2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 2. BANKS CHAPTER 18. INTERSTATE BANK BRANCHING
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IC 28-2-18
Chapter 18. Interstate Bank Branching
IC 28-2-18-1
Purpose of chapter
Sec. 1. It is the intent of this chapter to permit interstate branching
under Sections 102 and 103 of the Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994 (P.L. 103-328) in accordance
with the provisions set forth in this chapter.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-2
Definitions
Sec. 2. The definitions set forth in sections 3 through 18 of this
chapter apply throughout this chapter, unless a different meaning is
required by the context.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-3
"Acquisition of a branch" defined
Sec. 3. As used in this chapter, "acquisition of a branch" means
the acquisition of a branch or branches located in a host state,
without engaging in an interstate merger transaction (as defined in
IC 28-2-17-15).
As added by P.L.171-1996, SEC.37.
IC 28-2-18-4
"Bank" defined
Sec. 4. (a) Except as provided in subsection (b), as used in this
chapter, "bank" has the meaning set forth in 12 U.S.C. 1813(h).
(b) Except as provided in subsection (c), the term "bank" does not
include any foreign bank (as defined in 12 U.S.C. 3101(7)).
(c) The term "bank" includes any foreign bank organized or
reorganized under the laws of a territory of the United States, Puerto
Rico, Guam, American Samoa, or the Virgin Islands, the deposits of
which are insured by the Federal Deposit Insurance Corporation.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-5
"Bank holding company" defined
Sec. 5. As used in this chapter, "bank holding company" has the
meaning set forth in 12 U.S.C. 1841(a)(1).
As added by P.L.171-1996, SEC.37.
IC 28-2-18-6
"Bank supervisory agency"
Sec. 6. As used in this chapter, "bank supervisory agency" means
any of the following:
(1) Any agency of another state with primary responsibility for
organizing and supervising banks.
(2) The Office of the Comptroller of the Currency, the Federal
Deposit Insurance Corporation, the Board of Governors of the
Federal Reserve System, and any successor to these agencies.
As added by P.L.171-1996, SEC.37. Amended by P.L.27-2012,
SEC.80.
IC 28-2-18-7
"Branch" defined
Sec. 7. As used in this chapter, "branch" has the meaning set forth
in IC 28-2-13-7.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-8
"Control" defined
Sec. 8. As used in this chapter, "control" shall be construed
consistently with the provisions of 12 U.S.C. 1841(a)(2).
As added by P.L.171-1996, SEC.37.
IC 28-2-18-9
"Department" defined
Sec. 9. As used in this chapter, "department" refers to the
department of financial institutions.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-10
"De novo branch" defined
Sec. 10. As used in this chapter, "de novo branch" means a branch
of a bank located in a host state that:
(1) is originally established by the bank as a branch; and
(2) does not become a branch of the bank as a result of:
(A) the acquisition of another bank or a branch of another
bank; or
(B) the merger, consolidation, or conversion involving any
such bank or branch.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-11
"Director" defined
Sec. 11. As used in this chapter, "director" refers to the director
of the department.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-12
"Home state" defined
Sec. 12. As used in this chapter, "home state" means the
following:
(1) With respect to a state bank, the state under the laws of
which the bank is organized or reorganized.
(2) With respect to a national bank, the state in which the main
office of the bank is located.
(3) With respect to a foreign bank, the state determined to be
the home state of the foreign bank under 12 U.S.C. 3103(c).
As added by P.L.171-1996, SEC.37.
IC 28-2-18-13
"Home state regulator" defined
Sec. 13. As used in this chapter, "home state regulator" means,
with respect to an out-of-state state bank, the bank supervisory
agency of the state in which such bank is organized or reorganized.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-14
"Host state" defined
Sec. 14. As used in this chapter, "host state" means a state, other
than the home state of a bank, in which the bank:
(1) maintains; or
(2) seeks to establish and maintain;
a branch.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-15
"Indiana state bank" defined
Sec. 15. As used in this chapter, "Indiana state bank" means a
bank organized or reorganized under the laws of Indiana.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-16
"Out-of-state bank" defined
Sec. 16. As used in this chapter, "out-of-state bank" means a bank
whose home state is a state other than Indiana.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-17
"Out-of-state state bank" defined
Sec. 17. As used in this chapter, "out-of-state state bank" means
a bank organized or reorganized under the laws of any state other
than Indiana.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-18
"State" defined
Sec. 18. As used in this chapter, "state" means any of the
following:
(1) Any state of the United States.
