comment Period
LSA Document #23-837

FEES AND CIVIL PENALTIES


PURPOSE OF NOTICE
The Indiana Department of Financial Institutions (DFI) is soliciting public comment on new rules at 750 IAC 10, concerning the institutions regulated by the DFI, and adding the calculation of fees and civil penalties. The DFI seeks comment on the affected citations listed and any other provisions of Title 750 that may be affected by this rulemaking.



OVERVIEW
Basic Purpose and Background
The DFI is a dedicated-funds agency whose revenue is derived solely from supervision, examination, and license fees that are assessed to the institutions under its regulation. From time to time, the DFI also assesses civil penalties for violations of law. The purpose of the rule is to establish the DFI's fees and civil penalties in a new rule.

In concept, the fees first became effective in 1932, when the Indiana general assembly created the DFI based off recommendations from the Indiana Banking Commission and Herman B. Wells. As industries have evolved and come into a regulated space, the DFI has adopted fees to provide for the supervision of the industry. Accordingly, individual fees became effective at different times over the course of time.

Today, the DFI is governed by a statutorily appointed, bipartisan board of seven members that represent institutions regulated by the DFI. The members adopt the fees on an annual basis to be assessed on regulated institutions.

Institutions regulated by the DFI will be affected.

For purposes of IC 4-22-2-28.1, small businesses affected by this rulemaking may contact the Small Business Regulatory Coordinator:
Nicole Buskill
General Counsel
Indiana Department of Financial Institutions
30 South Meridian Street, Suite 200
Indianapolis, IN 46204
nbuskill@dfi.in.gov
For purposes of IC 4-22-2-28.1, the Small Business Ombudsman designated by IC 5-28-17-6 is:
Matthew Jaworowski
Small Business Ombudsman
Indiana Economic Development Corporation
One North Capitol, Suite 700
Indianapolis, IN 46204
(317) 650-0126
majaworowski@iedc.in.gov
Resources available to regulated entities through the small business ombudsman include the ombudsman's duties stated in IC 5-28-17-6, specifically IC 5-28-17-6(9), investigating and attempting to resolve any matter regarding compliance by a small business with a law, rule, or policy administered by a state agency, either as a party to a proceeding or as a mediator.

REQUEST FOR PUBLIC COMMENTS
The DFI is soliciting public comments on the proposed rule. Comments may be submitted in one of the following ways:
(1) By mail or common carrier to the following address:
LSA Document #23-837
Nicole Buskill
General Counsel
Indiana Department of Financial Institutions
30 South Meridian Street, Suite 200
Indianapolis, IN 46204
(2) By electronic mail to nbuskill@dfi.in.gov.To confirm timely delivery of submitted comments, please request a document receipt when sending the electronic mail. PLEASE NOTE: Electronic mail comments will not be considered part of the official written comment period unless they are sent to the address indicated in this notice.
(3) Attend scheduled public hearing.

COMMENT PERIOD DEADLINE
All comments must be postmarked or time stamped not later than February 2, 2024.

The rule, Regulatory Analysis, appendices referenced in the Regulatory Analysis, and materials incorporated by reference (if applicable) are on file at the Indiana Department of Financial Institutions, 30 South Meridian Street, Suite 200, Indianapolis, Indiana and are available for public inspection. Copies of the rule, Regulatory Analysis, and appendices referenced in the Regulatory Analysis are available at the office of the Indiana Department of Financial Institutions.

If the DFI does not receive substantive comments during the public comment period or public hearing, the rule may be adopted with text that is the same as or does not substantially differ from the text of the proposed rule published in this notice.

