IC 28-1-20
    Chapter 20. General Provisions Concerning Banks and TrustCompanies

IC 28-1-20-1
Repealed
    (Repealed by Acts 1980, P.L.40, SEC.10.)

IC 28-1-20-1.1
Statements of account; dormant accounts; service and maintenancecharges
    Sec. 1.1. (a) When a statement of account has been delivered bya bank or savings bank to a depositor, the account, after the period ofthree (3) years from the date of its delivery, shall be deemed finallyadjusted and its correctness conclusively presumed. A statement ofaccount or a passbook is delivered to a depositor, within the meaningof this subsection, when received by the depositor or the depositor'sagent in person or when mailed to the depositor at the depositor's lastknown address. This section does not relieve the depositor from theduty of exercising due diligence in the examination of the statementof account. A depositor must immediately notify the bank or savingsbank upon discovery of any error in the statement of account.
    (b) Any bank, savings bank, or trust company may impose andcollect a monthly service charge and maintenance charge on dormantaccounts, whether time or demand, in such reasonable amounts asmay be determined by resolution of the board of directors and thatare properly disclosed to its depositors.
    (c) For the purpose of this section:
        (1) every demand deposit account is considered a dormantaccount after one (1) year from the date of the last transactionrecorded on the books of the bank, savings bank, or trustcompany with respect to the account; and
        (2) every time deposit account is considered a dormant accountafter three (3) years from the date of the last transactionrecorded on the books of the bank, savings bank, or trustcompany with respect to the account.
    (d) Any bank, savings bank, or trust company may impose andcollect monthly service charges and maintenance charges on activeaccounts, whether time or demand, that are carried by it on its books,in such amounts as may be agreed upon between it and its depositors.
    (e) This section is applicable to national banking associationsdoing business in this state.
As added by Acts 1980, P.L.40, SEC.9. Amended by P.L.258-1989,SEC.1; P.L.122-1994, SEC.80; P.L.215-1999, SEC.3.

IC 28-1-20-2
Repealed
    (Repealed by P.L.215-1999, SEC.16.)

IC 28-1-20-3 Insolvency; void transfers
    Sec. 3. All transfers of notes, bonds, bills of exchange and otherevidences of debt owing to any bank or trust company; all transfersof deposits to its credit; all assignments of mortgages, sureties on realestate, or of judgments or decrees in its favor; all deposits of money,bullion or other valuable thing for its use, or for the use of any of itsshareholders or creditors; and all payments of money to eithershareholders or creditors, made after the commission of an act ofinsolvency, or in contemplation thereof, with a view to preventingthe application of its assets to the proper payment of its justliabilities, or with a view to the preference of one creditor to another,shall be null and void.
(Formerly: Acts 1933, c.40, s.245.)

IC 28-1-20-4
Naming conventions; department's investigatory and enforcementpowers; penalties; marketing materials and solicitations
    Sec. 4. (a) Except as provided in subsections (c), (d), (g), and (o),it is unlawful for any person, firm, limited liability company, orcorporation (other than a bank or trust company, a bank holdingcompany, a subsidiary of a bank or trust company, a subsidiary of abank holding company, a subsidiary of a savings bank, or asubsidiary of a savings association organized or reorganized underIC 28 or statutes in effect at the time of organization orreorganization or under the laws of the United States):
        (1) to use the word "bank", "banc", or "banco" as a part of thename or title of the person, firm, limited liability company, orcorporation; or
        (2) to advertise or represent the person, firm, limited liabilitycompany, or corporation to the public:
            (A) as a bank or trust company or a corporate fiduciary; or
            (B) as affording the services or performing the duties whichby law only a bank or trust company or a corporate fiduciaryis entitled to afford and perform.
    (b) A financial institution organized under the laws of any state orthe United States is authorized to do business in Indiana:
        (1) at its principal office;
        (2) at any branch office; or
        (3) otherwise;
using a name other than its official entity name if the financialinstitution notifies the department at least ten (10) days before usingthe other name.
    (c) Notwithstanding the prohibitions of this section, anout-of-state financial institution with the word "bank" in its legalname may use the word "bank" if the financial institution is insuredby the Federal Deposit Insurance Corporation or its successor.
    (d) Notwithstanding subsection (a), a building and loanassociation organized under IC 28-4 (before its repeal) may includein its name or title:
        (1) the words "savings bank"; or        (2) the word "bank" if the name or title also includes either thewords "savings bank" or letters "SB".
A building and loan association that includes "savings bank" in itstitle under this section does not by that action become a savings bankfor purposes of IC 28-6.1.
    (e) The name or title of a savings bank governed by IC 28-6.1must include the words "savings bank" or the letters "SB".
    (f) A savings association may include in its name the words"building and loan association".
    (g) Notwithstanding subsection (a), a bank holding company (asdefined in 12 U.S.C. 1841) may use the word "bank" or "banks" asa part of its name. However, this subsection does not permit a bankholding company to advertise or represent itself to the public asaffording the services or performing the duties that by law a bank ortrust company only is entitled to afford and perform.
    (h) The department is authorized to investigate the businessaffairs of any person, firm, limited liability company, or corporationthat uses "bank", "banc", or "banco" in its title or holds itself out asa bank, corporate fiduciary, or trust company for the purpose ofdetermining whether the person, firm, limited liability company, orcorporation is violating any of the provisions of this article, and, forthat purpose, the department and its agents shall have access to anyand all of the books, records, papers, and effects of the person, firm,limited liability company, or corporation. In making its examination,the department may examine any person and the partners, officers,members, or agents of the firm, limited liability company, orcorporation under oath, subpoena witnesses, and require theproduction of the books, records, papers, and effects considerednecessary. On application of the department, the circuit or superiorcourt of the county in which the person, firm, limited liabilitycompany, or corporation maintains a place of business shall, byproper proceedings, enforce the attendance and testimony ofwitnesses and the production and examination of books, papers,records, and effects.
    (i) The department is authorized to exercise the powers underIC 28-11-4 against a person, firm, limited liability company, orcorporation that improperly holds itself out as a financial institution.
    (j) A person, firm, limited liability company, or corporation whoviolates this section is subject to a penalty of five hundred dollars($500) per day for each and every day during which the violationcontinues. The penalty imposed shall be recovered in the name of thestate on relation of the department and, when recovered, shall be paidinto the financial institutions fund established by IC 28-11-2-9.
    (k) The word "bank", "banc", or "banco" may not be included inthe name of a corporate fiduciary.
    (l) A person, firm, limited liability company, or corporation maynot use the name of an existing depository financial institution orholding company of a depository financial institution, or a nameconfusingly similar to that of an existing depository financialinstitution or holding company of a depository financial institution,

