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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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 is
applicable shall conduct and transact its business in a safe and
prudent manner; shall maintain such institution in a safe and solvent
condition; and shall establish and maintain safe and sound methods
for the conduct of such financial institution and its business and
prudential 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 and
enforcement 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 and
federal money laundering statutes and regulations, including the
following:
(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 requirements
established by the Financial Crimes Enforcement Network of
the United States Department of the Treasury.
(4) Any other state or federal money laundering statutes or
regulations that apply to a financial institution (as defined in
IC 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, state
money laundering statutes or regulations.
(2) Investigate potential violations of federal money laundering
statutes or regulations and, to the extent authorized or required
by federal law:
(A) enforce compliance with the federal statutes or
regulations; or
(B) refer suspected violations of the federal statutes or
regulations 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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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Repealed
(Repealed by P.L.33-1991, SEC.58.)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 other
corporations or individuals may not acquire control of any bank, trust
company, stock savings bank, holding company, corporate fiduciary,
or industrial loan and investment company unless the department has
received and approved an application for change in control. The
department has not more than one hundred twenty (120) days
following receipt of an application to issue a notice approving the
proposed change in control. The application shall contain the name
and address of the corporation, individual, or individuals who
propose 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 than
forty-five (45) days each time if:
(A) the department determines that the corporation,
individual, or individuals who propose to acquire control
have not submitted substantial evidence of the qualifications
described in subsection (c);
(B) the department determines that any material information
submitted is substantially inaccurate; or
(C) the department has been unable to complete the
investigation of the corporation, individual, or individuals
who propose to acquire control because of any delay caused
by or the inadequate cooperation of the corporation,
individual, or individuals.
(c) The department shall issue a notice approving the application
only after it has become satisfied that both of the following apply:
(1) The corporation, individual, or individuals who propose to
acquire control are qualified by competence, experience,
character, and financial responsibility to control and operate the
bank, trust company, stock savings bank, bank holding
company, corporate fiduciary, or industrial loan and investment
company in a legal and proper manner.
(2) The interests of the stockholders, depositors, and creditors
of the bank, trust company, stock savings bank, bank holding
company, corporate fiduciary, or industrial loan and investment
company and the interests of the public generally will not be
jeopardized by the proposed change in control.
(d) As used in this section, .holding company. means any
company (as defined in IC 28-2-15-5 before July 1, 1992, and as
defined in IC 28-2-16-5 beginning July 1, 1992) that directly or
indirectly controls one (1) or more state chartered financial
institutions.
(e) As used in this section, "control", "controlling", "controlled
by", or "under common control with" means possession of the power
directly or indirectly to:
(1) direct or cause the direction of the management or policies
of a bank, a trust company, a holding company, a corporate
fiduciary, 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 securities
of a bank, a trust company, a holding company, a corporate
fiduciary, or an industrial loan and investment company,
whether the voting rights are derived through the beneficial
ownership of voting securities, by contract, or otherwise.
(f) The director may determine, in the director's discretion, that
subsection (a) does not apply to a transaction if the director
determines that the direct or beneficial ownership of the bank, trust
company, stock savings bank, holding company, corporate fiduciary,
or industrial loan and investment company will not change as a result
of the transaction.
(g) The president or other chief executive officer of a financial
institution or holding company shall report to the director any
transfer or sale of shares of stock of the financial institution or
holding company that results in direct or indirect ownership by a
stockholder or an affiliated group of stockholders of at least ten
percent (10%) of the outstanding stock of the financial institution or
holding company. The report required by this section must be made
not later than ten (10) days after the transfer of the shares of stock on
the 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 of
one (1) or more stock savings banks by a bank holding company, a
corporation, an individual, or individuals acting in concert with one
(1) or more individuals if the acquisition is in compliance with
section 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 the
department or the director or deputy, assistant, or any other person
having access to any such information may not disclose to any
person, other than officially to the department, by the report made to
it, or to the board of directors, partners, or owners, or in compliance
with the order of a court, the names of the depositors or shareholders
in any financial institution, or the amount of money on deposit
therein at any time in favor of any depositor, or any other
information 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; providing
records 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 department
under 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 under
IC 24-4.4 or IC 24-4.5.
