CHAPTER 11. POWERS OF BANKS AND TRUST COMPANIES
IC 28-1-11
Chapter 11. Powers of Banks and Trust Companies
IC 28-1-11-1
Additional rights, privileges, and powers; "bank or trustcompany", "bank and trust company", "community basedeconomic development", and "community developmentcorporation" defined
Sec. 1. (a) In addition to the general rights, privileges, and powersconferred by IC 28-1-4 through IC 28-1-9 and subject to thelimitations and restrictions contained in this article and in the articlesof incorporation, every bank or trust company shall possess and mayexercise the rights, privileges, and powers enumerated in thischapter.
(b) Unless the language used specifically indicates otherwise, theterms "bank or trust company" and "bank and trust company" as usedin IC 28-1-11 through IC 28-1-20 mean any bank or trust companyorganized under this article and any bank of discount and deposit,loan and trust and safe deposit company, or trust company organizedunder any statute enacted prior to February 24, 1933.
(c) As used in this chapter, "community based economicdevelopment" refers to activities that seek to address economiccauses of poverty within specific geographic areas, revitalizing theeconomic and social base of low income communities throughactivities that include:
(1) affordable housing development;
(2) small business and micro-enterprise support;
(3) commercial, industrial, and retail revitalization, retention,and expansion;
(4) capacity development and technical assistance support forcommunity development corporations;
(5) employment and training efforts;
(6) human resource development; and
(7) social service enterprises.
(d) As used in this chapter, "community development corporation"means a private, nonprofit corporation:
(1) whose board of directors is comprised primarily ofcommunity representatives and business, civic, and communityleaders; and
(2) whose principal purpose includes the provision of:
(A) housing;
(B) community-based economic development projects; and
(C) social services;
that primarily benefit low-income individuals and communities.
(Formerly: Acts 1933, c.40, s.170.) As amended by P.L.263-1985,SEC.58; P.L.3-1990, SEC.101; P.L.14-1992, SEC.80; P.L.42-1993,SEC.26; P.L.136-1994, SEC.1.
IC 28-1-11-2
Fiscal or transfer agent; transportation agent; insurance producer
or broker; attorney in fact
Sec. 2. Any bank or trust company shall have power to act asfiscal or transfer agent of the United States or of any state,municipality, body politic or corporation; and in such capacity toreceive and disburse money; to transfer, register and countersigncertificates of stock, bonds or other evidence of indebtedness; toauthenticate and certify any such bonds and certificates ofindebtedness; to act as agent to buy and sell domestic and foreigntransportation; to solicit and write insurance as an insuranceproducer or broker for any insurance company authorized to dobusiness in the state or states where the insurance producer or brokeroperates; and to act as attorney in fact or agent of any person orcorporation, foreign or domestic, for any lawful purpose.
(Formerly: Acts 1933, c.40, s.171.) As amended by P.L.188-1997,SEC.3; P.L.63-2001, SEC.6 and P.L.134-2001, SEC.7;P.L.178-2003, SEC.89.
IC 28-1-11-2.5
Sale of life insurance policy or annuity contract
Sec. 2.5. (a) A bank or trust company may act as an insuranceproducer for the sale of any life insurance policy or annuity contractissued by a life insurance company authorized to do business in anystate in which the agent operates.
(b) A bank or trust company that acts as an insurance producer forthe sale of a life insurance policy or an annuity contract in Indiana:
(1) is subject to all requirements of IC 27; and
(2) must comply with the disclosure requirements underIC 27-1-38.
(c) A bank or trust company may not condition:
(1) an extension of credit;
(2) a lease or sale of real or personal property;
(3) the performance of services; or
(4) the amount charged for:
(A) extending credit;
(B) leasing or selling real or personal property; or
(C) performing services;
upon a person's purchase of a life insurance policy or an annuitycontract from the bank or trust company or an affiliate (as defined inIC 28-2-13-3) of the bank or trust company.
(d) This section does not prohibit a bank or trust company fromrequiring that a person, as a condition to a transaction, obtain a lifeinsurance policy from an insurance company acceptable to the bankor trust company.
As added by P.L.262-1995, SEC.29. Amended by P.L.188-1997,SEC.4; P.L.130-2002, SEC.5; P.L.192-2003, SEC.2; P.L.178-2003,SEC.90.
IC 28-1-11-2.6
Repealed
(Repealed by P.L.130-2002, SEC.10.)
IC 28-1-11-3
Repealed
(Repealed by Acts 1980, P.L.40, SEC.8.)
