CHAPTER 2. POWERS AND DUTIES OF THE DEPARTMENT
IC 28-1-2
Chapter 2. Powers and Duties of the Department
IC 28-1-2-1
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-2
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-3
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-4
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-5
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-6
Prudent conduct of business
Sec. 6. Every financial institution to which this article isapplicable shall conduct and transact its business in a safe andprudent manner; shall maintain such institution in a safe and solventcondition; and shall establish and maintain safe and sound methodsfor the conduct of such financial institution and its business andprudential affairs.
(Formerly: Acts 1933, c.40, s.9; Acts 1971, P.L.394, SEC.6.)
IC 28-1-2-6.5
Compliance with money laundering laws; investigation andenforcement by the department
Sec. 6.5. (a) A financial institution (as defined in IC 28-1-1-3(1)),except for a licensee under IC 24-4.5, shall comply with all state andfederal money laundering statutes and regulations, including thefollowing:
(1) The Bank Secrecy Act (31 U.S.C. 5311 et seq.).
(2) The USA Patriot Act of 2001 (P.L. 107-56).
(3) Any regulations, policies, or reporting requirementsestablished by the Financial Crimes Enforcement Network ofthe United States Department of the Treasury.
(4) Any other state or federal money laundering statutes orregulations that apply to a financial institution (as defined inIC 28-1-1-3(1)) other than a licensee under IC 24-4.5.
(b) The department shall do the following:
(1) To the extent authorized or required by state law, investigate
potential violations of, and enforce compliance with, statemoney laundering statutes or regulations.
(2) Investigate potential violations of federal money launderingstatutes or regulations and, to the extent authorized or requiredby federal law:
(A) enforce compliance with the federal statutes orregulations; or
(B) refer suspected violations of the federal statutes orregulations to the appropriate federal regulatory agencies.
As added by P.L.10-2006, SEC.28 and P.L.57-2006, SEC.28.
IC 28-1-2-7
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-8
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-9
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-10
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-11
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-12
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-13
epealed
(Repealed by Acts 1971, P.L.394, SEC.31.)
IC 28-1-2-14
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-15
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-16
Repealed (Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-17
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-18
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-19
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-20
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-21
Repealed
(Repealed by Acts 1979, P.L.17, SEC.55.)
IC 28-1-2-22
Repealed
(Repealed by P.L.42-1993, SEC.103.)
IC 28-1-2-23
Change in control; application; approval; "holding company";"control"; change in stock ownership
Sec. 23. (a) A corporation or an individual acting directly,indirectly, or through or in concert with one (1) or more othercorporations or individuals may not acquire control of any bank, trustcompany, stock savings bank, holding company, corporate fiduciary,or industrial loan and investment company unless the department hasreceived and approved an application for change in control. Thedepartment has not more than one hundred twenty (120) daysfollowing receipt of an application to issue a notice approving theproposed change in control. The application shall contain the nameand address of the corporation, individual, or individuals whopropose to acquire control.
(b) The period for approval under subsection (a) may be extended:
(1) in the discretion of the director for an additional thirty (30)days; and
(2) not to exceed two (2) additional times for not more thanforty-five (45) days each time if:
(A) the department determines that the corporation,individual, or individuals who propose to acquire controlhave not submitted substantial evidence of the qualificationsdescribed in subsection (c);
(B) the department determines that any material information
submitted is substantially inaccurate; or
(C) the department has been unable to complete theinvestigation of the corporation, individual, or individualswho propose to acquire control because of any delay causedby or the inadequate cooperation of the corporation,individual, or individuals.
(c) The department shall issue a notice approving the applicationonly after it has become satisfied that both of the following apply:
(1) The corporation, individual, or individuals who propose toacquire control are qualified by competence, experience,character, and financial responsibility to control and operate thebank, trust company, stock savings bank, bank holdingcompany, corporate fiduciary, or industrial loan and investmentcompany in a legal and proper manner.
(2) The interests of the stockholders, depositors, and creditorsof the bank, trust company, stock savings bank, bank holdingcompany, corporate fiduciary, or industrial loan and investmentcompany and the interests of the public generally will not bejeopardized by the proposed change in control.
(d) As used in this section, .holding company. means anycompany (as defined in IC 28-2-15-5 before July 1, 1992, and asdefined in IC 28-2-16-5 beginning July 1, 1992) that directly orindirectly controls one (1) or more state chartered financialinstitutions.
(e) As used in this section, "control", "controlling", "controlledby", or "under common control with" means possession of the powerdirectly or indirectly to:
(1) direct or cause the direction of the management or policiesof a bank, a trust company, a holding company, a corporatefiduciary, or an industrial loan and investment company,whether through the beneficial ownership of voting securities,by contract, or otherwise; or
(2) vote at least twenty-five percent (25%) of voting securitiesof a bank, a trust company, a holding company, a corporatefiduciary, or an industrial loan and investment company,whether the voting rights are derived through the beneficialownership of voting securities, by contract, or otherwise.