(b) As used in this section, "customer", with respect to a person
described in subsection (a), means an individual consumer, or the
individual's legal representative, who obtains or has obtained from
the person a financial:
(1) product; or
(2) service;
that is to be used primarily for personal, family, or household
purposes. The term does not include an affiliate of the person.
(c) As used in this section, "personal information" includes any of
the following:
(1) An individual's first and last names or first initial and last
name.
(2) Any of the following data elements:
(A) A Social Security number.
(B) A driver's license number.
(C) A state identification card number.
(D) A credit card number.
(E) A financial account number or debit card number.
(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 algorithmic
process into a form in which there is a low probability of
assigning meaning without use of a confidential process or key;
or
(2) is secured by another method that renders the personal
information unreadable or unusable.
(e) As used in this section, personal information is "redacted" if
the personal information has been altered or truncated so that not
more than the last four (4) digits of:
(1) a Social Security number;
(2) a driver's license number;
(3) a state identification number; or
(4) an account number;
are accessible as part of the personal information.
(f) As used in this section, "personal records" means any records
that:
(1) are maintained, whether as a paper record or in an electronic
or a computerized form, by a person to whom this section
applies; and
(2) contain the unencrypted, unredacted personal information of
one (1) or more customers or potential customers.
(g) A person to whom this section applies shall keep and handle
personal 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, the
person maintaining the records is subject to the disclosure
requirements under IC 24-4.9-3, unless the person is exempt from the
disclosure requirements under IC 24-4.9-3-4.
(i) A person to whom this section applies may not dispose of
personal records without first:
(1) shredding, incinerating, or mutilating the personal records;
or
(2) erasing or otherwise rendering illegible or unusable the
personal 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, safeguard
any personal records maintained by the person in accordance with
this section until such time as the person is entitled or required to
destroy 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 the
person's cost any records that the director considers relevant or
material to an examination, investigation, or other matter under
consideration 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 any
examination of any financial institution made by federal authority in
lieu 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 knowingly
solicit from any officer or employee of the department any money or
other 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 federal
Credit Card Accountability Responsibility and Disclosure Act of
2009 as it applies to Indiana borrowers.
(b) If the department receives credible evidence from any source
that a financial institution that issues to Indiana borrowers an
unsecured credit card that is not a debit card, as a card issuer (as
defined in 15 U.S.C. 1602(n)) is not in substantial compliance with
the act, the director of the department shall send a notice of the
evidence by certified mail to the financial institution's chief
executive officer. The notice must:
(1) set forth the provisions of IC 5-13-9.5-1(c) and
IC 5-13-9.5-1(d);
(2) describe the department's evidence that the financial
institution is not in substantial compliance with the act;
(3) describe the consequences under IC 5-13-9.5-1(c) of a
finding that the financial institution is not in substantial
compliance with the act; and
(4) invite a reply that affirms or disputes the evidence of
noncompliance with the act.
If a financial institution disputes the preliminary determination that
it is not in substantial compliance with the act, but fails to convince
the director of the department of its substantial compliance with the
act, the financial institution may, within twenty (20) days of the date
of the notice, request a hearing on the determination. If a hearing is
requested, the department shall schedule the hearing not earlier than
twenty (20) days after the date of the request. If no hearing is
requested, the department's determination that the financial
institution is not in substantial compliance with the act is final.
(c) Except as otherwise provided in this section, any hearing
requested by a financial institution under subsection (b) and the
determination by the department are subject to IC 4-21.5-3. Judicial
review of the department's final determination may be obtained in
accordance with IC 4-21.5-5.
(d) If a financial institution does not contest the determination that
it is not in substantial compliance with the act, or the financial
institution is determined under subsection (b) to not be in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under
IC 5-13-12 of the determination.
(e) A financial institution that has been determined by the
department to not be in substantial compliance with the act may
petition the department for a hearing to demonstrate that the financial
institution has taken the necessary steps to attain substantial
compliance with the act, and to ensure future substantial compliance
with the act. The hearing and the determination by the department
are subject to IC 4-21.5-3. Judicial review of the department's final
determination may be obtained in accordance with IC 4-21.5-5. Upon
final determination by the department, or a final judgment in the case
of pending judicial review, that the financial institution is in
substantial compliance with the act, the department shall
immediately notify the chairperson of the board for depositories
established under IC 5-13-12 of the determination or judgment. As added by P.L.115-2010, SEC.21.