ADDITIONAL DOCUMENTS

Regulatory Analysis: 20240103-IR-750230837RAA

Notice of Public Hearing: 20240103-IR-750230837PHA

PROPOSED RULE

SECTION 1. 750 IAC 10 IS ADDED TO READ AS FOLLOWS:

ARTICLE 10. FEES AND CIVIL PENALTIES


Rule 1. Fee Schedules for Financial Institutions Required to be Licensed, Chartered, or Registered with the Indiana Department of Financial Institutions Under IC 24 and IC 28


750 IAC 10-1-1 Applicability

Authority: IC 24-4.4-2-402; IC 24-4.4-3-104; IC 24-4.5-3-106; IC 24-4.5-3-503; IC 24-4.5-6-203; IC 24-5-23.6-9; IC 24-7-7-2; IC 24-7-8-4; IC 24-12-9-5; IC 28-1-29-3; IC 28-1-29-10.5; IC 28-7-5-5; IC 28-7-5-11; IC 28-7-5-15; IC 28-7-5-17; IC 28-8-4.1-401; IC 28-8-4.1-506; IC 28-8-5-11; IC 28-8-5-15; IC 28-8-5-19; IC 28-11-3-5


Sec. 1. (a) This rule applies to financial institutions, persons who commit acts in violation of IC 28, and persons subject to IC 24-4.4-3-101, IC 24-4.5-6-102, IC 24-4.5-7-102, IC 24-7-1-1, IC 24-12-1-0.5, IC 28-1-29-3, IC 28-7-5-3, IC 28-8-4.1-201, and IC 28-8-5-11.

(b) For purposes of this article, "financial institution" has the meaning as set forth in IC 28-1-2-30.

(c) For purposes of this article, "person" or "persons" has the meaning as set forth in IC 24-4.5-1-301.5(33).
(Department of Financial Institutions; 750 IAC 10-1-1)


750 IAC 10-1-2 Purpose

Authority: IC 24-4.4-2-402; IC 24-4.4-3-104; IC 24-4.5-3-106; IC 24-4.5-3-503; IC 24-4.5-6-203; IC 24-5-23.6-9; IC 24-7-7-2; IC 24-7-8-4; IC 24-12-9-5; IC 28-1-29-3; IC 28-1-29-10.5; IC 28-7-5-5; IC 28-7-5-11; IC 28-7-5-15; IC 28-7-5-17; IC 28-8-4.1-401; IC 28-8-4.1-506; IC 28-8-5-11; IC 28-8-5-15; IC 28-8-5-19; IC 28-11-3-5

Sec. 2. The purpose of this rule is to establish fee schedules for financial institutions.
(Department of Financial Institutions; 750 IAC 10-1-2)


750 IAC 10-1-3 Fees for banks, savings banks, building and loan associations, and industrial authorities

Authority: IC 28-11-3-5

Sec. 3. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for banks, savings banks, building and loan associations, and industrial authorities is as follows:
IF THE AMOUNT OF TRUST ASSETS IS:  THE FEE WILL BE: 
OVER  BUT NOT OVER  THIS AMOUNT  PLUS  OF EXCESS OVER 
$ 0  $ 10,000M  4,380     
10,001M  15,000M  4,380  .2160 per thousand  10,000M 
15,001M  25,000M  5,460  .0970 per thousand  15,000M 
25,001M  50,000M  6,430  .0748 per thousand  25,000M 
50,001M  100,000M  8,301  .0683 per thousand  50,000M 
100,001M  500,000M  11,717  .0660 per thousand  100,000M 
500,001M  1,000,000M  38,101  .0644 per thousand  500,000M 
1,000,001M  3,000,000M  70,279  .0482 per thousand  1,000,000M 
3,000,0001M  5,000,000M  166,669  .0378 per thousand  3,000,000M 
5,000,0001M  10,000,000M  242,269  .0346 per thousand  5,000,000M 
10,000,001M  20,000,000M  415,204  .0324 per thousand  10,000,000M 
20,000,001M  40,000,000M  739,339  .0318 per thousand  20,000,000M 
40,000,001M    1,376,269  0.0297 per thousand  40,000,000M 

(b) For purposes of this section, "M" means multiply by one thousand (1,000).