IC 28-1-11-3.1
Powers necessary and usual in carrying on banking business;enumerated powers; community development investments; newmarkets tax credit investments
Sec. 3.1. (a) Any bank or trust company shall have the power todiscount, negotiate, sell and guarantee promissory notes, bonds,drafts, acceptances, bills of exchange, and other evidences of debt;to buy and sell, exchange, coin and bullion; to loan money; to borrowmoney and to issue its notes, bonds, or debentures to evidence anysuch borrowing and to mortgage, pledge, or hypothecate any of itsassets to secure the repayment thereof; to receive savings depositsand deposits of money subject to check, and deposits of securities orother personal property from any person or corporation, upon suchterms as may be agreed upon by the parties; to contract for andreceive on loans and discounts the highest rate of interest allowed bythe laws of this state to be contracted for and received by individuals;to accept, for payment at a future date, drafts drawn upon it by itscustomers and to issue letters of credit authorizing the holdersthereof to draw drafts upon it or its correspondents at sight or ontime, however, the letter of credit must state a specific expirationdate; and to exercise all the powers incidental and proper or whichmay be necessary and usual in carrying on a general bankingbusiness, but it shall have no right to issue bills to circulate asmoney.
(b) Subject to such regulations as the department finds to benecessary and proper, any bank or trust company shall have thefollowing powers:
(1) To make such loans and advances of credit and purchases ofobligations representing loans and advances of credit as areeligible for insurance by the federal housing administrator, andto obtain such insurance.
(2) To make such loans secured by mortgages on real propertyor leasehold, as the federal housing administrator insures ormakes a commitment to insure, and to obtain such insurance.
(3) To purchase, invest in, and dispose of notes or bondssecured by mortgage or trust deed insured by the federalhousing administrator or debentures issued by the federalhousing administrator, or bonds or other securities issued bynational mortgage associations.
(4) To extend credit to any state agency, with the approval ofthe department, notwithstanding any other provisions orlimitations of IC 28-1. No law of this state prescribing thenature, amount, or form of security or requiring security uponwhich loans or advances of credit may be made, or prescribingor limiting interest rates upon loans or advances of credit, orprescribing or limiting the period for which loans or advances
of credit may be made, shall be deemed to apply to loans,advances of credit, or purchases made pursuant to subdivisions(1), (2), and (3) and this subdivision.
(5) To purchase, take, hold, and dispose of notes, and mortgagessecuring such notes, made to any joint stock land bankheretofore incorporated, in any case in which not less thanninety-nine percent (99%) of the stock of said joint stock landbank is owned by the bank or trust company at the time suchnotes or mortgages be acquired by the bank or trust company;and upon dissolution of any such joint stock land bank, or atany stage in the process of such dissolution, any bank or trustcompany then owning not less than ninety-nine percent (99%)of the stock of such joint stock land bank may take, hold, anddispose of any notes, mortgages, or other assets of such jointstock land bank of whatsoever nature, including real estate,wheresoever situated, which such joint stock land bank shallassign, transfer, convey, or otherwise make over to such bankor trust company by way of final or partial distribution of itsassets to its stockholders upon such dissolution or in connectionwith the process of such dissolution. No law of this stateprescribing the nature, amount, location, or form of security, orrequiring security upon which loans or advances of credit maybe made, or prescribing or limiting interest rates upon loans oradvances of credit, or prescribing or limiting the period forwhich loan or advances of credit may be made, or prescribingany ratio between the amount of any loan and the appraisedvalue of the security for such loan, or requiring periodicalreductions of the principal of any loan, shall be deemed to applyto loans, notes, mortgages, real estate, or other assets mentionedin this subdivision.
(6) To adopt stock purchase programs for employees and togrant options to purchase, and to issue and sell, shares of itscapital stock to its employees, or to a trustee on their behalf(which may be the bank or trust company issuing such capitalstock), without first offering the same to its shareholders, forsuch consideration, not less than par value, and upon such termsand conditions as shall be approved by its board of directors andby the holders of a majority of its shares entitled to vote withrespect thereto, and by the department. In the absence of actualfraud in the transaction, the judgment of the directors as to theconsideration for the issuances of such options and thesufficiency thereof shall be conclusive. Any bank or trustcompany exercising the powers granted in this subsection may,to the extent approved by the department, have authorized andunissued stock required to fulfill any stock option or otherarrangement authorized herein.
(7) Subject to such restrictions as the department may impose,to become the owner or lessor of personal or real propertyacquired upon the request and for the use of a customer and toincur such additional obligations as may be incident to
becoming an owner or lessor of such property.