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 is
applicable shall conduct and transact its business in a safe and
prudent manner; shall maintain such institution in a safe and solvent
condition; and shall establish and maintain safe and sound methods
for the conduct of such financial institution and its business and
prudential 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 and
enforcement 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 and
federal money laundering statutes and regulations, including the
following:
(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 requirements
established by the Financial Crimes Enforcement Network of
the United States Department of the Treasury.
(4) Any other state or federal money laundering statutes or
regulations that apply to a financial institution (as defined in
IC 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, state
money laundering statutes or regulations.
(2) Investigate potential violations of federal money laundering
statutes or regulations and, to the extent authorized or required
by federal law:
(A) enforce compliance with the federal statutes or
regulations; or
(B) refer suspected violations of the federal statutes or
regulations 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 other
corporations or individuals may not acquire control of any bank, trust
company, stock savings bank, holding company, corporate fiduciary,
or industrial loan and investment company unless the department has
received and approved an application for change in control. The
department has not more than one hundred twenty (120) days
following receipt of an application to issue a notice approving the
proposed change in control. The application shall contain the name
and address of the corporation, individual, or individuals who
propose 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 than
forty-five (45) days each time if:
(A) the department determines that the corporation,
individual, or individuals who propose to acquire control
have not submitted substantial evidence of the qualifications
described in subsection (c);
(B) the department determines that any material information
submitted is substantially inaccurate; or
(C) the department has been unable to complete the
investigation of the corporation, individual, or individuals
who propose to acquire control because of any delay caused
by or the inadequate cooperation of the corporation,
individual, or individuals.
(c) The department shall issue a notice approving the application
only after it has become satisfied that both of the following apply:
(1) The corporation, individual, or individuals who propose to
acquire control are qualified by competence, experience,
character, and financial responsibility to control and operate the
bank, trust company, stock savings bank, bank holding
company, corporate fiduciary, or industrial loan and investment
company in a legal and proper manner.
(2) The interests of the stockholders, depositors, and creditors
of the bank, trust company, stock savings bank, bank holding
company, corporate fiduciary, or industrial loan and investment
company and the interests of the public generally will not be
jeopardized by the proposed change in control.
(d) As used in this section, .holding company. means any
company (as defined in IC 28-2-15-5 before July 1, 1992, and as
defined in IC 28-2-16-5 beginning July 1, 1992) that directly or
indirectly controls one (1) or more state chartered financial
institutions.
(e) As used in this section, "control", "controlling", "controlled
by", or "under common control with" means possession of the power
directly or indirectly to:
(1) direct or cause the direction of the management or policies
of a bank, a trust company, a holding company, a corporate
fiduciary, 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 securities
of a bank, a trust company, a holding company, a corporate
fiduciary, or an industrial loan and investment company,
whether the voting rights are derived through the beneficial
ownership of voting securities, by contract, or otherwise.
(f) The director may determine, in the director's discretion, that
subsection (a) does not apply to a transaction if the director
determines that the direct or beneficial ownership of the bank, trust
company, stock savings bank, holding company, corporate fiduciary,
or industrial loan and investment company will not change as a result
of the transaction.
(g) The president or other chief executive officer of a financial
institution or holding company shall report to the director any
transfer or sale of shares of stock of the financial institution or
holding company that results in direct or indirect ownership by a
stockholder or an affiliated group of stockholders of at least ten
percent (10%) of the outstanding stock of the financial institution or
holding company. The report required by this section must be made
not later than ten (10) days after the transfer of the shares of stock on
the 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 of
one (1) or more stock savings banks by a bank holding company, a
corporation, an individual, or individuals acting in concert with one
(1) or more individuals if the acquisition is in compliance with
section 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 the
department or the director or deputy, assistant, or any other person
having access to any such information may not disclose to any
person, other than officially to the department, by the report made to
it, or to the board of directors, partners, or owners, or in compliance
with the order of a court, the names of the depositors or shareholders
in any financial institution, or the amount of money on deposit
therein at any time in favor of any depositor, or any other
information 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; providing
records 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 department
under 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 under
IC 24-4.4 or IC 24-4.5.
(b) As used in this section, "customer", with respect to a person
described in subsection (a), means an individual consumer, or the
individual's legal representative, who obtains or has obtained from
the person a financial:
(1) product; or
(2) service;
that is to be used primarily for personal, family, or household
purposes. The term does not include an affiliate of the person.