(f) The director may determine, in the director's discretion, thatsubsection (a) does not apply to a transaction if the directordetermines that the direct or beneficial ownership of the bank, trustcompany, stock savings bank, holding company, corporate fiduciary,or industrial loan and investment company will not change as a resultof the transaction.
(g) The president or other chief executive officer of a financialinstitution or holding company shall report to the director anytransfer or sale of shares of stock of the financial institution orholding company that results in direct or indirect ownership by astockholder or an affiliated group of stockholders of at least tenpercent (10%) of the outstanding stock of the financial institution orholding company. The report required by this section must be made
not later than ten (10) days after the transfer of the shares of stock onthe books of the financial institution or holding company.
(Formerly: Acts 1933, c.40, s.25a; Acts 1965, c.356, s.20; Acts 1971,P.L.394, SEC.19.) As amended by P.L.164-1988, SEC.1; P.L.3-1990,SEC.99; P.L.33-1991, SEC.4; P.L.42-1993, SEC.21; P.L.122-1994,SEC.40; P.L.262-1995, SEC.2; P.L.134-2001, SEC.6; P.L.258-2003,SEC.4; P.L.213-2007, SEC.35; P.L.217-2007, SEC.33; P.L.35-2010,SEC.97.
IC 28-1-2-23.5
Acquisition of control of stock savings banks
Sec. 23.5. This title does not prohibit the acquisition of control ofone (1) or more stock savings banks by a bank holding company, acorporation, an individual, or individuals acting in concert with one(1) or more individuals if the acquisition is in compliance withsection 23 of this chapter.
As added by P.L.42-1993, SEC.22.
IC 28-1-2-24
Repealed
(Repealed by P.L.42-1993, SEC.103.)
IC 28-1-2-25
Repealed
(Repealed by P.L.42-1993, SEC.103.)
IC 28-1-2-26
Repealed
(Repealed by P.L.42-1993, SEC.103.)
IC 28-1-2-27
Repealed
(Repealed by P.L.42-1993, SEC.103.)
IC 28-1-2-28
Repealed
(Repealed by P.L.42-1993, SEC.103.)
IC 28-1-2-29
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-30
Confidential information; disclosure prohibited
Sec. 30. Except as otherwise provided, a member of thedepartment or the director or deputy, assistant, or any other personhaving access to any such information may not disclose to anyperson, other than officially to the department, by the report made toit, or to the board of directors, partners, or owners, or in compliancewith the order of a court, the names of the depositors or shareholders
in any financial institution, or the amount of money on deposittherein at any time in favor of any depositor, or any otherinformation concerning the affairs of any such financial institution.
(Formerly: Acts 1933, c.40, s.32; Acts 1937, c.33, s.2; Acts 1939,c.102, s.1; Acts 1945, c.348, s.21; Acts 1967, c.260, s.4; Acts 1971,P.L.394, SEC.14.) As amended by Acts 1978, P.L.2, SEC.2804;P.L.17-1984, SEC.8; P.L.33-1991, SEC.8.
IC 28-1-2-30.5
Keeping and handling of personal records; breach of security;disposal of personal records; winding up of business; providingrecords to the department
Sec. 30.5. (a) This section applies to the following:
(1) Any:
(A) financial institution;
(B) person required to file notification with the departmentunder IC 24-4.5-6-202;
(C) person subject to IC 24-7; or
(D) other person subject to regulation by the department.
(2) Any person licensed or required to be licensed underIC 24-4.4 or IC 24-4.5.
(b) As used in this section, "customer", with respect to a persondescribed in subsection (a), means an individual consumer, or theindividual's legal representative, who obtains or has obtained fromthe person a financial:
(1) product; or
(2) service;
that is to be used primarily for personal, family, or householdpurposes. The term does not include an affiliate of the person.
(c) As used in this section, "personal information" includes any ofthe following:
(1) An individual's first and last names or first initial and lastname.
(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.
(3) With respect to an individual, any of the following:
(A) Address.
(B) Telephone number.
(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.
(d) As used in this section, personal information is "encrypted" if
the personal information:
(1) has been transformed through the use of an algorithmicprocess into a form in which there is a low probability ofassigning meaning without use of a confidential process or key;or
(2) is secured by another method that renders the personalinformation unreadable or unusable.
(e) As used in this section, personal information is "redacted" ifthe personal information has been altered or truncated so that notmore 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.
(f) As used in this section, "personal records" means any recordsthat:
(1) are maintained, whether as a paper record or in an electronicor a computerized form, by a person to whom this sectionapplies; and
(2) contain the unencrypted, unredacted personal information ofone (1) or more customers or potential customers.