(c) For purposes of this article, "department" has the meaning as set forth in IC 28-1-1-3(14).
(Department of Financial Institutions; 750 IAC 10-1-3)


750 IAC 10-1-4 Fees for trust departments

Authority: IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 4. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for trust departments is as follows:
IF THE AMOUNT OF TRUST ASSETS IS:  THE FEE WILL BE: 
OVER  BUT NOT OVER  THIS ASSESSMENT 
$ 0  $ 2,000M  $ 800 
2,001M  5,000M  1,500 
5,001M  10,000M  2,000 
10,001M  20,000M  3,000 
20,001M  30,000M  4,000 
30,001M  40,000M  5,000 
40,001M  50,000M  6,000 
50,001M  100,000M  8,500 
100,001M  500,000M  11,000 
500,001M  1,000,000M  21,000 
1,000,001M    $21,000 plus $.0022 per thousand on trust assets over $1,000,000M 

(b) For purposes of this section, "M" means multiply by one thousand (1,000).
(Department of Financial Institutions; 750 IAC 10-1-4)


750 IAC 10-1-5 Fees for corporate fiduciaries

Authority: IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 5. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for corporate fiduciaries is as follows:
IF THE AMOUNT OF TRUST ASSETS IS:  THE FEE WILL BE: 
OVER  BUT NOT OVER  THIS AMOUNT  PLUS  OF EXCESS OVER 
$ 0  $ 20,000M  5,150     
20,001M  50,000M  5,150  0.1578 per thousand  20,000M 
50,001M  100,000M  9,884  0.0922 per thousand  50,000M 
100,001M  500,000M  14,494  0.0205 per thousand  100,000M 
500,001M  1,000,000M  22,694  0.0102 per thousand  500,000M 
1,000,001M  10,000,000M  27,794  0.0050 per thousand  1,000,000M 
10,000,001M  20,000,000M  72,794  0.0035 per thousand  10,000,000M 
20,000,001M  40,000,000M  107,794  0.0025 per thousand  20,000,000M 
40,000,001M    157,794  0.0020 per thousand  40,000,000M 

(b) For purposes of this section, "M" means multiply by one thousand (1,000).
(Department of Financial Institutions; 750 IAC 10-1-5)


750 IAC 10-1-6 Fees for credit unions

Authority: IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 6. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for credit unions is as follows:
IF THE AMOUNT OF TOTAL ASSETS IS:  THE FEE WILL BE: 
OVER  BUT NOT OVER  THIS AMOUNT  PLUS  OF EXCESS OVER 
$ 0  $ 545M  510     
546M  1,000M  510  0.7373 per thousand  $ 545M 
1,001M  5,000M  845  0.7607 per thousand  1,000M 
5,001M  10,000M  3,888  0.2534 per thousand  5,000M 
10,001M  50,000M  5,155  0.0677 per thousand  10,000M 
50,001M  100,000M  7,861  0.0665 per thousand  50,000M 
100,001M  500,000M  11,188  0.0660 per thousand  100,000M 
500,001M  1,000,000M  37,572  0.0644 per thousand  500,000M 
1,000,001M  3,000,000M  69,749  0.0631 per thousand  1,000,000M 
3,000,001M  5,000,000M  196,001  0.0232 per thousand  3,000,000M 
5,000,001M    242,306  0.0227 per thousand  5,000,000M 

(b) For purposes of this section, "M" means multiply by one thousand (1,000).
(Department of Financial Institutions; 750 IAC 10-1-6)


750 IAC 10-1-7 Fee increase for composite ratings

Authority: IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 7. (a) If a:
(1) bank;
(2) savings bank;
(3) building and loan association;
(4) industrial authority;
(5) trust department;
(6) corporate fiduciary; or
(7) credit union;
receives a composite 3 rating at its most recent state or federal safety and soundness examination, its annual fee is increased by twelve and one-half percent (12.5%). This assessment is prorated on a quarterly basis. The increased supervisory assessment stays in effect until the quarter following the financial institution's receipt of a composite 1 or 2 rating at a state or federal safety and soundness examination.