(c) As used in this section, "personal information" includes any of
the following:
(1) An individual's first and last names or first initial and last
name.
(2) Any of the following data elements:
(A) A Social Security number.
(B) A driver's license number.
(C) A state identification card number.
(D) A credit card number.
(E) A financial account number or debit card number.
(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 algorithmic
process into a form in which there is a low probability of
assigning meaning without use of a confidential process or key;
or
(2) is secured by another method that renders the personal
information unreadable or unusable.
(e) As used in this section, personal information is "redacted" if
the personal information has been altered or truncated so that not
more than the last four (4) digits of:
(1) a Social Security number;
(2) a driver's license number;
(3) a state identification number; or
(4) an account number;
are accessible as part of the personal information.
(f) As used in this section, "personal records" means any records
that:
(1) are maintained, whether as a paper record or in an electronic
or a computerized form, by a person to whom this section
applies; and
(2) contain the unencrypted, unredacted personal information of
one (1) or more customers or potential customers.
(g) A person to whom this section applies shall keep and handle
personal 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, the
person maintaining the records is subject to the disclosure
requirements under IC 24-4.9-3, unless the person is exempt from the
disclosure requirements under IC 24-4.9-3-4.
(i) A person to whom this section applies may not dispose of
personal records without first:
(1) shredding, incinerating, or mutilating the personal records;
or
(2) erasing or otherwise rendering illegible or unusable the
personal 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, safeguard
any personal records maintained by the person in accordance with
this section until such time as the person is entitled or required to
destroy 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 the
person's cost any records that the director considers relevant or
material to an examination, investigation, or other matter under
consideration 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 any
examination of any financial institution made by federal authority in
lieu 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 knowingly
solicit from any officer or employee of the department any money or
other 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 federal
Credit Card Accountability Responsibility and Disclosure Act of
2009 as it applies to Indiana borrowers.
(b) If the department receives credible evidence from any source
that a financial institution that issues to Indiana borrowers an
unsecured credit card that is not a debit card, as a card issuer (as
defined in 15 U.S.C. 1602(n)) is not in substantial compliance with
the act, the director of the department shall send a notice of the
evidence by certified mail to the financial institution's chief
executive officer. The notice must:
(1) set forth the provisions of IC 5-13-9.5-1(c) and
IC 5-13-9.5-1(d);
(2) describe the department's evidence that the financial
institution is not in substantial compliance with the act;
(3) describe the consequences under IC 5-13-9.5-1(c) of a
finding that the financial institution is not in substantial
compliance with the act; and
(4) invite a reply that affirms or disputes the evidence of
noncompliance with the act.
If a financial institution disputes the preliminary determination that
it is not in substantial compliance with the act, but fails to convince
the director of the department of its substantial compliance with the
act, the financial institution may, within twenty (20) days of the date
of the notice, request a hearing on the determination. If a hearing is
requested, the department shall schedule the hearing not earlier than
twenty (20) days after the date of the request. If no hearing is
requested, the department's determination that the financial
institution is not in substantial compliance with the act is final.
(c) Except as otherwise provided in this section, any hearing
requested by a financial institution under subsection (b) and the
determination by the department are subject to IC 4-21.5-3. Judicial
review of the department's final determination may be obtained in
accordance with IC 4-21.5-5.
(d) If a financial institution does not contest the determination that
it is not in substantial compliance with the act, or the financial
institution is determined under subsection (b) to not be in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under
IC 5-13-12 of the determination.
(e) A financial institution that has been determined by the
department to not be in substantial compliance with the act may
petition the department for a hearing to demonstrate that the financial
institution has taken the necessary steps to attain substantial
compliance with the act, and to ensure future substantial compliance
with the act. The hearing and the determination by the department
are subject to IC 4-21.5-3. Judicial review of the department's final
determination may be obtained in accordance with IC 4-21.5-5. Upon
final determination by the department, or a final judgment in the case
of pending judicial review, that the financial institution is in
substantial compliance with the act, the department shall
immediately notify the chairperson of the board for depositories
established under IC 5-13-12 of the determination or judgment. As added by P.L.115-2010, SEC.21.
