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IC 28-13-16
Chapter 16. Financial Institution Subsidiaries
IC 28-13-16-1
"Qualifying subsidiary" defined
Sec. 1. As used in this chapter, "qualifying subsidiary" means a
foreign or domestic corporation or limited liability company in which
a financial institution has more than fifty percent (50%) ownership.
As added by P.L.215-1999, SEC.10.
IC 28-13-16-2
"Nonqualifying subsidiary" defined
Sec. 2. As used in this chapter, "nonqualifying subsidiary" means
a foreign or domestic corporation or limited liability company in
which a financial institution has fifty percent (50%) or less
ownership.
As added by P.L.215-1999, SEC.10.
IC 28-13-16-3
"Financial institution" defined
Sec. 3. As used in this chapter, "financial institution" means:
(1) a bank (as defined by IC 28-1-1-3);
(2) a savings bank;
(3) a savings association; or
(4) an industrial loan and investment company that maintains
federal deposit insurance.
As added by P.L.215-1999, SEC.10.
IC 28-13-16-4
Acquisition or establishment; powers of subsidiary
Sec. 4. (a) A financial institution or any of its subsidiaries may
acquire or establish a qualifying subsidiary by providing the
department with written notice before acquiring or establishing the
subsidiary. The department shall notify the requesting financial
institution of the department's receipt of the notice.
(b) A subsidiary may exercise a power or engage in an activity
permitted to be performed by a financial institution under the same
conditions and restrictions as if the power or activity is performed by
the financial institution itself, or the activity has been authorized as
"activity eligible for notice" procedures under 12 CFR 5.34(e).
(c) The qualified subsidiary may exercise or engage in the activity
thirty (30) days after the date on which the department receives the
notification unless otherwise notified by the department.
As added by P.L.215-1999, SEC.10. Amended by P.L.258-2003,
SEC.29; P.L.73-2004, SEC.42.
IC 28-13-16-5
Acquiring or establishing a nonqualifying subsidiary; application
Sec. 5. A financial institution or any of its subsidiaries may
acquire or establish a nonqualifying subsidiary by submitting an
application to the department containing:
(1) a complete description of the financial institution's
investment in the subsidiary;
(2) the activity to be conducted; and
(3) a representation that the activity:
(A) could be performed by a financial institution under
statutory authority of this title;
(B) is a part of or incidental to the business of banking as
determined by the director; or
(C) has been authorized as "activity eligible for notice"
procedures under 12 CFR 5.34(e).
The department shall notify the requesting financial institution of the
department's receipt of the application.
As added by P.L.215-1999, SEC.10. Amended by P.L.73-2004,
SEC.43; P.L.10-2006, SEC.77 and P.L.57-2006, SEC.77.
IC 28-13-16-6
Review of notice or application; change in scope or nature of
business activity of qualifying or nonqualifying subsidiary
Sec. 6. (a) The department shall review a financial institution's
notice or application to acquire or establish a qualifying or
nonqualifying subsidiary to determine:
(1) whether the proposed activities are legally permissible; and
(2) whether the proposal endangers the safety or soundness of
the financial institution.
The director shall either approve or disapprove the application for a
nonqualifying subsidiary within sixty (60) days after the date on
which the department receives the application. The period for
approval or disapproval of the application may be extended by the
department based on a determination that additional information
from the financial institution or additional time for analysis is
required.
(b) If there will be a change in the scope or nature of the business
activity of a qualifying subsidiary of a financial institution, the
financial institution shall provide the department with written notice
before the change occurs. The department shall notify the requesting
financial institution of the department's receipt of the notice and shall
review the notice to determine:
(1) whether the proposed change is legally permissible; and
(2) whether the proposed change endangers the safety or
soundness of the financial institution.
The qualifying subsidiary may exercise or engage in the proposed
activity thirty (30) days after the date on which the department
receives the financial institution's notice, as indicated in the
department's notice of receipt, unless otherwise notified by the
department.
(c) If there will be a change in the scope or nature of the business
activity of a nonqualifying subsidiary of a financial institution, the
financial institution shall submit to the department an application
containing a complete description of the proposed change. The
department shall notify the requesting financial institution of the
department's receipt of the application and shall review the
application to determine:
(1) whether the proposed change is legally permissible; and
(2) whether the proposed change endangers the safety or
soundness of the financial institution.
The director shall either approve or disapprove the application not
later than sixty (60) days after the date on which the department
receives the application. The period for approval or disapproval of
the application may be extended by the department based on a
determination that additional information from the financial
institution or additional time for analysis is required.
As added by P.L.215-1999, SEC.10. Amended by P.L.90-2008,
SEC.79.
IC 28-13-16-7
Subsidiaries subject to examination
Sec. 7. (a) Each qualifying subsidiary and nonqualifying
subsidiary is subject to examination by the department or the
appropriate federal banking supervisory authorities.
(b) If, upon examination, the department determines that a
qualifying subsidiary or a nonqualifying subsidiary is operating in
violation of law, regulation, or written condition or in an unsafe or
unsound manner or otherwise threatens the safety and soundness of
the financial institution, the department may direct the financial
institution or subsidiary to take appropriate remedial action, which
may include requiring the financial institution to divest or liquidate
the subsidiary or discontinue specified activities.
As added by P.L.215-1999, SEC.10.
IC 28-13-16-8
Rules
Sec. 8. The department may adopt rules under IC 4-22-2 or
policies to implement this chapter.
As added by P.L.215-1999, SEC.10.
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