(b) If a:
(1) bank;
(2) savings bank;
(3) building and loan association;
(4) industrial authority;
(5) trust department;
(6) corporate fiduciary; or
(7) credit union;
receives a composite 4 or 5 rating at its most recent state or federal safety and soundness examination, its annual fee is increased by twenty-five percent (25%). This assessment is prorated on a quarterly basis. The increased supervisory assessment stays in effect until the quarter following the financial institution's receipt of a composite 1 or 2 rating at a state or federal safety and soundness examination.
(Department of Financial Institutions; 750 IAC 10-1-7)


750 IAC 10-1-8 Prorated fees for newly chartered and converted financial institutions

Authority: IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 8. A newly chartered and converted financial institution, which includes thrift and national to state chartered financial institutions, is charged a percentage of its annual fee, as calculated in sections 3 through 6 of this rule, based on the number of months that it is in existence as an Indiana state chartered financial institution during the department's fiscal year.
(Department of Financial Institutions; 750 IAC 10-1-8)


750 IAC 10-1-9 Fees due

Authority: IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 9. The fees prescribed in sections 3 through 6 of this rule are due on or before August 1 of each year.
(Department of Financial Institutions; 750 IAC 10-1-9)


750 IAC 10-1-10 Schedule of fees for applications

Authority: IC 28-11-3-5

Sec. 10. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for the following applications is as follows:
FINANCIAL INSTITUTION FORMATION  BASE FEES 
Interim Institution  $2,000 
Full-Service Institution Upon Submission of Application  $4,000 
Full-Service Institution Upon Department's Approval of Application  $4,000 
   
BANK HOLDING COMPANY   
Bank Holding Company Acquisition  $5,000 
Bank Holding Company Acquisitions (including Interim Bank and Merger)  $5,000 
   
CHANGE OF CONTROL  $500 
   
MERGER FEE FOR BANKS, TRUST COMPANIES, SAVINGS BANKS, BUILDING AND LOAN ASSOCIATIONS, INDUSTRIAL AUTHORITIES, TRUST DEPARTMENTS, AND CORPORATE FIDUCIARIES  $1,000 
MERGER FOR CREDIT UNION  $500 
   
CONVERSIONS   
National Bank to State Charter  $0 
Federally Chartered Savings and Loan to Bank or Savings Bank  $0 
Mutual Savings Bank to Stock Savings Bank  $0 
State Chartered Savings and Loan to Bank or Savings Bank  $0 
Federal Credit Union to State Charter  $0 
   
MUTUAL HOLDING COMPANY REORGANIZATION  $1,000 
   
ESTABLISHMENT OF A BRANCH   
Full-Service Branch  $500 
   
ESTABLISHMENT OF A TRUST OFFICE  $500 
   
RELOCATION OF MAIN OFFICE OR BRANCH  $500 
   
BANK HOLDING COMPANY FORMATION  $1,000 
   
CONSOLIDATION  $1,000 
   
VOLUNTARY DISSOLUTION   
Time of Submission of Application  $2,500 
   
ISSUANCE OF SUBORDINATED DEBT AS CAPITAL  $0 
   
ESTABLISHMENT OF A NONQUALIFYING SUBSIDIARY  $500 

(b) The base fees listed in subsection (a) are the minimum amounts charged for an application. Actual expenses are charged at eighty dollars ($80) per hour, or a part thereof, for all personnel involved in processing, analyzing, or investigating an application. Actual expenses also include transcript preparation, administrative law judge fees, and travel expenses for the members of the department and office personnel. If an actual expense exceeds the basic fee for an application, the amount of the actual expense is charged for the application. Actual expenses of an application for a:
(1) conversion;
(2) merger; or
(3) consolidation;
examination shall not exceed thirty thousand dollars ($30,000).

(c) Financial institutions in the process of voluntary dissolution are not charged an annual fee after the board resolution authorizing the dissolution has been approved by the department under IC 28-1-9-3.

(d) Fees are not imposed if an institution involved in an application is insolvent or is in imminent danger of becoming insolvent, as determined by the director.