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 is
applicable shall conduct and transact its business in a safe and
prudent manner; shall maintain such institution in a safe and solvent
condition; and shall establish and maintain safe and sound methods
for the conduct of such financial institution and its business and
prudential 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 and
enforcement 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 and
federal money laundering statutes and regulations, including the
following:
(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 requirements
established by the Financial Crimes Enforcement Network of
the United States Department of the Treasury.
(4) Any other state or federal money laundering statutes or
regulations that apply to a financial institution (as defined in
IC 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, state
money laundering statutes or regulations.
(2) Investigate potential violations of federal money laundering
statutes or regulations and, to the extent authorized or required
by federal law:
(A) enforce compliance with the federal statutes or
regulations; or
(B) refer suspected violations of the federal statutes or
regulations 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 other
corporations or individuals may not acquire control of any bank, trust
company, stock savings bank, holding company, corporate fiduciary,
or industrial loan and investment company unless the department has
received and approved an application for change in control. The
department has not more than one hundred twenty (120) days
following receipt of an application to issue a notice approving the
proposed change in control. The application shall contain the name
and address of the corporation, individual, or individuals who
propose 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 than
forty-five (45) days each time if:
(A) the department determines that the corporation,
individual, or individuals who propose to acquire control
have not submitted substantial evidence of the qualifications
described in subsection (c);
(B) the department determines that any material information
submitted is substantially inaccurate; or
(C) the department has been unable to complete the
investigation of the corporation, individual, or individuals
who propose to acquire control because of any delay caused
by or the inadequate cooperation of the corporation,
individual, or individuals.
(c) The department shall issue a notice approving the application
only after it has become satisfied that both of the following apply:
(1) The corporation, individual, or individuals who propose to
acquire control are qualified by competence, experience,
character, and financial responsibility to control and operate the
bank, trust company, stock savings bank, bank holding
company, corporate fiduciary, or industrial loan and investment
company in a legal and proper manner.
(2) The interests of the stockholders, depositors, and creditors
of the bank, trust company, stock savings bank, bank holding
company, corporate fiduciary, or industrial loan and investment
company and the interests of the public generally will not be
jeopardized by the proposed change in control.
(d) As used in this section, .holding company. means any
company (as defined in IC 28-2-15-5 before July 1, 1992, and as
defined in IC 28-2-16-5 beginning July 1, 1992) that directly or
indirectly controls one (1) or more state chartered financial
institutions.
(e) As used in this section, "control", "controlling", "controlled
by", or "under common control with" means possession of the power
directly or indirectly to:
(1) direct or cause the direction of the management or policies
of a bank, a trust company, a holding company, a corporate
fiduciary, 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 securities
of a bank, a trust company, a holding company, a corporate
fiduciary, or an industrial loan and investment company,
whether the voting rights are derived through the beneficial
ownership of voting securities, by contract, or otherwise.
(f) The director may determine, in the director's discretion, that
subsection (a) does not apply to a transaction if the director
determines that the direct or beneficial ownership of the bank, trust
company, stock savings bank, holding company, corporate fiduciary,
or industrial loan and investment company will not change as a result
of the transaction.
(g) The president or other chief executive officer of a financial
institution or holding company shall report to the director any
transfer or sale of shares of stock of the financial institution or
holding company that results in direct or indirect ownership by a
stockholder or an affiliated group of stockholders of at least ten
percent (10%) of the outstanding stock of the financial institution or
holding company. The report required by this section must be made
not later than ten (10) days after the transfer of the shares of stock on
the 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 of
one (1) or more stock savings banks by a bank holding company, a
corporation, an individual, or individuals acting in concert with one
(1) or more individuals if the acquisition is in compliance with
section 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 the
department or the director or deputy, assistant, or any other person
having access to any such information may not disclose to any
person, other than officially to the department, by the report made to
it, or to the board of directors, partners, or owners, or in compliance
with the order of a court, the names of the depositors or shareholders
in any financial institution, or the amount of money on deposit
therein at any time in favor of any depositor, or any other
information 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; providing
records 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 department
under 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 under
IC 24-4.4 or IC 24-4.5.
(b) As used in this section, "customer", with respect to a person
described in subsection (a), means an individual consumer, or the
individual's legal representative, who obtains or has obtained from
the person a financial:
(1) product; or
(2) service;
that is to be used primarily for personal, family, or household
purposes. The term does not include an affiliate of the person.