(8) To purchase or construct buildings and hold legal titlethereto to be leased to municipal corporations or other publicauthorities, for public purposes, having resources sufficient tomake payment of all rentals as they become due. Each leaseagreement shall provide that upon expiration, the lessee willbecome the owner of the building.
(8.1) Subject to the prior written approval of the department,and notwithstanding section 5 of this chapter, to purchase, hold,and convey real estate which is:
(A) improved or to be improved by a single, freestandingbuilding; and
(B) to be used, in part, as a branch or the principal office ofthat bank or trust company and, in part, as rental property forone (1) or more lessees.
Unless a written extension of time is given by the department,the bank or trust company shall open the branch or principaloffice within two (2) years from the acquisition date of the realestate. If the bank or trust company does not open a branch orits principal office on the real estate in that time period or if thebank or trust company removes its branch or principal officefrom the real estate, the bank or trust company shall divest itselfof all interest in the real estate within five (5) years from theacquisition date of the real estate, if a branch was not opened,or five (5) years from the removal date of the branch office,whichever applies. Except with the written approval of thedepartment, the sum invested in real estate and buildings usedfor the convenient transaction of its business as provided in thissubdivision shall not exceed fifty percent (50%) of the capitaland surplus of the bank or trust company as provided in section5 of this chapter.
(9) Except as provided in subsections (c) and (d), and subject tosubsection (e), to invest directly or indirectly in communitydevelopment corporations and projects of a predominantlycivic, community, or public nature, including equityinvestments in corporations, limited partnerships, limitedliability companies, or other entities organized for suchpurposes. Investments by a bank or trust company under thissubdivision may not exceed:
(A) in any one (1) project, two percent (2%); and
(B) in the aggregate, five percent (5%);
of the capital and surplus of the bank or trust company. As usedin this subdivision and in subsection (c), "capital and surplus"has the meaning set forth in IC 28-1-1-3(10).
(10) Subject to section 3.2 of this chapter, to exercise the rightsand privileges (as defined in section 3.2(a) of this chapter) thatare or may be granted to national banks domiciled in Indiana.
(c) Investments by a bank or trust company under subsection(b)(9) may exceed the limit set forth in subsection (b)(9)(B) if thedirector determines that: (1) the aggregate investments by the bank or trust companyunder subsection (b)(9) in excess of five percent (5%) of thecapital and surplus of the bank or trust company will not posea significant risk to the affected deposit insurance fund; and
(2) the bank or trust company is adequately capitalized.
However, in no case shall the aggregate investments by a bank ortrust company under subsection (b)(9) exceed ten percent (10%) ofthe capital and surplus of the bank or trust company.
(d) Investments by a bank or trust company under subsection(b)(9) in equity investments qualifying for the new markets taxcredits under 26 U.S.C. 45D or other programs approved by thedirector:
(1) are not subject to the limit set forth in subsection (b)(9)(A);and
(2) may exceed the limit set forth in subsection (b)(9)(B) if thedirector determines that:
(A) the aggregate equity investments qualifying for the newmarkets tax credit or other programs that are:
(i) made by the bank or trust company under subsection(b)(9); and
(ii) in excess of five percent (5%) of the capital andsurplus of the bank or trust company;
will not pose a significant risk to the affected depositinsurance fund; and
(B) the bank or trust company is adequately capitalized.
However, in no case shall the aggregate equity investmentsqualifying for the new markets tax credit or other programs andmade by a bank or trust company exceed fifteen percent (15%)of the capital and surplus of the bank or trust company.
(e) A bank or trust company shall not make any investment undersubsection (b)(9) if the investment would expose the bank or trustcompany to unlimited liability.
(f) Any rule made and promulgated under and pursuant to thissection may apply to one (1) or more banks or trust companies or toone (1) or more localities in the state as the department, in itsdiscretion, may determine.
As added by Acts 1980, P.L.40, SEC.7. Amended by P.L.33-1991,SEC.14; P.L.14-1992, SEC.81; P.L.136-1994, SEC.2; P.L.176-1996,SEC.11; P.L.194-1997, SEC.1; P.L.215-1999, SEC.2; P.L.10-2006,SEC.30 and P.L.57-2006, SEC.30; P.L.213-2007, SEC.38;P.L.217-2007, SEC.36; P.L.35-2010, SEC.116.
