2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 14. CORPORATE FIDUCIARIES CHAPTER 7.5. CONSERVATORSHIP OF CORPORATE FIDUCIARIES
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IC 28-14-7.5
Chapter 7.5. Conservatorship of Corporate Fiduciaries
IC 28-14-7.5-1
Application of chapter
Sec. 1. This chapter applies to a corporate fiduciary (as defined in
IC 28-1-1-3(19)).
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-2
Applications of definitions
Sec. 2. Except as otherwise provided, the definitions in IC 28-14-1
apply throughout this chapter.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-3
Appointment of conservator; bond or security
Sec. 3. (a) The department may appoint a conservator for a
corporate fiduciary if the department determines that:
(1) one (1) or more grounds for the appointment of a receiver
under IC 28-1-3.1-2(a) exist with respect to the corporate
fiduciary; or
(2) the appointment of a conservator is necessary to conserve
the assets of the corporate fiduciary for the benefit of:
(A) creditors of the corporate fiduciary;
(B) the beneficiaries of trusts and other fiduciary accounts
administered by the corporate fiduciary; or
(C) other persons for whom the corporate fiduciary acts in a
fiduciary capacity.
(b) A conservator appointed under this section shall give any bond
or security that the department considers appropriate.
(c) The department may appoint any competent and disinterested
person as a conservator under this section.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-4
Reimbursement of department; administrative expenses; payment
from assets
Sec. 4. (a) A conservator appointed by the department under this
chapter shall reimburse the department for all amounts expended by
the department in connection with the conservatorship. Amounts
reimbursed to the department under this subsection shall be paid
from the assets of the corporate fiduciary as administrative expenses.
Upon approval of the department, the conservator shall pay all other
administrative expenses of the conservatorship from the assets of the
corporate fiduciary.
(b) Administrative expenses described in this section constitute a
first charge against the assets of the corporate fiduciary. The
conservator shall pay the administrative expenses in full before any:
(1) final distribution of the corporate fiduciary's assets; or
(2) payments to any person described in section 3(a)(2) of this
chapter.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-5
Possession of books, records, and assets; conservation of assets;
powers and obligations of conservator; rights of parties
Sec. 5. (a) Under the direction of the department, a conservator
appointed under this chapter shall:
(1) take possession of the books, records, and assets of the
corporate fiduciary; and
(2) take any action necessary to conserve the assets of the
corporate fiduciary pending:
(A) a liquidation under IC 28-1-3.1; or
(B) other disposition of the corporate fiduciary's business as
provided by law.
(b) A conservator appointed under this chapter:
(1) has all the rights, powers, and privileges of a receiver
appointed under IC 28-1-3.1, except the power to liquidate a
corporate fiduciary; and
(2) is subject to those obligations and liabilities to which a
receiver is subject, to the extent the obligations and liabilities
are consistent with this chapter.
(c) Throughout the time a conservator is in possession of a
corporate fiduciary under this chapter, the rights of all parties with
respect to the corporate fiduciary are the same as if a receiver had
been appointed under IC 28-1-3.1.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-6
Amounts available to creditors and beneficiaries; assets received
after placement in conservatorship
Sec. 6. (a) While a corporate fiduciary is in conservatorship under
this chapter, the department may require the conservator to set aside
and make available for payment to any persons described in section
3(a)(2) of this chapter, on a pro rata basis, any amounts that, in the
opinion of the department, may be safely and prudently used for such
payments.
(b) Any assets received or acquired after a corporate fiduciary is
placed in conservatorship under this chapter shall be:
(1) kept in cash;
(2) invested in direct obligations of the United States; or
(3) deposited in depository institutions designated by the
department.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-7
Loans in aid of operation or reorganization; security
Sec. 7. With the prior approval of the department, a conservator
appointed under this chapter may borrow money as necessary or
expedient to aid in the operation or reorganization of the corporate
fiduciary. Any loan obtained by the conservator under this section
may be secured by the pledge or mortgage of, or through a lien upon
or security interest in, any assets:
(1) belonging to the corporate fiduciary; and
(2) not held in trust for the benefit of another person.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-8
Termination of conservatorship; appointment of receiver;
liquidation
Sec. 8. (a) The department may:
(1) terminate a conservatorship ordered under this chapter; and
(2) permit the corporate fiduciary subject to the conservatorship
to resume the transaction of the corporate fiduciary's business,
subject to any terms, conditions, restrictions, and limitations
that the department may prescribe;
if the department is satisfied that a termination of the conservatorship
may be done safely and is in the public interest.
(b) Subject to subsection (c), the department may:
(1) terminate a conservatorship ordered under this chapter; and
(2) apply for the appointment of a receiver for the corporate
fiduciary under IC 28-1-3.1;
if the department determines that the appointment of a receiver for
the corporate fiduciary is in the public interest.
(c) If the department determines that the liquidation of a corporate
fiduciary placed in conservatorship under this chapter is in the public
interest, the department shall:
(1) terminate the conservatorship ordered under this chapter;
and
(2) apply for the appointment of a receiver for the corporate
fiduciary under IC 28-1-3.1.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
IC 28-14-7.5-9
Adoption of rules
Sec. 9. The department may adopt rules under IC 4-22-2 to
implement this chapter.
As added by P.L.10-2006, SEC.78 and P.L.57-2006, SEC.78.
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