when marketing to or soliciting business from a customer orprospective customer if the reference to the existing depositoryfinancial institution or holding company of a depository financialinstitution is:
        (1) without the consent of the existing depository financialinstitution or holding company of a depository financialinstitution; and
        (2) in a manner that could cause a reasonable person to believethat the marketing material or solicitation:
            (A) originated from;
            (B) is endorsed by; or
            (C) is in any other way the responsibility of;
the existing depository financial institution or holding company of adepository financial institution.
    (m) An existing depository financial institution or holdingcompany of a depository financial institution may, in addition to anyother remedies available under the law, report an alleged violation ofsubsection (l) to the department. If the department finds that themarketing material or solicitation in question is in violation ofsubsection (l), the department may direct the person, firm, limitedliability company, or corporation to cease and desist from using thatmarketing material or solicitation in Indiana. If that person, firm,limited liability company, or corporation persists in using themarketing material or solicitation, the department may impose a civilpenalty of up to fifteen thousand dollars ($15,000) for each violation.Each instance in which the marketing material or solicitation is sentto a customer or prospective customer constitutes a separate violationof subsection (l).
    (n) Nothing in subsection (l) or (m) prohibits the use of orreference to the name of an existing depository financial institutionor holding company of a depository financial institution in marketingmaterials or solicitations, if the use or reference does not deceive orconfuse a reasonable person regarding whether the marketingmaterial or solicitation:
        (1) originated from;
        (2) is endorsed by; or
        (3) is in any other way the responsibility of;
the existing depository financial institution or holding company of adepository financial institution.
    (o) A person, firm, limited liability company, or corporation mayuse the word "bank", "banc", or "banco" if it would not create asubstantial likelihood of misleading the public by implying that theperson, firm, limited liability company, or corporation is a state orfederally chartered bank or savings bank.
    (p) As used in this section, "depository financial institution" hasthe meaning set forth in IC 28-1-1-6.
    (q) The department may adopt rules under IC 4-22-2 to implementthis section.
(Formerly: Acts 1933, c.40, s.246; Acts 1935, c.5, s.45.) As amendedby P.L.142-1984, SEC.2; P.L.230-1985, SEC.2; P.L.3-1990,

SEC.103; P.L.8-1991, SEC.15; P.L.33-1991, SEC.19; P.L.42-1993,SEC.31; P.L.122-1994, SEC.81; P.L.262-1995, SEC.33;P.L.79-1998, SEC.45; P.L.215-1999, SEC.4; P.L.63-2001, SEC.7and P.L.134-2001, SEC.8; P.L.258-2003, SEC.6; P.L.73-2004,SEC.35; P.L.10-2006, SEC.31 and P.L.57-2006, SEC.31;P.L.90-2008, SEC.26.

