2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 6.1. SAVINGS BANKS CHAPTER 8. INVESTMENT AND LOAN POWERS OF SAVINGS BANKS
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IC 28-6.1-8
Chapter 8. Investment and Loan Powers of Savings Banks
IC 28-6.1-8-1
Application of article
Sec. 1. A savings bank may invest the money in the savings bank
only as provided in this article.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-2
Making, arranging, purchasing, and selling real estate loans and
extensions of credit
Sec. 2. A savings bank may make, arrange, purchase, or sell loans
or extensions of credit secured by liens on interests in real estate as
provided in IC 28-1-13-7.1.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-3
Making FHA loans, advances of credit, and purchases of
obligations
Sec. 3. (a) Subject to rules of the department, a savings bank may
do the following:
(1) Make loans and advances of credit and purchases of
obligations representing loans and advances of credit eligible
for insurance by the federal housing administrator, and to obtain
such insurance.
(2) Make loans secured by mortgages on real property or
leasehold, as the federal housing administrator insures or makes
a commitment to insure, and to obtain such insurance.
(3) To purchase, invest in, and dispose of notes or bonds
secured by mortgage or trust deed insured by the federal
housing administrator or debentures issued by the federal
housing administrator, or bonds or other securities issued by
national mortgage associations.
(b) An Indiana law:
(1) prescribing the nature, amount, or form of security;
(2) requiring security upon which loans or advances of credit
may be made;
(3) prescribing or limiting interest rates upon loans, advances,
or credit; or
(4) prescribing or limiting the period for which loans, advances,
or credit may be made;
does not apply to loans, advances of credit, or purchases made under
subsection (a).
(c) A rule adopted by the department under this section may apply
to one (1) or more savings banks and to one (1) or more localities in
Indiana as the department determines.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-4
Lending deposited money
Sec. 4. (a) A savings bank may do the following:
(1) Lend the money deposited in the savings bank upon:
(A) individual credit;
(B) the security of comakers or personal endorsement;
(C) the mortgage or pledge of personal property, either
tangible or intangible; or
(D) the pledge of choses in action.
(2) Discount, purchase, or otherwise acquire retail installment
sales contracts, notes, bills of exchange, or acceptance or other
choses in action.
(b) The savings bank may contract for and receive on loans and
discounts described in this subsection the highest rate of interest
allowed by Indiana law to be contracted for and received by
individuals.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-5
Investing in real estate
Sec. 5. A savings bank may invest in real estate subject to
IC 28-6.1-7-12.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-6
Investing in dealings in exchange
Sec. 6. (a) Subject to subsection (b), a savings bank may invest in
dealing in exchange by purchasing and selling sight or time drafts
and acceptances payable out of Indiana.
(b) A draft or an acceptance may not:
(1) exceed ten thousand dollars ($10,000); or
(2) have to exceed one hundred twenty (120) days to run from
the time of its purchase.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-7
Becoming Federal Reserve System member and exercising
conferred powers
Sec. 7. A savings bank may do any of the following to become a
member of the Federal Reserve System and exercise all powers, not
in conflict with Indiana law, conferred on a member of the Federal
Reserve Act:
(1) Purchase and hold, for the purpose of becoming a member
of the Federal Reserve System, so much of the capital stock of
a federal reserve bank to qualify the savings bank for
membership under the Federal Reserve Act (12 U.S.C. 221 et
seq.).
(2) Do any of the following regarding federal deposit insurance:
(A) Make a deposit with the Federal Deposit Insurance
Corporation to qualify the savings bank for membership in
any fund for insurance of deposits provided by 12 U.S.C.
1811 through 1833e.
(B) Purchase and hold the amount of the capital stock of the
Federal Deposit Insurance Corporation that will qualify the
savings bank for membership in a fund described in clause
(A).
(C) Exercise all powers, not in conflict with Indiana law,
conferred upon members of a fund described in clause (A)
or stockholders of the Federal Deposit Insurance
Corporation.
(D) Anything necessary or appropriate to acquire and
maintain insurance of the savings bank's deposits in
accordance with federal law.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-8
Exercising powers relating to federal home loan banks and
corporations
Sec. 8. Subject to any limitations imposed by the department
through policy, a savings bank may do any of the following:
(1) Invest the money deposited in the savings bank in the shares
of the capital stock, bonds, debentures, notes, or other
obligations of a federal home loan bank of the United States.
(2) Become a member of the federal home loan bank of this or
an adjoining district.
(3) Borrow money from:
(A) a bank described in subdivision (2);
(B) the Federal Deposit Insurance Corporation; or
(C) any other corporation.
(4) Transfer, assign to, and pledge with a bank described in
subdivision (2), the Federal Deposit Insurance Corporation, or
other corporation, any of the bonds, notes, contracts, mortgages,
securities, or other property of the savings bank held or
acquired, as security for the payment of loans entered into under
subdivision (3).
(5) Exercise all rights, powers, and privileges conferred upon,
and to do all things and perform all acts required of, members
or shareholders of a federal home loan bank by the Federal
Home Loan Bank Act (12 U.S.C. 1421 through 1449).
As added by P.L.42-1993, SEC.72. Amended by P.L.258-2003,
SEC.8.
IC 28-6.1-8-9
Investing in and selling shares of open-end investment companies
Sec. 9. A savings bank may invest the money deposited in the
savings bank in and sell shares of open-end investment companies,
the portfolios of which consist solely of securities eligible for
purchase and sale by national banking associations, on terms and
conditions prescribed by federal law or regulation for national
banking associations.
As added by P.L.42-1993, SEC.72.
IC 28-6.1-8-10
Depositing funds; permissible institutions and accounts
Sec. 10. A savings bank may deposit its funds in:
(1) a federally chartered savings association; or
(2) a savings association or other entity organized and operated
according to federal law or the laws of a state or the District of
Columbia;
the accounts of which are insured by the Federal Deposit Insurance
Corporation.
As added by P.L.42-1993, SEC.72. Amended by P.L.79-1998,
SEC.72; P.L.89-2011, SEC.45.
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