IC 28-1-11-3.2
Request to exercise rights and privileges granted to national bank;procedures; appeal
Sec. 3.2. (a) As used in this section, "rights and privileges" meansthe power:
(1) to:
(A) create;
(B) deliver; (C) acquire; or
(D) sell;
a product, a service, or an investment that is available to oroffered by; or
(2) to engage in mergers, consolidations, reorganizations, orother activities or to exercise other powers authorized for;
national banks domiciled in Indiana.
(b) A bank that intends to exercise any rights and privileges thatare:
(1) granted to national banks; but
(2) not authorized for banks under the Indiana Code (except forthis section) or any rule adopted under the Indiana Code;
shall submit a letter to the department describing in detail therequested rights and privileges granted to national banks that thebank intends to exercise. If available, copies of relevant federal law,regulations, and interpretive letters must be attached to the lettersubmitted by the bank.
(c) The department shall promptly notify the requesting bank ofthe department's receipt of the letter submitted under subsection (b).Except as provided in subsection (e), the bank may exercise therequested rights and privileges sixty (60) days after the date on whichthe department receives the letter unless otherwise notified by thedepartment.
(d) The department may deny the requested rights and privilegesif the department finds that:
(1) national banks domiciled in Indiana do not possess therequested rights and privileges;
(2) the exercise of the requested rights and privileges by thebank would adversely affect the safety and soundness of thebank;
(3) the exercise of the requested rights and privileges by thebank would result in an unacceptable curtailment of consumerprotection; or
(4) the failure of the department to approve the requested rightsand privileges will not result in a competitive disadvantage tothe bank.
(e) The sixty (60) day period referred to in subsection (c) may beextended by the department based on a determination that the bank'sletter raised issues requiring additional information or additionaltime for analysis. If the sixty (60) day period is extended under thissubsection, the bank may exercise the requested rights and privilegesonly if the bank receives prior written approval from the department.However:
(1) the department must:
(A) approve or deny the requested rights and privileges; or
(B) convene a hearing;
not later than sixty (60) days after the department receives thebank's letter; and
(2) if a hearing is convened, the department must approve ordeny the requested rights and privileges not later than sixty (60)
days after the hearing is concluded.
(f) The exercise of rights and privileges by a bank in compliancewith and in the manner authorized by this section is not a violationof any provision of the Indiana Code or rules adopted underIC 4-22-2.
(g) If a bank receives approval to exercise the requested rights andprivileges granted to national banks domiciled in Indiana, thedepartment shall determine by order whether all banks may exercisethe same rights and privileges. In making the determination requiredby this subsection, the department must ensure that the exercise ofthe rights and privileges by all banks will not:
(1) adversely affect their safety and soundness; or
(2) unduly constrain Indiana consumer protection provisions.
(h) If the department denies the request of a bank under thissection to exercise any rights and privileges that are granted tonational banks, the bank may appeal the decision of the departmentto the circuit court with jurisdiction in the county in which theprincipal office of the bank is located. In an appeal under thissection, the court shall determine the matter de novo.
As added by P.L.194-1997, SEC.2. Amended by P.L.73-2004,SEC.34; P.L.213-2007, SEC.39; P.L.217-2007, SEC.37;P.L.35-2010, SEC.117.
IC 28-1-11-4
Investment securities
Sec. 4. (a) Except as otherwise provided in this article, thebusiness of dealing in investment securities by any bank or trustcompany is limited to purchasing and selling securities withoutrecourse, solely upon the order and for the account of customers andin no event for its own account. A bank or trust company may notunderwrite or guarantee all or any part of any issue of securities otherthan obligations issued or guaranteed by or on behalf of the state orany political subdivision of the state or any agency or instrumentalityof either. A bank or trust company may purchase for its own accountand sell investment securities under such limitations and restrictionsas the department prescribes by rule, but in no event may the totalamount of the investment securities of any one (1) obligor or maker,purchased or held by a bank or trust company for its own account,exceed at any time ten percent (10%) of the amount of the totalequity capital of the bank or trust company. The limitations imposedby this section do not apply to the direct or indirect obligations of theUnited States or the direct obligations of a United States territory orinsular possession or of the state of Indiana or any municipalcorporation or taxing district in Indiana. A bank or trust companymay purchase for its own account and sell shares of stock in federalor state chartered small business investment companies that havereceived a permit or license to operate under the federal SmallBusiness Investment Act (15 U.S.C. 681). However, a bank or trustcompany may not acquire shares in any small business investmentcompany if, upon the making of that acquisition, the aggregate
amount of shares in small business investment companies then heldby the bank would exceed five percent (5%) of its total equitycapital.