(2) The District of Columbia.
(3) Puerto Rico.
(4) Guam.
(5) American Samoa.
(6) The Trust Territory of the Pacific Islands.
(7) The Virgin Islands.
(8) The Northern Mariana Islands.
(9) Any territory of the United States.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-19
Establishment of de novo branch or acquisition of branch in
another state; application; approval or disapproval by department
Sec. 19. (a) With the prior written approval of the department, any
Indiana state bank may establish and maintain a de novo branch or
acquire a branch in a state other than Indiana.
(b) An Indiana state bank that desires to:
(1) establish one (1) or more de novo branches; or
(2) acquire one (1) or more branches under this section;
must file a written application with the department. The application
must be in the form and contain the information prescribed by the
director.
(c) The department may approve or disapprove an application
filed under this section. Before the department approves an
application, the bank must demonstrate to the satisfaction of the
department that:
(1) the applicant state bank will have adequate capital, sound
management, and adequate future earnings prospects after the
establishment of the branch; and
(2) the establishment of the proposed branch will not violate the
laws of the host state.
(d) The investigation of the department relative to any application
as required by this subsection shall be conducted without a public
hearing.
(e) The location of any branch in another state established or
acquired under this section may be changed at any time to a location
within the state where the branch is located if the change of location:
(1) is authorized by the board of directors of the Indiana state
bank; and
(2) approved by the department.
(f) A savings association or an industrial loan and investment
company organized or reorganized under the laws of Indiana may
establish and maintain a de novo branch or acquire a branch in a state
other than Indiana to the same extent and under the same restrictions,
conditions, and requirements as an Indiana state bank.
As added by P.L.171-1996, SEC.37. Amended by P.L.192-1997,
SEC.9; P.L.79-1998, SEC.67.
IC 28-2-18-20
Powers of out-of-state bank; de novo branch
Sec. 20. An out-of-state bank that meets the requirements of this
chapter may establish and maintain a de novo branch in Indiana.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-21
Powers of out-of-state bank; acquisition of branch
Sec. 21. An out-of-state bank that meets the requirements of this
chapter may establish and maintain a branch in Indiana through the
acquisition of a branch.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-22
Notice of proposed transaction
Sec. 22. An out-of-state bank that desires to:
(1) establish and maintain a de novo branch; or
(2) acquire a branch in Indiana pursuant to this chapter;
shall provide written notice of the proposed transaction to the
department not later than the date on which the bank applies to the
responsible federal bank supervisory agency for approval to establish
the branch.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-23
Conditions of establishment
Sec. 23. A branch of an out-of-state bank may not be established
in Indiana under this chapter unless the out-of-state bank:
(1) confirms in writing to the department that it will comply
with all applicable laws of Indiana as long as it maintains a
branch in Indiana; and
(2) provides satisfactory evidence to the department of
compliance with the applicable requirements of IC 28-1-22.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-24
Authorized activities; acquisition of additional branches;
investigation; provisions and fees
Sec. 24. (a) An out-of-state state bank that establishes and
maintains one (1) or more branches in Indiana under this chapter may
conduct at the branch or branches only those activities that are
expressly authorized under the laws of Indiana for Indiana state
banks.
(b) An Indiana state bank may conduct any activities at any
branch located outside Indiana that are permissible for a bank
organized or reorganized by the host state in which the branch is
located. However, if Indiana law specifically prohibits an activity
that is permitted by the host state, the department may by order
waive the prohibition if the department determines that the
involvement of out-of-state branches of Indiana state banks in the
particular activities conducted in the host state would not threaten the
safety or soundness of banks. This section does not authorize a bank
located in Indiana to engage in an activity in Indiana that has been
waived under this provision.
(c) An out-of-state bank that has established or acquired a branch
or branches in Indiana under this chapter may establish or acquire
additional branches in Indiana to the same extent that any Indiana
bank may establish or acquire a branch in Indiana under applicable
federal and state law.
(d) The branch or branches of an out-of-state bank that are
established and maintained in Indiana under this chapter shall be
subject to the provisions and fees of IC 24-4.5 to the same extent as
a bank located in Indiana.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-25
Examination of branch operations
Sec. 25. (a) To the extent consistent with subsection (b), the
department may make examinations of any branch established and
maintained in Indiana pursuant to this chapter by an out-of-state state
bank as the department may consider necessary to determine whether
the branch is being operated in compliance with the laws of Indiana
and in accordance with safe and sound banking practices. The
provisions of IC 28-11-3 shall apply to the examinations.