(g) A person to whom this section applies shall keep and handlepersonal records in a manner that:
(1) reasonably safeguards the personal records from destruction,theft, or other loss; and
(2) protects the personal records from misuse.
(h) If a breach of the security of any personal records occurs, theperson maintaining the records is subject to the disclosurerequirements under IC 24-4.9-3, unless the person is exempt from thedisclosure requirements under IC 24-4.9-3-4.
(i) A person to whom this section applies may not dispose ofpersonal records without first:
(1) shredding, incinerating, or mutilating the personal records;or
(2) erasing or otherwise rendering illegible or unusable thepersonal information contained in the records.
(j) If a person to whom this section applies ceases doing business,the person shall, as part of the winding up of the business, safeguardany personal records maintained by the person in accordance withthis section until such time as the person is entitled or required todestroy the records under:
(1) applicable law; or
(2) the person's own records maintenance policies.
(k) A person to whom this section applies shall provide at theperson's cost any records that the director considers relevant ormaterial to an examination, investigation, or other matter underconsideration by the department.
As added by P.L.90-2008, SEC.20. Amended by P.L.1-2009,SEC.147; P.L.35-2010, SEC.98.
IC 28-1-2-31
Acceptance of examination by federal authority
Sec. 31. The department may, in its discretion, accept anyexamination of any financial institution made by federal authority inlieu of the examination made under the provisions of this article.
(Formerly: Acts 1933, c.40, s.33.) As amended by P.L.263-1985,SEC.9.
IC 28-1-2-32
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-33
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-34
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-35
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-36
Solicitation of political contributions; violations
Sec. 36. It is a Class A misdemeanor for a person to knowinglysolicit from any officer or employee of the department any money orother property for political assessments or contributions.
(Formerly: Acts 1933, c.40, s.38.) As amended by Acts 1978, P.L.2,SEC.2806.
IC 28-1-2-37
Repealed
(Repealed by P.L.176-1996, SEC.35.)
IC 28-1-2-38
Repealed
(Repealed by P.L.33-1991, SEC.58.)
IC 28-1-2-39
Repealed
(Repealed by P.L.90-2008, SEC.80.)
IC 28-1-2-40
Five star mortgage program established; guidelines; requirements;certifications; fees; investigations; enforcement
Sec. 40. (a) As used in this section, "act" refers to the federalCredit Card Accountability Responsibility and Disclosure Act of2009 as it applies to Indiana borrowers. (b) If the department receives credible evidence from any sourcethat a financial institution that issues to Indiana borrowers anunsecured credit card that is not a debit card, as a card issuer (asdefined in 15 U.S.C. 1602(n)) is not in substantial compliance withthe act, the director of the department shall send a notice of theevidence by certified mail to the financial institution's chiefexecutive officer. The notice must:
(1) set forth the provisions of IC 5-13-9.5-1(c) andIC 5-13-9.5-1(d);
(2) describe the department's evidence that the financialinstitution is not in substantial compliance with the act;
(3) describe the consequences under IC 5-13-9.5-1(c) of afinding that the financial institution is not in substantialcompliance with the act; and
(4) invite a reply that affirms or disputes the evidence ofnoncompliance with the act.
If a financial institution disputes the preliminary determination thatit is not in substantial compliance with the act, but fails to convincethe director of the department of its substantial compliance with theact, the financial institution may, within twenty (20) days of the dateof the notice, request a hearing on the determination. If a hearing isrequested, the department shall schedule the hearing not earlier thantwenty (20) days after the date of the request. If no hearing isrequested, the department's determination that the financialinstitution is not in substantial compliance with the act is final.
(c) Except as otherwise provided in this section, any hearingrequested by a financial institution under subsection (b) and thedetermination by the department are subject to IC 4-21.5-3. Judicialreview of the department's final determination may be obtained inaccordance with IC 4-21.5-5.
(d) If a financial institution does not contest the determination thatit is not in substantial compliance with the act, or the financialinstitution is determined under subsection (b) to not be in substantialcompliance with the act, the department shall immediately notify thechairperson of the board for depositories established underIC 5-13-12 of the determination.
(e) A financial institution that has been determined by thedepartment to not be in substantial compliance with the act maypetition the department for a hearing to demonstrate that the financialinstitution has taken the necessary steps to attain substantialcompliance with the act, and to ensure future substantial compliancewith the act. The hearing and the determination by the departmentare subject to IC 4-21.5-3. Judicial review of the department's finaldetermination may be obtained in accordance with IC 4-21.5-5. Uponfinal determination by the department, or a final judgment in the caseof pending judicial review, that the financial institution is insubstantial compliance with the act, the department shallimmediately notify the chairperson of the board for depositoriesestablished under IC 5-13-12 of the determination or judgment.
As added by P.L.115-2010, SEC.21.