(b) A bank or trust company may purchase for its own accountand sell:
(1) shares of open-end investment companies the portfolios ofwhich consist solely of securities that are eligible for purchaseand sale by national banking associations; and
(2) collateralized obligations that are eligible for purchase andsale by national banking associations. However, a bank or trustcompany may purchase for its own account and sell theobligations only to the extent that a national banking associationcan purchase and sell those obligations.
(c) A bank or trust company may deposit its funds in:
(1) a federally chartered savings association; or
(2) a savings association or other entity organized and operatedaccording to federal law or the laws of any state or the Districtof Columbia;
the accounts of which are insured by the Saving AssociationInsurance Fund of the Federal Deposit Insurance Corporation.
(d) A bank or trust company may not purchase for its own accountany bond, note, or other evidence of indebtedness that is commonlydesignated as a security that is speculative in character or that hasspeculative characteristics. For the purposes of this subsection, asecurity is speculative or has speculative characteristics if at the timeof purchase the security:
(1) is rated below the first four (4) rating classes by a generallyrecognized security rating service; or
(2) is in default.
(e) A bank or trust company may purchase for its own account asecurity that is not rated by a generally recognized security ratingservice if the bank or trust company at the time of purchase obtainsfinancial information that is adequate to document the investmentquality of the security.
(f) Except as otherwise authorized by this title, a bank or trustcompany may not purchase any share of stock of a corporation thatis not a subsidiary of that bank or trust company unless the purchaseis considered expedient to prevent loss from a debt previouslycontracted in good faith. Any shares of stock thus acquired by a bankor trust company that would not have been eligible for purchase shallbe sold and disposed of within six (6) months from the date ofacquisition unless the director grants an extension of time for the saleand disposition.
(g) Notwithstanding any other provision of this article, a bank ortrust company may purchase for its own account shares of stock ofa banker's bank insured by the Bank Insurance Fund of the FederalDeposit Insurance Corporation or a holding company that owns orcontrols a banker's bank insured by the Bank Insurance Fund of theFederal Deposit Insurance Corporation. For the purposes of thissubsection, a "banker's bank" is a bank (as defined in IC 28-2-14-2): (1) the stock of which is owned exclusively by other banks (asdefined in IC 28-2-14-2), or by a bank holding company thestock of which is owned exclusively by other banks (as definedin IC 28-2-14-2); and
(2) that is engaged exclusively in providing services to otherbanks (as defined in IC 28-2-14-2), and to their officers,directors, and employees.
A bank's or trust company's holdings of the stock of an insuredbanker's bank or of a holding company that owns or controls aninsured banker's bank may not exceed ten percent (10%) of thecapital and surplus of the bank or trust company. A bank or trustcompany may not purchase the stock of an insured banker's bank orof a holding company that owns or controls an insured banker's bankif, after the purchase, the bank or trust company would own morethan five percent (5%) of any class of voting securities of thebanker's bank or holding company.
(h) Notwithstanding any other provision of this article, a bank ortrust company may invest in a casualty insurance company organizedsolely for the purpose of insuring banks, trust companies, and bankholding companies and their officers and directors from and againstliabilities, including those covered by bankers' blanket bonds anddirector and officer liability insurance and other public liabilityinsurance. The investment must take the form of:
(1) the purchase for the bank's or trust company's own accountof shares of stock of the casualty insurance company or sharesof stock of an association of banks organized for the purpose offunding the casualty insurance company; or
(2) loans to such an association of banks.
The total investment of any bank or trust company under thissubsection may not exceed five percent (5%) of the capital andsurplus of the bank or trust company.
(i) Any bank or trust company may establish or acquire asubsidiary that engages in:
(1) the sale, distribution, or underwriting of securities issued byinvestment companies (as defined in Section 3 of theInvestment Company Act of 1940 (15 U.S.C. 80a-3); or
(2) the underwriting or distribution of securities backed by orrepresenting an interest in mortgages.
(j) As used in this section, "total equity capital" means unimpairedcapital stock, unimpaired surplus, unimpaired undivided profits,subordinated debt that has been approved by the state or federalregulatory agencies, and one hundred percent (100%) of loanreserves.
(k) The department may define an investment security bydepartment policy or by rule.
(l) A bank or trust company may establish a trading account forthe purchase and resale of securities that are otherwise eligible forpurchase or resale by the bank or trust company. The trading accountmust comply with the requirements established by policy or rule ofthe department. (m) A bank or trust company that purchases a security for its ownaccount shall maintain sufficient records of the security to allow thesecurity to be properly identified by the department for examinationpurposes.
