2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 13. CORPORATE GOVERNANCE CHAPTER 17. FINANCIAL SUBSIDIARY ACTIVITIES OF FINANCIAL INSTITUTIONS
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IC 28-13-17
Chapter 17. Financial Subsidiary Activities of Financial
Institutions
IC 28-13-17-1
"Financial institution" defined
Sec. 1. As used in this chapter "financial institution" has the
meaning set forth in IC 28-13-16-3.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-2
"Financial subsidiary" defined
Sec. 2. As used in this chapter, "financial subsidiary" means a
foreign or domestic corporation or limited liability company that is
controlled by one (1) or more financial institutions that engages in a
financial subsidiary activity.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-3
"Financial subsidiary activity" defined
Sec. 3. As used in this chapter, "financial subsidiary activity"
means:
(1) an activity that has been authorized for a financial
subsidiary of a national bank under 12 U.S.C. 24a and that may
be conducted by a national bank only through a financial
subsidiary; or
(2) an activity that has been determined by the department to be
financial in nature or incidental to a financial activity.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-4
"Control" defined
Sec. 4. As used in this chapter, "control" has the meaning set forth
in IC 28-2-13-12.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-5
"Hold an interest" defined
Sec. 5. As used in this chapter, "hold an interest" means the
ownership of any equity capital of a financial subsidiary.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-6
"Equity capital" defined
Sec. 6. As used in this chapter, "equity capital" includes, in
addition to an equity investment, a debt instrument issued by a
financial subsidiary, if the instrument qualifies as capital of the
financial subsidiary under any federal or state law, regulation, or
interpretation applicable to the financial subsidiary.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-7
Interest in financial subsidiaries engaged in financial subsidiary
activities
Sec. 7. (a) Notwithstanding any other law, but subject to the
provisions of this chapter, a financial institution may control or hold
an interest in a financial subsidiary that engages in financial
subsidiary activities.
(b) This section does not require an activity to be conducted
through a financial subsidiary that is authorized to be conducted
directly by the financial institution.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
IC 28-13-17-8
Financial subsidiary activities engaged in as principal or new
financial subsidiary activities
Sec. 8. (a) A financial institution may not establish, control, or
hold an interest of a financial subsidiary that engages in financial
subsidiary activities as principal or commence any new financial
subsidiary activity under this section or under 12 U.S.C. 1831w(a)
unless the following occur:
(1) An application has been filed with the department before the
financial subsidiary of the financial institution conducts
financial subsidiary activities.
(2) The department determines that the financial subsidiary
activity poses no significant adverse effects to the safety and
soundness of the financial institution and approves the
application. An approval under this subdivision may be made
subject to conditions and restrictions determined necessary by
the department to prevent unsafe or unsound banking practices.
(3) The financial institution and the financial subsidiary comply
with 12 U.S.C. 371c and 12 U.S.C. 371c-1, as if the subsidiary
were a financial subsidiary, as defined in 12 U.S.C. 371c(e)(1).
(4) All financial institution affiliates of the financial institution
are well-capitalized, as defined in the appropriate capital
regulation and guidance of each financial institution's primary
federal regulator, and the financial institution complies with the
capital deduction requirement in accordance with 12 CFR
362.4(e)(1) through 12 CFR 362.4(e)(3), discloses that capital
separation in any published financial statements and does not
consolidate the financial subsidiary's assets and liabilities with
those of the financial institution in any published financial
statements.
(5) The financial institution and the financial subsidiary meet
the financial and operational safeguards applicable to a
financial subsidiary of a national bank conducting the same
activities as provided in 12 U.S.C. 24a(d).
(b) A financial institution that controls or holds an interest in a
financial subsidiary engaged in a financial subsidiary activity must
comply with the requirements of subsection (a)(2) through (a)(5), as
long as the financial institution's financial subsidiary is engaged in
the financial subsidiary activity.
As added by P.L.63-2001, SEC.28 and P.L.134-2001, SEC.30.
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