(e) For purposes of this article, "director" has the meaning as set forth in IC 24-4.5-1-301.5(13).
(Department of Financial Institutions; 750 IAC 10-1-10)


750 IAC 10-1-11 Fee schedules for consumer credit institutions

Authority: IC 24-4.4-2-402; IC 24-4.4-3-104; IC 24-4.5-6-106; IC 24-4.5-6-203; IC 24-4.5-3-503; IC 24-4.5-6-203; IC 24-5-23.6-9; IC 24-7-7-2; IC 24-7-8-4; IC 24-12-9-5; IC 28-8-4.1-401; IC 28-8-4.1-506; IC 28-8-4.1-1103; IC 28-1-29-3; IC 28-1-29-10.5; IC 28-7-5-5; IC 28-7-5-11; IC 28-7-5-15; IC 28-7-5-17; IC 28-8-5-11; IC 28-8-5-15; IC 28-8-5-19; IC 28-11-3-5
Affected: IC 28-11-3-5

Sec. 11. (a) Under IC 28-11-3-5, the schedule of fees for services rendered and the duties performed by the department in the administration of financial institutions for the entities below is as follows:
Entity Type  Fee Type  Amount of Fee  Due Date 
Check Cashing License 
  Application Fee  $1,000  Time of application 
  Renewal Fee  $500 + $250 per each additional location, $2,000 maximum  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Civil Proceeding Advance Payment Provider License 
  Application Fee  $1,000  Upon submission of application 
  Renewal Fee  $1,000  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Debt Management License 
  Application Fee  $1,000  Upon submission of application 
  Renewal Fee  $1,000  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Creditor's Notification Return for Depository Institutions 
  Application Fee  N/A  N/A 
  Renewal Fee  Volume fee due at $2/$100,000  January 31 each year 
  Renewal Late Fee  N/A  N/A 
  Hourly Exam Fee  N/A  N/A 
Hoosier Traditional Mortgage 
  Certification Fee  $50  Due upon submission of certificate 
  Recertification Fee  $50  July 1 each year 
Consumer Loan License 
  Application  $1,000  Upon submission of application 
  Renewal Fee  The greater of $1,000 or volume fee of $2/$100,000  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Money Transmitter License 
  Application Fee  $1,000  Upon submission of application 
  Renewal Fee  $1,000  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Mortgage Lending License 
  Application  $1,000  Upon submission of application 
  Renewal Fee  $1,000  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Mortgage Loan Originator License 
  Application Fee  $100  Upon submission of application 
  Renewal Fee  $100  December 31 each year 
  Hourly Exam Fee  $80 per hour   
Non-Lender Registration (Credit Sellers/Lessors) (Notice of Intent – State Form 83) 
  Notification Fee  N/A   
  Renewal Fee  Volume fee due at $2/$100,000  January 31 each year 
  Renewal Late Fee  N/A   
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Pawnbroker License 
  Application Fee  $1,000 + $500 for each additional location  Upon submission of application 
  Renewal Fee  $1,000 + $500 for each additional location  December 31 each year 
  Late Renewal Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Rental Purchase Registration 
  Notification Fee  $500   
  Renewal Fee  $500 + $250 for each additional location, not to exceed $10,000  January 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   
Small Loan License 
  Application Fee  $2,000 + $750 per each additional location  Upon submission of application 
  Renewal Fee  $2,000 + $750 per each additional location  December 31 each year 
  Renewal Late Fee  $20 per day  Upon submission of renewal 
  Hourly Exam Fee  $80 per hour  Upon completion of exam 
  Late Exam Fee  $20 per day   

(b) If the license and renewal fees under subsection (a) are paid, an exam fee may be offset, with the first one thousand two hundred dollars ($1,200) of the exam fee waived, plus an additional six hundred dollars ($600) of the exam fee waived for each additional location examined.

(c) If the total amount owed for the volume fee under this section is one hundred dollars ($100) or less, the volume fee is waived.

(d) The mortgage lending license application fee is waived if an applicant's mortgage loan originators are exempt from licensure under 750 IAC 9-3-1(h)(2)(i).
(Department of Financial Institutions; 750 IAC 10-1-11)


Rule 2. Civil Penalty Schedule for Financial Institutions Required to be Licensed, Chartered, or Registered with the Indiana Department of Financial Institutions Under IC 24 and IC 28


750 IAC 10-2-1 Applicability

Authority: IC 24-4.4-2-404.4; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-20-4; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24; IC 28-11-4-7; IC 28-11-4-9