(Formerly: Acts 1933, c.40, s.173; Acts 1935, c.5, s.26; Acts 1937,c.33, s.18; Acts 1959, c.125, s.1; Acts 1965, c.356, s.10; Acts 1967,c.260, s.11; Acts 1971, P.L.394, SEC.28.) As amended byP.L.141-1984, SEC.7; P.L.265-1985, SEC.2; P.L.169-1986, SEC.1;P.L.36-1987, SEC.8; P.L.165-1988, SEC.1; P.L.164-1988, SEC.3;P.L.8-1991, SEC.11; P.L.42-1993, SEC.27; P.L.176-1996, SEC.12;P.L.192-1997, SEC.4; P.L.79-1998, SEC.44; P.L.192-2003, SEC.3.
IC 28-1-11-5
Real estate
Sec. 5. (a) Any bank or trust company shall have power topurchase, hold, and convey real estate for the following purposes,and for no others:
(1) Such as shall be necessary for the convenient transaction ofits business.
(2) Such as shall be mortgaged to it or to its assignor immediateor remote, in good faith by way of security for debts.
(3) Such as shall be conveyed to it in satisfaction of debtscontracted in the course of its dealings, or in satisfaction ofdebts, notes, or mortgages purchased by or assigned to it, or inexchange for real estate so conveyed to it.
(4) Such as it shall purchase at sales under judgments, decrees,or mortgages held by the bank or trust company or shallpurchase to secure debts due it.
(b) Except with the approval in writing of the department, afterJuly 1, 1933, the sum invested in real estate and buildings used forthe convenient transaction of its business shall not exceed fiftypercent (50%) of the capital and surplus of such bank or trustcompany. Such investment may be made in the stock of a corporationorganized to own and hold the real estate and building occupied andused wholly or in part by such bank or trust company.
(c) No bank or trust company shall hold the title or possession ofany real estate purchased or otherwise acquired to secure any debtsdue to it for a longer period than ten (10) years after such real estateis or has been purchased or otherwise acquired, or after July 1, 1933,without the consent in writing of the department.
(d) For the purposes of subsection (a)(1), real estate purchased orheld for the convenient transaction of the business of a bank or trustcompany includes the following:
(1) Real estate on which the principal office or a branch officeof the bank or trust company is located.
(2) Real estate that is the location of facilities supporting theoperations of the bank or trust company, such as parkingfacilities, data processing centers, loan production offices,automated teller machines, night depositories, facilitiesnecessary for the operations of a bank or trust company
subsidiary, or other facilities that are approved by the director.
(3) Real estate that the board of directors of the bank or trustcompany expects, in good faith, to use as a bank or trustcompany office or facility in the future.
(e) If real estate referred to in subsection (d)(3) is held by a bankor trust company for one (1) year without being used as a bank ortrust company office or facility, the board of directors of the bank ortrust company shall state, by resolution, definite plans for the use ofthe real estate. A resolution adopted under this subsection shall bemade available for inspection by the department.
(f) Real estate referred to in subsection (d)(3) may not be held bya bank or trust company for more than three (3) years without beingused as a bank or trust company office or facility unless:
(1) the board of directors of the bank or trust company, byresolution:
(A) reaffirms annually that the bank or trust companyexpects to use the real estate as a bank or trust companyoffice or facility in the future; and
(B) explains the reason why the real estate has not yet beenused as a bank or trust company office or facility; and
(2) the director determines that:
(A) the continued holding of the real estate by the bank ortrust company does not endanger the safety and soundnessof the bank or trust company; and
(B) the bank or trust company is holding the real estate touse the real estate in the future for one (1) of the purposesset forth in subsection (d)(1) and (d)(2).
(g) Real estate referred to in subsection (d)(3) may not be held bya bank or trust company for more than ten (10) years without beingused as a bank or trust company office or facility unless thedepartment consents in writing to the continued holding of the realestate by the bank or trust company.
(Formerly: Acts 1933, c.40, s.174; Acts 1935, c.5, s.27; Acts 1943,c.86, s.1; Acts 1959, c.39, s.1; Acts 1965, c.356, s.11; Acts 1967,c.260, s.12.) As amended by P.L.263-1985, SEC.59; P.L.14-1992,SEC.82; P.L.213-2007, SEC.40; P.L.217-2007, SEC.38.