(c) As used in this section, "personal information" includes any of
the following:
(1) An individual's first and last names or first initial and last
name.
(2) Any of the following data elements:
(A) A Social Security number.
(B) A driver's license number.
(C) A state identification card number.
(D) A credit card number.
(E) A financial account number or debit card number.
(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 algorithmic
process into a form in which there is a low probability of
assigning meaning without use of a confidential process or key;
or
(2) is secured by another method that renders the personal
information unreadable or unusable.
(e) As used in this section, personal information is "redacted" if
the personal information has been altered or truncated so that not
more than the last four (4) digits of:
(1) a Social Security number;
(2) a driver's license number;
(3) a state identification number; or
(4) an account number;
are accessible as part of the personal information.
(f) As used in this section, "personal records" means any records
that:
(1) are maintained, whether as a paper record or in an electronic
or a computerized form, by a person to whom this section
applies; and
(2) contain the unencrypted, unredacted personal information of
one (1) or more customers or potential customers.
(g) A person to whom this section applies shall keep and handle
personal 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, the
person maintaining the records is subject to the disclosure
requirements under IC 24-4.9-3, unless the person is exempt from the
disclosure requirements under IC 24-4.9-3-4.
(i) A person to whom this section applies may not dispose of
personal records without first:
(1) shredding, incinerating, or mutilating the personal records;
or
(2) erasing or otherwise rendering illegible or unusable the
personal 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, safeguard
any personal records maintained by the person in accordance with
this section until such time as the person is entitled or required to
destroy 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 the
person's cost any records that the director considers relevant or
material to an examination, investigation, or other matter under
consideration 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 any
examination of any financial institution made by federal authority in
lieu 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 knowingly
solicit from any officer or employee of the department any money or
other 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 federal
Credit Card Accountability Responsibility and Disclosure Act of
2009 as it applies to Indiana borrowers.
(b) If the department receives credible evidence from any source
that a financial institution that issues to Indiana borrowers an
unsecured credit card that is not a debit card, as a card issuer (as
defined in 15 U.S.C. 1602(n)) is not in substantial compliance with
the act, the director of the department shall send a notice of the
evidence by certified mail to the financial institution's chief
executive officer. The notice must:
(1) set forth the provisions of IC 5-13-9.5-1(c) and
IC 5-13-9.5-1(d);
(2) describe the department's evidence that the financial
institution is not in substantial compliance with the act;
(3) describe the consequences under IC 5-13-9.5-1(c) of a
finding that the financial institution is not in substantial
compliance with the act; and
(4) invite a reply that affirms or disputes the evidence of
noncompliance with the act.
If a financial institution disputes the preliminary determination that
it is not in substantial compliance with the act, but fails to convince
the director of the department of its substantial compliance with the
act, the financial institution may, within twenty (20) days of the date
of the notice, request a hearing on the determination. If a hearing is
requested, the department shall schedule the hearing not earlier than
twenty (20) days after the date of the request. If no hearing is
requested, the department's determination that the financial
institution is not in substantial compliance with the act is final.
(c) Except as otherwise provided in this section, any hearing
requested by a financial institution under subsection (b) and the
determination by the department are subject to IC 4-21.5-3. Judicial
review of the department's final determination may be obtained in
accordance with IC 4-21.5-5.
(d) If a financial institution does not contest the determination that
it is not in substantial compliance with the act, or the financial
institution is determined under subsection (b) to not be in substantial
compliance with the act, the department shall immediately notify the
chairperson of the board for depositories established under
IC 5-13-12 of the determination.
(e) A financial institution that has been determined by the
department to not be in substantial compliance with the act may
petition the department for a hearing to demonstrate that the financial
institution has taken the necessary steps to attain substantial
compliance with the act, and to ensure future substantial compliance
with the act. The hearing and the determination by the department
are subject to IC 4-21.5-3. Judicial review of the department's final
determination may be obtained in accordance with IC 4-21.5-5. Upon
final determination by the department, or a final judgment in the case
of pending judicial review, that the financial institution is in
substantial compliance with the act, the department shall
immediately notify the chairperson of the board for depositories
established under IC 5-13-12 of the determination or judgment. As added by P.L.115-2010, SEC.21.