Sec. 1. This rule applies to financial institutions, persons who commit acts in violation of IC 28, and persons subject to IC 24-4.4-3-101, IC 24-4.5-6-102, IC 24-4.5-7-102, IC 24-7-1-1, IC 24-12-1-0.5, IC 28-1-29-3, IC 28-7-5-3, IC 28-8-4.1-201, and IC 28-8-5-11.
(Department of Financial Institutions; 750 IAC 10-2-1)


750 IAC 10-2-2 Purpose

Authority: IC 24-4.4-2-404.4; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-20-4; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24; IC 28-11-4-7; IC 28-11-4-9

Sec. 2. The purpose of this rule is to set forth standards for the assessment of civil penalties for violations of IC 24-4.4, IC 24-4.5, IC 24-7, IC 24-12, and IC 28.
(Department of Financial Institutions; 750 IAC 10-2-2)


750 IAC 10-2-3 Authority

Authority: IC 24-4.4-2-404.4; IC 24-4.4-2-404.6; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-6-124; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-20-4; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24; IC 28-11-4-7; IC 28-11-4-9


(b) The director is authorized to assess civil penalties under IC 24-4.5-4-108, IC 24-4.5-6-122, IC 24-4.5-6-124, and IC 24-4.5-7-404.
(Department of Financial Institutions; 750 IAC 10-2-3)


750 IAC 10-2-4 Civil penalty schedule for banks, savings banks, building and loan associations, industrial authorities, trust departments, corporate fiduciaries, credit unions, and licensees under IC 24-4.4 and IC 24-4.5

Authority: IC 28-1-20-4; IC 28-11-4-7; IC 28-11-4-9

Sec. 4. The schedule of civil penalties for violations of the following statutes is as follows:
Legal Citation  General Description of Violation  Base Violation 
IC 28-1-20-4(m)  Violation of naming convention standards  $7,500 per day 
IC 28-11-4-7; IC 28-11-4-9  Unsafe or unsound practices or violations of law; violations by certain individuals  $500 per day 
(Department of Financial Institutions; 750 IAC 10-2-4)


750 IAC 10-2-5 Mitigating factors

Authority: IC 28-1-20-4; IC 28-11-4-7; IC 28-11-4-9

Sec. 5. The amount of a civil penalty in section 4 of this rule may be adjusted downward to reflect mitigating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows:
(1) The appropriateness of the civil penalty with respect to the financial resources and good faith of a person or an individual charged.
(2) Existence of written policies governing the conduct.
(3) Cooperation with the department in addressing the violation.
(4) A person's history of compliance.
(5) Remedial or corrective action taken by a person.
(6) Whether the violation was voluntarily disclosed to the department.
(7) Evidence of restitution paid.
(8) Other factors that justice requires.
(Department of Financial Institutions; 750 IAC 10-2-5)


750 IAC 10-2-6 Aggravating factors

Authority: IC 28-1-20-4; IC 28-11-4-7; IC 28-11-4-9

Sec. 6. The amount of a civil penalty in section 4 of this rule may be adjusted upward to reflect aggravating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows:
(1) The gravity of the practice, violation, or act, including:
(A) loss or risk of loss to a person;
(B) loss or risk of loss to consumers;
(C) an impact other than loss;
(D) concealment; and
(E) the number of violations at issue.
(2) The economic benefit derived by an individual from the practice, violation, or act.
(3) Willful or intentional misconduct.
(4) Duration and frequency of the violation.
(5) History of similar prior violations.
(6) Fraudulent conduct.
(7) Whether the violation negatively impacts the integrity or public trust of financial institutions in the state of Indiana.
(8) Other factors justice requires.
(Department of Financial Institutions; 750 IAC 10-2-6)


750 IAC 10-2-7 Civil penalty schedule for check cashers, civil proceeding advance payment providers, debt management licensees, consumer credit loan licensees, money transmitter licensees, mortgage lending licensees, mortgage loan originators, non-lender registrants, pawnbroker licensees, rental purchase registrants, and small loan licensees

Authority: IC 24-4.4-2-404.4; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24