IC 28-1-11-6
Appointment as fiduciary
Sec. 6. Any bank or trust company may be appointed and actunder the order of appointment of any court of competent jurisdictionas commissioner for the sale of real estate, guardian of the personand estate of persons under the age of eighteen (18) years, andincapacitated persons (as defined in IC 29-3-1-7.5), or as trustee,receiver, conservator, or committee of the property or estate of aperson, corporation, or company, in insolvency or bankruptcyproceedings, or as depository of money paid into court, whether forthe benefit of a person, regardless of age, corporation, or party, andin any other fiduciary capacity.
(Formerly: Acts 1933, c.40, s.175; Acts 1973, P.L.280, SEC.3.) As
amended by P.L.33-1989, SEC.27.
IC 28-1-11-7
Testamentary and probate fiduciary appointments
Sec. 7. Any bank or trust company shall have power to beappointed and to accept the appointment and act as executor ortrustee under the last will and testament, or as administrator, with orwithout the will annexed, of the estate of any deceased person, andto be appointed and to act under the order of appointment of anycourt of competent jurisdiction as executor of or trustee under anylast will and testament, whenever it shall be the successor to anycorporation appointed in such last will and testament, whether suchsuccession is the result of merger, consolidation or otherwise.Whenever a natural person is appointed with such corporation in anyappointment as receiver, guardian, commissioner, trustee, executor,administrator with or without the will annexed, his appointment maybe under such limitation of powers, and upon such terms andconditions as to the possession and control of the trust assets by suchcorporation, or otherwise, and as to the bond or security, if any, to begiven by him, as the person appointed and such corporation mayagree and the court or judge making the appointment shall approve.Whenever any natural person who is appointed in any fiduciarycapacity is required to give a bond or security for the faithfulperformance of his duties, such corporation shall have the power andauthority to guarantee or become surety for such natural person ifsuch corporation shall take possession and control of the assetsbelonging to any such estate or other fiduciary relationship, and ifapproved by the court having jurisdiction of the fiduciary.
(Formerly: Acts 1933, c.40, s.176.)
IC 28-1-11-8
Appointment as successor guardian, trustee, executor, oradministrator
Sec. 8. Any bank or trust company shall have power to beappointed and to act under the order of appointment of any court ofcompetent jurisdiction as guardian, trustee, executor oradministrator, with or without the will annexed, on the application orconsent of any person acting as such or entitled to such appointmentand in the place and stead of such person, but such appointment shallbe made upon such notice as is required by law to the personsinterested in the estate or fund and on the consent of such of theprincipal beneficiaries or other persons interested in the estate orfund as the court or judge thereof making the appointment shall deemproper.
(Formerly: Acts 1933, c.40, s.177.)
IC 28-1-11-9
Trust business
Sec. 9. Any bank or trust company shall have power to take,accept and execute any and all legal trusts, duties, and powers in
regard to the holding, management, sale and disposition of anyproperty or estate, real or personal, wherever located, and the rentsand profits thereof, which may be granted or confided to it by anycourt of competent jurisdiction, or by any person, corporation,municipality or other authority; to take, accept and execute any andall trusts and powers of whatsoever nature or description which maybe conferred upon or entrusted or submitted to it by any person, firm,company, or any body politic, corporation, foreign or domestic, orother authority, by grant, assignment, transfer, devise, bequest orotherwise, or which may be entrusted or committed or transferred toit or vested in it by order of any court of competent jurisdiction; andgenerally to execute trusts of every description not inconsistent withthe laws of this state or of the United States.
(Formerly: Acts 1933, c.40, s.178.)
IC 28-1-11-10
Service as fiduciary without bond; judicial control; requirement ofsecurity
Sec. 10. Except as otherwise provided in this chapter, any bank ortrust company shall have power to act in each and every fiduciarycapacity permitted by the terms of this article, and as commissionerfor the sale of real estate, without bond or other security, andadminister oaths attested by the signature of its secretary or cashierand its seal wherever it is acting in any such fiduciary capacity andwhenever an individual acting in the same capacity is authorized bylaw to administer oaths. The court having jurisdiction of thefiduciary at any time, whether before or after acceptance of anyfiduciary appointment, may require a bond or other security, andupon failure of such corporation to give a bond or security asrequired, may remove such corporation and revoke its appointment.No bank or trust company shall pledge or deposit any of its assets asa condition to the exercise of any of its powers as a fiduciary.
(Formerly: Acts 1933, c.40, s.179.) As amended by P.L.263-1985,SEC.60.