IC 28-1-20-5
Depositors; withdrawal of deposits
    Sec. 5. All persons, regardless of age, may become depositors inany bank or trust company and shall be subject to the same dutiesand liabilities respecting their deposits. Whenever a deposit isaccepted by any bank or trust company in the name of any person,regardless of age, the deposit may be withdrawn by the depositor byany of the following methods:
        (1) Check or other instrument in writing. The check or otherinstrument in writing constitutes a receipt or acquittance if thecheck or other instrument in writing is signed by the depositor,and constitutes a valid release and discharge to the bank or trustcompany for all payments so made.
        (2) Electronic means through:
            (A) preauthorized direct withdrawal;
            (B) an automated teller machine;
            (C) a debit card;
            (D) a transfer by telephone;
            (E) a network, including the Internet; or
            (F) any:
                (i) electronic terminal;
                (ii) computer;
                (iii) magnetic tape; or
                (iv) other electronic means.
However, this section may not be construed to affect the rights,liabilities, or responsibilities of participants in an electronic fundtransfer under the federal Electronic Fund Transfer Act (15 U.S.C.1693 et. seq.).
(Formerly: Acts 1933, c.40, s.247; Acts 1973, P.L.280, SEC.4.) Asamended by P.L.19-1999, SEC.1; P.L.81-2001, SEC.2.

IC 28-1-20-6
Loans; misrepresenting age; estoppel by representation
    Sec. 6. When, in case of any loan made by any bank or trustcompany, the borrower, or any other person furnishing security onbehalf of the borrower, shall, as an inducement to the bank or trustcompany to make the loan, represent to it, in writing, that he or sheis eighteen (18) years of age or older, whereas in fact such person orpersons are under the age of eighteen (18) years, or shall otherwisemake any false statement or representation to the bank or trustcompany, and the bank or trust company is thereby deceived, and theloan is made in reliance upon such representation, neither the personso representing, nor any one in his or her behalf, nor any person

otherwise legally liable to pay such loan, shall afterwards be allowed,as against such bank or trust company, to take advantage of the factthat the person making the representation was under eighteen (18)years of age, but each such person shall be estopped by suchrepresentation.
(Formerly: Acts 1933, c.40, s.248; Acts 1973, P.L.280, SEC.5.)

IC 28-1-20-7
Associations of banks and trust companies; authority to join
    Sec. 7. With the consent and approval of the department, any bankor trust company may become associated with any organization orassociation of banks and trust companies, whether state or national,or both, if such organization or association is formed pursuant tofederal legislation which confers on banks or trust companies in thisstate the privilege of participating in such organization orassociation, and the purposes thereof are not inconsistent with anylaw of this state.
(Formerly: Acts 1933, c.40, s.249.)

IC 28-1-20-8
Bank or trust company required to close; custody of business andproperty; petition to reopen; decision; appeal; liquidation
    Sec. 8. (a) When and if any bank and/or trust company organizedor reorganized under the provisions of this article, or any bank ofdiscount and deposit or loan and trust and safe deposit companyorganized under any law enacted prior to February 24, 1933, shall berequired to cease all banking operation within twenty (20) years fromthe time of its organization and promptly thereafter to close itsbusiness, such bank or trust company shall deliver over into thecustody of the department all of its business and property forliquidation and the payment of its liabilities. Such delivery may bemade by an instrument in writing executed pursuant to a resolutionof the board of directors. Before, after, or contemporaneously withthe delivery of all of its business and property to the department,such bank or trust company may, pursuant to a resolution of itsboards of directors, file a petition with the department for authorityto reopen its business and resume its banking operations. Suchpetition shall fix:
        (1) the date of the organization of such bank or trust company;
        (2) the day on which it desires to reopen its business andresume its banking operations, which may be the nextsucceeding business day after the delivery, or effective date ofdelivery fixed in any instrument in writing, of the business andproperty of such bank or trust company to the department;
        (3) such other facts as the board of directors of such bank ortrust company shall deem pertinent; and
        (4) the information required by IC 28-1-15-1 and such otherinformation as the department may prescribe or require.
Thereupon, the department shall make, or cause to be made, a carefulinvestigation and examination of such bank or trust company, the

qualifications and experience of the officers thereof, and the publicnecessity for such bank or trust company in the community in whichit is or has been doing business, and the department, after suchinvestigation and examination, shall, upon the basis of its findingswith respect to all of the matters specified in this section, approve ordisapprove the right of such bank or trust company to reopen itsbusiness and resume its banking operations.
    (b) Upon the filing of any such petition more than thirty (30) daysbefore the day upon which such bank or trust company shall desireto reopen its business and resume its banking operations, thedepartment shall approve or disapprove such petition, in writing, andnotify such bank or trust company of its action not later than the lastbusiness day immediately preceding the day upon which such bankor trust company shall have requested the right to reopen its businessand resume its banking operations. In the event that the departmentshall disapprove the right of such bank or trust company to reopen itsbusiness and resume its banking operations, such bank or trustcompany may appeal such order of the department to the circuit courtof the county in which it has its principal office, and thereupon thematter shall be determined de novo.
    (c) In the event that any bank or trust company shall deliver itsbusiness and property to the department and fail to file a request toreopen its business and resume its banking operations within ten (10)days after such delivery, or in the event that the department or thecircuit court, if the decision of the department be appealed, shalldisapprove the petition of any bank or trust company to reopen itsbusiness and resume its banking operations, such bank or trustcompany shall be liquidated pursuant to the provisions for voluntaryliquidation contained in IC 28-1-9.
(Formerly: Acts 1933, c.40, s.250.) As amended by P.L.263-1985,SEC.74.