(b) The department may enter into cooperative, coordinating, and
information-sharing agreements with any organization enumerated
in IC 28-11-3-3 with respect to the periodic examination or other
supervision of:
(1) any branch in Indiana of an out-of-state state bank; or
(2) any branch of an Indiana state bank in any host state;
and the department may accept the organization's reports of
examination and reports of investigation instead of conducting its
own examinations or investigations.
(c) The department may enter into agreements with any financial
institution supervisory agency that has concurrent jurisdiction over
an Indiana state bank or an out-of-state state bank operating a branch
in Indiana pursuant to this chapter to:
(1) engage the services of the agency's examiners at a
reasonable rate of compensation; or
(2) provide the services of the department's examiners to the
agency at a reasonable rate of compensation.
Any such agreement shall be entered into under IC 36-1-7.
(d) The department may enter into joint examinations or joint
enforcement actions with other bank supervisory agencies having
concurrent jurisdiction over any branch established and maintained
in Indiana by an out-of-state state bank or any branch established and
maintained by an Indiana state bank in any host state. The
department may at any time take the actions independently if the
department considers the actions to be necessary or appropriate to
carry out its responsibilities under this chapter or to ensure
compliance with the laws of Indiana. In the case of an out-of-state
state bank, the department shall recognize:
(1) the exclusive authority of the home state regulator over
corporate governance matters; and
(2) the primary responsibility of the home state regulator with
respect to safety and soundness matters.
(e) Each out-of-state state bank that maintains one (1) or more
branches in Indiana is subject to the provisions of IC 28-11-3-5. The
fees may be shared with other financial institution supervisory
agencies or any organization affiliated with or representing one (1)
or more bank supervisory agencies in accordance with agreements
between those parties and the department.
(f) For the purposes of this chapter, the provisions of IC 28-1-2-30
apply to the following:
(1) An out-of-state bank.
(2) An out-of-state savings association.
(3) An out-of-state industrial loan and investment company.
As added by P.L.171-1996, SEC.37. Amended by P.L.79-1998,
SEC.68.
IC 28-2-18-26
Enforcement actions
Sec. 26. (a) If the department determines that a branch maintained
by an out-of-state state bank in Indiana is being operated:
(1) in violation of any provision of Indiana law relating to
activities of a bank; or
(2) in an unsafe and unsound manner;
the department may take all enforcement actions it would be
empowered to take if the branch were an Indiana state bank,
including but not limited to enforcement actions under IC 28-11-4.
(b) The department shall:
(1) promptly give notice to the home state regulator of each
enforcement action taken under this section against an
out-of-state state bank; and
(2) to the extent practicable, consult and cooperate with the
home state regulator in pursuing and resolving the enforcement
action.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-27
Rules
Sec. 27. The department may adopt policies or adopt rules under
IC 4-22-2 it determines necessary or appropriate to implement this
chapter.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-28
Notice of actions causing a change of control
Sec. 28. Each out-of-state state bank that has established and
maintains a branch in Indiana pursuant to this chapter, or the home
state regulator of the bank, shall give at least thirty (30) days prior
written notice, or shorter notice as is consistent with applicable state
or federal law, to the department of any merger, consolidation, or
other transaction that would cause a change of control with respect
to the bank or any bank holding company that controls the bank, with
the result that an application would be required to be filed pursuant
to the federal Change in Bank Control Act of 1978, as amended (12
U.S.C. 1817(j)) or the federal Bank Holding Company Act of 1956,
as amended (12 U.S.C. 1841 et seq.) or any successor statutes to
those statutes.
As added by P.L.171-1996, SEC.37.
IC 28-2-18-29
Repealed
(Repealed by P.L.89-2011, SEC.78.)
IC 28-2-18-30
Severability
Sec. 30. (a) After May 30, 1997, the provisions of this chapter are
severable in the manner provided in IC 1-1-1-8(b).
(b) If, after May 30, 1997:
(1) any provision of this chapter; or
(2) the application of a provision of this chapter;
is found by any court in the United States with jurisdiction to be
invalid as to any bank, bank holding company, foreign bank, or
another person or circumstances, or to be superseded by federal law,
the remaining provisions of this chapter shall not be affected and
shall continue to apply to any bank, bank holding company, foreign
bank, or other person or circumstance.
As added by P.L.171-1996, SEC.37.
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