IC 28-1-11-11
Safe deposits and escrows
Sec. 11. Any bank or trust company shall have power to receive,upon terms and conditions to be prescribed by such corporation, notinconsistent with the provisions of this section, upon deposit forsafe-keeping, or in escrow, moneys, bonds, mortgages, jewelry, plate,stock, securities and valuable papers of any kind, and other personalproperty for hire, and to rent or lease receptacles for safe deposits ofpersonal property. No bank or trust company nor any of the assetsthereof shall be liable, for the value of any property received by itpursuant to the power conferred by this section nor for damages forthe loss, theft or misappropriation thereof. Any bank or trustcompany may procure and carry a policy or policies of insurance forthe benefit of the owners of any property received by it pursuant tothe power conferred by this section.(Formerly: Acts 1933, c.40, s.180.)
IC 28-1-11-12
Federal reserve system and federal deposit insurance corporationmembership; federal securities
Sec. 12. Every bank or trust company shall have power:
(1) to purchase and hold for the purpose of becoming a memberof the federal reserve system:
(A) so much of the capital stock of a federal reserve bank asshall qualify it for membership, pursuant to the FederalReserve Act (12 U.S.C. 221 et seq.); and
(B) so much of the capital stock of the Federal DepositInsurance Corporation as will qualify it for membership,pursuant to the Federal Deposit Insurance Act (12 U.S.C.1811 through 1833e);
(2) to do anything necessary or appropriate to acquire andmaintain insurance of its deposits in accordance with theprovisions of any federal law in force on or after July 1, 1933;
(3) to become a member of the federal reserve system; and
(4) to have and exercise all powers, not in conflict with the lawsof this state, which are conferred upon any such member by theFederal Reserve Act. With the express approval of thedepartment, and except as otherwise provided in this chapter,any bank or trust company shall have the power to purchase andhold shares of the capital stock, bonds, notes, debentures, or anyother securities or obligations issued at any time by any agencyor instrumentality of the federal government. After July 1, 1933,no bank or trust company shall purchase the capital stock of anyjoint stock land bank organized pursuant to 12 U.S.C. 2001through 2279aa-14 and hold the stock so purchased in anamount in excess of ten percent (10%) of the capital and surplusof such bank or trust company.
(Formerly: Acts 1933, c.40, s.181; Acts 1935, c.5, s.28; Acts 1937,c.33, s.19.) As amended by P.L.263-1985, SEC.61; P.L.8-1991,SEC.12; P.L.42-1993, SEC.28; P.L.213-2007, SEC.41;P.L.217-2007, SEC.39.
IC 28-1-11-12.5
Federal home loan bank; investments; membership; loans;transfer, assignment, and pledge of bonds, notes, contracts,mortgages, securities, and other property
Sec. 12.5. Subject to any limitations imposed by the departmentthrough policy, a bank or trust company may do any of the following:
(1) Invest the money deposited in the bank or trust company inthe shares of the capital stock, bonds, debentures, notes, orother obligations of a federal home loan bank of the UnitedStates.
(2) Become a member of the federal home loan bank of thedistrict in which Indiana is located or an adjoining district.
(3) Borrow money from: (A) a federal home loan bank described in subdivision (2);
(B) the Federal Deposit Insurance Corporation; or
(C) any other corporation.
(4) Transfer, assign to, and pledge with a federal home loanbank described in subdivision (2), the Federal DepositInsurance Corporation, or other corporation any of the bonds,notes, contracts, mortgages, securities, or any other property ofthe bank or trust company held or acquired as security for thepayment of loans entered into under subdivision (3).
(5) Exercise all rights, powers, and privileges conferred upon,and do all things and perform all acts required of, members orshareholders of a federal home loan bank by the Federal HomeLoan Bank Act (12 U.S.C. 1421 through 1449).
As added by P.L.258-2003, SEC.5.
IC 28-1-11-13
Compensation for services
Sec. 13. Any bank or trust company shall have power to demandand receive for the faithful performance and discharge of servicesperformed pursuant to the powers vested in it by this articlereasonable compensation, or such compensation as shall have beenfixed by agreement of the parties, together with any and all advancesnecessarily paid out and expended in the discharge and performanceof its duties, and unless otherwise agreed upon, interest at the legalrate on such advances. No compensation or commission paid oragreed to be paid for the negotiation of any loan or the execution ofany trust by any such corporation shall be deemed to be interestwithin the meaning of any law of this state, nor shall any excessthereof over any rate of interest permitted by the laws of this state bedecreed or held to be usury in any court of law or equity. Theadvances contemplated in this section may include the compensationpaid for the employment of legal services when necessary for theprotection of any trust or other fiduciary relation.
(Formerly: Acts 1933, c.40, s.182.) As amended by P.L.263-1985,SEC.62.