Sec. 7. The schedule of civil penalties for violations of the following statutes is as follows:
Legal Citation  General Description of Violation  Base Violation 
IC 24-4.4-2-404.4(3)(c)  Violation of statute, cease and desist order, or any condition imposed in writing by the director by individuals  $7,500 
IC 24-4.4-3-111(2)  Violations of the First Lien Mortgage Act  $2,500 
IC 24-4.5-4-108(6)  Pattern or practice of refusal to issue a refund of credit insurance, GAP, or other authorized produce, when a prepayment of a consumer credit sale or consumer loan is made  $500 per violation 
IC 24-4.5-6-113(3)  Violations of the Uniform Consumer Credit Code  $5,000 
IC 24-4.5-6-122(c)  Violation of statute, cease and desist order, or any condition imposed in writing by the director by directors, officers, or manager of a creditor  $7,500 
IC 24-4.5-7-404(10)  Violations of limits and number of amounts of outstanding small loans, lender verification requirements, and third party database requirements  $50 per violation 
IC 24-7-7-1(b)  Violations of the Rental Purchase Agreement Act  $5,000 
IC 24-12-5-1  Violations of the Civil Proceeding Advance Payment Act  $5,000 
IC 28-1-29-13(b)  Violations of the debt management chapter  $5,000 
IC 28-1-29-13(c)  Knowingly authorized, directs, or aids violations of the debt management chapter  $10,000 
IC 28-7-5-38.1  Violations of the pawnbroking law  $5,000 
IC 28-8-4.1-1105  Violations of Money Transmission Modernization Act  $5,000 
IC 28-8-5-24(a)  Violations of the Check Cashing Act  $5,000 
(Department of Financial Institutions; 750 IAC 10-2-7)


750 IAC 10-2-8 Mitigating factors

Authority: IC 24-4.4-2-404.4; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24

Sec. 8. The amount of a civil penalty under section 7 of this rule may be adjusted downward to reflect mitigating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows:
(1) The appropriateness of the civil penalty with respect to the financial resources and good faith of a person or an individual charged.
(2) Existence of written policies governing the conduct.
(3) Cooperation with the department in addressing the violation.
(4) A person's history of compliance.
(5) Remedial or corrective action taken by a person.
(6) Whether the violation was voluntarily disclosed to the department.
(7) Evidence of restitution paid.
(8) Other factors that justice requires.
(Department of Financial Institutions; 750 IAC 10-2-8)


750 IAC 10-2-9 Aggravating factors

Authority: IC 24-4.4-2-404.4; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24

Sec. 9. The amount of a civil penalty under section 7 of this rule may be adjusted upward to reflect aggravating factors. The existence or nonexistence of any factor is not determinative. Factors that may be considered are as follows:
(1) The gravity of the practice, violation, or act, including:
(A) loss or risk of loss to a person;
(B) loss or risk of loss to consumers;
(C) an impact other than loss;
(D) concealment; and
(E) the number of violations at issue.
(2) The economic benefit derived by a person or an individual from the practice, violation, or act.
(3) Willful or intentional misconduct.
(4) Duration and frequency of the violation.
(5) History of similar prior violations.
(6) Fraudulent conduct.
(7) Whether the violation negatively impacts the integrity or public trust of financial institutions in the state of Indiana.
(8) Other factors justice requires.
(Department of Financial Institutions; 750 IAC 10-2-9)


750 IAC 10-2-10 Assessment of civil penalty not required

Authority: IC 24-4.4-2-404.4; IC 24-4.4-2-404.6; IC 24-4.4-3-111; IC 24-4.5-4-108; IC 24-4.5-6-113; IC 24-4.5-6-122; IC 24-4.5-6-124; IC 24-4.5-7-404; IC 24-7-7-1; IC 24-12-5-1; IC 28-1-20-4; IC 28-1-29-13; IC 28-7-5-38.1; IC 28-8-4.1-1105; IC 28-8-5-24; IC 28-11-4-7; IC 28-11-4-9

Sec. 10. Nothing in this rule shall require the department or director to assess a civil penalty for a violation. (Department of Financial Institutions; 750 IAC 10-2-10)


Posted: 01/03/2024 by Legislative Services Agency

DIN: 20240103-IR-750230837FNA
Composed: May 29,2024 8:40:05PM EDT
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